City Council Minutes 04-28-2003MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
April 28, 2003 - 7 p.m.
Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce
Thielen.
Members Absent: None
1. Call to Order and Pledge of Allegiance.
Mayor Thielen called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of
Allegiance was said.
2A. Approve minutes of April 14, 2003 regular Council meeting.
BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE APRIL 14, 2003
REGULAR COUNCIL MEETING AS PRESENTED. ROGER CARLSON SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY.
2B. Approve minutes of April 22, 2003 Board of Review.
ROBBIE SMITH MOVED TO APPROVE THE MINUTES OF THE APRIL 22, 2003 BOARD
OF REVIEW. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
3. Consideration of adding items to the agenda.
Jeff O'Neill requested that an update on the Ruff Auto site clean-up grant be added to the agenda.
Rick Wolfsteller added, at the request of the City Attorney, a resolution covering the land exchange
between Wells Fargo and the City for the library site (former Marquette Bank building). Bruce
Thielen stated that from the joint meeting of local government entities there is a desire to set upa
meeting time for discussion of annexation issues. Brian Stumpf asked that a discussion on traffic
and signage be added to the agenda. 011ie Koropchak added to the agenda an amendment to the
loan agreement between the HRA, and City of Monticello relating to the payment schedule for TIF
District # 1-23 .
4. Citizen comments/petitions, request and complaints.
Mayor Thielen explained the purpose of the citizens comment portion of the agenda. There was no
citizen comment.
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5. Consent Agenda
A. Consideration of approving the appointment of Cindy Anderson for the vacancy on the
Design Advisory Team. Recommendation: Appoint Cindy Anderson to a two year term
on the Design Advisory Team.
B. Removed from the agenda.
C. Consideration of resolution requesting conveyance of tax forfeited.lands to the City.
Recommendation: Adopt a resolution requesting conveyance to the City of parcels
155-010-001010, 155-064-003050, 155-064-003060, 155-064-003070 and
155-064-003080. Resolution # 2003-24.
D. Consideration of -granting a license to use public sidewalk for outdoor restaurant seating for
Crostim's Grille. Recommendation: Approve the issuance of a license to allow Crostini's
Grille to utilize a portion of the sidewalk along Locust Street for food service and liquor
sales contingent upon: A) A fenced or roped off area to separate the tables from the
remaining sidewalk; B) The City of Monticello being named as an additional insured on the
liquor liability policy from Crostini's.
E. Consideration of Change Order No. 20 for TH 25, Project No. 96-04C.
Recommendation: Approve Change Order No. 20 to TH 25, Project No. 96-04C.
F. Consideration of approving sale of property for Home Depot Project. Recommendation:
Approve the sale of the five acre parcel owned by the City at the intersection of Cedar
Street and Dundas Road to Birchland Development/Home Depot under the terms and
condition noted in the purchase agreement.
Glen Posusta requested that'item #5C be removed from the consent agenda.
ROGER CARLSON MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEM 45C AND THE ADDITION OF ITEM #5G, RESOLUTION ON
LIBRARY LAND EXCHANGE AND ITEM #5H, AMENDMENT TO LOAN AGREEMENT
BETWEEN THE HRA AND CITY OF MONTICELLO RELATIVE TO THE PAYMENT
SCHEDULE FOR TIF DISTRICT #1-23. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
6. Consideration of items removed from the consent agenda for discussion.
Item #5C related to the acquisition by the city of certain tax forfeited lands. Glen Posusta asked
why the city was acquiring the land rather than allowing the public to bid on it and getting it back on
the tax rolls. City Administrator, Rick Wolfsteller, explained that one of the parcels land is a sliver
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of land by 7"' Street which lies within the city right-of-way. The other four parcels are residential
lots which have special assessments against them for street and utility improvements. It was felt that
the land would not be sold for an amount that would equal the amount of special assessments against
the property. The City felt they could recover more of the special assessments if the City acquired
the land and sold it. Glen Posusta questioned if there were costs involved in the acquisition of the
property. Rick Wolfsteller replied that there would be approximately $300-$400 in administrative
cost to acquire the parcels.
ROBBIE SMITH MOVED TO ADOPT A RESOLUTION REQUESTING CONVEYANCE
TO THE CITY OF PARCELS 155-010-001010, 155-064-0035050, 155-064-003060,
155-064-003070 and 155-064-003080. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY. Resolution No. 2003-25.
7. Public Hearing and consideration of certifying delinquent utility accounts to Wright County,
City Administrator, Rick Wolfsteller, explained the procedure followed for those properties whose
delinquent utility bills were being certified to the county for collection. Mayor Thielen opened the
public hearing. There was no present who spoke for or against the proposed assessment. Mayor
Thielen then closed the public hearing.
BRIAN STUMPF MOVED TO ADOPT THE RESOLUTION CERTIFY THE DELINQUENT
UTILITY ACCOUNTS TO THE COUNTY FOR COLLECTION WITH THE TAXES.
ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Resolution #2003-22.
8. Public Hearing and consideration of certifyin dg elinduent accounts receivable to Wright
Counjy.
City Administrator, Rick Wolfsteller, provided background information on this item noting the City
has authority to certify accounts receivable when they have been delinquent for a period of time.
The delinquent accounts receivable relates to various consulting and engineering fees that were
incurred as a result of the development of the Monticello Travel Center. Dan Mielke one of the
developers of the Monticello Travel Center has met with the Mayor, City Administrator and City
Engineer regarding the fees. Rick Wolfsteller noted that the conditional use permit process requires
the applicant to reimburse the City for fees related to the development. The fees the City incurred
on this development for legal, engineering and planning amounted to approximately $16,000. The
City did give credit for the first review of the development which reduced the fees from $16,000 to
$11,953. In addition to the unpaid fees there is also penalty and interest due.
Mayor Thielen opened the public hearing and cautioned those involved to keep the item moving in a
timely fashion and keep the discussion just to the particular agenda item.
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Dan Mielke and Lee Mielke representing Monticello Travel Center were present and spoke to the
!' Council regarding the delinquent fees. Mr. Mielke stated that the bill was received two years after
the fact and there was no explanation in the bill as to what it was for nor was there any detail on the
work done. Mr. Mielke stated he believes these charges were already paid as part of the Cedar
Street assessment and the pending assessment for utility relocation and did not feel he should be
paying for these twice. Since there was no detail with the bill there was no way for Mr. Mielke to
know what they were paying for.
Dan Mielke then presented a history on the Monticello Travel Center development. Their initial
request was for site plan approval and vacation of 16 feet of Cedar Street. Since Cedar Street was
the old right-of-way of TH 25, the City did not need the entire right-of-way. In November of 2000,
the Planning Commission and City Council approved the site plan and vacation of 10' of right-of-
way. Before acting on the vacation the City noted that Cedar Street was going to be upgraded.
The feasibility report showed that 10' of the right-of-way could be given up. Mr. Mielke stated
that the final site plan approved in April, 2001 was not changed from the preliminary site plan that
was approved except for moving of some parking. Mr. Mielke stated they were assessed $94,000
for the Cedar Street improvements which is almost $27,000 more than the motel which has more
frontage.
City Engineer, Bret Weiss stated that the Mielke property assessment was higher because of the
curb cut and turn lanes.
Dan Mielke reviewed the a letter from the City dated 7/29/03 stating that not all the bills were for
site plan review and some may be associated with public or private improvements for Cedar Street
or the utility relocation project. Mr. Mielke pointed out an engineering bill which showed as many
as six engineers charging time to the project. He questioned whether a simple site plan approval
would require the review of six engineers. Mr. Mielke stated on 1/13/02 he received a letter from
the City which stated that the engineering bills were not associated with any Cedar Street or utility
relocation work. He was upset that there was a change in what he was told from one time to the
next. Mr. Mielke met with Mayor Thielen and City Administrator, Rick Wolfsteller, to discuss the
bills. They reviewed the December engineering bills and the City offered to reduce that bill by
$2,500 but there was no discussion of the other bills. He noted in a later letter from the City there
was an offer to reduce the amount but there was no discussion on any of the other bills. Mr. Mielke
also stated that any cost for the Monticello Travel Center plat should be split over five parcels
instead of four as was proposed by the City.
After lengthy explanation of the matter, Dan Mielke made the following points: 1) The length of time
between when the work was done and when he actually was billed: 2) The lack of detail in the bills;
3) The division of the proposed delinquent accounts receivable over four parcels instead of five; 4)
Lack of detailed discussion on all the bills; 5)The lack of a timely response to his questions and 6)
He is paying for the same work twice as he believes that the work covered in the invoices were for
the street and utility projects which he is paying for in assessments.
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issues that sidetrack away from the question of whether Mr. Mielke owes the bill and for that reason
discussion could go on indefinitely. Glen Posusta stated that getting a bill two years after the fact
would be a surprise. Brian Stumpf countered that since Mr. Mielke knew he had to reimburse the
City for consulting fees there should be no surprise that he got a bill. Dan Mielke stated when he
said he had no problem with the bill it was only the December bill since that was the only one that
was discussed. Glen Posusta asked if the City Attorney was consulted on this. Rick Wolfsteller
replied that the City Attorney is aware of the City's policy to bill developers for consulting fees.
Brian Stumpf questioned whether there were appeal options open to the developer. Rick
Wolfsteller indicated while there is not an appeals process, the developer could pursue legal action.
Glen Posusta suggested a compromise bill of $6,000 be offered. Brian Stumpf asked if the bill
amount was reduced who would be picking up the difference. Rick Wolfsteller stated the
taxpayers would be picking it up as it would be coming out of general taxes. There was additional
discussion on whether there should be continued efforts to negotiate a settlement. Bruce Thielen
stated that there has been a good faith effort on the City's part to resolve the issue but the developer
has not accepted any offers made by the city. The project took a lot of staff time for review
because of the many changes. Since there was no response to the City's previous offers, the
Mayor felt those offers were now off the table. The question is who should be paying this bill, the
developer or the taxpayer. Dan Mielke stated that he believed the work he was being charged for
was actually done but he also believed he was paying for it in the Cedar Street assessment and the
pending assessment for the utility relocation work. He reiterated that there was no explanation of
the bills and no detail so that he could be determine what the bills covered.
BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR DELINQUENT
ACCOUNTS RECEIVABLE AS PRESENTED. ROBBIE SMITH SECONDED THE
MOTION.
Glen Posusta felt there should be continued negotiation to reach a settlement and was concerned
that assessing the cost would not necessarily eliminate the issue. Roger Carlson stated that while he
agreed with Brian Stumpf that the developer knew these fees were due, he felt the City should
extend their last offer of $8,000 as a compromise settlement. Robbie Smith stated that while he
was not opposed to a settlement, he was concerned about charges made that the work was being
billed twice. He noted an offer was made to the developer and he chose not to accept it. Mayor
Thielen asked if Robbie Smith wanted to withdraw his second to the motion. Robbie Smith said no.
UPON VOTE BEING TAKEN, SMITH, STUMPF AND THIELEN VOTED IN FAVOR
THEREOF AND CARLSON AND POSUSTA VOTED IN OPPOSITION. MOTION
CARRIED.
The Council took a short recess at this time. The meeting was reconvened at 8:35.
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9. Removed from the Agenda
10. Receipt of bids for construction of Well #5 at the 4' Street Park and consideration of
award of contract to proceed with construction.
Public Works Director, John Simola presented information on the bids for Well #5. Five bids were
received with Mark Traut Wells, Inc. submitting the low bid of $48,615.00.
BRIAN STUMPF MOVED TO ACCEPT THE LOW BID OF $48,615.00 FROM MARK
TRAUT WELLS, INC. FOR WELL #5 AND TO AUTHORIZE PROCEEDING WITH THE
DESIGN OF THE PUMPHOUSE. ROBBIE SMITH SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY.
11. Consideration of accepting bids and awarding contract for Cedar Street Improvement
Project No. 2002-06C.
City Engineer, Bret Weiss, updated the Council on the bid results for the Cedar Street Improvement
Project. He noted twelve bids were received with R.L. Larson submitting the low bid of
$698,855.69, which was lower than the engineer's estimate. He also added that there is a small
portion of right-of-way needed for this project which has not yet been acquired. There is an
addendum out that this portion of the project could be deleted if the right-of-way is not obtained
from John Lundsten.
ROBBIE SMITH MOVED TO AWARD THE BIDS FOR THE CEDAR STREET
IMPROVEMENT PROJECT NO. 2002-06C TO R.L. LARSON IN THE AMOUNT OF
$698,855.69. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
12. Consideration of navment of bills for Anril.
ROGER CARLSON MOVED TO APPROVE PAYMENT OF BILLS FOR APRIL. ROBBIE
SMITH SECONDED THE MOTION CARRIED UNANIMOUSLY.
Addod Ttemc-
Ruff Auto Site - Jeff O'Neill provided information on the item which would require the Council to adopt a
resolution committing local match and authorize the City to sign on the Clean Up Grant Application for the
Ruff Auto site. Previously the City had authorized a study of the site to determine the level of clean up
needed. It is estimated that there is $350,000 in costs to clean up the site. The City would be committing
to 12.5% of the clean up cost or approximately $43,000. The next step is to acquire funds to clean up the
site. It is proposed that grant funds and private sources would be used to fund the clean up of the site. The
( grant application needs to be submitted for the next grant cycle. Jeff O' Neill stated that normally they
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-- would like to see complete information about the development with the grant application but the time
constraints would not allow it in this case. Staff was requesting approval with certain contingencies. Jeff
O'Neill reviewed the contingencies to be included. It was noted that the developer is aware that the
development would have to go before the Planning Commission and there is no guarantee of City approval
on the density and type of development. He also noted that the estimated City's share of $43,000 would
be covered by up front funds from the developer and procedures relating to the grant application and
funding would be subject to review by the City Attorney.
a
Glen Posusta asked what specifically needed to be cleaned up and/or removed. Eric Hanson from the
engineering firm who prepared the remediation plan, indicated that there was contamination of varying levels
from lead and petroleum products. Some areas had greater concentration than others. Bruce Thielen stated
that there is a residential development adjacent to the site which contains units in the price range of
$180,000 which is the figure used in the proposal. There was a discussion on affordable housing and
whether the City felt they had sufficient units of affordable housing.
ROBBIE SMITH MOVED TO APPROVE ADOPT THE RESOLUTION COMMITTING LOCAL
MATCH AND AUTHORIZING SIGNATURE ON A CLEAN-UP GRANT APPLICATION FOR
THE RUFF AUTO SITE CONTINGENT ON THE FOLLOWING:
• The application must include a provision stating that the minimum base sale price of individual housing units including land
must exceed $180.000 per unit after adjusting for inflation of real estate values since January, 2003.
• The City matching fiends must be funded via contributions b% the land owner or prospective developer. The application
nay be submitted on opinion of the City Attorney that a method exists for Developer coverage of City match.
• The application shall not include a component supporting affordable housing with the Ruff Auto redevelopment project but
may reference availability of affordable housing in the community at large.
• The Developer/Owner understands that approval of the application does not commit the City to approve a future project. It
does not represent an approval of any concept or development stage residential planned unit development. The project is
subject to the residential development process which includes a public hearing process, etc. Final project density and design
will hinge on this process.
GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Traffic/Signage: Brian Stumpf noted that with the work starting on Broadway, people were making left
turns where they weren't suppose to be. He asked if the left turn arrow on the signal on Broadway could be
adjusted. Presently the light is covered but the sign still says "Left Turn". He is wondering if the sign could
be covered or removed. Although there are "No Left Turn" signs prior to this one, they are located at
ground level where this one is actually located by the lights. Bruce Thielen suggested that the timing of the
light at River Street be looked at and adjusted.
Brian Stumpf also noted that in the CSAH 75 project area there is a mix of old street signs and new street
signs and he suggested that new signs be installed throughout the area. John Simola stated that the
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replacement of the signs could be done out of their maintenance budget but he didn't know about funding
the actual cost of the signs themselves.
BRIAN STUMPF MOVED TO REQUEST THAT NO LEFT TURN SIGNS BE PLACED ON BOTH
EAST AND WEST BROADWAY AND TO CONTACT MNDOT ABOUT RETIMING THE LIGHT
ON RIVER STREET AND AUTHORIZE PUBLIC WORKS TO GET A PRICE ON STREETS SIGNS
FOR REPLACEMENT IN THE OLD PART OF TOWN WITH REPLACEMENT POSSIBLY BEING
DONE AS PART OF THE CORE STREET RECONSTRUCTION PROJECT. ROGER CARLSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Annexation: Bruce Thielen stated at the meeting of local governments held on Saturday, April 26"'
annexation issues were discussed. It was recommended that the Council suggest certain dates to meet with
township representatives to discuss annexation concerns. The Council felt a workshop session running from
5:00 to 6:30 prior to one of the regularly scheduled Council meetings might be the best time. Bruce Thielen,
Brian Stumpf and city staff will work on agenda for the workshop meeting. The City Administrator will
contact the township with possible workshop dates.
Bruce Thielen indicated there is legislation being considered that would impact annexation. Since the City
has received a number of annexation petitions it was questioned whether the annexation process should be
initiated for these properties. Jeff O'Neill stated that previously the Council criteria was that there was some
development plan approval prior to proceeding with the annexation but not all of the petitions the City has
received currently meet that requirement. Glen Posusta asked how the legislation would impact the
annexation process. He was told there would be limits on the 60 acre requirement and often you could
increment the 60 acres.
ROBBIE SMITH MOVED THAT THE CITY STAFF INITIATE THE ANNEXATION BY
ORDINANCE PROCEEDINGS FOR THOSE PROPERTIES WHO HAVE SUBMITTED
ANNEXATION PETITIONS TO THE CITY. BRIAN STUMPF SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
John Simola stated that the Council does need to evaluate the feasibility of serving these properties with
utilities.
13. Adjourn.
GLEN POSUSTA MOVED TO ADJOURN AT 9:00 P.M. ROGER CARLSON SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY.
Recording Secretary
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