City Council Minutes 10-24-1983MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
October 24, 1983 - 7:30 P.M.
Members Present: Arve Grimsmo, Fran Fair, Dan Blonigen,
Ken Maus, and Jack Maxwell.
Members Absent: None.
1. Call to Order.
2. Approval of the Minutes.
Motion was made by Maxwell, seconded by Blonigen, and unanimously
carried to approve the minutes of the regular meeting held
October 11, 1983.
3. Citizens Comments/Petitions, Requests and Complaints.
Marilyn Lanz, owner of the property located on Lots 9, 10, 11,
and 12, Block 1, Lower Monticello, requested a Variance to allow
for the placement of an additional driveway on the property to
serve the second house located on the east portion of these lots.
Mrs. Lanz noted that in approximately 1970, a small home was
built next to their original home for their father. The property
is now being separated and Mrs. Lanz requested permission to install
an additional driveway for the smaller home off of Broadway.
Because the second home is already existing, motion was made by
Maxwell, seconded by Blonigen, and unanimously carried to approve
the following Variances for the new driveway:
1. Variance to allow the driveway to be closer than
40 feet of the adjacent driveway.
2. To allow a driveway opening in excess of 24 feet
wide.
3. To waive the distance requirement between existing
driveways.
Mr. Joseph LaFromboise of Construction 5, Inc., requested that
the Council reconsider the valuation that the City Council placed
on vacated Hennepin Street between Lauring Lane and the railroad
tracks. The Council recently vacated this portion of Hennepin
Street and offered the property to Mr. LaFromboise at an appraised value
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of 90� a square foot, or $24,000.00. Mr. LaFromboise indicated
that he only paid approximately 12� a square foot for his property
in the area and felt that the appraised value established by the
City was too high. He indicated that at the asking price of 90�
a square foot, he might be forced into reducing the size of his
apartment complex and not pursue purchasing the vacated street
for his development. Mr. LaFromboise indicated he would be
willing to pay 25� a square foot, or $6,600.00 for the vacated
Hennepin Street.
The Council discussed whether the City should consider just
trading vacated Hennepin Street for the right of way that will
be needed in the future for the new Lauring Lane road extension
rather than selling the property outright. Council also discussed
the possibility of entering into an agreement with Mr. LaFromboise
acknowledging that he would also be willing to sell back to the
City the necessary right of way at the same price for which the City
sells vacated Hennepin Street.
After further discussion on the appraised value, it was the consensus
of the Council that the City should obtain another appraisal on the
vacated Hennepin Street for review at the next Council meeting.
The Council also invited Mr. LaFromboise to get his own appraisal
if he wanted to on the Hennepin Street property for comparison.
4. Consideration of Sideyard Variance Request - Applicant, Robert and
Mary Saxon.
Approximately two months ago, Robert and Mary Saxon requested a
sideyard variance to allow for the construction of a double garage
on their property located just east of East Bridge Park along
River Street. Since their initial variance request, the Council
has been discussing the possibility of acquiring the Saxon's
property to be used for a public purpose such as expansion of the
East Bridge Park or for public parking purposes, which could be
used for the park area and/or Senior Citizen's Center. This possible
acquisition resulted from the proposed new bridge alignment which
would require the State of Minnesota to use some of the existing
East Bridge Park property.
The majority of the Council members expressed interest in negotiating
with the Saxons to acquire their property. As part of the negotiations,
additional information would be obtained regarding the total cost
involved should the City decide to make the property into additional
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park land or parking area. Some funds to help with the purchase
of the property would be received from the State of Minnesota for
part of the East Bridge Park that would be needed for the new
bridge, and also the possibility exists that the Senior Citizen's
Center could apply for McKnight Foundation Grant Funds to be used
for parking lot improvements.
The Council directed the City Administrator to obtain an appraisal
on the property and to start negotiations with Mr. and Mrs. Saxon
to see if an agreement can be reached between both parties for the
acquisition. Because the acquisition of the property is being
pursued by the City, no action was taken on the Variance Request
for the additional garage structure.
5. Consideration of Reconstruction of T.H. 25 and Bridge - Minnesota
Department of Transportation.
At the previous Council meeting, a motion was passed to inform the
State of Minnesota that the City of Monticello would like to see
at least one more alternate proposal wherein the raised channelization
for the Highway 25 improvements would be omitted from the construction
plan.
This resolution was submitted to MN/DOT who has conducted preliminary
discussions within their district and with the St. Paul office but
at the present time have not reached any consensus on what the next
step should be in regard to the Highway 25 improvement project.
MN/DOT requested that they be allowed a few additional weeks to review
the situation to present their alternate proposal, if any, in regard
to the improvements. As a result, no action was necessary by the
Council regarding the proposed Highway 25 improvements at this time.
6. Public Hearing - Assembly of God Church - Conditional Use Request.
The Monticello Assembly of God Church received a Conditional Use
Permit at the October 11, 1983, Council meeting to allow them to
establish a day care center at their former church facilities on
Fourth Street, provided they met all State requirements.
At the time the Conditional Use Permit was granted, the City staff
was under the assumption that Notices of a Public Hearing for this
Conditional Use Permit had been mailed to all of the abutting property
owners and published according to regulations. But in looking through
the records, no Affidavit of Public Hearing Notice to the affected
property owners could be found; and, therefore, a new public hearing
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was scheduled for October 24 before the Council.
Alice Klatt inquired as to what rules the Assembly of God Church
would be required to meet in order to obtain State approval for
a day care center regarding fencing of their property. Mrs. Klatt
was informed that except for the playground area designated for the
day care center, the balance of the property would not necessarily
have to be entirely fenced. Mrs. Leo Nelson also inquired as to
whether the property should be fenced to stop children from wandering
onto the public streets. Mrs. Duane Rajanen also expressed concerns
about possible dust problems from their parking lot with everyday
use since the property is not currently black topped.
Pastor Nordby, representing the Assembly of God Church, indicated
that they would be meeting all State requirements including fencing
of any areas required by the State of Minnesota to get the Conditional
Use Permit.
It was the opinion of the Council that the City Council and the
Assembly of God Church view this Conditional Use Permit for a day
care center as a temporary use of the property until the property
can be sold; and as a result, motion was made by Fair, seconded by
Blonigen, and unanimously carried to let their previous motion of
October 11 stand as initially approved authorizing the Conditional
Use Permit for the day care center on a temporary one-year basis.
7. Public Hearing - Fulfillment Systems, Inc. - Proposal to Issue
Tax Exempt Mortgage.
On August 31, 1983, the City submitted to the Department of Housing
and Urban Development an application for UDAG Grant Funds. This
Grant Application request in the amount of $234,000.00 would be used
to help Fulfillment Systems, Inc., finance a new building structure
within the City of Monticello. The proposal that has been submitted
to HUD is basically as follows: UDAG Funding, $234,000.00; Tax
Exempt Mortgage, $475,000.00; Private Equity by Fulfillment Systems,
$135,000.00.
Should the UDAG Funds be available to the City for lending to
Fulfillment Systems, the City would have to conduct a public hearing
to allow Fulfillment Systems to issue the Tax Exempt Mortgage in the
amount of $475,000.00. The Tax Exempt Mortgage allows Fulfillment
Systems to obtain this financing at a lower interest rate through
a bank or other institution because the mortgage would be tax exempt.
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In light of the favorable comments the City has received from the
Department of Housing and Urban Development, motion was made by
Fair, seconded by Maxwell, and unanimously carried to adopt the
resolution establishing November 14 as the date for the public
hearing on the proposed Tax Exempt Mortgage Bonds issuance to
Fulfillment Systems, Inc. See Resolution 1983 #84.
8. Review of Bids for Pump House #2 Addition.
Construction bids and electrical work bids for an addition to
Pump House #2 were received and opened on Monday, October 24,
1983. Only one bid was received on the proposed construction
from Jay Miller in the amount of $15,609.00. Three bids were
received on the electrical work, the lowest of which was Page
Electric for $610.00.
The total cost of the project as bid would be $16,219.00, which
is approximately 620 over the original estimate prepared by
John Simola, Public Works Director, of $10,000.00. Because of
the cost overrun, it was recommended by the Public Works Director
that all bids be rejected at this time and that the City consider
rebidding the project in the spring of 1984.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to reject all bids received for the Pump House #2 Addition
and to consider rebidding the project next spring.
9. Consideration of a Deferrment of Special Assessments for Monticello
Country Club.
As part of the budget public hearings for 1984, the Monticello
Country Club requested consideration of Revenue Sharing Funds
from the City to help pay for some of their 1978 sewer and water
assessments against the Country Club's property. Although the
Revenue Sharing monies were not granted to the Country Club, the
Council was receptive to discussing a possible deferrment of the
assessments so that development could occur on a portion of the
Country Club's property.
The City staff on October 18 met with representatives of the Country
Club Board to discuss a solution to the Country Club's delinquent
assessments. An agreement between the City staff and Board members
was arrived upon as the following: 1) The City and the Country
Club would negotiate and enter into a private contract agreement,
said contract to be in the sum of $72,637.71 consisting of the
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original assessment principal plus interest and penalties to date.
2) Upon entering into a contract, the City would lift from the
County Tax Roll the entire amount of the assessment that had been
certified at the original date. 3) Within the contract, the total
amount would be broken down into ten equal values, which would be
assigned to the proposed ten platted lots. 4) Each new assessment
amount would be placed against the property without additional
interest for a period not to exceed five years. But upon completion
and development of the subdivision, as each lot is sold the amount
of the assessment for that particular lot would be paid in full.
This agreement between the City and the Country Club would allow
the Country Club to proceed with the platting of ten residential
lots along Country Road 39. Upon approval of a subdivision, the
City normally requires a park dedication equal to 100 of the
land being platted; but because of the nature of the existing property,
a golf course, it was the consensus of the Council that the park
dedication requirement would be waived for this subdivision. It
was felt that an adequate amount of park land is currently owned
by the City in the area and that the golf course at the present time
does provide a recreational facility for the City residences.
Motion was made by Maus, seconded by Fair, and unanimously carried
to authorize the City to enter into an agreement with the Country
Club for the deferrment of special assessments and to authorize the
City Attorney to prepare final documents incorporating the preliminary
contract provisions as noted in Items 1-10 in Exhibit No. 1. See
Exhibit 10/24/83 No. 1.
10. Consideration of Authorizing the Preparation of an Ordinance
Allowing for On -Sale Wine Licenses - Floyd Kruse.
Mr. Floyd Kruse, developer of Dino's Deli on the corner of Broadway
and Walnut Street, has requested that the Council consider issuing
wine licenses. The State of Minnesota permits the issuance of wine
licenses to bona fide restaurants as defined in State Statutes.
It was noted that many options are available to the City regarding
wine licenses, which can be a combination license with 3.2 on -sale
beer or separately. Before wine licenses can be issued, an ordinance
has to be established allowing for the issuance of wine licenses
and a fee has to be established not to exceed 500 of the current
on -sale liquor license fee.
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After discussion, motion was made by Maxwell, seconded by Fair,
and unanimously carried to authorize the City staff to prepare
an ordinance that would allow the issuance of on -sale wine
licenses for a review at the next Council meeting. The ordinance
amendment would establish a combination license for 3.2 beer
and on -sale wine in addition to the present 3.2 on -sale beer
license.
11. Consideration of County Road 75 and 39 Upgrading.
Since 1979, the City of Monticello has been requesting that
Wright County upgrade County Road 75 and 39 through the City.
In 1982, Wright County Board indicated that improvements to
Broadway and County Road 39 might be possible in the spring of
1984.
The County Engineer, Mr. Wayne Fingalson, indicated that it would
be best to again formally request this project in the form of a
letter to the Wright County Board. The City would be basically
requesting upgrading of that portion of the highway which has
a center median from approximately Chestnut Street on the west
end of town to the high school on the east end of town. In
addition, it was the recommendation of the Public Works Director
that the City also request that some shoulder improvements
including paving of the shoulders be considered by the County
on the east end of town.
Motion was made by Maus, seconded by Blonigen, and unanimously
carried to authorize the Public Works Director to write a letter
to the Wright County Board of Commissioners requesting their
consideration of improving County Road 75 (Broadway) within the
City limits. The City share of any improvements would be
approximately 30% estimated at a total cost of $160,000.00 with
the City currently budgeting $60,000.00 as its share in 1984.
12. Consideration of Zoning Map Amendment - Blocks 32 and 17.
In light of the fact that the Oakwood Block has been sold to
Security Federal, the Planning Commission held a public hearing
on October 4 to consider rezoning this property from its current
R-2 Zoning for residential use to a B-4 commercial zone. At the
same time, the balance of the property on the library block abutting
Highway 25 was also proposed for rezoning to commercial B-4.
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Motion was made by Fair, seconded by Maxwell, and unanimously
carried to adopt a zoning ordinance map amendment rezoning
Blocks 32 and 17 from R-2 residential to B-4 commercial. (Ord. 1983 #127)
13. Consideration of Authorizing the Preparation of an Ordinance
Permitting Gambling and Providing Licenses Therefor.
State Statutes allow non-profit organizations, etc. to operate
gambling devices such as tip boards, pull -tabs, paddlewheels,
raffles, etc. Before an organization such as the American
Legion Club or the VFW Club can legally operate gambling devices,
the City must establish an ordinance permitting gambling and
the licensing of organizations.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to authorize the City staff to prepare an ordinance for
review that would allow gambling that meets State Statutes and
provide for licensing of establishments or types of gambling
devices. Once the ordinance is prepared, the Council will review
at a future meeting.
14. Department Head Reports.
The Council held a quarterly department head meeting with the
following individuals in attendance: Mike Melstad of the YMCA,
Buddy Gay of the Wright County Sheriff's Department, George
Liefert and Willard Farnick of the Monticello Fire Department,
along with the Public Works Director, Street Superintendent,
Building Inspector, and City Administrator.
In discussions with the Fire Department representatives, it was
the Council's consensus that the City staff should proceed with
billing individual car owners who require fire calls from the
Fire Department. Normally, individual car owners have car insurance
which may provide reimbursement for City charges.
Council also discussed with the Fire Department representatives
possible expansion plans for the current Fire Hall. It was suggested
by the Council that the Fire Department prepare a ten year plan
on what their needs might be so that the City could try to determine
what size of building the Fire Department might need in the future.
In addition, the Fire Chief was authorized to check with other
surrounding communities about the possible use or rental of a
"snorkel" truck for the Fire Department should the City ever need
one.
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Other department heads rediscussed with the Council current
project status' and other informational items to date.
15. Consideration of Setting the Annual Salary Meeting.
It was the consensus of the Council to hold a special meeting
on Saturday morning at 7:30, October 29, 1983, to review with
the City Administrator guidelines for establishing the 1984
salary ranges for salaried employees.
Consideration of Holding a Public Hearing on the Issuance of
Tax Increment Bonds - Metcalf and Larson Office Building.
A motion was made by Blonigen, seconded by Fair, and unanimously
carried to set November 14, 1983, as a date for the public hearing
on a proposal to issue General Obligation Tax Increment Bonds
in the amount of $32,000.00 for the Metcalf and Larson Office
Building Proposal. (See Resolution #1983 - 83).
16. Payment of Bills.
Motion was made by Maus, seconded by Maxwell, and unanimously
carried to approve the bills for the month of October as presented.
Rick Wolf stelle
Assistant Administrator
=M