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City Council Minutes 06-24-1985MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL June 24, 1985 - 7:30 P.M. Members Present: Arve A. Grimsmo, Fran Fair, Bill Fair, Jack Maxwell, Dan Blonigen. 1. Call to Order. 2. Approval of Minutes. Motion was made by Fran Fair, seconded by Blonigen, and unanimously carried to approve the minutes of the regular meeting held June 10, 1985. 4. Consideration of Bids and Awarding Contract for 1985 Sealcoating Project. The following bids were received on June 19 for the 1985 Sealcoating Project consisting of sealcoating approximately 52,277 sq. yds. The bids were broken down by the contractor doing the final sweeping or with the City doing the sweeping. Batzer Construction Company P.O. Box 1025 St. Cloud, MN 55301 Allied Blacktop Company 10503 89th Avenue North Maple Grove, MN 55369 Buffalo Bituminous Box 337 Buffalo, MN 55313 BID I Sq.Yd. $38,684.98 $.74 (City Sweeping) BID II Sq.Yd. $35,548.36 $.68 $31,052.53 $.594 $282177.30 $.539 $29,693.34 $.568 $27,929.00 $.5343 It was recommended by the Public Works Director that the low bid in the amount of $29,693.34 including sweeping be accepted from Buffalo Bituminous. Motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to award the 85-1 Sealcoating Project to Buffalo Bituminous in the amount of $29,693.34, which includes the contractor doing sweeping. 5. Consideration of City Participation in County Improvement of County Road 39; A Resolution Ordering the Preparation of a Feasibility Study and Setting a Public Hearing. A few months ago, the City Council discussed the upcoming County improvement of East County Road 39 planned for the year 1987 Council Minutes - 6/24/85 and what affect this improvement may have on the Curtis Hoglund property currently being developed into a convenience store/gas station. The County has indicated that they will be acquiring additional right of way along County Road 39 if the road is improved as a rural type construction as initially planned. This additional right of way requirement would require the Curtis Hoglund property to place their curb barrier around their parking lot further west than they would like. As a result, the Public Works Director has been discussing with the County Engineer the possibility of improving that portion of County Road 39 from County Road 75 to Mississippi Drive in an urban design with curb and gutter, etc. The County Engineer noted that if this type of design is implemented, very little right of way would be required from the Hoglunds and thus, their parking lot could be closer to the road. A petition was submitted by Curtis and Anna Mae Hoglund, along with two other property owners along the west side of County Road 39, indicating their desire to have an urban street constructed with curb and gutter. In discussions with the County Engineer, it was their estimation that a rural designed street with the curve being maintained as is would cost approximately $62,250.00 with no City funds needed. If an urban design was constructed with the present curve being intact resulting in a 30 mph speed zone, the estimated cost would be $90,675.00, with City participation in the cost estimated at $27,200.00. It was recommended by the County Engineer and the Public Works Director that the City consider redesigning the existing curve to allow for a 45 mph speed limit. If this would happen, a rural designed street was estimated to cost $67,050.00, including additional right of way and easements that would be necessary to redesign the curve. The City's share of this cost would still be zero using a rural design. If an urban design including curb and gutter with a 45 mph curve was constructed, the City's participation would rise to $34,750.0 out of a total project cost estimated at $98,225.00. The $34,750.0 cost does not include some additional storm sewer cost of $5,200.00 that would be necessary. Of this approximate $40,000.00 to the City for an urban designed street, it was estimated that the majority of this cost could be assessed to the benefitting property owners on both the east and west side of 39 up to Mississippi Drive, resulting in approximately a $22.00 per front foot cost. It was the general consensus of the Council that the City should consider developing this portion of 39 into an urban design with curb and gutter; and as a result, motion was made by Maxwell, seconded by Fran Fair, and unanimously carried to adopt a resolution ordering the preparation of a feasibility report on the improvement of County Road 39 and calling for a public hearing for said improvement. See Resolution 1985 #11. -2- Council Minutes - 6/24/85 6. Consideration of Ratification of Mayoral Appointment to HRA. Due to the recent resignation of HRA member, Vic Vokaty, the Mayor recommended that Mr. Ben Smith be appointed to fill this term until December 31, 1985. Motion was made by Fran Fair, seconded by Maxwell, and unanimously carried to ratify the Mayor's appointment of Mr. Ben Smith to fill the unexpired term of Vic Vokaty until December 31, 1985. 7. Consideration of a Conditional Use Request to Allow Major Auto Repair in a B-4 (Regional Business) Zone - Applicant, Jay Spitzengel. Mr. Jay Spitzengel requested a conditional use permit to allow for the operation of a major auto repair business in the former Monti Motors location in the rear of the old Monticello Ford building. The business would consist of an auto body repair shop operated by himself only. The Planning Commission, at their last meeting, recommended approval of the conditional use permit provided that the permit be granted for a period not to exceed one year; and at any time upon being given a written notice by the City, the applicant would have to vacate the premises within 60 days. In addition, no exterior storage of damaged automobiles or parts would be allowed, and all work would have to be done inside the building. Also, a flammable waste trap would have to be installed prior to the opening of the business and that the premises would be maintained in a similar manner operated by Monti Motors. Motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to approve the conditional use permit for an auto body shop in the rear of the old Monticello Ford building with the following conditions: 1. No exterior storage of damaged automobiles, automobile parts, etc., allowed. 2. The conditional use permit would be for a period not to exceed one year; and at any time upon written notice by the City, the applicant would vacate the premises within 60 days. 3. All repair work has to be done inside the building with the doors closed. 4. A flammable waste trap be installed prior to opening the business. 5. The entire area around the property to be maintained similar to previous operator's conditions. -3- Council Minutes - 6/24/85 8. Consideration of Utility Improvements for the River Road Plaza Project. Lots 5 and 6 of Block 1, MacArlund Plaza, are currently being developed by Curtis and Anna Mae Hoglund into what will be known as River Road Plaza consisting of a gas station/convenience store. In order to service this property with sewer and water, the Hoglunds needed to extend sewer and water and storm sewer from the townhouse area into their proposed development that would also in the future serve Lots 1-4 of MacArlund Plaza. Their contractor, Winkleman, Inc., estimated the sewer and water installation cost at approximately $4,000.00; but after the design was prepared by their engineers to meet the City's specifications, the low bid received for the construction came in at $23,000.00. The primary reason for the increase was due to the larger sewer and water mains that would be required to also serve the additional 4 lots in the future and also because of an extra 150 feet of water main recommended that would connect to a future water main on County Road 39 to provide looping of the water service. As a result of these increased costs, the Hoglunds petitioned to the City requesting that the improvements be installed by the City and placed as an assessment against their property. Initially, this sewer and water construction was considered a private sewer and water hook up on private property, which normally is not financed by the City. The Hoglunds have provided sewer and water easements over their property and wish to turn over the completed sewer and water lines to the City for City maintenance in the future and thus, requested that the property be assessed. It has been the general policy recently that the City no longer finance sewer and water improvements to private property. But Councilmember Maxwell felt that the City should consider this case because of the larger sewer and water lines required and also because of the extra length to connect to a future line on 39. As a result, Maxwell made a motion to have the City pay for the $23,000.00 cost and assess the property back to the property owners. This motion died for a lack of a second. The Council also discussed the option of the City financing the construction but requiring a written contract with the Hoglunds that would require at least half of the cost being paid up front with the balance payable over 3 years at a set interest rate. Anna Mae Hoglund noted that if half or more of the estimated $23,000.00 is required up front, this proposal would not benefit them. Mrs. Hoglund then requested that the additional cost of extending the water line for looping purposes be either picked up by the City or assessed, which was estimated at $2,800.00. Motion was made by Fran Fair, seconded by Blonigen, and unanimously carried to accept financial cost for the $2,800.00 extension of the water main for looping purposes and to assess the property -4- Council Minutes - 6/24/85 this amount only. Voting in favor: Arve Grimsmo, Fran Fair, Bill Fair, Dan Blonigen. Voting in opposition: Jack Maxwell. 9. Consideration of a Replat Concept Plan of Lots 36-47, Block 2, Ritze Manor; Calling for the Preparation of Plans and Specifications for Public Improvements in Kenneth Lane and Setting a Time for a Public Hearing to Consider the Vacation of Part of Kenneth Lane. Approximately 18 months ago, the City Council authorized the Public Works Director to discuss with Charlie Ritze the replatting of Block 2, Lots 36-47 in Ritze Manor that would provide for a through street from West River Street to County Road 75. A concept plan for this replatting has been prepared which will be brought to the Planning Commission in the near future. As part of this replat, Mr. Ritze presented a petition requesting sewer, water, street, and storm sewer improvements be constructed by the City and assessed to the property. Initial cost estimates prepared by Mr. Chuck Lepak of the City's engineering firm estimated that the assessments would average $14,630.00 per lot. Mr. Ritze felt that at this cost, the lots would not be saleable and indicated opposition to this large of an assessment. The storm sewer construction portion of the improvements of approximately $22,900.00 is for the realignment of the existing storm sewer which was already assessed to the property. The realignment of the storm sewer would be necessary because of the replatting suggested by the City. As a result, it was recommended that this portion of the cost be placed against general ad valorem taxes which would reduce the cost estimate down to $10,600.00 per lot. Even at this figure, Mr. Ritze did not feel that the lots could sustain this large of an assessment. If the City was willing to pick up that portion of the street improvements from the end of the plotted cul-de-sac to County Road 75, the assessments were estimated to be reduced to approximately $8,950.00. Mr. Ritze had not yet indicated whether this cost would be acceptable. Council members Maxwell and Blonigen felt that the City should not get involved in financing new utilities for more building lots when the City has a sufficient number already that are not sold and built upon. In addition, Mr. Maxwell felt that even an $8,000.00 to $9,000.00 assessment per lot might make the lots still unsaleable; and the City would be faced with not collecting the assessments on time. Councilmember Bill Fair felt that even with the City picking up the storm sewer realignment cost and the extra street work that would be necessary to create a through street, the cost would be relatively cheap for the City acquiring a much needed access point to County Road 75 between River Street. -5- Council Minutes - 6/24/85 As a result, motion was made by Fran Fair, seconded by Bill Fair, to adopt a resolution ordering the improvement of Kenneth Lane and ordering the preparation of plans and specifications for said improvement and setting a public hearing for the vacation of a portion of Kenneth Lane. The motion would be contingent upon acceptance by Mr. Ritze of the estimated $9,000.00 assessment figure for each lot. Voting in favor: Fran Fair, Bill Fair, Arve Grimsmo. Opposed: Dan Blonigen and Jack Maxwell. See Resolution 1985 #12. 10. Consideration of Maintenance Service Level on a Private Driveway. A few years ago, the City Council discussed the upkeep of Territorial Road with Mr. Bob Jameson, who owns Little Mountain Settlement at the end of the traveled portion of Territorial Road. Currently, the Public Works Department has been continuing to plow Territorial Road up to the Little Mountain Settlement but noted it's becoming more and more difficult to continue to maintain the road due to the growth of trees and vegetation in the area. As a result, the City has been only maintaining that portion of Territorial Road up to the northerly right of way of the railroad tracks; and the rest of the road is considered a private driveway. The increasing traffic demands on this road because of the Little Mountain Settlement has tended to require more maintenance of the road because of numerous potholes, the result of water running off the Jameson's property. The Public Works Director requested direction as to whether the City should continue to maintain that portion of Territorial Road between the railroad tracks and Washington Street and whether the City should continue to work on that area of the crossing on the south side of the railroad tracks. It was noted that if the road is considered a private driveway, it should become the responsibility of the property owner to maintain the entire section; but if it's determined that Territorial Road is a public street, the City might want to consider improving the road with proper drainage ditches and possibly blacktopping to eliminate the constant need for filling in potholes, etc. If improvements are needed and it's a public street, the City could recover its costs by assessing the property owners for the improvements. Currently, the City is working with its city attorney and Campbell Abstract Company in an effort to determine if Territorial Road actually exists as a City street. A determination had not been made by the City Attorney yet; and as a result, it was recommended by the Council that the City continue its present maintenance policies patching the potholes until an actual determination is made as to whether it's a public or private road. 11. Consideration of Renewal of Annual Licenses. Motion was made by Maxwell, seconded by Blonigen, and unanimously carried to approve the following license renewals effective July 1, 1985. Council Minutes - 6/24/85 Intoxicating Liquor, On -sale (Fee $3,300) 1. Monticello Liquor, Inc. 2. Silver Fox 3. Charlie's West 4. Joyner's Lanes 5. Stuart Hoglund - Oakwood Motel Intoxicating Liquor, On -sale, Sunday (Fee $100) Renewals 1. Monticello Liquor, Inc. 2. Silver Fox 3. Charlie's West 4. Joyner's Lanes 5. Oakwood Motel Non -intoxicating Malt, On -sale (Fee $245) Renewals 1. Rod & Gun 2. Pizza Factory 3. Country Club Non -intoxicating Malt, On -sale, Temporary (Fee $10/day) 1. St. Henry's Fall Festival, 2 days - $20.00 Non -intoxicating Malt, Off -sale (Fee $50.00) 1. Monticello Liquor 2. Ernie's Sport & Bait Shop 3. Wayne's Red Owl 4. Maus Foods 5. River Terrace 6. Tom Thumb 7. Charlie's West 8. Holiday 9. Plaza Car Wash Wine/3.2 Beer Combination, On -sale (Fee $400) Renewal 1. Dino's Deli !Wm Council Minutes - 6/24/85 Set-up License (Fee - $250) 1. Country Club 2. Rod & Gun Club Licenses (Fee - set by Statute) 1. V.F.W. - $500 (membership 268) 2. Am. Legion - $650 (membership 580) Bingo, Temporary (Fee $20) 1. St. Henry's Fall Festival Gambling, Temporary ($20 per device) 1. St. Henry's Fall Festival - $60 12. Consideration of Bills for the Month of June. Motion was made by Maxwell, seconded by Blonigen, and unanimously carried to approve the bills for the month of June as presented. Rick Wolfstelleb Assistant Administrator IM