City Council Minutes 04-23-1984MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
April 23, 1984 - 7;30 P.M.
Members Present; Arve A. Grimsmo, Jack Maxwell, Ken Maus, Fran Fair,
Dan B loni gen .
Members Absent: None.
1. Call to Order.
2. Approval of Minutes.
Motion was made by Fair, seconded by Maus, and unanimously carried to
approve the minutes of the regular meeting held April 9, 1984.
4. Public Hearing - Modification No. 1 of Tax Increment Financing District
#1 and Adoption of Tax Increment Financing District #4.
IXI Corporation is proposing to build an additional four buildings
on the west half of Lot 7, Block 3, Oakwood Industrial Park, which
will be known as Tax Increment District #4. A portion of one of the
warehouse buildings will be situated on the north half of Lot 7
and will be on a portion of the west half of the lot which is currently
Tax Increment District #1. Since it is virtually impossible to divide
the value of a building between two separate Tax Increment Districts,
it was necessary to detach a portion of the land from Tax Increment
District #1 and incorporate it into the new Tax Increment District #4.
Under state law, a public hearing must be held before any new Tax
Increment District can be established or any modification can be made
to an existing Tax Increment Financing District. The public hearing
was held, and no comments were heard from the public in regard to
either the modification or the new district.
5. Consideration_ of a Resolution Approving Modification No.l to Tax
Increment Financing District #1.
A motion was made by Maus, seconded by Blonigen, and unanimously
carried to adopt a resolution modifying Tax Increment District #1
and reducing the size of this district by the north 175 feet of
Lot 7, Block 3. See Resolution 1984 #13.
6. Consideration of a Resolution Approving Tax Increment Financing
r,; C+ - r; rt �a _ _.�
Tax Increment Financing District #4 will be comprised of all of the
west half of Lot 7, Block 3, Oakwood Industrial Park, and the north
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175 feet of the east half of Lot 7, which was recently eliminated
from District #1. The buildings proposed for construction on this
parcel will consist of two 60 x 120 foot buildings, one 60 x 220 foot
warehouse building, and one 50 x 80 foot office building. All of
the buildings on Lot 7 will be connected by canopied passageways.
The tax increments expected to be generated from this new construction
will amount to approximately $20,000 annually to pay off the debt
of approximately $57,000 to the HRA for the H RA' s cost in the west
half of Lot 7.
Motion was made by Blonigen, seconded by Fair, and unanimously
carried to adopt a resolution approving the Tax Increment Financing
Economic Development District #4 for IXI Corporation. See Resolution
1984 #14.
7. Consideration of a Resolution Requesting Certification of Tax
Increment Financing District #4 with County Auditor.
Once the Tax Increment Plan has been approved by the City Council,
it is required that the District be certified to the County Auditor
before it can go into effect.
Motion was made by Fair, seconded by Maus, and unanimously carried
to adopt a resolution requesting certification of Tax Increment
Financing District #4 with the County Auditor. See Resolution
1984 #15.
8. Consideration of a Resolution Requesting Certification of Tax
Increment Financing District #3 with County Auditor.
At the previous Council meeting, the City Council adopted a resolution
approving the establishment of Tax Increment District #3 for the
Fulfillment Systems Project for property situated in Lauring Hillside
Terrace. Also, before this District can be formally established,
the County Auditor must certify the original assessed value of the
property within Tax Increment Financing District #3.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to adopt the resolution requesting certification by the
County Auditor of Tax Increment Financing District #3. See
Resolution 1984 #16.
9. Consideration of a Resolution Awarding Sale of Tax Increment Bonds.
At the April 9 Council meeting, Jerry Shannon of Springsted, Inc.,
the City's Bonding Consultant, received authorization to secure
bids for the sale of $155,000 bond issue for Tax Increment District
#3, Fulfillment Systems Project.
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Eight bids were received from area financial institutions as follows:
Moore Juran 8.3861 %
Dain Bosworth 8.41
Miller, S ch oe de r 8.53
American Nat'l Bank & Trust Co. 8.57
Piper, Jaffrey 8.60
1st Nat' 1 Bank - St. Paul 8.6635
lst Nat' 1 Bank Mpls. 8.6660
Juran & Moody 8.6735
It was recommended by Springsted, Inc., that the City award the sale
of the bonds to Moore Juran at a net interest rate of 8.38610. Motion
was made by Blonigen, seconded by Maus, and unanimously carried to
award the sale of the $155,000 tax increment bonds for District #3
to Moore Juran at a net interest rate of 8.38610. See Resolution 1984 #17.
10. Consideration of Pump House Nos. 1 & 2 Bids.
At the April 9 Council meeting, plans and specifications for additions
to Pump Houses Nos. 1 & 2 were approved and the Public Works Director
was authorized to advertise for bids. Three bids were received on
the building construction as follows:
NAME
BOND OR CASH
NO. 1& 2
NO. 2 ONLY
Jay Miller Const.
Cert. Check
$20,618.00
$14,678.00
Quintin Lanners
Cashier's Check
$21,548.00
$15,523.00
Jim Schleif Const.
Bid Bond
$17,995.00
$12.139.00
Electrical bids for both pump house additions were also received on
Monday as follows:
NAME
Double "D" Electric
Mortenson Electric
Olson & Sons Electric
Klatt Electric Co.
NO.111 NO. 2
$1, 2 79. 00 $1,691-00
$ 593.00 $ 893.00
$1,832.00 (combined 1 & 2)
$ 436.00 $ 645.37
By combining the low construction bid from Jim Schleif Construction
of Buffalo for both pump houses in the amount of $17,995.00 and the
low electrical bid from Klatt Electric Company of Buffalo in the
amount of $1,081.37, the total cost for both pump house additions
would total $19,076.37.
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Motion was made by Maus, seconded by Fair, and unanimously carried
to award the contracts for construction of the pump house additions
to the low bidder, Jim Schleif Construction, and Klatt Electric,
for a total price of $19,076.37.
11. Consideration of Final Acceptance for Wastewater Treatment Plant
Construction.
Recently, a final inspection was conducted by the Minnesota Pollution
Control Agency, Corp of Engineers, along with City staff members
and Consulting Engineer on the Wastewater Treatment Plant construction
project. The general contractor, Paul A. Laurence Company, recently
completed its punch list items; and as a result, they requested a
final payment in the amount of $103,354.00. The City's engineering
firm, OSM, also recommended that the City accept the project as
completed and sign the Certificate of Final Acceptance Forms.
It was noted that after final acceptance of the construction project,
the general contractor would be providing a one-year Performance
Bond to take care of any items that may need repairs or to correct
problems that may exist at the Treatment Plant. This Performance
Bond would be for a period of one year after acceptance date.
Some concerns were expressed by Council members on issuing a final
acceptance of the project due to the fact the Plant still has odor
problems. Public Works Director, John Simola, noted that City personnel
are currently in the process of trying to find the odor problems
and feel there may be a defect in one of the holding tanks, which
would be the responsibility of the contractor to repair once the
City isolates the problem. Mr. Simola noted that the Performance
Bond for one year would cover any repairs that would be necessary
and felt that the contractor has completed the project according
to specifications and should be paid his entire amount. It was the
general Council consensus that if there are some problems at the
Wastewater Treatment Plant, including odor control, they were
somewhat reluctant to sign the final acceptance forms and make final
payment to the general contractor prior to the problem being isolated
and corrected. It was felt that the general contractor may be more
helpful in solving the problem before final payment is made rather
than relying on the Performance Bond to correct the problem.
As a result, motion was made by Maus, seconded by Blonigen, and unanimously
carried to postpone final acceptance of the Wastewater Treatment Plant
project and postpone final payment to the general contractor until
the odor problems can be further researched by the Public Works
Department. This item will again be considered by the Council on
May 14, 1984.
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12. Consideration of Conditional Use Permit for Car Wash and Gas Station/
Convenience Store in a B-3 Zone, Applicant - Samuel Construction.
Mr. Sam Peraro came before the Planning Commission on April 10 and
received approval for his proposed convenience store/self-service
gas station and car wash on South Highway 25. Mr. Peraro has met
all of the Conditional Use requirements, including providing 13
parking spaces for his new building. As a result, motion was made
by Blonigen, seconded by Maxwell, and unanimously carried to approve
the Conditional Use Permit for Samuel Construction for the convenience
store/gas station and car wash facility located in Commercial Plaza
25 on South Highway 25..
13. Consideration of a Conditional Use Permit to Allow Outdoor Sales Lot
and Minor Auto Re air in a B-3 Zone, A plicant - Eugene Kunkel.
Mr. Eugene Kunkel requested a Conditional Use Permit for a used
car sales lot and minor repair facility on the former location of
Dino' s Restaurant on East County Road 75. The Planning Commission
at their last meeting recommended approval of the Conditional Use
Permit provided all conditions of the City Ordinance are met, including
screening and blacktopping of parking areas, etc. Mr. Kunkel proposes
to build a 24 x 40 foot permanent building on the parcel and also
agrees to resurface the entire area to meet the City Ordinance.
Motion was made by Maxwell, seconded by Fair, and unanimously carried
to approve the Conditional Use Permit to Tri -Auto Sales for a sales
car lot and minor auto repair facility provided all conditions of the
City Ordinance are adhered to.
14. Consideration of a Proposal to Allow Dahlgren & Associates to be
Engaged by Wright County State Bank et al.
Consulting City Planner, Howard Dahlgren & Associates, has been asked
by the Wright County State Bank, Stokes Marine, National Bushing,
and the Monticello Times to be a consultant and design new egress and
ingress accesses for their parking facilities from Highway 25, etc.
Because Howard Dahlgren & Associates is the City Consulting Planner,
Mr. Dahlgren requested permission from the City Council to work privately
for these individuals in designing their new access from Highway 25.
Motion was made by Blonigen, seconded by Maus, and unanimously carried
to authorize the City Consulting Planner, Howard Dahlgren & Associates,
to engage privately with these individual land owners to design new
accesses from Highway 25.
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15. Consideration of a Feasibility Report on Reconstruction of Highway
39/75 and Transmittin2 to CountX Engineer, and Consideration of a
Resolution Ordering Plans and Specifications Contingent on County
Approval of Feasibility Stud.
A feasibility report on the reconstruction of County Road 75 was
submitted by the City Engineering Firm of OSM to the City Council.
The City of Monticello would share in the reconstruction costs with
Wright County on the repaving of County Road 75 from approximately
Otter Creek Road near Pinewood Elementary School on the west to
the high school on the east. The feasibility report proposed three
alternatives for the repaving of this major portion of County Road
75, with the first alternative being the complete replacement of
the blacktop surface after removal of the existing pavement. The
estimated cost of this alternative with all indirect costs was
estimated at $382,700.00.. A second alternative for this area would
be to remove approximately 212- inches of the existing bituminous
pavement by a milling process and then replace it with new material.
The life span of this alternative was estimated at approximately
seven years vs. 20 years for a completely new constructed road,
with the second alternate estimated at $248,800.00. The third
alternate would be similar to the alternate #2 except that a
geotextile fabric would be placed on the existing bituminous mat
after milling. This would provide additional life to the street
to approximately 1212 years and total cost was estimated for this
alternative at $301,000.00.
In addition, the feasibility report presented cost estimates for
bituminous overlay and the construction of bituminous shoulders
from Otter Creek Road westerly on County Road 75 and also bituminous
overlay and construction of bituminous shoulders from the high school
easterly to County Road 39. This construction cost for the shoulders
and overlay was estimated at $167,400.00, which would be entirely
the County's responsibility with no participation of funds by the City.
Lastly, the feasibility report estimated that $17,300.00 would be
needed for bituminous overlay and pavement repair for a segment of
County Road 75 east of the County Road 39 junction to Interstate 94.
This portion also would be entirely the County's responsibility.
It was noted that reconstruction of County Road 75 with a complete
new bituminous surfacing would provide the longest life span before
major repairs are needed, but the cost would total $382,700.00, which
is considerably more than the County had initially budgeted for. John
Simola, Public Works Director, noted that the County had initially
estimated this portion to cost approximately $185,000.00, but the
County was estimating replacing only about 2� inches of the bituminous
surfacing rather than a complete reconstruction. Since the County
will be paying approximately 65-70o of the estimated $383,000.00 cost,
the scope of the project will have to be approved by the County Board.
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It was noted that some of the reasons why County Road 75 has
deteriorated so badly over the past few years may be from County
neglect as far as routine maintenance is concerned; and as a
result, motion was made by Maus, seconded by Blonigen, and unanimously
carried to recommend to the County Board that Alternate #1 resulting
in a total reconstruction and repaving of County Road 75 be considered
in the amount of $382,700.00. This would provide a new street with
an estimated 20 year life without major repairs until that time.
The feasibility report and the City Council recommended alternative
will be presented to the County Board for their consideration prior
to plans and specifications being started. See Resolution 1984 #20.
16. Consideration of Feasibility Report on the Reconstruction of Hart
Boulevard and Cedar Street and Adopting a Resolution Setting a Public
Hearing and Ordering the Preparation of Plans and Specifications.
A feasibility report was also presented by the City Engineer on the
feasibility of paving the existing 24' Class V surface Cedar Street
in both a rural type road without curb and gutter and also a
permanent type street with curb and gutter and storm sewer facilities.
The estimated cost of a 24 foot wide bituminous surfacing of Cedar
Street was estimated at $37,200.00. A second alternative was also
presented which would widen the street to a 34 foot width to match
existing Cedar Street north of the railroad tracks and also to
construct a sidewalk along with curb and gutter and storm sewer
drainage facilities. The estimated cost of this alternative was
$79,600.00.
The Council discussed the merits of constructing this street with
curb and gutter vs. a rural type bituminous surfacing, and it was
the consensus that 1) the sidewalk may not be necessary in this
area, as a new sidewalk will be constructed along Highway 25 one
block west of Cedar Street during the Highway 25 reconstruction in
a year or two. In addition, it was felt that portions of the property
along Cedar Street may not be developed for quite some time due to
its low area. The consensus of the Council was to consider bituminous
surfacing only at the present time. It was noted that the first
alternative for a bituminous surfacing only was estimated at $37,200.00
for a 24 foot width street, but it was decided that the plans and
specifications should include the widening of this street to
approximately a 32-34 foot width bituminous surfacing without curb
and gutter. The street at this point would then in the future allow
for the construction of curb and gutter at a minimal cost since the
width would already match existing Cedar Street north of the railroad
tracks.
A feasibility report was also presented on the reconstruction of Hart
Boulevard from approximately the Monticello -Big Lake Hospital to
where Hart Boulevard connects with County Road 75. The project would
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include widening Hart Boulevard to approximately 34 feet from the
hospital to approximately the Wastewater Treatment Plant and also
include the installation of curb and gutter to this point. The
balance of Hart Boulevard would be a rural type bituminous surfacing
only with ditches to control storm water runoff. The estimated cost
of this project was estimated at $89,900.00.
Motion was made by Maus, seconded by Fair, and unanimously carried
to authorize the City Engineer to prepare plans and specifications
for the improvement of Cedar Street between the railroad tracks and
Lauring Lane with a 32-34 foot bituminous rural type street and to
prepare plans and specifications for the improvement of Hart Boulevard
with a portion of the project to be rural type street with the balance
having curb and gutter also. See Resolution 1984 # 1R
17. Consideration of a Feasibility Report on Construction of a Portion
of Interceptor Sewer and Adopting a Resolution Ordering Plans and
Specifications.
The City Engineer has prepared a feasibility report for the installation
of a portion of the planned interceptor sewer line under Highway 25
prior to the upcoming Highway 25 upgrading by the State of Minnesota.
It was felt that by doing this work prior to the upgrading of Highway
25 that significant cost savings could be realized if the City was
allowed to open cut Highway 25 for this sewer line installation rather
than doing the project later after Highway 25 is improved and being
required to bore under the street.
The installation of the interceptor sewer in the Highway 25 area
would be approximately 30-35 feet deep, and it was estimated that
the City could save approximately $20,000.00 by being allowed to open
cut Highway 25 rather than boring under the road. The total estimated
cost of installing the sewer line under Highway 25 was estimated at
$56,000.00; and if extended one block under Cedar Street also, the
total project cost would be approximately $124,500.00.
Motion was made by Maus, seconded by Fair, and unanimously carried
to adopt a resolution receiving the feasibility report and authorizing
the City Engineer to prepare plans and specifications with alternates
on the installation of the interceptor sewer line through both Highway
25 and Cedar Street. A decision would be made later by the Council
as to whether only that segment under Highway 25 would be constructed
or whether to construct the segment from Highway 25 through Cedar Street.
See Resolution 1984 #19•
18. Consideration of Replacing Paint Striper.
John Simola, Public Works Director, presented to the Council three
quotes he recently received on a new paint striper for the Public
Works Department. The prices ranged from a low of $2,231.00 for a
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Council Minutes - 4/23/84
high pressure paint striper to $2,850.00 for an airless paint striper.
Mr. Simola recommended that the City consider purchasing a new airless
paint striper in that the City would be using less thinner when
painting and cleaning the machine after use; and the machine with an
airless system could be used for other purposes such as painting
buildings, etc.
Motion was made by Maxwell, seconded by Maus, and unanimously carried
to authorize the Public Works Director to purchase a new airless
paint striper in the amount of $2,850.00 and to authorize the sale
of the existing paint striper.
Consideration of Approval of Bills for the Month of Aril.
Motion was made by Fair, seconded by Blonigen, and unanimously
carried to approve the bills for the month of April as presented.
See Exhibit #1.
Consideration of Sewer and Water Extension - Jay Morrell Property,
South Highway 25.
Mr. Jay Morrell is currently constructing a warehouse building on
the west side of Highway 25 south of Sandberg South Addition. The
property is not currently served by sewer or water, and Mr. Morrell
discussed with the Council various alternatives for connecting to
the City's sewer and water system.
Mr. Morrell initially indicated a desire to install his own sewer
and water service by placing an easement on the adjacent property
he owns and connecting to a service stub on Sandberg Road. The
City staff noted that in the past, it has not been acceptable by
the City to allow connections to the sewer and water system by
crossing other platted property with easements and recommended that
the sewer and water service be extended along the Highway 25 right-
of-way to provide access to the property. The estimated cost of
extending the sewer and water mains in the Highway 25 right-of-way,
including a sewer manhole and water hydrant, was estimated at
$12,000.00. The initial City recommendation was to immediately
assess approximately $3,000.00 to Mr. Morrell of this cost and defer
approximately $5,000.00 for up to ten years.
Mr. Morrell indicated a willingness
service through an easement and pay
hookup and also agreed to provide a
noting that if the actual sewer and
along Highway 25 in the future, he
would be assessed at a later date.
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to install his own sewer and water
all costs associated with the
written agreement with the City
water mains are ever extended
understood that his property
Council Minutes 4/23/84
After Council discussion, it was the consensus of the Council that
Mr. Morrell be allowed to provide his own sewer and water connections
through an easement if necessary provided the legal agreement was
satisfactory to the City stating that his property would be assessed
in the future when the sewer and water mains were actually extended.
21. Ratification of Union Contract.
City Administrator Tom Eidem informed the Council that the Local 49
Union personnel along with himself and a State Mediator have
recently reached an agreement for the renewal of the employee's union
contract for an additional two years effective April 1, 1984. The
new agreement would call for a 45� an hour raise the first year of
the contract and a 50� per hour raise effective April 1, 1985, during
the second year of the contract. The average increase would amount
to 5.1% and a motion was made by Blonigen, seconded by Maus, and
unanimously carried to ratify the union contract as proposed.
Rick Wolfsteller
Assistant Administrator
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