City Council Minutes 01-12-1987MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, January 12, 1987 - 7:30 p.m.
Members Present: Arve Grimsmo, Fran Fair, Bill Fair, Warren Smith,
Dan Blonigen.
Members Absent: None.
1. Oath of Office.
Administrator Eidem gave the Oath of Office to the newly elected
Councilmember Warren Smith and re-elected Councilmember Fran Fair,
and Mayor Arve Grimsmo.
3. Approval of Minutes.
Motion was made by Bill Fair, seconded by Blonigen, to approve the
minutes of the regular meeting held December 8, 1986, and the special
meeting held December 26, 1986. Voting in favor was everybody but
Grimsmo, who abstained due to absence from the special meeting.
5. Consideration of Authorizing City Staff and City Data Processing
Consultant to Commence Negotiations with DMDI for the Purposes of
Structuring a Contract for the Delivery of Systems and Services.
Ms. Anne Carroll, the City's Computer Consultant, reviewed with the
Council the current status of the computer selection process. Ms.
Carroll noted that the City originally received ten proposals of
which two vendors were selected for demonstrations, the two being
NCR/Eden Systems and Data Management Design, Inc. After reviewing
the demonstrations, it was the consultant and staff's opinion that
Data Management Design was the vendor of first choice for the software
system and the hardware system would be Wang, Inc.
Ms. Carroll noted that the next stage of the selection process would
be for the City to enter into negotiations with DMDI to iron out
all details on exactly what software and hardware would be submitted
under a contract. The initial proposal by DMDI would computerize
all City departments and functions; and she noted that if the City
Council did not wish to proceed with the entire City computerization
at this time, a directive should be noted at this time before contract
negotiations are commenced.
Councilmember Blonigen questioned whether any cost comparisons were
done to determine if computerization versus manual was cost effective.
Mr. Blonigen felt that possibly the City should be looking at implementing
computerization of all departments over a period of time and phase
in segments as needed. Ms. Carroll noted that even if the City were
to indicate intent to purchase all software packages offered by the
Council Minutes - 1/12/87
vendor, the computerization would have to be a phase-in over a period
of time ranging from months to years to enable the staff to become
familiar with the computers. The contract negotiations would cover
such aspects as determining which functions would be implemented
immediately and which areas would be phased in later. The proposal
as submitted for all equipment and software was in the neighborhood
of $102,000.
After further discussion, motion was made by Bill Fair, seconded
by Fran Fair, and carried to authorize the consultant and staff to
enter into contract negotiations with DMDI based upon the proposal
submitted. Abstaining from the vote: Dan Blonigen.
6. Consideration of a Request from the Monticello Fire Department to
Purchase Paging Devices.
Recently, the Monticello Fire Department joined the Minnesota Fire
Agencies Joint Powers Purchasing Consortium which allows the Fire
Department to purchase various items at group contract prices, including
radio equipment.
Fire Chief Willard Farnick was present at the Council meeting to
request authorization to purchase 28 new Motorola pagers for the
firemen. The pagers, along with carrying cases and chargers, would
total $11,481. Mr. Farnick noted that the current pagers owned by
the Fire Department would be advertised for sale at an estimated
value of $1,500. It was noted that funds are still available from
the fire hall construction fund to cover the cost of the new pagers.
Motion was made by Fran Fair, seconded by Blonigen, and unanimously
carried to authorize the Fire Department to purchase 28 Motorola
pagers and related equipment, including carrying cases, chargers,
and one encoder at a cost of $11,481.
7. Consideration of a Request by the Monticello Housing and Redevelopment
Authority to Set a Public Hearing for January 26 for the Purpose
of Amending the Tax Increment Finance Plan for Tax Increment District #5.
In March of 1985, the City Council approved a Tax Increment Finance
Plan for Construction 5, Inc., which covered Outiot A; Block 1, Lots
1-5; and Block 2, Lot 1, Construction Five Addition. The initial
financing plan created District #5 for the purpose of capturing tax
increments to help defray the cost of public improvements such as
street, curb and gutter, and sewer and water improvements along Fallon
Avenue and Lauring Lane extension. The original financing plan indicated
that Construction 5 would construct an 18 -unit apartment dwelling
on Block 2, and a 25,000 sq ft office/manufacturing facility.
Construction 5 has recently approached the City in regards to constructing
two additional multiple family apartment buildings in 1987 totaling
54 units rather than the office/manufacturing facility originally
planned upon. In addition, it was noted that the public improvement
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costs have increased from $390,000 in 1985 to an estimated $530,000
in 1987. Of this $530,000 improvement cost, approximately $105,000
may be assessable to benefiting property. Due to the new proposed
development and project cost of the improvements, a new public hearing
was necessary to amend the Tax Increment Financing Plan.
Motion was made by Bill Fair, seconded by Warren Smith, and unanimously
carried to set a public hearing for January 26, 1987, for the purpose
of amending Tax Increment Financing Plan for Tax Increment District
#5. See Resolution 87-1.
8. Consideration of Establishing 1987 Salary for the Monticello Senior
Citizen Director.
During December when 1987 non-union salaries were ratified by the
City Council, the Senior Citizen Center Director's salary was tabled
for further discussion, as there were conflicting points of view as
to the status of that position. It was previously understood that
the position of Senior Citizen Center Director was a half time position
and not considered a full-time employee. A problem arose in that
under the comparable worth law, if this position was considered full
time, a sizable pay increase would have to be approved to bring the
salary in line with the comparable worth law.
Mayor Grimsmo briefly reviewed the position and the current Director's
performance and recommended that the City consider the Senior Citizen
Director a full-time position and raise the salary accordingly over
the next two years. The Mayor's recommendation would increase Karen
Hanson's salary $3,000 in 1987 and $3,000 in 1988, putting the position
at $20,400 at that time.
Councilmember Bill Fair indicated concern over the City's responsibility
for this position and questioned how the position actually came about
and became the responsibility of the City rather than the Senior
Citizen Center Board or the Center itself. Mr. Fair noted that if
it is to be considered another City department with a department
head, the Council should have a job description which indicates who
the Director reports to, etc. Councilmember Fran Fair indicated
her uncertainty over whether the City ever intended the Senior Citizen
Center to become a branch or department of the City government and
noted that previous Councils over the past ten years have indicated
the job was part-time for salary purposes.
Councilmember Dan Blonigen indicated the same concerns as Fran Fair
and noted that the original Senior Citizen Center started with a
Director on their own and then when funding ceased, requests were
made of the City to subsidize some of their activities. Mr. Blonigen
noted that as the years went on, it appears that the City has continually
increased its funding and now may end up with a new department and
feels the position should be re-evaluated.
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Administrator Eidem noted that the Council's main determination at
this time is whether the City considers the position full-time or
part-time and not necessarily the performance of the current Director.
Councilmember Bill Fair requested that additional information on
the exact duties of the position and a more detailed job description
should be available before determining whether the job is actually
full-time or part-time. As a result, it was the consensus of the
Council to table any action on the salary adjustment for the Senior
Citizen Director until the next meeting.
9. Consideration of Approving the Relocation of the Intersection of
County Road 39, County Road 75, and County Road 118, and Appurtenant
Construction.
For the past few months, Wright County, with participation from the
City, has been discussing the reconstruction of the intersection
at County Road 39, County Road 75, and County Road 118, to provide
a safer flow of traffic and to provide for future installation of
traffic signals. The preliminary costs of the improvements were
estimated at $87,000, with the City's share being $33,500. In November
1986, the Council authorized the City's participation in this project;
but since that time, the affected abutting property owners, along
with County and City representatives, have been reviewing the intersection
to see if a relocation of the entire intersection easterly would
provide a better solution. The main reason for the proposed shifting
of the intersection east approximately 320 feet would be to provide
for County Road 118 to intersect with County Road 75 at a 90 degree
angle. This relocation would allow a left turn into the Riverroad
Plaza development from County Road 75, whereas if the intersection
was to remain at its present location, a concrete median would prohibit
such access. The relocation would also provide for a developable
piece of property between the Riverroad Plaza and the new County
Road 39. As part of the re -alignment and relocation of the intersection,
a frontage road would be developed using the existing County Road 39
surface for the MacArlund Plaza Townhouse and Riverroad Plaza.
John Simola, Public Works Director, noted that the relocation cost
would be $107,530, with the City's share of this portion being $43,970.
In addition, the relocation would require additional right-of-way
acquisition, and the City's cost for this portion would be an additional
$42,900. Mr. Simola noted that Wright County has approved paving
the shoulders along County Road 39 from County Road 75 all the way
to County Road 19, just north of Albertville. The County's funding
policy requires the City to pay for all shoulder improvements within
the City limits, which would account for 1.3 miles estimated at an
additional $15,000. Also, the County Board approved the project
with another condition that if the City of Monticello annexes any
area within the OAA where County Road 39 extends prior to the project
being finished, they would expect the City of Monticello to pick
up an additional $20,000 for the shoulder improvements since the
area would be in the City at that time. As a result, the total cost
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to the City for all proposed improvements could vary from approximately
$101,870 to $121,870.
Anna Mae Hoglund, representing Riverroad Plaza development, noted
that they have not yet entirely concurred with the County's plans
to relocate the intersection and are currently having an appraisal
done on their property to see if there would be any effect to its
value.
In light of the County's recent approval of the project, motion was
made by Bill Fair, seconded by Fran Fair, and unanimously carried
to accept the revised cost estimates for County Road 75 and agree
to participate 50o to the relocation of County Roads 39 and 118,
with the total City share of this portion estimated at $86,870.
In addition, the motion approved the installation of paved shoulders
on County Road 39 within the current city limits estimated at $15,000,
and will assume the possibility of an additional $20,000 for shoulder
paving in the OAA area if the City annexed this property prior to
the improvements being completed.
10. Consideration of a Procedure to Resolve Cost Conflict Connected with
the 1977-3 Force Main Construction.
Earlier in 1986, the City staff discovered major problems with the
force main installed during the 77-3 project on Elm and Fourth Streets.
It appears that the force main was never drained of water after initial
testing, and consequently froze and damaged resulting in repairs
costing the City over $29,852. It has been the City's contention
that either the contractor at that time or the City Engineer should
be responsible for the cost of repairs.
City Engineer, John Badalich, indicated that his firm would be willing
to share in the responsibility for the failure of the force main
at a cost of approximately $10,000 but felt the construction contractor,
Arcon Construction of Mora, Minnesota, should also be responsible
for the remainder of the cost.
The City Attorney was contacted regarding the possible actions available
to the City, and it was recommended by the Attorney that action be
taken against necessary parties to try and recover the damages in
the amount of $29,852.
Motion was made by Bill Fair, seconded by Fran Fair, and unanimously
carried to authorize the City Attorney to pursue legal recourses
to recover damages; and if no agreement can be reached between the
parties, the Attorney is authorized to bring suit if necessary.
11. Consideration of Resolving a Conflict Concerning the Differential
in the Sewer Sludge Truck.
As part of the Wastewater Treatment Plant upgrading, which was funded
primarily by the EPA and PCA, the City of Monticello prepared specifications
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for two sludge trucks to be delivered as part of the construction
contract. One of the units is a 2,000 gallon applicator unit that
is an off-road vehicle which required a heavy duty rear axle. The
specifications drawn by the engineer had specified a 28,000 pound
planetary rear axle. The supplier had agreed to furnish a planetary
double reduction axle rated at 35,000 pounds, which the truck manufacturer
had agreed to install at their factory. Recently, the rear axle
failed in this unit, and it was determined that somewhere along the
line the City did not receive the axle it had specified and paid
for.
In reviewing the matter with the City Attorney, it was his recommendation
that because of legal action being necessary against three or four
companies and manufacturers in three states, the City may have difficulty
in recovering its cost of a new axle estimated at $14,000 to $18,000.
It was the Attorney's opinion that the City could sustain substantial
legal fees in trying to recapture this amount.
Public Works Director, John Simola, noted that a new axle meeting
the proper specifications could be purchased from Ag -Chem Equipment
Company for $13,300 plus an estimated installation cost locally of
$1,000 to $2,000.
After further discussion on the legal alternatives, motion was made
by Warren Smith, seconded by Bill Fair, and unanimously carried to
authorize the purchase of the planetary rear axle from Ag -Chem for
approximately $13,300 plus installation cost and not to pursue any
legal action at this time against the suppliers of the original equipment.
12. Consideration, Discussion, and Response to a Letter Submitted by
Stuart Hoglund Concerning a Letter and Drainage Recommendation from OSM.
Council members discussed a letter received from Stuart Hoglund who
felt that an engineering review of a proposed development on a parcel
of land he was selling was unfair. Mr. Hoglund had entered into
a purchase agreement to sell a parcel of land south of the Silver
Fox Motel to Lionel Kull and Steve Upgren, who planned to develop
the property into an apartment complex. A concept plan was prepared
by the developers and submitted to the consulting City Engineer for
his review and comments regarding drainage and utility requirements
for the 8 -acre site.
The City Engineer, in reviewing the proposed development, noted that
the proposed surface drainage from the development was proposed to
run off into Cedar Street, and from there the City Engineer noted
that there was no existing storm sewer available for this water to
drain into. The City Engineer recommended that possibly an on-site
temporary storage pond would have to be developed to hold any storm
water runoff and that the City may have to consider in the near future
the acquisition of a wetland area that could be used for ponding
and holding purposes in light of future development in the area.
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It was also noted by the City Engineer that the elevation of the
proposed development was 21� feet lower than the grade of Cedar Street,
and it was recommended that the entire parcel may have to be raised
to an elevation above Cedar Street to provide for adequate drainage.
As a result of the engineering review of the proposed development,
the developers had decided at this time not to pursue the purchase
of the property, and the current owner, Stuart Hoglund, felt the
City was unfair in its review process.
The Council reviewed the letter and noted that the City staff and
consultants are only trying to prevent problems from arising in the
future as development occurs and indicated that it is the developer's
responsibility to submit proposals that meet City requirements.
In addition, the Council did take under advisement the City Engineer's
recommendation that a drainage pond or wetland area be possibly acquired
in the future to take care of storm water runoff in the immediate
area when future development occurs. It was also noted that the
acquisition cost of such a project could be financed with area assessments
against benefiting property that would drain into such a pond.
13. Consideration of Entering a 1987 Maintenance Agreement with Wright
County Highway Department.
Annually, the City of Monticello enters into an agreement with Wright
County, who reimburses the City of Monticello each year for such
services as snow and ice removal and limited patch and crack sealing
that the City crews do on County State Aid Highways within the city
limits. Reimbursements to the City are based on a per mile cost
for each type of maintenance performed and has averaged between $4,265
and $5,433 annually the past four years.
Motion was made by Blonigen, seconded by Smith, and unanimously carried
to approve entering into a new maintenance agreement with Wright
County on state aid roads for the year 1987.
14. Consideration of Adopting the 1987 Sewer Rate Schedule.
Public Works Director, John Simola, reviewed with the Council the
1987 budget for the operation and maintenance of the Wastewater Treatment
Plant and collection system. It was estimated that using the current
rate structure in effect for sewer billings, a shortfall of approximately
$8,000 would exist in 1987. As a result, a small increase estimated
at approximately 3.1 percent was requested in the rate structure
to make the fund self sufficient. The residential sewer billing
would increase from $1.29 per 100 cu ft to $1.33 per 100 cu ft, and
adjustments were also made in the industrial rate structure. Along
with the recommended increase in the sewer rates, the current collection
of sewer hookup fees would be maintained in a separate sewer improvement
fund to be used for major improvements or equipment purchases costing
more than $2,000.
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Motion was made by Fran Fair, seconded by Blonigen, and unanimously
carried to approve the rate increase as proposed and to authorize
the hookup revenue to be transferred to a sewer improvement fund
in 1987.
15. Consideration of Adopting the 1987 Water Rate Schedule.
Mr. Simola also reviewed with the Council the 1987 water department
budget and noted that during the past number of years, ad valorem
taxes have been used to subsidize the water rates, and he noted that
ad valorem taxes were not included in the 1987 budget; and as a result,
increases were proposed in the water rate schedule.
In reviewing the rates of surrounding communities, the City of Monticello
has had one of the lowest water rate schedules in existence. It
was recommended that the base rate for water consumption be increased
from the current 35� per 100 cu ft to 50� per 100 cu ft. In addition,
the rate for consumption over 4,000 cu ft was recommended to go to
30� per 100 from 18�, and the amount over 75,000 cu ft for large
users was recommended from $.185 to $.20. The proposed increases
would raise the base rate about 42.9 percent, while the bottom scale
increases over 90 percent.
Even with the new proposed water rates, Monticello would still be
competitive and lower than surrounding communities for water.
As a result, a motion was made by Bill Fair, seconded by Dan Blonigen,
and unanimously carried to approve the new rate structure for water
for 1987 with a descending scale of 50� per 100 cu ft as the base
rate, 30� per 100 over 4,000 cu ft, and 20� per 100 over 75,000 cu ft
with all hookup fees being transferred to a water improvement fund
similar to the sewer fund.
16. Consideration of Adopting a Revised Schedule of Fees for Services
Rendered Within the City.
Annually, the City Council reviews all license fees, permits, and
other fees that are charged for services rendered by the City. Minor
increases in the licenses for alcohol were recommended, and the fees
charged for variances, conditional uses, and subdivision applications
were recommended to be increased to cover the staff and consulting
time spent.
In addition, it was recommended that a new building permit fee schedule
be adopted, that being the 1985 State recommended fee schedule, which
also includes a plan review charge for all residential structures.
Sewer and water hookup charges were also increased substantially
to more closely reflect the charges of surrounding communities.
Motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously
carried to approve the adoption of the 1987 license and permit fee
schedule as recommended, including the 1985 State Building Permit
Schedule. See Exhibit #1.
Council Minutes - 1/12/87
17. Consideration of Making Annual Appointments.
Motion was made by Blonigen, seconded by Bill Fair, and unanimously
carried to approve the annual appointments as follows:
Official Depositories:
Newspaper:
Housing and Redevelopment Authority:
(5 -year staggered terms)
Planning Commission:
(1 -year term)
Health Officer:
(1 year)
Acting Mayor:
(1 year)
Joint Commissions:
Community Education
Fire Board
OAA
Library Board:
(3 -year staggered)
Attorney:
Planner:
Auditor:
Wright County State Bank
Security Federal Savings & Loan
First National Bank of Monticello
Monticello Times
Ken Maus 12/91
Ben Smith 12/90
Bud Schrupp 12/89
Vacant 12/88
Marlys Erickson 12/87
Richard Carlson
Joyce Dowling
Barbara Koropchak
Richard Martie
Jim Ridgeway
Dr. Donald Maus
Fran Fair
Warren Smith
Rick Wolfsteller
Arve Grimsmo
Warren Smith 12/87
Dr. Donald Maus 12/88
Joel Erickson 12/87
Pat Schwarz 12/88
Marguerite Pringle 12/89
Smith, Pringle and Hayes
Dahlgren, Shardlow & Uban
Gruys Johnson
The Council noted that the one HRA vacancy will be left open at the present time
until an applicant can be found.
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18. Consideration of Selecting a Name to Submit to the Minnesota NBA
Basketball Association Stating the City of Monticello's Preference
for an NBA Franchise Name.
A letter was received from a group of individuals who have been seeking
an NBA franchise for Minnesota basketball. The letter requested
input from the City Council on the name of the team from two choices,
1) Minnesota Polars, or 2) Minnesota Timber Wolves. The City Administrator
was instructed to notify the representatives that three Council members
preferred the name Polars, with one preference for Timber Wolves,
and one abstaining.
19. Consideration of the Purchase of Two Air Compressors, One Each for
the Maintenance Building and Fire Hall.
Motion was made by Bill Fair, seconded by Warren Smith, and unanimously
carried to authorize the Public Works Department and the Fire Department
to purchase 5 HP, 80 gallon, 17 CFM air compressors per bid submitted
by National Bushing in the amount of $1,485. It was noted that if
Harry's Auto Supply would deliver the identical air compressor for
the same price, the Public Works Director was instructed to purchase
one from each supplier.
20. Approval of Bills.
Motion was made by Bill Fair, seconded by Warren Smith, and unanimously
carried to approve the bills for the month of December and January
as submitted.
Rick Wolfsteller
Assistant Administrator
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