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City Council Minutes 02-23-1987MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, February 23, 1987 - 7:30 p.m. Members Present: Arve A. Grimsmo, Fran Fair, Warren Smith, Bill Fair, Dan Blonigen. Members Absent: None. 2. Approval of Minutes. Motion was made by Smith, seconded by Fran Fair, and unanimously carried to approve the minutes of the special meeting held February 9 and the regular meeting held February 9, 1987. 4. Consideration of Authorizing Contract Execution with DMDI for Computer Acquisition and Awarding Lease Agreement for Bid. Anne Carroll, the City's Computer Consultant, informed the Council that the contract negotiations with DMDI have been completed and a recommendation was made on the software and equipment purchases necessary to implement a computer system at City Hall. Ms. Carroll noted that some software packages were modified and/or eliminated from the original bid and also that hardware changes were made after negotiations. At this point, the total hardware package was estimated at $51,959 and software for all departments at $50,845. In addition, it was recommended that upon purchase of the hardware and software, the City also enter into a hardware and software maintenance agreement with DMDI and Wang Equipment for a one year period that would bring the total cost of the acquisition to $122,375. In regards to the financing of the computer acquisition, the City solicited bids on a lease/purchase arrangement and received two bids from Norwest Investment Services and Marquette Leasing Services. On a five-year lease purchase, Norwest would finance the acquisition at an interest rate of 6.73 percent versus Marquette Leasing Services interest rate of 7.125 percent. The lease/purchase arrangement would allow the City to purchase the equipment at the end of the lease period for $1 and appears to be an excellent way to finance the acquisition over its staged implementation. After further discussion, motion was made by Fran Fair, seconded by Warren Smith, and unanimously carried to authorize entering into a hardware sales and software leasing agreement with Data Management Design Incorporated and to enter into a hardware maintenance agreement with Wang, Inc., and a software maintenance agreement with DMDI for a period of one year at a total cost of $122,375. Council Minutes - 2/23/87 Motion was also made by Bill Fair, seconded by Fran Fair, and unanimously carried to enter into a five-year leasing agreement with Norwest Investment Services at an annual interest rate of 6.73 percent. 5. Consideration of an Application for a 3.2 Beer Off -sale License - Applicant, Red Owl Stores. The Red Owl Corporation recently applied for a 3.2 Off -sale Beer License for the former Service Plus Foods in the Monticello Mall, which will be reopened by the corporation in the near future. Motion by Bill Fair, seconded by Dan Blonigen, and unanimously carried to approve issuance of the 3.2 Beer Off -sale License to the Red Owl Corporation for the remainder of the license period until July 1, 1987. 6. Consideration of a Proposal for a Simple Subdivision - Applicant, Nick Kampa. Mr. Nick Kampa, owner of Lot 2, Block 1, Kampa Estates, requested approval of a simple subdivision to subdivide the existing residential lot into two lots. The proposed subdivision would meet the square footage requirements of the City with one parcel retaining the existing house and garage. The proposal requested an easement across the newly created parcel to allow for access to an existing garage. The Planning Commission recommended approval of the subdivision provided a new access was created off of County Road 39 for the existing house and garage and that the easement across the newly created lot be denied. In addition, it was noted the Wright County Highway Department requested that the newly created driveway for the existing house be at least 20 feet away from an abutting driveway. Motion was made by Fran Fair, seconded by Bill Fair, and unanimously carried to approve the simple subdivision request provided the following conditions were met. 1. The ingress and egress easement across Parcel B to service the garage on Parcel A be eliminated. 2. The future driveway for Parcel B to service the existing house be at least 20 feet away from an abutting driveway. 3. Future services for sewer and water to the existing house be installed prior to the reconstruction of West County Road 39 during the spring of 1987. 7. Consideration of a Proposal for a Simple Subdivision - Applicant, Russell Lovegren. Russell and Carol Lovegren requested approval to subdivide their residential lot to create two lots. One parcel with the current -2- Council Minutes - 2/23/87 residence would contain approximately 10,285 square feet, and the newly created parcel would contain approximately 18,480 square feet. The larger parcel currently contains a garage that would have to be removed prior to a new home being constructed on the property. Motion was made by Warren Smith, seconded by Dan Blonigen, and unanimously carried to recommend approval of the subdivision provided the existing garage on Parcel B be removed prior to a building permit being issued for a new home and that a new home would not require any additional variances and would be started within 120 days. 8. Consideration of an Application to Renew a Gambling License - Applicant, Monticello American Legion. Currently the American Legion Club operates a gambling license at the Monticello Liquors and has applied to the State Charitable Gambling Board for renewal of this license. The City Council has 30 days to object to any renewal of the license prior to the State reissuing the license. Hearing no objections, it was the consensus of the Council to allow the State Charitable Gambling Board to renew the license for the American Legion Club. 9. Consideration of a Request to Attend the National Conference for Finance Officers. The Finance Director for the City of Monticello requested approval to attend the National Government Finance Officers Association Annual Conference to be held in Washington, D.C., May 30 through June 3, 1987. The conference expense was budgeted for 1987; and as a result, motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to authorize the Finance Director to attend the national conference. 10. Consideration of Bills for the Month of February. Motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to approve the bills for the month of February as presented. 11. Review of OSHA Audit. Public Works Director, John Simola, informed the Council that the City of Monticello recently was audited by an OSHA representative who indicated that some changes needed to be made at the Maintenance Building and other City facilities to meet OSHA requirements. Mr. Simola requested authorization from the Council to expend approximately $2,400 to make the needed changes to meet OSHA compliance. Motion was made by Bill Fair, seconded by Fran Fair, and unanimously carried to approve the expenditure of approximately $2,400 for numerous -3- Council Minutes - 2/23/87 repairs and corrections to meet OSHA compliance and correct hazardous conditions listed at the Maintenance Building and other City facilities. (:Z- 01 Rick Wolfst ler Assistant Administrator IM