City Council Minutes 04-13-1987MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, April 13, 1987 - 7:30 p.m.
Members Present: Fran Fair, Bill Fair, Warren Smith, Dan Blonigen.
Members Absent: Arve A. Grimsmo
2. Approval of Minutes.
Motion was made by Warren Smith, seconded by Bill Fair, and unanimously
carried to approve the minutes of the regular meeting held March 23,
1987.
4. Consideration of Entering a Fire Training Mutual Aid Association.
Approximately a month ago, representatives of the Monticello Fire
Department requested the City enter into a joint powers agreement
with the cities of Becker, Big Lake, Elk River, Zimmerman, and the
Township of Becker for the purpose of sharing the cost associated
with video training tapes for all fire departments. The Monticello
Fire Department's share of the tapes would have been $216.20.
The joint powers agreement presented by the Fire Department was reviewed
by the City Attorney, Gary Pringle, who recommended against entering
into a joint powers agreement creating another level of government
with its own independent budget and decision-making authority. It
was recommended by the City Attorney that if the primary reason for
the agreement was to jointly participate in the purchase of video
cassettes only, then a simple one page agreement allowing for joint
and cooperative purchase of these items would be sufficient and that
a nine page joint powers agreement setting up a separate association
would not be necessary.
As a result, motion was made by Bill Fair, seconded by Dan Blonigen,
and unanimously carried to not approve entering into a joint powers
agreement for the purpose of mutual fire training.
The Council members confirmed that the idea of contributing towards
the purchase of video cassettes for training purposes was a good
idea; and as a result, a motion was made by Bill Fair, seconded by
Warren Smith, and unanimously carried to approve the expenditure
of $216.20 as Monticello's share of the training tapes.
5. Consideration of Endorsing the Motto "Gateway to the Twin Cities"
as a Commercial Marketing Concept.
W.J. Murphy, owner of the Monticello AmericInn Motel, appeared before
the Council requesting endorsement of a commercial marketing concept
Council Minutes - 4/13/87
that would include a series of billboards along I-94 in the area
of Melrose and Albany which would utilize the concept that Monticello
is the gateway to the Twin Cities. Some of the billboards would
be advertising Monticello in general without a specific business
being mentioned.
Motion was made by Bill Fair, seconded by Warren Smith, and unanimously
carried to endorse the motto "Gateway to the Twin Cities" as a commercial
marketing concept.
6. Consideration of Adopting an Ordinance Regulating Sidewalks.
Currently, the only reference in the City Ordinances regarding sidewalks
is a requirement that abutting property owners must clear their walks
of ice and snow by 10:00 a.m. each day. The Public Works Director
recommended that the City adopt a new ordinance regulating sidewalks
which would cover repair responsibility along with maintenance and
procedures for special assessments if sidewalks are replaced or added
within the community. The new ordinance would allow for the Public
Works Director to inspect annually the sidewalk conditions within
the City and make recommendations for required improvements.
An ordinance amendment was also recommended that makes sidewalks
an allowable use within a boulevard and a final ordinance amendment
would recode an existing ordinance regarding vehicles parked on streets
after snow falls.
Councilman Blonigen questioned the ordinance's requirement that residents
would be responsible for snow removal from sidewalks abutting their
property and felt that in some cases, depending on the location of
the sidewalk, this may be hard to enforce or be an unfair burden
on the property owner. The Public Works Director noted that the
City currently has ordinances requiring snow removal by the property
owner and that the new recommended ordinance would actually extend
the time period to 24 hours after a snow fall.
After further discussion, motion was made by Bill Fair, seconded
by Warren Smith, and unanimously carried to adopt Ordinance Amendment
Numbers 153, 154, and 155, pertaining to repair and maintenance of
sidewalks, allowable uses within a boulevard, and recodification
of parking after a snow fall. See Ordinance Amendments No. 153, 154, 155.
7. Consideration of Adopting a Resolution Authorizing the Making of
an Application for Community Development Block Grant Funds, and Setting
a Public Hearing.
Now that the North American Window Company has selected Monticello
as a site for its Minnesota plant, the City of Monticello is attempting
to structure an attractive financial package that will assist in
their location. As part of the financial package, the City is considering
applying for a Community Development Block Grant in the amount of
$250,000.00 that could be loaned to the Window Company at a reduced
interest rate.
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Council Minutes - 4/13/87
One of the requirements for applying for the Block Grant from the
State of Minnesota is that the City must hold a public hearing to
explain how the City intends to use its funds.
As a result, motion was made by Bill Fair, seconded by Warren Smith,
and unanimously carried to adopt the resolution authorizing the application
for a Community Development Block Grant from the Department of Energy
and Economic Development and to hold a public hearing on the proposed
uses of the Block Grant April 27, 1987. See Resolution 87-10.
The Council further discussed the interest rate that would be charged
on the Block Grant loan to the Window Company should the City receive
the Grant. It was noted that the State of Minnesota does not regulate
the amount of interest that could be charged, and the City Administrator
noted that the Window Company was under the impression from a state
representative that the interest rate could be as low as 1 percent
or 11� percent. In light of the fact that the money would be used
to entice a foreign firm to locate in Monticello and that the money
is a grant from the State, motion was made by Bill Fair, seconded
by Warren Smith, and unanimously carried to indicate to the Window
Company that the interest rate on the $250,000.00 loan would be 112 percent
annually.
8. Consideration of Setting a Public Hearing on a Proposed Tax Increment
Finance Plan and Project.
An additional part of the financial package being prepared for the
Norwegian Window Company location in Monticello is a Tax Increment
Finance Plan which would help write down the cost of the land acquisition.
The finance plan as presented reflects an acquisition price for the
two lots in the industrial park needed by the Window Company of approximately
$1042000.00. A total bond issue in the range of $155,000.00 to $160,000.00
could be financed entirely from tax increments generated by the project
and would result in the write down of the land cost to approximately
$5,000.00 for the Window Company.
Motion was made by Bill Fair, seconded by Blonigen, and unanimously
carried to set a public hearing for April 27, 1987, to consider the
proposed Tax Increment Finance Plan for Project V.
9. Consideration of a Statement Charging the City for Video Cassette
Recorder Rental for the Monticello Fire Department.
As part of the 1987 preliminary budget request by the Fire Department,
a VCR to be used for training purposes was requested by the department
for $400.00. Prior to the adoption of the final budget for 1987,
the item pertaining to the VCR was eliminated from the budget. Fire
Chief, Willard Farnick, indicated that he was not aware of the budget
cut and had purchased a VCR in January of 1987 assuming it was still
in the budget. After the Fire Department was informed that the purchase
would not be authorized, the City Administrator allowed the Fire
Department to rent a VCR on an as -needed basis for training purposes
until the amount could be included in next year's budget.
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Council Minutes - 4/13/87
The City recently received a bill from Flicker's TV and Appliance
for a six month rental of a VCR totaling $87.00. The rental was
for the entire six months from November through April, 1987, whereas
the City Administrator thought the rental charges should apply only
to when the department actually needed a VCR for training purposes.
The Council then discussed whether the department should continue
renting a VCR on a month -by -month basis or consider the actual purchase
of the VCR, as the rental charges would soon exceed the value of
a VCR purchases;. The Council did note that it was the Fire Department's
obligation to kiow what the final budget adopted was and that hopefully
in the future siiAlar problems would not arise regarding unauthorized
purchases. Councilmember Blonigen again questioned whether a VCR
for the Fire Department was a necessity and questioned its value.
After further discussion on purchasing policies in the future, motion
was made by Bill Fair, seconded by Warren Smith, to authorize up
to $300.00 for the purchase of the VCR currently being rented provided
no rental charge is incurred for the past usage. Voting in favor
was Bill Fair, Fran Fair, Warren Smith. Voting in opposition was
Blonigen.
10. Consideration of Granting a Seasonal 3.2 Beer License to the Monticello
Softball Association.
Motion was made by Bill Fair, seconded by Warren Smith, and unanimously
carried to approve issuing a seasonal 3.2 beer license to the Monticello
Softball Association contingent upon proper certificate of insurance
for liquor liability and the fee of $125.00.
11. Consideration of Awarding a Contract for Cleaning Services for City
Hall.
Recently, the cleaning service at the Monticello City Hall indicated
a desire to resign their duties, and the City advertised for sealed
bids for custodial service for City Hall. The following two bids
were received.
1. Barbara Gardin 2. Federal Maintenance and Cleaning
Maple Lake, MN Michael Chandler --Contact Person
Annual Bid: $7,400 Monticello, MN
Monthly Payment: $616.66 Annual Bid: $7,096.92
Monthly Payment: $591.41
It was noted that the low bid received is approximately $2,200.00
higher than the City is currently paying, but one of the primary
reasons for the increase has to do with the City now requiring liability
and casualty insurance along with a security bond.
Motion was made by Bill Fair, seconded by Blonigen, and unanimously
carried to award a cleaning contract to the low bidder, Federal Maintenance
and Cleaning,in the amount of $7,096.92 per year.
Council Minutes - 4/13/87
12. Discussion on Proposed Legislation to Allow Sale of Wine in Grocery
Stores.
Administrator Eidem noted that the Municipal Liquor Store Association
requested the City Council oppose recent legislation introduced that
would allow for wine to be sold in grocery stores. It was noted
that previously when this law was being considered by the legislature,
the City had opposed the sale of wine in grocery stores, and the
Association again recommended the City draft a letter in opposition.
Motion was made by Blonigen, seconded by Bill Fair, and unanimously
carried to authorize the City Administrator to draft a letter stating
the City's opposition to the proposed legislation allowing for wine
to be sold in grocery stores.
14. Cancellation of Recent Purchase Agreement on Former Fire Hall Site.
Administrator Eidem noted that the City has received a cancellation
request on the purchase agreement from Curt Markling for the purchase
of the old fire hall building. It was noted that the primary reason
for the purchase agreement being cancelled was that the developers
did not feel they would be able to meet the parking requirements
necessary for the proposed bar/restaurant proposal.
Rick Wolfstel er
Assistant Administrator
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