City Council Minutes 06-27-1988 SpecialMINUTES - SPECIAL MEETING
MONTICELLO CITY COUNCIL
Monday, June 27, 1988 - 2:30 p.m.
Members Present: Arve Grimsmo, Fran Fair, Warren Smith, Dan Blonigen,
Bill Fair
Members Absent: None
1. Discuss Options for Expansion of Water Reservoir System.
Mayor Grimsmo requested a report from Public Work Director John Simola.
Simola reported that the City Engineer working with the Public Works
Department has developed a number of options for expansion of the water
reservoir system. One of the options included development of a stand
pipe reservoir on the Monte Club hill property. Simola reported that
the Monte Club property is no longer being considered as a site for the
reservoir as one owners have indicated that they are not interested in
selling their property to the City. Simola went on to say that three
alternative sites do exist on the hill east of the Monte Club, all of
which are located on the Shultz property. Mr. Shultz has been contacted
regarding the potential of establishing a standpipe reservoir on his
property. As of the time of the meeting, it is not known if Mr. Shultz
is interested in selling a portion of his land for use by the city as a
site for the water reservoir.
John Simola along with John Badalich of OSM, discussed other options
for development of additional water storage capacity for the City of
Monticello. Four other areas where discussed as being viable options
and are as follows:
1. Site located near Hwy 39 and 118 on Chelsea Road.
Property currently owned by Mr. Boyle.
2. Property located in Meadow Oak Development. Currently
reserved for park dedication.
3. Property now owned by the school district. Site
proposed would be on the Middle School grounds.
4. Property located on Dundas Road near the well #4 well
site.
Council discussed the various options for development of the water
storage facility. Mayor Grimsmo asked what the owner of an $80,000 home
could expect in terms of a tax increase if the cost of the $750,000
water storage facility expansion was placed on city taxes. Staff
reported that the increase in taxes to such a home would be about $5 per
year.
Dan Blonigen noted the importance of the decision regarding siting of
the water tower, and noted that long-term planning considerations must
be taken into account when establishing the location of the facility. A
discussion of the costs associated with each alternative ensued. John
Simola reported that in the long run, the storage facility located on
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the ground is much cheaper in terms of maintenance. Council member
Fair suggested that each proposal be evaluated in terms of short term
cost and long term cost and that other considerations regarding each
site including the ability of acquiring the site in a timely manner and
impact of the location in terms of the overall system be evaluated with
report coming back to Council the at next meeting. Motion by Fran Fair
to begin negotiations on terms pertaining to the potential purchase of
of sites noted as viable sites for placement of the water storage
facility, and direct staff to develop additional information regarding
each site with the information to be available with the July 11, 1988
Council Agenda. Staff to make an offer to the Monte Club that is
comparable to that which is being offered to Mr. Shultz. Motion
seconded by Bill Fair. Motion passed unanimously.
2. Consider Proper Elevation for Water Storage Facility.
John Badalich reported that the elevation he feels is the best for the
entire system is an elevation of 1,105 feet. Badalich noted that on
average, the pressure generated with this elevation would be 56 pounds
and would produce a flow of 4,000 gallons per minute at the Industrial
Park. Badalich noted that the proposed elevation and corresponding
water pressures attempts to strike a balance between the needs of the
industrial users and needs of residential users. The elevation proposed
will provide provide adequate ".fire flow" serving the needs of the
industrial areas, while increasing the average pressure experienced by
residential users by 28 pounds, Badalich noted that the increase in
water pressure may have an adverse affect on private plumbing of older
residences and that significantly higher water pressure would exsist
for homes along the river which would require installation of pressure
reducing valves.
At this point in the meeting Council and Staff discussed methods by
which the problems created by the high water pressure can be mitigated.
It was suggested that individual homes be tested prior to putting the
new system on line. It was estimated that such testing would cost $150
to $180 per home.
The City Engineer was asked by Council what percentage of the homes in
Monticello will experience a problem with the type of water pressure
increases expected with installation of the new reservoir. Mr. Badalich
and his associate, were not able to make an estimate in response to the
question. Council directed City Engineer to research communities that
have experienced a similiar situation and report to Council what the
City can expect in terms of impact of increased water pressure on
residences in Monticello, especially those with older plumbing. It was
the consensus of Council that the information that Badalich will gather
will be used to develop additional costs associated with development of
this system which will be included in the overall bond cost.
A discussion regarding the potential of developing parallel water
systems insued. It was suggested that the City might develop a system
for the older portion of town which would be operated at a reduced
pressure and develop a system separate from the older town system which
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would operate at a higher pressure. It was noted by the engineers
present that such a system may not be feasible and that long term
maintenance costs of such a dual system would be exceedingly high.
Council decided to continue this discussion at the July 11, 1988,
meeting. Discussion to be supplemented by information to be gathered by
John Badalich regarding impact of higher pressures on plumbing commonly
found in older homes.
3. Consider Method of Financing Water Storage Improvement.
Council reviewed the memo presented by OSM and Staff outlining the
various methods by which the water storage facility can be financed. It
was noted that the two most feasible methods included financing via
water revenue bond which would be paid utilizing water system revenue
and through payment of hook-up charges. As another alternative the
project could be financed via general obligation bond which would be
paid with tax funds. City Administrator Wolf Steller noted that in
order to finance a water revenue bond, the water rates in the City of
Monticello must increase three -fold, on the other hand utilizing a
general obligation bond would require the need for a tax increase of
about three quarters of one mill or about five dollars per single family
home valued at $80,000. It was also noted that general obligation bond
issuance would require a City referendum.
After discussion, motion by Bill Fair to schedule a water storage
facility general obligation bond referendum question for September 13,
1988. Motion seconded by Warren Smith and passed unanimously.
SEE RESOLUTION 88-25.
There being no further discussion, meeting adjourned.
Respectfully Submitted,
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Jeff O'Neill,
Assistant Administrator
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