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City Council Minutes 11-14-1988MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 14, 1988 - 7:30 p.m. Members Present: Arve Grimsmo, Warren Smith, Dan Blonigen, Bill Fair, Fran Fair. Members Absent: None 2. Approval of Minutes. Council member Bill Fair noted that Council members identified as making the motion and second were in reverse order for item #10. There being no other corrections, motion made by Bill Fair and seconded by Warren Smith to approve said minutes of the regular meeting held October 24, 1988. Motion carried unanimously. 3. Citizens Comments/Petitions, Requests and Complaints. No comments/petitions, requests, or complaints were made from the public. 4. Consideration of Resolution Awarding the Sale of $1,100,000 in General rovement Bonds. City Administrator Wolfsteller reported to Council that on October 11 the Council adopted a resolution authorizing Springsted, Inc., to prepare the sale documents for the sale of $1,100,000 in General Obligation Improvement Bonds to be used to finance the water tower construction and related water main improvements. The bids for the bond sale were opened at the offices of Springsted, Inc., at noon on Monday, November 14, 1988. Wolfsteller, along with Jerry Shannon of Springsted, went on to report that the low bidder is Norwest Investment Services, Incorporated, with a net interest rate of 6.9943%. It was noted by Shannon that this bid compares favorably with comparable bond issues. After discussion, motion by Dan Blonigen and seconded by Warren Smith to award the sale of bonds to Norwest Investment Services, Incorporated. Motion passed unanimously. SEE RESOLUTION 88-52. 5. Consideration of Acceptance of Chelsea Road Improvement Project. City Administrator Wolfsteller reported that enough progress has been made on the unfinished business associated with the Chelsea Road to warrant Council consideration of acceptance of the road. Wolfsteller summarized his staff report to Council as follows: Over the last couple months, the staff has been working hard to get this issue resolved. We are now at the point where the project can now be accepted and not set a precedent by waiving certain requirements. Although there is still work that has to be done, the escrow funds provide sufficient protection for the City to complete the work, if necessary, within the ditches, and the drainage question will eventually take care of itself upon the first development. With the ponding easement the City has recorded, the City Attorney feels we have sufficient protection should that become a 1 Council Minutes - 11/14/88 problem. With the lien waivers provided by Bauerly Brothers and the performance bond submitted by them, along with the guarantee from the School for the sewer portion of the project, Wolfsteller recommended that the City Council consider acceptance at this time. After Wolfsteller's presentation, Gary Schluender noted that he had not received payment from the general contractor. Arve Grimsmo noted that the City cannot be held responsible for the actions of the contractor, and went on to ask if there is anything structurally wrong with the roadway. It was noted by Simola that the roadway meets City specifications; however, the as built drawings are still not totally complete. Motion made by Bill Fair to delay acceptance of the road. Motion seconded by Dan Blonigen. Continued discussion ensued. Warren Smith asked if there is any method to control disbursement of funds paid from escrow to the contractor. John Simola explained that the contractor was paid in full for the work done, and there is no provision assuring that subcontractors are paid. John Badalich noted that subcontractors should have filed a lien against the project if they had not been paid. 011ie Koropchak noted that the signs indicating that Chelsea Road is not a public street may hamper the ability of the City to attract a large potential commercial user of the property. After continued discussion, Arve Grimsmo asked for a recommendation from City staff. Staff responded that the road should be accepted. Council then voted on previous motion. Motion failed unanimously. Motion made by Fran Fair to accept road and include request that School Board address the problem of subcontractors not being paid for their work on Chelsea Road, and that approval is contingent on the final completion of the as built drawings. Warren Smith seconded the motion. doting in favor: Fran Fair, Warren Smith, Arve Grimsmo. Opposed: Bill Fair, Dan Blonigen. 6. Consideration of Replatting Request - Fairway Court/Jay Miller. Assistant Administrator O'Neill informed Council that the Planning Commission has recommended approval of the proposed replatting. He went on to say that the proposed replatting will allow development of two additional townhomes from the previous limit of 10 and that, in terms of the Zoning Ordinance, there is sufficient area to accommodate 10 townhomes. Given the shape of the lot relative to the roadway, it may be difficult to meet road frontage minimums. Dan Blonigen noted that he will not be in favor of any variances that might be necessary in order to develop 10 townhomes. After discussion, motion by Warren Smith and seconded by Bill Fair to approve said request. Motion passed unanimously. Council Minutes - 11/14/88 7. Consideration of establishing new full-time clerical position entitled Data Entry Clerk Secretary. Assistant City Administrator O'Neill reported that based on previous positive indications from Council regarding this position, staff has advertised for applicants for the position. In providing a justification for the added position, he noted that the general clerical secretarial and deputy registrar work load has increased significantly along with the growth of the community. At the same time, additional clerical staff has not been added. O'Neill informed Council that staff will be evaluating applicants based on knowledge of word processing, payroll processing, financial data entry, and other clerical skills. Patti Mayer was in attendance and asked who was responsible for making the hiring decision. Mayor Grimsmo noted that City Council is responsible for hiring City employees, with input from City staff. After discussion, motion by Bill Fair, seconded by Warren Smith, to establish new full-time clerical position entitled Data Entry Clerk/Secretary. Motion passed unanimously. 8. Review of Third Quarter Liquor Store Financial Report. City Administrator Wolfsteller and Liquor Store Manager, Joe Hartman, summarized the financial report as follows: Sales for the first three quarters of 1988 were up $46,000 or 5-1/2 percent over the same period last year. The gross profit increased $33,000 or 20 percent over last year's comparable time period, resulting in a gross profit percentage of almost 23 percent. As far as off -sale operations are concerned, a 23 percent gross profit percentage is a reasonable and appropriate percentage for our operation. Net income for the first nine months totaled $84,000 from operations, which is 9.83 percent of sales. Again, this percentage nearing 10 percent is a very adequate return for an off -sale operation realizing that the City of Monticello has to be competitive with surrounding communities and the metropolitan area to attract customers. Usually, the liquor store operations can expect to realize an operational net income of an additional $30,000 to $40,000 during the last quarter of the year, which would put us in the $115,000 to $125,000 per year profit range. If these expectations occur, it would probably give us the best year ever for this operation. After discussion, motion by Warren Smith and seconded by Bill Fair to accept liquor store financial report. Motion passed unanimously. 9. Consideration of Bids on Used Motor Grader. Dan Blonigen began discussion by the grader proposed with the low responded that it will serve our Lil seconded by Fran Fair to approve in the amount of $79,500. Motion 3 asking Public Works Director Simola if bid will satisfy our needs. Simola needs. Motion by Dan Blonigen and the purchase of a CAT 140 from Ziegler passed unanimously. Council Minutes - 11/14/88 10. Consideration of Purchasing NSP Maintenance Building on West County Road 39. City Administrator Wolfsteller outlined the proposal to purchase the NSP maintenance building which neighbors the Monticello Public Works facility. He noted that NSP needs elbow room and will be moving to a location currently owned by the City in the Oakwood Industrial Park area. Public Works Director Simola went on to note the proposed uses of the facility and also outlined the advantages associated with purchasing this facility. Our immediate needs are for a home for the Water and Sanitary Sewer Collection Departments. In addition, the office area could be occupied by the Public Works Director, the Street and Park Superintendent, and the Water and Collection System Superintendent with some slight modifications. This would centralize much of the information regarding city amenities and utilities. This would also enable us to have a faster response time for contractors, developers, and the general public regarding questions and issues involving city services, public works, and utilities. Simola went on to note that this building will serve the needs of the water and sanitary sewer collection system departments for many years into the future. It will not, however, add any immediate additional storage space for the Public Works Department. The only space that would be freed up is that of the existing office of the Public Works Director and Street Superintendent and more than likely would just become cold storage for general operating supplies or become a meeting room heated occasionally. Sometime in the future, possibly the early 1990's, we will be looking at adding on to one of the buildings. NSP's building is situated such that it would be easily added on to the north end. In addition, the pole barn that the City has on the northern extreme area of the site could be added on to the south relatively easily. The existing masonry building for the Public Works Department is less adaptable to additions. In order to add on to the existing public works masonry building to make it efficient, it would be necessary to demolish the existing pole building next to it. It appears to be more cost effective at this time to purchase the NSP property, as it satisfies the immediate need and the needs in the future for the Water and Sewer Collection System Department and allows for the expansion of the Public Works Department on a central site. If someone should come along in the future and offer a large amount of money for the entire complex, the City then again at that time could look at the option of relocating to the industrial park. After discussion, motion made to approve purchase of NSP service facility for the sum of $75,000. Motion seconded by Warren Smith. Motion passed unanimously. 4 Council Minutes - 11/14/88 12. Consideration of Using Tax Increment Financing for the Installation of a Storm Sewer - Construction 5. Staff informed Council that the Monticello Housing and Redevelopment Authority seeks guidance on a proposal to replace a ditch area with a storm sewer utilizing TIF as the major funding source. The land area reclaimed by installing the storm sewer would provide the developer with additional area for parking and will thus allow space for development of a larger structure. Council reviewed the proposal submitted by Construction 5 (Gus and Gary LaFromboise) which includes construction of an 18,180 sq ft office warehouse, the construction of a 13,900 sq ft office warehouse, a 5,600 sq ft mini storage, and an 8,400 sq ft mini storage facility. The two proposed office warehouse facilities include a total of 16 bays which would be leased out to new companies. The proposed plan utilizes the total 3.17 acres of Outlot A, inclusive of the 50 -foot storm sewer (ditch) easement along the easterly boundary of this lot (516.61 feet) . Bill Fair stated that he is not convinced that this is the best use of tax increment financing. Arve Grimsmo concurred and noted that it does not appear that the feasibility of this project depends on the use of TIF. It was the consensus of Council that using TIF for the above stated purpose is not desirable. 13. Consideration of Authorizing Public Works Department to Install Christmas Twinkle Lights Along Broadway. After discussion, motion by Fran Fair and seconded by Warren Smith authorizing Public Works Department to assist with the installation of twinkle lights and extension cords on the trees installed as part of Streetscapes. Voting in favor: Fran Fair, Bill Fair, Warren Smith, Arve Grimsmo. Dan Blonigen opposed. 14. Consideration of awarding logo development contract. Assistant Administrator O'Neill reported progress made by the Logo Development Advisory Committee and informed Council that the Committee has recommended that Henning and Associates be hired to design the new City logo. The new logo design will be based on input from the committee and others. After discussion, motion by Fran Fair and seconded by Warren Smith to award the logo development project to Henning and Associates for an amount not to exceed the sum of $3,650. Motion passed unanimously. 15. Consideration of setting a meeting for the purpose of establishing the 1989 salary wage policy. After discussion, a meeting date was set for 6:30 p.m., November 28, 1988. 5 16. 17. Council Minutes - 11/14/88 Discussion on Participating in a Task Force to Study Public Transportation Needs within Monticello. Duane Gates was present to request that Council consider appointing a staff person and/or a Council member to become a member of a task force studying basic transportation needs within Monticello. Mr. Gates noted that originally a task force was established to investigate the possible needs of elderly transportation services; and he felt that a City representative should also be involved in this subcommittee, as possibly the local governmental unit could be involved in receiving grant funds if available for transportation needs of a community. After discussion, Dan Blonigen volunteered to serve on this task force. Consideration of Fund Transfers for 1988. After discussion, motion by Dan Blonigen and seconded by Fran Fair to approve the following fund transfers: FROM TO PURPOSE AMOUNT 171 G.O. Water 188 Water To close out 24,156.79 Bond Fund Tower Bond surplus balance to new bond fund Capital Outlay Library Fund To eliminate fund $ 71900.00 Fund deficit resulting from unbudgeted heating system renovation in 1986 Liquor Fund Capital Outlay Per 1988 Budget $76,100.00 Interceptor 186 Interceptor To close out $ 9,603.44 Sewer Const. Bond Fund construction fund Fund balance to debt service fund General Fund Park/LCMR To partially $25,350.00 Fund eliminate fund deficit created by previously allocating Public Works Dept. salaries - NSP Ballfield Const. 0 Council Minutes - 11/14/88 Capital Outlay Park/LCMR To eliminate balance $34,000.00 Fund of fund deficit- (estimate) Ballf ield Const. Project to date (concession stand, etc.) Capital Outlay West County To close out $ 1,549.71 Fund Rd. 39 Const. Construction Fund Fund deficit Motion passed unanimously. 18. Consideration of Reimbursing PSG for Equip Stage Digester at Wastewater Treatment Pla ant Rental to Clean Second Public Works Director Simola reviewed his staff report which outlined why rental equipment was needed to successfully clean the second stage digester. Dan Blonigen asked who will clean the unit in the future, and will rental equipment be needed again? John Simola and John Meckis of PSG noted that PSG's operations of the wastewater treatment plant lessen the possibility of such a thick scum layer developing in the future. Hopefully, with proper care and maintenance, the scum layer can be kept to a minimum, and PSG may be able to handle the cleaning of the digester without the rental of expensive equipment. After discussion, motion by Bill Fair and seconded by Dan Blonigen to approve expenditure of $6,941 as reimbursement to PSG for equipment rental to clean second stage digester at wastewater treatment plant. Motion passed unanimously. In other matters, Assistant Administrator O'Neill reported that organizations and individuals have committed almost 2,000 hours of volunteer labor toward the Monticello Celebrate Minnesota Program. He went on to note that the Lion's Club contributed 1,500 hours, Rotary 200, and the remaining generated from individual citizens. There being no further business, meeting was adjourned. )'L�e ,Pg Z 1 Jeff O'Neill Assistant Administrator 7