City Council Minutes 06-10-1991MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, June 10, 1991 - 7:00 p.m.
Members Present: Shirley Anderson, Dan Blonigen, Clint Herbst,
Brad Fyle, Ken Maus
Members Absent: None
2. Approval of minutes.
After discussion, a motion was made by Shirley Anderson and
seconded by Brad Fyle to approve the minutes of the regular
meeting held May 28, 1991. Motion carried unanimously.
3. Citizens comments/petitions, requests, and complaints.
Jim Jones and Steve Lindberg, residents of 331 East Third
Street, submitted a petition signed by 25 residents of the
neighborhood noting concerns over the neglect and
deterioration of property located at 331 East Third Street in
Monticello. The petition requested that the City use whatever
authority it has to handle the matter in the appropriate way.
Administrator Wolfsteller noted that the City is considering
adopting an ordinance which would provide for the licensing of
rental properties. Under this ordinance, the City would have
the authority to withhold a license to operate an apartment
building if basic health and safety and other building code
violations are not corrected. It was the consensus of Council
to direct staff to research the problem further and determine
to what extent the City has authority to act to resolve the
problems noted by the residents.
4. Public hearing and consideration of approving a resolution for
modification of Redevelopment Project Plan for Tax Increment
Finance District Plans No. 1-1 through 1-11 and for
establishment of Tax Increment Finance District 1-12 and
adoption of the Tax Increment Plan relating thereto.
The public hearing was opened by Mayor Maus, at which time
011ie Koropchak reviewed the tax increment financing plan
associated with the development of the Aroplax Corporation
development site. Koropchak noted that Aroplax is a plastic
injection molding, tooling, and engineering company that has
been in business for 40 years. The Aroplax development calls
for construction of a 22,400 sq ft concrete facility in
Oakwood Industrial Park. Approximately 20 jobs will be
created, which will consist of both high and medium skilled
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Council Minutes - 6/10/91
workers. Salaries for the workers will range
from
$6 o
per hour. There being no comments, the p g was
closed.
A motion was made by Shirley Anderson andTIF conded bor Brad
TIF
Fyle to adopt a resolution modifying the plans
District Nos. 1-1 through 1-12 and establishing TIF District
1-12 and adopt the TIF plan relating to the Aroplax
development. Motion carried unanimously.
SEE RESOLUTION 91-15.
5. Consideration of a preliminary plat request of Outlot I,
Meadow Oak subdivision, to be entitled Briar Oakes Estate.
Applicant, Prestige Builders of St. Cloud.
Assistant Administrator O'Neill noted that on June 61 1991,
the Planning Commission conducted a public hearing, reviewed
the preliminary plat, and recommended Council approval of the
plat subject to a number of conditions. O'Neill went on to
note that the plat is consistent with the City ordinance in
terms of lot configuration, park and trail development, and
street system development. O'Neill recommended that Council
approve the preliminary plat but withhold final plat approval
pending completion of certain tasks.
City Engineer, Bret Weiss, reviewed the feasibility study for
installation of sewer, water, streets, and storm sewer
systems. As part of his review, he outlined problems
associated with the inability of the City to outlet water to
ditch 33.
Ken Maus reviewed action taken by the City in the early 1980's
to block the outlet of water from the Meadow Oak development
to ditch 33. Maus reported that the Meadow Oak development
storm drainage system was designed to outlet the same amount
of water as was outlet from the area prior to development. He
went on to note that we need to work with the county on
possible improvement of ditch 33 or possibly create our own
outlet to the river and develop an assessment plan to pay for
it.
After discussion, a motion was made by Brad Fyle and seconded
by Shirley Anderson to approve the preliminary plat of Briar
Oakes Estate and table final plat approval until such time
that the following actions are taken:
1. City Engineer approval of the drainage plan.
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2. Army Corps of Engineers' approval of grading and
drainage plan.
3. Eliminate the block overlap that shows the same
block in two separate phases of construction.
4. Preparation of a separate document identifying
walkway easement areas.
5. Restrictive covenants must be signed and recorded
with the final plat.
6. Signing of the final plat is subject to execution
of development agreement.
6. Consideration of rezoning request to rezone Outlot I, Meadow
Oak subdivision, from R -PUD to R-1 zone. Applicant, Prestige
Builders of St. Cloud.
Assistant Administrator, Jeff O'Neill, recommended that this
item be tabled until the final plat of Briar Oakes Estate is
ready for consideration by Council.
After discussion, a motion was made by Shirley Anderson and
seconded by Clint Herbst to table consideration of the
rezoning request to rezone Outlot I, Meadow Oak subdivision,
from R -PUD to R-1 zone. Motion carried unanimously.
7. Consideration of resolution accepting petition ordering
feasibility report, accepting feasibility report, calling for
a public hearing, and ordering plans and specifications for
Project 91-2 (Briar Oakes Estate).
Assistant Administrator O'Neill asked Council to consider
passing a resolution which would initiate the process of
installing public improvements associated with Briar Oakes
Estate development.
Kevin Schmitz of Prestige Builders was present to review the
feasibility study with the City Engineer and Council.
After discussion, a motion was made by Shirley Anderson and
seconded by Dan Blonigen to approve the resolution accepting
the petition, ordering the feasibility report, accepting the
feasibility report, calling for a public hearing, and ordering
plans and specifications contingent on delivery of a $20,000
plan preparation deposit by Prestige Builders to the City of
Monticello. Motion carried unanimously.
SEE RESOLUTION 91-16.
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8. Consideration of approval of development agreement governing
city/developer installed improvements --Briar Oakes Estate
Phase I.
Assistant Administrator O'Neill reviewed the proposed
development agreement governing city/developer installed
improvements for the Briar Oakes Estate phase I development.
After discussion, it was the consensus of Council to table
this matter until such time that the final plat is prepared
and ready for approval. Various aspects of the development
agreement were discussed. O'Neill reviewed the arrangement
for providing the City with the financial security
guaranteeing that the assessments will be paid. O'Neill noted
that the development agreement requires that the developer
post an irrevocable letter of credit in the amount of 40% of
the project cost. In addition, the developer will agree to
pay 1.5 times the cost per lot to pay off the assessment for
each lot that is sold. O'Neill noted that under this formula,
the unsecured portion of the assessment debt will be paid
after 11 of the 28 lots are sold.
It was the consensus of Council that the arrangement
guaranteeing payment of assessments as outlined in the
agreement is adequate.
9. Consideration of declaring the City of Monticello as the
responsible governing unit accepting environmental assessment
worksheet and ordering publication of the EAW associated with
the proposed Cardinal Hills residential subdivision.
Having reviewed the EAW submitted by OSM and after discussion,
a motion was made by Shirley Anderson and seconded by Brad
Fyle to declare the City of Monticello as the responsible
governing unit, accept the EAW, and order the EAW publication
associated with the Cardinal Hills residential subdivision.
Motion carried unanimously.
10. Consideration of resolution accepting feasibility report,
calling for a public hearing on improvements, and ordering
plans and specifications for Project 91-31 Fallon Avenue and
Cardinal Hills.
Assistant Administrator O'Neill requested that the City
Council consider adopting a resolution which would initiate
the sewer and water utilities installation process for
utilities to be installed along Fallon Avenue. The resolution
would also include initiation of installation of utilities
associated with phase I of the Cardinal Hills residential
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Council Minutes - 6/10/91
subdivision. O'Neill noted that the developers of the
Cardinal Hills subdivision are willing to deposit the funds
necessary to prepare plans and specifications. O'Neill went
on to note that developing plans and specifications associated
with phase I of Cardinal Hills does have some degree of risk
for the developers, as the preliminary plat and final plat are
not approved at this time, and the development agreement is
not in place. Despite the risk of development of plans that
might not be entirely used, the developers are willing to go
ahead with plan preparation and provide the City with the
financial security in the form of a letter of credit. The
letter of credit can be drawn down by the City to pay for plan
preparation in the event the project does not proceed.
After discussion, a motion was made by Shirley Anderson and
seconded by Brad Fyle to approve a resolution accepting the
feasibility report, calling for a public hearing, and ordering
plans and specifications for Project 91-31 Fallon Avenue and
Cardinal Hills, subject to submittal of a letter of credit to
the City by Value Plus developers in the amount of $20,000.
Motion carried unanimously.
SEE RESOLUTION 91-17.
11. Consideration of adopting a resolution requesting the City of
Monticello to hold Lots 1, 2, 3, 41 5 , and 6, Block 1, Oakwood
Industrial Park Second Addition, for the H -Window Company.
Economic Development Director, 011ie Koropchak, noted that the
H -Window Company sees the next 1 to 1-1/2 years as their
growth period, which will be the major determinant in a
decision on whether or not to expand in Monticello. If they
do expand in Monticello, the company's potential size would
double, and the facility would require purchasing an
additional $500,000 to $1,000,000 worth of equipment. Total
employment would amount to 50-60 people. Koropchak noted that
in order to expand, the H -Window Company needs to have
available to it Lots 1, 2, 3, 4, 5, and 6, Block 1, Oakwood
Industrial Park Second Addition. Presently this land is owned
by the City. The H -Window Company requests that the City keep
this land available for potential use by the
H -Window Company.
Ken Maus noted that the lots that the City would be holding
have been for sale for some time and have not generated any
real interest by potential industrial prospects; therefore,
the City has little to lose by keeping the entire area
available for the H -Window Company.
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Council Minutes - 6/10/91
Dan Blonigen agreed that it makes sense to keep the lots
available for the H -Window Company in the event they need to
expand. There is little potential for loss and a good chance
that all lots could be purchased by the H -Window Company at
such time that they elect to expand.
A motion was made by Shirley Anderson and seconded by Dan
Blonigen to adopt a resolution holding Lots 1, 21 31 41 5, and
6, Block 1, Oakwood Industrial Park Second Addition, for the
H -Window Company for a period through December 1992. Motion
carried unanimously. SEE RESOLUTION 91-18.
12. Consideration of an offer to exchange land in lieu of the
delinquent assessments--Outlot A of Country Club Manor.
Administrator Wolfsteller reviewed previous Council action on
this matter and outlined a new proposal which called for
exchanging land in lieu of delinquent assessments.
Wolfsteller noted that the partnership owns 2-1/2 acres along
County Road 75 between the Gille Auto Sales lot and the
Pinewood Playground area. They are proposing to trade the
2-1/2 acres they own to the City in exchange for approximately
10 acres of Outlot A property, with the City retaining
approximately 6 acres of Outlot A for future storm ponding
needs. In return, they are requesting that all assessments be
waived, they be allowed to keep the existing signs located on
the property, and they be immune from any sewer and water
hookup charges and immune from future storm sewer assessments.
As part of the exchange, they would have no plans to change
the zoning, which is currently R-3. Future development would
limit access to the future collector road.
Dan Blonigen noted that he did not see that there was any
benefit to the City, and he suggested that negotiations be
terminated. It was his view that once the City obtains the
property through the tax delinquency process, things will fall
into place.
Ken Maus noted that it may be true that the City will
ultimately obtain this property; however, we will still have
to sell it at that time, which means we will be in the same
position one year down the road.
Brad Fyle noted that he was against the land swap. He would
prefer looking at a reduced assessment rather than an exchange
of land in lieu of cash.
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Council Minutes - 6/10/91
Brad Larson was in attendance and noted that a storm water
pond could be created in the area with this proposal. The
proposal provides a potential for assisting with the
redevelopment of the Gille property.
After discussion, it was the general consensus of Council to
take the following action prior to making a decision:
1. Obtain Housing and Redevelopment Authority reaction
to the overall proposal and determine to what
extent it is important that the City obtain the
West Prairie Partnership property next to the Gille
property.
2. Determine how valuable the storm water ponding area
at this location is to the City.
3. Determine what assistance from the state is
available to help determine the extent of pollution
at the Gille property and to help finance cleanup
activities.
13. Review current status regarding delinquent utility accounts
and payment policy.
Administrator Wolfsteller reported that with utilization of
the computer system, the City now has greater ability to
monitor the status of delinquent sewer and water accounts and
has established a policy of sending reminder notices to
delinquent accounts on a pre -determined schedule.
Administrator Wolfsteller noted that at least 75 accounts are
delinquent, all of which have received warning notices that
their water could be shut off if they do not pay their sewer
and water bill. Wolfsteller went on to request Council to
consider development of a policy regarding partial payment of
utility accounts.
Ken Maus noted that if the City is going to be shutting off
water, it would make sense to shut off water to those accounts
that have been delinquent for the longest period of time.
After discussion, it was the consensus of Council to begin
shutting off water to the 75 delinquent accounts. It was the
consensus of Council to require individuals that have a
problem in paying their utility bill to come before Council to
explain the situation. In addition, an alternative plan for
making partial payments of delinquent utility accounts was
also reviewed and approved by consensus.
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14. Consideration of re -bids for emergency generator for water and
sewer collection department.
John Simola reported that at the last meeting the City Council
reviewed bids for the purchase of a portable trailer -mounted
125 kW generator to be used for powering well #3 or two
booster pumps at the reservoir and various lift stations. Two
bids were received, one from Catepillar in the amount of
$42,759 and one from Cummins Diesel in the amount of $41,876.
The budget for this item was estimated at $35,000. Simola
reported that the re -bids did come in on Monday and that the
low bid is less than the low bid associated with the original
bidding process. Low bid was submitted by Flaherty Equipment
Corporation at $33,925.
Dan Blonigen requested that the City scrutinize the bid
submitted by the low bidder to make sure that the bid is in
compliance with specifications.
After discussion, a motion was made by Brad Fyle and seconded
by Clint Herbst to purchase the 125 kW portable powered
generator from Flaherty Equipment Corporation in the amount of
$33,925 subject to the bid being in compliance with the bid
specifications. Motion carried unanimously.
15. Consideration of ordering signal justification study for the
intersection of County State Aid Highway East 75, 39, and 118.
John Simola reported that the County Board acted to direct the
county engineer to sign a signal justification study and
forward it to the state aid office in St. Paul for review
subject to the following conditions.
The f irst condition is that the City take the lead and use its
engineer to put together the signal justification study. This
study puts together all the available information regarding
the intersection and forms a rationale justifying that a
signal is needed at this location.
Since this particular intersection has not met the state aid
warrants due to traffic volumes, the county does not wish to
take the risk that the signal justification study will be
denied by the office of state aid. Therefore, they requested
that the City conduct the study. Simola reported that the
cost to do the study would be $2,950. If the signal
justification study is successful, this would be considered as
part of the overall fee for engineering on the project. In
addition, there appear to be enough indications that the
signal justification study will be successful. If it is not,
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Council Minutes - 6/10/91
a portion of the background work and much of it could be
utilized during the next justification study.
Finally, Simola went on to recommend that the City go ahead
and direct the City Engineer to complete the study. There
have been too many close calls at the intersection to wait any
longer for the county to move on the signal; therefore, Simola
recommended that this justification study be authorized.
After discussion, a motion was made by Brad Fyle and seconded
by Shirley Anderson to authorize the study. Motion carried
unanimously.
16. Consideration of approving gambling license renewal --VFW Club.
The City Council reviewed the application and took no action
to deny the renewal; therefore, the application is approved.
17. Consideration of approving gambling license renewal --American
Legion Club.
The City Council reviewed the application and took no action
to deny the renewal; therefore, the application is approved.
18. Consideration of appointing a fifth individual to the parks
commission.
Assistant Administrator O'Neill reminded Council that a
vacancy remains on the parks commission. Roger Carlson has
stepped forward to volunteer to fill the remaining vacant
position on the parks commission. He went on to review
Carlson's background as outlined in his application.
A motion was made by Shirley Anderson and seconded by Brad
Fyle to appoint Roger Carlson to the parks commission. Motion
carried unanimously.
There being no further discussion, the meeting was adjourned.
Go�e II/L —
1
ef y'O' Nei 11
Assistant Administrator
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