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City Council Minutes 06-24-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, June 24, 1991 - 7:00 p.m. Members Present: Shirley Anderson, Clint Herbst, Brad Fyle, Ken Maus Members Absent: Dan Blonigen 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 June 10, 1991. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Public Hearing --Delinquent sewer and water accounts. City Council reviewed the status of two delinquent utility billing accounts. Both account holders requested a public hearing with the Council to allow them to explain why they have been unable to pay their account and why the City of Monticello should not disconnect their water service. With regard to the Tom Hass account, Hass informed Council that he would like an exemption from participation in the recycling program because he eats out all the time and he does not produce recyclable waste. Council also reviewed the James Cellette delinquent utility billing account. Mr. Cellette indicated that he inherited the high water bill from the individuals that were previously occupying his home and that he is not able to pay the full amount at this time. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to require that Tom Hass pay the sewer and water portion of the utility bill per the policy for late payment of utility bills and to abate that portion of the utility bill associated with failure to participate in the recycling program. If payment is not forthcoming, the water service should be disconnected immediately. Motion also included that James Cellette pay the utility bill as calculated under the existing policy for payment of delinquent accounts; however, Council elected to waive the 10% service charge and the recycling charge. Motion carried unanimously. Page 1 9M M� Council Minutes - 6/24/91 Consideration of approval of development agreement governing City/developer installed improvements --Briar Oakes Estate Phase I. Assistant City Administrator O'Neill reviewed the development agreement with Council. After discussion, Council elected to table the matter until after consideration of the resolution approving plans and spec's and authorizing advertisement for bids for Briar Oakes Estate, which is item #7 of this Council agenda. Consideration of approval of final plat, Phase I, Briar Oakes Estate. Assistant Administrator O'Neill reviewed modifications made to the preliminary plat, and they were incorporated into the final plat. O'Neill noted that the Army Corps of Engineers had given verbal approval of the phase I grading plan; however, approval is contingent upon the removal of Lot 6, Block 1, as a buildable lot. The Army Corps of Engineers requested that this lot remain as a pond area and not be filled. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the final plat subject to the following: 1) verification of title transfer of Outlot I from Farm Credit to Prestige Builders; 2) City Engineer approval of the grading plan; 3) The development agreement must be executed, with all financial securities provided and approved by the City Attorney; 4) Two copies of the restrictive covenants must be signed; 5) Walkway easement documentation must be prepared and submitted to the City; 6) County surveyor's signature must be on the plat prior to City signatures; 7) If Lot 6, Block 1, is deemed unbuildable by the Army Corps of Engineers, a separate document must be recorded against the lot indicating such. The property associated with the unbuildable lot would then be distributed to Lots 5 and 7, Block 1. Motion carried unanimously. Page 2 Council Minutes - 6/24/91 7. Consideration of a rezoning request to rezone Outlot I, Meadow Oak subdivision, from R -PUD to R-1 zone. Applicant, Prestige Builders of St. Cloud. Assistant Administrator O'Neill informed Council that in order for the Briar Oakes Estate to be developed as proposed, the original PUD zoning designation must be changed to the R-1 zoning designation. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve rezoning Outlot I from PUD to the R-1 zoning designation. Motion was based on the finding that the Briar Oakes subdivision is designed to sufficiently integrate with the adjoining PUD areas in terms of street, sidewalk, and utilities design; the rezoning is consistent with the comprehensive plan, geography, and character of the area; and rezoning will allow development of single family building lots which are in short supply at this time. Motion carried unanimously. SEE AMENDMENT NO. 209A. 8. Public Hearing --Consideration of a resolution approving plans and authorizing advertisement for bids --Briar Oakes Estate, Proiect 91-2. Mayor Maus opened the public hearing. Assistant City Administrator O'Neill, along with City Engineer, Bret Weiss, reviewed the sewer, water, street, and storm sewer improvements associated with phase I of Briar Oakes Estate, Project 91-2. O'Neill noted that the majority of the cost to install public improvements associated with this project are to be assessed against the Briar Oakes Estate plat; however, a portion ($13,500) of the storm sewer cost associated with this project could be distributed to other benefiting properties. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve a resolution approving plans and authorizing advertisement for bids for Briar Oakes Estate, Project 91-2, and to establish a tentative assessment roll for the $13,500 storm sewer improvement connecting the southeast pond to the east pond. The assessment roll incorporates the cost to provide the storm sewer to benefiting township properties and spreads this cost across properties in the city benefiting from the improvement. Under this assessment program, Prestige Builders pays 570 of the total, or $7,700; Outlot J of Farm Credit pays 140 of the total, or $1,900; Outlot L owned by Farm Credit pays 22%, or $2,900; and Page 3 Council Minutes - 6/24/91 Outlot M of Farm Credit pays 7%, or $1,000. Voting in favor: Shirley Anderson, Ken Maus, Clint Herbst. Opposed: Brad Fyle. In voting against the motion, Brad Fyle supported the approval of plans and spec's but did not agree with the formula for distributing the $13,500 storm sewer expense. SEE RESOLUTION 91-19. City Council then addressed the development agreement addressed in agenda item #5. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to adopt the development agreement as submitted by City staff and amended by the City Attorney. In addition, the development agreement should reflect the proposed storm water assessment against the Prestige Builders property as identified in the previous agenda item. Motion carried unanimously. 9. Consideration of a resolution approving plans and authorizing advertisement for bids for Fallon Avenue and Cardinal Hills, Improvement Projects 91-1 and 91-3. Assistant Administrator O'Neill informed Council that the developer provided the City with a letter of credit in an amount equal to the cost to prepare plans and specifications. In turn, the City Engineer completed plans and specifications associated with the Fallon Avenue improvement and phase I of the Cardinal Hills improvement. O'Neill asked Council to consider approving the plans and authorizing advertisement for bids. Prior to Council consideration of the matter, Kevin Schmitz of Prestige Builders and Tom Holthaus and Matt Holker of Value Plus development group indicated that they understand the risk associated with bidding the Value Plus and Cardinal Hills projects together in that if one of the projects drops out, then the bid process for the remaining project will have to start over, which will delay construction time by 45 days. Both developers indicated they understand this risk and are willing to accept it for the sake of obtaining lower bid prices. A motion was made by Shirley Anderson and Seconded by Brad Fyle to adopt a resolution approving plans and authorizing advertisement for bids for Fallon Avenue and Cardinal Hills, Improvement Projects 91-1 and 91-3. Motion carried unanimously. SEE RESOLUTION 91-20. Page 4 Council Minutes - 6/24/91 10. Consideration of accepting the 1991 Audit Report for the City of Monticello. Rick Borden and Kim Lillehaug of Gruys Johnson reviewed the audit report for the City of Monticello. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to accept the 1991 Audit Report as submitted. Motion carried unanimously. 11. Consideration of an offer to exchange land in lieu of delinquent assessments, Outlot A of Country Club Manor. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to offer to release the balance of the assessments against Outlot A if $300,000 of the existing assessment debt is paid to the City. In addition: 1) Four acres of Outlot A must be transferred to the City for use as a storm water retention area; 2) Development of the property is subject to all existing zoning regulations; 3) Any development must meet all City standards, which would include the removal of billboards at such time that development occurs; 4) The offer is good for 30 days; 5) The payment of $300,000 must be in the form of a one-time cash payment. Motion carried unanimously. 12. Consideration of Chamber request for office space. Chamber President, Bob Dawson, and board member, Mary Micke, were present to request that the City assist the Chamber with finding office space for use by the Chamber of Commerce. Mayor Maus outlined a concept for providing the Chamber with space that would be developed by the City then leased back to the Chamber. The location for the Chamber office would be the present museum and restroom space at the southwest corner of Broadway and Highway 25. Maus noted that there are good reasons for reviewing the concept of developing Chamber office space at this site: 1) the present use of the site is as a museum is somewhat under-utilized. It may be possible to combine the exhibits with the Chamber office facility. 2) the existing structure and plantings need updating, and such an update could improve the appearance of the corner. 3) parking is sufficient for the intensity of use expected with operation Page 5 Council Minutes - 6/24/91 of a Chamber office. In terms of financing, Maus noted that the site could be improved/ remodeled by the City and leased to the Chamber of Commerce. Brad Fyle indicated that he would like to see if the senior citizens have a problem with giving up or sharing the museum space. Shirley Anderson noted that she would like more information on how much it would cost to develop the site as proposed. After discussion, it was the consensus of Council to direct City staff to investigate the physical aspects of developing the site and report back to Council with cost estimates. Bob Dawson requested that the City consider allowing the Chamber of Commerce to use space in City Hall for short-term use by the new employee proposed for the Chamber. Brad Fyle indicated that he has no problem in allowing the Chamber of Commerce to use City Hall on a short-term basis if there is a plan for moving the Chamber employee in the near future. After discussion, it was the consensus of Council to allow the Chamber of Commerce to use City Hall office space for use by a Chamber employee for a 90 -day to 120 -day period while plans are being made to find a permanent home for the Chamber office. 13. Consideration of options for parking lot expansion at City Hall. Council reviewed various site plans presented by Council. It was the consensus of Council to select alternative #3; however, plan #3 should be modified by eliminating the alley to the west of the parking lot linking the two drive aisles and through elimination of the island green space in the middle of the parking area. 14. Consideration of a resolution supporting county adoption of local sales tax option. City Administrator, Rick Wolfsteller, reported that the Minnesota State Legislature recently passed a new tax bill for Minnesota which included a sales tax increase from 6% to 6.5% statewide. The additional 1/2% increase in sales tax is effective July 1, 1991, and will automatically expire on December 31, 1991. While the term "option" is included in the Page 6 Council Minutes - 6/24/91 law, in reality each county and municipality in the state stands to lose a lot of local government aid and homestead credit aid if they do not increase the sales tax by 1/2% next year. For the local option sales tax to take effect after December 31, 1991, each county board must decide to impose the tax. Since the City of Monticello does now receive approximately $242,000 in homestead credit reimbursements, the City of Monticello again could stand to lose this type of aid if Wright County does not opt for the sales tax increase. The proposed resolution simply urges the county to adopt the 1/2% local option sales tax. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to approve a resolution urging the county to adopt the 1/2% local option sales tax. Motion carried unanimously. SEE RESOLUTION 91-21. 15. Consideration of speed study for Chelsea Road and approval of the county posting the paved shoulders on County Road 117 near Highway 25 with "no parking." John Simola reported that at the request of a local property owner, the county has looked into consistency of speed zones on County Road 117, Chelsea Road, and County Road 118. The county is also looking at parking problems along County Road 117 and right -shoulder passing along the same road. Simola went on to report that the county engineer suggested that the City contact the Commissioner of Transportation to determine the correct speed zone on Chelsea Road. The City public works department posted this road at 30 mph some years ago due to concerns with the fast traffic in the area. More than likely, the Commissioner of Highways will determine that the speed limit should be above 30 mph, especially in that area of Chelsea east of Fallon to County Road 118. Ken Maus noted that he had no problems with having the Commissioner of Transportation determine the proper posted speed limit for Chelsea between Fallon Avenue and County Road 117. Maus also indicated that we should get the opinion of adjoining property owners prior to placing "no parking" signs on Oakwood Drive in the area of Tom Thumb, Silver Fox Inn, McDonalds, and Hoglund Transportation. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to adopt a resolution requesting that the Commissioner of Highways study the area known as Chelsea Road from County Road 117 to County Road 118 to determine the Page 7 Council Minutes - 6/24/91 proper speed limit and contact property owners adjacent to Oakwood Drive for input regarding placement of "no parking" signs. Motion carried unanimously. SEE RESOLUTION 91-22. 16. Consideration of final payment for Project 90-04, utility improvements and appurtenant work for Sandberg East. John Simola reported that the restoration work on the Sandberg East project is now complete. The contract as bid was $167,986. After adding change order #1 of $2,250, the total contract cost amounted to $170,236. The final quantities with extensions at unit prices show a total value of the work completed at $173,051. To date, the contractor has been paid $157,008, leaving a balance due of $16,043. Simola recommended that the City of Monticello authorize final payment to Annandale Contracting, Inc., for Project 90-04 in the amount of $16,043.49. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve final payment to Annandale Contracting, Inc., of Annandale, Minnesota, in the amount of $16,043.49. Motion carried unanimously. 17. Consideration of purchasing tractor/mower/snowblower for the parks department. John Simola reported that last December the City Council authorized the public works department to rent a 955 John Deere 4 -wheel drive hydrostatic tractor with a 59 -inch 2 -stage snowblower, 72 -inch mower, front -mount sweeper, and cab. The primary function of the unit was to clear sidewalks of snow utilizing the blower and the broom. In addition, we wanted a unit that would also serve as a mower for the City, as we were in need of an additional mower unit. In preparation for the purchase, an amount of $55,000 was placed in the 1991 capital outlay budget for the parks system. Originally, we had proposed a more heavy industrial type of unit for clearing sidewalks. Additional research by City staff and Councilmember Dan Blonigen gave us new direction toward the use of the 955 John Deere. It is proposed that we keep our existing 650 John Deere to serve as a mower and backup snowblower. We have obtained a quote from Scharber & Sons of Rogers, Minnesota, for the purchase of the tractor currently being rented or leased by the City. The purchase price is $14,451. We also have a second quote from Polfus Equipment of Stillwater, and the amount of that quote is $20,902. Page 8 Council Minutes - 6/24/91 After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to authorize purchase of the John Deere 955 4 -wheel drive tractor from Scharber & Sons of Rogers, Minnesota, for $14,451. Motion carried unanimously. 18. Consideration of a proposal for exterior restoration of the new Monticello Fire Station. Building Inspector, Gary Anderson, explained that the new Monticello Fire Station siding is in need of resealing. Anderson went on to review the need for the protective coating and indicated that the firm of Erickson Protective Coatings has quoted a price of $8,489 to apply the protective sealant to the fire station. Clint Herbst indicated that the City should be examining alternative ways to protect the siding. He noted that it is rather expensive to have to apply an expensive protective coating every four years. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the proposal from Erickson Protective Coatings in the amount of $8,489; however, staff is directed to negotiate the best warranty possible on the work completed by Erickson Protective Coatings. Voting in favor: Ken Maus, Brad Fyle, Shirley Anderson. Opposed: Clint Herbst. 19. Consideration of bills for the month of June. After discussion, a motio seconded by Brad Fyle to Motion carried unanimously. 20. Other matters. n was made by Clint Herbst and approve the bills as submitted. Ken Maus suggested that the City make a special effort to recognize the contributions made by Northern States Power toward the well-being and development of the city of Monticello in conjunction with the 20 -year celebration of the operation of the nuclear power plant. Jeff." O'Neill Assistant Administrator Page 9