City Council Resolution 1999-01RESOLUTION 99-1
RESOLUTION SUPPORTING ESTABLISHMENT OF A
CITY COUNCIL SUBCOMMITTEE TO PREPARE A
SURVEY TO IDENTIFY CITIZEN SUPPORT OR NONSUPPORT
OF THE AQUATICS CENTER, WHEEL PARK, CLIMBING WALL,
AND CHILDREN'S PLAY AREA,
AND TO PLACE ON HOLD DEVELOPMENT OF THESE
COMMUNITY CENTER FEATURES
UNTIL THE RESULTS OF THE SURVEY ARE KNOWN
WHEREAS, establishment of a fixed, defineable cost of stopping the project is impossible to
determine until after litigation/arbitration, which could take many months after the action to stop
the project; and
WHEREAS, the Contractor's Attorney has issued a report estimating City liability for stopping
the project for City convenience at $5,000,000, more or less. This cost, along with other claims
and investments in the site, will result in an estimated financial loss ranging from. $6 million to
$8.3 million according to the City Attorney and Architect; and
WHEREAS, there is no provision within the law that applies to this case that enables a
referendum except for issuance of General Obligation Bonds; and
WHEREAS, if the project is placed on hold for a referendum for issuance of General Obligation
Bonds, the estimated earliest that a referendum could be held is 55 days from January 19, 1999.
The cost to place the project on hold for this duration could exceed $900,000; and
WHEREAS, it is important and possible to obtain public input on major portions of the
community center such as aquatics, wheel park, and climbing wall, and delaying these items will
not interfere with fulfillment of City contractual obligations with the National Guard, Arve
Grimsmo, or the Contractor; and
WHEREAS, Monticello City Hall has been sold and all contingencies satisfied which, according
to the City Attorney, could result in a court-ordered eviction or relocation of city hall or, at a
minimum, payment of damages associated with development of a funeral chapel at an alternative
location; and
WHEREAS, stopping the project would result in a breach of contract with the National Guard,
which has relied on the City through the agreement to provide facilities necessary to maintain
readiness. Breach of contract would result in repayment of $1.5 million plus interest and
potential for payment of additional damages; and
WHEREAS, a strategy for financing repayment of the debt will likely require payment via City
reserves. This, along with the breach of contract, will, according to the City's Bond Consultants,
result in downgrading of the City's bond rating, which would result in payment of higher interest
rates on future city projects; and
Resolution 99-1
Page 2
WHEREAS, the potential costs of delay, stopping, or killing this project are exorbitant and such
action would be fiscally irresponsible; and
WHEREAS, the turmoil caused by the continued deliberation, discussion, and debate would have
a serious detrimental effect on the morale of the community as a whole and, therefore, it is better
to go ahead with the project now following a logical and practical course of action.
NOW, THEREFORE, LET IT HEREBY BE RESOLVED:
1. The Monticello City Council hereby forms a City Council Subcommittee for the
purpose of developing a scientific survey to determine public support for items
such as aquatics, wheel park, and climbing wall for the community center.
2. Mayor Belsaas and Councilmember Thielen are hereby appointed to the
subcommittee.
3. Questions on the survey shall be developed by an independent third party with
input from the subcommittee. The survey questions as well as final survey results
shall be reviewed by the full City Council.
4. Construction of the aquatics, wheel park, and climbing wall shall be placed on
hold until further action of the City Council.
Adopted this 19th day of January, 1999.
Ma or
ATTEST:
Dep ity Administrator
for the City Administrator