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City Council Minutes 09-28-1998 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, September 28,1.998 - 7 p.m. Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen Members Absent: None 2. At~t~roval of minutes of ~1~~_re~,ular meeting held Sentember 141199$. Councilmember Roger Carlson requested that the motion for item # 15 be changed to show that he abstained from the vote. A MOT10N WAS MADE BY BRIAN STUMFF AND SECONDED BY BRUCE THIELEN TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD SEPTEMBER 14, 1998, AS AMENDED. Motion carried unanimously. Consideration of adding items to the agenda. 1 A. Consideration of a resolution re ue in xamination of commun't n r financin b Office of the St i r. Rusty Fifield of Ehlers & Associates reported that citizens circulated and submitted to the City Administrator and County Auditor a petition asking the State Auditor to investigate the community center financing. However, the State Auditor cannot receive the petition for 30 days pending verification of names on the petition. Waiting far completion of this process would result in winter ground-breaking, which could increase costs by 5% (approximately $400,000) due to lowered municipal bond rates or an increased interest rate. It was, therefore, suggested that the City adopt a resolution initiating the audit immediately in order to maintain the construction time table and preserve the current interest rate. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY GLINT HERBST TO ADOPT THE RESOLUTION REQUESTING EXAMINATION OF COMMUNITY CENTER FINANCING BY T.HE OFFICE OF THE STATE AUDITOR. Motion carried unanimously. SEE RESOLUTION 98-40. 4. Citizens comments/ etitions re d com Taints. None. Page 1 Council Minutes - 9/28/98 5. Consent agenda. City staff recommended that item SC be removed from the consent agenda for discussion. A. Consider tin f a intin additional election ' es for the General El i n. Recommendation: Appoint the following residents as additional election judges for the 1998 General Election: Sandy Suchy Mary Daniels Elaine Nelson Nicole Shepperson (trainee judge) B. onsideration of annual sidewalk in ction re ort. Recommendation: Accept the 1998 Annual Sidewalk lnspection Report, along with the recommendation for immediate repair of trouble spots and notification to property owners of tree maintenance required. G Cons' i n f acce tin bids and awar in contract on Hillsi emeter fence, Project 98-22C. Removed from the consent agenda for discussion. D. C nsid i n of ado tin a resolution a r vin submittal of a R develo meat r A lication to Minnesota Tra Economic Devel meat. Recommendation: Adopt a resolution supporting submittal of a Redevelopment Grant Application to the Minnesota Trade and Economic Development. SEE RESOLUTION 98-41. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO APPROVE ITEMS SA, SB, AND SD OF THE CONSENT AGENDA AS RECOMMENDED. Motion carried unanimously. 6. Consideration of ite r moved from the conse nda for discussion. SC. n i eration of acce tin bids awardin contrac n Hillside Cemete fence, Project 98-22C. Public Works Director John Simola reported that the plans and specifications for the Hillside Cemetery fencing, including three 15-ft gates, were based on three basic concepts: 1) solid wrought iron with tubular square steel posts with an option for galvanizing prior to painting; 2) tubular square steel fencing and posts, galvanized and painted; and 3) aluminum tubular square steel fencing and posts, painted. Page 2 Council Minutes - 9/28/98 Bids were received on September 25, 1998, with the lowest bid from Town & Country Fence of Brooklyn Park for aluminum fencing without decorative finials for a total of $48,227. Additional bids were received for wrought iron fencing without finials for $55,930.58 and an aluminum fence with brass decorative finials for $59,155.51. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO AWARD THE HILLSIDE CEMETERY ORNAMENTAL FENCING PR07ECT TO TOWN & COUNTRY FENCE BASED UPON THEIR PROPOSAL FOR ALUMINUM FENCING AT A LUMP SUM COST OF $48,227. Motion carried unanimously. 7. Public Hearin --Con i r ti n of resolution a rovin 1 sands ecifications an authorizin adv i m nt for bids -Wildwood R' ubdivision. City Engineer Bret Weiss reported that the proposed project includes extension of sanitary sewer, water main, and storm sewer improvements for the Wildwood Ridge subdivision and would also serve the Ralph Hermes property and the proposed Rolling Woods subdivision. According to the development agreement, the Wildwood Ridge developer would pay at least one-third of all costs identified; however, the Hermes and Rolling Woods parcels would not be assessed for their portion of the cost until they were annexed to the city. Council discussed interest accrual for the properties not assessed at this time. City Attorney Dennis Dalen noted that the City cannot charge more than the actual cost of the project; however, he would research whether the City can assess the interest amount paid by the City prior to annexation. Mayor Fair opened the public hearing. Ralph Hermes stated that he still has a contract with Orrin Thompson Homes for purchase of his property but did not know what their intent was at this time. He requested that the City provide him with a statement in writing that his property would not be assessed at this time and what the future assessment would include. There being no further public comment, the Mayor closed the public hearing. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY ROGER CARLSON TO ADOPT A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR EXTENSION OF UTCLITIES TO THE WILDWOOD RIDGE SUBDIVISION. Motion carried unanimously. SEE RESOLUTION 98-42. Page 3 Council Minutes - 9/28/98 8. n iderati n f c unteroffer for the urchase of the i hall ro ert and ad'acent lots and consideration of a separate offer for the purchase of vacant lots. City Administrator Rick Wolfsteller reported that at the previous meeting, Arve and Jean Grimsmo offered $450,000 for the purchase of city hall and all City-owned parcels within the same block, to which the Council then made a counteroffer of $477,500. Following that Council meeting, Mr. Bob Mosford expressed an interest in finding a suitable site for construction of an office/professional building and inquired as to whether the lots on Third Street were for sale and what the City's asking price might be. Once Mr. Grimsmo rejected the City's counter proposal and presented an additional counteroffer of $463,250, Mr. Mosford was notified that the City's counteroffer had been rejected. As a result, Mr. Mosford presented a purchase agreement far the two lots on Third Street far a price of $62,000. Deputy City Administrator Jeff O'Neill added that Arve Grimsmo has indicated that he would be willing to purchase the city hall property without the lots on Third Street for $400,000. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRIAN STUMPF TO ACCEPT BOB MOSFORD'S OFFER OF $62,000 FOR THE TWO LOTS ON THIRD STREET CONTINGENT ON THE COMMUNITY CENTER PROJECT MOVING FORWARD. Motion carried unanimously. A MOTION WAS MADE .BY BRUCE THIELEN AND SECONDED BY BILL FAIR TU OFFER THE CITY HALL PROPERTY FOR SALE TO ARVE GRIMSMO AT A PRICE OF $400,000 CONTINGENT ON THE COMMUNITY CENTER PROJECT MOVING FORWARD. Voting in favor: Bruce Thielen, Bill Fair, Brian Stumpf. Opposed: Clint Herbst. Abstaining: Roger Carlson. Motion carried. 9. Review of bids and c i r i n f award for fire h 11 kin lot im rovements. Public Works Director John Simola reported that the plans and specifications for the fire hall parking lot improvements did not include additional lighting or outside outlet as requested by the fire department; therefore, City staff is working with NSP and local electrical contractors to complete this portion of the work. In addition, the extension and relocation of the sprinkler system would be performed by City personnel. Three bids were received at 10 a.m., with the lowest bidder being Bauerly Brothers of Sauk Rapids, MN, in the amount of $35,611.20. Although the prices were somewhat higher than anticipated, which was felt to be partly due to the time of year and having to wait for the sewer realignment project to be substantially completed prior to completing the east portion of the ire hall parking lot, the City Engineer recommended that the project be awarded to Bauerly Brothers. Fage 4 Council Minutes - 9/28/98 A MOT10N WAS MADE BY BRUCE THIELEN AND SECONDED BY GLINT HERBST TO ACCEPT THE BIDS AND AWARD THE CONTRACT FOR FIRE HALL PARKING LOT IMPROVEMENTS TO BAUERLY BROTHERS IN THE AMOUNT OF $35,611.20. Motion carried unanimously. 10. Consideration of a rovin urchase of Burlin t n N rthern ro ert in the ar f he carnmunity center site. City Attorney Dennis Dalen reported that one of the major issues regarding purchase of the Burlington Northern property was mortgages; however, Burlington Northern agreed to indemnify the City, which the title company indicated that they would accept. The purchase agreement also states that the Railroad would give the City a quit claim deed but would not give any evidence of title. If the City chose to assure itself of title, Wright Title Guaranty Company indicated that a $9.5 million policy would cost $8,950 plus a $12S fee per parcel far title search. The title company also advised that the National Guard be named as an additional insured. With regard to environmental issues, because the summary of the soils report indicated there was na major problem, the City Attorney recommended that the City purchase the property rather than acquire it through condemnation since it would be less expensive. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO APPROVE THE PURCHASE AGREEMENT WITH BURLINGTON NORTHERN, INCLUDING THE ADDENDUM. Motion carried unanimously. 11. Consideration to discuss a h rization to roceed w'th interest to ac uire the ro e located at 225 Front Street. Economic Development Director Ollie Korapchak reported that the HRA elected not to accept the counteroffer of $179,500 for purchase of property located at 22S Front Street due to high price and lack of funds. At its September 17 meeting, the Parks Commission indicated it is interested in purchasing river property; however, due to lack of funds, they recommended that the HRA and/or City continue the process of purchasing the property. Koropchak suggested that Council could also consider budgeting in the future for purchase of river property or present a right of first refusal to the owners. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY CL1NT HERBST TO OFFER THE OWNERS OF 225 FRONT STREET $500 FOR THE RIGHT OF FIRST REFUSAL. IF THE OFFER IS NOT ACCEPTED, STAFF WAS DIRECTED TO RETURN THE ITEM TO THE CITY COUNCIL. Motion carried unanimously. Page 5 Council Minutes - 9/28/98 12. Consideration of maki r rchase vacant land a ~ nt t ublic works facility. City Administrator Rick Wolfsteller reported that Tam Brennan of Edina Realty inquired as to whether the City was interested in purchasing a vacant 1-acre parcel adjacent to the City's 1.4-acre parcel on County Road 39 West, which is across the street from the public works facility. The current asking price is $65,000; however, the real estate agent indicated the estate would consider offers. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY CLINT HERBST TO OFFER $45,000 FOR THE VACANT LOT ON WEST COUNTY ROAD 39. Motion carried unanimously. 13. Con id r i n f rchase of 4 acres on the Monte 1 Hill near the water t r f r park purposes. Public Works Director John Simola reported that at the September 14 Council meeting, staff was directed to negotiate the possible purchase of 4 acres from Kenny Schultz on the Monte Club hill near the City's water tower for park land. This property would create a centralized park for the area, and the Parks Commission recommended unanimously that the City purchase the property. Mr. Schultz indicated the minimum purchase price for the property would be $16,500 per acre for a total of $66,000 far the 4 acres, with payments spread out over amutually-agreed period of time. The purchase would be funded from park dedication funds from River Forest and Wildwood Ridge, with the balance coming from reserves until such time they are replaced with future dedication funds. Councilmember Clint Herbst stated that he felt this property was better suited for development of houses and that there was already an enormous amount of park land in the city. Councilmember Bruce Thielen responded that the City may never have the opportunity to obtain this type of land again and that it should be preserved for future generations. In addition, a major portion of the cost could be funded immediately through park dedication fees obtained from recent developnnents. Councilmember Carlson added that when researched in the past, Monticella's amount of park land was not excessive and was comparable to the national standards. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BILL FAIR TO PURCHASE 4 ACRES FROM MR. SCHULTZ FOR $66,000 USING PARK DEDICATION FUNDS AND RESERVE FUNDS UNTIL REPLACED WITH FUTURE PARK DEDICATION FEES. Voting in favor: Bruce Thielen, Bill Fair, Roger Carlson. Opposed: Clint Herbst, Brian Stumpf. Motion carried. Page 6 Council Minutes - 9/28/98 14. Consideration of ordinance amendmex~t_in r hard to garbage/refuse service r t At the July27 meeting, the City Council approved changes to the garbage and recycling program whereby the City would no longer track recyclables, provide free recycling services to all residential property, and begin charging commercial residential property, such as apartment buildings 4-plex and above and mobile home parks, for garbage services. Staff established the following rates for garbage collection effective January 1, 1999: Per unit per month Ar~artment Units: 4-plex & above (incl taxes) $6.85 Mobile Home Parks: 60-gallon roll-around cart (incl taxes) $6.94 90-gallon roll-around cart (incl taxes) $8.43 The proposed ordinance would maintain organized collection and continue to provide recycling service free for all residential property. A MOTION WAS MADE BY BRIAN STUMPI~ AND SECONDED BY BRUCE THIELEN TO APPROVE THE ORDINANCE AMENDMENT PERTAINING TO GARBAGE/REFUSE SERVICE RATES; SET THE RATES BEGINNING JANUARY 1, 1999, >~OR COMMERCIAL RESIDENTIAL PROPERTY AS FOLLOWS: PER UNIT PER MONTH APARTMENT UNITS: 4-FLEX & ABOVE (INCL TAXES) $6.85 MOBILE HOME PARKS: 60-GALLON ROLL-AROUND CART (trrcl. TAxES) $6.94 90-GALLON ROLL-AROUND CART (INCL TAXES) $8.43 AND APPROVE THE NEW RECYCLING POLICY AS DRAFTED. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 317. 15. Review of ro orals for the del' r and installation of a new 1 round unit for Ellison Park and award of contract. City Administrator Rick Wolfsteller reported that he was concerned about the recommendation from the Parks Commission to purchase playground equipment from a company that did not submit the lowest bid. Since there was a question as to whether the specifications were adequate to allow making a determination that the lowest bid didn't meet the specifications, the City Administrator requested that the City Attorney give his opinion. Page 7 Council Minutes - 9/28/98 0 Fark Superintendent Greg Engle explained that the criteria used for selection of the playground unit was that the structure must coordinate with the park theme of water or river as well as the existing park's surrounding environment. Four proposals were received on September 22 fox delivery and installation of a new playground unit for Ellison Park. Although Bob Klein & Associates submitted the lowest proposal at $30,031.15, the Forks Commission and Park Superintendent recommended contracting with Minnesota Wisconsin Playground, Inc., whose bid amount was $35,000 for Game Tirne equipment. This unit was preferred for its unique ship design, appearance, and proven method of installation of the fiber system with drainage barriers. The design from the low bidder was not favored due to a high tower that would take away from the appearance afthe nearby lag shelter, it didn't appear to have the creativity for the younger age group of 2-5 years, and the proposal didn't include a clear description of the installation of the play surface. City Attorney Dennis Dalen stated that the two issues that needed to be determined were bid responsive to the specifications and responsible bidder. if the materials bid varied from the specifications, the bid can be rejected. If not, the Council can either accept the low bid or reject all bids, amend the specifications, and rebid the project. Since it was difficult to determine that there was a material variance, the City Attorney recommended that the Council reject the bids and rewrite the specifications. However, the Park Superintendent noted that he preferred to complete the project within the 1998 budget. AFTER DISCUSSION, A MOTION WAS MADE BY GLINT HERBST AND SECONDED BY BRIAN S'T'UMPF TO ACCEPT THE BIDS AND AWARD THE CONTRACT TO THE LOW BIDDER, BOB KLEIN & ASSOCIATES, IN THE AMOUNT OF $30,031.1 S. Motion carried unanimously. 1 ~. Consideration of bills for the last half of September. A MOTION WAS MADE BY ROGER CARLSON AND SECONDED BY GLINT HERBST TO APPROVE THE BILLS FOR THE LAST HALF OF SEPTEMBER AS PRESENTED. Motion carried unanimously. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO ADJOURN. Motion carried unanimously. Kare oty Deputy City Clerk Page 8