City Council Agenda Packet 11-27-2000
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AGENDA
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 27,2000 - 7 p.m.
Mayor: Roger Belsaas
Council Memhcrs: Clint Herbst. Brian Stumpf. Roger Carlson. Bruce Thielen
1. Call to ordcr.
2A. Approve minutes of November 13.2000 regular council meeting.
B. Approve minutes of workshop on November 16.2000.
3. Considcration of adding items to the agenda.
A.
B.
C.
4. Citizens comments/petitions. requests. and complaints.
5. Consent agenda.
A.
Consideration to approve amendments to EDA-GMEF Business Subsidy Criteria.
B.
Considcration of approving linal payment on Bridge Park Improvements. Lift
Station. Sanitary Scwer and Appurtenant Work - Project 98-15C- Barbarossa.
C. Considcration to approve the appointment of a nominec flW DA T mcmbership.
D. Consideration to approve the ratification of the amendment to EDA-GMEF Loa
No. 010 (Blue Chip Development Company).
E. Consideration of accepting River Forest Improvements - Phase I.
F. Consideration of approving new hires and departures for the Community Center.
Consideration of items removed from the consent agenda for discussion.
Consideration of review of pawn shop ordinance
Consideration of adoption of assessment roll for CSAH 75 Project No. 98-17C.
Consideration of parcels removed from assessment rolls f(Jr further review and adoption
of supplemcntal assessments.
Considcration of design options CSAH 75 (Washington St. to Otter Creek)
Approve payment of bills for November.
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12.
Closed Session - Discussion of settlement options regarding Hwy 25 land condemnation
Issues.
] 3. Adjourn
2nd page of agenda
City of Monticello
Novemeber 27,2000
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MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 13,2000 - 7 p.m.
Mcmbcrs Present:
Roger Bclsaas. Rogcr Carlson, Clintllerbst and Bruce Thielen.
Menlbers Absent:
Brian Stumpf
Mayor Bclsaas called the meeting to order at 7:05 p.m. and declarcd a quorum prescnt.
2A. A rove minutes of October 23 2000 reuular council mectinu.
BRUCE TI /JELEN MOVED TO APPROVE THE MINUTES OF THE OCTOBER 23, 2000
REGULAR COUNCIL MEETING AS PRESENTED. CLINT HERBST SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSL Y.
2B.
A >rove minutes of November 8 2000 s Jecial council meetin to canvass election returns.
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ROGER CARLSON MOVED TO APPROVE THE MINUTES OF TIlE SPECIAL COUNCIL
MEETING OF NOVEMBER R, 2000 AS PRESENTED. BRUCE THIELEN SECONDED
TIlE MOTION. MOTION CARRIED UNANIMOUSLY.
3.
Considenltion of add in!! items to the agenda.
Bruce Thielen noted that the perJi:mllancc evaluation for thc City Administrator was done
last year about this time and felt the Council should plan to conduct another pertCm11<ll1ce
evaluation shortly.
JclfO'Neill rcquested that an update on the MonticelJo Ford conditional use permit be included
with the agenda.
Mayor Belsaas stated that the Councillnet in a closed session on Novcmber 8, 2000 to discuss
litigation involving thc Mel Wolters property and that the Council would close the meeting
tonight tC)r a further discussion of the litigation.
4. Citizen comments/petitions. reauests and comphlints.
None.
5. Consent A!!enda
A. Consideration of approval of revised final plat and review offinal plans fix
developmcnt of the Dodge Dealership - Applicant: Jacob Holdings of Monticello
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Council Minutes - 11/13/00
LLC/Denny Hecker Dodge, Rccommendation: Decision 1- ApprOl'e the revised plat
hosed on thcjinding thut the suhdivision H'ill result in tll'O lots thot conjhrnlto
ordinunces, Decision II - !\;!ove to ucceptthe revised plan without requiring the
applicant to process u nnl' Conditionol Use I)ermit request contingentul}on the
fiJ/lrJll'ing: aj Conditions noted in the initial CUP approv(t!, h) C'omplelion ola revised
fimt! J}lat consistent with the sitcplan as prep(lred and cj CitJI Council granting o/a
Lease to occuPJ' eusen/ent or approval oj the vucation o/utilitJi easen/ent along the
northern e(~r:e olLot 2. Block I (W)'h Street Addition)
B. Consideration of a request for vacation of utility easement within Lot 2, Block L 90lh
Street Addition. Recommendation: Accept petition requesting vacation and call Jc)r
puhlic hearing J()r vacation of utility easements within Lot 2. Block I oftbe 90th Street
Addition and include granting a license to construct a building on the easement.
('. Consideration of approving new hires and departurcs Jc)r Conullunity Center and City
IlaII. Recommendation: Ratify the hiring of the new employecs Jl1r the Community
Center and City Hall.
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Consideration of approving appointll1ent of bookkeeper position. Recommendation:
Approve the hiring of Carol hrkens fllr thc bookkeeper position.
E. Consideration to approve an amendment to the By-laws of the Monticello Advisory
Team. Rccommcndation: Move to approve an amendmcnt to the By-laws or the
Monticello Advisory Team to change the mceting dates 1<) the first and third Tuesday of
each month at 4:30 p.m. at the Monticcllo City Hall.
F. Consideration of adding Silver springs (JoIfCourse as a liquor provider at the
Monticello Community Center. Recommcndation: Approve Silver Springs Golf
Course as a liquor provider at the Monticello Community Center.
BR(JCE TI-IIFLFN MOVED TO APPROVE TIlE CONSENT AGENDA WITH THE
ADDITION OF AGEND^ ITEM #9 (LIQUOR S'fORE REPORT) AS P^RT OF THE
CONSENT AGENDA. ROGER CARLSON SECONDED TJ IE MOT/ON. MOTION
CARRIED UN^NIMO()SLY.
6. Consideration of itcms rcmoved from the consent ~H!cnda for discussion.
None.
7.
Public Hearin2 - Consideration of vacation of 5 ~ Strcet rh!ht-of-wav bctwcen Pine
Street and Walnut Strect.
Jeff C)"Neill summarized this request fClr vacation which impacts the development of the
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Council Minutes - 11/ 13/00
Towne Centre site (Fonller Ferrell Gas site). The City would retain easement rights plus 7 h'
on either side.
Mayor BeIsaas opened the public hearing. There was no one present who spoke tt/r or against
the proposed street vacation. Mayor Belsaas then closed the public hearing.
CLINT HERBST MOVED TO APPROVE THE V ACA nON OF 5 h STREET AS
PROPOSED CONTINGENT ON EXECUTION OF TIlE DEVELOPMENT AGREEMENT.
ROCiER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Public Hcarin - Consideration of vacation of a ortion of Cedar Street ri ht-of-wa ~lnd
a roval of conce t staoe lanncd unit develo ment to aHow a mix of commercial uscs.
Anplicant:Dan Midkc.
Deputy City Administrator. Jeff C),Neill gave a brief review of what was being requested and
revievved the proposed layout of the planned unit development. The proposed development
consolidates a numher of parcels into one development. At this tin1e the applicant is seeking
concept stage approval and approval of the vacation of a portion of the Cedar Street right-of-
\vay. The applicant had initially rcquested vacation of20 feet of right-of-way and is novv
requesting I () feet of right-or-way. Public Works and Engineering feels that vacating 10 leet
would be more acceptahle. The right-or-way of Cedar Street is 100 teet. if the City vacates ten
feet on either side it would leave SO feet of right-ol:'way. Both City Engincer, Bret Weiss and
Public Works Director, John Simola felt that to properly design for sidewalk, pathways and
road surElce, 80 feet was the 111inil11L1I11. Bret Weiss also noted that there were overhead povver
lines in this area that would have to he worked around. There is also the possibility of a turn
lane being constructed in this area. Bret Weiss stated that he did not have a prohlem with the
concept or the proposed developn1ent but he wanted to be sure there was adequate right-of.-way
to layout the street, sidewalk and pathway in a good I~lshion.
There was discussion at the Planning Commission meeting considering this development on
what constitutes the front and side of the property as rar as determining setbacks. Tlf 25
is considered the front Chelsea Road the side and Cedar Street the rear. The proposed develop-
111el1l will require a number of variances affecting the convenience store, canopy and drive area.
While the Planning Commission supported the development. the staff was not quite as
supporti ve as they kit some of the variances were outside of the norm. I t was noted that the
size or the variances needed would be impacted hy the anlOunt of street right-of-way that was
vacated.
Mayor Belsaas opened the public hearing. Dennis Zylla, representing the Mielkes spoke
regarding the proposed development. He addressed the issues that were discussed in the
Planning Commission's consideration of the itenl and included in the narrative submitted to the
Council. He noted they have a letter of con1mitlnent Il'om a regional sit down restaurant and
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Council Minutes - 11/13/00
they arc close to a letter of commitment from a hlst fl,od restaurant. The applicant needs to get
through the concept stage so that he can proceed with negotiating with the prospective tenants.
Mr. Zylla questioned the right-of:'way ((II' Cedar Street. If Ccdar Street is classified as a 111inor
street then only 60' of right-or-way is nceded. If it is classified as a collector street then 70' of
right-ol:'way is needcd. He felt that thc classificatioll of thc street did not match the amount of
right-oJ:.way ( I 00') and f()r that reason thc City could consider vacating it. He also statcd that
a right-in, right-out street design would be detrimental to thc business. Mayor Belsaas then
closed thc public hearing.
BRUCE THIEI.EN MOVED TO ^PPROVE TilE VACATION OF ^ PORTION or CEDAR
STREET FROM CIIELSEA ROAD TO OAKWOOD DRIVE AS REQUESTED BY TI IE
^PPIJCANT CONTINGENT UPON APPROVAL OF THE DEVELOPMENT AND FINAL
STAGE PUD AND ASSOCIATED PLAT BY THE COUNCIL. CLINT HERBST
SECONDI':D THE MOTION. MOTION CARRIED UNANIMOUSLY.
CLINT HERBST MOVED TO APPROVE THE CONCEPT STAGE PUD BASED ON A
FINDING THAT THE DESIGN or TI IE SITE IS APPROPRIATE FOR THE PROPOSED
USES AND LOCATION AND THAI" THE PROPOSED IMPROVEMENTS QU^LIFY FOR
PUD CONSIDERATION UNDER THE CITY'S PUD ORDINANCE AND Wllll THE
UNDERST ANDlNG TIIAr IJIGI IW ^ Y 25 IS CONSIDERED THE FRONT FOR
PURPosr~s OF TIllS PUD. BRUCF T!I[[;:LEN SECONDI:D II IE MOTION. MCHION
C^RRIEI) lJNANIMOliSI,Y.
Public Works Director. John Simola, asked at what point would thc City be ordcring a
feasibility report to dctermine the design or Cedar Street.
CLINT HERBST MOVED TO ACCEPT TI IE PETITION AND ORDER A rEASIBILITY
REPORT COVERING ROADWAY DI':SIGN ^ND OTI IER APPURTENANT WORK FOR
CEDAR STREET. ROGER C^RLSON SECONDED TIlE MOTION. MOTION CARRIED
UN^NIMOUSL Y.
[)cnnis Zylla spoke to the Council requcsting financial assistance from the City in the f()l"m of
tax abatement to aid thc appl icant with the relocation of uti I ities and removal of two existing
houses. Presently the cstimatcd market value of the site is $370,000+. When the rroperty is
developed the market value would be approximately $1 J)OO.oOO. Thc applicant is requesting
the Council consider abating the City's sharc of thc taxes gencrated fiJr this parcel. City staff
was directed to report back to the Council on the impact the tax abatement \\iould have and also
cost estilnates for relocating the utilities.
9.
Rcview of quarterlv liuuor stm.e report.
Includcd with consent agenda.
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10.
Consideration of increase in water trunk fees.
Public Works Director, John Simola explained the need for the increase. Mayor Belsaas asked
how Monticello's charges compared to othcr neighboring communities. John Simola indicated
that Monticello is generally on the low side compared to other communities. [t was noted that
these fees would be reviewed annually and would be adjusted by 4% annually.
BRUCE TIlIELI':N MOVED TO [NCREASE THE WATER TRUNK FEE FROM $950 PER
ACRE TO $ I ,500 PER ACRE EFFECTIVE JANUARY 1,200 I. CLINT HERBST
SECONDED TIlE MOTION. MOTION CARRIED UNANIMOUSLY.
Added Item:
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Jcff CrNcil1 statcd that Monticello Ford has been making an eftl)[( to comply with the terms of
the conditional use pennit anclthey arc requesting an extension of time. The initial plan
showed a ponding area by Marvin Road. Since Monticello Ford is being charged l()r trunk
storm sewcr they are proposing to close oCfthe ponding area and utilize that area as an
extension or the storage area. The Council did not rcel that this change in the poncling area
use would have to go back to the Planning Commission. Thc Council discussed the progress
made on the other items of the conditional use permit approval. City Engineer. Bret Weiss
noted that have rcceived drawings li'om the applicant \vhich are being revicwed. The COllncil
felt that if the applicant could get all the paper work completed and approved by December I.
2000, thc Council would grant a time extension for actual construction only.
BRUCE TI-llELEN MOVED TIIAT SINCE MONTICELLO FORD liAS MADE A GOOD
FAITI! EFFORT TO COMPLV WIT/I THE TERMS OF TIlE CONDITIONAL USE
PERMIT AND IF ALL REQUIRED PAPER WORK IS COMPLETED AND APPROVED BV
DECEMBER L 2000, THE C[TV WILL GRANT A TIME EXTENSION FOR
CONSTRUC"rION ONI.V TO JUNE 15,2000. ROGER CARLSON SECONDED TI-Il::
MOTION. MOTION CARRIED UNANIMOUSL V.
11. ArlJlrovc payment of bills for November.
BRUCI': THIEI.EN MOVED TO APPROVE PA YMENT OF BILLS FOR NOVEMBER.
CLINT HERBST SEC()NDED THE MOTION. MOT[ON CARRIED UNANIMOUSLY.
Other:
Fred Patch gave a brief status report rcgarding the acoustic lor the Council Chambers.
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BRlJCI: THIELEN MOVED TO GO TO A CLOSED SESSION TO DISCUSSION THE
MEI. WOLTERS LITIGATION. ROGER CARLSON SECONDED THE MOTION.
MOTION CARRIED l)NANIMOUSL V.
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Council Minutes - J J /13/00
BRUCE THIELEN MOVED TO REOPEN TilE REGULAR MEETING OF THE COUNCIL.
ROGER CARLSON SECONDI:D TI IE MOTION. MOTION CARRIED UNANIMOUSL Y.
12. Adjourn.
BRUCE TIlIELEN MOVED TO AD.JOURN AT 8:45 P.M. ROCJER CARLSON SECONDI':O
TI IE MOTION. MOTION CARRIED lJNANIMOUSLY.
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Recording Secretary
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MINUTES
WORKSHOP MEETING - MONTICELLO CITY COUNCIL
Thursday, November ]6,2000 - 5:30 p.m.
Membcrs Present:
Roger Be/saas, Roger Carlson, Clint Hcrbst, Brian Stumpf and Bruce
Thielen.
Members Abscnt:
Nonc
Staff Present:
City Administrator, Rick Wolfstcller; Dcputy City Administrator, Jeff
O'Ncill; Public Works Director, John Simola; City Engineer, Bret Weiss,
Community Center Director, Kitty BaItos
Mayor BeIsaas called the workshop meeting to ordcr at 5:45 p.m. and declared a quorum present.
The purpose of the meeting was to review and finalize the 200} hudget and tax levy and to discuss and
formulate an assessment policy 1<:)1' street reconstruction.
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City Administrator, Rick Wolfstcller slul1lnarized the changes made in the budget since the last hudget
workshop. The primary revision was to include $29.200 which would allow f()J" adding l()Ur more
hours of police coverage starting in July. The other area of change was to reallocate the expenses. and
revenues from the Monticello Community Center operating hudget to the city hall, senior citizen center
and National Guard portions of the huiIding. The reallocation did not change any tax levy
requiremcnts. He noted that the proposed levy of $5,067J42 would be a $328J)OO or 6.9% increase
over what was collected in 2000. Rick Wolfstcller indicated that based on in/<:mmltion he had received
from the Wright County Assessor's office. there is an increase in tax capacity value /I'om $13,085,763
to $13,641.431.
The Council looked at the t()lIowing areas as possihle changes to the budget:
Law Enforcement - The preliminary budget was increased by $29,200 to allow fl.)r an additionalJ()ur
hours of police coverage to be added mid-year. Thc Council indicated that the additional $29.200
would remain in the budget.
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Community Education - The preliminary budget did not include funding the $17.500 contribution to
the community education program. Duane Gates lrom Monticello Community Education was present
and explained to the Council that funding for their summer programs comes solely lI'om the City and
the school district and fees collected fi'om the programs. The Council telt that the programs ofJcred by
community education \\-ere available to residents in the entirc school district which is comprised of
all or parts of the cities of Monticello and Otsego and Monticello, Maplc Lake and Silver Creck
Townships and that all the entities should participate in the funding of the programs. When the City
initially contributed to the funding. the City did not have other programs and facilities for youth that
they were supporting. The City now funds the parks and trails system and the community center. The
Council indicated that they were in support of the program but felt that it should be supported by all the
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Council Minutes - 11/16/00
entities who utilized it. The Council encouraged Mr. Gates to go before the other entities and request
funding. The consensus of the Council was that the City would commit to funding at least 50<10 of the
requested $17,500. The Council also stated that if a formula was arrived at by all the entities involved
that would split the funding based on market value. population or some other proportionate basis, the
City would fund their portion.
YMCA Detached Worker Program - The $7,500 contribution request was not funded in the
preliminary budget. Karcn Trondsen and Rrian Rums representing the YMCA were present and
requested the Council to consider continued funding of the detached worker program. They explained
the program and the people it serves. The Council noted that this request was similar to that of the
community cducation program in that it was for a program that served residents from a number of
communities hut was receiving financial support only from the City of Monticello. The Council
cncouraged the YMCA to go to the other communities that also participate in the program and request
their financial support. The Council determined that the City would budget funds to cover 50% of the
hudget request of $7,500.
Central Minnesota Initiative Fund - Representatives from the Central Minnesota Initiative Fund had
spoken earlier to the Council about support for the program which provides grants and loans to various
businesses in Wright County. The Central Minnesota Initiative fund was requesting the city to
considcr a contribution of $2,000. The ('ouncil determined not to include this request in the 200 I
budget.
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Rivers of Hope - This agency provides scrvices f()r victims of domestic violcnce and was requesting a
contribution of $3.378 which \vas based on the numher of individuals served in Monticello. The
Council decided not to fund this request.
Bike Park/Ramps - Kilty Baltos indicated that in preliminary discussions with Tru-Ride the cost for a
small bike park would be approximately $55,000 for the ramp only. In addition there would be the
cost of a 4' x 6' concrete pad over the entire ramp area and fencing for the ramp area. The fencing
should be compatihle with that of the skate parle Kitty Haltos noted that a cheaper but probably less
desirable option would be a dirt track on the vacant lot adjacent to the Eisele property. The price
estilnate for the larger bike park was $64,000. The Council discussed the possihility of getting grant
funds, approaching local organization and groups having charitable gambling funds and establishing
other types of fund raisers to COlne up with some of the cost for constructing a bike parle The Council
felt they should fund approximately $40,000 with the idea that the balance could he raised by other
sources. If the City would proceed with this it would bc the only facility like it in this area. I3ased on
the use ancl revenue generated by the skate park, the feeling was that this type of facility should be
self-supporti ng.
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MCP Contribution - Rick Wolfsteller indicated that there is $15,000 in the budget lor funding the
Mep. Last year in the budget deliberations the Council indicated that they would be reducing the
annual contribution to the MCP. The 2000 budget allotted $25.000 for the MCP and the 2001 budget
dropped this to $15,000. There was discussion on how long to continue funcling for the MCP and the
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Couneil Minutes - 11/16/00
future of the group. The Counci I decided to leave the $15,000 budgeted and review funding again
next year.
Rick Wolfsteller suggested that $90,000 in the capital outlay fund for funding the acquisition of
industrial park land could be used as a possible source of funding for SOme of the items discussed.
There was discussion on the amount of funds that I-rRA had and whether any of those could be used.
Roger Carlson indicated that based on preliminary information, it may be possible that a proposal
would come up where the J-l RA would need all their funding sources to support the development and
Roger Carlson didn't feel the city should be looking at using the HRA funds.
Rick Wolfsteller cautioned the Council on the reserve funds. He stated the pereeption is that there is
money in the reserve fund. However, a good portion of the money is commiued for specific uses and
the balancc of the reserve fund is needed to fund operations until the city receives state aid and tax
settlements in July. Clint Herbst suggested that the liRA money since it is designated for revolving
fund loans is unallocated and should be considered. It was also pointed out that initially transfers from
the liquor store were made to the BRA and the lIRA could be paying some of the transfer baek.
lhe Council tabled further discussion of the budget to consider the assessmcnt policy.
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City Engineer, I3ret Weiss presented information which outlined the city's current assessment policies
and sUllllllarized assessment policies used by other communities. Clint Herbst stated his position that
any new construction should be fully assessed but any replacement of existing bituminous or curb and
gutter should be funded through general taxes.
The City Engineer submitted in map form a street inventory which designated the ages of the streets
within the city. Thcre is approximately 39.90 miles of city streets and 15.96 miles of these streets arc
20 years or older. Streets that are 20 years or older are at the end of their design life and would need to
be reconstructed within the near future. Bret Weiss provided examples of street design and costs. If
the City is going to fund street maintenance through the ad valorem taxes an estimate of the cost f()r
the replacement and maintenance of the streets would have to be determined. In initial estimates, the
City Engineer projected that to reconstruct existing streets with curb and gutter would be
approximately $7,516,800. To reconstruct streets that currently do not have eurb and gutter would be
$3.) 77,050. This would be a total of $10,693,850 Jc)r reconstruction. In addition overlay and sea1coat
costs for streets would be an additional $1,000.000+. If the city was going to embark on a program
where the reconstruction work for just the core streets would be spread out Ovcr seven years. based on
the engineer's prcIinlinary estimates, the city would have to generate approximately $] .300,000 each
year in taxes to cover the cost of the work.. Rick Wolfsteller presented some information that showed
what the impact would be on a residence with a market value of $115,000 and a business with a market
value of $] 00.000 if the city would levy f()r the streets.
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In the past the city has normally bonded for street improvements and assessed back the cost to the
benefiuing property owners. If the city would go to a tax levy, they may not be able to bond for these
improvements since bond regulations require that 20% of the cost to be assessed. If the city cannot
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bond for the street improvements, then a reserve would need to be set up so that funds would be in
place to Cover the construction costs as they occur. If the city would go the route of levying fl:n street
improvements through ad valorem taxes, the first year the levy could appear on the taxes would be the
year 2002.
Council Minutes - ] 1/16/00
In addition to reconstruction of existing city streets, the City Engineer and Public Works Director also
presented cost estimates 1()J' new street projects such as Fallon A venue, CSAH 18 interchange and 71h
Street improvements. The Couneil also has to consider how to fund the city's share of the proposed
project to improve CSAJ-/ 75 from Washington Street to Otter Creek. The Couneil discussed at length
how much revenue would need to be generated in 2002 to cover the city's expenditures J()r street
improvements. The Council discussed whether to begin with a smaller levy amount and build up to
an amount that would equal the $1,300,000 needed to fund the annual estimated street construction
cost or to initially levy the full amount needed. The Council also discussed whether some of the street
projects could even be delayed until the city would be able to levy Jar the improvement.
Rick Wol/steller stated that at the present time there are no levy limits and it is possible that this could
change. If that happens then the city's ahility to levy the necessary amounts needed for the street
eonstruction would be hampered. The Mayor asked about the bonded indebtedness of the city and
whether as bond issues are retired if there would be funds the city could utilize for the street
construction program. Rick Wolfsteller responded that most of the smaller bond issues would be
retired within five year or so but the two remaining issues were large ones covering the wastewater
treatmcnt plant and thc community center and run around] 8 years.
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Mayor Belsaas asked that John Simola provide a list o/'the strcet projects and their estimated cost to be
included in the next agenda paekel. The City Administrator was requested to provide intCll"Ination on
the outstanding bonded indebtedness. The Council JClt that there nceds to be an education process f()J'
the residents as far as the city's proposal to Icvy for street improvements rather than assessing thcm and
the gcneral feeling of the Council was that the first year's levy amount should gencrate at least
$600,000.
The Couneil then addressed thc projects that were considered at the November I Jth meeting,
spccifically the CS^H 75 hnprovcment, Project No. 98-] 7C. Tn reviewing the projeet, the Council
determined that there were three properties that were affected. lhese properties whieh initially were
proposed to receive an assessment should not be charged since it was not new construction but
replacement.
The Council went back to the budget diseussion. The Couneil directed that in Illaking Jinal budget
changes, no further use of the reserves should be made and that liquor store funds, or other sources
should he considered.
BRI^N STLJMPF MOVED TO ADJOURN AT 8:30. ROGER CARLSON SECONDED THE
MCHION. MOTION CARRIED UNANIMOUSL Y.
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Recording Secretary
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. City Council Agenda - 11/27/00
5A. Consideration to approve the proposed amendments to the EDA-GMEF Business
Subsidy Criteria.
A. Reference and Backe:round:
At the November 8, 2000 EDA meeting, a public hearing was held and the commissioners
adopted a resolution amending the EDA Business Subsidy Criteria. The proposed
amendments included an increase to the wage level (a wage of the higher of $9.00 per
hour, or at least .......) and other criteria affected by recent Legislative action. The
proposed amendments were drafted and recommended by the EDA Attorney. Subject to
Council approval, the lIRA and EDA Business Subsidy Criteria remain consistent.
According to the GMEF Guidelines, as part of the EDA Business Subsidy: No changes to
the GMEF Guidelines shall be instituted without prior approval ofthe City Council.
Therefore, this item appears on the Council Agenda for approval.
B. Alternative Action:
1.
A motion to approve the proposed amendments to the EDA-GMEF Business
Subsidy Criteria.
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2. A motion to deny approval of the proposed amendments to the EDA-GMEF
Business Subsidy Criteria.
3. A motion to table any action.
C. Recommendation:
The City Administrator and Economic Development Director recommend alternative no.
1., this being a housekeeping item.
C. Supportinl! Data:
Copy of Criteria with amendments.
.
1
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ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
Business Subsidy Criteria
Public Hearing and Adoption the 31 ,I day of August, 1999
Public Hearing and Adoption of Amendments the 81h day of November, 2000
1. PURPOSE
1 :01 The purpose of this document is to establish the Economic Development Authority's
criteria for granting of business subsidies. as defined in Minnesota Statutes 1161.993.
Subdivision 3. for private development. This criteria shall be used as a guide in processing
and reviewing applications requesting business subsidies.
.
1 :02 The criteria set forth in this document are guidelines only. The Economic Development
Authority reserves the right in its discretion to approve business subsidies that vary from
the criteria stated herein if the Economic Development Authority determines that the
subsidy nevertheless serves a public purpose. The Authority will file evidence of any
deviation from these criteria with the Department of Trade and Economic Development in
accordance with Minnesota Statues, Section 116.1.994, Subd. Z.
I :03 The Economic Development Authority may amend the business subsidy' criteria at any
time. Amendments to these criteria are subject to public hearing requirements pursuant to
Minnesota Statutes. Sections 1161.993 through I 161.994.
') STA TUTOR Y LIMIT A nONS
2:01 In accordance with the business Subsidy Criteria. Business Subsidy requests must comply
with applicable State Statutes. The Economic Development Authority ability to grant business
subsidies is governed by the limitations established in Minnesota Statutes
116J.993 through 1161.994.
3. PUBLIC POLICY REQUIREMENT
3:0 I All business suhsidies must meet a public purpos~ (other than) in addition to increasing the tax
base. Job retention may only be used as a public purpose in cases where job loss is imminent
and demonstrable.
--,
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4. BUSINESS SUBSIDY APPROVAL CRITERIA
EDA Busincss Subsidy Criteria
4:01 All new projects approved by the Economic Development Authority should meet the
10 II owing minimum approval criteria. However, it should not be presumed thot a project
meeting these criteria will automatically be approved. Meeting these criteria creates no
contractual right on the pan of any potential developer or the Economic Development
Authority.
4:02 The project must be in accord with the Comprehensive Plan and Zoning Ordinance, or
required changes to the plan and ordinances must be under active consideration by the
City at the time of approval.
4:03 Prior to approval of a business subsidies financing plan and when deemed appropriate by
the Economic Development Authority. the develuper shall provide any required market
aod financial feasibility studies. appraisals. soil boring in/ormation provided to private
lenders for the project and other intonn::nion or data as requested.
4:04 A recipient ofa business subsidy must make a commitment to continue operations at the
site where the subsidy is used for at least five years after the benefit date.
4: 0 5 (Rec i pi ents 0 fan y b usi ness subs i d Y wi 11 be re'] u ired to meet wage and jo b goal s determ i ned
by the Economic Development Authority on a case-by-case basis. giving consideration to
the nature 0 f the deve 10 pme n t. the ptnpose 0 f the subs i d y. loca I eco no m i c co nd i ti ons. aod
situational circumstances.)
The Economic Development Authority may determine after a puhlic hcaring that joh
creation or retention is not a goal of the suhsidy. In those cases, the recipient must instead
meet at least one of the following minimum requirements (in addition to all other criteria
in this document other thall those relating to jobs and minimum wages):
(1) The proposed subsidy must accomplish removal, rehabilitation or
redevelopment of "blighted areas" as defined in Minnesota Statues, Section
"'69.002, Subd. J J, or must constitute a cost of correction conditions that
allow design:Hion of redevelopment districts under Minnesota St.atues,
Sections "'69. J 7'" to "'69. J 79; or
(2) The proposed subsidy must result in improvements to public infastructure
or public facilities, including without limitations, sewers storm sewers,
streets, parks, recreational facilities, and other City facilities; or
(3) The proposed suhsidy must remove physical impediments to development
of hInd, induding without limitation pOor soils, hedrock conditions, steep
slopes, or similar geotechnical prohlems.
OAWNIWORO/POLlCIES 10/30100
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4:06 For any business subsidy that does not meet the requirements of Section "':05, the
recipient must create or retain jobs as determined by the Economic Development
Authority, as must meet the minimum wage thresholds, described in Section 5:03, Greater
Monticello Enterprise Fund Guidelines, l.(b) (whether or not the source of the subsidy is
tax increment financing).
5. GREATER MONTICELLO ENTERPRISE FUND PROJECT EVALUATION CRITERiA
5:0] The Economic Development Authority will utilize the Greater Monticello Enterprise fund
to support the community's long-term economic goals.
5:02 Each Greater Monticello Enterprise Fund subsidy will be analyzed and evaluated by the
Economic Development authority. Each project shall be measured against the general
criteria in Sections 1 through 4 and the specific criteria in this Section 5 applicable to the
Greater Monticello Enterprise Fund subsidies.
5:03 Following are the evaluation criteria that will be used by the Economic Development
Authority:
)Y\
DAWN/wORD/POLlCIES 10/30100
3
EDA Business Subsidy Criteria
GREATER MONTICELLO ENTERPRISE FUND GUIDELINES
CITY OF MONTICELLO
505 WALNUT STREET, SUITE #1
MONTICELLO, MINNESOTA 55362
(763) 271-3208
-
INTRODUCTION
The purpose of the Greater Monticello Enterprise Fund (GMEF) is to encourage economic
development by supplementing conventional financing sources available to existing and new
bU,sinesses. Through this program administered by the Economic Development Authority and
participating lending institution(s), loans are made to businesses to help them meet a portion of their
financing needs. All loans must serve a public purpose by complying with four or more of the criteria
noted in the next section. In all cases. it is mandatory that criteria # 1 be satisfied. which requires the
creation of new jobs. It is the responsibility of the EDA to assure that loans meet the public purpose
standard and comply with all other GMEF policies as defined in this document. Along with
establishing the definition of public purpose. this document is designed to outline the process involved
in obtaining GMEF financing.
DEFINITION OF PUBLIC PURPOSE
1. To provide loans for credit worthy businesses that create new jobs.
(a)
One job is equivalent to a total of 37.5 hours per \veek.
t
(b) At least 90% of the jobs (to pay a rate equal to or greater than) created must pay a
wage of the higher of 59.00 per hour, or at least 160% of the federal minimum wage.
exclusive of benefits. for individuals over the age of 20 during the term of the
assistance. Annual written reports are required until termination date.
Failure to meet the job and wage level goals require partial or full repayment of
the assistance with interest.
2. To provide loans for credit worthy businesses that would increase the community tax base.
3. To assist new or existing industrial or commercial businesses to improve or expand their
operations. Considerations for loans shall take into account factors including. but not limited
to, the nature and extent of the business. the product or service involved. the present availability
of the product or service within the city of ivlonticello. the compatibility of the proposed
business as it relates to the comprehensive plan and existing zoning policies. and the potential
for adverse environmental effects of the business. ifany.
4. To provide loans to be used as a secondary source of financing that is intended to supplement
conventional financing (bank financing).
5.
To provide loans in situations in which a funding gap exists.
-,
6. To provide funds for economic development that could be used to assist in obtaining other
funds such as Small Business Administration loans. federal and state grants. etc.
DAWNiWORD/POLlCIES 10/30/00
4
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EDA Business Subsidy Criteria
THE GREATER MONTICELLO ENTERPRISES
REVOL VING LOAN FUND POLICIES
I.
BUSINESS ELIGIBILITY
*
Industrial businesses
Non-competitive commercial businesses which enhance the community
Businesses located within the city of Monticello
Credit worthy existing businesses
Non-credit worthy start-up businesses with worthy feasibility studies (Deny all
historical non-credit worthy businesses)
$] 0,000 loan per each job created. or $5.000 per every $20.000 increase in property
market valuation, or $5.000 per every $20.000 increase in personal property used for
business purposes, whichever is higher.
*
*
*
*
*
II. FINANCING METHOD
*
COMPANION
DIRECT LOAN -
Example: Equity 20%. RLF 30%. and bank 50%. (All
such loans may be subordinated to the primary lender(s) if
requested by the primary lender(s). The RLF loan is
leveraged and the lower interest rate of the RLF lowers
the dlective interest rate on the entire project.)
*
P ARTIeIPA TION LOAN - RLf." buys a portion of the loan (the RLF is not in a
subordinate position. no collateral is required by the RLF.
and the loan provides a lower interest rate).
*
GUARANTEE LOANS - RLF guarantees a portion of the bank loan. (Personal and
real estate guarantees handled separately.)
III. USE OF PROCEEDS
*
*
Real property acquisition and development
Real property rehabilitation (expansion or impro\'Cments)
Machinery and equipment
*
IV. TERMS AND CONDITIONS
*
LOAN SIZE -
Minimum of $5.000 and maximum not to exceed 50~o of the
remaining revolving loan fund balance: for e\:ample. if the
remaining revolving loan fund b;:lIance is $50.000. the maximum
loan issuance is $25.000.
*
LEVER/\GlNG -
Minimum 60% private/public non-GrvlEF
Maximum 30% public (GMEF)
DAWNiWORD/POllCIES 10/30/00
5
EDA Business Subsidy Criteria
Minimum 10% equity EDA loan
.
*
LOAN TERM - Personal property term not to exceed life of equipment (generally
5-7 years). Real estate property maximum of 5-year maturity
amortized up to 30 years. Balloon payment at 5 years.
*
INTEREST RATE - Fixed rate not less than 2% below Minneapolis prime rate. Prime
rate per National Bank of Minneapolis on date of EDA loan
approval.
*
LOAN FEE - Minimum fee of $200 but not to exceed 1.5% of the total loan
project. * Fees are to be documented and no duplication of fees
between the lending institution and the RLF. Loan fee may be
incorporated into project cost. EDA retains the right to reduce or
waive loan fee or portion of loan fee.
* Fee to be paid by applicant to the EDA within 5 working
days after City Council approval of GMEF loan.
Nonrefundable.
*
PREPAYMENT
POLICY -
No penalty for prepayment.
.
*
DEFERRAL OF
PAYMENTS -
1.
Approval of the EDA membership by majority vote.
2. Extend the balloon if unable to refinance, verification
letter from two lending institutions subject to Board
approval.
*
LATE PAYMENT
POLICY
Failure to pay principal or interest when due may
result in the loan being immediately called.
*
INTEREST
LIMITATION ON
GUARA.NTEED
LOANS-
Subject to security and/or reviewal by EDA.
*
ASSUMABILITY
OFLOAN-
None.
*
BUSINESS EQUITY
REQUIREIvlENTS -
Subject to type of loan: Board of Directors will determine
case by case. analysis under normal lending guidelines. .
DAWNIWORD/PQLlCIES 10/30100
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COLLATERAL-
*
NON-PERFORMANCE -
*
NON-PERFORMANCE
EXTENSION -
*
LEGAL FEE -
EDA Business Subsidy Criteria
*
Liens on real property in project (mortgage deed).
Liens on real property in business (mortgage
deed).
Liens on real property held personally (subject to
Board of Directors - homestead exempt).
Machinery and equipment liens (except equipment
exempt from bankruptcy).
Personal and/or corporate guarantees (requires
unlimited personal guarantees).
*
*
*
*
An approved GMEF loan shall be null and void if funds
are not drawn upon or disbursed within ISO days from
date of EDA approval.
The ISO-day non-performance date can be extended up to
an additional 120 days.
1. A written request is received 30 days prior to
expiration of the ISO-day non-performance date.
2.
Approval of the EDA membership by majority
vote.
Responsibility of the GMEF applicant.
The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants
shall have equal access to GMEF funds regardless of race. sex. age, marital status, or other personal
characteristics.
DAWNIWORD/POLlCIES 10/30/00
7
EDA Business Subsidy Criteria
ORGANIZA TION
.
The Greater Monticello Enterprise Fund is administered by the City of Monticello Economic
Development Authority (EDA). which is a seven-member board consisting of two Council members
and five appointed members. EDA members are appointed by the Mayor and confirmed by the City
CounciL Formal meetings are held on a quarterly basis. Please see the by-laws of the EDA for more
information on the structure of the organization that administers the Greater Monticello Enterprise
Fund.
PARTICIPATING LENDING INSTITUTION(S)
1. Participating lending institutions(s) shall be determined by the GMEF applicant.
2. Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the
policies of the GMEF as approved by the City CounciL
3. Participating lending institution(s) shall analyze the formal application and indicate to the EDA
the level at which the lending institution will participate in the finance package.
LOAN APPLICA TION/ADMINISTRA. TIVE PROCEDURES
The EDA desires to make the GMEF loan application process as simple as possible. However. certain
procedures must be follo\ved prior to EDA consideration of a loan request. Information regarding the
program and procedures for obtaining a loan are as tollov"s:
.
Citv Statf Duties:
The Economic Development Director. working in conjunction with the Assistant City Administrator.
shall carry out GMEF operating procedures as approved hy the EDA and Council. Staff is responsible
for assisting businesses in the loan application process and \vill \vork closely \vith applicants in
developing the necessary information.
Application Process:
I. Applicant shall complete a preliminary loan application. Staff will review application for
consistency with the policies set forth in the Greater Monticello Fund Guidelines. Staff
consideration of the preliminary loan application should take approximately one \veeL
Staff will ask applicant to contact a lending institution regarding financing needs and indicate to
applicant that further action hy the EDA on the potential loan will require indication of support
from a lending institution.
I
Ifapplicant gains initial SUPP0l1 from lending institution and if the preliminary loan application .
is approved. applicant is then asked to complete a formal application. If the preliminary loan
application is not approved by staft~ the applicant may request that the EDA consider approval
of the preliminary application at the next regularly scheduled meeting of the EDA.
DAWNIWORD/POLlCIES. 10130/00
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EDA Business Subsidy Criteria
..,
.J.
If the preliminary loan application is approved, applicant shall complete a formal application.
Formal application shall include a business plan which will include its managemcnt structure.
market analysis. and financial statement. Like documentation necessary for obtaining the bank
loan associatcd \vith the proposal is acceptable. Attached with each formal application is a
\vritten release of information executed by the loan applicant.
4. City staff will meet with applicant and other participating lender(s) to refine the plan for
financing the proposed enterprise.
5. City staff shall analyze the formal application and financial statements contained therein to
determine if the proposed business and finance plan is viable. Staff may. at its discrction.
accept the findings of a banking institution regarding applicant credit and tinancial viability of
the project. Aftcr analysis is complete. City staff shall submit a written recommendation to the
EDA. A decision reg:lrding the application shall be made by the EDA within 60 days of the
submittal of a completed formal application.
6. The EDA shall have authority to approve or deny loans: hO\vcver. within:21 days of EDA
approval. the City Council may reverse a decision by the EDA to approve a IO:ln if it is
determined by Council that such loan was issued in violation of GMEF guidelines.
7.
Prior to issuance of an :lpproved loan. the City Attorney shall rcview and/or prepare all
contracts. legal documents. and intercreditor agreements. After such review is compkte. the
City shall issuc said loan.
ORIGINAL REVOL VING LOAN FUNDING
"LETTER OF CREDIT" FROl'vl MONTICELLO CITY COUNCIL - $200,000
SOURCE - City Liquor Store Fund
Citv shall transfer needed loan amount from existinl! accounts at such time that individmlloans are
- ~
approved. Re\'enue created through this program shall be under the control of the EDA and shall not
be transterred to City funds unless the City Council determines that reser\'es generated are not
necessary for the successful operation of the Authority. Ifsuch is the C:lse. such funds must be
transferred to the debt ser\'ice funds of the City to be used solely to reduce tax le\'ies for bonded
indebtedness of the City (see Section 5 B of the ordinance establishing the I'vIonticello EDA).
REPORTING
1. Staff shall submit quarterly summaries and/or annual report detailing the status of the
Monticello Enterprise Fund.
FUND GUIDELINES l'vIODIFICATION
1.
At a minimum, the EDA shall revie\v the Fund Guidelines on an annual basis. No changes to
the GI'vIEF guidelines shall be instituted without prior approval of the City Council.
DAWNIWORD/POLlCIES 10/30/00
9
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EDA Business Subsidy Criteria
LOAN ADMINISTRA nON
1. City staff shall service City loan, shall monitor City position with regard to the loan, and shall
assure City compliance with intercreditor agreement.
2. All loan documents shall include an intercreditor agreement which must include the following:
A. Definition of loan default. agreements regarding notification of default.
B. Agreements between lending institution and City regarding reproduction of pertinent
information regarding the loan.
3. All loan documentation shall include agreements between borrower and lenders regarding
release of privacy regarding the status of the loan.
DAWNIWORD/POLlCIES. 10/30/00
10
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5B.
A.
Council Agenda - 11/27/00
Consideration of approving final payment on Bridge Park Improvements, Lift Station,
Sanitary Sewer and Appurtenant Work - Proiect No. 9S-ISC. - Barbarossa. (RW)
REFERI~NCI'~ AND BACKGROlIND:
Barbarossa and Sons has recently completed the Bridge Park Lift Station Improvement Project
that relocated the lift station to the northwest corner of Bridge Park. Total project costs will be
$271,373.39.
The City Engineer has recommended that final payment be approved in the amount of
$13,568.67. All lien waivers, state withholding forms and surety consent documents have been
received by the City.
B. ALTERNATIVE ACTIONS:
c
D.
I. Approve the final payment in the amount of $13,568.67 to Barbarossa & Sons fi.w
completion of Bridge Park I _ift Station Improvement Project No. 98-15C.
STAFF RECOMMENDATION:
It is the recommendation of the City Administrator and City Engineer that the final payment be
approved.
SUPPORTING DATA:
Letter from City Engineer recommending approval of Jinal payment.
.
.WSB
.
.
8441 Wayzata Boulevard, Suite 350
Minneapolis, MN 55426
B.A. Mittelsteadt, P.E.
Bret A. Weiss, P.E.
Peter R. Willenbring, P.E.
Donald W. Sterna, P.E.
Ronald B. Bray, P.E.
tel: 763-541-4800
fax: 763-541-1700
& Associates, Inc.
November 8, 2000
Honorable Mayor and City Council
City of Monticello
505 Walnut Avenue, Suite 1
P.O. Box 1147
Monticello, MN 55362
Re: Final Construction Pay Voucher No.3
Bridge Park Improvements, Lift Station, Sanitary Sewer & Appurtenant Work
City of Monticello Project No. 98-15C
WSB Project No. 2014.30
Dear Mayor and Council Members:
Enclosed are three (3) copies of the final Construction Pay Voucher No.3 for the referenced
projectin the amount of$13,568.67. We have received and have attached the ICU 134 forms from
the Contractor. We recommend [mal payment to the contractor subject to receipt of the Consent
of Surety to Final Payment certification from the contractor's surety.
Thank you.
Sincerely,
WSB & Associates, Inc.
f];d-/J IL/~
Bret A. Weiss, P.E.~
City Engineer
,
Enclosures
c: Tom Bose, City of Monticello
Barbarossa and Sons, Inc.
bba
5tj
Minneapolis' St. Cloud
F:I WP WINl20J 4.30Ivo-fnl-ltr-City. wp</
.
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City Council Agenda - 11/27/00
Consideration to approve the appointment of a nominee for DA T membership.
(O.K.)
A. Reference and Back2round:
Per the Bylaws of the Monticello Design Advisory Team (OAT), ARTICLE III:
MEMBERSHIP OF THE DAT, Section 1. Appointment of Members. The DAT shall
nominate individuals for appointment to the DAT, subject to the approval of the Board of
Directors of Monticello Community Partners. All nominations shall be forwarded to the
Monticello City Council for approval, as provided for in the Monticello Zoning Ordinance.
Title 10, Chapter 14B, Section 7. Therefore, this item appears on the Council agenda.
At the DAT meeting of October 25,2000, the members approved the nomination of Carl
<<Skip" Sorenson for membership on DAT. At the Board meeting of the Monticello
Community Partners (MCP) on November 15, 2000, the Board members approved the
nomination of Carl <<Skip" Sorenson and forward the nomination to the City Council for
approval. Mr. Sorenson will fill the seat vacated by Gail Cole. The two-year term will
expire on January 2002. Mr. Sorenson comes highly recommended as a local architect
and his expertise is an asset to DAT. Mr. Sorenson has agreed to serve on DAT.
B.
Alternative Action:
1. A motion to approve nominee Carl <<Skip" Sorenson as a member ofthe Design
Advisory Team. Term expires January 2002.
2. A motion to deny approval of nominee Carl <<Skip" Sorenson as a member of
DAT.
3. A motion to table any action.
C. Recommendation:
With the forwarded recommendation from DAT, MCP, and city staff Jeff O'Neill, Fred
Patch, and Koropchak; the recommendation is alternative no. 1.
D. Supportine Data:
Excerpt ofDAT Bylaws.
1
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BYLA WS
OF
MONTICELLO DESIGN ADVISORY TEAM
ARTICLE I: PURPOSE
The purpose of the Monticello Design Advisory Team is to provide design review of all
development and redevelopment projects within the Central Community District, as provided for
in the Monticello Zoning Ordinance, Title 10, Chapter 124B, as amended. The Design Advisory
Team may also provide services, separate from its official duties, relating to enhancing the
physical appearance of Monticello to Monticello Community Partners, a Minnesota nonprofit
corporation.
ARTICLE II: DEFINITIONS
Section 1. "DA T" shall mean and refer to the Monticello Design Advisory Team, a public body
appointed by the Monticello City Council.
Section 1. "Member" shall mean and refer to all individuals duly nominated by Monticello
Community Partners, a Minnesota non-profit corporation, and appointed to the DA T by the
Monticello City Council, as provided for in Article III, Section 1 of these bylaws.
Section 3. "Bylaws" shall mean and refer to the bylaws of the DA T as amended from time to time.
ARTICLE Ill: MEMBERSHIP OF THE DESIGN ADVISORY TEAM
Section 1. Appointment of Members. The DA T shall nominate individuals for appointment to
the DA T, subject to the approval of the Board of Directors of Monticello Community Partners.
All nominations shall be forwarded to the Monticello City Council for approval, as provided for in
the Monticello Zoning Ordinance, Title 10, Chapter 14B, Section 7.
Section 2. Number and Te~ms of Office. The number of members of the Monticello Design
Advisory Team shall be not less than five (5) and not more than seven (7). Each member shall be
a natural person of full age and serve for a period of two (2) years, until his or her successor is
appointed or until his or her resignation or removal as hereinafter provided. At the expiration of
any term, any member may be reappointed in the manner specified in Section 1 hereof. Additional
members may be appointed to fill vacancies in the same manner.
Section 3. Initial Terms. Of those members initially appointed, two (2) members shall serve
three-year terms, and three P) members shall serve tvvo-year terms. Thereafter, all members shall
serve two-year terms. i
I
I
(A) Initial Two-Year Term:i (Term expires January 2000, with the appointment of new member)
i
~ 'I C I
Gal ole I
Ron Hoglun9-
Rita Ulrich !
~
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City Council Agenda - 11/27/00
SU.
Consideration to approve the ratification of the amendment to EUA-GMEF Loan
No. 010 (Blue Chip Development Company). O.K.
A. Reference and Backe:round:
According to the GMEF Guidelines, the EDA shall have the authority to approve or deny
loans; however, within 21 days of the EDA approval, the City Council may reverse a
decision by the EDA to approve a loan ifit is determine by Council that such loan was
issued in violation of the GMEF guidelines. There is no provision within the guidelines
which require the City Council to review or ratify the action of the EDA relative to
amending the original terms of the loan agreement. However, for continuity and good
will, this appears of the council agenda.
.
At the request of Jim Harwood and Brad Barger, the EDA on November 8, 2000,
considered the request to extend the balloon payment date from December 1, 2000, to
December 1,2005, for GMEF Loan No. 010 for Blue Chip Development Company dba
Vector Tool & Mfg, Inc. The $50,000 real estate loan was approved on September 13,
1995, at 6.75% fixed interest rate and amortized over 20 years with a five-year balloon
payment. The remaining principal balance as of November 20,2000, is $42,962.81. The
conventional lender is Firstar Bank, Gary Taverna.
The EDA commissioners noted:
1. Firstar Bank submitted a letter of support to extend the balloon payment date and
noted the lender/Blue Chip loan had been paid to date according to contract terms.
2. The EDNBlue Chip loan agreement in good standing as of November 20,2000.
3. The CMIF/Blue Chip loan agreement in good standing as of November 8, 2000.
4. No fourth mortgage behind the EDA loan.
5. Prime rate, November 8, 2000, 2:00 p.m., First Bank, 9.5%.
6. EDA-GMEF current cash fund balance approximately $600,000.
7. Since the EDA meeting, current credit worthy financial statements have been
submitted.
8. EDA Attorney prepared amendments to the loan and guaranty agreements and the
promissory note. Closing anticipated the week of November 27 as amendment is effective
with the December 1, 2000 loan payback payment.
9. An executive decision by the Chair and Executive Director reduced the 20-year
amortization to IO-year amortization at the request of the borrowers.
.
The EDA approved a motion to extend the balloon payment date from December 1, 2000,
to December 1,2003, for GMEF Loan No. 010 at a fixed interest rate of7.5%.
Preparation costs associated with amending and reaffirming the documents, the
responsibility ofthe borrower. The requested five-year balloon date extension was
reduced to three years to ensure an adequate funding balance of the EDNGMEF and the
1
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City Council Agenda - 11/27/00
fixed interest rate was increased to 2% below the current (November 8, 2000) prime rate
to discourage similar request. The BDA approved the amendment because ofa timing
issue and the unusual high costs associated with refinancing the real estate loan and cost of
appraisals of the split lot which occupies the Vector Tool and B&B Metal Stamping
buildings.
B. Alternative Action:
1. A motion to approve the ratification of the amendment to BDA-GMEF Loan No.
010 for Blue Chip Development Company.
2. A motion to deny approval of the ratification of the amendment to EDA-GMEF
Loan No. 010 for Blue Chip Development Company.
3. A motion to table any action.
C. Recommendation:
The recommendation of the City Administrator and EDA Executive Director is alternative
no. 1. This being a housekeeping item for continuity and good will.
D. SUPDortine: Data:
Copy of the BDA approval form.
2
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APPROVAL OF
GREATER MONTICELLO ENTERPRISE FUNDS
BY
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
AMENDMENT TO GMEF LOAN NO. 010
Preliminary Loan Application Approval.
Loan terms negotiated and agreed upon between
the developer, the lending institution, and the
EDA Executive Director.
SEE ATTACHED LETTER
Formal Loan Application and Financial Statement
analyzed by the lending institution, BDS, Inc. or City
staff.
Building and Site Plan Preliminary and/or Final Review.
~~
MOTION SUBJECT TO SUBMISSION OF ONE MOST
CURRENT FINANCIAL STATEMENTS OR FINANCIAL
~TTMMARV OF A('rOTTN'T'~ F~OM rF.R'tTFTFn PTTRT.IC
ACCOUNTANT.
Building Permit approval or construction commitment.
Loan documents reviewed and/or prepared by the
City Attorney.
ECONOMIC DEVELOPMENT AUTHORITY APPROVAL OR DISAPPROVAL:
... AMENDMENT
~OANNUMBER: 010 ~ APPROVED: YES
BORROWER: BLUE CHIP DEVELOPMENT COMPANY dba VECTOR TOOL & MFG (Brad Barger and Jim Harwood)
ADDRESS: 18071 TERRITORIAL ROAD, MAPLE GROVE, MN553H!SAPPROVED:
LOAN AMOUNT:
RATE: 7.5% FIXED INTEREST RATE DATE: NOVEMBER 8, 2000
TERMS A E T EXTENDED FOR THREE YEARS FROM DECEMBER I, 2000 to DECEMBER I, 2003.
FEE BORROWER RESPONSIBLE FOR ATTORNEY FEES TO AMEND THE LOAN AGREEMENT AND PROMISSORY NOTE
AND REAFFIRM THE GUARANTY AGREEMENT.
**OTHER (SECPND PAGE)
A motion was made by EDA Commissioner ROGER C-\RLSON to (approve -~h
Greater Monticello Enterprise Funds ~ Loan No. 010 balloon payment was extended by
three years from December I, 2000 to December 1~', 2003 at dollars and cents to developer
: fixed im:erest tate uf 7. .J%. PreparatTub uf Lhe amendment and reaff1mation documents
the res~oHsiBility af the borr~
this 8th day of November , 2000
Seconded by EDA Commissiol1er RON HOGLUND
YEAS: ROGER CARLSON
RON HOGLUND
BILL DEMEULES
DARRIN LAHR
rEF disbursed
NA YS: NONE
ABSENT: BARB SCHWIENTEK
KEN MAUS
~, by Chec'iHf.} ~ERBST
i DA Treasurer
CITY COUNCIL MAY REVERSE AN EDA LOAN DECISION WITHIN TWENTY-ONE DAYS Of EDA
APPROVAL. TO CITY COUNCIL,
so
ACCEPTANTC~ OF TERMS
il L
I (We) hereby accept the terms stated above as approved by the Economic Develbpment Authority in and for the
City of Monticello.
DATED:
/1-/)-06
/WO~,
CV~...{ )~__
** FIRST BANK PRIME RATE 11/8/00 9.5%
CMIF PAYBACK CURRENT ON SECOND MORTGAGE 11/8/00
SEE ATTACHED LETTER FROM LENDER
THE BALLOON DATE WAS EXTENDED DUE TO HIGH COSTS ASSOCIATED WITH REFINANCING DUE TO
UNUSUAL'CIRCUMSTANCES ASSOCIATED WITH THE MORTGAGE AND'APPRAISAL OF THE SPLIT LOT
OF VECTOR TOOL ANDB&B METAL STAMPING BUILDING.
THE REQUESTED FIVE YEAR BALLOON DATE EXTENSION WAS REDUCED TO THREE YEARS TO INSURE
ADEQUATE FUNDING BALANCE OF THE EDA/,~EF.
MOTION SUBJECT TO SUBMISSION 0' CURRENT YEAR FINANCIAL STATEMENTS OR FINANCIAL
SUMMARY FROM CERTIFIED PUBLIC ACCOUNTANT. 1'<.2..0:..........) \'\ -\~-oo
. ~ GMEF LOAN NO~ 010 PAYBACK CURRENT 11/8/00
~
sD
.
.
.
5E.
City COllncil Agcnda - 11/27/00
Consideration of resolution accepting improvell1ents for River Forest Subdivision -
Phase I. (.10)
A. REFERENCE AND BACKGROUND
The City Engineer has reported that the improvements installed at the River Forest
Subdivision Phase I are complete and properly installed. In addition, the terms of the
development agreement have been fulfilled. It is therefore appropriate to accept the
improvements and begin the warranty period.
B. ALTERNATIVE ACTION
1. Motion to adopt resolution accepting public improvements the River Forest
subdivision phase I.
2. Motion to deny adoption of said resolution.
C. STAFF RECOMMENDATION
The City Administrator recommends alternative 1.
D. SUPPORTING DATA
None
.
.
.
SF.
A.
Council Agenda - 11/27/00
Consideration of approving new hires and departures for the Community Center. (R W)
REFERENCE AND BACKGROlJND:
The Council is asked to ratify the hiring of new employees that have occurred recently. As you
recall, it is recommended that the Council officially ratify the hiring of all new employees
including part-time and seasonal workers.
B. ALTERNATIVE ACTIONS:
1. Ratify the hiring of the employees fiJr the Community Center as
identified on the attached list.
C. SlJPPORTING DATA:
List of new employees.
.
Name
Susannah Cyr
Name
Michael Moran
.
.
employee cc Iist.xls: 11/21/2000
NEW EMPLOYEES
Title
Pool Attendant
Department
MCC
TERMINATING EMPLOYEES
Reason
involuntary
Department
Liquor
Hire Date
11/4/00
Last Day
11/13/00
Class
PT
Class
PT
5F
._ ~ ,,"----_ .__-:- ._:..-....." .... __ ---.. __.n _____, _ ~
.
.
.....
.....
Council Agenda - 11/27/00
7.
Considenltion of amcndments to newlv established ordinancc rc!.!ulatinl! pawn shops. (R W)
A.
REFERENCE AND BACKGROUND:
At the request of the Wright County Sheriff's Department, the City Council agreed to establish a
new ordinance regulating pawn shops at the October 91h council meeting. The ordinance adopted
was 1ashioned after an ordinance the city of Minneapolis had, and it included language and
provisions that required pawn shops to be connected electronically to the Minneapolis system for
tracking transactions.
Although I had notified Walt's Pawn and Gun Shop that the Council was considering this
ordinance, owner, Temple Barsness, of Brainerd, did not receive notice of the ordinance until after
it was adopted. She appeared at the October 23,<1 council meeting and requested that the City
Council consider reviewing the need for this new ordinance and allowing her a chance to give her
input on the cost of automating her local shop. Since adoption of the ordinance, I have had
numerous conversations with Ms. Barsness in relCrence to the context of the ordinance and the
cost she would incur to automate. 1 have also had conversations with Detective Paul Johnson of
the Wright County Sheriffs Department to clarify exactly what costs there would be to the City,
Sheriff's Department and/or Walt's Pawn Shop to hook up to the APS system in Minneapolis. To
c1arily, the City of Minneapolis will charge either the City of Monticello or our local police
department (in this case SheritT's Department) the one time hook up fee of $1,050 setting up both
the Sheriffs Department and the local pawn shop as a participant in Minneapolis's database.
Should thcre ever be any additional pawn shop licenses in Monticello, there would not be any
additional hook up tees charged to the City or to the Sheriffs Department.
As the ordinance was written, it was assumed by myself that there would not be any cost to the
City of Monticello by establishing this ordinance and that any hook up fees or charges billed by
the City of Minneapolis would be the responsibility of the pawn shop and/or Sheriffs Department.
As I found out, the Sheriffs Department does not intend to be responsible for the $1,050 hook up
fee, and it was assumed that the City would require Walt's Pawn Shop to pay this fee. Many
communities that bclong to the Minneapolis APS system have an annual license fee that likely
COvers the local police department cost of connecting to Minneapolis's system, and it is
suggested that we amend our ordinance to also establish an annuallCe to cover this $1,050 cost.
This could be accomplished in a number of ways such as establishing the first year's fee at $ I ,050
and thereafter at a nominal amount or if the Council thought this fee was too excessive for a
license, a smaller fee could be establ ished on annual basis in the hopes of recovering the hook up
fee over a number of years. In any case, if we are to retain this ordinance, I would assume we
want to pass this cost on to the businesses through a license fee to recapture these costs rather than
through city taxpayers.
Temple Barsness has indicated a nwnher of times that she feels her business does not have enough
volume to support the cost of automating her records and the cost of tying into the APS system in
Minneapolis. Although the actual cost is unknown, it could be anywhere from $3,000-$7,000 for
all of the computer. software, cameras, VCR and other equipment that may be necessary to be in
compliance with all of the conditions in our ordinance. While it may be unfortunate that this
.
Council Agenda - 11/27/00
particular pawn shop does not do as much business as one may do in Anoka or other suburban
locations. the main purpose behind requiring pawn shops to automate is that it will become much
easier for law enforcement personnel to track stolen merchandise and return stolen merchandise to
its rightful owner and to also easily review statewide records to see if the same individual is
pawning items in a number of locations. Recent state statutes have been amended that indicate
if any pawn shop automates in the future, the software has to be compatible and equal in quality
to the system currently used by the City of Minneapolis. While state statutes do not require local
municipalities to require pawn shops to connect to Minneapolis's system, this would be the only
remaining difference between state statutes and our ordinance. It would seem that if $ 1,050 is the
straw that broke the camel's back, the business may not be viable f()f our community or the City
could look at collecting this fee through an annual license over a few years.
I have asked Detective Paul Johnson of the Sheriff's Department and Temple Barsness, owner of
Walt's Pawn Shop to be in attendance at the council meeting to review any concerns they may
have regarding this ordinance. At this time, it would be my recommendation that the ordinance
be amended under the license fee section to establish a fee as determined by the Council each
year. Based on thc discussion at the meeting, one of the following options could be selected.
B. AL TI!:RNA TIVE ACTIONS:
. ,1.
I\L~
~ S \"
t ,,<<
X~: ~)
,~ 4f'!'"'"
~,r 2.
.
Adopt an ordinance amendmcnt to clarity that Section 3-15-7 under license fees be
amended to read that there will be an annual fee established by the City Council.
Rather than stating a license fee in the ordinance, it should be referenced by a fee schedule
and it is one option to establish the fee at $1,050 for the first year a license is issued with
each additional ycar at $25.
Adopt an ordinance amendment establishing a license fee to be determined by the City
Council per its annual fee schedule.
Under this option Council could establish a fee lower than the actual cost incurred by the
City to hook up to the Minncapolis APS system with thc intent of recapturing its cost over
a number ot'years. For example, the annual fee could be $250-$500 per year allowing the
City to recapture its cost within 2-4 years. Each year thereafter could be a minimal $25.
..,
-) .
If the Council felt the ordinance was unnecessary in its entirety, the Council could consider
deletion of the entire ordinance.
This option would put us back to where we werc previously without requiring any type of
licensc for a pawn shop but rcquiring the Sheriffs Dcpartment to manually check records
of transactions from a pawn shop.
.
.
.
c.
Council Agenda - 11/27/00
STAFF RECOMMENDATION:
It is the administrator's recommendation that the lieense fee section of the ordinance be amended
to establish son1e type ofa fee, either the entire $1,050 amount immediately upon the issuance of
a new license or a smaller fee that would reimburse the City over a few years. While I am
certainly aware that automation of all of the records and the requirements of meeting the ordinance
will cost Walt's Pawn Shop money, I believe the merits of automation will outweigh the additional
costs incurred by the shop owner. The simple time savings that can occur through the Sheriffs
Department in looking for stolen merchandise and/or returning items to its rightful owner will
cel1ainly be a benefit to law enforcement. It appears that the requirement fl)f all pawn shops to be
automated in the future will continue and it does appear reasonable to require local pawn shops
to be regulated.
D. SUPPORTING DATA:
Copy of Ordinance Amendment
Letter from City of Minneapolis Police Department
.
.
-
-
ORDINANCE AMENDMENT NO. 357
City of Monticello
Wright County, Minnesota
AN ORDINANCE AMENDING CHAPTER 15, SECTION 3-15-7 TO TITLE III
ESTABLISHING LICENSE FEE FOR PAWN SHOPS
The City Council of the City of Montieello does hereby ordain:
Section I.
The City Code is hereby amended to add the following:
3-15-7: License Fee
(a) The annual license fees for licenses issued under this chapter shall be
as adopted by the City Council.
Section 2.
This ordinance shall become effective from and atter its passage and publication.
Adopted by the Monticello City Council this 271h day of November. 2000.
-'-'-'-"- .-. -- ,,- --".--'.- -- -'--
Mayor Roger Belsaas
A TTI-:ST:
- -'_.,- -'.---...- --,,-._- -'.-...-"- -,---
Rick Wolfstellcr. City Administrator
~1-1\
.
City of Minneapolis
Police Department
License Investigation Division
350 South 5th Street - Room 1 A
Minneapolis MN 55415-1314
Office (612) 673-3002
Fax 673-3399
.
.
www.cLminneapolis_mn.us
Affirmative Action Employer
Recycled paper 30% post consumer waste
October 30, 2000
Mr. Rick Wolfstellar
Monticello City Administrator
505 Walnut Street, Suite I
Monticello, MN 55362
RE: Automated Pawn System™
Dear Mr. Wolfstellar:
As Project Coordinator for the Automated Pawn System, it was my pleasure
to attend the October 9,2000 Monticello City Council meeting where your
new pawn ordinance was unanimously approved. Congratulations, and on
behalf of law enforcement and citizens throughout the State, please pass a
"thank you" on to your council.
Det. Paul Johnson has informed me of some concerns that have since been
raised by Temple Barsnas, owner of Walt's Pawn and Gun, regarding her cost
to implement APS. Here are the facts:
. Monticello (Wright County Sheriffs Office) will be classified as a data
contributing APS user.
. As such, you will be billed a one-time fee of $1 ,050.00. This will
establish your account on the APS system, license Wright County
Sherriff s Office to install and use the APS police software (24x7), and
provide training for their investigators.
. Future monthly billings will reflect the number of billable transactions
your pawn shope s) upload to APS, currently $1.00 per transaction.
As you know, every APS data contributing jurisdiction passes the full cost of
regulating their pawn industry straight through to their shops_ They do this by
adding an additional $0.50 to $1.20 to the $1.00 APS billable transaction fee,
and invoicing their shops for the total amount, monthly. If I correctly
understand Monticello's plan, you will be the only APS agency to charge their
pawn shops only the $1.00 APS fee.
In addition to the one~time $1,050.00 fee that you pass through to them, here
are the other costs that Walt's Pawn and Gun may experience to meet the
ordinance requirements.
\-b
.
.
--
,
· Point-of Sale (POS) software. They can pick from a number of options
ranging in cost from several hundred to several thousand dollars. Most of
the Current APS pawn shops use a POS in the $800.00 to 1,800.00 range,
depending on how many "add-ons" they opted to get (payroll, mailing
programs, etc.)
· Hardware requirements are set by the POS, not APS, and all but one of
them will run on a low-end personal computer such as a Pentium 200.
These are pretty typical of the types of computers taken in by pawn shops
and I know of several who are running their businesses on a forfeited Pc.
In a phone conversation with Ms Barsness on October 26th, she told me she
plans to use an "out of pawn" computer in her Monticello location. This
could lower her total cost of hardware to several hundred dollars. Even if she
buys new, her total costs should still be several thousand dollars less than the
$4,000.00 to $6,000.00 she has claimed.
In addition to the timesavings and increased efficiencies Det. Johnson testified
to at Council, APS will also increase the identification and recovery of stolen
merchandise and the person(s) responsible. Since implementing APS in
Minneapolis, our recover rate for stolen items has increased over 300%.
I trust this information will be of value to you and will be happy to address
any additional concerns or questions you may have.
Sincerely,
~
Lt. Phil Hafvenstein
C.C.: Det. Paul Johnson
.....
l-.B
~...,~", ~. ~ .' :,:.,"'---"-------
_ ..I.;....,..c:r:
.
.
.
Council Agenda - 11/27/00
8.
Consideration of adoption of assessment roll for CSAH 75 Project No. 98-17C. (R W)
A. REFI;~RENCE AND BACKGROlJND:
A public hearing was held on October 23,2000 to consider adoption of assessments against
benefitting property related to the CSAH 75 Improvement Project. Because a number of
individuals had raised concerns with their proposed assessments, the Council delayed adoption
of any assessments relating to this project until the City Engineer had a chance to review the
assessments and/or discuss the assessments with the property owners.
Property owners who raised objections at the Council meeting included: John Bondhus. School
District #882, Kean of Monticello, and Gladys Hoglund. In addition to the individuals noted
some property owners near Washington Street were also proposed to be assessed for curb and
gutter replacement and since the Council was going to be having a workshop to discuss future
assessment policies for reconstruction projects, it was decided to simply delay the entire
assessment roll until November 2T".
The following is a brief SUmll1ary of any review and/or modifications that are recommended tlW
individual assessments that have been reviewed and additional recommendations willlikcly be
available Monday night ll)r the Council to consider.
John Bondhus (Bondhus Tool) - Mr. Bondhus questioned an assessment lor $5.295
against a smaller triangular parcel between CSAII 75 and Hart Boulevard. Although the
property has little value for tax purposes, upon review, it docs appear that this property
could be developed into a parking lot fiJr fifty spaces or would have enough room for a
small building and therefore. it is reconul1ended that the assessment of $3.898.56 is
justifiable.
Mr. Bondhus also questioned curb and gutter assessments few his business and the cost
of the water 111ain that was extended to service the property. The Llcility did not have
curb and gutter nor water available in the past and this project provided both to the
property. Upon further review of the water main assessment, it is recOll1mended that
only half the cost to install a 10" water main be applied to the Bondhus Corporation
which would reduce the assessment flJr water by $5.458. It is recommended that the
balance of $52.494.63 be assessed as proposed.
Finally, an adjustment was made adding additional footage to Bondhus Corporation
frontage and deleting the proposed assessment from Gladys Hoglund. The County tax
records had the property owned by Gladys 11og1und, however, the I loglunds indicated
the parcel has been sold to Bondhus.
School District #882 - The School District had originally questioned the assessment for
curb and gutter that fronted along an area that will eventually be used by the City for a
pond. Although the City will be attempting to acquire an easement tl)), $17,000 fi-om
the School District fiJr ponding purposes, it is recommended that the curb and gutter
assessment remain as is since the property did not have curb before.
.
Council Agenda - 11/27/00
The School District also questioned the assessment for water main improvements, and
upon further review the engineer is recommending the assessment be lowered by
$4,722 to reflect a similar cost to other rcsidential properlies that had existing water.
Kean of Monticello - The property owners have appealed their assessment for the
frontage road and storm sewer assessments as they feel it did nol improve the property
values by the amount proposed. As you may rccall, the City had originally obtained a
signed agreement from Kean of Monticello indicating that half of the cost of the
right-of-way acquired by the City for this projcet would be assessed back to thcm.
Kean was paid $83,000 fiJr the right-of-way acquired and half of this amount or $41,500
was assessed agai nst the parcel. The staff has met wi th Dean Hoglund and Ken
Schwartz to review their concerns and it does not appear that we will be able to arrive at
an assessment amount that they fcel is acceptable. During the review, the front ll)otage
was reduced on their parcellhat would lowcr the curb and gutter assessment by $4,211,
making the total assessment $55,672.
.
It appears that the City has two options, (1) to adopt the assessment roll as modified or
(2) obtain our own appraisal of before and aft.er values of the property to support the
proposed assessment. If the Council feels it is important to have the appraisallirst, the
asscssment could be delayed until the appropriate appraisal is obtained.
Gladys Hoglund - The Hoglunds appealed their assessment based on a proposed
assessment f()I" water main in the amount 01'$7,356 since their propcrty was serviced
previously by water at the northeast corner through a differcnt project. The watcr main
was originally extended along CSAII 75 in front of the Iloglund property to provide
easier access for water in the future, but the Council could defcr the watcr main
assessmenl until such time as the property would make a connection to the water line.
This would be the recommendat.ion of the stalf and engineer and would reduce thc
init.ial assessment for the Hoglund propcrty from $14.131, to $6.775.
Assessment Workshop Discussion
.
Based on the workshop session last Thursday, it appeared to be the consensus of the Council
that curb and gutter replacements on street rcconslruction projects should not be assessed and
will be picked up by ad valorem taxes paid by all residents of the city. As a result of this
discussion, the engineer has rccalculated assessments for curb and gutter relating to five
residential properties on the north side of Broadway between Washington Street and Dayton
Street. Although it was not discussed in detail, a question rcmains as to whether thc Council
intends to apply a no assessment policy to all properties, even tax excmpt parcels that will not
pay property taxes in the futurc. for example, both thc Monticcllo Hospital and also the School
l)islrict do not contributc any property taxes to help pay f()r street reconstruction projects and
the Council may want to retain the ability to charge assessments to tax cxempt properties that
receive bencfits of improved strect projects.
In light of the fact that tax exempt propcrties would not be paying any p0l1ion of reconstruction
projects through taxcs. an assessment roll being prepared by the engineer does show both
.
.
Council Agenda - 11/27/00
options, one assessing the hospital and school district for replaccment curb and gutter and one
without. This is a dccision the Council can review Monday night beJ()J'e final adoption of the
assessment roll.
B.
ALTERNATIVE ACTIONS:
I. The Council could adopt the assessment roll for the CSAH 75 Project as modified by
the City Engineer for the parcels noted with the elimination of curb and gutter
assessments for properties that had curb and gutter previously.
Under this alternative, tax exempt entities such as the hospital district and school district
would also be excluded from paying for any portion of street reconstruction costs,
including curb and gutter replacement.
2. The Council could adopt an assessment roll as modified by the engineer with the curb
and gutter assessments to remain against tax exempt properties, i.e. school district and
hospital district.
3. The Council could adopt an assessment roll with further modifications from those
recommended by the City Engincer.
c.
ST AFF RECOMMENDATION:
The Council consensus to place curb and gutter replacements on reconstruction projects on ad
valorem taxes rather than assessing benefitting properties directly is proposed in this
assessment roll with the exception of the hospital district and school district parcels. Since
these entities will not pay any property taxes to help offset the cost of these reconstruction
projects, it is recommended that exempt properties still be assessed for a portion of these
replacement costs. The additional adjustments that have been proposed by the engineer in
reviewing the specific parcels that had questioned their assessments during the initial public
hearing are recOIn mended for adoption. The City Engineer will have additional inl<-mnation
available at the meeting for Council review.
D. SUPPORTING DATA:
.
Copy of modified assesSlnent roll
Assessment review summaries for specific parcels
Nav 21 00 02:3Sp
320-252-3100
p.9
.
CSAH 75; City Project 98-17C
Assessment Review
PID Owner Address Assessment
25 155~011-000061 Independent School District 882 PO Box 897, Monticello MN 55362 $ 7,662.10
26 155-011-000062 Independent School District 882 PO Box 897, Monticello MN 55362 $ 1,138.64
-
27 155-011-000 172 Independent School District 882 PO Box 897, Monticello .MN 55362 $59,688.25
The Independent School District 882 has appealed their assessments based on the
assessment to Parcel No. 155-011-000061. This parcel is the 4.3 acre area that the City
has agreed to pay the School District approximately $17,000 for an easement for a
proposed detention pond.
The assessment for parcel 155-011-000061 is for curb & gutter.
The only portion of the school property that was assessed for watermain is the main
parcel that contains the building itself. The watermain assessment has been revised to
reflect an assessment similar to the other residential properties that had existing water
service. By this method thc watermain assessment for parcel 155-011-000172, will be
lowered by $ 4,722.57.
" .
.
The City Council has agreed to no assess for curb & gutter where there previously was
curb & gutter. This will eliminate 770 1.f. of curb & gutter from the School's assessment
for parcel 155-0 11.000 172 by $10,006.30.
The total reduction in assessments for Parcel No. 155-011-00172 amount to $14,728.87.
Revised Assessments
PID Owner Address Assessment
25 155-011-000061 Independent School District 882 PO Box 897, Monticello MN 55362 $ 7,662.10
26 155-011-000062 Independent School District 882 PO Box 897, Monticello MN 55362 $ 1,138.64
- $44,959.38
27 155-011.000172 Independent School District 882 PO Box 897, Monticello MN 55362
-...-.-
.
o
Nav 21 00 02:35p
320-252-3100
.
CSAH 75; City Project 98-17C
Assessment Review
Bondhus, John R. REV TRUST
1349 Hart Boulevard, Monticello MN 55362
Parcel No. I 55-0 11-000031
Map No. 24
Curb & Guttcr Assessmcnt
Storm Sewer Assessments
Waterrnain Assessment
Total Assessment
$13,670.95
$ 13,557.41
$ 29,012.57
$63,868.47
Mr. Bondhus questioned the added value to this parcel.
.
This parcel is the main building site for the Bondhus Corporation. This project included
the addition off curb & gutter to the entire length of this parcel and added a protected left
turn lane from the east at the entrance to the loading dock area for the Bondhus Corp.
I J
Watermain was installed to provide service to the main building. Bondhus Corp. was
previously served by a private well. The watennain installed will provide adequate flows
for production and fire protection purposes.
The watermain assessment was calculated based 12121.f. of 6" watermain. The installed
watermain was a 12" diameter, which provides substantially greater supply and fire
protection capabilities than a 6" watermain.
The total length of the watennain was assessed to the Bonhus Corp. because the
properties directly across from this parcel already had water service.
It has been decided that only ~ the cost to install a 10" watennain according to the City
of Monticello assessment policy at a rate of $30.l3/L.F. or $15.07 to Bondhus Corp. pcr
foot. This will reduce the watennain assessment from $29, 012.57 to $ 23,553.71 for a
reduction of $ 5,458.86.
Based On a site map provided by the Bondhus Corporation, to the City of Monticello the
actual frontage of the Bondhus Corporation is 1] 41.17 feet and the area of the parcel is
173,479.7 S.F. Previously the front footage and area were taken from the County maps.
The watermain, curb & gutter and storm sewer assessments have been revised to reflect
the changes in front foot and area calculations.
.
The revised assessment will be as follows:
Curb & Gutter Assessment $14,829.73
Storm Sewer Assessments $ 14,121.19
Watermain Assessment $ 25,533.71
Total Assessment $ 52,484.63
p.4
~
~
Nov 21 00 02:35p
.
.
.
320-252-3100
CSAH 75; City Project 98-17C
Assessment Review
Bondhus, John R. REV TRUST
1349 Hart Boulevard, Monticello MN 55362
Parcel No.155-0 11-000060
Map No. 13
Curb & Gutter Assessment
Storm Sewer Assessments
Watennain Assessment
Total Assessment
$3,898.56
$1,396.82
$0
$5,295.38
Mr. Bondhus questioned the added value to this parcel based on what he felt was a non-
developable parcel.
This parcel is triangular in shape and is approximately 700 feet in length abutting both
CSAH 75 and Hart Boulevard. The width of this parcel on the west end is approximately
90 feet in depth.
For assessment purposes I had determined that approximately 300 feet of this parcel was
developable based on the dimensions required for a parking lot and therefore limited the
curb & gutter assessments to 300 L.F.
The storm sewer assessment has been dropped from this parceL The drainage from this
parcel drains toward Hart Boulcvard and any future storm sewer improvements on Hart
Blvd. would be assessed to this parceL
I have laid out a parking configuration on this parcel and determined that approximately
50 parking spaces could be COIl.StJ:ucted on this parcel and therefore feel that the
assessment of $3,898.56 is justifiable.
Revised assessments as follows:
Curb & Gutter Assessment $3,898.56
Storm Sewer Assessments $0
Watermain Assessment $0
Total Assessment $3,898.56
~
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Nov
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21 jOJ02:35P
1 i
! . ~SAH 75; City Project 98-17C
! ~ssessment Review
320-252-3100
The assessed value of this parcel for tax pUIposes is $ 950,700. The increased value of
this parcel due to assessments would equal 5.5%.
Bondhus, John R. REV TRUST
1349 Hart Boulevard, Monticello MN 55362
Parcel No.1 55-011-000030
!Map No. 23
This parcel is listed in the County tax books as being owned by Hoglund, however the
Hoglund's have supplied a survey that indicates that the Hoglund's no longer owns the
parcel in question. It appears there has been a sale of a portion of this parcel property to
the Bondhus Corporation with a remnant parcel of 0.02 acres still owned by Hoglund. It
appears the footage for this parcel has been included in the front footage for Parcel No.
1 55-011-000031 according to the site plan of the Bondhus Corporation and the remnant
of this parcel 155-011-00030 has no frontage on CSAH 75 and therefore will be deleted
from the assessment roll.
p.5
'3
Nov 21 00 02:35p
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320-252-3100
CSAH 75; City Project 98-17C
Assessment Review
Cheryl Steinmetz
913 Broadway E, Monticello, MN 55362
Parcel No.155-015-025030
Curb'& Gutter Assessment
Storm Sewer Assessments
Watennain Assessment
Total Assessment
$ 0
$ 860.24
$ 1,539.68
$ 2,399.92
Ms. Steinmetz letter regarding the assessments was did not oppose the assessments as
presented, but more of an inquiry as to what the assessments were going to be. She is
selling her house to the hospital and needs to know the [mal number for that sale.
Ms. Steinmetz also expressed her frustration with the project in general and submitted a
bill in the amount of $150.00 for repair of an outside water faucet that she claims was
damaged during construction.
I will submit this bill to the General Contractor, RL Larson Inc.
The curb & gutter assessment has been dropped from dus parcel at the request of the City
Council. '
p.s
t
Nov 21 00 02:36p
320-252-3100
p.?
.
CSAH 75; City Project 98-17C
Assessment Review
PID Owner Address Assessment
155-011-000010 Hoglund, Gladys R. (Home) 1501 Broadway E., Monticello MN 55362 $ 14,131.62
The owners of this parcel have appealed their assessments based on the watermain
,
assessment.
This parcel currently is not connected to the City of Monticello water system. The parcel
could be served by a watermain that was installed previously at the rear of the project
The Hoglund's were assessed for this watermain previously.
It has been decided that the watennain assessment for this parcel should be deferred
without interest until such time that a connection is desired. The amount of the deferred
watermain assessment is $7.356.31.
This would reduce the total assessment for this parcel from $14,131.62 to $ 6,775.31.
.
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Nov 21 00 02:3Sp
V
320-252-3100
p.8
.
CSAH 75; City Project 98-17C
Assessment Review
PID Owner Address Assessment
25 155-037-001010 Kean of Monticello PO Box 1274, Monticello MN 55362 $ 59,883.02
~
Curb & Gutter Assessment
Misc. Assessment (road & RJW)
Stonn Sewer Assessments
Watermain Assessment
Total Assessment
$ 4,211.35
$54,102.59
$ 1,569.07
$ 0.00
$59,883.01
The owners of this parcel have appealed their assessments based on the increased value
of their property.
.
I have reviewed these assessments and discovered that curb and gutter was included in
the Misc. Assessment for this parcel and therefore the curb & gutter assessment for
CSAH 75 should not be assessed against this parcel because they do not front on CSAH
75. This will reduce the curb & gutter assessments from $ 4,211.35 to $ 0.00.
The total assessment for this project should be reduced to $55,671.66.
Kean of Monticello is also appealing based on the assessment for Y2 the cost of the Right-
of-Way acquired by the City. The '.Assessment Policy" clearly states in Section 13-1-1-
(A) (8) that land acquisitions are an assessable itcm. Kean was paid $83,000 for the
acquired Right-of-Way and 'is ofthis amount or $41,500 was assessed against the parcel.
, The remaining $12,602.59 was for 'is the cost to construct the frontage road.
A meeting was held with the property owners and they are asking for a 50% reduction in
~e oterall assessment.
II was decided to have a before and after assessment completed by an independent
appraiser who is qualified in this type of appraisal.
.
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Council Agenda - 11/27/00
9.
Consideration of arcels removed from assessment rolls for further review and
adoption of supplemental assessments. (RW)
A.
REFERENCE AND BACKGROUND:
A few individual parcels that were proposed to be assessed on various projects were tabled to
allow the engineer to meet with the property owners and/or obtain additional information for
clarification. In order to meet the November 30lh deadline for adoption of the new assessment
rolls, it is recommended that the Council adopt supplemental assessments for the various
projects as outlined below:
Chelsea Road West - Project 98-25C Project
Three property Owners had provided oral and written notice of appeals on their various
assessments, mainly relating to storm sewer assessments. They include lay Morrell, Tod
Swanson of Monticello Athletic Club and John Erlandson of Southside Dental Clinic.
The following are recommendations for each of these parcels:
.Jay Morrell - Questioned storm sewer assessment and a second assessment related to the
J/wy 25 Project Mr. Morrell was informed that one of the assessnlents was l()t, a sanitary sewer
replacement and only one other assessment related to storm sewer. No adjustment was
[ll/.-. proposed for this assessment. It was recommended to remain $1 A] 0.50 as proposed.
Tod Swanson - Monticello Athletic Cluh- Mr. Swanson also questioned the storm drainage
assessment and no modilications are reconHl1ended by the engineer to the assessment of
elL $5,171.83. As an additional note, Mr. Swanson did drop 011" a notice of appeal of the special
assessment that he indicated he may fi Ie with district court objecting to the assessment.
.John Erlandson - Southside Dental Clinic - Mr. Erlandson also questioned the storm sewer
assessment but also noted an error in the acreage of the property he owned. The City Engineer
o-./- is reviewing the acreage and will likely be recommending a modification to the storm sewer
assessment to rellect the actual property he owns. As a result, the current assessment proposed
of $3 ,216. 93 may be adjusted lower.
Chelsea Road East Project 98-08C
Lee Parks - Questioned how the footage was determined lor arriving at his sanitary sewer
assessment for his property along Oakwood Drive south of the lumber yard. At this time it is
not recommended that any adjustment be made to the assessment and it is the intention of the
City Engineer to review how the assessment was arrived at in more detail with Mr. Parks.
TH 25 - Project No. 96-04C
Assessments for three parcels within the city were delayed to allow l()r more information to be
.
Council Agenda - 11/27/00
gathered and to meet with the individuals. Mr. Glen Posusta, Mr. Dan Mielke and Mr. Kent
Kjellberg have provided written and/or oral questions relating to their assessments. The
following is a summary of the assessments being reviewed:
Glenn Posusta - Objeeted to the amount of his assessments for the Dundas Road extension that
{j~ was added to the TH 25 Project at his request. The change order was executed with the
contractor to construct a bituminous extension of Dundas Road to service his Amaxx Storage
facility. In reviewing the assessment, it appears that a reduction can be made for storm sewer
assessment, but the exact amount is unknown at this time. Mike Nielson of WSB will be
reviewing this revision with Mr. Posusta and a recommendation on a final dollar amount will
be presented later. As a reminder, this change order was initiated by petition of Mr. Posusta
and the dollar amount had been discussed prior to the change order being initiated. As a result,
it is recommended that the assessment be adopted as modified by the City Engineer.
0\[
D~m Mielke - Questioned how the front footage was arrived at on Chelsea Road East as it
pertained to property owned by himself, Mielkc Brothers LLC and his father. The City
Enginecr is also reviewing the front tl.Jotages and an adjustment to the assessment may result
li'om this review. It doesn't appcar that the cost of thc assessment is in question only that the
correct li'ont footage is used tl..Jr detcrmining the amount assessable. The City Engineer will
have more inf()rmation available on the recommended final assessment Monday night.
.
K.iellbergs Inc. - Provided written opposition to the proposcd storm sewcr assessment relating
to the east mobile home park. It is recOIn mended by the City Engineer that the storm sewer
0(., assessment remain as proposed as the assessment seems reasonablc and thc original objection
also related to a Inissing number in the parcel identification number. A second notice was sent
to Kjellberg indicating that the parcel number was corrected but that the assessment proposcd
would remain as originally calculated. As an additional note, any assessmcnts proposed Cor
propcrty that is in the township wi II not be assessed until such time as the property is annexed
into the City. Both Daryl Cardinal and Kjellberg West Mobile Home Park are proposed to
receive storm sewer assessments in the futurc, ifand when, they are anncxed into thc City.
B. ALTERNATIVE ACTION:
Chelsea Road W cst Pro.ject 98-25C
I. The Council could adopt the assessment roll as recommended by the City Engineer tor
thc Jay Morrell parcel, MOlltieello Athletic Club and John Erlandson, Southsidc Dental
Clinic.
2. The Council could adopt a modified assessment roll from that proposed by the cnginccr.
-
-
Chelsea Road East Project 98-08C
] . The Council could adopt the assessment roll as proposed for sanitary sewer assessment
for I,ee Parks as recommended by the City Engineer.
.
.
-
-
Council Agenda - 11/27/00
2.
Adopt a modified assessment roll lor this parcel.
TH 25 Pro.ject 96-04C
I. The Council could adopt assessment rolls for the Glen Posusta parceL Dan Mielke
parcel and Kjellbergs Inc. parcels as outlined by the City Engineer.
2. The Council could adopt an amended assessment roll for any of the parcels noted.
C. STAFF RECOMMENDATION:
Based on the review provided by the City Engineer and in consultation with city staff: it is
recommended that the assessment rolls be adopted as proposed by the City Engineer's
modifications. The recommendation applies to all of the tabled assessments outlined above.
The City Engineer will be providing additional inlurmation regarding specific parcels at
Monday night's meeting.
D.
SUPPORTING DATA:
Assessment Review Summaries
Resolutions
Mev 15 00 04:0Sp
320-252-3100
.
Chelsea Road East: City Project No. 98-08C
Assessment Review
Lee Parks
Parcel No.155-500-142401
Curb & Gutter Assessment
Storm Sewer Assessments
Watennain Assessment
Sanitary Sewer Assessment
T ota! Assessment
$ 0.00
$ 0.00
$ 0.00
$16,422.24
$ 16,422.24
Mr. Parks questiontl the total cost of the Sanitary Sewer and the method of determining
cost. 1bree parcelsJsplit the cost for the sanitary sewer constructed on Oakwood Drive.
The feasibility report for this portion of the project only identified two benefiting parcels.
Mr. Mathwig is sharing in the cost of the construction of this sewer line, which reduces
the cost to Mr. Parks.
The attached spreadsheet shows the units and cost per unit charged for each of the
benefiting property owners. The last column shows the cost to Mr. Parks if the cost was
split by the original two parcel owners identified in the feasibility report.
.
This cost is $19,188.77 or $2,766.53 higher than his proposed assessment.
I will be meeting with Mr. Parks to review the costs with him.
.
p.?
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Nev 21 00 04:04p
320-252-3100
p.2
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.
TH 25; City Project 96-04C
Assessment Review
Glenn Posusta
Parcel No.1 55-094-00 1020
Map No. 25
Curb & Gutter Assessment
Storm Sewer Assessments
Sanitary Sewer
Watermain Assessment
Special Assessment
Total Assessment
$8,821.31
$2,967.77
included in Special Assessment
Included in Special Assessment
$43.041.16 (Extension of Dundas Road)
$54,830.69
Mr. Posusta objected to the amount of his assessments for Dundas Road. Mr. Posusta
asked the City to extend Dundas Road and was given an estimate of cost when the change
order was written for the extra work.
An agreement was made with the City to construct the road with the City paying for !tS of
the cost of the roadway to be assessed against the City parcel directly across the road.
.
I have reviewed this assessment and discovered that no reduction in storm sewer cost was
made for the trunk storm sewer. Deducting the trunk storm sewer cost from the overall
special assessment for the extended roadway reduces the assessment from $43,041.16 to
$38,393.12.
Mr. Posusta was originally told that his cost for this portion of extended roadway was
$30,770.88 (council meeting 7/26/99). The additional cost is attributable to two items; 1-
Mr. Posusta asked that sod he included with the project. Mr. Posusta was originally
going to sod the disturbed areas himself. This added amount is $1,740.00; 2- the original
cost estimated used a 28% LEAF charge and the actual for the project was 35%.
Original construction cost = $30,770.88 = $24,039.75
1.28
Estimated Cost
Original Construction Cost = $24,039.75
Added Sod Cost = $1,740.00
Sub-total Construction = $25,779.75
Actual Cost
Actual Construction Cost
Added Sod Cost
Sub-total Construction
LEAF (35%)
Total Assessment
= $28,439.35
=
= $28,439.35
= $9,953.77
= $38,393.12
.
The construction cost difference for this project is $2,659.60 and the other overruns were
attributable to the increase in LEAF from 28% to 35%. The other assessments for this
parcel were for the piece of land between TH 25 and the future extension of Cedar Street.
The overall reduction in assessments for Mr. Posusta will he $ 4,648.04. His total
assessment will be $50,182.20
C}
Nov 21 00 04:15p
320-252-3100
p.2
.
TH 25; City Project 96-04C
Assessment Review
Linda & Daniel Mielke
Parcel No. 155-094-00 1020
Map No. 25
Curb & Gutter Assessment
Storm Sewer Assessments
Watennain Assessment
Total Assessment
$12,191.37
$857.63
$0
$13,049.00
I have reviewed the assessed footage for this parcel and reduced the assessable footage to
132.04 feet. The total assessment to this parcel will be $11,642.50.
Linda & Daniel Mielke
!Parcel No.1 55-094-001030
Map No. 29
. This is the Ultra Lube site. I have reviewed the assessments for this parcel and have
adjusted the front footages to meet his actual ownership of26.56 feet. The assessments
for will be adjusted to 52,684.58.
'J
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Nov 21 00 02:3?p
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RESOLUTION 2000-86
RESOLlJTION ADOPTING ASSESSMENT
CHELSEA ROAD WEST/GROVELAND
SUPPLEMENTAL ASSESSMENT
PROJECT NO. 98-25C
WHEREAS, pursuant to proper notice duly given as required by law. the Council has met and heard
and passed upon all objections to the proposed assessment for the improvement of Chelsea Road
Wcst from Sandberg Road to 90th Street by the construction of bituminous streets with concrete curb
and gutter, sanitary sewer, watermain, storm sewer and appurtenant improvements including the
construction of pond outlets and trunk improvements for the Groveland subdivision,
NOW, THEREFORE, BE IT RESOL VEn BY THE CITY COUNCIL OF MONTICELLO,
MINNESOT A:
1. Such proposed assessment. a copy of which is attached hereto and made a part here01~ is
hereby accepted and shall constitute the special assessment against the lands named therein,
and each tract of land therein included is hereby found to be benefitted by the proposed
improvement in the amount of the assessment levied against it
2.
Such assessment shall be payable in equal annual installments extending over a period often
years, the first of the installments to be payable on or before the first Monday in January, 2002
and shall bear interest at the rate of 6.5 percent per annum from the date of the adoption of
this assessment resolution. To the first installment shall be added interest on the entire
assessment from the date of this resolution until December 3 L 2001, To each subsequent
installment when due shall be added interest for one year on all unpaid installments,
.
3. The owner of any property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the whole of the assessment on such property. with
interest accrued to the date of payment, to thc City Treasurer, except that no interest shall be
charged if the entire assessment is paid within 30 days fi'om the adoption of this resolution;
and he may, at any time thereafter, pay to the City Treasurer the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such
paymcnt is made, Such payment must be made before November 15 or interest will he
charged through December 31 of the next succeeding year.
4. The clerk shall f(xthwith transmit a certified duplicate of this assessment to the county auditor
to he extended on the property tax lists of the county, Such assessments shall be collected and
paid over in the same manner as other municipal taxes,
Adopted by the Monticello City Council this 27th day of November, 2000.
. ATTEST:
Roger Hclsaas, Mayor
Rick WolfstelIer. City Administrator
q
.
RESOLlJTION 2000-87
RESOLUTION ADOPTING ASSESSMENT
CHELSEA ROAD EAST EXTENSION
SUPPLEMENT AI., ASSESSMENT
PROJECT NO. 98-08C
WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard
and passed upon all objections to the proposed assessment fl.)!' the improvement of Chelsea Road East
by the installation of sanitary sewer, watermain, storm sewer, streets and all other appurtenant work,
NOW, THEREFORE, BE IT RESOL VEn BY THE CITY COUNCIL OF MONTICELLO,
MINNESOT A:
1. Such proposed assessment, a copy of which is attached hereto and made a part hereoC is
hereby accepted and shall constitute the special assessment against the lands named therein,
and each tract of land therein included is hereby found to be benefitted by the proposed
improvemcnt in the amount of the assessment levied against it
2.
Such assessmcnt shall be payable in equal annual installments extending over a period often
years, the first of the installments to be payable on or before the first Monday in January, 2002
and shall bear interest at the rate of seven 0.0) percent per annum from the date of the
adoption of this assessment resolution. To the first installment shall be added interest on the
entire assessment from thc date of this resolution until December 31, 2001. To each
subsequent installment when due shall be added interest for one year on all unpaid
installmcnts.
.
3. The owner of any property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the whole of the assessment on such property, with
interest accrued to the date of payment, to the City Treasurer, except that no interest shall he
charged if the cntire assessment is paid within 30 days from the adoption of this resolution;
and he may, at any time thereafter, pay to the City Treasurer the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such
payment is Illade. Such payment must he made before Novemher 15 or interest will he
charged through December 31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessmcnt to the county auditor
to he extended on the property tax lists of the county. Such assessments shall be collected and
paid over in the same manner as other municipal taxes.
Adopted hy the Monticello City Council this 27th day of November, 2000.
--
ATTEST:
Roger Belsaas, Mayor
Rick Wolfsteller, City Administrator
9
Council Agenda - 11/27/2000
.
10.
Review of options for improvementto CSAH 75. Otter Creek to Washington Street. and
consideration of a resolution supportinu a variance application from MnlDOT State
Aid Standards. and consideration of setting a public informational meetinu for
January 8.2001. (1.S.)
A.
REFERENCE AND BACKGROUND:
After the public informational meeting and council workshop held in September and Oetober, the
project management team has been earefully weighing the comments from the citizens and the
council's directions and looked at numerous options for the proposed improvements to CSAH 75.
Specific goals were set based upon the need to improve safety on the highway, address the concerns
of the citizens, meet the expectations of the council, and control costs.
.
Numerous alternatives or options were discussed. Seven options were looked at in great detail,
including the ability to meet the project goals. Three of the options came the closest to meeting the
goals. Only one option meets all of our goals and has the least impact on the citizens of Monticello
in regard to inconvenience and cost, and maintains the existing outside curb configurations. This
option, however, would require a variance from Mn/DOT State Aid Standards in regard to minimum
parking lane width of 8 12' versus 10' and minimum median width at the turn lane of 3' versus 4'.
Before we can consider one of the other alternatives which has greater cost and more impact on the
residents along Broadway, we must first determine whether or not state aid will grant a variance
request. Consequently, that would be the first step. A copy of the options studied are included for
your review.
B. ALTERNATIVE ACTIONS:
1. The first alternative, after reviewing all the options, would be to adopt the resolution
requesting two variances from the Mn/DOT State Aid Standards for option #1, leaving the
curb configuration in place and calling for a public meeting at 5:30 p.m. on Monday,
January 8,2001, at which time the city should know of the outcome of our application for a
vanance.
2. The second alternative would be to not apply for a variance and to proceed with the public
informational meeting on Monday, January 8, and present the other options to the citizens of
Monticello.
C. STAFF RECOMMENDATION:
.
It is the recommendation of City staff and Project Management Team that the City Council select
option #1 and apply for two variances to Mn/DOT State Aid Standards in regard to the parking lane
width and the minimum median width at the left turn lane. We should have the results ofthe variance
request back prior to Christmas and can put together data fl.)!' the public informational meeting to be
held on January 8,2001.
.
.
.
---.....,..
Council Agenda - 1 1/27/2000
D.
SlJPPORTING DATA:
Copies of proposed options, project cost data and reliever road costs. Copy ofletter from WSB and
trat1ic volume maps. Copy of the makeup of the Project Management Team. Copy of resolution.
.
.
.
.
WSB
8441 Wayzata Boulevard, Suite 350
Minneapolis, MN 55426
B.A. Mittelsteadt, P.E.
Bret A. Weiss. P.E.
Peter R. Willenbring. P.E.
Donald W. Sterna. P.E.
Ronald B. Bray. P.E.
tel: 763-541-4800
fax: 763-541-1700
& Associates, Inc.
Memorandum
To:
Monticello City Council and Wright County Board
From:
,'\
Ronald B. Bray, P.E.Q1Y)
WSB & Associates, Inc.
Date:
November 20, 2000
Re:
Executive Summary of Proposed Construction Project
CSAH 75: Otter Creek to Washington Street
City of Monticello, MN
C.P.2000-13C
WSB Project No. 1282-002
Wright County is proposing a reconditioning project for County State Aid Highway (CSAH) 75
(Broadway)from Otter Creek to Washington Street, a total length of approximately 1.9 miles. The City has
proposed to take this opportunity to replace its infrastructure as deemed necessary. The existing safety and
capacity of the roadway were then examined to determine whether design modifications would be
necessary.
The following are summaries of the main discussion points.
· Crash Data I Safetv
The crash rate on CSAH 75 in the project area is about the average for similar type roadways. However,
the severity rate is approximately double the average for similar type roadways. This means that when a
crash occurs, it is more likely that injuries are involved. Many ofthese crashes are of a rear end type,
which can be attributed to the lack of protected left-turn channelization. It is desirable to include left-turn
channelization in the typical roadway section for CSAH 75 to improve safety.
· Traffic Volumes
The average traffic volumes on the roadway are 13,600 to 14,500 vehicles per day. The City of
Monticello would like to maintain the residential character ofCSAH 75 throughout the City. This can only
be accomplished through the construction of transportation reliever roadways which have been identified as
alternative routes to CSAH 75 to hold the traffic at its current levels. These include projects such as east
Th Street, west 7th Street, Fallon A venue Bridge, CSAH 18 ramps at 1-94, etc. These projects can assist
in keeping the future volume of Broadway in the 18,000 vehicles per day range. The City has identified
approximately $7,OOO~000 of construction dollars to construct these roadway relievers. lfthese roadways
Minneapolis · St. Cloud
Infrastructure Engineers PlIJnners
EQUAL OPPORTUNITY EMPLOYER F:\WPW/NI/181-00Iexecsumm-MEMO.wpd
.
.
.
County State Aid Highway 75
Monticello, Wright County
November 20,2000
Page 2
are not built, the traffic volumes on CSAH 75 are anticipated to double in twenty years to 29,000 to
30,000 vehicles per day.
· Level of Service
Adequate roadway capacity requires two (2) through lanes in each direction. The left-turn channelization is
required to allow the lanes to cany traffic and provide increased efficiency and improved safety. Currently,
the capacity of the inside lanes is reduced by left-turning vehicles in both directions_
· Public Comment
A public information meeting and council workshop were held in September and October, respectively, to
discuss the proposed removal of parking to facilitate a 5-lane divided roadway. There was strong public
opposition to the removal of parking at this meeting. Subsequent comments include concerns relating to the
proximity of moving traffic to pedestrians and residences (i.e. buffer zone), concerns with the closure of
through streets to accommodate the left-turn channelization, concerns about the cost of a landscaped
median and concerns about assessment costs.
· Progress and Resolution
A Project Management Team (PMT) was formed with representatives from Wright County, the City of
Monticello, the Design Advisory Team, Mn/DOT and WSB & Associates. This team met to evaluate the
roadway typical section for the proposed CSAH 75 reconstruction. Numerous alternatives were
developed for review by the Project Management Team. The alternatives were compared to Goals
established by the PMT. (See Attached) A preferred alternative was developed and is attached as Typical
No.1. This alternative will require a Variance from MnlDOT State Aid Operations Rules Chapter 8820.
This is a legal process in which Wright County will need to appear before a review board and explain why
the variance is being requested. The City Council will need to support the State Variance Process if it
determines the preferred alternative is a feasible option.
· Cost
The estimated cost, which includes construction and indirect costs, for the preferred alternative is
approximately $3,700,000, of which $1,750,000 is City share and $1,950,000 is County share. Ifa
MnlDOT State Aid VariaIice is not granted, an additional $500,000 is estimated to construct a similar
typical section to standards.
bh
F:I WPW/NI/181-00Iexecsumm-MEMO. wpd
.
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION DO-XX
A RESOLUTION SUPPORTING AND REQUESTING THE PURSUIT OF
A MN/DOT STATE AID VARIANCE FOR THE RECONSTRUCTION OF
COUNTY STATE AID IDGHWAY 75
FROM OTTER CREEK TO WASHINGTON STREET
CITY PROJECT #2000-13C
WHEREAS, the City Council of the City of Monticello has reviewed the alternatives dated November 20,
2000, for the CSAH 75 improvements.
WHEREAS, the City Council of the City of Monticello has received substantial public concern related to
the removal of parking along CSAH 75;
WHEREAS, the City Council of the City of Monticello has received recommendation that the roadway be
constructed two lanes in each direction with left-turn channelization;
NOW, THEREFORE, BE IT RESOLVED, the City Council desires a preferred alternative for County State
Aid Highway 75 (Broadway), which limits construction to the existing width of76 feet and allows parking
to remain (No.6);
.
BE IT FURTHER RESOLVED, the City of Monticello supports and requests that Wright County pursue an
administrative variance from the Minnesota Department of transportation to State Aid rules for expenditure
of State Aid Funds for the reconstruction of CSAH 75 from Otter Creek to Washington Street.
ADOPTED this 27th day of November, 2000.
.
F:\WPWIN\1282-00\112700 resolution.doc
.
RESOLUTION OO-X-xxx
The following Resolution was offered by the Public Service Committee:
BE IT RESOLVED, That the County Engineer be authorized to request the Minnesota Department of
Transportation (Mn/DOT) to issue an administrative variance to State Aid Rules for expenditure of State
Aid funds for the reconstruction ofCSAH 75 (Broadway) from Otter Creek to Washington Street
(SAP. XX-XXX-XX) in Monticello, C.P. 2000-13C; and that the County agrees to hold the State harmless
from claims which might arise from the State's authorization to expend said State Aid funds after
construction is completed; and
BE IT FURTHER RESOLVED, That the County Engineer be authorized to request MnlDOT to issue
variances from Minnesota Rule 8820.9936, State Aid "Geometric Design Standards" for a reduction from a
4-foot median width to a 3-foot median width, and for a parking lane width reduction from a to-foot width
to an 8.5-foot width from Chestnut Street to Washington Street; and
BE IT FURTHER RESOLVED, That the County of Wright hereby indemnifies, saves, and holds harmless,
the State of Minnesota and its agents and employees of and from claims, demands, actions or causes of
action of any nature or character arising out of or by reason of granting of the variances, and further agrees
to defend at its sole cost and expense any action or proceeding begun for asserting any claim of whatever
character arising as a result of the granting of the variances.
The question was on the adoption of the Resolution and there were _ YEAS and _ NAYS, as follows:
COUNTY OF WRIGHT
BOARD OF COUNTY COMMISSIONERS
YEA
NAY
OTHER
.
Ken Jude
Pat Sawatzke
John Russek
Elmer Eichelberg
Richard Mattson
RESOLUTION ADOPTED 11/28/00.
A ITEST:
Clerk of County Board
.
F:\WPWIN\1282-00\112700 resolution 2.rlf
.
.
.
County State Aid Highway 75
PRIMARY CORRIDOR GOALS
. Left Turn Channelization wI Minimization of Conflict Points
· Maintain Parking on Both Sides
· Maintain Existing Curb Line
· Minimize Median Maintenance
· Improve Roadway Character
· Improve Pavement Surface & Infrastructure
· Replace Street Lights
City of Monticello, Minnesota
Revised November 17, 2000
CQI;IDgSfafe Aii'J Highway 75
.
GOALS/ISSUES
SAFETY
· Reduce Number of Crashes / Severity Rate
· Provide Emergency Access
· Provide Ped. Safety / Accomm. (Proximity of Curb to Moving Traffic)
· Provide Protection for Left Turning Vehicles (Median)
· Parkway System (Boulevards vs. Concrete Walks)
· Corridor Street Lighting (Ornamental if Power Line Buried)
.
AESTHETICS I AMENITIES
· Retain/Enhance Residential Character of Roadway
· Preservation of Existing Trees
· Bury Utilities?
· Corridor Street Lighting (Ornamental if Power Line Buried)
· Parkway System (Boulevards vs. Concrete Walks)
TRANSPORTATION I TRAFFIC
· Improve Pavement Surface
· Maintain Regional Transportation Network: CSAH 75/ TH 25
· Provide for Existing / Future Capacity
· Identify Staging and Costs for Transportation Roadway Relievers
· Provide Traffic Calming Methods (Enforcement of Speed Limit)
.
CitJ of Monticello, Minnesota
Revised November 17, 2000
.
.
.
COI.IDgSfafe Aid Highway 75 .
GOALS/ISSUES (cant.)
RESIDENT CONCERNS
· Residential Access (Shoulder) - Traffic Buffer / Back Out of Driveway
· Pedestrian Safety / Accomm. (Proximity of Curbs to Moving Traffic)
· Maintain Parking
· Delivery Vehicles - Mail/Garbage / School Buses
· Minimize Closures of Cross Streets
· Reduce Assessment Costs
· Median (Grass/Trees/Plantings) Maintenance
· Minimize Truck Traffic
MAINTENANCE
· Pavement & Utilities
· Provide Snow Storage / Removal
· Minimize Median (Grass/Trees/Plantings) Maintenance
COSTS
· Minimize Assessments
· Keep Costs to a Minimum
· Maintain Property Values
City of Monticell'o, Minnesota
Revised November 17, 2000
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ADDITIONAL ROADWAY IMPROVEMENTS
CITY OF MONTICEllO, WRIGHT COUNTY
ESTIMATED PROJECT COSTS
R9adway "-----
Bridge ___
Concrete Structural Walls
Total Estimated Construction Costs
PROJECT COSTS I RIGHT-OF-WAY I TOTAL COST I
Fallon Avenue Connection - Segment 1 (5-10 yrs.)
.. $701,1~9.00
$1,567,400.00
$395,700.00
$2,664,250,00 Pot. Easements $2,664,250.00
$218,000.00
$2,882,250,00 Pot. Easements $2,882,250.00
$1,025,000,00
$1,700,000.00
$180,000,00 $1,880,000.00
CSAH 18 Full Interchange - Segment 3 (+ 20 yrs.)
Total Estimated Pro'ect Costs ? Costs to be Determined b Mn/DOT
Road'^.'ay
RaJJroad Crossing
Traffic SiQnal
Total Estimated Proiect Costs
7th Street Connection to CSAH 75 - Segment 4 (2-5 yrs.)
$579.,000.00
$300,000.00
$150,000.00
$1 025,000.00
$90,000,0011 $1,115,000.00
7th Street Connection from Minn. To Elm St - Segment 5 (1-3 yrs.)
Total Estimated Project Costs $600,000.001 $30,000.0011 $630,000.00
7th Street Widening from Cedar St To Washington St - Se ment 6 (2001)
Total Estimated Pro "ect Costs $370,000,00 $0,00 $370,000.00
Notes:
Costs Based on Year 2000 Dollars
Segment 1 Estimate Includes a 15% Contingency and 28% Indirect Costs
Segments 2-6 Include a 10% Contingency and 28% Indirect Costs
Right-of-Way Costs are Based on $30,000 per Acre
.
Revised 11/16/00
.
.
.
CSAH 75 Transportation Reliever Roadways
Segment 1
Fallon A venue Connection
Construction of the Fallon Avenue Bridge Connection includes approximately 920 feet of a new urban
street, 44 feet wide, 213 to 235 feet of a new 62- foot wide bridge, dependent on the straight or curved
alignment, and 36 feet of structural walls each side. A 5-foot concrete sidewalk is included on the
westerly side and an 8-foot pathway on the easterly side. No right-of-way costs are anticipated.
Construction easement are anticipated from the Remmele property. The project costs include a 15%
contingency and 28% indirect costs, for a total cost ranging from $2,665,000 to $2,885,000,
dependent on the bridge alignment.
Segment 2
CSAH 18 Partial Interchange
Construction of the CSAH 18 Partial Interchange would include construction of an 1-94 westbound on-
ramp and an 1-94 eastbound off-ramp. This partial interchange would then complete a full interchange
in combination with the existing 1-94 eastbound on-ramp and 1-94 westbound ofr-ramp at the easterly
end of CSAH 75. It is anticipated that 6 acres of right-of-way will need to be acquired for the
proposed construction. The project costs include a 10% contingency, 20% indirect costs and right-of-
way acquisition estimated at $30,000 per acre, for a total project cost of $1 ,025,000 to $1,880,000,
dependent on whether the CSAH 18 bridge is widened with the project or at a later date.
Segment 3
CSAH 18 Full Interchange
Construction ofthe CSAH 18 Full Interchange would include the construction of both 1-94 eastbound
on and off-ramps and both 1-94 westbound on and off-ramps. The construction would also include the
closure of the existing partial interchange at the easterly end ofCSAH 75. Mn/DOT is conducting
further analysis of this alternative as it may include the re-alignment ofI-94 including a new bridge.
Segment 4
7th Street Connection to CSAH 75
The extension of 7th Street from its existing tennination at St. Henry's Church to CSAH 75 would
consist of the construction of approximately 1,550 feet of a new urban street, 40 feet wide, with stonn
sewer, sanitary sewer and watennain. A 10-foot wide pathway will be constructed on the northerly
side. The extension will also include the construction of an at-grade railroad crossing and signal system
at CSAH 75. An estimated 131,000 square feet of street right-of-way will need to be acquired for the
extension. The project costs include a 10% contingency, 28% indirect costs, and right-of-way
acquisition estimated at $30,000 per acre, for a total project cost of$1,115,000.
F;\ Wl'WJN\ 1 282-00\,egmon'costs_wpd
. Segment 5
7th Street Connection from Minnesota Street to Elm Street
The extension of 7th Street from Minnesota Street to Elm Street is approximately 1,500 feet in length
and will consist of the construction of a new urban street, 40 feet wide with storm sewer, sanitary
sewer, and watermain. An estimated 42,600 square feet of street right-of-way will need to be acquired
for this extension. Approximately 335 feet of the proposed street alignment is within City-owned
property. For the remaining length of the street right-of-way, it is assumed that 11 of the street right-of-
way will be donated by the property owner as a part of the development agreement. The project costs
include a 10% contingency, 28% indirect costs, and right-of-way acquisition estimated at $30,000 per
acre, for a total project cost of$630,000. The property owner to the north ofthis proposed alignment
has signed a waiver of assessments based on an estimated assessment of $222,600.
Segment 6
7th Street Widening from Cedar Street to Washington Street
Segment 6 consists of the proposed widening of 7th Street between Cedar Street and Washington
Street, for an approximate length of2,500 feet; from a 40-foot wide rural section to a 44-foot wide
urban section with curb and gutter and stonn sewer. The project costs include a 10% contingency and
28% indirect costs, for a total project cost of$370,000. All proposed work for Segment 6 will be
completed within existing street right-of-way.
.
.
Fol Wl'WJN\ 1282-00Isegmen'costs. wl'd
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November 21,2000
The Design Advisory Team (OAT) would encourage the City Council to apply for a variance(s)
regarding County State Aid Highway 75/Broadway improvement project as specified from the
Broadway Improvement Task Force. The OAT motion carried unanimously.
NOV-22-00 WED 9:00 AM
PUBLIC WORKS
FAX NO.
16122713272
?635411'?0a
P. 2/ 2
P.12l1/83
.
r-~"'''~~''''
I
!
PROJECt l'fANAGEMENT TEAM
------
.~""'Z'''.:''I~''''~
~~,-
~ H.-me
J ~;':~~Bon
{' -----
Counl)t SAte Aid HiQlfway (CSAH) 15 ImprovtmOtlt
(Offef C",.t ~ WilMIngton SIr"'f)
"'''';"'10, MN
OCtOber 1', 200D
Represents '-dchu
MnJDOT District 3 ~9g1lndullltrial Park
State Aid Engineer I50uleverd
Baxter, MN G64~5
Phone
---..--.
!
Fax
Hon
II....'.....'~~.... . . ~ ~ ___'__.............1..._
Q,ablo Rog.r nefsa88 Mayor '06 Walnut Ave I 295-000
PO Box 1147 --J--..._-~,~.-
~l1cello MN 55362
:'\.''''''"'''~--..--
.11: Wol%teJllilr City Administrator . 295-2711 t--- 295.440
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I'fO'NejJI AssietBnt City . 2~.2711
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DlreC(or Monticello. MN 65362 ~4 1 -4800 I'
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Offlce, 8441 Wayzeta ,
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a Grittman Northwest 8776 Wa~eta Blvd 59S-9536 595--003
As&oeratAd Suite 1565 .
Consultwlfl/CJt)I SL Louis Park. MN 65416
City Of Monticello
(218) 828-2475 I (218) 82<M'210
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Engin.... Iiuffalo MN 66313
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Wright Coonry Monticello. MN 55362
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Assessment Policy Update
November 27, 2000
At the November 16th workshop the Council held preliminary discussion on assessment policies
as they relate to reconstruction projects. Attached is information received from the City
Engineer. One item not specifically covered in the engineer's memo nor was it discussed at the
workshop is how to handle tax exempt parcels. The policy information is being included with
your agenda packet for your review and study.
.
.
.
NOU-22-2000 12:04
'.
WSB
WSB & ASSOCIATES INC.
7635411700 P.02/03
8441 Wayzata Boulevard, Suite 350
Minneapolis, MN 55426
BA MittcJstcll:lr, P.E.
B~ A. Weiq. P.Eo
Peter R. WilJenbrinB. P.E,
DoIlI1d W. SJema. P.E.
Ronll1d B. Bray. P.E.
tel: 763-541-4800
fax; 763-541-1700
& AssociDJes, Inc.
Memorandum
To:
Honorable Mayor and City Council
City of Monticello
~rd'
From:
Bret A. Weiss, P.E.
, City Enginerr
November 22, 2000
Date:
Re:
City of MontU:ello Assessment Policy Issues
WSB Project No. 1160-41
During the discussions related to development of a revised assessment policy intended to better
address assessment issues within the City and in direct reference to the CSAH 75 assessment roll,
the following should be addressed:
~
The Council direction is to not assess for curb in areas that already have curb.
Response:
The council should consider that concrete curb and gutter also has
a life span that mayor may not exceed the street pavement.
Further, we would asSUme that during Street reconstruction at least
25 % will be replaced..
I
If the curb is not assessed, the general tax payer must assume those
costs. Along CSAH 75, for instance, two of the large property
owners are the school and the hospital; both of which do not pay
taxes. The City also has many chW'ches and government agencies
that are also tax exempt and will not participate in the cost of street
reconstnlction adjacent to their properties. Eliminating a
legitimate assessment for those propeIlies could place an undue
burden on the taxable property within the City. It may be prudent
to look into a method to still charge non-taxable property or
making Some other type of contribution for these street systems.
Minneapolis · S1. Cloud
In/1tJllnJdw, &,ill",., PkuaMn
EQUAL OPPORn1NITY EMPLOYER. ':\WP'W1MJlilJ.4l\l1U~c,"J14
.
.
.
NOU-22-2000 12:04
WSB & ASSOCIATES INC.
7635411700 P.03/03
Honorable Mayor alld City Council
November 22, 2000
Page 2
Issue:
Should commercial/industrial properties be assessed for street improvements to the
same degree as residential or for all abutting streets?
Res90Dse:
One assessment-policy option is to eliminate assessments to all
parcels, an alternate approach would be to assess benefitted
properties for street re-construction. Typically residential
properties are assessed based on the number of accesses (typically
One to adjacent streets) and usually on a unit basis. All other
properties (commercial/industrial) typically are assessed on a front
footage basis for whatever street they abut and at the cost of the
reconstruction project.
!!w.i
Does the council want to develop life expectancy for curb, street, utilities, street lights
etc.?
Response:
If the council chooses to assess a portion of these project costs,
then it is essential that the life expectancies for the facili,ties be
developed. This will provide a ground work for budgeting for
infrastnlcture replacement; both for city budgeting as well as for
property owners adjacent to those facilities. All of the
infrastructure items will fail at sometime in the future and will
ultimately need to be replaced.
We would like to receive City Council feedback on these issues as we move forward with the
assessment policy and want you to be aware of these issues prior to certifying the CSAH 75
assessments. We will be at the meeting to discuss these issues or you can contact me at (612)
277-5790 with any questions.
JW
f
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TOTAL P. 03
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