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City Council Minutes 03-13-1995 MTNUTEs REGULAE. MEETING - MUNTICELLU CITY C4UNCTL Monday, March 13, 199b - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault Members Absent: None 2. A royal of minutes of the s ecial meetin held Februa 27 and the regular meeting held February 27,,1995. After discussion, a motion was made by Shirley Anderson and seconded by Brian Stumpf to approve the minutes of the special meeting held February 27 and the regular meeting held February 27, 1995. Motion carried unanimously. 3. Consideration of adding items to the agenda. None. 4. Citizens comments/petitions, requests, and complaints. None. 5. Public Hearing--Meadow Oak Pand Outlet Proiect 93-12C. AND 6. Consideration of a resolution acce tin bid and awardin contract--Meadow Oak Pond Outlet Proiect 93-12C. Mayor Fyle opened the public hearing. City Engineer Bret Weiss explained that the storm sewer project is being proposed to drain the Meadow Oak development area, which was originally planned to drain into ditch 33; however, in the early 1980's the County prevented additional drainage from flowing into ditch 33, which has resulted in overflow of ponding areas in the Meadow Oak development. He noted that the City has studied options for draining the 244-acre area; and in the summer of 1.994, the Council chose to design the storm sewer project down Gillard Avenue along with street improvements to Gillard. Weiss noted that since Gillard Avenue is near the end of its useful life and is in poor condition, it was felt that replacement is needed. Weiss went to report that the bids received in August 1994 were much higher than the original construction estimate, and the State and County had not agreed at that time to participate in the project; therefore, Council chose to reject the bids and re-advertise in the spring of 1995, including an Page 1 Cauncil Minutes - 3/13/95 additional 5 cubic feet per second capacity. The City received ten bids an March 3, 1995, the lowest from Barbarossa and Sons, Inc., for $327,199.45, which includes $82,595.45 for the Gillard Avenue street construction. The engineer's estimate for this project was $320,130, and notices were mailed to the affected property owners indicating an approximate storm sewer benefit of $1,550 per acre and $7.77 per lineal foot for street benefit. He noted that an assessment hearing will be held once the project is completed, and residents will be notified of the proposed assessment amount. Residents of the proposed project area questioned why some of the surrounding city and township areas were not included in the project assessment. The City Engineer explained that some of the surrounding areas drain in the opposite direction of this system and will be handled by a different outlet, and other areas will have systems designed by the developer, who will also install the improvements. A letter and petition was presented by Gillard Avenue residents. It was their view that the storm run-off from their area does not contribute to the problem in the Meadow Oak development, and they requested that Council provide some relief to the Gillard Avenue residents in the form of a reduced assessment. The City Engineer explained that once the Gillard Avenue area is fully developed, there will be standing water if a storm sewer system is not put in place. Another question raised by residents was why present and new homeowners weren't notified that this project would be forthcoming since the City has known about it for quite some time. Assistant Administrator O'Neill responded that the City is asked to complete assessment searches when properties are sold, and the City could have reported that there "might" be an assessment, but he noted that there is no legal requirement that the City notify all residents in advance of the public hearing that there may possibly be a project assessment in the future. Mayor Fyle then closed the public hearing. Councilmember Herbst requested that the proposed Orrin Thompson development, consisting of approximately 80 acres south of the Oak Ridge development, be included in the assessment area since its storm water will eventually be discharged into this system. The City Engineer noted that the area could be included in the project, and access charges at the time of development would then reduce the City's amount of the project cost. Public Works Director John Simola stated that an agreement has been reached with Gene and Lois Bauer for extension of the storm sewer system through their property, and Council is asked to table award of the project so that staff can continue to work with the State for additional funding. Page 2 Council Minutes - 3/13/95 After further discussion, a motion was made by Shirley Anderson and seconded by Brian Stumpf to table award of the Meadow Oak storm sewer project to allow staff time to obtain additional funding from the State of Minnesota. Motion carried unanimously. 7. Continued ublic hearin on ro osed modification of Redevelo ment Plan for Proiect No. 1, modification of TIF plans for Districts 1-1 through 1-].8, and ado tian of TIF lan for District 1-19 Mississi i Shores . Economic Development Director Ollie Koropchak reported that the public hearing for adoption of the District 1-19 TIF plan was continued from the February 27, 1995, meeting to allow for completion of the senior housing project financial package. She noted that all public hearing notice requirements have been met, and the Planning Commission adopted a resolution on February 7, 1995, stating that the proposed senior housing project and TIF plan are consistent with the comprehensive plan of the city of Monticello. Steve Bubul, Bond Counsel, explained that the Senior Housing Alliance plans to construct a 48-unit senior housing facility at an estimated cost of $3.5 million. The project will be financed through revenue bonds issued by the City, along with tax increment financing and a cash donation of $100,000 from the Hospital Board. The land will be sold to the Alliance for $175,000. In regard to the revenue bonds, Bubul assured the Council that the City will not be liable, as they are not general obligation bonds and will be secured by rents from the project. The estimated tax increment of $42,285 is based on a $1,850,000 estimated market value and is sufficient to cover the TIF budget. No comments were received from the public. Mayor Fyle then closed the public hearing. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to adopt the resolution adopting the plan for TIF District No. 1-19. Motion carried unanimously. SEE RESOLUTION 95-16. 8. Continued Public Hearin --Consideration of a resolution ado tin a housin lan and ro am for issuance of multi-housin revenue bonds. Economic Development Director Ollie Koropchak reported that this is a continuation of the public hearing opened on February 13, 1995, for adoption of a housing plan and program for issuance of multi-family housing revenue bonds in conjunction with the senior housing project known as Mississippi Shores. She noted that all public hearing notice requirements have been met. Pale 3 Council Minutes - 3/13/95 Mayor Fyle Hated that he spoke with Jerry Shannon of Springsted, Inc., the City's Bond Consultant, and Shannon confirmed that if the City adapts the resolution for issuance of these revenue bonds, it does not become a liability for the City. There being na comment from the public, Mayor Fyle then closed the public hearing. Cauncilmember Stumpf noted that he would be more comfortable if the term "multi-family" could be replaced with the term "senior" housing revenue bands in order to avoid any confusion as to the intent of the housing project. Attorney Steve Bubul stated that the terminology on the resolution can be changed per Stumpfs request. After discussion, a motion was made by Shirley Anderson and seconded by Tom Perrault to adopt the resolution adopting the housing plan and program for issuance of senior housing revenue bonds. Motion carried unanimously. SEE RESOLUTION 95-17. 9. Consideration of ordering a public hearing for storm sewer. improvements within Meadow Oak subdivision. Public Works Director John Simola reported that Gary Sandman, property owner of Lot F, Block 2, Meadow Oak Third Addition, is requesting that the City correct the drainage problem in the Maplewood Circle area so that the conditional occupancy can be removed from his home. Simola explained that when the second addition was developed, the City did not have a survey requirement and dirt was pushed west into the easement abutting the easterly line of Lots 5, 6, 7, and $ of the Meadow Oak Third Addition. When the Maplewood Circle late were being developed, it Was noted to the builders by the Building Official that the lots must be graded properly to obtain proper drainage. The owners were given conditional occupancies until the final grading was completed, but the builders and home owners were requested to escrow funds to complete the grading; however, last fall it was noted by the Building Official that the grading was not completed in a way to allow the water to flow out of the Maplewood Circle late. During a neighborhood meeting held with City staff, it was discovered that the escrow funds had been released even though none of the homes had received final occupancy. Staff suggested to the property owners and builders that they collectively hire a landscape contractor to grade the easement and share the cost. Since they were unwilling to do this, they Page 4 Council Minutes - 3/13/95 were also informed that they could petition the Council far improvements; however, this approach would be much more costly and would result in assessments to the benefiting property owners. Gary Sandman of 2750 Maplewood Circle stated that he knew nothing about the drainage problem on this lot when he purchased the home six months ago, and it was his view that the City should correct the problem by removing the material from the easement so that the drainage doesn't collect on his property. Mayor Fyle noted that he would be willing to call for a public hearing; however, he preferred that the residents jointly correct the situation rather than the City performing the work as a public improvement and assessing the benefiting properties. The Public Works Director also noted that the public works department could regrade the area and ask the home owners to re-seed, which Councilmember Herbst felt would be a fair compromise. After discussion, a motion was made by Brian Stumpf and seconded by Brad Fyle to deny calling a public hearing for improvements and request that property owners work together to solve the drainage issue. Cauncilmember Anderson noted that the City could act as mediator for a neighborhood meeting in an attempt to help resolve the situation. Voting in favor: Brian Stumpf, Brad Fyle, Shirley Anderson. Opposed: Clint Herbst, Tom Perrault. 10. Consideration of final plat approval -Eastwood Knoll. City Administrator Rick Wolfsteller reported that after a year of reviewing preliminary sketch plans, a final plat for the 30-lot Eastwood Knoll residential development has been completed. The final plat at this time does not show the north/sauth road connecting to Meadow Oak Avenue; however, once Lot 2, Block 3, Meadow Oak Estates has gone through the tax forfeiture process through the County Auditor's office, Wolfsteller noted that it appears the City will be able to obtain the title and can then connect the road to Meadow Oak Avenue. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the final plat as submitted for the Eastwood Knoll residential subdivision. Motion carried unanimously. It was the consensus of Council to discuss restrictive covenants and marketing issues for this plat at the next regular Council meeting. Page 5 Council Minutes - 3/13/95 11. Consideration of a resolution acce tin bids and awardin contract for im rovements to Eastwood Knoll - Pro'ect 94-02C. City Engineer Bret Weiss reported that on March 10 the City received 19 bids for improvements to the Eastwood Knoll subdivision. The bids ranged from a low of $319,761.15 from Breitbach Construction of Elrosa, Minnesota, to a high of $414,972. The engineer's estimate for the project was $352,025. Weiss noted that a reference check of Breitbach Construction revealed a firm with 30 plus years of experience in general contracting with a solid reputation in the building industry but with limited experience in sewer and water construction. This limited amount of experience typically results in higher-than-normal engineering and inspection costs; however, based on the $20,000 difference between the first and second bidders, the project could afford slightly higher engineering and inspection charges. Therefore, Weiss recommended awarding the contract to Breitbach Construction. After discussion, a motion was made by Clint Herbst and seconded by Brian Stumpf to adopt the resolution accepting the low bid and awarding the contract to Breitbach Construction of Elrosa, Minnesota, in the amount of $319,761.15. Motion carried unanimously. SEE RESOLUTION 95-18. Assistant Administrator O'Neill noted that the Monticello Country Club is interested in obtaining the small trees that would be disturbed by the construction project. After discussion, it was the consensus of Council to allow the Country Club to remove the small trees that would otherwise be disturbed by the construction project. 12. Consideration of a resolution approving plans and specifications and authorizing advertisement for bids - HIein Farms residential subdivision. Assistant Administrator O'Neill reported that the City Engineer has completed preparation of the plans and specifications For the HIein Farms residential subdivision as directed by the Council. The developer has indicated that he will provide financial guarantees to the City covering all expenses leading up to the award of the contract. Page 6 Council Minutes - 3/13/95 O'Neill outlined the remaining steps to be taken prior to completion of the project. Monticello Township will consider signing the joint resolution for annexation at its meeting on March 20, the bid opening is scheduled for April 7, and consideration of adopting a negative declaration of impact on the EAW will be considered on April 10 along with consideration of the developer agreement and final plat. After discussion, a motion was made by Brian Stumpf and seconded by Shirley Anderson to adapt the resolution approving plans and specifications and authorizing advertisement For bids far the Klein Farms residential subdivision. Motion carried unanimously. SEE RESOLUTION 95-19. 13. Consideration of ratifyn~ EDA appointments. Economic Development Director Ollie Koropchak reported that on January 9 the City Council appointed Cauncilmember Tom Perrault to fill the EDA seat vacated by the resignation of Patty Olsen last year. At that time, Council also established a policy that all commissioners must be a resident of the city of Monticello, which left another vacant seat on the EDA. Korapchak noted that interviews were conducted on March 7, and it was the view of the interview committee that both candidates were well qualified. After discussion, it was the recommendation of the EDA to appoint William Demeules as commissioner of the EDA with a term expiration of December 2000. After discussion, a motion was made by Shirley Anderson and seconded by Tom Perrault to ratify the appointment of William Demeules as commissioner of the EDA with a term expiration of December 2000. Motion carried unanimously. 14. Consideration of a rovin issuance of amblin license renewal -American Le 'on Club. City Administrator Wolfsteller reported that the American Legion Club is requesting approval of their gambling license renewal for operating pull- tabs at the club. As in the past, a financial report has been provided to the Council showing where charitable donations are being made within the city. After discussion, a motion was made by Shirley Anderson and seconded by Tom Perrault to accept the Legion Club financial report as presented and adopt the resolution approving the application for renewal of the license for the American Legion Club. Motion carried unanimously. SEE RESOLUTION 95-20. Page 7 Council Minutes - 3/13/95 15. Consideration of urchase of small co machine for cit hall. City Administrator Walfsteller noted that a few years aga the City purchased a small copy machine for the service counter area at city hall to more easily accommodate customers; however, the copy machine was needed by the deputy registrar department when they moved to their new office in September 1994. Staff is requesting that Council consider purchasing a Sharp Model 2114 copy machine from Marco Business Products of St. Cloud in the amount of $2,249.28 to replace the one moved to the deputy registrar office. After discussion, a motion was made by Shirley Anderson and seconded by Brian Stumpf to approve the purchase of a Sharp Model 2114 copy machine fram Marco Business Products in the amount of $2,249.28. Voting in favor: Shirley Anderson, Brad Fyle, Brian Stumpf, Tom Perrault. Opposed: Clint Herbst. 16. Consideration of EDA ear-end financial re ort for 1994. Economic Development Director Ollie Koropchak reported that the EDA year-end financial statement shows a beginning fund balance of $636,814.08, revenues of $73,741.53, and expenctures of $680 fora year- end fund balance of $709,875.61. She noted that the year-end EDA financial reports were approved by the EDA at their March 7, 1995, meeting. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to accept the EDA balance sheet; statement of revenues, expenditures, and changes in fund balance; 1995 cash flow projections; and the annual activity report as presented. Motion carried unanimously. 17. Consideration of ear-end re orts for UDAG and SCERG. Economic Development Director Ollie Korapchak reviewed the current GMEF loans and noted the 1995 sources of funds available to the EDA through the GMEF total $477,032.20. She also noted that although the total available is $477,032.20, the annual GMEF appropriation is $200,000. No action was required by Council. 1$. Other matters. A. Assistant Administrator Jeff O'Neill reported that since the Schaol District is beginning its planning for facilities expansion and the City is revising its comprehensive plan, perhaps the City should be represented at the School Board meetings to try and work Page 8 Council. Minutes - 3/13/95 cooperatively on community facilities. He noted that according to the Planner's tactic report, lack of joint City/School District planning is a concern. Council agreed that it's important for the two jurisdictions to work jointly, and Councilmember Herbst volunteered to attend the School Baard meetings as a City representative. There being no further business, the meeting was adjourned. Kar n Daty Office Manager [] Page 9