City Council Agenda Packet 02-24-2025 SpecialAGENDA
MONTICELLO CITY COUNCIL SPECIAL MEETING
Monday, February 24, 2025 — 5:00 p.m.
Monticello Community Center (Academy Room)
Call to Order
2. 5:00 — 6:15 p.m. Discussion on south Monticello utility studies
3. Adjournment
City Council Agenda: 7/22/2024
2N. Consideration of authorizing impact studies and the approval of an escrow agreement
with Frattalone Companies, Inc.
Prepared by: Meeting Date: ® Consent Agenda Item
Public Works Director/City Engineer 7/22/2024 ❑ Regular Agenda Item
Reviewed by: Approved by:
Finance Director, Community City Administrator
Development Director
ACTION REQUESTED
Motion to authorize staff to enter into agreements with AE2S and Bolton and Menk, Inc. for the
development of utility impact studies and the approval of an escrow agreement with Frattalone
Companies, Inc.
REFERENCE AND BACKGROUND
In 2022 the City completed a feasibility study for the construction of a water treatment plant.
This study looked at the City's current water use and based on the growth rates identified in the
Comprehensive Plan identified projected a 50-year water demand projection. In 2022 the 5-
year average daily water demand was 1.47 million gallons per day (MGD) with a 5-year
maximum daily demand of 3.46 MGD. This study projected that in 2070 the average daily
demand would be 3.30 MGD with a maximum daily demand of 8.26 MGD.
At the same time, the City updated the Wastewater Facility Plan. This study looked at current
loadings and flows at the wastewater treatment plant and projected out 20-year design flows.
In 2021 the wastewater treatment plant saw an average of 1.17 MGD of inflows with an
average maximum daily demand of 1.42 MGD. This study estimated the 20-year average wet
weather design flow at 1.92 MGD. The existing facility has a design capacity of 2.36 MGD.
Both of these studies also evaluated the water and wastewater trunk utility systems, providing
analysis on design and capacity needs for the City's growth areas based on the 2040 Vision +
Plan.
Recently, the City was approached by private entities interested in developing in our
community. The proposed use would impact the City's water and wastewater systems,
including both the water treatment facility currently being designed and the existing
wastewater treatment facility. Initial requests indicate up to 5 MGD of potable water with up to
3 MGD being discharged to the wastewater treatment plant.
City Council Agenda: 7/22/2024
The utility needs of potential projects would drastically impact the growth projections that
were assumed in these studies as well as the trunk utilities planned for future growth.
To better understand the impacts of potential development, staff proposes to expand the
studies completed in 2022 by looking at some of the following items:
• Review current permitting with the Minnesota Pollution Control Agency (MPCA) for our
wastewater treatment plant discharge and understand potential permitting impacts for
future growth.
• Review current permitting with the MN Department of Natural Resources for water use
appropriations and potential impacts for future growth and aquifers.
• Study potential impacts and costs for expanding the wastewater treatment plant for
accommodating this user while maintaining the ability to accommodate future growth.
• Study potential impacts and costs for expanding the planned water treatment plant
project for accommodating this user while maintaining the ability to accommodate
future growth.
• Review the water collection and sewer collection systems to understand potential
impacts to the systems while accommodating future growth.
• Project operational costs associated with the increased supply and treatment of water
and sewer for this user.
These studies would provide a list of projected capital improvements necessary and associated
permits required so the impacts on the existing and future rate payers can be fully understood.
Because these impacts are only being studied because of a private entity's interest in
development, the entity agreed to enter into an escrow agreement to cover the cost of these
studies to better understand the impacts of this potential large utility user.
AE2S is currently working on the design of the water treatment plant, and staff proposes that
they look at the potential impacts to the water treatment plant design and the impacts to the
water distribution system.
Bolton and Menk, Inc. recently completed the facility plan for the wastewater treatment plant
as well as the study for the sewer collection system, and staff proposes they look at the
potential impacts to the wastewater treatment plant and was as the sewer collection systems.
The estimated cost of all the studies is estimated at $50,000. It is anticipated that the studies
would be complete by the end of August, and the findings would be presented to the City
Council following their completion.
City Council Agenda: 7/22/2024
Budget Impact: The costs for these studies would be paid by an escrow agreement with
the developer.
II. Staff Workload Impact: City staff will act as liaison between the consultant engineers
(AE2S and Bolton and Menk) and the private entity and will provide community -wide
perspective throughout the project.
III. Comprehensive Plan Impact: The Monticello 2040 Plan's Community Facilities and
Infrastructure Plan states "A complete and well -maintained utility system providing
service to all residents and extended into the Orderly Annexation Area only when
development occurs, pays for the extensions and the development site is incorporated
into the city boundaries." The initial escrow agreement for the study completion is
consistent with this goal. The resulting studies will also provide impact and cost
information for the City's use in managing development consistent with this goal.
STAFF RECOMMENDED ACTION
Staff recommends approval of an escrow agreement and the completion of utility studies for
this potential development. The proposed studies will provide information on the potential
utility impact of the proposed development use and supporting a further understanding of the
cost implications. The information from the studies will serve as a platform for informed
planning and decision -making.
SUPPORTING DATA
• Draft Escrow Agreement
ESCROW AGREEMENT
AGREEMENT made this day of , 2010, by and between the
CITY OF MONTICELLO, a Minnesota municipal corporation ("City") and Frattalone
Companies("Developer").
RECITALS
A. Developer has proposed development of land situated near the City and located in
Section 23, Township 121, Range 024 (the "Project Site") as more fully shown and described on
Exhibit A hereto;
B. The City is asked to perform a preliminary review for a plan for development
which includes the utilities and other site improvements for the Project Site.
NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. DEPOSIT OF ESCROW FUNDS. Contemporaneously with the execution of
this Escrow Account, the Developer shall deposit $50,000with the City. All accrued interest, if
any, shall be paid to the City to reimburse the City for its cost in administering the escrow
account.
2. rURPOSE OF ESCROW. The purpose of the escrow is to secure City expenses
related to the preliminary review of the plans and to determine the utility impacts of the
development for the Project Site. The Developer shall pay all actual documented costs in excess
of the deposit incurred by it or the City in conjunction with the development for City
administration, legal, engineering and planning expenses incurred in connection with approval and
acceptance of the development and preparation of this Contract.
3. DISBURSEMENT FROM ESCROW ACCOUNT. If the Escrow amount falls
below $5,000 the Developer shall deposit additional sums as directed by the City or the City may
halt all work on the Project Site review.
4. CLOSING ESCROW. The Balance on deposit in the escrow, if any, shall be
returned to the Developer when the review has been completed.
5. DEVELOPER'S DEFAULT. In the event of default by the Developer as to any
of the work to be performed by it hereunder, the City may, at its option, draw from the escrow
account without further approval of the Developer to reimburse the City for eligible expenses the
City has incurred, provided the Developer, except in an emergency as determined by the City, is
first given notice of the work in default, not less than forty-eight (48) hours in advance. This
Contract is a license for the City to act, and it shall not be necessary for the City to seek a Court
133513v01
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order for permission to enter the land. When the City does any such work, the City may, in
addition to its other remedies, assess the cost in whole or in part.
5. LIEN FOR DEFICIENCIES. If the project is abandoned by Developer or if the
eligible expenses incurred by the City exceed the amount in escrow, the City shall have the right
to place a lien for governmental services against the property pursuant to Minn. Stat. § 514.67.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
day and year first above written.
CITY OF MONTICELLO
BY:
Its Mayor
BY:
Its City Administrator
DEVELOPER:
BY:
Its:
OWNER(S) OF PROPERTY:
STATE OF MINNESOTA )
( ss.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this day of ,
20, by and by
respectively the Mayor and City Administrator of the City of Monticello, a Minnesota municipal
133513v01 2
JJJ:08/16/2007
corporation, on behalf of the corporation and pursuant to the authority granted by its City
Council.
NOTARY PUBLIC
STATE OF MINNESOTA )
( SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
20, by the
NOTARY PUBLIC
STATE OF MINNESOTA )
(SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this
2010, by
, the fee owner(s).
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
Telephone: (651) 452-5000
JJJ
day of
of
the Developer.
day of ,
133513v01 3
JJJ:08/16/2007
EXHIBIT "A"
TO
ESCROW AGREEMENT
133513v01
JJJ:08/16/2007