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City Council Minutes 11-14-1994MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 14, 1994 - ? p.m. Members Present: Brad Fyle, Clint Herbst, Dan Blonigen, Warren Smith. Shirley Anderson was present from 9:30 p.m, to adjournment. Members Absent: None 2. Approval of minutes of the r~ular meeting held October 24, 1994. A motion was made by Warren Smith and seconded by Clint Herbst to approve the minutes of the meeting held October 24, 1994, as presented. Motion carried unanimously, with Shirley Anderson absent. 3. Consideration of adding items to the agenda. None. 4. Citizen comments/petitions, requests, and complaints. None. 1 5. Consideration of alternatives for addressin edestrian/vehicle conflicts on 7th Street. Assistant Administrator O'Neill stated that Council is asked to consider alternatives far addressing concerns raised at the previous Council meeting by the Marywood Apartment manager in regard to the parking ban on 7th Street. He reported that the parking ban was established to allow the shoulder of 7th Street to be used exclusively for pedestrian and bike traffic as identified in the pathway plan for the city for the following reasons: 1) On-street parking should not be needed, as the zoning ordinance parking requirements should have provided sufficient off-street parking for each apartment; 2) The controlled intersection at Highway 25 makes 7th Street the best alternative for the east/west pathway through this sectian of town; and 3) 7th Street is a major artery for pedestrian bike traffic due to points of destination such as Burger King, Perkins, Kmart, Kentucky Fried Chicken, etc., in close proximity to densely populated areas. ~~ O'Neill went on to report that since the last Council meeting, staff has heard concerns from the Hillside Apartment management and apartment residents regarding the parking ban. In response to these concerns, an inventory of parking stalls/unit on 7th Street was obtained, which shows that the Marywood Apartments have a surplus of six stalls; however, about one-third of the garage stalls are being used for storage, which results in a parking stall deficiency and consequent parking on 7th Street. The survey also showed that Hillside Terrace I has a deficiency of 31 parking stalls and Page 1 Council Minutes - 11/14/94 Hillside Terrace II has a surplus of 1$ stalls, resulting in a net deficiency of 13 stalls for the complex. This deficiency was allowed by variance when the development was constructed. Roger Mack, Street Superintendent, reported that problems are created for the snowplows when cars are parked on the street and requested that Council maintain the no parking ban. Councilmember Herbst suggested that giving residents until January 1, 1995, should be a sufficient amount of time for residents tv free up garage space on site. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to delay enforcement of the no parking ban on 7th Street until January 1, 1995, to allow residents time to free up garage parking space on site, with the current winter parking ordinance remaining in effect. Motion carried unanimously, with Shirley Anderson absent. 6. Consideration of amendments to cigarette licensing ordinance. City Administrator Rick Wolfsteller reported that at the previous meeting Council agreed to consider amendments tv the recently-adopted cigarette licensing ordinance that would allow self service sales of cigarettes, provided the tobacco products are located within the plain view of a responsible employee. In addition, it was also suggested that the ordinance contain language that would require every retailer requesting a cigarette license to certify on the annual application that it has trained its employees on the laws of tobacco sales. Wolfsteller noted that training will be required for all retailers requesting a license; however, this will be difficult to enforce. Dorothy Ritze of Total Mart stated that the training video used by her company is called "Support the Law" and is available from the R.J. Reynolds Company at no charge. Councilmember Herbst suggested that the City obtain the video to distribute with each tobacco license application. After discussion, a motion was made by Warren Smith and seconded by Dan Blonigen to approve the ordinance amendment as proposed allowing self- service of tobacco products provided they are in plain view of a responsible employee and that the retailer certifies annually that it has trained its employees on state laws concerning tobacco sales. Voting in favor: Warren Smith, Dan Blonigen, Brad Fyle. Opposed: Clint Herbst. Absent: Shirley Anderson. SEE ORDINANCE AMENDMENT NO. 262. Page 2 Council Minutes - 11/14/94 7. Consideration to ado t a resolution callin fora ublic hearin for the modification of the Redevelo ment Plan and Boundaries far Redevelo ment Project No. 1 modification of the TIF Plans for TIF District Nos. 1-1 to 1- 17 s ecificall TIF District No. 1-9 and the ado tion of the TIF Plan for TIF District No. 1-1$. Economic Development Director Ollie Koropchak asked that Council consider adopting a resolution calling for a public hearing to be held on November 28, 1994, at which time the following three items will be considered: 1) The Central Monticello Redevelopment Project No. 1 boundaries must be modified to include the 72 acres owned by Krautbauer; 2) Consider modifying TIF District 1-9 to assist with the site improvements associated with the proposed expansion of Genereux Fine Wood Products. 3) Consider adopting the TIF Plan for TIF District No. 1-1$, which is being created to assist with costs associated with the reclamation of the gr. avel pit in conjunction with the River Mill subdivision. Councilmember Blonigen expressed his concerns regarding holding a public hearing vn land that is not located in the city limits, and he stated he is apposed to the use of TIF to restore the gravel pit. It was noted by staff that this resolution calls for a public hearing only and does not obligate Council to automatically approve the modifications at the public hearing. After discussion, a motion was made by Warren Smith and seconded by Brad Fyle to adopt the resolution setting a public hearing for November 2$, 1994, for consideration of modification of the Redevelopment Project No. 1 boundaries, modification of TIF Plans, and adoption of the TIF Plan for TIF District No. 1-1$. Motion carried unanimously, with Shirley Anderson absent. SEE RESOLUTION 94-34. $. Consideration of ado tin a resolution su ortin annexation of the Robert Krautbauer ro ert in conjunction with a roval of the River Mill subdivision. Assistant Administrator O'Neill reported that at the previous Council meeting, Joe Abbot, owner of Hawks Bar, withdrew his request for annexation due to concerns regarding future access restrictions to Hawks Bar that could result from residential development in the area. The item was tabled to provide an opportunity for the developer, Jae Abbot, and the County to discuss the access plan. He also noted that under the proposed zoning plan, Hawks Bar would be annexed as a conforming grandfathered use; however, if the property is annexed at a later date, there is no guarantee that Hawks will be granted zoning approvals favorable to his business. Page 3 Council Minutes - 11/14/94 Joe Abbot noted that he might consider annexing at this time if the area can be made as safe as possible with turn lanes now rather than waiting until problems occur, requiring a median to be installed in the future. Tt was noted by Rick Murray, developer of the River Mill subdivision, that the entrance to the subdivision will be approximately 100 ft east of the Hawks Bar entrance. A bypass turn lane going east on Highway 75 will be installed so that traffic waiting to turn into River Mill can be bypassed. The possibility of installation of a concrete left turn lane to help protect turning vehicles was also discussed. At this point in the meeting, Joe Abbat reinstated his petition for annexation to the city. Assistant Administrator O'Neill noted that any motion to approve annexation is subject to approval of the final plat. After discussion, a motion was made by Warren Smith and seconded by Brad Fyle to adapt the resolutions supporting annexatian of the Robert Krautbauer property and the Hawks Bar property. Councilmembers Herbst and Blonigen noted their objection to the use of TIF for restoration of the gravel pit. It was their view that the gravel pit area should have been brought up to code prior to petition for annexation to the city. Voting in favor: Warren Smith, Brad Fyle. Opposed: Dan Blonigen, Clint Herbst. Absent: Shirley Anderson. Motion failed. Applicants Rick Murray and Joe Abbot requested that this item again be considered by Council at their next meeting when all Cauncil members are present. 9. Consideration of authorizin use of eminent domain roceedin s to ac uire Dundas Road right-of-way. City Administrator Wolfsteller explained that for more than 10 years, the City has planned to extend Dundas Road in a westerly directian to connect to Highway 25. He noted that Dundas Road currently ends at Cedar Street, adjacent to Highway 25, and it has been the City's plan to extend the road to Highway 25 and eliminate the Cedar Street access to Highway 25. Wolfsteller went on to explain that in order to complete this extension, the City needs to acquire a small triangular piece of property lying between Cedar Street and Highway 25. Acquisition has been difl"icult because it is not clear who awns the land. The property was originally owned by Olga Swanson, who sold approximately 20 acres lying west of Highway 25 to Mel Wolters. After review of the real estate documents by the City Attorney, there is still a question as to whether this strip of land is a remnant parcel still owned by the family members of the Swanson estate or whether it is Page 4 Council Minutes - 11/14/94 owned by Mr. Wolters, who made the last purchase from the family. As a result, it is the recommendation of the City Attorney that the City pursue eminent domain proceedings to acquire this strip of land. This procedure would involve the City depositing with. the Court system the market value amount of the property in order to obtain title. The Court system would then decide who is the owner of the property and disburse the money appropriately. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to authorize the City Attorney to begin eminent domain proceedings for the purpose of acquiring the narrow, triangular parcel adjacent to Cedar Street and Highway 25 for the purpose of future expansion of Dundas Road. Motion carried unanimously, with Shirley Anderson absent. 19. Consideration of a resolution acceutin~ feasibility study, ordering public hearin and orderin re oration of lans ands ecifications for sewer and water utility extensions to the southwest area. Assistant Administrator O'Neill reported that a feasibility study was prepared by the City Engineer in 1992 at the request of Stuart Hoglund and John Michaelis for a project that proposes development of a lift station and other trunk sanitary sewer improvements necessary to provide sanitary sewer access to a large area referred to as the Southwest Area. The study proposed two preliminary alternatives for providing sewer and water service to this area. Subsequent to completion of the study, a third alternative was proposed which allows lateral extension of sewer and water to be run on property lines rather than on the Oakwood Drive right-of--way. O'Neill stated that the area benefited directly by the project includes parcels owned by Gehardt Everson, Milton Olson, Stuart Hoglund, Dean Carlson, and John Michaelis. The general area that the lift station will be capable of serving is bounded on the north by I-94, on the east by Sandberg Road and Highway 25, on the south by Kjellberg West Mobile Home Park, and on the west by Oakwood Drive as it turns south. The John Michaelis, Stuart Hoglund, and Dean Carlson properties are located in Monticello Township. Petitions for the improvement have not yet been received from Stuart Hoglund and Milton Olson; however, they have expressed an interest in obtaining access to city sewer and water. O'Neill went on to report that Gould Brothers Chevrolet has received approval from the OAA to expand their facility; however, John Michaelis has indicated that he prefers to develop his facility with access to city water and sewer. He has also stated, however, that in the event the city project does not proceed, he will build a private sewer and water system to serve his needs. O'Neill also noted that D & D Bus has also indicated a need to access city utilities in order to be in compliance with EPA regulations. Page 5 Council Minutes - 11/7.4/94 O'Neill then reviewed the preliminary finance plan for the project and noted that the figures are subject to the assessment hearing process. He noted the lift station and force main cost is $101,000 and is proposed to be paid through the trunk sanitary sewer fee. It is proposed that the trunk sanitary sewer Fee be assessed at the time of development, which results in a higher up-front cost for the City but will be recovered over time as the Southwest Area develops. The total proposed trunk fee assessment from the five parcels amounts to $54,625, with the City's share at $46,375. O'Neill went on to review the lateral sewer expense at a total of $28,500. This cost is proposed to be divided evenly among the five properties. O'Neill noted that access to city water is immediately available to the area; however, in the future, it will be necessary to construct a trunk water main to serve the area at a cost of $120,000. Council went on to discuss trunk water fees. Public Works Director John Simola noted that in the past, the City has picked up same looping and oversizing cost. He noted that this project is small enough that it may be easier for the City to absorb the cost of the trunk water expense. It was noted that the City has an established trunk sewer fee and trunk water fee of $1,250 per acre; however, the trunk water fee has not been charged in the past due to the fact that many developers have been paying the entire cost of extending water service to their development. Simola also stated that the City has used excess funds from water access fees to fund oversizing in the past. Councilmember Herbst expressed his concerns regarding the City paying for utility extensions to new developments. It was his view that the developers should be paying their share of the cost associated with obtaining services. He also noted that there are unique circumstances in this case that may justify a reduction in the trunk water main charge. Perhaps the fee should be lowered to half of the present $].,250 per acre charge. The City Engineer suggested that the trunk water fee be charged to the property owners at the time they tie into the trunk water service in order to build up funds necessary for future projects, as it would be very difficult to collect the fees once properties are tied in to the system. He also suggested that the trunk water fee be lowered to approximately $625 per acre, and Council could review and raise the fee in the future as needed. Assistant Administrator O'Neill requested guidance from Council on establishing a policy for charging the trunk water fee for developed and undeveloped township parcels that petition to be annexed, and also for developed parcels currently located in the city and now requesting access to services. He suggested that the trunk water fee charged could be phased in with phase I of this project. Council could consider increasing the fee at such time that new development occurs. Page 6 Council Minutes - 11/14/94 After discussion, it was the consensus of Council that the Milton Olson property should not be charged the trunk water fee, as he has been paying city taxes for many years and yet has no access to utility services. Lastly, O'Neill noted that the lateral water expense estimated at $30,000 is also proposed to be split evenly between the five property owners. Assistant Administrator O'Neill reported that it is his understanding that John Michaelis is agreeable to paying a deposit of $10,000 for the plans and specifications in anticipation of the project moving forward; however, O'Neill noted that he will need to verify this with Michaelis. After further discussion, a motion was made by Clint Herbst to adapt a resolution accepting the feasibility study, ordering a public hearing, and ordering preparation of plans and specifications for sewer and water utility extensions to the southwest area, with City staff implementing a trunk water fee of $625, excluding the Milton Olson property. Motion is contingent upon receipt of a $10,000 deposit from Michaelis to cover the cost of preparation of plans and specifications. Motion was seconded by Dan Blonigen and unanimously carried, with Shirley Anderson absent. SEE RESOLUTION 94-35. 11. Consideration of enterin into an a Bement with H-Window Com an concernin future ac uisition of Lots 1 2 and 3 Block 1 Oakwood Industrial Park Second Addition. City Administrator Rick Wolfsteller reported that the right of first refusal agreement between H-Window Company and the City for Lots 1, 2, and 3, Block 1, Oakwood Industrial Park Second Addition, expired in January 1994. Although no further extensions have been requested by H-Window, at the time the sale of Lot 4 to Miley Gjertsen was considered by Council, H- Window indicated a continued interest in ensuring the availability of Lots 1, 2, and 3 for future expansion of their company but did not want to commit to an immediate purchase of these three lots. Wolfsteller went on to report that he informed Mr. Steve Lemme of H- Window Company that the following four alternatives, and any suggestions presented by H-Window, would be considered by Council on November 14: 1. Council could enter into an option agreement with the H-Window Company on the sale of Lots 1, 2, and 3 at the current asking price of $17,500 per acre, with the annual option Fee to be calculated at a percentage rate agreed to by Council. 2. Council could establish an option agreement with an annual fee noted in option #1 but also request an additional annual fee to cover the estimated property taxes that would be lost until the sale occurred. Page 7 Council Minutes - 11/14/94 3. Council could offer to sell the property to H-Window with terms such as no down payment, 20-year contract for deed at 6% interest, etc. 4. Council could decide to continue with the right of first refusal on all three lots and direct staff to continue marketing efforts to sell the property to other industrial users. Wolfsteller noted that no comments or offers have been received from H- Window at this time. After discussion, it was the consensus of Council that since City staff has notified H-Window that Council would consider options for securing the availability of Lots 1, 2, and 3 as requested by H-Window but no response has been received from them, the lots sho~~ld be placed on the open market. Staff was also directed to notify H-Window that if a purchase offer is received from another company for any of these lots, H-Window will no longer be notified and given first chance to purchase the property. 12. Consideration of authorization of artici atin in soil investi ativn near West 5th Street and Locust Street. Public Works Director John Simola noted that City staff has been working with Burlington Northern, JM Oil, and Riverside Oil for the past two years to have a soil investigation performed to determine whether or not soil and/or ground water contamination exists beneath the bulk oil plant located at West 5th Street and Locust Street north of the City's existing fire hall. Simola reported that soil investigatian quotes have been received from American Engineering, Braun Engineering, and B.A. Liesch Associates ranging from $4,500 to $11,500. The quotes are based upon three separate approaches to the investigatian and include five sites: The Nelson Oil site, the JM Oil site, Riverside Oil, the City's fire hall site, and the Sunny Fresh Foods site near the existing well. Simola went on to note that on Wednesday, November 9, staff met with all involved parties in an attempt to perform a joint voluntary soil investigation. It was suggested that the City order the investigation work from Braun Engineering at a cost of $4,500, with each party reimbursing the City their $900 share of the project. All parties agreed that this seemed to be a logical approach to the problem; however, Burlington Northern had some concerns about paying for the investigative work on the Nelson Oil site since the last owner is bankrupt. Simola reported that since the meeting nn November 9, he has been notified that Sunny Fresh, JM Oil, and Riverside Oil will participate in the voluntary investigation. Burlington Northern will be investigating on their awn in the area of the Sunny Fresh wells, as they didn't feel they shauld participate in testing of the Nelson Oil site since the last owner is still Page 8 Council Minutes - 11/14/94 considered a solvent company, which would result in the City's share of the investigation cast being increased to $1,800. They have agreed, however, to allow the City access to the site should we decide to investigate it. Simola reported that since this site is the oldest bulk plant in Monticello, knowing whether or not this area is contaminated far an additional $900 would be money well spent by the City. Councilmember Herbst asked who would be responsible for cleaning up the Nelson Oil site should the City find the area to be severely contaminated. Simola responded that the findings would be sent to the Minnesota Pollution Control Agency, and they would handle the situation. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to authorize the soil investigation by Braun Engineering at a cost of $4,500, with the City paying the $900 cost for the fire hall site and the $900 for the Nelson Oil site. Motion carried unanimously, with Shirley Anderson absent. Staff was directed to notify Burlington Northern that the City would like to be reimbursed for the soil investigation at the Nelson Oil site. Shirley Anderson arrived at this point in the meeting. 13. Consideration of reviewin third uarter li uor store financial re orts. City Administrator Wolfsteller reported that overall sales far the first nine months are up $46,000 over the same period last year, but the cost of goods sold is also rising, which resulted in the gross profit actually being lowered by $1,300 compared to last year. However, Wolfsteller explained that expenses of operation have also decreased, which resulted in an operating income increase of approximately $2,500 for a total of $117,391 for the first nine months. He noted that this operating income amounts to approximately a 10.3% return on total sales, which is very acceptable for an off-sale store. Wolfsteller also noted that total expenses so far this year are approximately $4,000 lower than last year due to a change in the City's dram shop liability insurance, which has saved the City over $5,000 annually. Joe Hartman, Hi-Way Liquors Manager, stated that he is pleased with the third quarter reports and will continue to watch the gross profits. He also noted that prices have continued to stay competitive with the surrounding area. After discussion, it was the consensus of Council to approve the third quarter liquor store financial report as presented. Page 9 Council Minutes - 11/14/94 14. Consideration of authorizin a sisals of land for bio-solids a lication. Public Works Director Simola reported that for the past several years, staff has been investigating sites within a 5-mile radius of the wastewater treatment plant for the purpose of future bio-solids applications. He noted that staff has considered leasing as well as purchasing property, and Council is asked to authorize staff to obtain appraisals for one or two sites at a cost of approximately $700 per site, which would give staff a basis on which to make an offer. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to authorize an appraisal on one or two sites at a cost of $700 per site. Motion carried unanimously. 15. Consideration of worksho or ublic hearin on the wastewater facilities ~• John Simola stated that Council previously authorized OSM and RCM to jointly prepare a facilities plan for the expansion of the Cites wastewater treatment facilities or the addition of another facility at an alternate location. He noted that the plan addresses four alternatives for expansion or an additional treatment plant at casts ranging from $9.9 million to $13.1 million and also outlines phased construction at costs ranging from $5.6 million to $8 million. Incremental improvements to the existing wastewater treatment plant in the area of $125,000 are also being considered. At this time, Council is asked to either hold a workshop session to discuss the plan and then schedule a public hearing yr discuss the plan at a public hearing. Simola noted that a public hearing is recommended before final acceptance of the plan in order to lay the groundwork for participation from the State of Minnesota such as a low interest construction loan. After discussion, it was the consensus of Council to wait until the newly- elected Council members take office in 1995 and a public hearing will be scheduled at that time. 16. Consideration of amendin buildin ermit and unlit access fee structure. Assistant Administrator O'Neill reported that City staff has surveyed a number of communities and found that Monticello's fees are well below the average charged by other communities. He noted that fees have not been increased since 1988, which results in the need for a relatively large increase at this time. O'Neill went on to review the building permit fee survey, which was based on the hypothetical construction of a 1300 sq ft rambler. He noted that Manticello's current inspection fee far this type of construction is $542, Page 10 Council Minutes - 11/].4/94 which is 90%v of the rate recommended under the Uniform Building Cade. Staff proposes that the City increase the fee by charging 100% of the rate recommended under the UBC, or $602 in this case, as do the majority of the cities surveyed. Similarly, the City charges only 10% of the building permit fee for plan review, and it is proposed that we adjust the plan review fee to equal 50%v of the building permit fee. O'Neill noted that in the past the plan review fee remained low due to the additional $200 expense of the survey requirement. This allowed Monticello to stay competitive with surrounding cities. O'Neill continued by proposing that the water access fee be increased from $300 to $500, as the current $300 fee is well below the average of $632. In addition, the increase as proposed would also result in a 66%v increase in the hookup fees associated with commercial and industrial users. It is also proposed that the sewer access fee be increased from $300 to $1,200 to help fund improvements to our sewer system and a portion of the design cost or expansion for the wastewater treatment plant. This increase would again result in a concurrent increase in fees charged to industrial and commercial users. The new fee would place Monticello below what Rogers and Elk River charge but higher than fees charged by Buffalo. O'Neill noted that the Industrial Development Committee reviewed the proposed changes to the sewer and water access fees and voted to request that Council maintain the current fees for industrial users; however, if Council feels an increase is necessary, the IDC requests that it not exceed the amount Buffalo charges. Ollie Koropchak also reviewed the IDC recommendation and its basis. Public Works Director Simola added that for those companies who create jobs, the City can reimburse companies through methods such as tax increment financing, low interest loans, cash incentives, etc., yet keep the present formula intact to ensure that industries pay their fair share. Lastly, O'Neill explained that the City Attorney is currently working on completing the details for the storm sewer access fee, and the total projected building permit fee noted on the fee survey does not include the estimated $600 storm sewer access fee per lot. Mayor Fyle commented that Rogers and Elk River's fees are at the top of the survey and do not appear to be affecting development in that area. It was his view the fees proposed were fair to industry and residential development and would place Monticello closer to fees charged by surrounding communities. Tom Holthaus of Value Plus Homes stated that he disagrees with the proposed plan review fee. He noted that the cost of having the plans drawn is substantially less than the proposed plan review fee. Page 11 Council Minutes - 11/14/94 After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to adept the proposed fee structure changes as follows: Building permit fee 100°10 of 1988 Uniform Building Code recommended rate Mechanical residential - $30 base + $2 per fixture commercial - $50 base + $2 per fixture Plan review 50% of the building permit fee Plumbing Residential - $20 + $2 per fixture Commercial - $40 + $2 per fixture Sewer access fee Residential - $1,200 All others - $1,200 per unit Storm sewer access Pending Water access fee 1" line $ 500 + material cost (incl. meter) 1-1/4" $ 710 + material cost (incl. meter) 1-112" $ 920 + material cast (incl. meter) 2" $1,170 + material cost (incl. meter) 3" $1,500 + material cost (incl. meter) 4" $2,000 + material cost (incl. meter) 6" $2,500 + material cost (incl. meter) 8" $3,335 + material cost (incl. meter) It was the consensus of the Council that the new fee schedule will take effect January 1, 1995. Any building permit applications received after January 1, 1995, will be charged according to the new fee schedule; in addition, anyone who paid for a building permit in 1994 but is not hooked up to sewer and water by January 1, 1995, will be billed an additional amount equaling the new access rates. Motion carried unanimously. 17. Consideration of ado tin a olic on water service disconnections. City Administrator Wolfsteller reported that during the past few years when the Council considers adoption of the delinquent assessment roll for non-payment of utility bills, concerns have been expressed over allowing individual properties to accumulate such large unpaid bills without disconnecting their water service. He noted that the current sewer and water ordinance does allow for disconnection for non-payment of quarterly bills; however, because of the large number of delinquent accounts, a large amount of the sewer and water department's time would be spent attempting to disconnect service to homes and businesses. Consequently, the City has been certifying delinquent accounts as special assessments Page 12 Council Minutes - 11/14/94 against individual properties, including an additional $25 administrative fee, rather than disconnecting service. Wolfsteller went on to explain that Council could adopt a disconnection policy for larger delinquent utility accounts with a $500 limit. Any delinquent account of this size would result in disconnection of service. Accounts smaller than $500 would continue to be certified to the property taxes. After discussion, a motion was made by Clint Herbst and seconded by Warren Smith to adapt the proposed disconnection policy establishing $500 as the amount allowed to accrue on utility accounts before the Public Works Department disconnects service. Motion carried unanimously. 18. Consideration of final a ent to R an Contractin Inc. For Pro'ect 93- 02C, Cardinal Hills 3rd Addition. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to make final payment to Ryan Contracting, Inc., in the amount of $44,145.14 pending delivery of the required warranty and documentation. Motion carried unanimously. 19. Review of bids and conside__ration of award of contract for purchase of 125 kw emerVency Venerator for the water department. The Public Works Director Simola reported that on November 9 three bids were received for purchase of a 125 kw emergency generator far the water department as follows: Flaherty Equipment Corp. $40,648 Interstate Detroit Diesel, Inc. $36,450 Ziegler Power Systems $28,435 Simola noted that it has been verified that the generator proposed by the lnw bidder, Ziegler Power Systems, does meet specifications. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to award the contract for purchase of the 125 kw emergency generator to Ziegler Power Systems in the amount of $28,435. Motion carried unanimously. There being no other business, the meeting was adjourned. ~~ ~~~ ,l r n Doty Qffice Manager Page 13