City Council Minutes 01-22-1996MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, January 22, 1996 - 7 p.m.
Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom
Perrault
Members Absent: None
2. Approval of minutes of the regular meeting held January 8, 1996.
It was noted that on page 6 of the minutes, the Shingobee plat is located
directly south of the Tom Thumb store rather than north.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO APPROVE THE MINUTES OF THE
REGULAR MEETING HELD JANUARY 8, 1996, AS CORRECTED. Motion carried
unanimously.
3. Consideration of adding items to the agenda.
A. Consideration of conce tp ual approval of agreement governing sanitary
sewer connection of the Kjellberg East and West Mobile Home Parks.
Assistant Administrator Jeff O'Neill reported that Kent Kjellberg has
been negotiating with the City in an attempt to arrange hook-up of the
Kjellberg East and West Mobile Home Parks to the city sanitary sewer
system. The conceptual proposal describing the terms for connection of
the east park was summarized by O'Neill. He noted that the proposed
terms were conceptual only and would need to be incorporated into a
development agreement.
Council discussed the east park proposal in regard to on-site storm
ponding and the private sewer system in the park. It was suggested
by Consulting Engineer Bret Weiss that the City should retain the
option of charging the fee at the time the east park contributes to the
storm water run-off system; however, if additional ponding is provided,
credit can be given against the required fees. In regard to the private
sewer system, Public Works Director Simola noted that the present
manholes don't meet construction standards and should be upgraded.
Kent Kjellberg, owner of the mobile home park, stated that he agreed
to bring the manholes up to standards.
Based on the Council discussion, the proposal for sanitary sewer
connection for the east park was as follows:
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East Park Proposal
1. Kjellberg will extend a utility line to the city system located
north of the east mobile home park and provide a deposit equal
to the cost of a city inspector monitoring the private line
installation.
2. Kjellberg agrees to paying an area assessment charge of $37,500
as a special assessment over 15 years.
3. The City will obtain storm water easement rights in excess of
that which is required for the site in lieu of storm water access
fees. Any difference in value between the extra land provided
for storm water ponding and the required storm water fees shall
be paid to the City by Kjellberg.
4. Kjellberg will pay a hookup fee of $36,300 (120 units x $300/
unit) prior to hook-up of any individual units installed in the
expansion area.
5. Kjellberg will pay the total cost to install a sewage flow meter
device.
6. Kjellberg will be allowed to place new mobile homes in the
expansion area contingent upon the following:
A. Prior to moving new homes into the expansion area, the
sewer system installed in the expansion area must be
upgraded to assure that the system is completely
watertight and has increased capacity to handle all flows.
B. Kjellberg must install all of the necessary improvements
required under code such as installation of bituminous
paving, completion of all grading, and installation of curb
and gutter.
If Kjellberg desires to move mobile homes into the expansion
area prior to completion of the above work, he will be required to
enter into a disbursement agreement.
7. At the time the development agreement is executed, Kjellberg
must provide a deposit of $18,000, which is equal to one-half of
the connection fees. In addition, Kjellberg must provide a
$2,000 deposit immediately to help fund the cost of completion
of the development agreement.
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AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON
AND SECONDED BY BRIAN STUMPF TO APPROVE THE ABOVE
PROPOSAL FOR CONNECTING THE KJELLBERG EAST MOBILE HOME
PARK TO THE CITY SANITARY SEWER SYSTEM AND TO AUTHORIZE
PREPARATION OF A DEVELOPER AGREEMENT CONTINGENT ON
KJELLBERG PROVIDING A $2,000 DEPOSIT. THE DEADLINE FOR
MAKING THE DEPOSIT WAS SET AT JANUARY 22, 1996, AND THE
DEADLINE FOR EXECUTION OF THE DEVELOPMENT AGREEMENT
WAS SET AT FEBRUARY 22, 1996. Motion carried unanimously.
O'Neill then outlined the proposal to hook-up the west mobile home
park. He noted the PCA has agreed to increase the City's wastewater
treatment loading limits in an amount equal to the load the City would
receive from the west mobile home park. The connection of the west
park would not take place until late 1997 or until there is sufficient
capacity to serve it.
Council discussed Kjellberg's request to pay the 1995 hook-up rates for
the west park expansion area. It was Council's view that all
developers should pay the current hook-up rate and that charging a
lesser rate for Kjellberg's expansion area would set a precedent.
Based on the Council discussion, the proposal for sanitary sewer
connection for the west park was as follows:
West Park Proposal
1. Kjellberg agrees to pay the cost to extend the necessary sanitary
sewer lines; however, the City will install the line following city
design standards and assess the expense against the west park.
The assessment amount will be based on a diagonal alignment
across adjacent City -owned property.
2. Kjellberg will pay to obtain land or easements needed to
accommodate the sewer line.
3. At such time that the City sells or develops its site adjacent to
the mobile home park, a portion of the revenue equal to the
value of the sanitary sewer line serving the site will be provided
to Kjellberg as a repayment for his cost associated with
extending the line.
4. Kjellberg will pay an area assessment fee of $75,000 and hook-
up fees in the amount of $180,000. These fees reflect the 1995
rates because it is an existing development and the City has
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been negotiating hook-up with Kjellberg for a number of
months. Kjellberg agrees to pay $200,000 in cash, with the
remaining amount of $55,000 to be assessed against the
property.
5. Kjellberg will provide sanitary sewer and utility easements
through his property and to points west of his site.
6. The prevailing policy for collecting garbage at the west park will
apply, and the overall policy is subject to change.
7. Kjellberg must pay the prevailing rate for hook-up of a future
west park expansion area at the time of connection to city
sanitary sewer service.
8. Kjellberg will pay the standard quarterly sewer service fee.
9. The west mobile home park will be allowed to connect to the city
sanitary sewer system after the wastewater treatment plant
expansion project is completed.
AFTER DISCUSSION, A MOTION WAS MADE BY BRAD FYLE AND
SECONDED BY SHIRLEY ANDERSON TO APPROVE THE ABOVE
PROPOSAL FOR CONNECTING THE KJELLBERG WEST MOBILE HOME
PARK TO THE CITY SANITARY SEWER SYSTEM. MOTION INCLUDES
AUTHORIZATION FOR THE ASSISTANT ADMINISTRATOR TO MEET
WITH KJELLBERG TO NEGOTIATE A METHOD OF FINANCING THE
$31,000 GAP BETWEEN THE 1996 (PREVAILING) AND 1995 HOOK-UP
RATES IN REGARD TO THE EXPANSION AREA. Motion carried
unanimously.
B. Mayor Fyle noted that the public works department did a good job
getting the streets cleared after the last snowstorm; however, he
requested that the fire station area be given a higher priority. In
addition, Fyle requested that the streets in the downtown area be
plowed before the outlying residential streets.
The Public Works Director noted that the addition of another
operator/mechanic will also help increase the efficiency of the plowing
crew.
4. Citizens comments/petitions, requests, and complaints.
None.
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5. Consent Agenda.
A. Consideration of liquor store clerk/cashier appointment.
Recommendation: Appoint Michael Fischbach to the permanent
full-time liquor store clerk/cashier position at Grade 3, Step 2,
$10.18/hr.
Recommendation: Approve the final plat of the Shingobee
subdivision contingent on preparation and execution of a maintenance
agreement covering the service road.
C. Consideration to approve the Second Amended and Restated
Assessment Agreement for the Private Redevelopment Contract
between the HRA and Tappers.
Recommendation: Approve the Second Amended and Restated
Assessment Agreement for the Private Redevelopment Contract
between the HRA and Tappers.
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY SHIRLEY
ANDERSON TO APPROVE THE CONSENT AGENDA AS RECOMMENDED.
Motion carried unanimously.
6. Public hearing on adoption of proposed assessment roll for delinquent utility
bills and certification of assessment roll to County Auditor.
Mayor Fyle opened the public hearing.
City Administrator Rick Wolfsteller explained that the delinquent utility
accounts included in the assessment roll are at least 60 days past due, and
the amounts shown include the additional $25 administration fee previously
approved by the Council.
There being no public comment, Mayor Fyle closed the public hearing.
Mayor Fyle requested that the City Administrator check with the County on
whether the property owners with delinquent utility accounts are also
delinquent on paying real estate taxes.
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AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND
SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION ADOPTING THE
ASSESSMENT ROLL FOR THE DELINQUENT UTILITY ACCOUNTS AS
PRESENTED. Motion carried unanimously. SEE RESOLUTION 96-4.
7. Public Hearing --Consideration of adopting a resolution modifying Central
Redevelopment Project No 1, modiWng TIF District Nos. 1-1 through_ 1-18,
and approving the Central Monticello Redevelopment Plan and TIF Plans
relating thereto.
Mayor Fyle opened the public hearing.
Economic Development Director 011ie Koropchak reported that the
modification to the Central Redevelopment Project No. 1 would allow the
HRA the flexibility to consider acquisition of properties they have identified
for possible redevelopment.
Councilmembers noted that there did not seem to be any benefit to the City
in the HRA purchasing parcel #155-015-003060. It was suggested that
perhaps the City should consider the condemnation process prior to
purchase. Koropchak explained that the HRA's intention was not to hold the
property but to demolish the building and re -sell it to a developer.
There being no comment from the public, Mayor Fyle closed the public
hearing.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY SHIRLEY ANDERSON TO ADOPT A RESOLUTION MODIFYING
CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1; MODIFYING TIF
DISTRICT NOS. 1-1 THROUGH 1-18; AND APPROVING THE CENTRAL
MONTICELLO REDEVELOPMENT PLAN AND TIF PLANS RELATING THERETO.
Motion includes that the HRA notify the Council prior to purchase of parcel
#155-015-003060. Motion carried unanimously. SEE RESOLUTION 96-5.
8. Consideration of purchase agreement with Ken Bohanon to purchase 158 -
acre farm.
Public Works Director John Simola reported that at the last meeting, Council
authorized staff to enter into a purchase agreement for the Bohanon farm at
a price of $525,000. A basic guideline for the purchase and contract for deed
was formulated by staff, from which the City Attorney would draft a
purchase agreement.
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Councilmember Herbst stated that he had received a call from Henry
Blonigen regarding 80 acres on East County Road 39 which could be used for
sludge application. Herbst suggested that the City research the site for
class B sludge application, which would allow the City to maintain the
Bohanon farm site as a class A sludge application site. The Mayor responded
that the Blonigen site was rolling and also contained some low marginal
land. Simola also noted that if the property in question was the old George
Johnson farm, the City had used a portion of the property for sludge
application in the past but quit using it after run-off concerns due to the
slopes and a nearby intermittent stream.
AFTER DISCUSSION, A MOTION WAS MADE BY TOM PERRAULT AND
SECONDED BY BRAD FYLE TO APPROVE THE PURCHASE AGREEMENT FOR
THE BOHANON FARM AS DRAFTED AND APPROVED BY THE CITY
ATTORNEY. Voting in favor: Tom Perrault, Brad Fyle, Shirley Anderson,
Clint Herbst. Opposed: Brian Stumpf. It was Stumpf's view that the City
should investigate smaller sites rather than purchase a 158 -acre parcel at
this time. Motion carried.
Public Works Director John Simola reported that since topographic
information is a required part of the MPCA sludge facility application and
concerned neighbors have raised questions about the run-off from the
Bohanon property, he suggested that the City hire MARKHURD to produce
topographic information of the farm, including a 300 -ft radius around the
property, at a cost of $2,980. In addition, if the Council intends to consider
the YMCA farm land as an additional sludge site, topographic information
could be obtained for an additional $900. This information would then be
reviewed by HDR to determine if there are any concerns of run-off from the
property in regard to using it as a sludge application facility.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO AUTHORIZE TOPOGRAPHIC MAPPING OF
THE 158 -ACRE BOHANON FARM, INCLUDING A 300 -FT DISTANCE AROUND
IT, AT A COST OF $2,980. Voting in favor: Shirley Anderson, Clint Herbst,
Brad Fyle. Opposed: Tom Perrault, Brian Stumpf. Motion passed.
10. Consideration of ratifying purchase of Kruse property.
City Administrator Wolfsteller reported that at the previous meeting, the
City Council made a counteroffer for the 6 -acre Kruse parcel adjacent to the
wastewater treatment plant in the amount of $300,000, with Floyd Kruse
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required to pay all deferred assessments estimated at $22,000 with interest.
Floyd Kruse then made a counteroffer indicating he would accept $300,000,
with the City assuming any deferred assessment debt.
Wolfsteller noted that after speaking with each Council member, a counter-
proposal was relayed to Kruse to purchase the 6 -acre parcel for $300,000
with the requirement that Kruse pay the original deferred assessment
totaling $9,150, which would result in the City acquiring the property at a
cost of $290,850.
It was also noted that HDR had been instructed to halt design work relating
to location of the treatment plant expansion on only the City's property and
to begin preparing to use the additional 6 acres in the final design. The cost
of the additional engineering design work was estimated at $50,000.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO RATIFY THE PURCHASE OF THE 6 -ACRE
KRUSE PROPERTY ADJACENT TO THE WASTEWATER TREATMENT PLANT
FOR A NET DOLLAR AMOUNT OF $290,850. Voting in favor: Shirley
Anderson, Tom Perrault, Clint Herbst, Brad Fyle. Opposed: Brian Stumpf.
It was Stumpf s view that the City should expand the plant on the current
site. Motion carried.
11. (consideration of relocating wastewater treatment plant expansion to Kruse
pa cel•
Public Works Director Simola reported that by locating the plant on the
Kruse property, the City would avoid between $435,000 and $520,000 in
construction cost which would have been necessary if the plant was expanded
on the current site; however, he also reviewed the added cost of locating the
plant on the Kruse property, which was estimated between $242,000 and
$254,000. In addition, the cost of the engineer's redesign work was estimated
at $48,000. Simola also discussed the need to fast-track the first stage
digester cover replacement and the inevitable impact of the plant expansion
on the wetland on the Kruse parcel.
Based upon the improvement to the plant hydraulic profile, the easier
expandability of the treatment plant toward the center, and the information
presented by HDR regarding the avoidance costs, staff recommended that the
Council approve relocating the plant expansion to the Kruse parcel.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO RELOCATE THE PROPOSED
CONSTRUCTION OF THE SBR TANKS AND HEADWORKS BUILDING TO THE
KRUSE PARCEL BASED UPON THE PREMISE THAT THE AVOIDANCE COSTS
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OF CONSTRUCTION ON THIS PARCEL FAR OUTWEIGH THE COSTS OF
REDESIGNING AND ADDING ADDITIONAL FENCING AND PIPING AND THE
TIME NECESSARY TO DO THESE TASKS. Voting in favor: Shirley Anderson,
Tom Perrault, Brad Fyle, Clint Herbst. Opposed: Brian Stumpf. Motion
carried.
12. Consideration of appointment of consulting egineer and approval of contract
for services.
City Administrator Wolfsteller reported that based on the Council's
indication at the last meeting that WSB would be considered as the City's
primary consulting engineer, a proposed contract had been negotiated. He
noted that the fee schedule proposed by WSB for hourly services was
approximately 10-20% lower than the previous fee arrangement with OSM.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO APPOINT WSB & ASSOCIATES AS LEAD
CONSULTING ENGINEER FOR THE CITY OF MONTICELLO AND,
SPECIFICALLY, BRET WEISS AS CITY ENGINEER, CONTINGENT UPON
APPROVAL OF THE CONTRACT BY THE CITY ATTORNEY. Motion carried
unanimously.
13. Consideration of authorizing rentaUpurchase of clothing for building
inspection department.
City Administrator Wolfsteller reported that the Building Official has
requested that Council consider allowing the building inspection department
a clothing allowance for purchasing shirts, pants, and jackets due to the
higher -than -normal wear and tear on his clothes compared to office
personnel and for better identification of building inspection employees. The
City currently provides weekly rental of clothing, including laundering, for
the public works department employees at a cost of $450 annually.
Quotes received for purchasing the sportswear type clothing from R & D
Sales amounted to $891.50 and $949 from MVP Sports. G & K Services
quoted the purchase of commercial -type clothing at $614. The cost of renting
commercial -type clothing from G & K Services would be $8.37/wk, or
$435.24/yr.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY SHIRLEY ANDERSON TO AUTHORIZE THE PURCHASE OF 3
LONG SLEEVE AND 3 SHORT SLEEVE SHIRTS, 1 PAIR INSULATED
COVERALLS, AND 1 PAIR UNINSULATED COVERALLS FROM R & D SALES.
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Voting in favor: Clint Herbst, Shirley Anderson, Tom Perrault, Brad Fyle.
Opposed: Brian Stumpf. It was Stumpfs view that the Building Official
should be given a clothing allowance to purchase items he felt were
necessary. Motion carried.
14. Consideration of approving bills for the month of January.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO APPROVE THE BILLS FOR THE MONTH OF
JANUARY AS PRESENTED. Motion carried unanimously.
• ��
A. Chuck Lepak of OSM stated that, in light of WSB's appointment as
City Engineer, OSM would work with City staff and WSB to maintain
an orderly transition of information to WSB, and OSM would continue
to work to meet the needs of the projects currently in progress.
There being no further business, the meeting was adjourned.
Kar\6n Doty
Office Manager
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