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City Council Minutes 09-14-1981MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL September 14, 1981 - 7:30 P.M. Members Present: Arve Grimsmo, Fran Fair, Ken Maus, Dan Blonigen, Phil White. Members Absent: None. 1. Consideration of the Award of the Sale of $490,000 General Obligation ImErovement Bonds of 1981. Five bids were received for the sale of bonds to finance the 1981-1 and 2 Improvement Projects which served a portion of the Meadows Subdivision plat and a portion of River Street close to NSP's new training facility with sewer, water, and street improvements and also storm sewer improvements along Cedar Street along Lauring Lane to the railroad tracks. Mr. Ron Langness of Springsted, Inc., reviewed with the Council the five bids received as follows: Name Bids Interest Rate Banc Northwest $336,674.58 11.6161 lst National Bank of Minneapolis 336,742.73 11.6184 Ellison Williams Company 338,637.53 11.6838 Piper,Jaffray, & Hopwood 340,160.20 11.7364 American National Bank & Trust 344,975.00 11.9025 Mr. Langness noted that the interest rate on the bonds were higher than previously planned on, but that the bond buyers index has in- creased to the point where some communities are having a difficult time even selling the issues at all below 120. It was Mr. Langness's recommendation that the City award the sale of the bonds to Banc Northwest at a net interest cost of $336,674.58 or 11.6161% interest rate. Motion was made by Blonigen, seconded by White and unanimously carried to adopt a resolution awarding the sale of $490,000 in General Obli- gation Improvement Bonds of 1981 to Banc Northwest of Minneapolis with a net interest dollar cost of $336,674.58.and with a net interest of 11.6161%. (See Resolution 1981-#30). - 1 - V Council Minutes - 9/14/81 2. Consideration of a Motion to Reconsider the Set Back Variance - John Bondhus. A request was made by Mr. John Bondhus to ask the City Council to reconsider his previous request for a variance to allow a warehouse building to exist within five feet of the property line. At the August 24, 1981 council meeting, this variance was denied. Prior to the August 24, 1981 council meeting, Mr. Bondhus requested and was granted a variance to allow the warehouse building to be located within 22 feet of the property line as opposed to a 40 foot normal set back requirement. At the time of construction, a foreman for Bondhus Tool responsible for constructing the building, located the building to within five feet of the property line to avoid some extra excavating costs and tree removal. Mr. Bondhus now requested that the council reconsider the five foot set back variance due to a financial hardship in moving the building to the required 22 foot set back. Mr. Bondhus indicated that the cost of relocating the building has been estimated at between $3500 to $4500. A motion was made by Fair, seconded by White to reconsider the vari- ance request for the requested five foot set back by Bondhus Corpora- tion. Voting in favor of the motion was Fair and White. Opposed was Grimsmo, Blonigen, and Maus. 3. Consideration of the Improvements to the Softball Field. Representatives from the Softball Association have indicated that they are now going ahead with seeding the softball area and requested that this item be cancelled. 4. Consideration of a Resolution Relating to a Project Under the Munici- � ti �•�•Lim^' i pal Industrial Development Act: Calling for a Public Hearing - Mel Wolters Office Buildin . Mr. Mel Wolters has requested that the City Council call for a public hearing for the issuance of $200,000 in commercial revenue bonds to finance an office building planned immediately west of his Dairy Queen in Monticello. According to Minnesota Statutes relating to this type of issue, a notice of a hearing must be published at least 15 days prior to the actual hearing date established. A motion was made by Maus, seconded by White to adopt a resolution calling for a public hearing for industrial development revenue bonds in the amount of $200,000for Mel Wolters on October 14, 1981. (See Resolution 1981-#29). Voting in favor: Grimsmo, White, Fair, and Maus. Opposed: Blonigen. Council Minutes - 9/14/81 5. Public Hearing - Proposed Use of Federal Revenue Sharing Funds. Regulations governing Federal Revenue Sharing Funds require that the City Council hold a public hearing prior to the adoption of the proposed budget for the following year. The purpose of the public hearing is to allow local citizens and groups an opportunity to pre- sent written and verbal comments on how the proposed revenue sharing money is to be spent. In 1982, it is expected that the City of Monticello will receive approximately $87,151.00 in Federal Revenue Sharing Funds. During the past three years, the City Council has appropriated its revenue sharing entitlements towards the city's share of the Wastewater Treatment Plant Project. It was recommended by the city administra- tor that the anticipated Revenue Sharing Funds totaling $87,151.00 be also appropriated towards the city's share of the Wastewater Treatment Plant construction. Hearing no comments from the public on other possible uses of the Federal Revenue Sharing Funds for 1982, a motion was made by White, seconded by Fair and unanimously carried to propose allocating the 1982 Revenue Sharing Funds in the amount of $87,151 towards the city's share of the Wastewater Treatment Plant construction project fund. 6. Consideration_ of Approval of a Joint City/School District Summer Recreation Program for 1982. In accordance with the agreement previously approved by the City Council of Monticello and the school district, Candy Benoit, the assistant Community Education Director, submitted to the council the 1982 budget for the summer recreation program as proposed by the joint advisory board. The proposed budget calls for an increase in the city's participa- tion from $8,059.50 to $12,469.62 based on a cost sharing formula of 50% for each. According to Candy Benoit, the assistant Community Education Director, the primary reasons for the budget increase were due mainly to an increase in swimming lessons and open swimming from the 81 budget figure of $963 to the proposed 82 figure of $3,494. Ms. Benoit explained that the 81 budget amount was just under budgeted and the 82 figure would be more reflective of the actual cost. The second primary reason was the increase in administration cost for the director, assistant director, and secretary of $5,610.00, accounting for over 600 of the increase. According to Ms. Benoit, this was due to the fact that in 1981, Community Education Director, Duane Gates, was on a leave of absence and his return to the staff would result in an overall increase of salaries for the Community Education staff. Additionally, the secret- ary whose time was allocated to community education has now reached a higher pay level and all of her costs relating to the recreation pro- gram and community education is being paid from that fund. - 3 - Council Minutes - 9/14/81 The council members expressed concern over the large percentage in- crease in the cost of running the summer recreation program and were mainly concerned about the large administrative cost of the budget. The administrative cost of running the recreation program as pro- posed for 82 would amount to over 430 of the total budget. Concerns were also expressed by the Council that when the city origi- nally went with a joint agreement whereby the cost of the summer program would be split 50 - 50, the city wasn't expecting the budget to jump from $16,000 in 1981 to almost $25,000 the following year. A motion was made by Fair to approve the budget for the joint summer recreation program for 1982 and the city's allocation being $12,469.62 or 500 of the budget. Hearing no second to the motion, the motion died. Due to the fact that the city's allocation to the summer recreation program has already increased from $2200 in 1977 to $8,059 in 1981, a motion was made by Maus, seconded by White, to approve a city allo- cation of $10,000 towards the joint summer recreation program for 1982. Voting in favor was Maus, White, Grimsmo, and Fair. Opposed: Blonigen. It was noted that Blonigen's opposition to the city participation in the joint recreation program is due to the fact that he feels the city residents are paying double by being taxed through school district and by the city. 7. Review of the Preliminary Budget for 1982. The Council members reviewed the preliminary budget proposed for 1982 which tentatively calls for a tax levy of $1,177,953. This proposed tax levy is approximately 12% more than was levied in 1981. Although the budget had not been reviewed in its entirety by the Council members, concerns were expressed by some of the members that the city should try to keep the mill levy the same for 1982 as was in 1981. It was noted that although the assessed valuation for 1982 has not been finalized by the county, the proposed budget may result in an approximate 3 mill increase in the local tax levy. A public hearing on the actual budget for 1982 will be held on Septem- ber 28th, at the next regular council meeting at which time the city administrator was requested to outline some alternatives for possible reductions in the proposed 82 budget. At the September 28th meeting, the Council will review the budget in detail to determine if areas can be found for reductions. - 4 - Council Minutes - 9/14/81 8. Consideration of Change Order #15 with Paul A. Laurence Company on the Wastewater Treatment Plant Contract. A change order was recommended by the Public Works Director, John Simola, and the city engineer, John Badalich, regarding the addition of the float leveler indicator and a hydraulic opening rear door on the new sludge hauling truck that is to be included as part of the Wastewater Treatment Plant grant. It was indicated by the engineer that the addition of these two items to the sludge hauling truck would amount to $1447 or the city's share being $144.00. A motion was made by Maus, seconded by Blonigen and unanimously carried to approve change order #15 for $1,447.00 for a hydraulic opening rear door and the addition of a float leveler indicator on the sludge hauling truck. 9. Scheduling of First Meeting in October. A motion was made by White,seconded by Blonigen and unanimously carried to reschedule the first meeting in October from October 12th, which is a legal holiday, to Wednesday, October 14th, 1981. 10. Approval of Minutes. A motion was made by Fair, seconded by Blonigen and unanimously carried to approve the minutes of the regular meeting held on August 24, 1981 as presented. Meeting adjourned. Lam' , Rick Wolf ste er Assistant Administrator - 5 -