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City Council Minutes 05-24-1982MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL May 24, 1982 - 7:30 P.M. Members Present: Arve Grimsmo, Fran Fair, Phil White, Ken Maus, Dan Blonigen. Members Absent: None. I. Call To Order. A. Approval of the Minutes. A motion was made by Fair, second- ed by Blonigen and unanimously carried to approve the minutes of the regular council meeting held May 10th, 1982. II. Unfinished Business. A. Consideration of Alternate Proposals on City Maintenance Building. Previously, bids were received by the City for the construc- tion of a new pole building at the maintenance property site with the low bid being $19,324 from Menard's Inc. and the next lowest bidder being Lester's Inc. in the amount of $19,368. Council member Blonigen had concerns that the building was over specified and similar typekuildings could be built for much less and submitted to the Council a comparative bid sheet indicating that a similar building could be built for approximately $1,547 less than the low bid received if the building was built not to be insulated in the future. Mr. Blonigen also noted that although the dollar difference is not that large, he felt that the City may still eventually spend $10,000 more when the building is completed and fully insulated to the Public Works Department's requirements and as a result, maybe the City should be looking at adding an additional stall to the present concrete maintenance build- ing instead. Although the Public Works Director agreed that an additional stall to the concrete building would be prefer- able, the estimated cost would probably be two or three times as much as a separate pole building. Mayor Grimsmo noted that comments have been made to him from other builders and other building inspectors that possibly the City would be getting a better value for its money by building a Lester's building versus a Menard's building as better materials would be used by Lester's Inc. Mayor Grimsmo noted problems that the City of Becker has had with Menard's buildings in regard to warping of the lumber, etc. Councilmen Blonigen also noted that in his experience as a building contractor, Menard's materials - 1 - Council Minutes - 5/24/82 appeared to be less than desirable in regard to moisture content etc. resulting in shrinkage etc. of the lumber. Loren Klein, City Building Inspector, also agreed that in his opinion, it would be in the City's best interest to award the contract to Lester's based on quality of ma- terials provided and better anchoring of poles to footings. It was Mr. Grimsmo's recommendation that the bid be award- ed to Lester's Inc. for the additional cost of $44.00 over the low bid of Menard's. A motion was made by White, seconded by Maus to award the contract for the construction of a pole building at the maintenance garage to Lester's Inc. of Lester Prairie in the base bid amount of $19,368.00. Voting in favor was White, Maus, Fair and Grimsmo with Blonigen opposing the motion because it was still his opinion that a different type of building should be built and the opposition to the motion was not meant to be supporting Menard's low bid over Lester's Inc. B. Consideration of Appraisal of 15 feet of Chestnut Street as per Vacation Request. At the previous Council meeting, Mr. Paul Lutzke of 824 West Broadway petitioned the City of Monticello requesting that a portion of Chestnut Street lying adjacent to his property be vacated to allow him to build a double garage on a portion of the vacated street. No action was taken by the Council at the previous meeting regarding vacation to allow an appraisal to be obtained on the value of the east 15 foot portion. An appraisal of the estimated value of the street to be vacated was obtained from Mr. John Sandberg of Sandberg Realty who estimated the value between $500 and $1,000 for the 15 foot by 165 foot parcel depending on the cost to the city for the transferring of these parcels to the adjoining property owners. The Council concensus was that unless the value of the property was sufficient to justify vacating, it may be in the best interest of the City not to vacate the pro- perty. As a result, a motion was made White, seconded by Fair and unanimously carried to approve vacating the east 15 feet of Chestnut Street between Broadway and 3rd street Council Minutes - 5/24/82 and to offer each 15 by 165 foot parcel to the abutting property owners at a cost of $750 each with the offer being good until December 1, 1982 for purchase. C. Report on Cost Related to Replacement of Man Hole at Intersection of Hwys 75 and 25. Public Works Director, John Simola, reviewed with the Council quotes he has received for the repair of the man hole located at the intersection of Hwy 25 and 75. Mr. Simola noted that two major contractors he has contacted have indicated that they would only quote the job based on time and materials and have estimated the cost at about $10,000 due to its difficult location. The only quote received so far was from Utilities Services Company which estimated the cost at $4,950. Mr. Simola noted that this company has previously repaired a man hole along Hwy 25 and did do an adequate job. As a result, a motion was made by Blonigen seconded by Maus and unanimously carried to authorize the Public Works Director to enter into an agreement with Utilities Service Company in the amount of $4,950 for the repair and replace- ment of the existing manhole at the intersection of Hwy 75 and State Hwy 25. III. New Business. A. Consideration of Change Orders #34, #35 and #36 for the Wastewater Treatment Plant. Three additional change orders on the construction at the Wastewater Treatment Plant with the Paul A. Laurence Company have been recommended by the city engineer and city staff as follows: #34 - Replacement of material only on the sludge collect- ing mechanisms in the existing final clarifier for an additional amount of $12,543.00. #35 - Adjustment of unit ;rices on quantities for curb and gutter and bituminous street surfacing to accommodate a revision of bituminous curb to con- crete curb and gutter. No exact dollar change at present time. #36 - The relocation of gas scrubber and purification system into a new separate housing structure to comply with safety requirements of the state building code, an additional $12,588. - 3 - Council Minutes - 5/24/82 A motion was made by Blonigen, seconded by White and unanimously carried to approve change orders #34 through #36 in the amount of $25,131.00 on the Wastewater Treat- ment Plant construction project with the Paul A. Laurence Company, the general contractor. B. Continuation of Public Hearing - Vacation of the Westerly 15 feet of City Easement Lying Over Vacated Cedar Street. Mr. Willard Murphy, owner of Americ-Inn, appeared previous- ly before the Planning Commission to request a vacation of the westerly 15 feet of the city easement which lies over Cedar Street which was previously vacated on February 25th, 1980 and sold to Mr. Murphy and the V.F.W. Club in March of of 1981. Mr. Murphy would like to be able to use a portion of the vacated street for his proposed motel to be situated on. The proposal calls for the building to be situated approximately 7 feet over into the vacated portion of the street which currently has easement rights by the City, NSP and Bridgewater Telephone Company. In order to allow this, the City would have to release the easement rights over the portion of the street that the building would be situated on and Northern States Power Company has indicated that they would have no problem with releasing the easement rights up to 25 feet of the east portion of the street. Bridgewater Telephone Company has indicated that they do presently have a telephone pad located in the east 15 foot of the vacated street and would be willing to only release the easement over the portion of the street that the building would actually be situated on plus an allow- ance for the building drip line at the present time and in the future would not object to releasing their easement rights over the entire easterly 15 feet of the street once they have moved their telephone pad. It was noted by the Building Inspector, Loren Klein, that letters from NSP and Bridgewater Telephone Company indicat- ing their agreement with the releasing of the easements will be forth coming and as a result, a motion was made by White, seconded by Blonigen and unanimously carried to approve vacating the easements over the approximate 7 foot area that the building proposed by the motel will be located on, legal description as follows: Council Minutes - 5/24/82 Beginning at the northeasterly corner of Lot 6 - Block 3: thence southwesterly along the easterly line of Lot 6 - Block 3 for a distance of 130.0 feet: thence easterly 90 degrees from the easterly line of said Lot 6 - Block 3, a distance of 18.0 feet: thence southwesterly parallel to the easter- ly line of said Lot 6 - Block 3, a distance of 185.0 feet: thence westerly 90 degrees to the easterly line of said Lot 6 - Block 3, a distance of 18.0 feet to the easterly line of said Lot 6 - Block 3: thence northwesterly along the easterly line of said Lot 6 - Block 3, a distance of 315.0 feet to the point of beginning. C. Review of Liquor Store Quarterly Report. Liquor Store Manager, Mark Irmiter, reviewed with the Council the results of the first quarter operation and financial report. Total sales for the first quarter of 1982 increased approximately $6,000 over the same period last year and the resulting gross profit in- creased approximately $5,700 resulting in a gross profit percentage of almost 210. Operating income rose to $9,900 versus $5,900 the previous year. It was noted by Mr. Irmiter that traditionally the first quarter is the slower quarter of the year and he expects the balance of the year to show continued good results. A motion was made by Fair, seconded by Maus and unani- mously carried to accept the first quarter liquor store report as presented. D. Approval of the Bills for the Month of May. A motion was made by Blonigen, seconded by Fair and unanimously carried to approve the bills for the month of May, 1982 as presented. (See Exhibit #1). E. Review of Preliminary Visibility Report on Widening 7th Street Between Hwy 25 and Cedar Street. John Badalich, City Engineer, presented to the Council some preliminary cost estimates for improving 7th Street - 5 - Council Minutes - 5/24/82 between Hwy 25 and Cedar Street with bituminous surfacing and curb and gutter. A number of alternatives were dis- cussed as follows: - A 44 foot street with curb and gutter on center line was estimated at $48,285.00 with a concrete retaining wall and $38,385.00 with a timberwood retaining wall. - A 44 foot street with curb and gutter 10 feet south of center line with a concrete retaining wall at $36,585.00 and $33,285.00 with a timber - wood retaining wall. - A 44 foot wide street with a 5 foot shoulder on center line was estimated at $43,610.00 with a concrete retaining wall and $33,710.00 with a timberwood retaining wall. - A 40 foot wide street with 5 foot shoulders located 10 feet south of center line was estimated at $31,910.00 with a concrete retaining wall and $28,610.00 with a timberwood retaining wall. In reviewing the alternates available, it was recommended by the City Engineer and also the concensus of the Council that the improvement of 7th Street should be moved at least 10 feet to the south in order to reduce the cost associated with the retaining wall near the cemetery. In addition, the two property owners located on the south side of 7th Street, namely Perkins Restaurant and W.J. Murphy, have indicated they would like to see the street improved with curb and gutter and a petition will be forth- coming from the property owners requesting the improvement. As a result, a motion was made by Maus, seconded by White and unanimously carried to authorize the City Engineer to draw up plans and specifications with the alternates pre- sented and prepare a report on the estimated assessment cost to the affected property owners. Mee g Adjourned. C SLI" Rick WolfsteiLer v Assistant Administrator - 6 -