City Council Minutes 06-14-1982MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
June 14, 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 Blonigen,
seconded by White and unanimously carried to approve the
minutes of the regular meeting held on May 24, 1982 as
presented.
II. Public Hearing
A. Informational Hearing on Burlington Northern Railroad's
Intent to Abandon the Rogers to Monticello Line.
Previously, the Burlington Northern Railroad filed a
Notice of Intent to abandon the Rogers to Monticello
Railroad line with the Minnesota Department of Trans-
portation and Interstate Commerce Commission. Mr. Dennis
McLeod, the branch line manager for BNRR, and Mr. Isaac
McCrary, Jr. with the Minnesota Department of Transpor-
tation and State Representative, Bob McEachern, were in
attendance at the meeting to hear opposing and supporting
positions regarding the abandonment.
Mr. McLeod of the BNRR reviewed with the public the pro-
cedures already taken by the railroad to abandon the line.
He had indicated that a notice was sent to all shippers of
the intent to abandon, and that a formal application to
abandon has been submitted to the ICC and the Yin'DOT. The
commission has 45 days to review any complaints from affect-
ed shippers, etc. and to determine if the abandonment can
proceed which is usually based on financial considerations
documentated by the railroad as to whether they are losing
money, etc. Currently, the BNRR considers this segment of
the railroad line unprofitable, even without considering
potential rehabilitation costs for upgrading the line. Mr.
McLeod noted that only 80 to 90 cars a year are using the
line resulting in losses exceeding $14,000 in 1981.
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Mr. Isaac McCrary, Jr. of MnDOT also noted that their depart-
ment's analysis shows that the car useage would have to quad-
ruple to make the line profitable for BNRR.
State Representative Bob McEachern indicated that in his
opinion, the potential on this line in the future has not
been considered by BNRR and that in the future when the
economy picks up, a community such as Monticello, Albertville,
St. Michael and Rogers will have additional industry expansion
which could make this line profitable for BNRR. In addition,
McEachern noted that the potential use of this railroad line
could be for a commuter type line between St. Cloud and Minn-
eapolis and felt that Burlington Northern Railroad should not
be allowed to abandon the line or tear up the tracks.
Local area shippers and users of the railroad line were present
to speak in opposition to the proposed abandonment. Comments
were heard from Mr. Don Anundsen of the Albertville Trust
Company who noted that his firm now gets approximately 25 cars
a year but expects to double its useage in the next few years.
Mr. Leon Eliason of NSP noted that the nuclear plant in
Monticello sometimes requires shipments by rail that are too
large to be shipped by other means. In addition, he noted that
as far as he could tell, no survey was done with NSP regarding
potential future uses of the line in regard to shipping and
felt this should have been done before abandonment proceeded.
Mr. Greg Dahlheimer of Dahlheimer Distributing, Monticello,
indicated that the railroad was one of the prime reasons they
moved to Monticello and that they presently in 1981 used 22
cars for shipping empty beer cases directly to the breweries
and expect almost 70 cars to be used in 1982. Also speaking
in opposition were Mr. Ted Barthel of Albertville and Mr. Gary
Buyer, the Albertville City Attorney. Mr. Buyer noted that
just recently the City of Albertville spent over $47,000 for
crossing improvements during 1979 and 1980 and BNRR never
indicated any intent to abandon the line at that time. Mr.
Dick Osowski, local fertilizer dealer, indicated that rail-
road shipping of his supplies is a necessity which might
entail moving his company to a different location if the
rail service is abandoned. Bruce Gagnelius, representing
the Monticello Business and Industrial Development Committee,
indicated that many businesses looking at Monticello for
future expansion have indicated a need for rail service.
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Mr. McLeod of the Burlington Northern Railroad indicated that
it was his opinion the railroad would continue the abandon-
ment process now that it started, but the possibility does
exist for continued service if the line does prove to be
profitable in the very near future.
After the informational meeting was closed, a motion was
made by White, seconded by Blonigen and unanimously carried
to go on record adopting a resolution opposing the proposed
abandonment of the railroad from Rogers to Monticello by
Burlington Northern Railroad Company. (See Resolution 1982
#41).
III. Unfinished Business.
A. Consideration of Feasibility Report Relating to the Improve-
ment of 7th Street.
John Badalich, City Engineer, reviewed with the Council the
the feasibility report regarding the improvement of 7th St.
between Hwy 25 and Cedar Street with curb, gutter and black
top. Mr. Badalich recommended that the road width be 40
feet wide, off set approximately 4 feet to the south of center
line which would result in a 6 foot shoulder on the north side
of the street and a 3 foot high retaining wall.
A retaining wall would be necessary due to the close proximity
to the cemetery property and it has been estimated that de-
pending on the type of retaining wall, the cost could range
from $7500.00 to over $19,000.00. The alternates for the
retaining wall consist of timber at a low price of $7500.00
up to a poured concrete wall at approximately $19,000.00.
The estimated cost of the project using a timber wall valued
at $7500.00 was estimated to be $43,490.00 plus 22% indirect
cost for a total of $53,060.00.
A petition by both abutting property owners, Perkin's Rest-
aurant and W.J. Murphy, owner of the proposed motel,recently
signed a petition for the improvements.
A motion was made by White, seconded by Maus and unanimously
carried to adopt a resolution declaring adequacy of petition
and ordering preparation of feasibility report. A motion was
also made by White, seconded by Maus and unanimously carried
to adopt a resolution ordering improvement of 7th St. between
Hwy 25 and Cedar Street to be known. as Project 82-1 and prep-
aration of plans and specifications.
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A motion was also made by White, seconded by Maus and unani-
mously carried to approve the plans and specifications as
presented and ordering advertisement for bids on the 82-1
Project with a retaining wall to be bid as alternates for
a Lannon stone (limestone wall) and timber construction.
The bids would be returnable on Thursday, July 8th, 1982
at 10:00 A.M. (See Resolutions 1982-#42, #43 and #44).
B. Consideration of Comments from Property Owners Affected by
the Recent Lift Station Failure.
On Thursday, May 27th, 1982, a power failure occurred at the
lift station in Bridge Park causing a back of wastewater
into several property owner's basements along Front Street.
The property owners affected by the back up were at the
Council meeting to express their concerns over the recent
failure and inquired as to what the City of Monticello could
do to prevent future occurrences and also whether the City's
insurance company would be liable for the claims.
John Simola, Public Works Director, gave a brief summary of
the pump failure and noted that our insurance company has
been notified but is not certain whether the claims will be
paid unless the City can be shown to be negligent. As noted
during previous sewer back ups over the years, it was rec-
ommended that all residents install a back water valve in
their sewer lines which would prevent most flooding of base-
ments should a lift station fail in the future. It was also
the recommendation of the public works director to purchase a
portable gas powered pump which could be used in cases of
emergency at all city lift stations. The cost estimate for
converting the present lift stations to accomodate a portable
pump and the purchase of a portable pump could be as high as
$5,000 to $10,000.
Property owners in attendance asked if the City would be
installing these valves in the individual homes due to the
possible large cost involved, but were informed that it is
the responsibility of the property owners to individually
install the back water valves. It was the concensus of the
Council to have the City help the people locate proper
spots for installing the valves and to help process insur-
ance claims. In addition, the public works director was
informed to pursue the purchase of a portable pump that
could be used at all city lift stations should a failure
of any kind occur at a lift station.
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IV. New Business.
A. Consideration and Review of 1981 Audit Report.
Mr. Rick Borden of Gruys, Johnson and Associates, reviewed
and presented to the Council a summary of the audit report
recently completed by their firm for the year 1981. Mr.
Borden noted that due to a change in the recommended pro-
cedures and report detail recommended by the State Auditor's
office, the City's report is approximately 20 pages longer
than previous years.
Mr. Borden noted that the City is in basically, a sound
financial position and felt that the present accounting
system is very adequate.
A motion was made by Fair, seconded by White and unanimous-
ly carried to accept the 1981 audit report as presented.
B. Consideration of Approval of Intoxicating Liquor, Non -In-
toxicating Malt Liquor, Club Liquor and Set-up Licenses.
A motion was made by Blonigen, seconded by White and unani-
mously carried to approve the issuance and renewal effect-
ive July 1, 1982 of all of the following classes of lic-
enses:
1. Intoxicating Liquor License, on -sale (Fee $3,000,00).
a. Monticello Liquors, Inc.
b. Silver Fox Motel.
c. Wayside Inn.
d. Joyner's Lanes.
2. Intoxicating Liquor, on -,sale, Sunday (Fee $100.00).
a. Monticello Liquors, Inc.
b. Silver Fox Motel.
c. Wayside Inn.
d. Joyner's Lanes.
3. Non -Intoxicating Malt Liquor, on -sale (Fee $220.00).
a. Friend's Cafe.
b. Monticello Rod & Gun Club.
C. Pizza Factory.
d. Monticello Country Club (New License).
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4. Non -Intoxicating Malt Liquor, off -sale (Fee $33.00) .
a. Monticello Liquors, Inc.
b. Ernie's Bait Shop.
c. Wayne's Red Owl.
d. Maus Foods.
e. River Terrace Trailer Park Store.
f. Tom Thumb Superette.
g. Wayside Inn.
h. Holiday Station.
5. Set -Up License (Fee $220.00).
a. Monticello Country Club.
b. Monticello Rod & Gun Club.
6. Club Liquor License (Fee $220.00).
a. American Legion Club.
b. V.F.W. Club.
C. Consideration of Granting a Temporary 3.2 Beer License to
the Monticello Lion's Club for the 4th of July Celebration.
The Lion's Club recently requested a renewal of their annual
4th of July one day 3.2 beer license to be used in Ellison
Park as part of the celebration. Mr. Mark Irmiter and Jim
Krueger, representing the Lion's Club, were present at the
meeting to answer any questions regarding the license.
Rev. Steve Hammer of the Christian & Missionary Alliance
Church was present at the meeting to express opposition to
the issuance of a beer license to the Lion's Club as he felt
that this type of family event should not have beer available.
Although Rev. Hammer's concerns were noted, it was the con -
census of the Council that a single organization such as
the Lion's Club should not be singled out to deny a license
but rather the entire ordinance regarding issuance of tem-
porary licenses to possible family orientated events be
considered in the future.
Therefore, a motion was made by Bloni,gen, seconded by White
and unanimously carried to approve the issuance of a temporary
3.2 beer license to the Monticello Lion's Club for the 4th of
July celebration.
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D. Consideration of Lifting Restrictive Covenant Related to
Parking for "Pizza Factory".
Previously, when the Pizza Factory was located in the new
building owned by Sam Peraro at the corner of Broadway
and Hwy 25, a restrictive covenant was placed on the build-
ing prohibiting their -operations during a normal business
day until 4:00 in the afternoon because of a limited amount
of parking space available. Mr. Ekegren of the Pizza
Factory requested that the covenant be lifted so that they
may open and operate during the lunch hour on a temporary
basis during the summer months. It was Mr. Ekegren's con-
tention that with the development of a commuter parking lot,
many parking spaces have been opened up in the downtown
parking lots, especially adjacent to the Security Federal
building and that his lunch business would not create any
significant congestion. In addition, it was his opinion that
many of their potential customers would be downtown business
people that would possibly walk to their restaurant and would
not require parking accommodations.
It was the concensus of the Council that this item be tabled
until the next regular council meeting to enable the down-
town retail parking committee to have an opportunity to
review and report back to the Council on their recommendations
regarding the request. It was noted that the building in
which the Pizza Factory is located will be assessed for the
downtown parking lots starting in 1983 and this information
will be provided to the downtown retailer parking committee.
It was also noted that the Security Federal Savings & Loan
will also be contacted regarding whether problems have arisen
in the past regarding parking on their property for the rest-
aurant and as to what opinion they have regarding the opening
for lunch business.
E. & F. Consideration of Resolutions Placing a Moratorium on Manu-
factured Housing and a Moratorium on Additional Planned Unit
Developments.
Recently, the Minnesota Legislature has pointed out that
manufactured housing can no longer be kept out of residential
dwelling zones for the simple reason that they are manufactured
houses. As a result of this recent legislation, the City of
Monticello is working with its consulting planner, Howard
Dahlgren & Associates in preparing new requirements for manu-
factured housing that will in effect, still place certain
requirements on their placement.
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It is the city staff's recommendation that a resolution be
adopted setting a moratorium on all manufactured housing
projects until such time as the ordinance is amended and a
new code is in effect. In addition, the consulting planner
is also reviewing the city's planned unit development ordi-
nance and is recommending that changes be made regarding
planned unit development regulations.
As a result, a motion was made by Blonigen, seconded by
White and unanimously carried to adopt a resolution de-
claring a moratorium on manufactured housing and also to
adopt a resolution declaring a moratorium on planned unit
developments until such time as the City can review and
adopt new regulations in regard to the above. (See Reso-
lutions 1982 #45 and #46).
G. Consideration of Change Orders #37, #38 and #39 with the
Paul A. Laurence Company on the Wastewater Treatment Plant
Construction Project.
A motion was made by Fair, seconded by Maus and unanimously
carried to adopt change orders #37, #38 and #39 with the
Paul A. Laurence Company on the Wastewater Treatment Plant
Construction Project for a total amount of an additional
$2,505.00 which provides for the installation of exterior
lighting at the doors of the control building, additional
wiring and receptacles, and the relocation of a hydrant
and changing a water service to the sludge vehicle garage.
H. Consideration of Employee Assistance Program and Overall
Personnel Policy Revisions.
The City Administrator, Tom Eidem, reviewed with the Council
the possibility of an overall review of the present city
personnel policy including changing the present employee
assistance program that has been available to all city
employees. In the past years, the City has had a working
relationship with the Minnesota Growth Exchange which pro-
vides a referral system to all employees who may have pro-
blems that might be affecting their work potential.
Mr. Eidem noted that he has had conversations with Mr. Dan
Roe of the Abbott Northwestern Hospital who would provide
a comprehensive personnel policy and an employee assistance
program for an initial fee of $1,000.00 annually. Mr. Eidem
noted that the employee assistance program available through
Abbott Northwestern provides more counseling services than
what was available through Minnesota Growth Exchange and
recommended that the Council consider adopting an agreement
with them.
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Council Minutes - 6/14/82
It was the Council concensus that this item be tabled until
a future Council meeting to enable more study to be obtained
on the adoption of a new policy and a new employee assistance
program.
I. Consideration of Ratification of Union Contract.
The City Council was informed by the City Administrator that
the union personnel have accepted the City's propsal for a
new union contract which expired April 1, 1982. The new
proposal as presented to the union offered a $.60 an hour
raise effective April 1, 1982 and a $.55 an hour raise effect-
ive April 1, 1983. In addition, the City will provide full
insurance coverage to all employees, 100% paid by the City
effective April 1, 1982 and agreed to increase the monthly
insurance benefit by $5.00 in 1983 plus 50% of any addition-
al increase over $5.00 effective April 1, 1983.
A motion was made by White, seconded by Maus and unanimously
carried to approve ratification of the new union contract
as presented for the years April 1, 1982 through April 1, 1984.
Meeting Adjourned.
Rick Wolf Steller
Assistant Administrator
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