City Council Minutes 09-27-1982MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
September 27, 1982 - 7:30 P.M.
Members Present: Arve Grimsmo, Phil White, Fran Fair, Ken Maus.
Members Absent: Dan Blonigen.
2. Approval of the Minutes of September 13, 1982.
A motion was made by White, seconded by Fair and unanimously
carried to approve the minutes of the Council meeting held on
September 13, 1982.
4. Public Hearing - A Hearing on the Proposed Use of Revenue Sharing
Funds and the 1983 Municipal Budget.
Federal regulations require that the City hold two public hear-
ings concerning the use of Federal Revenue Sharing Funds expected
to be received in 1983. At the first hearing held August 12,
1982, no comments were heard from the public in regard to the
proposed expenditures.
As part of the proposed 1983 budget, $84,800 is projected to
be received in Federal Revenue Sharing Funds during the fiscal
year of 1983. The proposed uses of this money areas follows:
Community Education $10,000.00
Water Fund - Capital Outlay 10,000.00
Seal Coating Project 27,800.00
Water Fund Supplies and
Fire Equipment Expenditures 20, 000. 00
Skid Loader for Waste-
water Treatment Plant 9,000.00
Van for Water Department 8,000.00
No additional comments were presented at the public hearing re-
garding the proposed uses of Federal Revenue Sharing Funds.
5. Resolution Adopting the 1983 Municipal Budget and Setting the
Tax Levy.
The preliminary 1983 Budget was presented at the September 13th
Council meeting and a special meeting was held on September 17th
for the purpose of reviewing the proposed budget resulting in a
tax levy of $1,227,074.00. As part of the tax levy, the pre-
liminary budget proposed that the sewer fund have a general tax
levy of $84,440.00 to support the anticipated cost of running
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the new Wastewater Treatment Plant. This $84,000 subsidy would
be needed assuming that the sewer user charges would only generate
revenue of $134,900.00. The expected revenue was based on a
model prepared by the consulting engineers which would have the
residential, commercial and industrial user's rates established
in a fair and equitable manner. The City of Monticello recently
adopted an ordinance which requires that sewer rates established
be fair and equitable to all users,and large industrial users
would be required to pay a sewer charge based on their flow and
effluent strength. Currently, the only industrial user that
would fall into this category would be Wrightco Products, which
based on the consulting engineer's model would have a sewer charge
annually in excess of $19,000.00 per year.
Mr. Gary Wieber, controller for Wrightco Products and Mr. Jim
Ridgeway, President, were present to discuss with the Council
their proposed sewer rates their firm would incur in 1983 as
proposed. Mr. Wieber noted that during 1981, Wrightco had
sewer charges annually of approximately $6,380.00 and it is
projected that their sewer bill for 1982 will be $10,800.00.
Mr. Wieber felt that an increase in the sewer rates to approxi-
mately $17 or $19,000 a year should be possibly phased in over
a three year period of time rather than all in one year. In
addition, Mr. Wieber noted that Wrightco Products would be will-
ing to eliminate their pretreatment program at their location
which would eliminate future odor problems which have occurred
in the past in the downtown area. Mr. Wieber noted that at the
present volume of approximately 12 million gallons annually, he
suggested that the 1983 sewer charge for Wrightco be approximate-
ly $12,000 and then increase to $14,300 the second year and
finally $1.7 , 000 the third year.
Mr. Jerry Corrick, Project Engineer on the Wastewater Treatment
Plant with the consulting engineering firm of OSM, explained to
the Council that under the newly adopted ordinance regarding user
charges, the City of Monticello can not give any quantity dis-
counts to industrial users such as Wrightco and that the user
charge can not be based strictly on flow but has to also charge
industrial users for the strength of their sewage. Mr. Corrick
noted that to arrive at the $17,000 annual figure for Wrightco
Products, the rates would have to be strictly based on flow with-
out regard to strength of the effluent and would be considered
the same as a residential user. Mr. Corrick noted that if the
City were to establish approximately $17,000 as the charge to
Wrightco Products, the City should prepare the billing for the
industrial user based on the ordinance which in this case for
Wrightco Products without pretreatment would result in approxi-
mately a $30,000.00 annual billing. A credit on this billing
could be initiated by the City to Wrightco Products based on an
agreement between the two parties whereby Wrightco Products
would agree to eliminate their pretreatment and the resulting
odor problems and also agree to discharge their sewage through
holding tanks allowing for an even flow throughout the day
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rather than large quantities all at once. The credit amount pro-
posed was $13,000 from the anticipated $30,000 charge and would leave
Wrightco Products with an annual charge of approximately $17,000,
the end result being that their billing would be similar to a
residential or commercial charge for the amount of discharge.
By using the projected revenues of $17,000 from Wrightco Products,
along with the model established by the consulting engineer for
all other residential and commercial users, anticipated revenues
would be approximately $140,000.00 requiring a $79,340.00 subsidy
to operate the sewer fund. It was noted that although a firm
sewer rate has not yet been established for 1983 for residential
or industrial users, the budget for 1983 as far as the sewer fund
was concerned could be established with the assumption that
$79,340.00 would be the tax levy for the budget purposes.
A motion was made by White, seconded by Maus and unanimously
carried to adopt a resolution setting the 1983 budget and tax
levy at $1,227,064.00 which would include $79,340.00 as a tax
levy in the sewer fund. (See Resolution 1982 #56).
6. Consideration of Calling for a Public Hearing on Proposed Im-
provements to Meadow Oaks Subdivision.
As part of the subdivision plat being proposed by Mr. Jim Boyle
and Mr. Dick Knutson, known as Meadow Oak, the developers have
requested that a public hearing be held on the proposed sewer
and water improvements to their subdivision.
The preliminary feasibility report has been prepared by the City's
consulting engineer indicating that the initial first phase con-
struction of trunk, sewer and water lines are estimated to cost
approximately $1,393,500.00. Since the original feasibility
report, discussions have been occurring between the developers
and the consulting engineers regarding design changes and the
city engineer will be preparing an additional report regarding
the estimated cost for the public hearing.
A motion was made by Maus, seconded by White and unanimously
carried to adopt a resolution receiving the feasibility report
and calling for a public hearing on the proposed improvements
to Meadow Oaks Subdivision for October 12th, 1982 at 7:30 P.M.
(See Resolution 1982 #55).
7. Consideration of a Proposal to Add Restrooms and a Storage
Building at 4th Street Park.
Previously, representatives of the Monticello Youth Hockey
Association requested that the Council consider adding a storage
facility and public restrooms to the warming house located in
the 4th Street Park. The Hockey Association originally
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requested permission to build a storage building at the 4th Street
Park for the purpose of storing their equipment which included a
garden tractor and sweeper attachment that is used for cleaning
their ckey rink. Along with that request, the Council appointed
Loren Klein and Council member, Ken Maus, to a committee to work
with the Hockey Association to arrive at a plan that would allow
for the storage building to be attached to the warming house and
also to include restroom facilities for the 4th Street Park.
It was noted by Hockey Association members that their program
has increased substantially resulting in hundreds of kids prac-
ticing ad playing games at the hockey rink with an additional
large number of spectators in attendance with no bathroom
facilities available.
If the City would initially finance the construction of the
storage facility and bathroom facilities, the Hockey Association
has agreed to contribute to the City $500 up front money towards
the cost of the building and then would make annual payments of
approximately $300 to $500 per year towards the cost of the
storage building facility until it was paid for. Under this
proposal, the City would be responsible for the cost of the
restroom facilities as it is a public park and would not only
be used by the Hockey Association.
Mr. Klein noted that currently only one estimate has been re-
ceived for the construction of the addition and he estimated
that the project would cost less than $9,000.00 excluding
sewer and water hook up charges. Of this estimated $9,000.00
cost, approximately 30o would be allocated towards the storage
facility which the Hockey Association would reimburse the
City over a number of years.
It was the Council concensus to authorize Mr. Klein to obtain
at least two bids or quotes from contractors for the construction
of the addition to the warming house along with quotes for the
installation of sewer and water services and present them to the
Council at their next scheduled Council meeting for approval.
8. Consideration of Change Order #54 on the Wastewater Treatment
Plant Construction Contract.
A change order has been recommended by the public works director
and consulting engineer that would eliminate a 150 foot long
wood screened fence that was originally planned to be located
between the Wastewater Treatment Plant and the former Lindberg
house that the City has now acquired. Since the City now owns
the Lindberg property, it was felt that the wall was not
necessary and plantings could be developed over a period of
time that would eliminate the need for the wood screened wall.
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The total savings would amount to $5,800.00 as a deduct from the
contract.
A motion was made by White, seconded by Fair and unanimously
carried to approve Change Order #54 with the Paul A. Laurence
Company on the Wastewater Treatment Plant construction contract
in the amount of $5,800.00 as a deduct.
9. Consideration of an Offer to Purchase a Part of the Oakwood Block.
Recently, Mayor Grimsmo received a letter from Dr. Brion who ex-
pressed an interest in purchasing a half acre of the Oakwood
Block for a medical clinic for a price of $40,000.00. Prior to
this offer, the prevailing attitude of the Council was that they
would encourage development of the Oakwood Block as a single unit
rather than selling off small parcels for individual developers.
Along with Dr. Brion's offer, Security Federal Savings & Loan
has expressed an interest in the site and the possible purchase
of an acre and a half (112) for a new,:building for their institu-
tion. The acre and a half that Security Federal expressed interest
in along with the half acre that Dr. Brion was interested in would
amount to 80% of the block. Security Federal, aware of the Council's
encouragement of developing the entire Oakwood Block, has indicated
that they are researching the possibility of offering to buy the
entire block and developing it and then possibly leasing or selling
space that they would not need for their own Savings & Loan institu-
tion. Security Federal has indicated in a letter that they are
discussing the development of the entire block and requested that
the sale of a portion of the block be delayed by the Council until
their entire proposal can be presented.
It was the Council concensus to table any action on the offer to
purchase part of the block by Dr. Brion at the present time to
enable additional studies to be completed by other interested
developers. It was noted that possibly this item could be consid-
ered at the October 25th, 1982 Council meeting if proposals
are presented by this date.
10. Consideration of a Request to Renew a Conditional Use Permit for
Construction 5.
Mr. Tom Broc ker of Construction 5 requested that the City Council
consider granting an extension of a conditional use previously
granted to them two years ago to develop an apartment building
on Blocks 42 and 43 of Lower Monticello located along Lauring Lane.
Because the original conditional use had not been utilized within
one year, the original permit expired and renewal was necessary
before any further construction could begin.
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It is Construction 5's intent at the present time to go ahead with
the construction of a 12 unit apartment building as proposed which
would not need a conditional use permit and then as soon as financ-
ing is available, they would continue with two more 24 unit build-
ings which due require the renewal of the conditional use permit.
The Planning Commission recommended that the request be denied
for the second phase of the project until after the first phase or
12 unit apartment building is constructed to see what type of track
record this developer would display.
The Council concensus was that as long as Construction 5 was willing
to agree to the previous conditions attached to the conditional use
permit that a permit should be extended. As a result, a motion was
made by White, seconded by Fair and unanimously carried to approve
the renewal of the conditional use permit to Construction 5 for the
construction of two 24 unit apartment buildings contingent upon the
developers providing a 30 foot easement along the northerly portion
of their property for a possible future interceptor sewer line and
also contingent upon the dedication of a portion of their property
for an extension of a Collector Road to be established.
11. Consideration of a Request to Rezone from B-3 to R-3 the Marvin
Kramer and other Adjacent Property.
During the public hearing process for the proposed development of
the Chateau Plaza, a housing project for the elderly, a determination
was made as to the approximate location of the Collector Road which
would connect the Country Club Road and Country Club Manor with 7th
Street at the approximate intersections of Walnut Street and 7th
Street.
At that time, the property upon which the Chateau Plaza was to be
built was zoned B-3 (Commercial) and would be the only parcel
of property lying immediately north of the proposed Collector Road
which would be zoned B-3 with all their surrounding property being
zoned R-3.
A consideration was given at that time to rezoning that parcel of
land where Chateau Plaza would be located to R-3. At this time,
Jim and Pam Lindberg are proposing to develop a day care center on
the Marvin Kramer property which is also proposed to lie north of
the proposed Collector Road. The current zoning of the property
in question owned by Mr. Kramer is currently zoned B-3 and it was
the Planning Commission's recommendation that the Council rezone
that portion of the property lying north of the proposed Collector
Road from B-3 to R-3 to coincide with the existing zoning of the
surrounding property. As a result of the zoning changes, all
property located north of the proposed Collector Road would be
zoned R-3 while the remaining property located south of the Collector
Road would remain B-3 or commercial zoning.
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This action for rezoning was prompted by a request for a conditional
use permit within the R-3 zone by Jim and Pam Lindberg regarding the
Marvin Kramer property. The Planning Commission voted to recommend
that the property lying north of the Collection Road be rezoned from
B-3 to R-3. A motion was made by Fair, seconded by White and unani-
mously carried to approve the request for rezoning of the Marvin
Kramer property lying north of the proposed Collector Road from B-3,
commercial, to R-3, multiple family residential, to match surrounding
property zoning. (See Ordinance Amendment 1982#123 ).
12. Consideration of a Request for a Conditional Use Permit to Establish
a Day Care Group Nursery in an R-3 zone by Jim and Pam Lindberg.
As discussed in the previous item, Jim and Pam Lindberg have pro-
posed to develop a day care group nursery on the Marvin Kramer
property, which would require a conditional use permit.
The Lindbergs have indicated that they would be willing to deed to
the City the southerly 80 foot portion of the Kramer property for
the placement of a Collector Road which would connect Country Club
Manor to Hwy 25 as proposed. This dedication of property would be
contingent upon the City developing a street in the future.
A motion was made by White, seconded by Fair and unanimously carried
to approve the conditional use permit request by Jim and Pam Lind-
berg for the day care group nursery proposed for the Marvin Kramer
property contingent upon the Lindbergs and Marvin Kramer either
deeding or providing the City with a permanent easement for road-
way and utility purposes across the southerly 80 feet of their
property. The easement or deeded 80 foot portion would revert
back to the property owners if it is not used by the City for
roadway purposes.
13. Consideration of an Exchange of Property to Facilitate the Dundas
Road Extension.
Previously, the City Council directed the zoning administrator to
research the possibility of obtaining a small parcel of land located south
of banner's Truck Garage between old Hwy 25 and new Hwy 25 for
the purpose of extending Dundas Road to Hwy 25. Research of the
records in the courthouse have determined that Mel Wolters is the
property owner of that small portion needed for the extension and
an agreement in principle has been arrived at between the City of
Monticello and Mr. Wolters whereby Mr. Wolters would trade to the
City the property which the City needs to complete the Dundas Road
to Hwy 25 extension in exchange for the City abandoning the abut-
ting right-of-way of old Hwy 25 to him.
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In effect, the old Cedar Street would be vacated from the point at
which Dundas Road would cross south to where Cedar Street joins
with Hwy 25. The property owners abutting the old Cedar Street
to be vacated would be Mr. Wolters and the easterly half of the
street would be vacated to Mr. Ken Krienke.
A motion was made by White, seconded by Maus and unanimously
carried to authorize the City staff to prepare documents to pro-
ceed with the exchange of property which would include vacating
Cedar Street south of Dundas Road in exchange for acquiring the
property from Mel Wolters that would allow for Dundas Road to be
extended to Hwy 25. No vacation would actually take place on
Cedar Street until such time as the City was able to develop
and complete the extension of Dundas Road.
14. Discussion by the Members of the Monticello Development Corpora-
tion Relative to Sale of Property.
Council Member, Phil White, along with Monticello Development
Corporation members, Jim Figenshau and Dr. Kasper, informed the
Council that the corporation has been forced into a position of
selling the property they own in Block 51. The property consists
of Lots 13, 14 and 15 in Block 51 which is located directly north
of the old Monticello Ford Garage in downtown Monticello.
The Monticello Development Corporation is a non-profit organization
that was originally established for the purpose of acquiring prop-
erty that could be developed into future parking lots for the
downtown businesses. During their existence, many of the lots now
currently used for public parking have been acquired by the develop-
ment corporation and then sold to the City as needed. These three
lots currently being offered for sale are the remaining property
owned by the development corporation and it appears at the present
time that parking on this property is not in demand at the present
time.
The representatives noted that if the City of Monticello is not
interested in acquiring this property, it would be put on the open
market for any potential buyer. The asking price is $44,000.00
which is the amount needed by the corporation to clear all of its
debt on the property.
A motion was made by Maus, seconded by Fair to authorize the City
Administrator to negotiate with the development corporation and
the Wright County State Bank which has the current mortgage on the
property on a possible purchase of the property and report back to
the Council at its next regular meeting with all options that are
available. Voting in favor were Maus, Fair, Grimsmo. Abstaining
was Phil White.
Council Minutes - 9/27/82
15. Discussion on Upcoming Public Hearing by Wright County to Consider
Ordinance Amendments to Home Occupation Limitations.
Mr. Franklin Denn, Monticello Township Chairman and member of the
Wright County Planning Commission, informed the Council of the
County's upcoming public hearing that will be addressing possible
amendments to the County ordinances regarding home occupations in
agricultural zoning districts.
Mr. Denn noted that the County ordinances currently allow home
occupations with numerous conditions attached that basically
allow one outside employee in a home occupation business. Mr.
Denn noted that the County has been petitioned and will be holding
a public hearing on September 30th, to consider amending the or-
dinance to allow up to 5 employees outside of a family owned busi-
ness.
Mr. Denn explained that at the public hearing, the City of Monti-
cello along with all other townships and municipalities in Wright
County have the right to make recommendations on the above pro-
posed amendment and requested that the City Council representa-
tives either attend the public hearing to express their views or
write a letter to the Planning & Zoning Office. Mr. Denn noted
that as far as Monticello Township is concerned, they are recom-
mending that the County take no action on amending the ordinance
at the present time but table any action for further study on the
possible ramifications of allowing 5 outside employees in a home
occupation business. It was noted that Council members or the
Mayor will try to be in attendance at the public hearing scheduled
Thursday, September 30th.
16. Approval of Bills for the Month of September.
A motion was made by White, seconded by Fair and unanimously
carried to approve the bills for the month of September as pre-
sented. See Exhibit 9-27-82 #1.
Meeting Adjourned.
Rick Wolf stelle
Assistant Administrator