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City Council Minutes 10-12-1982MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL October 12, 1982 - 7:30 P.M. Members Present: Arve A. Grimsmo, Phil White, Ken Maus. Members Absent: Fran Fair, Dan Blonigen. 2. Approval of the Minutes of September 27th, 1982. A motion was made by White, seconded by Maus and unanimously carried to approve the minutes of the regular meeting of September 27, 1982 meeting as presented. 4. Consideration of Certifying to the County Auditor the Delinquent Accounts Assessment Role. Minnesota Statutes allow for the City to collect various types of current services that are delinquent through special assess- ments. Those people whose accounts are delinquent have been notified of the public hearing and were given an opportunity to present input if they so desired. The following list com- prises the delinquent accounts which were unpaid as of the date of this agenda. Gary Larvinson $108.28 Richard Cole 104.41 Christopher Maas 73.45 Wayside Inn 323.09 Ron Schlief 119.07 Garry Lange 134.04 Burnette Christopherson 62.62 Daryl Elsenpeter 72.21 Robert Tanner 95.69 Michael Dahmen 87.79 James Tarbox (Tree Removal) 129.20 A motion was made by Maus, seconded by White and unanimously carried to adopt the assessment role as presented for the de- linquent sewer, water and tree removal charges for collection with 1983 taxes. 5. Public Hearing on Proposed Public Improvements for Meadow Oak Subdivision. The City Engineer, John Badalich of OSM, reviewed with the Council and representatives of Meadow Oak Subdivision how sewer and water could be installed to serve the Meadow Oak proposed plat. - 1 - Council Minutes - 10/12/82 The initial feasibility report prepared on August 9th, include the construction of a 24 inch water main from Oakwood Industrial Park across the open land in an easterly direction to the execu- tive home site area of the Meadow Oak Subdivision with the pro- posed sewer extension from Mississippi Drive and Riverview Drive to the entry of Meadow Oak Subdivision. Mr. Badalich explained that a slight change could be arranged by routing the sewer line along an easement at the easterly end of the Morris Hoglund property rather than installing a force main up County Road 75 and then along County Road 39 to Mississippi Drive. The initial construction cost was estimated in the original feasibility re- port at a approximately 1.4 million dollars. Mr. Dick Knutson, representing Mr. Jim Boyle, owner of the Meadow Oaks Subdivision, requested that any assessments against their property for sewer, water, street and storm sewer improve- ments to their proposed executive home sites be spread over 10 to 12 year assessments. In addition, Mr. Knutson requested that any water main assessments that would result from running the water line from Oakwood Industrial Park through the land Mr. Boyle owns to get to Meadow Oak be deferred for six years as they do not plan to immediately develop this property. Mr. Knutson noted that the reason for requesting the six year deferral was that they felt that there was enough industrial property available in the Oakwood Industrial Park to meet the City's current needs and if their property was assessed immediately, they would be forced to im- mediately start marketing their property in direct competition with the Oakwood Industrial Park. It was also noted that the developers of Meadow Oak plan to install sewer, water and street improvements within the manufactured home site property by themselves without City involvement. Mr. Jim Metcalf, representing Morris Hoglund, indicated that Morris Hoglund is still the fee owner of the property proposed as Meadow Oaks Subdivision and indicated that he is not current- ly in favor of any type of improvements that would result in assessments against the property since he is currently only selling the land on a contract for deed. Mr. Metcalf noted that if the property had large assessments and the developers would default on the contract for deed, Mr. Hoglund would be stuck with a large amount of assessments. Mr. Metcalf also noted that the only petition Mr. Hoglund had signed was to request a feasibility report for cost estimates and was not or has not signed a petition actually requesting the improvements at the present time. As a result, Mr. Metcalf noted that since Mr. Hoglund is the prime fee owner of the property at present, he is not in favor of any improvements until he is completely paid off. Mr. Marion Gill, representing Ron Off it of Becker, Minnesota, indicated that Mr. Offit is currently purchasing part of the property from Mr. Boyle on a contract for deed that lies south of I-94 and east of the present Oakwood Industrial Park. - 2 - Council Minutes - 10/12/82 Mr. Gill also indicated that they would not be in favor of any improvements to the property that would result in assessments as they presently farm the land and have no interest in develop- ing it. It was noted by the Council that they were under the assumption that Mr. Boyle owned all of the property involved in the im- provement request and were not aware that some of it had been resold to Mr. Offit on a contract for deed. A motion was made by Maus, seconded by White and unanimously carried to table and continue the public hearing until the next regular Council meeting of October 25, 1982, to enable Mr. Knut- son and Jim Boyle, along with all developers to work out details with Morris Hoglund regarding the easement needed and also to determine whether Morris Hoglund is in favor of the improvement or not along with Mr. Ron Off it, who apparently also owns some of the property involved. 6. Consideration of a Report Relating to the Failure of West Bridge Lift Station. This item was cancelled as the insurance company for the City is planning to settle disputes with the affected property owners. 7. Consideration of Construction Cost Quotes for the Expansion of the 4th Street Park Building. At the previous Council meeting, the building inspector was directed to secure quotations for an addition to the 4th Street warming house which would include restrooms and storage facilities for the Monticello Youth Hockey Association. Two quotes were received and their totals were as follows: $9,717.00 from J.W. Miller of Monticello. $11,200.00 from the Nail Bender Corporation of Anoka. Initially, the Monticello Youth Hockey Association approached the City requesting that the City consider adding a storage building to the warming house for storage of their equipment and sweeper/tractor. The Hockey Association indicated that they would be willing to reimburse the City annually to cover the cost of the improvement until it was paid off. Since the original discussion, the City of Monticello had indicated that along with the storage building, restroom facilities should also be built since none were available in the 4th Street park. As part of the low bid from J.W. Miller in the amount of $9,717.00, approximately 540 of this cost would belong to the storage building for the Hockey Association. This would amount to $5,247.00 which the Hockey Association would be willing to pay approximately $500 per year plus $500 down. - 3 - Council Minutes - 10/12/82 In regard to the low bid, it was the Council concensus to delete the plumbing portion of the low bid and have the City do this work separately. A motion was made by Maus, seconded by White and unanimously carried to award the construction of restroom and storage facilities at the 4th Street Park to J.W. Miller, deleting that portion of the specifications for plumbing and restroom fixtures contingent upon the execution of an agreement with the Monticello Youth Hockey Association whereby the association guarantees payment to the City the sum of $5,250.00 which would be payable in annual installments of not less than $500 and shall bear no interest with the first installment being due on or before November lst, 1983 and all other installments being due on or before November lst of each year. 8. Consideration of an Offer to Sell to the City Land Owned by the Industrial Development Corporation. At the previous Council meeting, a representative of the Monti- cello Development Corporation offered to sell property they owned in Block 51 to the City of Monticello. Originally, the development corporation, which is non-profit orientated, pur- chased the property for future parking lot expansion in the downtown area and is now forced to either sell the property to a private individual or to the City of Monticello if they were interested. The City Administrator, Tom Eidem, has discussed the purchase of the property by the City with Mr. George Phillips of the Wright County State Bank who indicated that the City could buy the land under an option agreement provided that all back interest is brought current as of November 9th, 1982 and then the mortgage on the property would be extended for six months at the current interest rate of 14%. The back interest amounts to approximately $6,310.00. It was noted by the staff that plans are proceeding with the development of a tax increment financing district which would include an area in the downtown section that this property is situated in. By using an option agreement to purchase the lots owned by the development corporation for six months, it would enable the City and the Housing and Redevelopment Authority time to implement a proposed tax increment financing plan and to complete the purchase by approximately May, 1983. It was also suggested that the Housing and Redevelopment Authority actually purchase the property rather than the City of Monti- cello as the property could then be incorporated into the tax increment financing district to recover the cost of the purchase when developed. - 4 - Council Minutes - 10/12/82 A motion was made by Maus, seconded by Grimsmo directing the City Administrator to prepare all legal documents necessary for the purchase of the property in Block 51 from the Monti- cello Development Corporation under an option agreement as proposed for the next Council meeting. Voting in favor were Maus and Grimsmo. Abstaining was Phil White as he was a member of the Development Corporation. 9. Consideration of a Proposal to Build an Emergency Pump Shelter in the West Bridge Park. As part of a back up measure, the City recently purchased an emergency gasoline pump that could be used in the West Bridge Park Lift Station should a failure occur in the two existing pumps. The initial purchase of the emergency pump was the result of a recent failure in the pumping station resulting in flooded basements along Front Street. Public Works Director, John Simola, noted that a test was recently completed to determine how much time would elapse before the emergency pump could be used if an actual failure did reoccur at the lift station. It was noted by Mr. Simola that if the pump was housed at the maintenance building and had to be brought to the lift station to be hooked up, sixty minutes or more could easily elapse before the pump was actually working. As a result, it was his recommendation that the City consider building a temporary shelter adjacent to the lift station to house the emergency pump so that only the suction hoses would have to be connected before the pump could be used. The estimated cost of the temporary building was $1,225.00 with an additional $350.00 necessary for hooking up the 6 inch suction line to the lift station. A motion was made by White, seconded by Maus and unanimously carried to authorize the expenditure of $1,575.00 for the purpose of constructing a temporary storage building for the emergency pump and suction line hook ups. 10. Consideration of Ordering new John Deere Tractor for 1983 Delivery. Mr. John Simola, Public Works Director, requested that the City Council consider ordering a new tractor for 1983 delivery to replace the John Deere 400 currently owned by the City. Funds for the replacement of the John Deere 400 were budgeted for in 1983. Mr. Simola presented four quotations received for the purchase of a 4 wheel drive diesel tractor with 60" mowers and 2 stage blowers. - 5 - Council Minutes - 10/12/82 Mr. Simola noted that the minimum value for the current John Deere should be in the neighborhood of $2,000 and by using these figures the following quotes were received. Lawn Care Engineering of Forest Lake - A Yanmar tractor, $8,995.00 less an assumed $2,000 value on the John Deere would equal $6,995.00 net cost. Sherburne County Equipment of Big Lake - An Allis Chalmers tractor, $9,995.00 less a trade in value of $2,500 would equal $7,495.00 net cost. Moon Motors of Monticello - A John Deere tractor, $9,673.94 less an assumed $2,000 value on the John Deere would equal $7,673.94 net cost. Longley Ford A Ford tractor, $10,661.00 less an assumed $2,000 value on the John Deere would equal $8,661.00 net cost. The only quotation that indicated a trade in was Sherburne County Equipment who would give the City $2,500 for the old John Deere 400 whereas, the other quotations would assume the City could sell the tractor for at least $2,000.00. It was also noted by the Public Works Director that although a Yanmar tractor from Lawn Care Engineering of Forest Lake would appear to be a lower net cost to the City, the dealer is located a long ways from Monticello, whereas, the Public Works Department has received favorable comments on the Allis Chalmers tractor from Sherburne County Equipment located in Big Lake. As a result, it was the recommendation of the Public Works Department that the City consider purchasing the Allis Chalmers tractor from Sherburne County Equipment at a net cost $7,495.00 which in- cluded the trade in of the old John Deere. A motion was made by White, seconded by Maus and unanimously carried to authorize the Public Works Director to order the Allis Chalmers 5020 tractor from Sherburne County Equipment with 60" mower and 60" 2 stage snow blower in the amount of $7,495.00 with the John Deere 400 as a trade in. 11. Consideration of a Proposed Ordinance Amendment to Increase Mayor and Council Members Compensation. Current City Ordinances regarding Mayor and Council compen- sation was adopted on February 13, 1978, setting the Council - members monthly salary at $100 per month with the Mayor re- ceiving $125 per month. - 6 - Council Minutes - 10/12/82 Current State Statutes require that any increase in Council compensation be done by ordinance amendment or resolution prior to any municipal election and any increase in salaries would take effect the following January. Since the last in- crease took effect February 1978, a motion was made by White, seconded by Maus and unanimously carried to increase the Councilmembers monthly salary to $125 per month with the Mayor's salary being $175 per month. (See ordinance amend- ment 1982 #124). 12. Consideration of a Proposal to Construct a Garage for Rental to the Monticello -Big Lake Hospital District. A few months ago, the City entered into an agreement with the Hospital District to rent a portion of the present Fire Hall for housing one of the hospital district's ambulances in Monticello. The original agreement was projected to terminate at the end of November and since that time, Hospital Adminis- trator, Barb Schwientek, and City Administrator, Tom Eidem, have been discussing several proposals for permanent housing of an ambulance in the City limits of Monticello. The Hospital District is prepared to enter into a long term lease agreement with the City if the City of Monticello is willing to construct an addition to the present Fire Hall to house the ambulance. The estimated cost of such construction would be approximately $15,000.00. Ms. Schwientek noted that the hospital has currently three ambulances with two being located in Big Lake and one in Monticello which they would like to try and keep here. Their current long range plans are that in approximately five years, an ambulance structure would probably be located near the hospital, but at the present time,. they would like to continue having one ambulance available in Monticello at the present Fire Hall location. A motion was made by White ,seconded by Maus and unanimously carried to have the City Staff develop further detailed plans and price quotations for constructing an ambulance garage at the Fire Hall and to review the plans with the Fire Department representatives to arrive at an agreement. In addition, the final details on a rental agreement could be worked out between the City and the Hospital District which will be reviewed at a future date by the Council. Meeting Adjourned. - 7 - Rick Wolf steller ,. Assistant Admi strator - 7 -