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City Council MInutes 11-08-1982MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL November 8, 1982 - 7:30 P.M. Members Present: Arve Grimsmo, Fran Fair, Ken Maus, Phil White. Members Absent: Dan Blonigen. 2. Approval of the Minutes for October 25, 1982. A motion was made by Fair, seconded by Maus to approve the minutes of the regular meeting held on October 25, 1982. Voting in favor was Fair, Maus, and Grimsmo with White ab- staining due to his absence at the last meeting. A motion was made by White, seconded by Maus and unanimously carried to approve the minutes of the special meeting held on November 4th, 1982 which certified the election results. 4. Continuation of Public Hearing on Proposed Public Improve- ments for Meadow Oak Subdivision. At the request of the developers, the public hearing was again continued until the next regular Council meeting of November 22, 1982. 5. Consideration of an Offer to Purchase Block 32. (The Oakwood Block) . In September, 1982, two individuals had expressed interest in purchasing portions of what is known as the Oakwood Block in downtown Monticello. Dr. Brion of the Northwest Community Clinic expressed interest in purchasing approximately one- half ( 2) acre of the Oakwood Block for a Medical Clinic and Security Federal Savings & Loan Association expressed interest in purchasing a portion of the block for a new branch office. In addition, Security Federal also requested that the City delay any action on any sale of the property to enable them to study the possibility of acquiring the entire Block 32 and developing the entire block. Mr. Warren Tiegen, President of Security Federal, was present at the Council meeting to present an offer of $150,000 for the purchase of the entire Block 32. Mr. Tiegen noted that they would be interested in doing a Planned Unit Development of the entire block with a mix of retail and office spaces along with the eventual relocation of their Savings & Loan facility. - 1 - Council Minutes - 11/8/82 Concerns were expressed by Council members that previously the City had obtained an appraisal of the property a few years ago which indicated that its value might be in the neighborhood of $350,000 and the concensus of the Council was that $150,000 cash for the property may not be sufficient to warrant the sale. It was Councilman White's position that the entire Oakwood Block should be worth in the neighborhood of $250,000. Mr. Tiegen of Security Federal noted that their organization would be willing to negotiate with the City further in regard to acquiring the entire block or if the City felt they would sell off only a portion of the block. Security Federal would also be interested in just enough for their own future ex- pansion needs. It was the Council concensus to have the City Administrator work with and negotiate with Security Federal Savings & Loan Association to establish a better price for the City and also review the possible option of Security Federal only purchasing a portion of the block for their needs. In addition, a motion was made by Ken Maus, seconded by Phil White to table the offer from Dr. Brion of the Northwest Clinic regarding the purchase of a portion of the block until such time as negotiations are completed with Security Federal. 6. Consideration of Taking a Purchase Option on Lots 13 and 14, Less the Southerlv 15 feet of Lot 15 in Block 51. Previously, the Monticello Development Corporation, owner of Lots 13, 14 and 15 in Block 51 indicated a desire to sell this property to the City of Monticello. The buildings on this property are in a deteriorated state and the area in question would be included in the proposed tax increment financing district that the City is currently establishing. An agreement has been worked out whereby the City could make a purchase option on the property for six months thereby establishing the right to purchase the property anytime during the first six months of the option. For these first six months, the City would be required to pay the interest due on the mort- gage on the property through November 9th, 1982 and the insur- ance premium which is presently past due,with these two amounts totalling $6,844.00. In addition, the option agreement would also provide for an automatic extension for an additional six months whereby the City would be required to pay interest' that was due from November 9th, 1982 through May 9th, 1983 which - 2 - Council Minutes - 11/8/82 would be approximately $2,430.00. Under this option agreement, the City of Monticello could acquire the land any time within the first six months or within the second six months. If the tax increment financing plan is established and a de- veloper was interested in this parcel of land for some de- velopment, the HRA Committee would more than likely buy the property from the City of Monticello and offer it to a de- veloper. A motion was made by Maus, seconded by Fair to enter into an agreement for the purchase of an option by the City of Monti- cello from the Monticello Development Corporation for Lots 13, 14 and 15 of Block 51 with the expenditure of $6,310.00 for past due interest and $544 for insurance premiums. Voting in favor was Maus, Fair, Grimsmo and abstaining was Phil White due to a possible conflict of interest. It was noted that after the purchase option agreement is com- pleted, it was the concensus of the Council that notice to vacate the premises should be given to the party presently renting one of the houses on the property indicating that vacation of the premises must be completed by January 1, 1983. 7. Consideration of a Policy Proposed from the Downtown Parking rnmm i i -t PP _ A Downtown Parking Committee is in the process of reviewing the present policy in regard to snow removal, etc. The committee has not been able to meet to discuss the issue and as a result this item was tabled until the committee is able to review and make recommendations to the Council. 8. Consideration of Change Orders #62, #63, #64 and #65 on the Wastewater Treatment Plant Project. The following Change Orders were recommended by the Consulting Engineer and City Staff for approval on the Wastewater Treat- ment Plant Project. #62 - An additional amount of $3,409.00 for minor electrical changes at various locations. #63 - An additional $711.00 for electrical shut offs in the chlorine room for the chlorinators and leak detector. #64 - An additional cost of $3,749.00 for sidewalks to the filters and main digester building. #64 - A deduct of $98.00 from quantity estimates on the in- terceptor sewer construction. - 3 - Council Minutes - 11/8/82 The net total addition of these four change orders amounts to $7,771.00. A motion was made by Fair, seconded by White and unanimously carried to approve change orders #62 through #65 with the Paul A. Laurence Company on the Wastewater Treatment Plant Improvement Project for an additional amount of $7,771.00. 9. Consideration of Appointments to the Monticello Housing and Redevelopment Authority. In an effort to revitalize the Monticello HRA Committee, four out of the five present members have indicated they will be resigning their positions and have asked that the City Council appoint replacements. The persons who need to be replaced and their expiration dates are as follows: Leo Nelson Chairman 12-31-82 Ken Tvedt 12-31-83 George DeMars 12-31-84 Robert Doty 12-31-86 Mayor Grimsmo noted that four individuals have expressed in- terest in serving on the Committee as follows: Don Cochran Bud Schrupp Jack Reeves Phil White It was noted that Councilman White agreed to assume the final interim position of chairman held by Leo Nelson which expires December 31, 1982. A motion was made Fair, seconded by Maus and unanimously carried to approve the appointments of Don Cochran, Bud Schrupp, Jack Reeves and Phil White to the recently vacated HRA Committee positions with a notation that the committee members are to work out among themselves what length of term they wish to serve. 10. Consideration of Granting a Rezoning Request and Conditional Use Request by Mrs. Les Carlson and Mr. Fred Gille. Upon the death of Les Carlson a few months ago, Mr. Carlson's welding shop was discontinued and subsequently the equipment was sold. At the time of Mr. Carlson's death, his welding business was located within an R-1 zone where it was a non- conforming use which was permitted under the grandfather clause. However, since Mr. Carlson's death, the welding business has been discontinued and Mrs. Carlson now would == Council Minutes - 11/8/82 like to utilize the building at this time for rental income by renting the facility to the abutting property owner Mr. Fred Gille who would like to expand his auto sales business. In order to do so, it is necessary that the property be re- zoned from R-1 residential, to B-3 commercial business to allow this. At the public hearing held by the Planning Commission, several objections were heard from neighbors in the area who felt the property should remain residential according to the compre- hensive city plan and should not be rezoned to commercial uses. As a result of the testimony provided at the Planning Commission meeting, the Planning Commission denied the rezoning request and also the conditional use permit request made by Mr. Gille to ex- pand his auto sales unto this property. After reviewing the items presented at the Planning Commission public hearing, a motion was made by Fair, seconded by White, and unanimously carried to deny the rezoning request from R-1 to B-3 for the Carlson property. In addition,a motion was made by White, seconded by Fair and unanimously carried to deny a conditional use permit request by Fred Gille for use of this property for expansion of his auto sales business. 11. Consideration of Setting a Special Meeting for the Express Purpose of Establishing 1983 Salaries for Non -Union Personnel. By Council concensus, a special meeting was set for Tuesday, November 30, 1982 at 6:30 P.M. for the purpose of reviewing and establishing the 1983 salaries for non-union personnel. The City Administrator was directed to negotiate with each employee prior to the November 30, 1982 meeting and if at all possible arrive at a salary range as acceptable to both the employee and the administrator. This information will then be presented to the Council at the special meeting. In addition, it was noted that if the City Administrator and the employer during their negotiations agree on a percentage increase or a salary range for 1983, it will be the option of the employee if he wants to attend the special meeting himself to review the proposed salary with the City Council. 12. _Consideration of the Acceptance of the 1983 Law Enforcement Contract with Wright County Sheriff's Department. Recently, the Wright County Board established an hourly rate for police services which are contracted to county munici- palities for 1983. The hourly rate proposed results in a.. 15% increase to $15.25 per hour. - 5 - Council Minutes - 11/8/82 Currently, the City of Monticello contracts for 7,488 hours of annual police protection which under the new rate of $15.25 per hour would amount to an annual cost of $114,192.00. Under the recently adopted 1983 City Budget, approximately $108,000 was budgeted for police protection which would result in the actual cost exceeding the budget by alittle over $6,000.00. Discussion occurred by the Council on whether the City of Monticello should consider going to complete 24 hour a day coverage which would under the current rate result in an annual charge of approximately $133,600.00. If so, this would amount to over $25,000 more than was budgeted for in 1983. It was noted that although the rate charged by the County has been established, the hours of coverage is an item that can be set by the City Council and as a result, it was the concensus of the Council to table until the next regular Council meeting any action on the contract to provide for more input on whether increased hourly coverage to 24 hours per day should be con- sidered by the City. Meeting Adjourned. /"-), 7(�'% Rick Wolf Steller Assistant Administrator - 6 -