City Council Minutes 03-08-1993MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, March S, 1993 - 7 p.m.
Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Patty
Olsen
Members Absent: None
2. Consideration of approval of minutes of the regular meeting held February 221
1993.
After discussion, a motion was made by Shirley Anderson and seconded by
Patty Olsen to approve the meeting minutes as submitted. Motion carried
unanimously.
3. Citizens comments/petitions, requests, and complaints.
A. Judy Leming, representing Vaughn Veit, requested that the City grant
permission to allow burning of tree limbs and dead trees proposed for
removal from the property directly east of the 6th Street Annex.
Leming noted that due to the density of the foliage in the area, it
provides cover for vandals. She stated that a number of fires have been
started in the area, and she noted her concern regarding safety of
tenants and customers using back door entrances to the 6th Street
Annex. Leming submitted signatures from residents and property
owners residing near the proposed burn site. Leming indicated that she
is working on obtaining permission from Cedar Crest Apartments.
Ken Maus asked if actual trees would be removed or just underbrush.
Leming responded by saying that the work will be limited to thinning
of the trees and removal of dead trees.
Rick Wolfsteller reminded Council that the city ordinance does not allow
burning within 650 feet of residential property. There is no section
within the ordinance that provides the ability of the City Council to
waive this requirement. He noted that the City could be liable if
something went wrong. Leming responded by saying that Vaughn Veit
will sign an agreement saying he will take full responsibility for any
property damage that might result from smoke or fire.
After discussion, a motion was made by Shirley Anderson and seconded
by Clint Herbst to grant permission to conduct a limited burn of
underbrush and dead trees as proposed by Judy Leming contingent on
the following:
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1. Preparation of a signed statement from Vaughn Veit
indicating that he will take full responsibility for paying
any damages associated with the burn.
2. Approval by the fire Chief of the manner and timing of the
burn.
3. No site grading allowed due to concerns regarding potential
erosion.
Motion carried unanimously.
B. Terry Sievers, representing Hillside Apartments, requested that the City
Council consider installing an additional street light at mid -block on
Cedar Street. She noted that snowmobiles often use this boulevard; and
due to poor visibility, she is concerned that a child may be struck.
City staff was authorized to review the situation and report back to
Council accordingly.
4. Consideration of approval of the preliminary plat of the Oak Ridge residential
subdivision.
Assistant Administrator O'Neill reviewed the plat design, which called for
development of 80 lots in two phases, the first phase consisting of 62 lots and
the second phase 18 lots. The original planned unit development for the area
called for development of approximately 160 lots in the same area.
O'Neill went on to review the preliminary plat and focused specifically on
discussion of the options for ownership of a 12 -acre outlot. The outlot consists
of a combination of wetland, storm water detention area, and usable park
space. O'Neill stated that both the Parks Commission and Planning
Commission agreed that the outlot is a natural amenity that should be
preserved for public use as a low -maintenance nature area. Under this
alternative, public facilities would consist of a simple woodchip trail system
with no mowing of native grasses in the area. He went on to state that the
Parks Commission felt strongly that the area should remain accessible for the
public to enjoy given the strong support for hiking and biking facilities noted
in the community survey.
O'Neill went on to outline the other option for ownership of Outlot A, which
would require that the property stay in the hands of adjoining property
owners. Under this alternative, the property owners are responsible for
maintenance of the outlot. If storage of public nuisance items occurs on the
outlot, the City can remove the material and assess the cost back to the
property owners.
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Clint Herbst believed that the area should remain accessible to the public and
maintained as a low -maintenance nature area.
Brad Fyle was concerned that the local residents that ultimately live adjacent
to the outlot will request a higher level of maintenance of the outlot. The City
may end up having to mow the property. O'Neill responded by saying that the
development agreement will require that a document be recorded against each
lot that identifies the outlot as a low -maintenance nature area, thereby
providing this information to area residents prior to purchase and development
of individual lots adjacent to the outlot.
Fyle was also concerned that the development could potentially impact
ditch 33, which could be a problem for downstream property owners. City
Engineer, Bret Weiss, indicated that the developer has been directed to develop
a storm water plan that will maintain the existing level of run-off from the site
into ditch 33. Specific plans and associated storm water run-off calculations
have not been prepared by the developer at this time; however, they must be
prepared and reviewed by the City and the County Engineer prior to final plat
approval.
After discussion, a motion was made by Patty Olsen and seconded by Clint
Herbst to approve the preliminary plat of the Oak Ridge subdivision as
submitted and grant preliminary approval of the wetland mitigation plan, with
final plat approval contingent on the following:
1. Plat should be modified by changing the name Meadow Oak Drive
to Oak Ridge Drive.
2. Approval of development plan and utility construction design by
City Engineer.
3. Adoption of development agreement and developer providing
associated financial guarantees.
4. Approval of wetland mitigation plan by Army Corps of Engineers.
5. Final approval of wetland mitigation plan by the City of
Monticello.
6. Approval of plat and associated construction plans by the County
Engineer.
7. City Council approval of request to rezone property from planned
unit development to R-1.
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8. Preparation of a document recorded against each lot along
Outlot A stating that Outlot A will be maintained in its natural
state and will not be mowed by the City.
Voting in favor of the motion: Patty Olsen, Clint Herbst, Shirley Anderson,
Ken Maus. Opposed: Brad Fyle. Fyle indicated that he supports development
of the plat as proposed except for the inclusion of Outlot A being owned and
maintained by the City.
5. Consideration of a resolution accepting plans and specifications and
authorizing advertisement for bids, phase III of Cardinal Hills, and call for a
public hearing on improvement proiect.
After discussion, a motion was made by Brad Fyle and seconded by Shirley
Anderson to adopt a resolution approving plans and specifications and ordering
advertisement for bids for Project 93-02C, Cardinal Hills, phase III. Motion
carried unanimously. SEE RESOLUTION 93-7.
6. Consideration of financing alternatives for phase III improvement proiect,
Cardinal Hills.
City Administrator, Rick Wolfsteller, noted that normally when the City is
involved in constructing sewer, water, and street improvements such as those
proposed for Cardinal Hills, the City will issue general obligation improvement
bonds to finance the up -front costs of the project. Typically, the bonds will
range in length from 7 to 15 years depending on the type of assessment roll we
are considering. The developers of Cardinal Hills have requested that the
Council consider funding phase III of their subdivision plat internally rather
than selling a bond because of the developers' past history in being able to
repay assessments within a year of the projects being completed.
The advantage for the City and the developers in having the City finance the
improvement project internally is that there is a savings of $10,000 to $15,000
in bond issuance cost that is passed on to the project cost. Assuming the City
has the money to finance the project internally ($550,000), the City benefits by
charging an interest rate that would be comparable to a bond sale rate that
would also likely be higher than what the City could invest the same amount
for. The disadvantage for the City would be a potential cash-flow problem in
not having funds readily available within the 2 -year time frame to pay for
other potential improvement projects that could potentially arise.
Wolfsteller noted that in reviewing phase I and phase II of Cardinal Hills
development, Value Plus has been able to repay projected assessments in a
very rapid manner, usually within a year of the phase being constructed.
Wolfsteller went on to state that the City does have the ability to finance the
$550,000 cost internally. If the trend in housing construction continues as it
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has in the first two phases, the City would probably be repaid in 1 to 1 1/2
years; however, past history is no guarantee that demand will be there for
future phases, and there is some risk in financing it internally. We have not
usually financed a project of this magnitude internally; and if the economy did
slow down, we may have to wait a lot longer to recapture our investment.
However, even if this did happen, it would not materially affect our cash-flow.
Brad Fyle was concerned that funding the project internally puts the City out
on a limb, and there is no guarantee that housing development in the area will
continue at the pace it has shown in the past two years. He was also
concerned that funding the project internally would reduce useable reserves
and reduce our ability to fund city-wide projects without issuing bonds. Clint
Herbst echoed Fyle's concern regarding cash flow. He indicated that he would
be more comfortable if the dollar amount was closer to the $200,000 range.
Ken Maus stated that it makes sense to consider this proposal because the
City can get a better return on its investment by funding the project than it
can by purchasing certificates of deposit.
After discussion, a motion was made by Brad Fyle and seconded by Shirley
Anderson to continue the past practice of financing improvement projects
through the sale of general obligation improvement bonds. Voting in favor:
Clint Herbst, Shirley Anderson, Brad Fyle. Opposed: Ken Maus, Patty Olsen.
7. Consideration of reviewing year-end liquor store financial report.
Council reviewed the report. No action taken.
8. Consideration of annual computer hardware maintenance agreement.
Assistant Administrator O'Neill reviewed the quotes obtained from various
vendors that provide computer hardware maintenance and recommended that
the City Council approve renewal of an annual maintenance agreement for
computer hardware with Computer Parts and Service at a cost of $2,870,
which is within the budget amount.
After discussion, a motion was made by Clint Herbst and seconded by Brad
Fyle to approve renewal of the annual maintenance agreement for computer
hardware with Computer Parts and Service at a cost not to exceed $2,870.
Motion carried unanimously.
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9. Consideration of granting seasonal 3.2 beer license to the Monticello Softball
Association.
Rick Wolfsteller reported that at the previous Council meeting no action was
taken on renewing the Softball Association's beer license for the NSP ball park
facility, as they had not yet reimbursed the City for all the required fees for
1992. The City Council went on to review the Monticello Men's Slow Pitch
income report, which showed a net loss of $1,827.
Ken Maus stated that adjustments to the manner of operation could and
should be made to the concession operation to improve the balance sheet. The
Association debts should be current, or the City will need to consider other
alternatives for operating concessions at the ballfield.
Clint Herbst suggested that a payment schedule be established which would
require that the Association pay the beer license on an incremental basis. He
also noted that revenue from team registration is due in mid-May; therefore,
it might make sense to require that the 1993 license be contingent on payment
of the 1992 balance by May 15, 1993.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to grant the 3.2 beer license to the Monticello Men's Softball
Association contingent upon receipt of necessary insurance documents and
contingent on payment of 1992 balance of $1,500 by May 15, 1993. Motion
carried unanimously.
10. Consideration of appointing new employee for water/wastewater collection
position.
John Simola reported that the City received 50 applications for the position of
Water/Sewer Collection System Operator. The selection committee consisted
of the City Administrator, Public Works Director, and Water/Sewer Collection
System Superintendent. The group had selected six candidates for interview.
As a result of the selection process, City staff is recommending that John
Middendorf be appointed to the position. Middendorf is a graduate of St.
Cloud Technical College and is currently a supervisor for the City of Clarkfield
Public Works Department.
A motion was made by Clint Herbst and seconded by Shirley Anderson to
appoint John Middendorf to the position of Water/Wastewater Collection
System Operator. Motion carried unanimously.
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11. Consideration of re -design of park building for West Bridge Park.
John Simola reported that the City of Monticello took bids on the original park
building design by TKDA and reviewed bids with the City Council on May 11,
1992. The best bid was in the amount of $78,000, which was $26,000 over
budget. At that time, it was the consensus of Council to work with the
architect to modify the design of the building to cut costs further and look at
the potential of utilizing public works employees to assist in construction of the
facility.
John Simola reviewed two basic alternatives for moving forward on the project.
One alternative would be to re -design the building at an estimated cost of
$2,560 to bring the building in line with our $52,000 budget and then re -bid
the project as a whole for a summer construction project. The other alternative
would be to re -design the building but have the City be the general contractor
on the project with the possibility of the City crew doing a portion of the work
such as concrete flat work and interior paneling installation.
Council went on to review the alternatives and discussed the need for the
facility. It was the consensus of the Council that the need for the facility as
a warming house for ice skating is limited; however, the facility serves also as
a warming house for the East Bridge sliding area, and it serves as a shelter
for summertime uses. It was, therefore, concluded that the project should be
completed.
After discussion, a motion was made by Brad Fyle and seconded by Shirley
Anderson to authorize City staff to re -design the warming house as proposed
in compliance with applicable building code and direct City staff to be the
general contractor on the project and authorize City staff to participate in the
construction process where appropriate. Motion carried unanimously.
12. Other matters.
A. Assistant Administrator O'Neill provided Council with an update on
City staff efforts to obtain state and federal funds now available to
finance bridge/freeway approach ramps and bikeway projects. Staff will
be preparing applications for development of a partial interchange at the
intersection of I-94 and County Road 118 and will be preparing an
application for funds to assist in financing construction of Fallon Avenue
overpass. In addition, a preliminary application for funds to assist in
financing bikeway/walkway development will also be prepared.
B. 011ie Koropchak reported that the HRA has been making progress on its
goal of facilitating development of a subsidized or market rate
congregate or assisted living senior housing project. She noted that she
will keep Council informed of developments as they occur.
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C. Ken Maus observed that the City should consider acting to reduce speed
or widen Fallon Avenue at some point in the near future. He requested
that City staff contact the Township to explore options for upgrading
Fallon Avenue between Chelsea Road and the Cardinal Hills
development area.
There being no further discussion, the meeting was adjourned.
rte,
Jeff U&erifll
Assistant Administrator
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