City Council Minutes 11-22-1993MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 22, 1993 - 7 p.m.
Members Present: Ken Maus, Shirley Anderson, Brad Fyle, Clint Herbst, Patty
Olsen
Members Absent: None
1. Call to order.
2. Consideration of approval of minutes of the regular meeting held
November 8, 1993.
After discussion, a motion was made by Brad Fyle and seconded by Clint
Herbst to approve the meeting minutes as submitted. Motion carried
unanimously.
3. Citizens comments/petitions, requests, and complaints.
Steve Birkeland was present to ask for a clarification on one of the
conditions associated with the conditional use permit. Birkeland noted that
the conditional use permit required a screening fence that is 8 ft high. A
fence of this height must meet stringent structural requirements.
Birkeland indicated that the materials that will be stored on site will not
exceed a height of 6 ft; therefore, he will be able to meet the intent of the
conditional use permit through installation of a less expensive but equally
effective 6 -ft high screening fence.
After discussion, a motion was made by Clint Herbst and seconded by Brad
Fyle to allow installation of a screening fence at a height less than 8 ft with
the understanding that materials stored on site will not be stacked or
placed at an elevation that would place the materials in view from the
adjacent roadways. Motion represents a clarification of the previously -
awarded conditional use permit and does not represent an amendment
thereof. Motion carried unanimously.
4. Public hearing on the adoption of an assessment roll for the School
Boulevard improvement project.
Mayor Maus opened the public hearing.
Administrator Rick Wolfsteller reviewed the assessment roll. In his review
he noted that the total project cost for the street construction storm sewer
improvements came to $287,579. After adding to this cost all indirect costs
for engineering, inspection, and bonding fees, etc., the total project cost
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came to $355,108. The City's share for oversizing expenses, which is 20% of
the cost, amounts to $55,076. The balance of the total project cost of
$300,000 is split evenly between the Cardinal Hills development and the
School District.
There being no comment from the public, the public hearing was closed.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to adopt the resolution and assessment roll as proposed.
Motion carried unanimously. SEE RESOLUTION 93-43.
5. Review the third quarter liquor store financial statements.
Rick Wolfsteller reported that in terms of gross profit, the major sales
categories appear in line with our expectations, and the overall gross profit
percentage for all sales is at 24.47%. Due to a 3 1/2% drop in beer sales,
the resulting net operating income is lower than last year by about $5,500.
The entire drop in operating income can be attributed to lost beer sales,
which has been experienced industry -wide due to the cooler and wetter -
than -normal spring and summer. The overall operating income for the first
9 months is $114,814 versus $120,399 last year.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to accept the financial statements as submitted. Motion
carried unanimously.
6. Consideration of final payment on Hart Bouelvard trunk storm sewer
extension, Proiect 93-06C.
John Simola reported that LaTour Construction of Maple Lake has
completed the work on the Hart Boulevard trunk storm sewer extension,
including the stub street coming out to County Road 75 for the new Hart
Boulevard entrance. The original contract amount for the project was
$134,881. Total construction cost came to $137,252. The $2,371 cost
overrun resulted from the unexpected need to remove construction debris
from an excavation area.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to approve final payment to Latour Construction for City of
Monticello Project 93-06C in the amount of $34,349.50. Motion carried
unanimously.
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7. Consideration of purchasing optical scan election equipment.
Rick Wolfsteller reported that for the past 10 years, the City has been using
an electronic punch card voting system for elections. The City was one of
the first communities in the county to automate the election process by
going to the punch card system. But now it appears that our equipment is
becoming outdated, and the City should consider switching to an optical
scan paper ballot type system that is widely used in the state of Minnesota.
Wolfsteller noted that a number of communities have also automated their
election system by going with a new method of reading ballots. The cities of
Otsego, Rockford, Delano, and Buffalo are current users of the optical scan
system supplied by Business Records Corporation.
Wolfsteller indicated that the punch card system has worked fairly well for
the past 10 years; but due to the fact that very few locations are currently
using the punch card system, support of the system is becoming very
limited. Therefore, we really don't have much choice if we want to remain
with the majority of communities.
After discussion, a motion was made by Clint Herbst and seconded by
Shirley Anderson to authorize the purchase of a used OPTECHIII-P optical
scan system for $4,500, a backup PROM pack for $315, and a demonstration
PROM pack, with said purchase to be delayed until early 1994 to coincide
with the budget schedule. Motion carried unanimously.
8. Consideration to review Greater Monticello Enterprise Fund (GMEF) Loan
No. 007, Lawrence T. Demeules, dba Standard Iron and Wireworks, Inc., for
compliance with GMEF Guidelines.
Economic Development Director, 011ie Koropchak, reported that the EDA
requests the City Council to review GMEF Loan No. 007 for compliance
with GMEF Guidelines. Koropchak noted that GMEF Guidelines state that
the EDA shall have authority to approve or deny loans; however, within 21
days of EDA approval, the City Council may reverse a decision of the EDA
to approve a loan if it is determined by Council that such loan was issued in
violation of the GMEF Guidelines.
Koropchak reported that an equipment loan was approved by the EDA for
$75,000 at a 5% fixed rate of interest amortized over 7 years. The loan fee
was set at $1,125, and the GMEF legal fees are the responsibility of the
borrower. The GMEF State Economic Recovery Grant and Central
Minnesota Initiative Fund loans will share a first purchased money on the
horizontal machine center. Koropchak went on to note that the GMEF loan
fund balance is at $157,500. Approval of the proposed loan will result in a
remaining balance of $78,750 available for future loans.
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After discussion, a motion was made by Brad Fyle and seconded by Shirley
Anderson to determine that the EDA -approved GMEF Loan No. 007 was
issued in a manner consistent with the GMEF Guidelines. Therefore, the
City Council should support the decision by the EDA for loan approval.
Motion carried unanimously.
9. Consideration of renewing garbage contract with Vasko Rubbish Removal,
Inc.
John Simola reported that our current 3 -year contract with Vasko for
garbage pickup expires on the last pickup day of March 1994. It has been
the City's past policy to negotiate its garbage contracts approximately five
or six months before they expire. The primary reason for this is that should
negotiations prove unsuccessful as they were with our last contract, a
significant amount of lead time is often needed for contractors to gear up
and give the best possible prices in a new bid. Simola noted that we have
negotiated what he feels is a very favorable contract for the City of
Monticello. Our last 3 -year contract was for a fixed amount (once -a -week
pickup for single family through triplex at $3.80 a month, and twice -a -week
pickup for 4-plex and above apartments was $4.73 a month). The contract
proposed is for a 10% increase beginning in April of 1994 and an additional
3% in April of 1995 and April of 1996.
A concern was expressed by council members about the current level of
service provided to apartments, which provides for two pickups per week. It
was thought that perhaps the apartment unit pickups could be reduced to
one per week, which would result in a reduction in cost. John Simola
responded by saying that most apartment complexes are set up with space
available for two pickups per week. If reduced to one pickup per week, it
would require additional dumpster space, which would result in a loss of
parking. In addition, reducing the number of pickups to one per week
would result in the need to provide an additional truck during the day of
the pickup, which would result in a loss of efficiency and little savings.
Therefore, from an efficiency standpoint, it makes sense to continue with
the apartments on a two pickup per week schedule.
After discussion, a motion was made by Clint Herbst and seconded by Brad
Fyle to approve the concept of a 3 -year contract but fix the 1995 and 1996
cost increases at 3% without adjustments should the CPI fall below 2% or
above 5 1/2%. Motion carried unanimously.
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10. Consideration of bills for the month of November.
A motion was made by Shirley Anderson and seconded by Patty Olsen to
approve payment of bills as submitted. Motion carried unanimously.
There being no further discussion, the meeting was adjourned.
After adjournment, Council convened in a closed session to discuss court litigation
relating to the Westside Market rezoning request.
C
Jeff O'Neill
Assistant Administrator
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