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City Council Minutes 03-23-1992MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, March 23, 1992 - 7:00 p.m. Members Present: Shirley Anderson, Clint Herbst, Brad Fyle, Dan Blonigen, Ken Maus Members Absent: None 2. Approval of minutes. After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to approve the minutes of the regular meeting held March 9, 1992. Voting in favor: Clint Herbst, Brad Fyle, Dan Blonigen, Ken Maus. Abstaining: Shirley Anderson. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to approve the minutes of the special meeting held March 17, 1992. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None. 4. Consideration of contract extension negotiation with D & K Refuse and Recycling. John Simola, Public Works Director, reported that D & K Refuse and Recycling of Big Lake and St. Cloud took over recycling services for the City of Monticello in mid-November after Polka Dot Recycling of Buffalo, Minnesota, went out of business. After soliciting proposals from several firms, the City Council selected D & K based upon their experience in recycling and their competitive pricing. Simola went on to note that D & K has been doing an exceptional job for the City. City Hall rarely receives a call from single family residents in regard to pickup, and D & K is working with us to obtain better participation in recycling quantities from apartment units in town. Simola stated that both he and the City Administrator had two negotiation sessions with Randy Linn of D & K Refuse and Recycling. Simola reviewed significant points in the contract language as follows: The duration of the contract would be a period of three years from April 18, 1992, to April 18, 1995. The cancellation clause without cause would be increased from 120 days to 180 days. The annual performance bond requirements would be adjusted to the value of a six- month period. Page 1 Council Minutes - 3/23/92 Simola highlighted the point that negotiations called for a cut in the cost of service to the City in the amount of $1,534 for the first year. For years two and three, the annual contract amount would be increased by approximately $1,174. Wolfsteller and Simola reported that the negotiations were favorable toward the City of Monticello and that D & K Recycling has been open and honest about the cost and plans for the future; therefore, City staff recommends that the proposed contract be approved. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to approve a new three-year contract with D & K Refuse and Recycling based upon the cost and parameters as noted in the proposed contract. The estimated cost for year one would be $25,762. For years two and three, the estimated cost would be $26,936 per year. Motion carried unanimously. 5. Consideration of adoption of plan for financing School Boulevard between Fallon Avenue and Countv Road 118. Mayor Ken Maus opened the discussion by noting that according to the comprehensive plan, School Boulevard will one day be extended from the school campus area to Highway 25. The plan for financing that portion of School Boulevard between Fallon Avenue and County Road 118 will establish a precedent for financing future sections of this roadway. Mayor Maus suggested that Council focus on developing a plan or policy for financing development of collector roadways such as School Boulevard and then apply the policy to the present situation. Assistant Administrator O'Neill reviewed methods that other communities use for financing collector roads such as School Boulevard. O'Neill noted that cities such as Champlin and Brooklyn Park would require that the developer and the School District pay the entire cost of the roadway even though the roadway is oversized and designed to serve traffic generated from outside of the local area. O'Neill also noted that Coon Rapids utilizes state aid funding to pay up to 300 of the collector roadway cost, with the properties adjacent to the roadway paying the balance. In summary, City contributions toward financing collector roads vary from 0% to approximately 30% of the cost to complete the collector road. Ken Maus noted that it might make sense for the City to pay that portion of the cost that could be attributed to oversizing that is necessary to handle larger volumes of traffic generated by the City at large. Dan Blonigen concurred that the City should pay for the oversizing only. Page 2 Council Minutes - 3/23/92 City Engineer, Bret Weiss, noted that in Monticello, the standard residential street is 36 feet wide and the width of a road designed to collector standards is 44 feet wide. The added cost to add 8 feet of roadway width to achieve collector standards increases the cost of the roadway on average about 0 2 0. Tom Holthaus of Value Plus Homes, Inc., reminded Council that three entities benefit from the road: the School District, Value Plus Homes, and the city at large. It was his view that the cost of the roadway should be split three ways. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to establish a policy that allows the City of Monticello to finance up to 20% of the cost to develop collector roads. The 20% financed by the City includes that cost attributed to oversizing the collector road and does not include storm sewer improvements associated with development of a roadway. Motion carried unanimously. At this point, City Council focused its discussion on development of School Boulevard between Fallon Avenue and County Road 118. Tom Holthaus indicated that Value Plus Homes realizes that the roadway is a benefit to their development; however, they felt that the need for the roadway is not pressing at this time, and their financial situation is such that an abatement of interest payments would allow them to meet their short-term financial obligations. O'Neill noted that the need to develop School Boulevard at this time is primarily driven by the School District's need to have the road completed by the beginning of the next school year; therefore, it may make sense to request that the School consider financing the cost to abate any interest payments. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to fund 20% of the cost to develop School Boulevard with the following conditions: 1. The remaining 80% would be split evenly between the School District and Value Plus Homes to be financed over ten years via the special assessment process. 2. The School District abate the interest but phases I and development area. is requested to pay the cost to expense for one year against all II of the Cardinal Hills Page 3 7. Council Minutes - 3/23/92 3. The City would lift the $500 per unit sewer trunk charge from lots developed with phase II of the development and place the per lot charge against the balance of the Cardinal Hills development area, which creates a new sewer trunk charge of $637 per lot. SEE ATTACHMENT A. Motion carried unanimously. Consideration of a resolution accepting feasibility report, calling for a public hearing on the improvement, and ordering plans and specifications --Project 92-02, School Boulevard. Bret Weiss of OSM described Boulevard. He noted that the will include construction of The total cost of the projec accordance with the decision item, the City will pay 2 construction, or $66,580; an Plus Homes will together pay and the entire cost to con bringing the total amount properties to $349,220. the design features of School roadway will be 44 feet wide and curb, gutter, and storm sewer. is estimated at $415,800. In made with the previous agenda % of the cost of the street I the School District and Value 80% of the street construction truct the storm sewer system, assessed to the benefiting After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to adopt a resolution accepting the feasibility report, calling for a public hearing on the improvement, and ordering plans and specifications for Project 92-02, School Boulevard. Item #3 of the resolution is to be modified to include "ordering of plans and specifications subject to acceptance of the finance plan by Monticello School District..." Motion carried unanimously. SEE RESOLUTION 92-9. Consideration of a resolution accepting feasibility report and ordering plans and specifications --Project 92-07, Phase II of Cardinal Hills residential subdivision. Assistant Administrator O'Neill informed Council that the developers, Value Plus Homes, Inc., request that Council order plans and specifications for phase II of the Cardinal Hills residential subdivision. O'Neill informed Council that ordering plans and specifications at this time is somewhat premature, as the final plat has not been approved, and the development agreement is not in place. In addition, the developers have not received final approval of the grading and drainage plan from the Army Corps of Engineers. Despite the fact that certain steps that have not been completed, the developers are confident that these items can be worked out; therefore, they've offered to provide the City with funds equal to the cost to prepare plans and specifications. These funds can be used to pay for the plans and specifications in Page 4 Council Minutes - 3/23/92 the event the project does not move forward. The developers are willing to place a letter of credit on deposit with the City to cover the cost of the plans in order to keep the project moving on a fast track. According to the developer, the benefits of ordering plans now outweight the risks. It is the view of the developers that it is better to move the project along by ordering plans and specifications now than to wait until the development agreement and final plat are in order. O'Neill noted that the resolution proposed for Council consideration requires that the City receive a letter of credit from Value Plus Homes, Inc. , in the amount equal to the cost to prepare the plans and specifications. The cost to prepare plans and specifications is $20,000. Bret Weiss reviewed the feasibility report, which outlined the design and costs associated with installation of streets, curb, gutter, water main, sanitary sewer, and storm sewer serving 50 residential lots. Weiss reported an estimated total cost of the improvement of $423,700. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to adopt a resolution accepting the feasibility report and ordering plans and specifications for Project 92-07, Phase II of the Cardinal Hills residential subdivision. Motion carried unanimously. SEE RESOLUTION 92-10. 8. Consideration of ratifying Joint Fire Board's request for reimbursement of fire protection cost --Wright County Composting Facility. Rick Wolfsteller, City Administrator, reported that with the new Wright County Composting Facility scheduled to go on line in April of 1992, Monticello Township officials have met with the Joint Fire Board to express concerns over fire protection for the facility and what possible effect it may have on the Township's share of the overall annual cost of fire protection. With the facility being located in Monticello Township, the Township's annual share of the fire department budget depends on the number of fire calls that occur within the township and the man-hours spent fighting those fires. The Township officials did not feel it was appropriate for the Township to be paying a higher share of the total budget just because Wright County decided to locate the county -wide facility in their jurisdiction. It was suggested by the Township representatives that the composting facility should be treated like a private enterprise, possibly a separate Page 5 Council Minutes - 3/23/92 arrangement could be made with the Wright County Board of Commissioners to reimburse the Monticello Joint Fire Department for our cost since the facility is servicing the entire county and is not just the responsibility of the Monticello area to provide fire protection. Rick Wolfsteller went on to note that preliminary indications are that the Wright County Solid Waste Task Force agrees with the concept provided that the charges are reasonable and can be substantiated. Wolfsteller recommended that the City propose requiring a standby charge that allows the Monticello Fire Department to be reimbursed for the cost of having equipment available and the cost of actual out-of-pocket expenses. Wolfsteller stated that the standby charge is based upon the composting facility's share of the market value of the jurisdiction served by the fire department times the fixed cost and capital cost (depreciation) calculated at $79,174. Dan Blonigen noted that he has no problem with a standby charge. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to ratify the Joint Fire Board's method of determining a reasonable cost for reimbursement and authorize the Joint Fire Board to request Wright County Board approval for fire protection services at the composting facility. The requested amount would be a standby charge of $1,346 plus $250 for the first hour of each fire and $100 thereafter. Motion carried unanimously. 9. Consideration of reviewing Help Center remodeling schedule and authorizing the project to begin --Monticello Jaycees/Old Fire Hall. Wes Olson of the Monticello Jaycees was present to update the Council on the progress made toward collecting funds necessary to remodel the old fire hall. Olson noted that a number of fund raising activities have been held, and the Jaycees have funds totaling $14,902. The original remodeling cost was estimated at $30,000 to $35,000. The Jaycees feel that they now have sufficient funds to start their project and are proposing to phase in construction based on funds available. Rick Wolfsteller reported that according to the Building Inspector, building plans must be reviewed by an architect or registered engineer. Page 6 Council Minutes - 3/23/92 Ken Maus asked that the City staff get a clarification on the law requiring that an architect review plans for this type of remodeling. He noted that an architect's review of the plans may not make sense given the magnitude of the project; however, the City may not have a choice in the matter. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to authorize the Monticello Jaycees to begin construction on the Help Center remodeling project subject to obtaining approval as required by state statutes. Motion carried unanimously. 10. Consideration of bills for the month of March. After discussion, a motion was made by Dan Blonigen and seconded by Shirley Anderson to approve the bills as submitted. Motion carried unanimously. 11. Other matters. Assistant Administrator O'Neill reviewed a proposed letter of concern to be submitted to the Wright County Planning Commission regarding development of the proposed gravel pit and bituminous plant adjacent to the southern boundary of the Monticello Orderly Annexation Area. Clint Herbst noted that he would like the letter written stronger with the City taking a stand in opposition to the project. Dan Blonigen disagreed. It was his view that the proposed facility is necessary and if located as proposed would result in lower road costs. It was his view that the City should be willing to accept it in the area as proposed. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the letter as proposed. Motion carried unanimously. Jeff O'Neill Assistant Administrator Page 7 Council Minutes - 3/23/92 ATTACHMENT A Total lots proposed with Cardinal Hills - 252 Minus phase I lots - 24 Minus phase II lots - 49 Remaining lot balance - 179 Total Lot Charge Deferred with Phase II - 49 X 500 = $24,500 Lot Charge Deferred/Remaining Lot Balance = $137 ($24,500) (179) Per Lot Deferred + Original Lot Charge = New Per Lot Charge ($137) ($500) ($637)