City Council Minutes 09-14-1992MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, September 14, 1992 - 7 p.m.
Members Present: Ken Maus, Shirley Anderson, Brad Fyle, Clint Herbst, Dan
Blonigen
Members Absent: None
2. Approval of minutes.
After discussion, a motion was made by Shirley Anderson and seconded by Dan
Blonigen to approve the minutes of the meeting held August 24, 1992. Motion
carried unanimously.
3. Citizens comments/petitions, requests, and complaints.
Assistant Administrator O'Neill reviewed a proposal submitted by Ed
Kaufman, Bob Miller, and Jeff Lindgren of Village Builders to develop 46
residential lots on property now owned by two separate entities. The proposal
would require acquisition of a portion of two 10 -acre parcels known as tracts
23 and 24 soon to be sold by AgriBank as part of an upcoming auction. In
addition, approximately 10 acres would need to be purchased by Village
Builders from Resurrection Lutheran Church.
O'Neill noted that the City may want to consider purchasing tracts 23 and 24,
as a large portion of it (7-10 acres) will need to be acquired for development of
a future storm water ponding area. The portions not used for the storm water
pond could be sold to a developer in conjunction with development of a
residential subdivision. It was also noted that a portion (5 acres) of tracts 23
and 24 has potential for resale to a church.
Dan. Blonigen noted that it was his view that the City should purchase this
property at this time. City ownership of the potential pond areas would
simplify future development and would be a good investment because it will
enable the City to develop storm water ponding necessary to support industrial
development in the area.
Brad Fyle agreed. He also noted the fact that if the City acquires the property,
it greatly improves the possibility of installing freeway ramps at this location
at some point in the future.
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It was noted by Ken Maus that City acquisition of this property does not
necessarily mean that it will be sold back to Village Builders and that it is
possible that the property that is developable on the site will be sold on the
open market to the highest bidder.
After discussion, a motion was made by Clint Herbst and seconded by Shirley
Anderson to authorize the City Administrator to bid on the AgriBank property
affected by the future storm water pond (tracts 23 and 24) with staff
authorized to use its best judgment in establishing the City's bid price. Motion
includes the acknowledgement that this purchase is being proposed in
conjunction with development of a future storm water system. The cost to
acquire the land and associated expenses will be included in the storm water
project development cost and should be eligible for financing through a future
bond issue. Motion carried unanimously.
4. Public Hearing --Consideration of a resolution adopting assessment roll for
Briar Oakes Estate, Improvement Project 91-2.
Ken Maus opened the public hearing. No comments were forthcoming from
those in attendance. The public hearing was then closed.
After discussion, a motion was made by Dan Blonigen and seconded by Brad
Fyle to adopt the assessment roll for Project 91-2, which includes the City
paying for the cost of the water main oversizing in the amount of $4,453 as
originally anticipated, and it includes the assessment of $2,453 to Outlots J,
L, and M of Meadow Oak. Finally, the balance of $309,734 is assessable to
Briar Oakes Estate 28 lots at $11,062 each. Motion carried unanimously.
SEE RESOLUTION 92-27.
5. Consideration of approval of preliminary plat for the Silver Fox subdivision.
Assistant Administrator O'Neill reviewed the subdivision proposed by Ed and
Arlys Larson, which called for dividing the Silver Fox property into three
commercial sites. O'Neill noted that the Planning Commission recommended
approval of the preliminary plat based on the finding that the plat meets the
minimum requirements of the ordinance and because the grading plan as
proposed will result in an improvement to current drainage patterns. O'Neill
noted that currently water from the site is discharged onto adjoining private
property. With development of the site, this water will be diverted directly to
a public storm sewer easement.
Ken Maus asked Ed Larson if he had any comments he would like to make
regarding the preliminary plat and issues relating to draining and grading of
the site. Larson indicated that he has no questions or comments.
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There being no further discussion, a motion was made by Dan Blonigen and
seconded by Shirley Anderson to approve the preliminary plat of the Silver Fox
subdivision and note that final plat approval is subject to preparation of a
development agreement requiring construction of a drainage swale blocking
water from Lot 2 from entering the property to the south and development of
a document identifying a plan for development of a cooperative strategy for
storm water run-off relating to Lot 3 of the Silver Fox plat and the parcel to
the south. This document is to be signed by all parties affected. Motion
carried unanimously.
6. Consideration of a preliminary plat request for a commercial subdivision plat.
Location is Block 1 and east 1/2 of vacated Locust Street, west 1/2 of vacated
Walnut Street, and north 1/2 of vacated 8th Street. Applicant, Barry
Fluth/Monticello Mall.
Assistant Administrator O'Neill reported that in conjunction with the purchase
of the Monticello Mall property, Barry Fluth wishes to split off the Country
Kitchen from the original mall site. In order to do so, Fluth needs to plat the
property.
O'Neill noted that after reviewing the ordinance relating to the design of
preliminary plats, we found the proposed plat meets city ordinance; however,
there is a unique circumstance relating to this plat. When the mall was
originally developed, the mall and the Country Kitchen shared a water and
sewer service line that extended from the city right-of-way onto the mall site.
Under our current ordinance, this would not be allowed, as each business
establishment is required to connect its private utility lines to city utility lines.
Due to the fact that this situation pre-exists the ordinance and due to the fact
it would be very expensive to physically change the system at this time, it is
suggested that the City require preparation of a document which identifies
joint ownership of the utility lines and makes the properties using the sewer
and water lines jointly responsible for long-term maintenance. In addition,
storm water discharged from the Country Kitchen site must pass over the mall
site before it reaches a public storm water system. This document should
identify this situation as well. Finally, the document should address joint
parking, which would allow mall patrons to park on the Country Kitchen site
and vice versa.
Ken Maus noted that Fluth should seriously consider installing separate shut-
off valves at each location. This would allow water service to be terminated
to either one of the sites without affecting the other.
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After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to recommend approval of the preliminary plat of the Monticello
Mall contingent upon preparation of documents governing joint use and
maintenance of utilities and parking areas. Motion carried unanimously.
7. Consideration of authorizing purchase of display cooler --liquor store.
Rick Wolfsteller reported that over the past few years, the liquor industry has
seen an increase in the number of different brands of beer offered for sale
along with an increase in items such as wine coolers. The liquor store is
finding it more difficult to offer some of these new products in the liquor store
due to the limited space available within our walk-in cooler.
Joe Hartman is investigating the possibility of purchasing a separate 3 -door
cooler display for some of the miscellaneous items we currently sell, thus
freeing up the existing walk-in cooler for more of the new beer and wine cooler
items. Joe has received quotes from two suppliers for a cooler that is almost
identical at a cost of $2,166. Although this expenditure was not anticipated as
part of the 1992 budget, funds are available from the liquor store operation if
the Council would approve this purchase.
Wolfsteller recommended approval of the purchase of a 3 -door cooler in the
amount of $2,163.
After discussion, a motion was made by Brad Fyle and seconded by Dan
Blonigen to approve the purchase of a 3 -door cooler in the amount of $2,163.
Motion carried unanimously.
8. Consideration of keeping 1983 Chevrolet van for water and sewer collection
department.
John Simola reported that it was his understanding that the Council
authorized the purchase of a 1 -ton truck for the water and sewer collection
department conditional upon trading the 1983 Chevy van. Simola requested
that Council reconsider trading in the van, as it was his view that the trade-in
value is only $1,500, but the value to the City is much greater because it
continues to provide transportation. Simola noted that there is some rust
starting to occur on the body that was painted last year, and the engine needs
some service to an oil leak; however, it is our view that the van could last
another three years or so and still have trade-in value of half the current offer.
Simola, therefore, requested that City Council reconsider and allow the City
to keep the van to be used by Tom Bose in the inspection department and for
general transportation.
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Ken Maus stated that we don't want every employee to have their own vehicle.
When an employee is not using a vehicle, it should be immediately available
for any other employee that has transportation needs.
Dan Blonigen stated that he supports keeping the van because the City can
use it for a few more years, and the trade-in value at this time is simply too
low.
Brad Fyle concurred with Blonigen. If we can get two or three more years of
use out of the van, it puts us money ahead.
Clint Herbst clarified his position in stating that he thinks we should keep the
van; however, we should have gone through the proper steps in making the
decision. "
After discussion, a motion was made by Dan Blonigen and seconded by Brad
Fyle to authorize City staff to keep the van for use by the City's Municipal
Construction Inspector and for general transportation use. Motion carried
unanimously.
9. Consideration of accepting bid specification and authorizing advertisement for
bids --Monticello Heartland Express.
Assistant Administrator O'Neill reviewed the bid specifications prepared jointly
with Tom Gottfried, the Minnesota Department of Transportation Project
Manager, and asked Council to consider accepting the bid specification and
authorize advertisement for bids from transportation companies interested in
providing transportation service for 1993 and 1994. O'Neill noted that state
statute requires that the City conduct a bidding process.
Council reviewed ridership patterns. Ken Maus was concerned that the
ridership has plateaued and that additional efforts need to be made to increase
ridership or increase fare revenue.
O'Neill noted that the system is meeting its projections in terms of the cost per
ride; however, we are slightly below expectations in terms of the portion of the
cost financed via fare revenue. He noted that according to MN/DOT, it should
be the goal of each system to obtain at least 20% of the cost to operate the
system through fare revenues. Right now, fare revenues are funding about
16% of the cost to operate the system. O'Neill noted that it would be his goal
to work with the Monticello Transportation Advisory Committee to devise
strategies to increase ridership and revenues so that the system can achieve
its goal of obtaining 20% of its funding through fare revenues. O'Neill
reviewed the formula for funding the bus service by noting that the State of
Minnesota pays 60% of the cost to operate the system. The remaining 40% is
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split between fare revenue obtained and city taxes. At this time, city tax
contributions amount to about 24% of the cost to operate the system annually,
or about $17,000 per year.
After discussion, a motion was made by Shirley Anderson and seconded by Dan
Blonigen to accept the bid specification and authorize advertisement for bids
for the Monticello Heartland Express. Motion carried unanimously.
10. Consideration of purchase of computerized Miscellaneous Accounts Receivable
System (MARS).
Rick Wolfsteller requested that Council consider purchasing an accounts
receivable system that would enable City staff to improve record keeping and
reporting and streamline the billing process. In his report, Wolfsteller noted
that the system would allow staff to enter, print, and track miscellaneous
accounts receivable invoices as necessary.
Wolfsteller highlighted reasons for purchasing the program. He noted that the
process for billing will be improved and structured through installation of this
system and will decrease the likelihood of unpaid charges falling through the
cracks. The system would help save time in preparing unpaid miscellaneous
accounts receivable for certification to the county auditor. The year-end closing
process would be expedited, as the accounts receivable balances would already
be transferred to the finance system. Account balance information would be
easily accessible for the annual audit, thus saving the City auditor time, which
could result in a reduction in auditing costs.
Wolfsteller also stated that MARS has potential for uses other than
miscellaneous billings. Planning, zoning, and building departments do not
invoice fees and charges. Instead, payments are collected at appropriate
intervals such as when picking up a building permit or a developer paying his
share of costs after a project is completed and project costs are finalized. The
MARS system could be used to track billable project costs and can provide
quick updates to the City or developers at any time as to the cost of a project.
Wolfsteller noted to Council that computerizing accounts receivable will likely
result in increased time required by staff to implement the system at first.
Wolfsteller went on to state that even though there will be some savings in
time for certain activities, there will be additional time required for proper
coding and entering of data; therefore, in terms of staff time, use of this
program will not likely have a major impact. However, the main impact of the
program will be an improvement in the accuracy of our information and
enhance our ability to obtain reports on a timely basis.
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Council discussed the matter. The discussion focused on the annual
maintenance contract. It was noted by staff that the annual maintenance
contract will not become an issue until after the first year, as the original cost
of the system of $3,600 does include the first year's maintenance.
After discussion, a motion was made by Shirley Anderson and seconded by
Brad Fyle to approve purchase of the Miscellaneous Accounts Receivable
System. Purchase of the annual maintenance contract related to MARS and
other City software is to be reviewed at a later date. Voting in favor: Ken
Maus, Brad Fyle, Clint Herbst, Shirley Anderson. Opposed: Dan Blonigen.
11. Consideration of requiring park dedication with development of
commercial/industrial plats.
Assistant Administrator O'Neill requested that Council discuss the park
dedication policy as it relates to development of commercial/industrial
property. Specifically, Council was asked to consider whether or not park
dedication in the form of land or cash should be provided with platting of
industrial and commercial property. O'Neill noted that the present ordinance
defining park dedication does not specifically differentiate between residential
and commercial/industrial land; therefore, it could be argued that park
dedication is required with platting of all types of property. For many years,
however, the City has not required park dedication with industrial/commercial
land.
After discussion, it was the consensus of Council that the present City policy
to not require park dedication with industrial/commercial land has been
appropriate.
O'Neill noted that this issue is brought to Council for a number of reasons, the
first being the impending AgriBank auction. O'Neill stated that there is a good
chance that the sale will result in platting of over 100 acres of industrial land.
It may, therefore, be appropriate to clarify this policy prior to the platting.
Another factor motivating staff to bring this item forward is research that
shows that a number of cities require industrial/commercial park dedication.
Finally, the preliminary results of this survey indicate that bike and trailway
development is viewed as a significant need. Establishment of industrial land
park dedication could provide the City with options for obtaining trailways
through industrial areas where appropriate.
O'Neill recommended that Council table the matter pending input from the
IDC and Parks Commission but notify AgriBank that the park dedication
policy is under review.
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Dan Blonigen mentioned that requiring park dedication is like robbing Peter
to pay Paul. Most industrial developments include some incentives from the
City such as tax increment financing or use of the revolving loan program. He
wondered if it made sense to provide incentives and then turn around and
require park dedication.
After discussion, a motion was made by Shirley Anderson and seconded by
Brad Fyle to table a decision regarding park dedication for industrial and
commercial property but authorize staff to indicate to AgriBank that the City
is reviewing its policy regarding park dedication and the City may require it
with future industrial/commercial development. Motion is to include
authorizing City staff to direct the question to the Parks Commission and the
Industrial Development Committee. Motion carried unanimously.
12. Other matters.
John Simola reported that issues have arisen relative to the present tree
chipping policy. Currently, the City provides tree and limb chipping at a cost
of $25 base fee for 1/2 hour of service, with an additional $25 for every
additional half hour or fraction thereof. Questions have arisen relative to the
application of this policy as it applies to large chipping projects. Simola noted
that he will be updating the tree chipping policy to address this issue and
others.
011ie Koropchak reported that the City of Monticello is in the running for '"All
Star City" recognition based on the recent Chelsea corridor planning study.
The City may be recognized by the state for exemplary efforts contributing
toward economic development. She reviewed the planning project, which
included an amendment to the comprehensive plan, which established the
business campus zoning district and identified a plan for addressing
transportation issues in a manner that would allow for future industrial
development in the Chelsea corridor area.
There being no further discussion, the meeting was adjourned.
Y ; j
Jeff YO'Neill
Assistant Administrator