City Council Agenda Packet 04-11-1983AGENDA FOR THE MEETING OF THE CITY COUNCIL
April 11, 1983 - 7:30 P.M.
Mayor: Arve A. Grimsmo
Council Members: Dan Blonigen, Fran Fair, Ken Maus and Jack
Maxwell.
1. Call to Order.
2. Approval of the Minutes of the Meeting Held on March 28, 1983.
3. Citizens Comments/Petitions, Requests, and Complaints.
Old Business
4. Consideration of a Petition Requesting Reassessment of the
78-1 Public Improvement.
5. Consideration of Change Orders #91 through #96 for the
wastewater Treatment Plant ConarrucLion Paujuc L.
6. Consideration of Change Order 02 for the 82-2 Improvement
Project.
7. Consideration of a Joint Powers Agreement Establishing a
Cable Communications Commission.
8. Report by the Oakwood Block Sub -Committee.
Naw Business
9. Authorization for the Preparation of Plano and Specifications
for the Gould Brothers Service Road Overlay.
10. Consideration of an Application for a 3.2 Boor On -Salo Llconso -
Applicant - Softball League.
11. Adjournment.
A
MINUTES
REGULAR MEETING - MONTICELL,O CITY COUNCIL
March 28, 1903 - 7:30 11. M.
Members Present: Fran Fair, Dan Blonigen, Yen Maus, Jack Maxwell.
Members Absent: Mayor Arve Grimsmo.
2. Approval of the Minutes.
A motion was made by Fair, seconded by Maxwell and unanimously
carried to approve the ninutes of the regular meeting held on
March 14, 1983 as presented.
3. Citizens Comments.
Attorney, Jim Metcalf, representing Doctor and Mrs. Prion who
are in the process of purchasing the Riverview Medical Clinic
from Dr. Ek:ntzin noted to the Council members that he has come
across a legal description problem associated with the River-
view Clinic. Somewhere in the past, the Monticello Development
Corporation when it was acquiring land for the City parking
lots,the Development Corporation transferred the northeasterly
32 feet by 100 feet parcel of let 12`.o the City of Monticello
for the parking lot. The 32 by 100 foot piece of Lot 12 is
presently situated on the property where the present Riverview
Clinic iu located and Mr. Metcalf thinku the parcel of laid
vas ¢apposed tobe on lot 13 (Behind Johnuun's Department Store
warchouuu) . Mr. Metcalf noted that lila patcul that has been
recorded to be transferred to the City as part of tet 12 could
not be correct oince the Medical Clinic sits on a portion of
this parcel today. Mr. Metcalf requested Lha) if lila City
after verifying thin dais not have any rightu to this portion
of Lot 12, he requested that Lila City Nlministoator and the
mayor bo alloyed to execuLc a quit claim deed relenuing its
Interest in this parcel.
A motion woo made by Maus, seconded by Fair and unanimously
carried to authorize the City Administrator and the Mayor to
verify with Cho City Attorney Mr. Motcalt's concerns relating
to the parcel in Lot 12 and to execute a quit claim deed if
it is dototmined that the City door not )lave any Interact in
this parcel. '
Council Minutes - 3/28/83
OAF
4. Consideration of Chanqu Order 90 nn Lite W;IliLewater Treatment
Plant Project.
John Simola, Public Works Director, noted that the laboratory
centrifuge previously specified and ordered through field
modification 057in October of 1981 has been discontinued and
the contractor can no longer got this particular lab equip-
ment. As a result, a new centrifuge would cost $517 more
resulting in a change order. Concerns were expressed by
Council member Bloniyen in that Ire felt the contractor
should be responsible for the difference in price since it
was his obligation to supply the original centrifuge and
it should not be the City's problem if it is no longer
available.
A motion was made by Fair, seconded by Maxwell to approve
change order #90 with the Paul A. Laurence Company for a
new centrifuge for the wastewater Treatment Plant lab for
an additional amount of $517.00. Voting in favor were Fair,
Maxwell and Maus. opposed was B lonigon.
5. Consideration of a Petition to lae-essous Certain Proportion.
At tithe December 12th, 1982 mooting, a petition was presented
by a number of property owners who were affected by the
assessments of the 1978 and 1979 projects. At that meetiny,
the entire matter was tabled to allow the City staff to
assemble additional information that could be utilized in
making a decision as to whether the property could be re-
ansusned for a longer period of time.
Since that time, the City staff has met with repro aentatives
frum Springated, Inc., the City' ulwnding consultant, to
look at various alternatives reg aiding Lite possibility of
uxtending Lite length of assessment term. Although the
l,etition originally asked for ro-aucesement to 15 or 20
years on the 78, 79, 80 and 81 1,rojectu, only the 1978
project was originally assessed over 5 yearn with the
rest of the projects already la ing asseaued over 10 years.
Because of this, Springatod, Inc. along with the City
staff prepared some information regarding the posuiblo ro-
auuonamunt of Lite 78 project from a S to a 10 year term.
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Council Minutes - 3/28/83
The basic propusal arrived at Lhruugh the bonding consultants
and the City Staff would be to take the original principal
amount of the 78 project assessment and rut it up on a 10
year assussmenL roll dating from the urigival date with Lhu
same interest rate of GS%- It was recommunded that then the
property owner be required to pay the amounts that would have
been due the first 4 years under the new 10 year assessment
roll calculations and then the City could extend the remain-
ing balance over the next G years. It was .,l::o noted that
it was the City Staff's recommendation that it be essential
that all delinquencies based upon the new 10 year assessment
be 1 -aid in full before the City consider adjusting the length
of the remaining assessments. Simply changing the assessment
roll, but allowing them to remain delinquent provides absolutely no
advantage to the City with respect to our cash flow and our
own debt retirement.
At this time, the information was only being given to the
Council for their review and that this item would be dis-
cussed at the next Council meeting with the affected property
owners in attendance on April 11, 1983.
6. Consideration ut a Resolution Autho a zing the Salo of bonds
for the Purpose of Makinq Public Improvements to Meadow Oak
Subdiviuion.
Mr. Jerry Schannon of Springsted, Inc. reviewed with the
Council hie recommendations for the issuance of $1,150,000
general obligation improvement bonds to finance the improve-
ments to Meadow Oak Subdivision. Tlw amount of the bond
issue Includes conLingenciou, indirect COOLS, conutruction
costs, capitalized interest, etc. Mr. Sehannon presented
alternatives for a 10 year bond issue and a 12 year bond
issue and recommended that the City consider ue1L ng the
bonds over a 12 year period of time to allow for some
r.xpoe ted delays in assessment payment.; due to Lome of the
COULD buinq assessed over proporty that may not be developed
over the next few ye arS.
on March 14, 1983 Council meeting, the City awardod a con-
tract for the improvements known as 82-2 Improvement Pro-
juct for Meadow Wk Subdivinion in the amount of approxi-
mately 5731,000.0u. In addition, the City has agroed to
do additional work in the Meadow Oak 8ubclivioion originally
estimated at approximately 976,000.00 which has now in -
crossed to approximately $108,500.00 due to negotiations
with the contractor. The anticipated bond sale should have
Sufficient funds to cover thlu change order and other change
orders if they occur. AS part of the original improvementu
9
(_yuic i h MiuuLcu - I/28/83
to the Meadow Oak Subdivision, the developers of the project
had originally estimated to complete approximately 28% of the
improvements to Meadow Oak themselves financed internally
but it has been noted that Lite developers plan to schedule
their improvements depending on sales of their property
which could result in their share of the project cost being
less than 280 initially.
After reviewing the recommendations of the bonding consultant,
a motion was made by Maxwell, seconded by Fair and unanimous-
ly carried to adopt a resolution authorizing the sale of bonds
for $1,150,000 to be used to finance the 1982-2 Improvement
Project to the Meadow Oak Subdivision per the recommended
12 year annrtization schedule. (See Beuolutiva 1983-1170).
7. Consideration of Appointments to an Ad Iloc Committee to
Negoitate the Transfer of the Remainder of Block 17, Original
plat, from tile School to tile City.
Several months ago, the City Administrator was instructed
to contact the school district concerning the possible
transfer of the remainder of Ute land in Block 17 adjacent
to tho public library from Lite school district to the City
of Monticello. This parcel of land was originally acquired
by Life school district from the Bondhus family and restrictive J
covenants placed on the land indicate Lhat the property can ho
used only for park and playground purposes by the school. It
was noted that the school at the present time to not maintain-
ing or upgrading the property since (khkwood School in no longer
acrous Lite streeL and Lite City IvlminiiLraLor noted that in
conversations with Lhe School Superintendent, a recommendation
was madu that a joint committee be established to negotiate
the Lranufer from Lite school to thu CiLy.
Tentative piano for the property if Life City should acquire
it would be to develop the property into a park area p000ibly
with some matching State grant funds. As a result, it was
Lite conuunsuo of the Council to appoint Council Mumbor,Fran
Fair,and City Administrator, Tom Cidem, to work with Shelly
Johnson, School Suporintendent, and one other school board
member to negotiato the poauible transfer of Lite land from
the school district to Lite City.
It was noted by Council Mumbor; Kon Mauu, that when the school
acquired the land, rontrictiono wore placed upon it whereby
the uchool could not transfer the property or uoo it for any
other purpose oLhor than pinyground or park and felt that the
City would not want to pay much for Lhe property to acquire.
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Council Minutcs - 3/28/83
In addition, Council member, Dan 6lonigen, was basically against
City ownership of the property if iL would cost the City any
_. money to acquire the property ILum Lhe sChool.
8. Consideration of Changirn_I the Date of the Second Meeting in May.
The second meeting in May is currently scheduled for Monday,
May 23rd, which is also the night that has been selected by
the Business s Industry Committee to hold its annual fund
raising banquet. It was the consensus of the Council that
tlae Council meeting scheduled for May 23rd would be changed
to a different date if a meeting was necessary but at the
present time no date had been scheduled.
9. Consideration of Change Order 01 on the 82-2 Improvement Project
and Additional Fxpense Items Relating to Railroad Crossings.
As part of the improvement project to Meadow Oak Subdivision,
Mr. Jim Boyle requested that a number of the hydrants along the
water main from Oakwood Industrial Park to County Road 118 be
eliminated from the project so that the land could continue to
be used for fanning purposes. The change order has been pre-
pared eliminating 10 hydrants along with related valves and
piping for a deduct of $24,752.50 from the original contract
price.
A motion was made by Fair, seconded by Maxwell and unanimously
carried to approve Change Order N1 in the amount of a deduct
of $24,752.50 on the 1982-2 improvement Project with
Richard Knutson, Inc.
John Simola, Public Works Director, informed Lhe Council that
as part of the construction project, the City will be open
cutting the Burlington Northern Railroad tracks to provide
sewer and water services to Meadow Oak Suldivioion. At
the time the bids were advertised for the improvements, the
City did not know elle exact coot from Burlington Northern to
be allowed to open cut the railroad and ss a result,those
items were eliminated from the bidding proeoas and would be
paid by the City. Tho City has now bean informed that tlw
cost for these improvemenLo would bo $4,450.00 as a deposit
to be made to Burlington Northern Railroad for restoration
of the railroad tracks.
10. Approval of the Bills.
A motion was mado by Blonigun, seconded by Fair and unani-
mously carried to approve the bills for the month of March
ou presented and also to include the approval for $4,450.00
required by Burlington Northern Railroad as a deposit for
opon cutting thoir railroad tracks.
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Council Minutes - 1/28/87
11. Consideration of Resolution to EPA on Wastewater Treatment
Plant Grant Amendment Request by ❑iginecr.
Consulting Engineer, John Badalich, requested that the City
Council consider adopting a resolution seeking a public hearing
on the engineer's request for additional engineering fees re-
lated to the Stop II portion of the Wastewater Treatment Plant
Grant.
The consulting engineer had previously under Step 1I prepared
plans and specifications for the Wastewater Treatment Plant
construction project and as a result, incurred additional
costs relating to the engineering ;.ortion. The proper procedure
at that time was for the engineer to request a grant amendment
to allow for funding of the additional engineering fees but
due to time constraints, the engineer proceeded with the plans
and specs prior to getting a grant amendment. Currently, the
Region V Office of the EPA in Chicago, has indicated that they
would not consider amending the engineering fees as part of a
grant amendn<nt, but the City Engineer feels that the EPA
regulations do allow for deviations and requested a resolution
from the City asking the EPA to hold a hearing to hoar tho
engineer's side of his request. The resolution would basically
say that the City did not deliberately violate any EPA rogu-
lationa or laws and would recommend that the L'PA Consider the
amendment deviation for the additional engineering fees
associated with the preparing of plans and upecu undue Step II.
A motion was made by Fair, seconded by Blonlgon and unanimously
carried to authorize the City Administrator to review the pro-
posed resolution with the City Attorney, Gary Pringle, for
content and if acceptable, to authorize the Mayor to sign the
resolution supporting the engineer's request for additional
engineering four.
Mooting Adjourned.
flick wolfutollor
Assistant Alwin iatrator
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Council Agenda - 4/11/83
4. Consideration of a Petition Requestinq Reassessment of the
78-1 Public Improvement. (TE).
I am not sure what more there is to be said about this particular
subject. we have investigated the possibility of establishing a
new assessment roll based on a 10 year term and have been given
the impression from the property owners than even this would not
make the delinquents more easily payable. Larry Flake was in to
see me this week and suggested that the assessment roll be es-
tablished as if on a 20 year term requiring that 4 years delin-
quencies be payable now and a balloon payment payable in the 10th
year. I said that it was not impossible and we, in fact, did
a sample based on one of the examples that Springsted had
supplied to us. Using the example that was submitted to you
with your last agenda supplement, the $9800 payment that would
be due and payable at the time of reassessing would be reduced
to approximately $7200 and the balloon payment would be approxi-
mately $9800.00. The problem we are faced with, it seems to me,
is that the delinquencies are to such a point that no one can
pay them up even if readjusted. If, in fact, that is the case
then I see no benefit to reassessing since it will got us no
rare :AoitAl than not reassessint] would. T sunnnse one thing
we could do would be to go to each property owner and request
of them individually what they would be willing to pay right
now and try to establish an assessment roll that would work
with that. I am afraid that I am at a loss when it cones to
ouggooting possible solutions to this problem. I suspect that
whatever is agreed upon, given an adequate amount of staff
time, we can rewrite an assessment roll to have certified.
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Council Agenda - 4/11/83
5. Consideration of Change Orders 091 through 96 for the Waste-
water Treatment Plant Construction Company. (JS).
#91
The change involves adding valves to the boiler hot water cir-
culation pumps to balance or restrict the flows to different
areas. These valves were omitted in design, as discharge head
calculations and pump manufacturers indicated they were not
necessary.
Most boiler systems do have balancing valves and we find that
we cannot operate our system efficiently without them. Some
areas are over heating while others are not heating at all.
it would only be necessary to have three valves, but there is
insufficient room to install the three valves so we have to
install six valves. One at each Pump location to restrict the
flow at each pump. The cost of this change order is $6,601.00
Chanqe Order 092 - This change involves replacing the existing
air compressor pressure control switch. The current switch
does not allow for sufficient pressure differential and will
result in higher operational and maintenance costs for the
compressors over the design life. The cost to change this
` switch is $dl2.UU
Chanya Order 093 - This change involves changing to smaller
impellers on several of the pumps in the plant. The actual
discharge head of the 4 intermediate transfer pumps and 6
return activated sludge pumps is much loan than that cal-
culated by OSM in design.
The pumps wore specified to pump somany gallons per minute
at a certain discharge head pressure. The contractor do -
livered the pumps on specified. When started, the discharge
heads were no much lower than calculated that the pumps wore
pumping 15 to 3 times their design rate and were cavitating
(air bound) and made it almost impossible to control the
discharges.
City personnel switched two of the small R.A.S. pump impallore
to the intermediate transfer pumps and we were able to got
satisfactory performance out of those two pumps. The romwin-
ing 8 pumps need to have tho impollora trimmed so they pump
loss. It is proposed that PALCO supply the parts and a puller
and that City personnel perform all the labor. The cost of
thin change is $2,589.
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Council Agenda - 4/11/83
Chanqe order 094 - This change involves the methane gas system.
There are actually two parts to this change order. The first
part involves adding the methane gas piping to the hot water
boiler to allow for dual fuel conversion, (natural gas and
methane). Our gas production has been greater than expected
while our natural gas bills have also been much more than
expected. Our natural gas bill for the boiler alone for the
past G months was $12,248.00. As you can see, any use of free
methane gas in the boiler will result in significant savings.
This first part only involves piping the actual boiler con-
version will be done later. (See end of agenda item).
The second part of this change order involves adding a moisture
drain in the methane gas lin, from the digestors to the gas
burn off relief device. Moisture accumulates in this 3" line
and plugs off the flow of gas which results in high pressure
in the digesters which causes the digestion relief valves to
open (See Change Order 095) and release methane to the outside
air. This is smelly an well as dangerous. Since this line is
buried and the site work completed, it is costly to excavate
and tunnel under the gas purification building to make a drain
line connection. The total cost for both parts of this change
order is $7,774.00.
Change Order 095 - This change also involves the methane gas
system. This winter the first stage digestion pressure relief
valve froze. This problem coupled with a moisture restriction
in the gas burn off device pipeline almost caused a
disastor. The pressure during the night became so great in
the first stage digestion that the covers anchor bolts started
to pull out of the concrete walls. luckily the problem was
discovered in time and a diaoter was averted.
It is our understanding that these relief valves are prone to
freezing. Some wastewater treatment handbooks show the problem
can be dealt with by insulating the valves and using heat tapes.
This change order provides electrical outlets at the first and
second stage digestion so that City personnel may install hoot
tapes ad insulation prior to next winter. The coat of in-
stalling the outlets is $475.00.
Chanqo Order 096 - This change involves the raw sawago pumps
which first lift the wastewater from the wet wall to the
divertor structure. The four (4) raw sewage pumps were built
to pumps 2 at 400 GPM each and 2 at 800 GPM each. All at a
total head of 65 foot. The two main small pumps are pumping
at a rata of 640 gallons par minuto each. Those pumps aro
pumping at ouch high ratoo that they cyclo quite often. The
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Council Agenda - 4/11/83
sluice gate in the divertor structuro receives a signal from
the flow rates of the raw sewage pumps. Due to the high cycle
rates the gate is not controlling flows or equalizing flows
as it should. In addition to the sluice gate, the on and off
cycles are having their effect on the primary clarifier
and other plant processes. we are currently partly closing
discharge valves to lessen flows.
In order to have the equipment operate properly, it is
necessary to have a lower, more stable flow to the divertor
structure. One way would be to trim or resize the pump im-
pellers to match an average flow condition. This would
definitely help, but since our flows are so variable and
average flow conditions can change with the seasons, this
does not seem the most practical answer.
It would be more advantageous to have an electronic variable
speed on one of the smaller pumps paced to the plant influent.
This would solve the problems in the divertor structure and
primary clarifier. This cost of this change is estimated to be
$16,800.00.
The total of change orders 91 through 96 is $35,051.00.
We currently have a balance In the construction fund of
$39,852.93. Therefore, we would have a balance, after
approval of change orders 491 through 96, of $4,801.93.
At this time, we are only anticipating one other change
order and that is the boiler conversion to dual fuel at
a coat of $7,193.00. we will not process this change order
until the final inspection by the Corporation of Engineers
and the PCA. Thome agencies may request a change themselves
and we do not wish to be without fundsuo accomplish such
change orders.
RFYERENCF.Si Copy of Change Order 491 only, 492 through 496
are not available at this time.
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CONTRACT CHANGE ORDER l
.3
Of aYlfOa IMlellal
IYr raTrr�
OW SC64"% MAYEQOh L ASSOCIATES. IAC.
.•DJI CO.i.,. •..r! CYC
rd7. f.!' wi •YI •+.•1 l.�'I )a r�Y.I.nO.'! rY WI)MIT 11'�i T... s4Y
Paul A. Laurence Co. Crenpeords, No. 91
AGd•o!7
P.O. Box 1267, 10000 Highway 55 west field aodlf, to. 135
Minneapolis, Minnesota 55440 proie0 M! 068-2748.01
Jot toce-nor Monticello, Minnesota EPA 0,aht 165210655-03
Ir aKco•de+a .ith tea »nes o• TG., cw.trsr Gated November 20 1980 eilh
City of Monticello o.nerfor ww p Upgrading and Appurtenant work
tJ: e'e hele_I ref:.estac 10 CQr: . •:tr. The fol lo•Ine,, mango from tho contract plant ana spKlfleat Ions:
1Ye•4t;o• and JustifieaTloe; - Qatar fo rield Modlf f 135 (Attached) .
Rovisions are required in the hot water heating system due to an imbalance in flow caused
by differences between the actual operating head conditions and the design head conditions.
Caa.coe- o• Cwts this chef,. 0.00•:
Ec"Pasr+(material)
Profit & o•e•haac
la? al Add
ITvrai DodaCt
I
(LOW
$2,024.00
1$3,716.00
$861.00
I $6,601.00
(Total available construction funds
auY,•• o• dlpinal co•f,.r: f <,7C:,000.00
Assistance Amendment No. 4 - $4,985,690.00)
Ictal Centred
Cof•••ar lar. C.O. 1190
I
Tote' Ad -;lion
I
total Dads
I T►,rr lhla C.O. /91
$:,945,835.07
$6,601.00
$4,952,436.07
fa/1 Qana l n i tip
co'.. Tn-. C.C. fl_
Ade ^ is C.O.
I
1710.0 TMIs C.O.
Cont l.po.tl as
Thera e111 be a. •Pena lon of 0 Gars fpr torplooloe.
TYe are of t•a t?i !a- Ion of CW -or. was Mev 31 ,
Ip_j and nod +III be
C:Er•..r er/l��wi .��t
ort sIp".d 3 • -30 4.3
Cgr.•rattpr
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t-11(0 r'-
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Council Agenda - 4/11/83
6. Consideration of Change Order 02 for the 82-2 Improvement
Project. (JS)
This item is being continued from the last meeting. After
reviewing change order 01 at the March 28th meeting and con-
ferring with John Badalich we decided several of the contrac-
tor's prices were extremely high. We therefore included only
the deletion of fire hydrants in change order N1.
Originally Richard Knutson requested $108,462.60 for the
following additional work:
1. Streets, entrance, parking lot, water, storm and sanitary
sewerin the manufactured model home area.
2. Filling over water main just east of Co. Rd. 118 (Plans
state to be done by others, not contractor).
3. One right turn lane for the manufactured model home area
and one right turn lane for the executive home area.
After renegotiating prices and reducing the amount of fill
over the oret^r -.Ain Iw lowering the nine, we have arrived at
a price of 597,794.60 for change order 02.
Along with this change order I feel we should again touch
upon the expected poor quality of the water in Meadow Oaks.
Recent toots on city water show a very small chlorine residual
at Clow Stamping where this new water oyatem will start. This
chlorino residual (.005 PPM) disappears fast when the water is
stored and no additional chlorine is added. Jar tests con-
ducted on our city water show settling and separation of the
iron and magnesium begins to occur 5 to 7 days after storage.
From these toots we have determined that this settling will
have occurred before water can reach the Meadow Oak Project
and there will be no chlorino present. This could lead to
the development of iron bacteria and smelly water. Chlorine
could be added to correct this problem, however, the water
would still have iron and magnesium particles present and
probably be discolored. If we loop the water at some later
data, we may solve the settlement problem, but there is a
strong likelihood that with tho lar uncago within the develop-
ment a chlorino residual could not be maintained in Meadow Oaks.
Bearing this in mind, I am requesting that the Council approve
installing 3 extra valves and 40 foot of 12" water main with
the project so that we may install chlorination equipment at
a later date without disturbing the now streets. Those
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Council Agenda - 4/11/83
valves would be installed at the proposed west boundary of
the plat where the water main enters the development near
the proposed park. The added cost of this wcrk is $3,300
and would be performed at the unit prices under contract.
It would not require a change order with the contractor,
only authorization from the Council. I have brought this
to your attention now as the contractor will be working
in the area within lii weeks and to cut these fittings in
after the pipe is laid would be more costly.
If per chance the chlorination station is not built, a
portion of the cost of the stubs could be recovered as
they could be used as a water service for park restrooms
and to feed a park hydrant or sprinkler system.
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OAR•SOWN•MAYERON MSOCIATES,K
Cn;,suNu,p £ngu,etvs
1_ond ,Stip d yors
April 8, 1983
The Honorable Mayor b Council Members
City of Monticello
250 East Broadway
Monticello, MN 55362
Re: Improvement No. 82-21 Meadow Oak;
Change Order No. 2
Dear Mayor and Council Members: A -
The enclosed change order has been developed in response to the
Council's decision to include additional work in Meadow Oak 2nd
Addition as part of Improvement No. 82-2. At the March 14, 1983
Council Meetinq, the developers had estimated a total of $76,000 for
the work, and our detailed take -off totals $97,794.60. The majority
of this cost difference is thought to be caused by the right turn
lanes which were not a part of the original design concept. The cost
estimate for the turn lanes is $15,892.50.
This change order is submitted for your review and approval.
Sincerely,
ORR-SCHELEN-MAYERON
6 ASSOCIATES, INC.
a(44 Q Cz
Charles A. 1,epaG P.E.
Project Engineer
CAL:nlb
Enclosure
M�
?0?1 Lost /lrirnrpur llvcnuc Suite "'38 • linnr.�pnl,c• ,t?rnrresuta 55413 6121331 8660
ORR-SCHELEN-MAYERON 8 ASSOCIATES, INC.
2021 E. HENNEPIN AVE. • SUITE 278
MINNEAPOLIS, MINN, 55413
CHANGE ORDER NO. .... 2..........
5„97, 794., 60,.... RE: City. Project 82-2
Richard.. Knutpgn_Inc ................ Contractor (Meadow Oak)
201.Trave1ers Trail
Burnsville, .14N...55337 ....................
Dear Sir (a)
Under your contract dated March 15,
............................. ID... with
.The..City of Monticellor„Minnesota................. Owner for 4t.9t..$t4tion1
S.anit.ary.. Sewer., . Wa.ter'..Kain,..Str.ee.t . Construction. s..Apy—tenant. Work.
we are authorized by Ute owner to hereby direct you to add t0 ..the contract construction
..........................
es rebr attached Plans orc� !=3t, of .quantities,,.., ThC, a�d,iLiUa.L1. work J
inc.ludea ..twp .night -tura .lanes..on. S . T. li...152
............................
.......................................... ...................... I......................
................................................................I...................I.......
wW to add toXKd4lldL?m6=)V* contract, is accordance with contract and apaeUlcatioa, the gum of
Ninety -Seven Thousand Seven HundreQ. Ninety, -Four and 60 /100 Dollars
Thera will be an eataaaltm of ......0....... days for eanpletloe.
The date of complatloa of awatleet was .7/1.. 19 .83 sad now wW be ... A .. 19 .8?..
A, ou,e of ertalml Coatroet Total AddllleeaTolal Oodurtlem Camt,aa N Data
$731,095.55 $97,794.60 524,752.50 $804,137.65
Approved .......................... 19....
Rsapaetfally Bubmltxad.
............................... I...........
Owns, (MR-SCi4ELEN4"YERON
Approved .......................... 19....
IS ASSOCIATES, INC.
........................... .............. per ��`�G�4..�L-7�7 !'!” ..
arlen A. I.epai c, 4/11/83
r_
Council Agenda - 4/11/83
7. Consideration of a Joint Powers Agreement Establishing a
Cable Communications Commission. (TE).
The ad hoc committee on cable communications has selected
Thomas Creighton as the attorney to draft the Joint Powers
Ag reement. A preliminary draft of that agreement was sub-
mitted to the four core cities and discussed with Mr.
Creighton. At that discussion meeting ,we concurred that
our initial offering would go to cities that had 500 or
more dwelling units that could potentially be serviced by
communications and that the voting powers would be based
upon numbers of dwelling units. The Joint Powers Commission
that we are establishing is the type of commission that the
members are responsible to the governing bodies of the
municipalities. The other option was to develop a commission
that would become an independent decision making body under
Minnesota Statute 238. It was our opinion that the admin-
istrators of the cities involved have good enough working
relationship with their Councils that we could use the
standard Joint Powers Agreement and be able to freely and
openly communicate with our Councils but not slow the
entire process down. I would hope for Monday evening that
a Tn�tinn M mndn, geconded and cnrried authorizinn the
City to enter into this Joint Powers Agreement, and I am
requesting that I be appointed as the City's representative
to the Cable Communications Commission.
Because there is considerable interest in the devolopment of
cable on the educational level, I am requesting that it be
made part of the record that Las a representative, be allowed
to establish an advisory panel or advisory relationship with
someone from the school district. That person or panel, while
not actually serving on the communication's commission, would
be able to contribute to the development of the request for
proposal. I agree very strongly with the school district that
cable is very important to them and to education, in general.
Howevor, because the City is the actual franchising body and
the adopter of the ordinance, 1 think as a City employee I
should be the representative rather than someono from the
school board. As noted, though, I do wish to have advice and
counsel from educators.
ALTERNATIVE ACTIONSm 1. Adopt a motion entering a Joint Powers
Agreement establishing the Cable Communication's Commission.
2. Table any action on entering a Joint Powers Agreement.
3. Appoint Eidem as reprosentativo to said commission or
appoint somoono other than Eidem to the commission.
R OUNCEBm A copy of the Joint Poworo Agreement, a copy of
tho latter from the school district.
- 7 -
MEMORANDUM
TO: City Administrators - Proposed Sherburne/Wright County
Cable Ccmmmicationa Commission
FROM: Thomas D. Creighton, Legal Oounsel
DATE: April 7, 1983 `? y
SIBJWr: Enclosed Joint and Cooperative Agreement
This office has been retained by the Cities of Big Lake, Buffalo, Elk
River, and Monticello to consult with them regarding the possible
creation of a Joint Powers Ccemission to study the feasibility of an
area -vide cable ommrnciations system. After several meetings with
representatives of those cities, the enclosed Joint and Cooperative
Agreement has been prepared recommending a cooperative study and
possible franchising effort by a comber of cities which are
geographically situated so as to make it feasible for them to discuss
the possible seaainq of cable television service for their cities.
While there are a number of other cities in the area which might soma
day avail themselves of such a service, it was reomInended by the four
cities that a Joint and Cooperative Co mission at this time be limited
to those cities with potential dwelling unit populations of five
hundred or more. While these four cities in no way intended to Dose
decisions upon your city, it was determined that it made sense to get
0
y
uw D.nc,e
STERN. LEVINE. SCHWARTZ, LIFSON. CREIGHTON & SUNIN
. r.or,.,.o..l A77ocu,wN
I
0005 SOUTH CIDAN LAKE NOAD
\\
MINNEAPOLIS. MINNESOTA SEA1e
161 E, 777-41M
EAMUEL L. ETEAN
AOEEAT M. LEVINE
M ICMAEL D. ECNWAET7
SCOTT A. UPSON
T cw^ ♦ O. CRUOMTON
AICNAAD D. suNIN
JOMN F. wAONEE
nal"' w.COMET
MEMORANDUM
TO: City Administrators - Proposed Sherburne/Wright County
Cable Ccmmmicationa Commission
FROM: Thomas D. Creighton, Legal Oounsel
DATE: April 7, 1983 `? y
SIBJWr: Enclosed Joint and Cooperative Agreement
This office has been retained by the Cities of Big Lake, Buffalo, Elk
River, and Monticello to consult with them regarding the possible
creation of a Joint Powers Ccemission to study the feasibility of an
area -vide cable ommrnciations system. After several meetings with
representatives of those cities, the enclosed Joint and Cooperative
Agreement has been prepared recommending a cooperative study and
possible franchising effort by a comber of cities which are
geographically situated so as to make it feasible for them to discuss
the possible seaainq of cable television service for their cities.
While there are a number of other cities in the area which might soma
day avail themselves of such a service, it was reomInended by the four
cities that a Joint and Cooperative Co mission at this time be limited
to those cities with potential dwelling unit populations of five
hundred or more. While these four cities in no way intended to Dose
decisions upon your city, it was determined that it made sense to get
0
Mem rartium
Page Two
a number of cities together in the same roan to discuss cable televi-
sion service to your area. It is requested that your city par-
ticipate.
'Rhe need for area -wide oamwnication on this issue has became
increasingly apparent as cable companies have begun to communicate
directly with certain of you cities regarding the providing of cable
service to you. Additionally, the cable television process, even the
abbreviated process allowed by the State, can be costly to an indivi-
dual city. by pooling your reeouroes, a number of cities could
discuss cable television and receive expert advice in the area, while
expending significantly less money in the effort:
J
7 he cmuunities which are being contacted are found in Attachment
"A' of this oommmiraticn. It is requested that you review the
attached Joint mid Cooperative Agreement to any extent you feel
necessary, and then proceed to present the agreement to your city
council for action. As soon as four ffxmftr cities have signed the
Joint Powers Agreement, the city administrator of Elk River will
proceed to call a meeting of the ea nission. You should feel free at
any time to mmunicate with this office regarding any questions you,
your city om=il, or your city attorneys might have regarding the
attached agreement. The dochamnt is modeled after a d= mnt which
has worked successfully for virtually all of the major suburbs of the
'Nin City area. J
D
C
Memorandum
Page Three
Should your city rot be able to timely adopt the Joint Powers Agreement
prior to the calling of the first meeting of the Commission, you will
still be notified of that m=eting in the hopes that you may attend,
discuss the Joint Powers Commission with other cities present, and
still he exposed to the initial discussions regarding cable television
in you area. You will of course not be a member of the Commission
with all associated rights and privileges if you have not signed the
Joint Powers Agreement and forwarded it to the City Administrator of
Elk River. It is estimated that the initial contribution should cover
the expenses through the point where a cable ompany could be iden-
tified who is willing to provide service. If a franchise ordinanne is
eventually developed and granted by your city, the successful cable
company will be required to reimburse your city for all such contribu-
tions and expenses.
Again, if you have any questions or discussion regarding the Joint and
Cooperative Agreement, please feel free to camunicate with rw at any
time. We look forward to hearing from you in the near future.
v
3
6
A
Sherburne/Wright County Cable Communications CmOUSsion
JODM AND CCIOP£RETW AQdT11UiP
I. PARPIES
'fie parties to this agremmt are governmental units of the State of
Kinnesota. Ibis agreement is aide pursuant to Minnesota Statutes Section
471.59, as amended.
it. GDOMM PURPOSE
POSE
Oanma►ities in the Sherburne and Wright County area, including the
parties to this agreement, are being requested to franchise the operation of
cable television systems. It is of the utmost importance for cm=mities to
attempt to deal with the franchising process and with subsequent regulation of
cable television in a manner best serving the public interest. .
This will necessitate an in-depth study as to what would be the best
procedure for the parties to follow in grantir3 fraru:iiisea and aministering
them.
The general purpose of this agreement is to provide an organization
which can coordinate for the parties to this agreement an approach to the
franchising and regulatory process. By joint and cooperative action the parties
can share in the expense of such study can develop a uniform approach to the
matter of franchising, and can explore the possibilities of joint or onmion
action an a permanent basis.
III. NM
The name of the organization is the Sherburne/Wright County Cable
Co;munications Commission (SICd).
N. IPFMICN CP TERMS
soction 1. For the purposes of this agreement, the terms defined in
i
this Article shall have the meaning given them.
a
y_
Section 2. "oc mission" means the Board of Directors created pursuant
to this agreement.
section 3. 'Ctx=il" means the governing body of a member.
Section 4. "Grantee" means the person to whom a franchise has been
granted by a member.
Section S. 'Member" means a municipality which enters into this
agreement.
V. MEMWRS rP
Section 1. The municipalities of Annandale, Big make, Buffalo,
Cokato, Dayton, Delano, Elk River, Monticello, Rockford, St. Michael and
watertcwn, are eligible to be members of the Commission.
�- Section 2. Arty municipality desiring to became a member shall execute
a copy of this agreement and conform to all requirements herein.
Section 3. The initial members shall to those members who bc<x me menr
bers on or before May 30, 1983.
Section 4. Municipalities desiring to became messbers after May 20,
1483, may be admitted by an affirmative vote of two-thirds (2/3) of the vote of
the members of the Commission. The Commission may by resolution impose con-
ditions upon the admission of additional m, ' ca.
VI. mrscrm; VCATIiG
Section 1. Each party &ALL be entitled to one (1) director to repro -
sent it on the caasrnission. Each director is entitled to ane (1) vote for each 800
dwelling units or fraction thereof of the municipality represented by the
directors provided, however, that each director shall have at least one (1) vote
arri no director shall have more than four (4) votes. Fbt purposes of this section,
_2.
dwelling units of a governmental unit shall be that number determined pursuane 7-2
J
to the most recent census or yearly estimation certified by a Member_ Prior to
December 31 of each year, the Secretary-IPreasurer of the Cammission shall deter-
mine the number of dwelling units of each Member in accordance with this section
and certify the results to the chair.
Section 2. A director shall be appointed by resolution of the Council
of each member. A director shall nerve until a successor is appointed and
qualifies. Directors shall serve without compensation from the Commission, but
nothing in this section shall be coststrued to prevent a municipality from reim-
bursing expenses of its director or otherwise compensating its director for ser-
vice on the Commission if sudn compensation is otherwise authorized'ty law.
Section 3. The Commission, in its by-laws, msy provide for the
appointment of alternate directors and prescribe the extent of their powers and
duties.
Section 4. A vacancy in the office of director will exist for any of
the reasons set forth in Minnesota Statutes Section 351.02, or upon a revocation
of a director's appointment by a memftr duly filed with the Commission.
Vacancies shall be filled by appointment for the unexpired portion of the term
of director by the Council of the Member whose position on the Board is vacant.
Section 5. '[there shall be no voting by Proxy, but all votes must be
cast by the director cc the duly appointed alternate at a Commission meeting.
Section 6. A majority of tho authorized votes of the Commoissicn shall
constitute a quorum, but a smaller mmmber my adjourn from time to time.
Section 7. A director stall rot be eligible to vote an behalf of the
director's municipality during the time that it is in default an any oontribr-
tion cc payment to the Commission. Ducting the existenoo of such default, the
-3-
0
vote or votes of such Member shall not be Counted for the Purposes of this
agreement.
VII. EFEECfIVE DA7E; mmTrN6; ELEcrim IIF omam
Section 1. A municipality may enter into this agreement by resolution
of its Council and the duly authorized execution of a copy of this agreement by
its proper officers. Thereupon, the clerk or other appropriate officer of the
municipality shall file a duly executed copy of this agreement, together with a
certified copy of the autorizing resolution, with the City Administrator of the
City of Elk River, Minnesota. Time resolution authorizing the execution of the
agreement shall also designate the first director for the municipality on the
Commission, along with said director's address and phone number.
Section 2. This agreement is effective on the date when executive
agreements and authorizing resolutions of four of the municipalities named in
Article V, Section 1 have been filed as provided in this Article.
Section 3. within thirty (30) days after the effective date of this
agreement, the City Administrator of Elk River shall call the first meeting of
the Comnission which shall be held no later than fifteen (15) days after eurh
call.
Section 6. The first meeting of the Commission shall be its organiza-
tional meeting. At the organizational meeting, the Cartmission shall select from
among the directors a chair, a vice -chair, a secretary -treasurer, and appoint
any staff support necessary to coordinate the activities of the Commission and
to draft all necessary Ccrnmission domzments.
Section 5. At the organizational meeting, or as soon thereafter as it
may reasonably be done, the Commission shall adopt by-laws governing its proce-
dures including the ti;m, place, notice for and frequency of its regular
-4-
meetings, proceduret for calling special meetings, and such other matters as are .3
required by this agreement. The Commission may amerd the by -leas from time to
tin*--.
IX. - POHMS AND CVrMS CP THE O ""MIM
:lection 1. The pcerers and duties of the Ocramiasion shall include the
powers set forth In this Article.
Section 2. The Camtission coy choke such contracts and take such other
action as it deema necessary and appropriate to amanplish the general purposes
of the organization.
Section 3. The Commission shall undertake to identify matters of com-
mon concern to the Members and shall reccmrerd a averse of action to be pursued
by the Meubers in the granting and enforcement of cable television franchises.
In that connection it shall consider and make recmnendations on whether the
MenAers should have uniform ordinances, whether they should undertake to grant a
franchise to the same party, and whether they should establish a cntinuug orga-
J
nizaticn to administer and enface any franchise or franchises which are granted
by the Metbers.
section 4. its Coomission may prepare and rsuitable docu-
ments for use in the granting of feadhises by the Members. In the event that
the Members determine to porous a onnnon cc a joint course of action in the
grafting of franchises the C?amnission tiny assist in the carrying out of such
joint cc owes course of action.
Section S. The Ccimaission may apply for and use grants, enter into
agrecments required in oorvsection therewith and hold, use and dispose of money
or property received as a grant in eoccrdance with the terms thereof.
section 6. Tho M mission shall make an euunual financial accounting
s
and report in writing to the Members. Its books and records shall be available '
for and open to examination by the Members at all reasonable times. The
Comoission shall establish its armrmual budget as provided in this agreement.
Section 7. The Commission may delegate authority to its executive
committee. Such delegation of authority shall be by resolution of the
Commission and may be conditioned in such manner as the Commission may deter-
mine.
Section 8. The Commission may exercise any other powers necessary and
incidental to the implementation of its powers and duties.
Section 9. The Commission may conduct such research and investigation
and take such action as it deans necessary, including participation and
appearance in proceedings of State and Federal regulatory, legislative or admi-
nistrative bodies, on any matter related to or affecting cable oomm nication's
levels of service, rates or franchises.
(�
X. CFFICF.RS
Section 1. The officers of the Commission shall consist of a chair, a
vice -chair and a secretary -treasurer.
Section 2. A vacancy in the office of chair, vice -chair, or
secretary -treasurer shall occur for any of the reasons for which a vacancy in
the office of a director shall occur. The term of each officer shall be two (2)
years. Vacancies in these offices shall be filled by the Commission for the
unexpired portion of the term.
Section 7. The three officers shall all be the executive
committee.
Section 4. 74me chair shall preside at all meetings of the Commission
and the executive ommraittee. The vice -chair shall act as chair in the absence
, J
of the chair.
section 5. The secretary -treasurer shall be responsible for keeping a
record of all of the proceedings of the Commssion and executive committee, for J
custody of all funds. for the keeping of all financial records of the Commission
and for such other matters as shall be delegated by the Commission. The
Commission may require that the secretary -treasurer post a fidelity bond or
other insurance against lose of Commission funds in an amount approved by the
Commission, at the expense of the Commission. Said fidelity bond or other
insurance may cover all persons authorized to handle funds of the Commission.
Section 6. The Commission nay appoint such other officers as it deems
necessary. All such officers shall be appointed from the mmhamberahip of the
Commission.
XI. FIIS WIAL MATrM
Section 1. The fiscal year of the Can iasion is the calendar year.
Section 2. Commission funds may be expended by the Commission in
accordance with the procedures established by law for the expenditure of furls
by Minnesota statutory cities. Orders, checks and drafts must be signed by any
two of the officers. other legal instruments shall be executed with authority
of the Commission, by the chair and secretary—treasurer. Oontracts shall be let
and purchases made In aceordanos with the procedures established by law for
Minnesota statutory Cities.
Section 3. The financial contributions of the Mwbers In support of
the Comnission shall be in direct proportion to the number of votes to which the
director representing the Member on the Commission is entitled. The initial
contribution of each Member for the remainder of calendar year 1983 shall be
$1,000.00 per vote cin the Commission. The initial contribution shall be paid on
-7-
..3
or before May 20, 1983. This amount shall be used in part by the Commission to
j pay all costs and expenses incurred in the establishment of the Cartnission.
l Member contributions for subsequent years, if any, shall be established as
hereinafter provided.
Section 4. A proposed budget for the ensuing calendar year shall be
formulated by the Ca®ission and submitted to the Members on or before August 1
beginning in 1983. Such budget shall be deemed approved by a Member unless,
prior to October 15 preceding the effective date of the proposed budget, the
Member gives notice in writing to the Commission that it is withdrawing from the
Commission. Final action adopting a budget for the ensuing calendar year shall
be taken by the Commission on or before November 1 of each year. The
total contribution from Members provided for in the final budget.shall be
divided and assessed to each Member proportionally according to the number of
votes on the Commission for the ensuing calendar year. MParirr contrihitions
shall be made pursuant to the timetable included in the budget.
Section 5. Any Member may inspect and copy the Ccnmission books and
records at any and all reasonable times. All books and records shall be kept in
accordance with normal and accepted accounting procedures and principles used by
Minnesota statutory cities.
t
XII. WRATICN
Section 1. The Caemisslon shall continue for an indefinite term
unless the number of Manbers shall beome less than four (4). The Commission may
also be terminated by mutual agreement of all of the Mo rs at any time.
Section 2. A Member may withdraw from the Coumisslon by filing a wri-
ten notice with the secretary -treasurer by Octabor 15 of any year giving notice
of withdrawal at the end of that calendar years and mmbership shall continue
a
until the effective date of the withdrawal. A notice of withdrawal may be 'y
rescinded at any time by a Member. If a Member withdraws before dissolution of
the Cmmission, the Member shall have no claim an the assets of the Co mission. J
A Member shall rot withdraw until the Member's financial contribution for the
calendar year is paid in full.
Section 3. In the event of dissolution, the Oommissicn shall determine
the measures neoessary to affect the dissolution and shall provide for the
taking of such measures as promptly as circumstances permit, subject to the
provisions of this agreement. Upon dissolution of the Commission all remaining
assets of the Commission, after payment of obligations, shall be distributed
among the then existing Merbers in proportion to the number of their votes an
the Commission at the time of dissolution and in accordance with procedures
established by the Commission. The Commission shall continue to exist after
d--sclu:ticn. for cosh p-riad, no lemrler than six rr*mths, as. is mwrnssary to wind
up its affairs but for no other purpose. J
IN W1IWM WKEiECP, the undersigned municipality has caused this
agreement to be signed on its behalf this day of ,
1983.
WMEMD BY of
Syr
Me
Sym
Its
Piled in the offioa of the Administrator of the City of 21k River this
day of , 1983.
0
INITIAL
0DNMMUCION
$1,000
2,000
3,000
1,000
2,000
2,000
3,000
2.000
2.000
1.000
1,000
0
AMCIEIf A
PCPULATION
DWELLING
VOTES
UNITS
1/800 DU
Annandale
1568
574
1
Big Lake
2210
810 (est)
2
Buffalo
4560
1623
3
Cokato
2056
770
1
Dayton
4070
1177
2
Delano
2480
849
2
Elk River
6785
2108
3
Monticello
2830
958
2
Rockford
2408
805
2
St. Michael/
1519
437
1
Albertville
Watertown
1818
654
1
INITIAL
0DNMMUCION
$1,000
2,000
3,000
1,000
2,000
2,000
3,000
2.000
2.000
1.000
1,000
0
BOARD OF EDUCAI ION
Bernard Ki hl, Cheamon
Don Doren, Clark
J—. Ha,b t, Trn
i Larcy CM.1no. Oi'mw'
Jay Morrell. Oiraclor
Welham SelWh, Oirmlor
INDEPENDENT SCHOOL DISTRICT No. 882 a
Sheldon D. Johmon, Superintendent
Telephone 295-5184 Mchael ADMINISTRAt10N
MONTICELLO, MINNESOTA 55362 AW Banedetto
Suns /Imlroctinn 295.5184
Alarch 28, 1983
Ala. Tom Lidera
City Adminia Llaton
City 06 Munticetto
Monticette, MN 55362
Dean Ah. Eidw:
R,Chwd Waren
Bminen Manager, 2955184
Lvndon Sonju
Senior High Prircipal, 295,2913
RWWI VOec k4
Junior High Nim,pel. 295,5191
KermH Bonw
ElMnemmy Prlrcipel, 295.293e
Edward Gemka
Elemenlary Principal. 295,5184
R-C11a1d Fne
Athletic Oirena, 2952913
Paul 2emka
Soeciel Edrrauon Dug:rd. 2955185
Duane GarM
Community Ea-ai n Drroctor, 2952915
Candace Berson
Aar. Community Ed-. Dimmor, 2952915
At the Alanch 14, 1983 meeting 06 the Board o6 Education 06 Ltdepelldent
School Vi•ettict 0682, Alonticetto, Minlneaota, .the genennt 6ubjectt 06
tete-conminicaticas appealed on the agenda. Ki. W.iU Kitchen, Media
Speciatiet 64om the Bnnhcuo PubUc Schooth, Btaluun, ALLuleaota, was lxeaen.t.
to tend thl,ia discilsaian.
The main puAWse o6 tete-communi,cdtiorls being diacLaScd tuts due to the
6act that the commuLi,ty 06 Monticetto, though your e66on,te and thoee
o6 the City CounciR, indicated that cable tet.evie•i.on and alt its
poasibiUtiea witt become a uoti.ty in our cotlmt itzty within the near
6utu'Le. Becauac 06 the .impact that cable tetevie.i.on can have on
education, the achoot board is cttnemet.y inteAeated 61 thi.5 devetopment.
Theae6o•te, a motion waa aubrnit.ted, duty seconded, and unojubl ouaty
approved necommending to the City Councit that an adminiet4ato•1 61tom
Independent Schoot U.i.etnic.t 0882, Monticetto, Minnesota, be inctuded
oil the. tocat cable tetev bion commission whenever auch a commisaion
Z6 established within ow community. The membene o6 .tile 8oand o6
Education heel that thus woutd be the beat uay to inztbte that the needy
o6 the cduca.tiollat community wilt be addteesed.
Please beet Gree to contact me when the City Council u ncady to
wtabtish this commission.
Sincctclt /
rr+s�—r✓
S. D. olu an
SupeAintenderst
SDJ/aa
4�
J
Council Agenda - 4/11/83
8. Report by the Oakwood Block Sub -Committee. (TE).
About April 1st, I received a letter from Warren Tiegen of Security
Federal making a new offer for one-half of the Oakwood Block, at
one-half of the City's asking price. The terms of their offer are
fairly clearly stated in the letter attached as a reference.
I immediately relayed the letter to Jack and Ren and we met to
discuss the proposal on Tuesday, April 5th. Prior to our meeting
on the 5th, two gentlemen came in to talk to me about negotiating
on the Oakwood Block. The gentlemen who were in turned out to be
parties involved with the application for the establishment of
the National Bank of Monticello. I advised them at that time
that we were in the process of negotiations with another finance
institution and that at least for the time being we would listen
to the negotiations and the offers that were being made in order
to continue our negotiations in good faith. They understood and
said that while that was their choice site, they would continue
to shop for sites and hopefully would like to be kept informed
as to the City's progress in its negotiations with Security
Federal.
Jack, Ken and I then discussed the Security Federal offer and
the pending application of the National Bank. It was the con-
clusion of the committee that right after the notice formally
snr*mars in th,. naner, T call Warren Tienen and ask if that makes
r` any difference to him in terms of their growth plans. We also
noted that oven though the property next to Security Federal
is municipal parking now, that does not preclude realignment
of public parking lots, relocation of the Fire Hall and possible
expanded development by Security Federal at its present site.
Those were all topics that were to be mentioned to warren
Tiogen when I spoke with him. Mr. Tiegen affirmed very strongly
in light of the announcement of the now bank that he wants the
Oakwood Block. Ito is not interested in expanding at hie
present site, and, in fact, if forced to do so will buy the
entire block at the $300,000 asking price. Ito feels more
convinced than over that this is the site he wants in light
of the National Bank application. It is his understanding
that he had until April 15th to respond to the City's request
for $300,000 for the entire block, that being in the public
record, and that he will exercise the right to purchase at
that price right up until the 15th if the City should try to
chango its offer at this time. I informed him that the entire
matter would be roportod to the Council and that perhaps a
decision will be made effective the 11th.
RUPRENCES: A letter from Security Federal stating its noweat
offer.
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security federal s 8 bar, assookdw
m ...� ....,. ten. ee. m . " c.".e ... eno.. ia.ri n.•.+ao . +......oau. a,n avaao
Warren W. Tergen
March 29, 1983
Mr. Thomas A. Eidem
City Administrator
250 Cast Broadway
Route 4, Box 83A
Monticello, MN 55362
Dear Mr. Eidem:
The purpose of this letter is to redefine Security Federal's
interest in the "Oakwood Block" in the City of Monticello.
In accordance with what we perceive to be the Council's
position, we would like to acquire the East S of the block.
We believe this would be the East 4 'of Lot 3, the East S of
Lot 8, all of Lots 4, 5, 6, and 7 of Block 32 of the Town of
Monticello.
We would offer the City of Monticello, One Hundred Fifty
Thousand Dollars ($150,000.00) based on a contractual
agreement with $75,000.00 down, and $75,000.00 on
January 10, 1984, at which time the City of Monticello would
deliver clear title to the parcel.
tie trust that this proposal is in tune with the Council's
desires, and assumes mutual agreement of "proper"
development guidelines. It is this associations' desire
that a well. planned, orderly development occur in this
block, and to be a party to that planning.
If you have any questions, please contact me, I remain,
Sincerely yours,
Warren W. Teigen
President 6 CEO
WWTlmjv
m
Council Agenda - 4/11/83
9. Authorization for the Preparation of Plans and Specifications
for the Gould Brothers Service Road Overlay. (is).
This r3ad was due to be overlayed in 1982 as part of our com-
prehensive street maintenance plan. we were, however, able
to get another year out of this pavement by keeping the cracks
well sealed.
This road is approximately 1,848 feet long and 22.5 feet wide.
I am propsosing a 15" or 2" overlay and regraveling the
shoulders. I am also looking into the possibility of using a
special fabric to reduce reflective cracking.
we have budgeted $17,000 for this improvement. I am proposing
to draft the plans and specifications myself and also perform
the inspection. I feel confident the project can be completed
within this budgeted amount as bids are currently very com-
petitive.
C
=;JC
L4ffi
Council Agenda - 4/11/83
10. Consideration of an Application for a 3.2 Beer On -Sale License -
Applicant - Softball Leaque. (TE1.
This is an annual request to sell beer at the softball fields
for the simmer months. As in the past, we will require the
appropriate bonds and insurance and we will prorate the annual
fee to cover all of the months that they will be serving beer.
If their request for a license is approved on Monday night, we
will process the formal application blank along with the insur-
ance certificate and fee collection.
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