City Council Agenda Packet 05-09-1988AGENDA FOR 791E MEETING OF THE CITY COUNCIL
Monday, May 9, 1988 - 7:30 p.m.
Mayor: Arve A. Grimsmo
Council Members: Fran Fair, Bill Fair, Warren Smith, Dan Blonigen
1. Call to Order.
2. Approval of Minutes of the Regular Meeting Held April 25, 1988.
3. Citizens Comments/Petitions, Requests, and Complaints.
4. Consideration of Readvertising for pump House Over Municipal well V.
S. Consideration of Redecorating Clouncil Chambers.
6. Adjournment.
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MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, April 25, 1988 - 7:30 p.m.
Members Present: Arve Grimsmo, Fran Fair, Warren Smith, Dan Blonigen
Members Absent: Bill Fair
2. Approval of Minutes.
Motion was made by Warren Smith, seconded by Dan Blonigen, to approve
the minutes of the regular meeting held April 11, 1988. Motion carried
unanimously.
3. Citizens Comments/Petitions, Requests, and Complaints.
Pat Faltersack, resident of the Meadow Oaks Subdivision, voiced his
concern regarding the low water pressure that he has been experiencing
at his home. Faltersack asked what is being done to remedy the water
pressure problem in Meadow Oaks. City Engineer, John Badalich,
responded by saying that the City is working on resolving the problem
through development of a new water tower or reservoir to be located on
the Monte Club Hili. Badalich informed Faltersack that if all goes
well, the problem should be resolved when the new water storage facility
comes on line around August, 1989.
Mr. Faltersack also outlined his concerns regarding the poor condition
of the railroad tracks that pass by Meadow Oaks. Faltersack observed
that the condition of the tracks is a problem in light of the fact that
trains using the tracks carry nuclear waste material periodically.
Council responded by directing Gary Anderson to investigate the matter
and update Council and Mr. Faltersack with his findings.
0. Public Hearin on a Proposal to Issue Industrial Development Refunding
Revenue Bonds - Clow Stamping Company.
The public hearing was opened on said agenda item. Representatives of
Clow Stamping Company were present. There being no input forthcoming
from the public regarding this matter, the public hearing was closed.
5. Consideration of Adopting a Resolution Providing for the issuance of
Industrial Development Retuning Revenue Bonas - Clow Leasing and Clow.
Stamping Company.
Rick Wolfsteller informed the City Council that the City's Bond Counsel,
Holmes and Graven, has been supplied with all the information and
documents pertaining to this refunding issue and has indicated that all
negotiations are appropriate and that the City can adopt the resolution
of approval without any financial exposure. He went on to say that the
City of Monticello has not accrued any coat associated with this bond
Council Minutes - 4/25/88
refinancing and reconmrended that the resolution be duly adopted by '
motion and a second. After discussion, motion by Warren Smith, seconded
by Fran Fair, to adopt Resolution 88-9, which is a resolution providing
for the issuance and sales of Industrial Development Refunding Revenue
Bonds pursuant to Minnesota Statutes . Section 469.152 to 469.165, to
provide funds for refinancing of industrial development project on
behalf of Clow Leasing and Clow Stamping Company, Inc. See.
Resolution 88-9.
Consideration of a Resolution Approving Plans and Specifications for
Streetscape Project and Authorizing Advertisement for Bids.
Geoff Martin of Dahlgren, Shardlow, and Uban, outlined the content and
cost estimates associated with the plans and specifications for the
Streetscape Project. Martin reported that the cost estimaces for the
base bid on this project are estimated to be within the budget. The bid
specification has been designed to provide the City with flexibility in
assigning extras if the bids for supplies and labor come in lower than
anticipated. After Martin's summary of the anticipated costs, Council
discussed the natter. It was determined by Council that tree guards
were an important part of the project. In addition, a discussion of the
color of the fixtures was discussed. A final color for the fixtures was
not determined at this time.
There being no further discussion, motion was made by Fran Fair to
approve plans and specifications for the Streetscape Project and
authorize advertisement for bids. Motion seconded by warren Smith.
Voting in favor was Arve Grimsmo, Fran Fair, Warren Smith. Opposed:
Dan Blonigen. See Resolution 88-10.
Consideration of Adopting a Resolution Setting the Sale of G.O.
Improvement Bonds for Streetscape Project and County Road 39 East
Projects.
Jerry Shannon of Springsted was present to discuss the terms and
conditions of the sale. Under consideration was a proposal to purchase
$1,540,000 in General Obligation Improvement Bonds. The funds would be
used to finance the Streetscape Project, East County Road 39, and would
also include street improvements at the Dundas Circle and Oakwood
Industrial Park, and drilling and setting up of two new wells in the
city in the Oakwood Industrial Park. The original bond sale was
modified when it was discovered that the cost for installing well 14
will be $69,000 more than the original projected cost. Due to that
change, the bond amount was raised to $1,625,000. A discussion of the
quality of the water expected from well 03 ensued. It was determined
that any future action on well 14 should be forestalled pending final
results on water quality and quantity in well il. Council decided to
bond for well p4 with the understanding that well 14 may not be
constructed at this time. Councilmember Blonigen noted that he is
opposed to the purchase of the bonds with the inclusion of the cost of
Streetscape in the bond issue. - 1
Council Minutes - 4/25/88
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N. There being no further discussion, motion by Fran Fair to adopt a
resolution setting the sale of General Obligation Improvement Bonds for
Streetscape Project, County Road 39 East Project, and other city
projects in the amount of $1,625,000. Motion seconded by Warren Smith.
Voting in favor was Warren Smith, Arve Grimsmo, Fran Fair. Opposed:
Dan Blonigen. Motion passed. See Resolution 88-11.
8. Consideration of Variance Appeal to Allow a Loading Berth to be
Constructed in the Public Right -of -Way Setback Requirement - Applicant,
Automatic Garage Door Company.
Staff reviewed the recommendation of the Planning Commission to deny a
variance as proposed. It was the position of the Planning Commission
that granting this variance would allow the parking of a truck in the
City right-of-way at the entrance to a driveway, thereby creating a
public safety hazard. Council concurred with the recommendation of the
Planning Commission at which time representatives from Automatic Garage
Door Company indicated a willingness to set back the loading berth an
additional 10 feet, which would be sufficient room to allow parked
trucks to load and unload without sitting on the public right-of-way.
Council accepted this proposal and granted a variance which would allow
Cedar Street to be used as maneuvering space required for trucks moving
into position to be loaded and unloaded. The variance was granted
because Cedar Street is not a busy street and because the use of the
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loading berth occurs only once a week.
Motion made by Dan Blonigen to grant a variance allowing Cedar Street to
be used as maneuvering space for the loading and unloading of trucks
associated with Automatic Garage Door Company. Motion seconded by
Warren Smith. Motion passed unanimously.
9. Consideration of Concession Building Costs and Authorization to Proceed -
NSP Softball Fields.
Council reviewed the bids as submitted. Motion made by Warren Smith to
award the concession stand construction bid to lowest bidders as
outlined in agenda supplement at a total cost of $30,222. Successful
bidders include Paul Hoglund, burnish block, $3,9501 Country Lumber,
$5,798; Dayle veches, roof labor, $1,950; The Plumbery, plumbing,
$6,574; materials, $11,796.62; electrical inspection, $75. Motion
seconded by Fran Fair. Voting in favor was Fran Fair, Warren Smith,
Arve Grimsmo. Opposed: Dan Blonigen. Motion passed.
10. Consideration of Constructing Well 04.
Item #10 tabled pending additional information regarding the quality and
quantity of water to be available at the well p3 site.
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Council Minutes - 4/25/88
11. Consideration of Allowing Lions Club to use Ellison Park for July 3rd
Celebration.
Motion by Fran Fair to allow Lions Club to use Ellison Park for July 3rd
Celebration. Motion seconded by Warren Smith. Motion passed
unanimously.
12. Consideration of Granting Seasonal 3.2 Beer License to the Monticello
softball Association.
Motion made by Fran Pair, seconded by Warren Smith, to approve the
issuance of a seasonal 3.2 beer license to the Monticello Softball
Association. Motion carried unanimously.
13. Consideration of Bills for the Month of April.
Motion was made by Warren Smith to approve payment of bills for month of
April. Motion seconded by Fran Pair. Motion passed unanimously.
There being no further discussion, the meeting was adjourned.
Respectfully submitted,
teff 'Neill
Assistant Administrator
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Council Agenda - 5/9/88
o. Consideration of Readvertising for Pumps House Over Municipal Well #3.
W .S.)
A. REFERENCE AILD BACKCROUND:
At the April 11 meeting, the Council authorized completion of well #3.
During the final test pining of the well last week, we took additional
samples to compare with the results from the test well located near
well #3. The following is a tabulation of the recent results.
Test Well City Well #2 Downtown Well #3
Iron 0.34 mg/liter 0.09 mg/liter 0.14 mg/liter
Manganese 0.90 mg/liter 0.66 mg/liter 0.84 mg/liter
Calcium Hardness 20.3 mg/liter 21.9 mg/liter N/A
As can be seen by the above results, the iron has dropped off
significantly. The difference may be due to the configuration of
construction between the test well and the actual municipal well; or we
may have been getting iron off the casing in the test well, as it was
only pumped for a short period of time. The manganese, however, has
stayed very near the same level and is our most concern. After we
received these results, I met with Mr. Mike Paulson of Feedrite Controls,
Inc. They are the people who supply us with polyphosphates and other
chemicals for water treatment. The new results indicated a slightly more
favorable treatment capability with chemicals. The state of Minnesota
Health Department allows only a maximum of 10 ppm of polyphosphates to be
injected into the water supply at each well location. Mr. Paulson
estimated we would need very near 9 ppm to keep the manganese and iron in
suspension as found in well #3. This floes give us a 1 ppm cushion should
some slight changes occur. This indicates that we could use municipal
well #3 on a regular basis. There is always the possibility that we
could increase the dosages at wells 41 and 02 to the maximum of 10 ppm if
absolutely necessary. At those locations, we are currently below 7 ppm.
Now with the good news it usually follows that there is also some bad
news. In this particular case, the had news is the quantity of water
that we will be able to get from municipal well 13. The test pumping
indicated that the well pumped sand free at 750 gallons per minute. At
this pumping capability, however, the draw down was enormous and not
quite stable losing an additional i foot over an 8 -hour period of time.
As I understand it, it is the recommendation of the City Engineer and his
staff that we pump the well at no more than 600 gallons per minute. The
estimated draw down is about 110 feet with a pumping water level of about
145 feet. John Badalich may have some additional information Monday
night with more precise figures.
Because of the pumping depth of the water and the smaller capacity of the
well, it appears more cost effective at this time to go with a
submersible pump rather than a deep well turbine pump with all the drop
T casing and shafting and such. This capacity is significantly less than
the original 1,500 gallons per minute we were hoping for, and the 1,000
gallons per minute we were expecting as of our April 11 meeting.
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Council Agenda - 5/9/88
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At this time, we would like the Council to consider going forward again
with the construction of the pump house and pump installation. we would
expect some minor changes to the pump house so that the chemical
treatment of additional wells could be done within the confines of this
same building. Mr. Badalich has indicated that the modifications to pump
house $3 would cost approximately $12,000 as per his April 25, 1988,
preliminary cost estimate and feasibility report for well t4.
As you may recall, the main control system was omitted from the original
pump house plans and specifications because OSM had not completed the
design of the control system. At this time, I do not know whether the
control system could be completed in time to readvertise with the pump
house. Mr. Badalich may have more information at Monday evening's
meeting regarding this matter.
B. ALTERNATIVE ACTIONS:
1. The first alternative would be to authorize readvertisement for bids
for the pump house construction and pump installation at municipal
well A3. This would include the modifications as necessary to allow
additional wells such as 94 to be hooked into this building at a
later date.
2. The second alternative would be to include the water system controls
in the above alternate Al if they can be completed on time.
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3. The third alternative would be to not build the pump house as planned
to feed additional wells. This does not appear to be practical, as
at 600 gallons per minute we are extremely limited and do not have
adequate capacity at peak times should something happen to one of our
municipal wells or pumps downtown; and it is very likely that
additional wells will be needed to be hooked into this pump house.
(This drilling of a 4th well will be brought to the Council at the
next meeting.)
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C. STAFF RECOMMENDATIONS:
It is the recommendation of the Public works Director that the Council
authorize readvertisement for bids for the pump house construction and
pump installation as outlined in alternative A1.
D. SUPPORTING DATA:
Resolution for adoption.
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RESOLUTION 88-12
RESOLUTION APPROVING REVISED PLANS AND SPECIFICATIONS
FOR PU*HOUSE AND ORDERING ADVERTISEMENT FOR BIDS
WHEREAS, pursuant to a resolution adopted by the Council on January 11, 1988,
the City's Consulting Engineer, Orr-Schelen-Mayeron 6 Associates, has prepared
plans and specifications for the improvement of a new pumphouse, and
appurtenant equipment and has presented such plans and specifications to the
Council for approval;
WHEREAS, pursuant to a resolution adopted by the Council on March 14, 1988,
approving said plans and specifications for the pumphouse and appurtenant
equipment and authorized the advertisement for bids;
WHEREAS, the advertisement was cancelled to enable the City's Consulting
Engineer to make revisions to the plans and specifications to accommodate an
additional well;
WHEREAS, the City's Consulting Engineer, Orr-Schelen-Mayeron 6 Associates, has
prepared revised plans and specifications for the improvement of a pumphouse
and appurtenant equipment and has presented such plans to the Council for
approval;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MONTICELL0, MINNESOTA:
1. Such plans and specifications, a copy of which is on file at City
Hall, are hereby approved.
2. The City Administrator shall prepare and cause to be inserted in
the Monticello Times and in the Construction Bulletin an
advertisement for bids upon the making of such improvement under
such approved plans and specifications. The advertisement shall be
published for 21 days, shall specify the work to be done, shall
state that bids will be received by the Administrator until
(%'Do 0— a.m. on 4l,-Vs -T of I --u' , 1988, at
which tLme they will be pubiiicly opened in the Council Chambers of
the City Hall by the City Administrator and Engineer, will then be
tabulated, and will be considered by the Council at 7:30 p.m. on
n, f 4 j i ra , 1988, in the Council Chambers. No
bids will be considered unless sealed and filed with the
Administrator and accompanied by a cash deposit, cashier's check,
bid bond, or certified check payable to the City of Monticello for
5% of the amount of such bid.
3. Springsted, Inc., is hereby designated the financial consultant for
the financing of this public is¢novement.
Adopted this 9th day of May, 1988.
City Administrator
Mayor
Council Agenda - 5/9/88
5. Consideration of Redecorating Council Chambers. (R.W.)
A. REFERENCE AND BACKGROUND:
As part of the 1987 Budget, $2,500 was budgeted for redecorating the
Council Chambers to include new wallpapering, etc., and an additional
$1,600 was placed in the budget for relighting the Council Chambers. The
$1,600 for relighting was primarily necessary to enable the Council
Chambers to be set up for a studio system for televising Council meetings
on cable t.v. The lighting currently in the Chambers would be
insufficient for cable televising and would require either changing the
present lighting system to direct lighting or installation of additional
flood light system.
The primary purpose of this item at this time is to receive some
direction from the Council as to how the staff should proceed with
redecorating of the Council Chambers. If the main focus of the
remodeling is to be on the north wall, the burlap wallpaper can be
removed along with the orange cloth insert and redecorated. John Simola
and myself had Mr. Richard Naaktgaborn, a wallpaper contractor, look at
the Council Chambers, and he recommended the existing burlap be removed
along with the orange panels and new wallpaper be applied. A suggestion
was that the orange area be replaced with a wood paneling to match the
wood decor in the Council Chambers as a possibility. Mr. Naaktgaborn
will be providing an estimate for the wallpapering portion; but the
Council may have other ideas or suggestions on what area should be
decorated. Although the carpet appears to be in excellent condition,
naturally the option exists to replace the carpet at this time if a
different color scheme is desired. Although it wasn't specifically
budgeted for in 1987, it may be the appropriate time to consider
replacing the Council members chairs with possibly a different color
scheme being used. Other improvements that could be considered if
desired is the installation of a pull-down projection screen. If a basic
direction is received, the staff could solicit bids or quotes from
various contractors for the remodeling, including carpet if desired, and
new furniture. At this time, the staff is not certain how far the
remodeling project should go and thus would like some direction from the
Council on what they would like to see improved. If there is interest in
the Council in televising the meetings on cable t.v., additional lighting
or the entire replacement of the lighting system would have to occur. To
adequately accommodate cable presentations, a studio system consisting of
three cameras, a VCR, and related equipment could cost between $8,000 and
$10,000. Ten Thousand Dollars was also budgeted in 1987 for this
possibility. And if there is interest by the Council in pursuing this,
Cable Commissioner, Barb Guffey, would be able to provide better coat
estimates. In redecorating of the Council Chambers, this may also be the
time to consider replacing the chairs for the public. Although the
chairs are certainly functional, we do use a couple different designs
along with folding chairs when necessary, and it may be more appropriate
to havo one type of chair if desired.
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tB. ALTERNATIVE ACTIONS:
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Council Agenda - 5/9/88
1. The first alternative would be to establish the amount of remodeling
the council would like to see done and direct the staff to receive
quotes or bids and prices on any furniture or equipment.
2. The second alternative would be to proceed with redecorating,
furniture purchases, and authorize the investigation of cable
broadcasting equipment.
3. The third alternative would be to do nothing and leave the Council
Chambers as is.
C. STAFF RECOMMENDATION:
The staff certainly agrees that something should be done to spruce up the
north wall behind the Council members because the wallpaper is stained
and peeling off in certain spots. Although each individual may have
different ideas on what should be redecorated, the staff does not have
any firm recommendations on how to proceed other than possibly just
rewallpapering the burlap in a different color scheme and material and
replacing the orange fabric with possibly a wood paneling effect. If
it's the Council's desire to proceed with televising ODuncil meetings on
cable, the staff is certainly willing to investigate the total cost of
the equipment necessary and the cost of changing the lighting.
D. SUPPORTING DATA:
Shallard Decorating Estimate. I will have wallpaper samples available
Monday evening for your review.
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Page Np. of Pages
SHELLARD DECORATING, INC.
Painting & WaOcovering
Rt. 2 Bos 293 Maple like, MN 55358
OkttYaatiraboren (632)863304
e:, suina"CO r0 IR+On[
City of Monticello 1p,IC
may 6, 1988
I SiRC[T ,pe RnY[
Council Chambers Decorating
Ian. S"'11 -0 zv twtt City Council Chamber
IeRCMiT:Ct pili[ OI # rrS YViibaull, roKalon 1J02 MORE
John Simola
( This is not a proposal)
Refinish 2 walls behind Council Platform. including hall to corner.
Approx. 60 lin yda of wallcovering. if entire wall surface is covered.
(Less if existing inset is done in wood to match suroung'ing area)
VWC MTL'S
Type I - 12-19 oz. per lin yd. - approx. *5.00/ lin yd
Type EL - 20-28 os. per lin yd - approx. $9.00/ lin yd
1 ( Plus shipping, cutting charge and tax)
{44bor - hanging wallcovering, paste etc, would run approx $450.00 to
50.00 depending on the inset and/or multiple colors.
Removal of existing wallcovering could cost between $250.00 - $350.00
if substrate surface doesn't need any repair or repriming). bard
to calculate not knowong how existing material will release from wall.
Figuring VWC on the wall average cost $1300.00.
If wood is used at inset area, it would reduce wallcovering cost. but
add to total cost. ( Depending on plain oak veneer, to a raised oak
strip, such as above enterance doors)
Qtr Vroydee hereby to furnish material and labor — compleM in accordance with above specifications. for the sum of:
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aM CandBtont.n saisfactnry and are nMelay accepted. you are Whorued signature
to do tro work AS apsdled. P.y"M will b, made e, buten ed ebova.
bate of acceptance:
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INFORMATIONAL ITEM/BOYLE CHELSEA ROAD ACCEPTANCE
April 25, 1988
At the last Council meeting, Mr. Bill Block, representing Jim Boyle, appeared
before the Council requesting clarification of what the City would be requiring
before acceptance of the Chelsea Road improvement and utilities. The ODuncil
requested City Attorney, Tom Hayes, to review the City requirements and provide
an opinion on how the City should proceed before acceptance. Enclosed you will
find a copy of Mr. Bayes' opinion regarding this matter, which is primarily in
accordance with City staff'& letter of March 17, 1987.
After you've had a chance to review the opinion, if you feel there are any
areas that you would like to see changed, you can let the City staff know or
otherwise this information will be forwarded to Mr. Bill Block and Mr. Jim
Boyle so they know what is expected to be completed and provided prior to
further Council consideration of acceptance.
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April 22, 1988
Mayor and Council
City of Monticello
250 E. Broadway
Monticello, MN 55362
RE: Chelsea Road
Dear Mayor and Council:
You have asked me to provide you with a written opinion with respect
to acceptance of Jim Boyle's Chelsea Road. As background I would
urge you all to review the letter of March 17, 1988 from Rick Wolfsteller
to Jim Boyle and the letter from W. R. Block to Rick Wolfateller dated
April J, 1988.
First off, I believe it important that all contracts and agreements
entered into by the City should be scrupulously adhered to. Parties
to contracts are entitled to have ,contracts followed to the letter,
absent extraordinary circumstances. In my opinion, financial inconvealeace
is not an extraordinary circumstance.
Secondly, it is important to remember that all parties dealing with
the City are, generally speaking, entitled to expect fair treatment
from the City. Any time the City specially treats one person, it
raises the probability that other persons will also seek special advantages.
While circumstances may dictate the need for flexibility, care must
be taken to look into the future to see whether such flexibility alters
or establishes city policies.
Ponding. As I understand the situation current drainage for Chelsea
RON le inadequate. 1 hesitate advising the City to accept any project
that does not adequately provide for drainage. Why should the City
become involved in completing a developer's project? However, I understand
that both the City's engineering firm and the Public Works Department
believe that the ponding question Is of minor concern if sufficient
steps are taken to protect the financial position of the City with
respect to modification of the existing drainage system. The necessary
steps incl.udo the securing of casements sufficiently broad to permit
the City to establish ponding away from the road. This easement should
also permit the City to mine and sell top -soil from the easement area
for its own use and benefit. A release from kr. Boyle should also
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SMITH, PRINGLE BI HAYES
MT,�t4QOaawt;t
ATTORNEYS AT LAW
tY ilvti WaIGt
207 SOUTH WALNUT STREET
OLD COURTNOUSE BUILDING
P.O. no. 668
GREGORY Y. SwTN, J.O.
726 LOWELL AVENUE
MONTICELLO. MINNESOTA 85762-0888
GAR, L. ",.OLE. J.D.
ELR RIVER, MINNESOTA 58770
Y OEaKt PNONl NtL !!6•t.OT
THOMAS O. N41E8. J.D.
piaKtI+10Nl .tIM At I•!t!R
W TRO ,.IN! 161 M U. •'!!]p
April 22, 1988
Mayor and Council
City of Monticello
250 E. Broadway
Monticello, MN 55362
RE: Chelsea Road
Dear Mayor and Council:
You have asked me to provide you with a written opinion with respect
to acceptance of Jim Boyle's Chelsea Road. As background I would
urge you all to review the letter of March 17, 1988 from Rick Wolfsteller
to Jim Boyle and the letter from W. R. Block to Rick Wolfateller dated
April J, 1988.
First off, I believe it important that all contracts and agreements
entered into by the City should be scrupulously adhered to. Parties
to contracts are entitled to have ,contracts followed to the letter,
absent extraordinary circumstances. In my opinion, financial inconvealeace
is not an extraordinary circumstance.
Secondly, it is important to remember that all parties dealing with
the City are, generally speaking, entitled to expect fair treatment
from the City. Any time the City specially treats one person, it
raises the probability that other persons will also seek special advantages.
While circumstances may dictate the need for flexibility, care must
be taken to look into the future to see whether such flexibility alters
or establishes city policies.
Ponding. As I understand the situation current drainage for Chelsea
RON le inadequate. 1 hesitate advising the City to accept any project
that does not adequately provide for drainage. Why should the City
become involved in completing a developer's project? However, I understand
that both the City's engineering firm and the Public Works Department
believe that the ponding question Is of minor concern if sufficient
steps are taken to protect the financial position of the City with
respect to modification of the existing drainage system. The necessary
steps incl.udo the securing of casements sufficiently broad to permit
the City to establish ponding away from the road. This easement should
also permit the City to mine and sell top -soil from the easement area
for its own use and benefit. A release from kr. Boyle should also
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page 2
`i be obtained for damages that may occur to surrounding property as
the result of the ponding system or activities related to the establishment
of the pond. Such easements and releases should be obtained and made
of record before acceptance of the road. All mortgage or lien holders
of the affected property must join in the easement release grants.
Easements. All easements deemed necessary or convenient by the City's
Public Yorks Department or the City's Engineers should be obtained
and placed on record before acceptance of the road. All mortgage
or lien holders of the affected property must join in the easement
grants.
Protect Completion. All facets of the project should be completed
to the City's satisfaction before acceptance of the road. Appropriate
lien waivers should be provided to the City, whether or not payment
can appropriately be and is to be made from funds held in escrow by
the City. Payment from the escrow account should be made only if
expressly authorized by the escrow agreement of December 6, 1986.
The City's engineer, Mr. Boyle's engineer, and the School District
must all agree that the project has been completed to specification
(with the exception of the drainage, if that is the desire of the
City).
Litigation/lien. All litigation and/or liens involving the road must
be satisfactorily brought to a conclusion or released. In lieu thereof,
y a hold harmless agreement in favor of the City together with a letter
of credit from a government Insured lending institution by Mr. Boyle
in favor of the City should be obtained to defray any coats incurred
by the City in defending its Interest in the road. Presently L 6
G Behbein, Inc. has filed a lien on the roadway. Many sub -contractors
on the project have not been paid. While the City has not been directly
Involved to the disputes, it to probable that If the toad is accepted.
the City would be dragged into any litigation that may erupt. The
City should not be forced to expend any of its money in defending
such lawsuits. 1 would deem a promise by the developer to bear the
costs of the City's defense as inadequate without the letter of credit.
A letter of credit in the amount of {10.000 should be sufficient.
Warranty Bond. Mr. Boyle must provide the City with one year warranty
bonds on the project. For any part of the project that cannot be
bonded, the City may wish to consider a IOZ cash deposit or letter
of credit in lieu of a bond. The peculiar circumstances of this project
may warrant such a relaxation of development standards by the City.
However, a policy for future use of bond substitutes should be narrowly
drawn.
Costs. Any costs associated with acceptance of the coed of whatever
character should be borne by Mr. Boyle, and paid for to advance.
This includes document recording and dead fees and reinspection costs.
page 3
Policy Conseratioas. There are several non -legal policy issues that
I believe the City should consider in its deliberations on whether
or not to accept the road at this time:
1) What is the value to the School District and other members
of the community in accepting the road at the present timet
2) What interest, if any, does the City have in seeing that
all contractor and sub -contractor disputes are resolved prior
to acceptance of the road?
3) is acceptance of the road at this time likely to contribute
to the improvement of the area and completion of the project?
4) Does acceptance of the road change any existing policies
of the city and if so, are the policy changes to the advantage
or disadvantage of the City?
S) What detriments does the City and surrounding area suffer
if the road is not accepted at this time?
Respectfully submitted,
Thomas 0. Hayes
TDHIae
N