City Council Agenda Packet 01-22-1990AGENDA FOR THE MEETING OF THE CITY COUNCIL
Monday, January 22, 1990 - 7:00 p.m.
1. Call to order.
2. Approval of minutes of the regular meeting held January 8, 1990.
3. Citizens comwnts/pet it ions, requests, and complaints.
4. Public hearing and consideration to approve and adopt a resolution
relating to the modification by the Housing and Redevelopment Authority
in and for the City of Monticello, of the Redevelopment Plan relating to
Redevelopment Project No. 1, the modification of the Tax Increment
Financing Plans relating to the Tax Increment Financing Districts
Nos. 1-1 through 1-8, and the establishment of Tax Increment Financing
District No. 1-9, all located within Redevelopment Project No. 1.
5. Consideration of authorization to purchase computer services from
Business Records Corporation of St. Cloud/IBM, and consideration of
purchase of computer equipment from AmeriData, Inc.
6. Consideration of extending Monticello Heartland Express service to
Kjellbergs Mobile Hone Park West.
7. Consideration of bills for the month of January.
B. Adjourn.
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MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, January 8, 1990 - 7:00 p.m.
Members Present: Ken Maus, Fran Fair, Warren Smith, Shirley Anderson,
Dan Blonigen
Members Absent: None
2. Approval of minutes.
Motion made by Warren Smith and seconded by Shirley Anderson to approve
the minutes of the special meeting held October 30, 1989. Voting in
favor: Ken Maus, Dan Blonigen, Fran Fair, Warren Smith. Abstaining:
Fran Fair.
Motion made by Warren Smith to approve the minutes of the special meeting
of the City Council held December 1, 1989. Motion carried unanimously.
Motion made by Warren Smith and seconded by Shirley Anderson to approve
the minutes of the regular meeting held December 11, 1989. Motion
carried unanimously.
3. Citizens comments/petitions, requests, and complaints.
Ray Dinius, resident of Riverside Terrace Mobile Home Court, described
problems associated with the unrestricted use of snowmobiles in the
Riverside Terrace Court area. Dinius noted sections of the snowmobile
ordinance that are violated on a regular basis in the area and requested
that Council consider taking stronger enforcement action. In addition,
Dinius requested that snowmobiles be banned from the Mobile Hone Park
area by ordinnnce.
Mayor Maus thanked Dinius for his observations and directed City staff to
investigate the matter further.
A letter from Mori Malone was read by Mayor Maus which requested that the
City consider a ban on the operation of cigarette machines within the
city limits of Monticello. Mayor Maus requested that staff investigate
the potential of banning cigarette machines by ordinance.
4. Public hearinq on adoption of proposed assessment roll for Project 89-1
improvement. )UM
5. Consideration of adopting the assessment roll for certification to County
Auditor.
The public hearing was opened. Mayor Maus requested any comments from
the public regarding the assessment roll and asked if Rick wolfsteller
had received any inquiries regarding the proposed assessment.
C Administrator Wolfsteller indicated that he had received no complaints
and that the assessment roll design was based on previous input by
Council prior to the ordering of the improvement.
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Council Minutes - 1/8/90
There being no further input from the public, the public hearing was
closed.
Motion made by Fran Fair and seconded by Dan Blonigen to adopt the
assessment roll for 89-1 Improvement Project as prepared and adopt a
resolution certifying the same to County Auditor for collection beginning
next year. Motion carried unanimously. SEE RESOLUTION 90-1.
6. Conditional use request to allow a 4-plex in an R-2 (single and two
family residential) zone, a variance request that would allow two zero
lot line duplexes, a variance request to allow the two zero lot line
duplex residential lots to have less than the minimum lot square footaqe
and lot frontage. Applicant, Lanners Custom Homes.
Assistant Administrator O'Neill reviewer] the proposed site plan and
outlined land use issues associated with the development of this 4-plex
in the R-2 zone. O'Neill noted that the development meets minimum lot
requirements; however, the development is allowed only as a conditional
use and, therefore, the City Council must consider the impact of this
development in terms of its relationship to the municipal comprehensive
plan, the geographical area involved, whether such use will tend to or
actually depreciate the area in which it is proposed, the character of
the surrounding area, and the demonstrated need for such use.
CounciLrember Fair expressed her concern over parking problems in the
area. It was her concern that introduction of the higher density 4-plex
next to the church facility would be detrimental to the neighborhood in
terms of parking and traffic congestion.
Mayor Maus noted that at the tine the church property was subdivided,
the site plan showed two single family units on the two lots separated
from the original four -lot church development.
Dan Blonigen agreed that the original subdivision was promoted based on
the potential for two single family lots.
Shirley Anderson found that the 4-plex would be detrimental to the area
by reducing adjoining land values. It was her view that there are other
R-2 areas that are better suited for this type of development.
Gregg Lanners noted that the property was purchased based on R-2 zoning,
which provided the developer with flexibility to develop either single
family homes, duplexes, triplexes, or even a 4-plex. It was his view
that the 4-plex met the minimmistandards; therefore, the property should
be allowed to be used in conjunction with development of a 4-plex.
Lanners went on to question whether utilizing each lot for a small single
family residence would enhance the area any more than the large 4-plex
would.
C John Haller presented a petition. In his presentation, Fuller noted that
the architecture and style of structure is not consistent with the
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Council Minutes - 1/8/90
adjoining properties and, therefore, the 4-plex would stick out in the
neighborhood and would also diminish the value of the adjoining
properties.
Warren Smith expressed his concern that the proposed development would
have a negative impact on the neighborhood and reiterated that under the
conditional use permit process the City has the right to approve a
conditional use permit with conditions it deems necessary to mitigate
negative impacts on the neighborhood, and the City also has the right to
deny a conditional use permit if it is impossible to attach conditions
that would serve to mitigate a negative impact on the neighborhood. It
was Smith's vies that the 4-plex proposed is not compatible with the
character of the neighborhood and would serve to diminish property
values.
Fran Fair went on record by saying that the neighborhood support for
denial of the conditional use permit is not a factor in the decision by
Council.
Assistant Administrator O'Neill reviewed a video of other R-2 areas and
reviewed the relative impact of a 4-plex in other areas within the R-2
zone. At this point in the meeting, the City Attorney requested that in
the case of denial of the conditional use permit, Council mist make
specific findings of fact with regards to this case. it was his vier
that there is ample evidence to deny the permit and that Council should
cite such evidence in their motion.
After discussion, motion made by Dan Blonigen and seconded by Shirley
Anderson to deny the conditional use permit based on the finding that:
1. The proposed development is not consistent with the geographical
area involved.
2. Development of a 4-plex in this area will tend to or actually
depreciate the area in which it is proposed.
3. The proposed development is not consistent with the predominant
single family residence character of the surrounding area.
4. The developer has not sufficiently demonstrated the need for such
use.
Motion carried unanimously.
After the motion, Mayor Maus mentioned that the nearby triplex is quite
conducive to and consistent with the character of the neighborhood, and
he noted that he would be quite willing to consider a similar style of
development at the subject site.
Council Minutes - 1/8/90
Consideration of ordering feasibility studv for public improvements to
Sandberg Fast development. Applicant, Vic Hellman.
Assistant Administrator O'Neill informed Council that Vic Hellman has
submitted a building permit application for construction of a residence
in the Sandberg East development. O'Neill noted that the Sandberg East
development consists of 18 one -acre lots which were allowed to be platted
in December 1987. According to the Zoning Administrator for the OAA, it
was clear from the minutes of the OAA meetings that at the time the lots
were platted, it was the intent to require that the lots be sold in
increments of two lots, which would allow development of a residence on
one lot and a septic system on the vacant lot. At such time that city
services would be needed, it was the intent to abandon the septic systems
on the vacant lots and possibly sell those lots off to help defray the
cost associated with installation of city services. Mr. Hellman
purchased this lard from John Sandberg with the intent of following the
plan for development of the lots as established by Sandberg and the OAA.
Soon after this lard was officially platted, it was subsequently annexed
to the City, which placed it under a new set of rules and regulations
regarding the development. Specifically, city ordinance prohibits
installation of private water systems or sewer systems in the City except
in such cases as the public water and sewer system are not accessible to
the premises. Ordinance requires that each person desiring to install
private water or sewer systems mist first make application for connection
to the public system. Upon resolution of the Council determining that it
is not feasible to connect the applicant's premises to city services,
then the applicant shall be granted a permit to install a private water
and/or sewer system.
Assistant. Administrator O'Neill asked Council to consider ordering the
study which would assist the City in determining whether or not it is
feasible to connect the 18 lots to city services. O'Neill also asked
Council to consider defining the scrape of the feasibility study and went
on to report that this particular case is somewhat complicated by the
fact that the land was platted prior to annexation in a manner that is
not conducive to cost efficient installation of city services, nor do the
lots as designed integrate well with the adjoining property to the west.
O'Neill noted that each lot frontage is approximately 90 feet with a lot
d^pth of 272 feet. This configuration creates an inefficient use of
land; therefore, it mny be an opportune time to not only look at the
feasibility of serving these lots as they now exist but also look at the
potential of reconfiguring the plat in a manner that would gain better
use of the land. Such a reconfiguration would require that the adjoining
property to the west now owned by Rod Norrel be included in the
analysis. O'Neill also noted that under either alternative, public
utilities would need to pass by or through property now owned by Robert
Krautbauer. The portion of the feasibility study that could be
attributed to this property amounts to $2,000.
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Council Minutes - 1/8/90
At this point in the meeting a general discussion regarding alternatives
01 and #2 was conducted. Robert Krautbauer was concerned about the
potential assessment against his property and requested that questions he
has be clarified prior to Council consideration of this matter.
Dan Blonigen mentioned that the City needs to develop an assessment
policy which is fair to those property owners that receive benefit of
public improvement but are not intending on developing the property that
the inprovement passes through. Blonigen asserted that the largest share
of the cost to extend utilities to outlying points in the community
should be borne by the developer that requests the utilities.
Fran Fair noted that this is the opportune time to examine the plat's
design for the area, and it makes sense at this time to study the
potential for reorganizing the lot so that public utilities can be
extended in a cost efficient manner.
Dan Blonigen suggested that City staff develop a preliminary estimate of
the cost to extend public utilities to the existing lots utilizing the
most direct route possible. This information and other information is to
be shared with Mr. Krautbauer and other affected land owners at staff
level. Further consideration of redesign of the Sandberg East
plats/Norrel property could occur at an upcoming meeting.
Mayor Maus concurred that the City should table this matter until
property owners have had a chance to meet again with City staff.
Motion was nude to table this rrotter by Dan Blonigen, seconded by Warren
Smith. Motion carried unanimously.
8. Consideration of authorizing joint fire board to pursue alternatives for
a replacement tank truck.
Rick Wolfsteller noted that Township officials had approved the idea of
purchasing a used tank truck which includes a 1982 Ford chassis that one
of the board members had located. Wolfatel.ler reported that the fire
department was not discouraging the Township's efforts to find a tank
truck; however, there were concerns that the proper type of tank be
acquired to fit the chassis. Wolfsteller went on to note that one of the
problems of obtaining a used vehicle is that sometimes when an
appropriate one is available, action rust be taken to avoid losing the
purchase. At the same time, however, he noted that the fire department
should be careful to require that the truck and tank meet certain
specifications, or we could be inheriting a problem in the future.
Jerry Wein reported that he had reviewed the proposal to purchase the
1982 Ford chassis and indicated that it is likely that they would be able
to develop a fire tanker truck that would meet department
Specifications.
At this point in the meeting, a general discussion regarding the
financing of the tanker truck ensued.
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Council Minutes - 1/8/90
Motion by Fran Fair and seconded by Shirley Anderson to authorize
purchase of replacerent tanker at a cost not to exceed 521,500 with
funding based on existing formula (658 City, 358 Township) for
City/Township cost sharing. Voting in favor: Warren Smith, Ken Maus,
Shirley Anderson, Fran Fair. Opposed: Dan Blonigen. Dan Blonigen
opposed the nation, as it was his view that the Township should pay a
larger portion of the cost of equipment that will be used primarily in
the township.
9. Consideration of active participation in operation and development of
Pilot's Cove Airport.
Assistant Administrator O'Neill reported that Jim Hallila, present owner
of Pilot's Cove Airport, requested Council consider providing him with
help in operation of the airport. Specifically, Hallila asked that the
City pay one-half the cost of the snowplowing, with the City of Big Lake
paying for the other half. Hallila also requested that the City pay
one-half of the electric bill or purchase a pilot controlled receiver
that can be connected to runway lights, which will assist in the cost
efficient operation of the runway lights.
Jim Hallila was present, along with a number of individuals that have an
interest in developing the Pilot's Cove Airport. Hallila noted that he
is interested in maintaining the airport for public use; however, he
requests that the City provide assistance in his endeavor, as the cost to
operate the airport exceeds monetary benefit that can be gained. Hallila
requested that the City consider working with him along with other
aviation enthusiasts toward development of a municipal airport. Finally,
Hallila mentioned the potential of the airport becaning a private airport
with development of private dwellings alongside the airport property.
under this scenario, only individuals with special permission could
utilize the facility.
Mayor Maus reviewed some of the history behind past efforts to develop a
public airport. Maus noted that the airport as it now exists was
previously deemed as being in the wrong location. The relatively poor
location prohibited the airport from qualifying for state and federal
funding.
Members of the audience indicated that the airport is vital to the
commercial development of the community, and it should not be allowed to
be turned into a housing development. Efforts should be mado to help
keep it open as an airport for now, even at a minimum level.
Shirley Anderson noted that she would not like: to see the City lose this
facility and mentioned that it could be tuna well spent to determine if
this airport could be upgraded.
It was suggested by Ken Maus, and Fran Fair concurred, that the strategy
for determining the feasibility of development of this airport should be
brought before tho Industrial Development Committee for review.
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Council Minutes - 1/8/90
Fran Fair was concerned that the research concerning this particular
issue would require staff time that is not available at this time. A
strategy for developing answers to the many questions regarding the
feasibility of this airport must be developed if the City is to proceed
on this matter. It was the general consensus of the group to charge the
Industrial Development Committee with this responsibility or potentially
develop an Airport Commission that would he especially geared toward
analyzing the potential for upgrading the present airport.
Motion was then made by Warren Smith arca seconded by Shirley Anderson to
provide one-half of the funding necessary to plow snow and purchase a
$450 pilot controlled receiver which would be used to control the runway
lights by pilot control.
During discussion, Dan Blonigen noted that he did not agree with the
motion, as he objects to use of tax dollars in this manner. The proposal
to use tax dollars to subsidize a privately owned public airport, in his
estimation, does not serve a sufficient public purpose. Voting in
favor: Ken Maus, Shirley Anderson, Warren Smith, Fran Fair. Opposed:
Dan Blonigen. Motion carried.
10. Consideration of increase in sewer rates.
John Simola reported that at the November 13, 1989, meeting, City staff
presented a revised 1990 budget for the sewer plant and lab collection
system that reflected increased operational cost. At that meeting, City
Council approved a new contract with PSG in the 1990 budget for the sewer
fund which was set at $413,645. This was a 9.49 increase over the 1989
hnrlget. Simla went on to dPscrihn the final estimates for the 1989
budget, which indicated a shortfall in the fund of $5,337. Based upon
past history and discussions with citizens about their usage of the
sanitary sewer system and considering the slight increase in sewer usage
due to increase in water pressure, Simola estimated billable flow and
loading for the treatment plant for 1990. Using the formulas outlined by
city ordinance, Simola outlined an amended rate structure. In summary,
the rate increase proposed has the most significant effect on Sunny Fresh
Foods because they are an extremely large user and produce 448 of the BOD
loading and almost 20% of the total suspended solids. Although Sunny
Fresh is not happy with the increase, they are satisifed that the cost
and distribution of the increase is appropriate and correct.
After discussion, motion made by Dan Blonigen and seconded by Shirley
Anderson to approve the following rates:
Flow $ 0.811 per hundred cubic feet
BOD $ 0.150 per pound
TSS $ 0.273 per pound
Combined rate for
residential, commercial,
6 industrial users $ 1.515 per hundred cubic feet
Motion carried unanimously.
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Council Minutes - 1/8/90
11. Consideration of approval of plans and specs for booster p�F'
refurbishment or replacement at the water reservoir at Chelsea Road and
the authorization to advertise for bids.
John Simola reported that the capacity of the booster pumps at the
reservoir at Chelsea Road has been reduced and will be further reduced
upon filling of the new water tank to its maximum operating level in
early summer; therefore, it is necessary to refurbish or replace the
booster pumps so that they will again have a combined pumping capacity of
approximately 2,100 gallons per minute.
After discussion, motion made by Fran Fair and seconded by Shirley
Anderson to approve plans and specifications as presented and authorize
advertisement for bids returnable on February 2, 1990. Motion carried
unanimously.
12. Consideration of approvinq 1990 contract for police protection with
Wriqht County Sheriff.
Administrator wolfsteller reported that the Wright County Sheriff's
Department has provided a new law enforcement contract covering services
for the year 1990 at a total estimated contract fee of $150,080.50. This
contract amounts to a total of 7,321 hours of patrol coverage annually,
which includes an estimated 416 hours that will be used by the Sheriff's
Department for providing additional patrolmen for Friday and Saturday
evenings for continued enforcement of the cruising and loitering
activities.
Council discussed the snowmobile related problem, and it determined that
no information regarding the ordinance should be publishel in the pnpPr..
In addition, staff was directed to request stricter enforcement of the
snowmobile ordinance.
After discussion, motion made by warren Smith and seconded by Shirley
Anderson to ratify the contract certifying a number of hours of coverage
at a maximum of 7,321 hours at a rate of $20.50 per hour. Motion carried
unanimously.
13. Consideration of makinq annual appointments.
After discussion, motion made by Shirley Anderson, seconded by Warren
Smith, and carried unanimously to approve the 1990 appointments as
follows:
ANNUAL APPOINTMENTS
Official Depositories: Wright County State Bank
Security Financial Savings a Loan
First National Bank of Monticello
Newspaper: Monticello Times
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Housing and Redevelopment Authority:
1. Tom St. Hilaire
12/91
(5 -year staggered terms)
2. Ben Smith
12/90
3. Bud Schrupp
12/94
4. Al Larson
12/93
5. Everette Ellison
12/92
Planning Commission:
1. Richard Carlson
2. Mori Malone
3. Cindy LEun
4. Richard Martie
5. Dan MCConnon
Health Officer:
Dr. Donald Maus
(1 Year)
Acting Mayor
Fran Fair
(1 year)
Joint Commissions:
Community Education
Warren Smith
Fire Board
Rick Wolfsteller
OAA
Ken Maus
Library Board:
1. Ed Solberg
12/90
(3 -year staggered)
2. Dr. Donald Maus
12/91
3. Mary Jane Puncochar
12/90
4. Pat Schwarz
12/91
5.
12/92
Attorney:
Smith 6 Hayes
Planner:
Dahlqren, Shardlow 6 Uban
Auditor:
Gruys, Johnson 6 Associates
Recycling Committee:
Dan Bloniqen
14. Consideration of maintenance agreement with Wriqht County for County
State Aid Highways in Monticello.
After discussion, motion made by Dan Bloniqen and seconded by Warren
Smith to approve the maintenance agreement as presented. Motion carried
unanimously.
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15. Consideration to adopt a resolution calling for a public hearing on the
pr000sed modification by the Housing and Redevelopment Authority in and
for the City of Monticello, of the redevelopment pian for Redevelopment
Project No. 1, the modification of the tax increment financing plans for
the tax increment financing districts Nos. 1-1 through 1-8 and the
2L)Proval and ado?tion of the tax increment financing plan for tax
increment financing district No. 1-9, all located within Redevelopment
Project No. 1.
After discussion, motion made by Dan Blonigen and seconded by Shirley
Anderson to approve said resolution. Motion carried unanimously.
SEE RESOLUTION 90-2.
16. Review of Heartland Express monthly activity report.
Assistant Administrator O'Neill reported that in general, the operating
statistics for the first month of operation appear to be positive. The
Minnesota Department of Transportation is impressed with the City's
average ridership of 36 rides per day. In summary, 737 rides were
provided by the system, of which 306 riders were elderly, 26 handicapped,
96 children, 43 free rides or toddlers, and 266 members of the general
public outside the groups listed above used the system. Total number of
miles driven amounted to 1,396, which created a per ride mileage of 1.89
miles.
Warren Smith noted that he received considerable positive input from the
public regarding the bus service and is satisfied with the level of
ridership.
Dan Rlonigen noted that the cost per ride and cost per mile figures need
improvement and that the system is not yet meeting its projected
ridership.
Ken Maus was satisfied with the ridership at this puint and indicated
that the comments he has received from the public have been very
positive, and this sentiment will likely contribute toward increase in
ridership as the system matures.
17. Consideration for locksmith services and hardware for the Monticello Fire
Station and the Monticello Hi -Way Liquor building.
After discussion, motion made by Fran Fair and seconded by Shirley
Anderson to approve two bids submitted by L & R Services Locksmith for
$892 for Monticello Fire Station and $359 for the Monticello Hi -Way
Liquor building. Motion carried unanimously.
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Council Minutes - 1/8/90
18. Consideration of bills for the last half of December.
After discussion, motion made by Shirley Anderson and seconded by Dan
Blonigen to approve the bills for the month of December. Motion carried
unanimously.
There being no further discussion, meeting was adjourned.
Respectfully submitted,
Jeff O'Neill
Assistant Administrator
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Council Agenda - 1/22/90
4. Public hearing and consideration to approve and adopt a resolution
relatinci to the modification by the Housing and Redevelopment Authority
in and for the city of Monticello, of the Redevelopment Plan relating to
Redevelopment Project No.1, the modification of the Tax Increment
Financing Plans relating to the Tax Increment Financing Districts
Nos. 1-1 through 1-8, and the establishment of Tax Increment Financing
District No. 1-9, all located within Redevelopment Project No. 1. (O.K.)
A. REFERENCE AND BACKGROUND:
The purpose of this agenda item is two -fold: 1) Public Hearing and
2) approval and adoption of the resolution.
Assuming the public hearing is opened and closed without written or oral
comment from the public and that School District 0882, the Wright County
Commission, and the Monticello -Big Cake Hospital District has made no
written convent within the statutory requirement of 30 days, the Council
may then consider the approval and adoption of the resolution.
At the December 6, 1989 HRA meeting, HRA members were concerned if this
project was consistent with the HRA policies for the use of the Tax
Increment Financing (assistance to a non-competitive =nmercial
business).
Originally, Mr. Martie's building plan called for a 7,128 structure
(2,268 sq. ft. eonmercial display/office and 4,860 sq. ft. agricultural
warehouse). The HRA asked Mr. Martie if the potential to construct an
additional 48 feet to the agricultural warehouse area, or an increase of
2,592 sq. ft., would present a financial burden to his project. He
responded the pay back would be good and would further increase jobs by
two part-time yearly employees. With the addition of 2,592 sq. ft. of
agricultural warehouse area to increase the ratio of warehouse area
compared to commercial display/office area, the increase of three yearly
employees, and the increase of property valuation to the City,
Mr. Pat Pelstring of Business Development Services, Inc., suggested the
HRA consider the pay-as-you-go TIF option at an nssistance level of
$2,500 annually over 7 years for a total of $17,500. The HRA passed a
motion adopting the finance budget as stated above with a further
recommendation for proper screening of storage and outside storage areas
to reserve the Industrial Park aesthetic value. Under this analysis,
Mr. Pelstring viewed this as a small, good project which works well for
both the HRA (consistent with policy) and for Mr. Martie (assistance to
an existing swill business). However, please note the tax increment
generated over the economic district 10 year life is approximately
$36,000.
The Planning Commission has approved a resolution stating the Plans as
submitted were consistent with the Monticello Comprehensive Plan.
B. ALTERNATIVE ACTIONS:
1. Approve and adopt the resolution relating to the modification by the
Housing and Redevelopment Authority in and for the city of
Monticello, of the Redevelopment Plan relating to Redevelopment
Project No. i, the modification of the Tax Increment Financing Plans
Council Agenda - 1/22/90
relating to Tax Increment Financing Districts Nos. 1-1 through 1-8
and the establishment of Tax Increment Financing District No. 1-9,
all located within Redevelopment Project No. 1.
2. Deny approval and adoption of the resolution.
C. STAFF RECOMMENDATION:
Staff recommends City Council approve and adopt Alternative 11 as stated
above contingent upon execution of the Redevelopment Agreement by and
between the Housing and Redevelopment Authority of the city of Monticello
and Russell V. Martie and Sharon F. Martie prior to lard closing date.
Staff recommends approval and adoption because the project is consistent
with HRA policy for the use of TIF, consistent with the Monticello
Comprehensive Plan, and assists an existing small, local developer.
D. SUPPORTING DATA:
Copy of the Redevelopment Project No. 1 is available at City Hall for
review.
Copy of the public hearing notice. Copy of the resolution. Copy of
Exhibit A to the resolution.
Ex NIBir A
NOTICE OF PUBLIC IIEARINO
CITY OF MONTICELLO
COUNTY OF WRIGHT
STATE OF MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council (tire "Council") in and for the Clty of Mon-
Iicallo. County of Wright. State of Minnesota, will hold a public hearing on January 22, 1990.
at app.orimalsly 7:30 p.m., at Cay Map, 250 East Broadway, Monticalio. Minnesota, rotating
to tiro proposed monbhca0 tn, by incroased project costs, of the tioufag and Redevelopment
Atilhorily's Rutaveloproe nt Project No. I and the appravol and adoption of the Modified Rodovelop•
nmol Plan rota( ilii thoero: the ptapnsed modification, by in vonsod p,ojecl costs, of the Modified
Ta. Inc. en rent Finatcintg Plans for Ta. increment Financing 0iohicta Not. hI through i -e. located
within Red. tetop—o Project No, 1; and the approval and adoption at the T a a Inciemont Finan-
cing Plan relating to Tar btctanom Financing Onittici No. 1.9, also located with Redovoloprou nt
Protect No. 1. oil pursuant to and in accordance with Minnesots Ststuas. Sections 409.001 to
488.047, inclusive, or amended, anti Sections 469.174 to 469.179, Inclusive, a amended.
A copy of the Madifiad Redevelopment Plan for Rodovolopnront Project No. i and Taa I—b-
mant Financing Plans Im lo. Inumnnnl Financing Districts Noe. 1.1 though 1.0, as proposed
to be adopted, will be on o onto evinflable for Inspection at the police of the City Administrator
at City Nait not loop, theIdn Jatuary If. 1990. '
The psaperty comprising Tp. Incranam Financing District No. 1.9 h ss follows:
leges Oseeroption
That poll of Lot 1, Block 3 of Oak wood hoduouiall Perk descrlbod as follows: Commencing
et Pse northwest rmnar of the Sola lot, thence South along the Wast line 3711.37. feet
to S Itobd: thane Ent at a tight angio 223 feet to a poen; thence Nath parallel with the
West line to a point an the North line; thence West no a right angio to the point of begin.
sing. suaycl to dying. amid utility aaauumrns of record.
PID No.: 165 019 003011 Owner: Oakwood industrial Park
Fur it.., informotimi,ege. ding the identification of Ilse parcel to be included In Tas Increment
Ftnauing District No. 1�9 may Its obtained Trento the office of the City Adodnhtralwr
All improstod ppersons may appear at tiro flooring and present their view* orally or fit writing.
By ORDFR OF ME CITY COUNCIL
Rick Woiliar.00, City Adnanisootor
(Jan. 11 Ar Ia. 19901
D
Councilmember introduced the following
resolution, the reading of which was dispensed with by unanimous
consent, and moved its adoption:
CITY OF MONTICELLO
WRIGHT COUNTY
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION RELATING TO THE MODIFICATION, BY
THE HOUSING AND REDEVELOMENT AUTHORITY IN AND
FOR THE CITY OF MONTICELLO, OF THE
REDEVELOPMENT PLAN RELATING TO REDEVELOPMENT
PROJECT NO. 1, THE MODIFICATION OF THE TAX
INCREMENT FINANCING PLANS RELATING TO TAX
INCREMENT FINANCING DISTRICTS NOS. 1-1 THROUGH
1-8 AND THE ESTABLISHMENT OF TAX INCREMENT
FINANCING DISTRICT NO. 1-9, ALL LOCATED WITHIN
REDEVELOPMENT PROJECT NO. 1, AND THE APPROVAL
AND ADOPTION OF THE TAX INCREMF,NT FINANCING
PLAN RELATING THERETO.
BE IT RESOLVED by the City Council (the "Council") of the
City of Monticello, Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. It has been proposed and adopted by the Housing and
Redevelopment Authority in and for the City (the "Authority")
that the Authority modify, by increased project coats,
Redevelopment Project No. 1, pursuant to and in accordance with
Minnesota Statutes, Sections 469.001 to 469.047, inclusive, as
amended. It has been further proposed and adopted by the
Authority that the Authority modify the Tax Increment Financing
Plans for Tax Increment Financing Districts Nos. 1-1 through 1-8
and establish Tax Increment Financing District No. 1-9, located
within Redevelopment Project No. 1, and approve and adopt the Tax
Increment Financing Plan relating thereto, pursuant to and in
accordance with Minnesota Statutes, Sections 469.174 to 469.179,
inclusive, as amended.
1.02. The Authority has caused to be prepared and this
Council has investigated the facts with respect thereto, a pro-
posed Modified Redevelopment Plan (the "Modified Redevelopment
Plan") for Redevelopment Project No. 1, defining more precisely
the increased project costs to be made to Redevelopment Project
No. 1, the proposed Modified Tax Increment Financing Plans for
Tax Increment Financing Districts Nos. 1-1 through 1-8 and the
proposed Tax Increment Financing Plan (the "Tax Increment
Financing Plan") for Tax Increment Financing District No. 1-9
(collectively referred to as the "Plans").
0
1.03. The Authority and the City have performed all actions
required by law to be performed prior to the modification of
Redevelopment Project No. 1, the modification of Tax Increment
Financing Districts Nos. 1-1 through 1-8 and the establishment
of Tax Increment Financing District No. 1-9 and the adoption of
the Plans relating thereto, including, but not limited to,
notification to Wright County, Independent School District
No. 882 and Monticello -Big Lake Community Hospital, having
jurisdication over the property to be included in Tax Increment
Financing District No. 1-9; a review by the City Planning
Commission of the proposed Modified Redevelopment Plan for
Redevelopment Project No. 1, the proposed Modified Tax Increment
Financing Plans for Tax Increment Financing Districts Nos. 1-1
through 1-8, and the proposed Tax Increment Financing Plan for
Tax Increment Financing District No. 1-9; and the holding of a
public hearing upon published and mailed notice as required by law.
1.04. The Authority hereby determines that it is necessary
and in the best interest of the City at this time to modify
Redevelopment Project No. 1, to modify Tax Increment Financing
Districts Nos. 1-1 through 1-8 and to establish Tax Increment
Financing District No. 1-9 and approve the Plans relating
thereto, contingent upon execution of the Redevelopment
Agreements by and between the Housing and Redevelopment Authority
of the City of Monticello, and Russell V. Martie and Sharon F.
Martie.
Section 2. Findinqs for the Modification of Redevelopment
Project No. 1, Modification of Tax Increment Financinq Districts
Nos. 1-1 throuqh 1-8, and the Establishment of Tax Increment
Financinq District No. 1-9.
2.01. The Council hereby finds, determines and declares that
the modification of Tax Increment Financing Districts Nos. 1-1
through 1-8 and the establishment of Tax Increment Financing
District No. 1-9, all located within Redevelopment Project No. 1,
is intended and, in the judgment of the Council, its effect will
be, to further provide an impetus for commercial and industrial
development, increase employment and otherwise promote certain
public purposes and accomplish certain objectives as specified in
the Modified Tax Increment Financing Plans and Tax Increment
Financing Plan for Tax Increment Financing Districts Nos. 1-1
through 1-9.
2.02. The Council hereby finds that Tax Increment Financing
District No. 1-9 does meet the requirements of an economic
development district in that it consists of any project, or any
portions of a project which does not meet the requirements found
in the definition of a redevelopment district, mined underground
space development district, housing district or soil corrections
district, but which the Authority and City finds to be in the
public interest because:
1. It will discourage commerce, industry, or manufacturing
from moving their operations to another stater or
-2-O
1. It will discourage commerce, industry, or manufacturing
from moving their operations to another state; or
2. It will result in increased employment in the
municipality; or
3. It will result in preservation and enhancement of the tax
base of the municipality.
2.03. The Council finds, determines and declares that the
proposed development, in the opinion of the Council, would not
occur solely through private investment within the reasonably
foreseeable future and, therefore, the use of tax increment
financing is deemed necessary.
2.04. The Council finds, determines, and declares that the
proposed Tax Increment Financing Plan for Tax Increment Financing
District No. 1-9 will afford maximum opportunity and be consistent
with the sound needs of the City as a whole for the development
or redevelopment of Redeveloment Project No. 1 by private
enterprise.
2.05. The Council further finds, declares and determines
that the City made the above findings stated in Section 2 and has
set forth the reasons and supporting facts for each determination
in writing, attached hereto as Exhibit A.
2.06. The Council determines and declares that Redevelopment
Project No. 1 is hereby modified, that Tax Increment Financing
Districts Nos. 1-1 through 1-8 are hereby modified and that Tax
Increment Financing District No. 1-9 is hereby established,
contingent upon execution of the Redevelopment Agreement by and
between the Housing and Redevelopment Authority of the City of
Monticello and Russell V. Martie and Sharon F. Martie.
Section 3. Adoption of Respective Plans.
3.01. The respective Plans presented to the Council on this
date are hereby approved and adopted, contingent upon execution
of the Redevelooment Agreement by and between the Housing and
Redevelopment Authority of the City of Monticello and Russell V.
Martie and Sharon F. Martie, and shall be placed on file in the
office of the City Administrator.
Section 4. Implementation of the Modified Redevelopment
Plan, Modified Tax Increment Financinq Plans and Tax Increment
Financinq Plan.
4.01. The officers of the City, the City's financial advi-
sor, underwriter and the City's legal counsel and bond counsel
are authorized and directed to proceed with the implementation of
the respective Plans and for this purpose to negotiate, draft,
prepare and present to this Council for its consideration all
further plans, resolutions, documents and contracts necessary to
accomplish this purpose.
�i The motion for the adoption of the foregoing resolution was
- duly seconded by Councilmember , and upon
vote being taken thereon, the following voted in favor thereof:
And the following voted against the same:
Whereupon said resolution was declared duly passed and
adopted, and was signed by the Mayor and attested to by the City
Administrator.
Dated January 22, 1990
Attest:
City Administrator
(SEAL)
c_
Mayor
EXHIBIT A TO RESOLUTION NO. 00A; ,
The reasons and facts supporting the findings for the
establishment of the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-9 as required, pursuant to
Minnesota Statutes, Section 469.175, Subd. 3, are as follows:
1. Finding that Tax Increment Financing District No. 1-9 is a
"economic development district" as defined in Minnesota Statutes,
Section 469.174, Subd. 12.
Tax Increment Financing District No. 1-9 consists of one
parcel which does not meet the requirements of a redevelopment
district, mined underground space development district, housing
district or soils correction district. The Authority and City
find Tax Increment Financing District No. 1-9 to be in the public
interest because:
1. It will uiscourage commerce, industry, or manufacturing
from moving their operations to another state; and
2. It will result in increased employment in the municipa-
lity; and
f 3. It will result in preservation and enhancement of the tax
base of the municipality.
2. Finding that the proposed development, in the opinion of the
Council, would not occur solely through private investment within
the reasonable foreseeable future, and therefore, the use of
tax increment financing is deemed necessary.
City staff has reviewed the available financing costs for the
development. Due to the high costs of the public improvements,
the project would not be financially feasible without the City's
assistance.
3. Finding that the Tax Increment Financing Plan conforms to the
general plan for the development or redevelopment of the munici-
pality as a whole.
The Monticello Planning Commission reviewed the Tax Increment
Financing Plan for Tax Increment Financing District No. 1-9 on
January 2, 1990, and determined that the Tax Increment Financing
Plan for Tax Increment Financing District No. 1-9 conforms to the
Comprehensive Plan of the City.
4. Finding that the Tax Increment Financing Plan for Tax Increment
Financing District No. 1-9 will afford maximum opportunity,
C consistent with the sound needs of the City as a whole, for the
development of Redevelopment Project No. 1 by private enterprise.
The project to be developed, which will be located within
y Tax Increment Financing District No. 1-9, consists of the
construction of a 9,720 s.f. metal display office and cold
storage facility to be constructed in the early spring of 1990
and completed by January 2, 1991. It is anticipated that two
additional full-time jobs and two additional part-time jobs will
result from this project.
5. Finding regarding the method of tax increment computation set
forth in Minnesota Statutes, Section 469.177, Subd. 3, Clause
(b), if applicable.
The Council does not elect the method of tax increment com-
putation set forth in Minnesota Statutes, Section 469.177, Subd.
3, Clause (b).
6. Finding regarding duration of Tax Increment Financing
District No. 1-9.
The duration of Tax Increment Financing District No. 1-9 will
be eight (8) years from the date of receipt of the first tax
increment or ten (10) from the approval of the Tax Increment
Financing Plan, whichever is less. Pursuant to Minnesota
Statutes, Section 469.177, Subd. 3, the City requests 100 percent
of the available increase in assessed value for current
expenditures.
Council Agenda - 1/22/90
Consideration of authorization to purchase computer services from
Business Records Corporation of St. Cloud(fBM, and consideration of
purchase of computer equipment frau AmeriData, Inc. (J.O.)
A. REFERENCE AND BACKGROUND:
On December 1, 1989, Council directed staff to move forward with computer
application development by refining the proposal for development of
phase 1 computer applications (finance, payroll, utility billing, word
processing) and present recommendations to Council at the first Council
meeting scheduled in January. Council also tabled a decision regarding
legal action against vendor or consultant, such legal action to be
considered at the meeting in January as well.
Subsequent to the December 1 meeting, staff has examined the information
needs of the organization and evaluated two basic hardware configurations
with the potential of satisfying the phase I application needs. As a
result of this study, staff recommends that the City purchase computer
services which includes vendor support and software from Business Records
Corporation of St. Cloud (BRC) and hardware from IBM via the State
pucehasing contract. The recommendation also includes purchase of
personal computers to work in conjunction with the IBM equipment, the
personal computer equipment to be purchased from AmeriData via the State
purchasing contract. The remainder of this metro will outline the
research methodology used in selecting Business Records Corporation and,
of course, outlines justifications for the recommendation. Also included
is a proposed system configuration which details proposed
hardware/software purchases and outlines a management plan for
implementation and operation.
RARDWARE SYSTEM CONFIGURATION ANALYSIS - MINI VERSUS MICRO-NEIWORK
At the December 1, 1989, special meeting of the City Council, staff
prepared information outlining a mini -computer versus
micro-computer/network configuration. The information contained in that
report was general in nature and provided an overview of the pros and
cons of each type of c:anputer hardware configuration. Since that date,
staff has evaluated each approach in terms of the needs of the
organization. For purposes of comparing approaches, staff compared a
mini -computer system offered by BRC to a micro -based system offered by
Banyon Data System. The evaluation that staff conducted focuser] on the
general performance of each configuration. Performance was evaluated in
terms of implementation and training, on-going vendor support, ease of
software use and ease of operations, hardware, references, and cost.
Although a standard request for proposal format was not followed, it is
our view that the comparison shopping that we have conducted provides us
with the information necessary to select the comQwter system and vendor
that will best suit the City's needs in terns of phase I applications.
Council Agenda - 1/22/90
MINI-COMPVrER CONFIGURATION
ComputoService of Mankato and Business Records Corporation of St. Cloud
are the two major suppliers of municipal applications that operate on a
mini computer. After reviewing the capabilities of both mini -computer
vendors, it was determined that Business Records Corporation is the best
choice based on references and proximity to the City of Monticello.
Based on the results of recent bid results in Champlin and Andover, it
appears that BRC and ConputoService pricing is equal.
In terms of software performance, staff has been informed by an
independent third party that the ComputoService software is comparable to
the BRC software. ComputoService software is operating in the City of
Buffalo, Luverne, Morris, and other Minnesota communities. All in all,
ComputoService did not perform quite as well in terms of references
provided by user cities. The City of Columbia Heights had a difficult
time with ComputoService and found it necessary to abandon their
CorputoService based system and opt instead for the Business Records
Corporation system. However, the City of Luverne and the City of Morris
both have had good experience with CorrputoService.
The City of Andover recently purchased hardware and software services
from Business Records Corporation. One of the major reasons for
Andover's decision to go with BRC was because of the vendor support
issue. After taking this and other information into account, it appeared
that BRC was the obvious choice because it is closer to Monticello (35
miles), and the vendor support provided by BRC according to references
appears to be superior.
MINI-CWUTF,R SYSTFTI
For purposes of comparing mini -touter operation versus micro-CaTputer
operation, staff selected Banyon Data Systems as the micro -computer
representative. Banyon was selected based on the fact that this company
now operates micro-conputer applications in over 150 local governments
throughout the states of Minnesota and Wisconsin. Banyon Data Systems is
locator] in the metro area and is in close proximity to the city of
Monticello. Other micro -computer systems available are basad in
relatively far away places. In addition, I have had experience with the
Banyon Data System through my work at Watertown and found the software
and service to be satisfactory.
BUSINFSS RFMRDS CORPORATION/BhWON DATA SILSTEMS EVALUATION AND
COMPARISON
Once the two primary vendors were identified, staff began the task of
evaluating the two systems in terms of the needs of the organization.
Council Agenda - 1/22/90
1
Implementation issues
In terms of training, acceptance period for software, documentation, and
vendor credibility, both Business Records Corporation and Banyon Data
Systems received high marks. This decision criteria did not play a
decisive role in staff recommendation.
Vendor support
A number of factors were looked at in determining which company would
provide the best vendor support. It was determined that both
organizations provide excellent vendor support; however, Business Records
Corporation is larger and is likely to be more stable financially. In
addition, the user group that the City of Monticello would belong to
within the BRC environment includes cities that are similar to Monticello
in terms of size and information processing needs. These cities include
St. Peter, Benson, Litchfield, Elk River, and Granite Falls in Minnesota,
and West Bend in Wisconsin. On the other hand, the cities that utilize
the Banyon system tend to be smaller and generally less similar to the
City of Monticello. (The Banyon cities have not organized a user group
at the present time.) This is significant when it cones to developing
updates to programs. The City is in a better position to get what it
needs in terms of updates if it is similar to the majority of the systems
within the user group.
Both systems are IBM based, and both systems have a considerable number
of users operating software on the existing equipment; therefore, there
is a good chance that the vendor will continue to provide updates and
provide a path for up migration for the existing users. In fact, BRC has
recently completed, tested, and distributed a revised finance system. It
is not expected that the focus of the vendor will change to a new
software product and new hardware product, thereby leaving the City on a
limb with outdated, unsupported software and hardware. As you recall,
this is what happened with the DMDI software and hardware. We want to
nuke sure this doesn't happen again. All in all, in terms of vendor
support, it appears that both Banyon and BRC provide adequate vendor
support, with BRC having a slight edge based on the fact that the City of
Monticello is similar to the average city user of BRC software.
Software/Operation Ease
This particular issue becomes the critical factor in deciding which
system configuration to adopt. In analyzing the City's needs in terms of
system operation, it appears that it is important to have the capacity to
operate a single application from multiple sites. It will not be
uncommon for more that one person to need access to the same program at
the same time. For instance, Marlene may be entering financial data
while Cathy works on preparing a budget report for Rick. These two
operations can occur simultaneously under a mini -computer environment.
C The ability to do the same is impossible or limited under the notworked
micro -computer arrangement. Similarly, under the min(-coniuter
environment, the receptionist at the front desk can make an inquiry into
Council Agenda - 1/22/90
the system regarding a customer's
question, while at the same time Cathy
can be updating the utility billing data base or conducting some other
operation within the utility billing system. In summary, the
demonstrated anilti-user/multi-tasking capabilities of the micro—computer
based system allow for greater, more efficient use of personnel.
Software documentation
Both Business Records Corporation and Banyon Data Systems provide
detailed and complete user and system documentation.
Hardware documentation
IBM provides detailed and complete documentation for all hardware. In
addition, there are step-by-step, user-friendly manuals provided for all
components of the AS/Entry mini -computer system, including hardware
installation and implementation and all operating system functions.
Operating system AS/Entry versus operatinq networked micro -computers
In talking to professionals in the field, it appears that networking
personal computers is a viable option which allows data to be exchanged
between computers. However, the management of this type of system
appears to be more difficult as compared to management of a mini -computer
based system. It is projected that the staff time necessary to maintain
a network of personal computers will be greater than the staff time
necessary to maintain a mini -computer network.
Software Capabilities
Both the Banyon Data Systems and the BRC software will meet the minimum
requirements of the City. There are additional features that the BRC
software provides that are not available with the Banyon Data System that
will be quite valuable as the City develops its data base. For instance,
the Business Records Corporation financial system allows staff to develop
reports that ask for information from various months and years. This
would allow staff to tell Council how much money has been spent on a
project that spans more than one month. The Banyon Data system at this
time does not allow retrieval of project related financial data to span
more than one month. This would greatly restrict staff's ability to
summarize project expenses over a longer period of time.
The BRC software is also superior in terms of providing budget Eormats
and expense to budget reporting. The system provides up-to-date expense
to budget reporting that is not available through the Banyon Data System
software. Through the BRC designer reporting module, financial reporting
can be designed, input, and printed by City staff.
In summary, the Business Records Corporation software is superior to the
Banyon Data System software, as the software, when combined with the
hardware configuration, provides for greater flexibility of system
application usage by allowing an application to be used from more than
Council Agenda - 1/22/90
v one work station and allows printer sharing and other networking
capabilities without considerable system management. In addition, the
finance, utility billing, and payroll software is geared toward the
information collection and reporting needs of a growing community.
Agai:., the City did not complete an in-depth detailed RFP which outlines
every detail that the City wants included in its financial system. There
will undoubtedly be a few inadequacies or problems that will be resolved
by updating the software or by adjusting the organization. Let it
suffice to say that if the system is working well in other comparable
cities, it will meet the majority of the needs of the City of Monticello.
Hardware
Both the Banyan Data system and the BRC system operate IBM equipment.
Both system configurations would have sufficient processing power to
handle the applications that are proposed under Phase I, and both system
configurations will be capable of implementing standard data base
packages.
Economics
There is a higher Phase I cost associated with the Business Records
Corporation configuration. The total cost of Business Records
Corporation software, IBM hardware, and the cost to purchase personal
computers from AmeriData amnunts to $51,907. The cost to operate the
Banyon Data system is $41,150. For a difference of $10,757, the City of
Monticello can gain the benefits of the added performance as noted
earlier. The on-going cost to operate the Business Records Corporation
software is $3,950. A Software Support Agreement (SSA) will be set up
for each applicaLiun. Each SSA begins 90 days after installation and
initial training and continues for 12 months. At that time, a renewal
agreement can be negotiated. Included in the support agreement with
Business Records Corporation is a) telephone support; b) updates/
corrections; c) new releases; d) on-going training. Annual software
support for Banyon systems is $1,785, which begins when the system are
installed. Included in the Banyon Data System support agreement is a)
phone support; b) new updates; c) nein releases; d) newsletter. Banyon
system training costs are $500 per day plus expenses and is done on
site. There is a higher cost associated with operating the BRC
software. It is our view, however, that this added cost is justified
basod on the value receivod in return.
References
BRC: The following organizations were contacted regarding Business
Records Corporation software and service performance:
City of Benson, MN; City of Litchfield, MN; City of West Band,
WI; Morrison County, MN; City of Elk River, MN.
Council Agenda - 1/22/90
I
Each user provided positive support for BRC. West Bend,
Wisconsin, did mention difficulties with implementation that
could be attributed to the distance between the two
organizations. Because they previously used a service bureau,
their expectations were different than what has actually taken
place. It should be noted that West Bend purchased seven
packages at one time and did not allow for phased implementation,
which probably contributed to sane of their frustration. It was
stated that they would not, however, change vendors.
In addition to the references above, staff viewed the operation
of the software on three separate occasions.
TER4S OF PURCHASE
Staff proposes that Council purchase the AS/Entry hardware arca software
from Business Records Corporation/IBM. Payment for the purchase is as
follows: 60% of the total cost is due at time of contract, which
represents the cost of the hardware and 10% of the cost of the software
down as earnest money.
Under this program, the City is required to pay for all of the hardware
at the time of contract; however, software payment will be made only when
the software is installed. Staff has no reason to believe that there
will be any reason to require a trial period longer than 30 days, as the
software is operating successfully in other city organizations. if there
is a problem with implementation, it is unlikely that the software would
be to blame. In addition, maintenance charges for individual systems
will not be in effect until the City has operated each application for a
period of three months.
Staff also proposes that Council purchase the personal computer hardware
from AmeriData. The purchase will be invoiced and payable 30 days after
delivery.
SYSTEM DFSICN
Attached you will find a detailed description of the proposed computer
configuration. Please note the City Ball site plan which identifies each
work station. The hardware proposed for each work station and other
information is contained on workshoets that follow. In summary, the
system consists of nine work stations, the CPU/server, and six printers.
All work stations except economic development and public works will have
access to the mini-connputer which will run the finance, utility billing,
and payroll systems. Word processing will be run at the work station
level, as personal computers are planned for three work stations that
utilize word processing. In addition, Lotus 1-2-3 applications and
graphics may be run on the work stations. Finally, the proposed
configuration calls for utilization of a single printer for word
processing to to located near the desk of the executive secretary and
main system printer and alternate printer to be located in the cagyuter
room.
Council Agenda - 1/22/90
y
It is proposed that economic development and public works computer
equipment consist of existing Wang micro -computer equipment and existing
printers for the immediate future.
The micro -computer equipment, which consists of four PCs, and a laser jet
printer will be purchased directly from AmeriData via the State
contract. There is an option here of purchasing equipment through a
local dealer utilizing IBM look-alike equipment. The cost to purchase
equipment through this alternative may be less than the cost to purchase
equipment through AmeriData but may involve more administrative efforts
in the area of purchasing, maintenance, and configuration. it is staff's
recommendation to purchase all IBM equipment because the cost
differential is not significant enough to justify mixing equipment and
operating systems.
PURCHASING PROCESS REQUIREMENTS
Generally, anytime a purchase of over $15,000 is made, the City must
solicit bids for such a purchase. In this situation, staff is proposing
that the City construe this purchase as a purchase of professional
services. Under the rules regarding purchases of professional services,
the regulations regarding purchasing requirements allow the City to
purchase the software, hardware, and vendor services directly without
going through a formal bidding process. The City of Columbia Heights
recently purchased professional services from BIC in the amount of
$62,000. So there is a precedent that has been set here by Columbia
Heights. Please refer, however, to Tom Hayes' letter for backup
regarding staff's position with regard to this method of purchase. It
appears that Tom Hayes is comfortable with purchasing services directly
from BRC without conducting a formal bid process.
B. ALTERNATIVE ACPIONS:
1. Motion to approve a contract with Business Records Corporation/IBM
authorizing purchase of computer services in the amount of $42,455.
Motion to include purchase of computer equipment and software from
AmeriData System in the amount of approximately $9,500 via the State
commuter contract. Direct staff to attempt to recover salvage value
of existing computer equipment to be replaced and be reimbursed for
undelivered software. Refer to the attachments regarding these costs
and values.
2. Motion to deny purchase at this time and request staff development of
request for proposals with purchase considered at a future date.
3. Motion to table matter pending outcome of potential litigation.
At the December 1, 1989, meeting, Council discussed the potential of
recovering damages from DMDI and/or the consultant. Staff informed
` Council that despite the injustice, it may be difficult to recover
ll damages as hoped. Please refer to the letter sent by Tom Hayes to
the City regarding this matter. Of course, this does not moan that
CI
Council Agenda - 1/22/90
the City should not try to recover damages. It's just that Council
should be aware that the potential for us being successful is not
excellent and efforts to recover damages will slow dam
implementation of the system.
Furthermore, the implementation plan calls for continued use of the
utility billing system provided by MIDI into 1990, which requires
that the City maintain a working relationship with DMDI into the
future; therefore, it does not make sense to take legal action
against DPDI until after the City is self-sufficient. If legal
action is a preferred course, it may make sense to take such action
after the City is up and running on the new system.
C. STAFF RECOMMENDATION:
Staff — ....... J. alternative #1 for reasons noted above.
D. SUPPORTING DATA:
A) System cost and function comparison; B) Configuration diagram with
organizational chart; C) Letters from Tom Hayes, City Attorney; D) Word
processing recommendation from executive secretary; E) Contract copies;
F) Wang/DMDI costs and values.
10
SYSTEM COST AND FUNCTION COMPARISON - BRC. MINI -COMPUTER VERSUS SANYOM, NETWORKED 41C"n0
January 22. 1990
WORKSTATION/
JITE4
(ERC/PC 1BANYON/ I
MAJOR APPLICATION
I
(WORD PRDC INETWORK I
------- _-------------
ECONOMIC
i ---------------- a_I_—
ISOFTWARE
---- —__._-_-__
I 60 I so I
DEVELOPMENT
jPC/TEMINAL
I so I to I
LOTUS
(PRINTER
1EXiSTiNG FUJITSU [EXISTING FUJITSU I
WORD PROCESS
i
jNe Access to INc Access to J
PC PROJECT SCIiED
JOTHER
lather systems lother systems 1
1CONSIDERATIOMS
ISingle task/user ISingle task/user J
(
10/Stand-alcne JWP/Stand-alma I
--- I------ —----- ------
I— ---------- --- I ----------------I
--- --
UTILITY
ISOFTIIARE
( $1,480 1 $3.290 J
BILLING
IPC/TERMINAL
1 $1,191 1 $2.616 1
1PRINTER
JCOMMON 1COMMOW 1
I
IFinanca I I
JOTHER
jPayroll i Finance 1
(CONSIDERATIONS
I Any Printer [ Payroll
I
IMulti-task/user I Any Printer I
(
llob Queuing ISingle-task/user I
-- --
I--c------•-----------
I----------------- I .................. I
- --- ---
OEPUTY
ISOriWARE
( 1800 1 $800 I
REGISTRAR
IPC/TERMINAL
1 12,611 1 $2,351 1
1PRINTER
(COMMON jtOMMCM 1
( I
I
JOTHER
(
iFinanco I Finance J
1CONSiDE.RATIONS
IPayroll j Payroll [
I
futility Billing I Utility bill 1
i
jAny Printer I Any Printer i
iRulti-teak/user ISingle-task/user I
J
(Job Queuing I I
iM7R0 PROC iSOFTWARE
1 1299 1 1299 1
IPC/TERMINAL
1 $2,926 I $2.516 1
1PRINTER
1 12,SOO 1 $2,500 1
i
(Finance I i
JOTWER
IPayrall I Finance I
(COMSIDERATEOMS
futility Billing i Payroll
(
[Any Printer I Utility bill 1
(
IMulti-task/user J Any Printer i
Job Queuing Single•task/user
--.j
-EM
....... — ..... �._.1---
--------- --•
-- - SYS•
GENERAL T
ISOFTWARE
1 so 1 10 1
iPC/TERMINAL
j $3.595 1 $3,315 1
PARADOX
1PRIWTER
[MUD 1CM4 1
WORD PROCESSING
ICredit - Existing PC 1 (12,963)1 (12,963)1
LOTUS GRAPHICS
i
i I I
JOT -HER
[Finance I Finance 1
ICONSIDERATIONS
1Payroli I Payroll I
I
[Utility Billing I Utility bill I
(
JAny Printer J Any Printer J
Multi-task/user Single-taak/user i
--•------•----•---------I--------------•-----I—•----•----•----_
I
[Job Queuing I I
... ............. 0
C.
0
SYSTEM COST AND FUNCTION COMPARISON - HRC, MINICOMPUTER VERSUS IIANYON, NETAORKE) MICRO
January 22, 1990
WORKSTATION/
IiTER
16.50/PC 18ANY04/ I
MAJOR APPLICATION
I
WORD PROC INET'AORK I
— -^
FINANCEJPAYROLL
- I --------------------
ISOFTWARE
I ------------ — — I ------------•---I
1 $18,232 1 $6,160 1
ITVNINAL
1 31,013 1 $3.075 1
IPRINTER
ItOMMm ICO6MON I
I
10THER
I I I
1Utility Billing (Utility Billing I
ICONSIDERATIONS
(Any Printer (Any Printer I
Multi-task/user ISingle-task/user I
I
(Job Queuing I I
--
ASSt5ia4i
_I --------------------
ISOF-.AARE
I -------- --------- -----------------I
I so 1 so I
ADMINISTRATOR
IPC/TERMINAL
1 33,325 1 33.075 1
1PRINTER
ICOMM 4 1COMMON I
LOTUS
I
I I I
WORD PROCESS
]OTHER
(Finance I Finance I
PC PROJECT SCHED
ICONS i DERAT IONS
IPayroll ] Payroll I
MISC DATA BASE
1
(Utility Billing I Utility bill I
I
(Any Printer I Any Printer I
I
IMulti-task/user ISingle-task/user I
Job Queuing
— - -
---I ------- -----------
I SOFTWARE
I so I so I
LOTUS
IT40 WANG PC'S
I so I So I
PC PROJECT SCHED
I
I I I
PARADOX
IPRINTER
1EXISTING P321 IErISTING P321 I
WORD PROCESSING
I
I I I
(OTHER
INC Access to INC Access to I
IC04SIDERATIONS
(other systema lother systems I
I
15ingle task/user ISingle task/user I
I
IWP/Stand-alone IMP/Stand-alone I
— - ----------1-SENT--
ADDED COSiS
- -
1A5 ENTRY HARDWARE
1 --- --- 1------- _._—
1 310,897 I 111,811 1
I or
I I I
INETWORK SERVER
I I I
I I I
I
ITRAINING
IUNLINITEO/INCL. 1 32,000 1
1
(WITH SUPPORT I (min/1500/day) I
... ............al.a................
a.......a...........anal.....aaa........a.I
TOTAL CAPITAL
1
I
151,907 I 141,150 1
I I I
a Hardware maintenance costs are not included in the figures above.
These costs, under either scenerio, should
not exceed annual
amount of 13,000.
Maintenance costs could be such lase depending
an the maintenance vendor. We will be researching this item during warranty Period.
O
--1�4 Quickwrijer— —
- �.---- — i1
• Toshiba P351 printer (wide carriage)
ij (existing)
]JI
6•.ra+4 caaaow.
--IBM 4019 Laser printer
( }
Iccrrl.-, i e,u.
9
E -/*D D I-Toahibm p321 printer (narro carriage)
--(amcirting)
0
1-Pujitau SP 320
printer
(existing)
f'�
TITLE: ECONOMIC DEVELOPMENT
L
USER(S): 011ie, Econ. Dev. Dir.
H
APPLICATIONS:
Primary Secondary
Word Processing Project Scheduler
Lotus
WORKSTATION MODEL: Wang PC
PRINTER DEFAULT: (p) Fujitsu SP320
CONNECTIVITY: standnlone
COMMENTS:
COSTS: Applications (none)
Workstation existing
Printer exint Ing
A
OT
TITLE` UTILITY BILLING
�L
USER(S): xxx, Util. Billing/Rcpt.
Pat, Util. Billing/Dep Reg/
W.P.
Cathy, Computer/Util. Bill.
FA
APPLICATIONS:
Pcimac
Utility Billing
c
Secondary
Finance
WORKSTATION MODEL: IBM DS3477 v/color monitor
PRINTER DEFAULT: (C) IBM 5204 Quickvritor
CONNECTIVITY: cabled to AS/Entry
COMMENTS:
COSTS: Application - Utility Billing 7480.00
possible modificntion 600.00
Workstation " " 1191.00
Printer uhnred
CI
( 6�
88
c8)
TITLE. DEPUTY REGISTRAR
USER(S): Diane, Deputy Registrar
Pat, Dep. Rog../U.D./W.P.
3
APPLICATIONS:
Primary Secondary
Deputy Registrar Word Processing
WORKSTATION MODEL: IDM PS/2 Model 30; 30 MD hard drive;
monochrome monitor
PRINTER DEFAULT: (C) IDM 5204 Quickwriter
CONNECTIVITY: cabled to AS/Entry
install PC Support and emulation
COMMENTS: software coat is an estimate only; ronoarch not
completed to determine packages available
COSTS: Application - Deputy Registrar 800.00
Workntntion 2611.00
Pflaler Alin red
9
TITLE` WORD PROCESSING
USER(S): Karen, Exec. Secretary
4
APPLICATIONS:
Primary Secondary
word Procoesing Finance
Lotue Paradox
WORKSTATION MODEL: IOM PS/2 Model 30, 30MO herd drive:
color monitor
PRINTER DEFAULT: (A) IRM 4019 (laser)
CONNECTIVITY: cabled to AS/Entry
inatall PC Support and emulation
COMMENTS:
COSTS: Application - Wordperfect W.P. 299.00
Workstntlon 2926.00
Printer 2500.00
A
O
TITLE` GENERAL SYSTEM
USER(S): Cathy, Computer/Finance
Pat, Util. Billing/W.P./
Dep. Reg.
5
APPLICATIONS:
Primary Secondary
System Operations Lotus
Finance Utility Billing
Payroll
Paradox
Word Processing
WORKSTATION MODEL: IOM PS/2 Modal 50, 60MB hard drive;
color monitor
PRINTER DEFAULT: (6) Toshiba P351
CONNECTIVITY: cablod to AS/Entry
install PC Support and emulation
COMMENTS:
COSTS: Application none
Worketntlon $3596-52963 pd 633.00
Printer shn red
C
LIS
Cgs
TITLE` FINANCE/PAYROLL
USER(S): Marlene, Bookkeeper
Cathy, Computer/Finance
Rick, Administrator
6
APPLICATIONS:
Primary Secondary
Finance Utility Billing
Payroll
c
WORKSTATION MODEL: IBM US3477 v/color monitor
PRINTER DEFAULT: (C) IBM 5204 quickvriter
CONNECTIVITY: cnbled to AS/Entry
COMMENTS:
COSTS: Application — Finance 13812.00
Payroll 4420.00
Workatntloo 1013.00
Printer nhnred
C
0
TITLE` ASSISTANT ADMINISTRATOR
USER(S): Jeff, Asst. Admin.
7
APPLICATIONS:
Primary Secondary
Word Processing Finance
Lotus Database
Project Scheduler
WORKSTATION MODEL: IRM PS/2 Model 50,301,111 hard drive, color monitor
PRINTER DEFAULT: (A) IBM 4019 (laser)
CONNECTIVITY: cnbled to AS/Entry
install PC Support and emulation
COMMENTS:
COSTS: Application none
Workstation 3325.00
Printer shared
C
0
TITLE. PUBLIC WORKS I
l
USER(S): John, Public Works Dir.
8
APPLICATIONS:
Primary Secondary
Lotus Word Processing
Porndox
WORKSTATION MODEL: Wang PC
PRINTER DEFAULT: (E) Toshibn P321
CONNECTIVITY: standalone; svl[chbox for printer (WS 8/9)
COMMENTS: future conolderntfons for this vorkntntfon-to
be developed
COSTS: Application none
Workstntlon existing
Printer existing
I
0
TITLE: PUBLIC WORKS II
c
USER(S): Roger, Street/Park Super.
9
APPLICATIONS:
Primary Secondary
Lotus Word Processing
Project Scheduler
Paradox
WORKSTATION MODAL: Wang PC
PRINTER DEFAULT: (D) Toshiba P321
CONNECTIVITY: standalone; svitchbox for printer (WS 8/9)
COMMENTS: future considerations for this vorkntntion-to
be developed
COSTS: Appliention none
Workstation existing
Printer existing
C
0
C
AS/ENTRY
CENTRAL PROCESSING
UNIT
CPU/Printer Package: $10891.00
PC Support: $308.00
Software Support: $3950.00
Training: (included)
PC SUPPORT
\ v
HARDWARE/SOFTWARE TRAINING
IBM 5204 OUICKWRITER
PRINTER
❑ ❑ ❑
u
SOFTWARE SUPPORT AGREEMENT
1Y)oni•1-t 19y t•{111�i ,1 !`1un �� rnnniy { �' tnni�l
i Fuu" AGGOuNT/N(
JYSTCM PLANM1'I.L\ pooh!
PQE S(.uT w7.UN •r �NCrl Py ONDI r,.: PAe AAm ,INiT•
Dec. %.. r4 I.t„i r2 'l:., a5 (PA,7t8 aiY} , •{:lc c=ra{;w+
r O6tEGT •C'" °a'tF.9dE •.p�+ic ++•u^•.{.I
-YirCh,
ordtr {K..+G _r ••'�� TRA. Uy a/L Y DATA E....TAy
• a.drt S. f—'C A«As 0w7
AthS Rec �y, a,l,;r .1990
inlu ++E NT ATwI r A RI FRD;R4N InITIAt1nf��
.aAfaLi:sly :.tMi1 dA fes
we: PR.(OAN INiTI AT.oN
a...sl. Y '$• PI Toa N.
drw.{ws, fi.•�s,•4c, 11 T40... dG1
DR• 4 41'. l Ir.n
j r.rtrflLt aTl .d �
• ntt.r ar k
74�'�1=tui-
MIS
• ta=id.w.G
�TM...uG-♦1prF
�• iwlwre ;
le"'1 Spilt..
! F/h': etAA6146 t.14rr;s {.. 6L
M.." kt a p;.' , eq, t
rml
<54—R
old)
!Y1
t PAYROLL
DE P Wr Y
r •
tf QI P(o6AAa�l...T. AT.o.!
/
�P0.tTlA.s:yuG �
DP. 5G,dcT DO RCG ?ACK-4a
•
CA, rlri{S
LAB!
eTXtA taw estd TF•Ji �
CcssaT,o.� p:
Drax r—. Q4Lr
tV
OUT) Q S P
nun,,_h.. �—�Qr1�.
UT ILITY 81i-L,mG
REG ISTP. AP,
�In B� PAf faRAM 1•+1 TIgT�oN �
LAB: -TAA.w-IG d DATA e, 17 Ry
� DwrA [.,T7y 1
F...: Qu dget - 1991 (pr.l..•i
JAB: PJ 11.90�erf11.A
Ful: rg lA CND
. Jevc ISP r.'.`+ i.... 0 •
..•A
w0; MItC P�R
PNAS B 0.7 .,/,+1r. 140-16
• (f�..:daft �
�µfs 3.I�f ?Olee cl;Ag
r �YsrEw PI A.aU I.IG �
• reoi e.r/Q..1.. a+t. t�6. ser �
• d•.e�:p..•ni .{ Pt.tc �
SYSTEM IMPLEMENTATION ORGANIZATIONAL CHART
CITY ADMIN ALLOCATE NECESSARY HUMAN RESOURCES
ASSISTANT
COMPUTER DEVELOPMENT PLANNING
CITY ADMIN
DEFINE USER NEED'.,.
EVALUATE PROJECT MANAGEMENT/ASSIST
EVALUATE PERSONNEL PERFORMANCE
ESTABLISH COMPUTER BUDGET
EVALUATE AND SELECT HARCWARE/SOFTWARE
MANAGEMENT
PROJECT MANAGEMENT
INFORMATICN
HARDWARE/CABLING/FURNITURE SCHEMATIC
SYSTEM
PURCHASE EQUIPMENT/SUPPLIES
COORDINATOR
ORGANIZE TRAINING OR TRAIN
COORDINATION/SCHEDULING
MANAGE CONVERSION PROCESS
OPERATIONS - SYSTEM SUPPORT
DOCUMENT INFO PROCESSING PROCEDURES
IMPLEMENTATION TEST ING/VERIFICATIOJ
MAINTAIN SYSTEM SECURITY
ON-GOING SYSTEM SUPPORT
ON-GOING HARDWARE MANAGEMENT
ON-GOING VERIFICATION/EVALUATION
END USERS OPERATIONS - DATA ENTRY
REPORT GENERATION
SYSTEM UTILIZATION
OTIIER CONVERSION WORKLOAD SUPPORT
PEF:30NNEL
(6�
0
COMPUTER SYSTEM IMPEMENTATION WORKSHEET
DATE:
SYSTEM: SYSTEM IMPLEMENTATION DATES: FROM - / /90
TO - / /90
POSITION RESPONSIBLE
PROJECT ACTIVITY ICITY IASSISTIMIS I I I I I
IADMINIADMIN ICOORDI II1I.
I I I I I I I I
ALLOCATE NECESSARY HUMAN RESOURCES
I I I I I I I I
EVALUATE PROJECT MANAGEMENT/ASSIST
I I I I I I I I
PROJECT MANAGEMENT
I I I I I I I I
HARDWARE/CABLING/FURNITURE SCHEMAT IC I _____ 1-__-1,__ I --__ 1-_-1 1 1.
I I I I I I I I
PURCHASE EQUIPMENT/SUPPLIES
I I I I I I I I
ORGANIZE TRAINING OR TRAIN I�_1_-_1�1 I__�1-_-I-__I•
I I I I I I I I
COORDINAT ION/SCHEDUL 1 NG
I I I I I I I I
MANAGE CONVERSION PROCESS
I I I I I I I I
CONVERSION WORKLOAD SUPPORT
I I I I I I I I
OPERATIONS - DATA ENTRY
I I I I I I I I
EVALUATE PERSONNEL PERFORMANCE
I I I I I I I I
OPERATIONS - SYSTEM SUPPORT
I I I I I I I I
REPORT GENERATION
I I I I I I I I
DOCUMENT INFO PROCESSING PROCEDURES
I I I I I I I I
IMPLEMENTATION TESTING/VERIFICATION
I I I I I I I I
CN -GOING SYSTEM SUPPORT
I I I I I I I I
ON-GOING HARDWARE MANAGEMENT
I I I I I I I I
CN -GOING VERIFICATION/EVALUATION
I I I I I I I I
C
4
0
Janury 13, 1990
i
Jerr 011;e ill
Ci.t,, or '1cntIc MO
.r"10 F.
r:•oadway
2.0. Boy. 11117
llot•.irello, MN 55362
RU: Data ''kna;uner.t Design Contract
?t��r,hlr. O'Neill: 7 t
You hurl t hPv„ anent some timo reviAwing the Data contract and diacusalnr the
`hortoottrign of the aervicas received from Data. In the three yeirh 81nce the
conLragL was'uni. red Into, Data has altered the snans by whloh it servIcNs its
oortract. Thr... -e have been changes in Data's basic software packame. Th- City
his, t)rcufft experiences, gained a greeter appreciation of what its corputing l
nerds are.' It now appears that the hardware/software/servioe parkn{e under the
Data cor,tract is inadequate to meet the needs of the City. Yon have asked ma t
wndLher this inadequacy Is the result of any actionable breach of contract by
Data or the result of any negligence on the part or Data or the City's con -
e,tlLant, From the Information provided to me, I do not believe there has been a
breech of eontraot at this time. I believe the City would have a dirficult time
deoonstrating actionable negligence against either Data or the consultant.
It is ey understanding that Data Is performing under the terms of its contract. l t'
There may be disagreements as to how the eontrot is to be carried out, par-
ticularly as it may relate to city services. Absent specific directives In the,
contract, I believe that Data 1s given sone latitude to exercise its pro- ' ' 1 ;,
fessional judgment in developing its service and product to most the Citys needa
within the framework of the contract. Unfortunately, this may not suit the
desires of the City, or may require contract expansion/aodlflcation to meet such
desires. Such would undoubtedly give rise to a modification of the contract 1 '
price.
From our discussions I would say that in retrospect the City did not get what it
expected. Rather than that being the result of negligence on the part of the
consultant, I believe the more likely cause would be a) lack of knowledge on the
part of the City with respect to what its exact needs would be In the future
and an unclear appreciation of the various soft and hardware options to
accomplish its goals and b) an inability to articulate its goals to the vendor
and consultant. In short the shortooaings in the contract is most probably the
shared result of the three parties talking about three separate needs all
assuming Lhe other two are discussing the same need.
If you have further questions on this issue please contact me.
Yours truly,
Thomas D. Hayes
TDH/jbt
rile Ho. 89-17738
I
C
0
Mo"ncnLo once
k 207 SOUTH WALNUT STREET
P.O. BOx EEE
MONTICELLO. MINNESOTA 55362-0888
oa.,ee a.oNe Ie�xl xi]a+m
Janury 18, 1990
Jeff O'Neill
City of Monticello
250 East Broadway
P.O. Box 1147
Monticello, MN 55362
SMITH & HAYES
ATTORNEYS AT LAW
GREGORY V, SMITH
GARY L, KRINGLE 11940.19071
TNOMASO_HAYES
RICHARD 0, CLOUGH
RU TN E. KRONLOKKEN
RE: Business Records Corporation
Dear Mr. O'Neill:
eta PNEP DaK
CINEMA PROFESSIONAL BLDG,
897 MAIN ST_ SUITE 102
ELK RIVER, MINNESOTA SS330
Ovvi{! vwONe le � it as 1 ]9Ro
I am in receipt of a copy of the letter from Business Records Corporation to you
dated January 11, 1990. You have asked me to express an opinion on whether the
services described within th eletter and its attachments are subject to
Minnesota's Municipal Contracting Law (Minn Stat Sec. 471.345), After reviewing
the statute and applicable case law, I conclude that the proposal agreement sum-
marized by the January 11, 1990 letter would not be subject to the requirements
of the statute. I come to this conclusion because the proposed agreement is not
strictly "for the sale or purchase of supplies, materials, dquipment or the ren-
tal therof, or the contruction alteration, repair or maintenance of real or per-
sonal property" (Minn Stat Sec. 471,345 subd 2), The City is purchasing a
service from Business records.
Minnesota Courts have long recognized that the statutes restricting a city's
ability to freely contract should be narrowly construed. R.E. Short Co. vs.
Minneapolis 269 NN 2d 331 (1978). Contracts for services are not subject to
bidding procedures. Schwandt Sanitation Services vs. Pnynesville 423 Not 2d 59
(Minn Ct. App 1988). Generally, blended contracts for the sale or lease of
goods and some other item subject to contracting related to the good but not
identified in Minn Stat 471.345 subd 2, are not subject to the bidding process.
Hubbard Broadcasting, Inc. vs, Metro. Seorta Facilities Comm. 381 NW 2d 842
(1986). Also Otter Tail Power Co. vs. Elbow (like 49 NW 2d 197 (1951?
(interpreting an earlier predecessor statute).
Should you have additional questions on this issue please contact me.
Yours truly,
r /
Thomas D. Hayes `f.
TDHIjbL
File No, 89-17783
WORD PROCESSING RECOl44 &TION. (K.D.)
During the month of Deceober, I spent a considerable amount of time reviewing
and oorparirg various word processing packages. These included Smartware II,
Displaywrite 4, and WordPerfect 5.1 on a PC, and Displaywrite 36 on a
mini-carg,uter. I found that all of these word processing packages were
superior to the TOM software currently being used in conjunction with the Wang
hardware.
WordPerfect 5.1, which I favored over all of the packages, is an exceptional
word processing package with many unique functions and would be a considerable
improvement over the basic word processing package in use at the present time.
C
D
J
BUSINESS RECORDS CORPORATION
MIDWEST REGION
P.O. BOX 1082, ST. CLOUD, MN 56302.1812125}2170
C City of Menti— lIn
l `
1
E 7Sn Fact a..,a.vy�.
N
T
Mr,mi'.11r,, MhLs5362-92as
Contact: Catherine Schuman
PO. Number
Software Application Purchase Rio
Financial System
'Check Reconciliation
ones - r Por-
-Payroll System
Utility Billing System
'Meter Irrvenorl
Hardware Trainina
Hardware Description: Purchase Price
CPU AS/Entry - IMB, 314MB
•wile tape/support
DI9DIey9 fnlnr ni cl+l nl. ct.,r:.,...,
with standard keyboard
Printers IBM Quickwriter with
pinwneei rorrnrcea ana dais
Personal Computers
No 9326 O
SOFTWAREIHARDWARE Date 1/11/90
CONTRACT
S
P
T
O
Telephone: 612-295-2711
Sales Ro,,Alain Aysta
Monthly Training
Rate Days Training Price SSA Rice
� n
$3,950
3 0
3 0
1 a
MoRatenthly ModellFeature Quantity BRC IBM HSA PRICE
S10-5363 1 X
3477-FC3 2 X
5204 1 X
OperelionaiSollwara SSP 6 Utilities
NOTE: Hardware will be purchased through IBM under the State purchasing contract.
Misc. Cabling
SoltwaralHardwaro Training
Total I I $42,455 I Total
0 4 455
Commencement Data Termination Data
Special instructions Includes one year SSA after initial 90 days support. 1 day hardware
training, and application training at BRC (client; gnwy travel jn+ n-gn-ni _nEnyn.,r,t
term are, 609 duo at tim) of contract. 1Q8g each _qrsfuggrA pArkaq, 4, ,nohnllgdr
and the final 10% due 30 days after installation of lent package.
Sl ad:
slant BRr
Date: Date,
1st whitoa;%c, 2na whas Cusnr, Gnsry•cwm Boo; Oomsnroo taro.&,* Dub,; (11-11an Rep ; Puaanraa m Pum"" LOS-
th
oellIE11 "all 11 11, -1 Fohil—Allith
B TRAIN,
NG ASSIST AND CONSULTATION IMI,dW.h he 1—he, I—
h 4T
.he All A -1 1 A PROFESSIONAL
ERIC AND LENT' OIZL-E;�fS` THAT TH13 AGREEMENT DOES NO,
C04STITUEE A SALE OF GOODS AND THAT THERE ARE NO WARRANTIES MADE
OR IN I EN ED E 1PALSS OR IMPLIED INCLUDING B. NOTLMITED10 T.61.,
PURPOSE
RESOD SID -011 FOP USE AND CONTROL CLIENT AT,— he. .1 .,1.
1.
Y5 IT HITE RE AIN3 OWNERSHIP OF ALL
RICH Lt AND REST TO N5ED SOFT'WAAE PRODuCT5.
AND
,
^
CL^
h So
^
"
.1 Pulchell,
10 —:11.111=1ill OFF
A of
hh,g PAT
Fit he A
SA
E. 61 WGANNQ THIS CONTRACT. THE CLIENT
AC.NOWLEOGE5 I AT THE CLIENT HAS PLAID THIS AGREEMENT.
0111013 AND IU THEP AGAMTHAT IT 13 THE COMPLETE ANDEICLUIVVE
INGS W. 17 . L A GOAL Go AND ALL OTHER COMMUNICATIONS
CONTRACT PURCHASE - DMI
SOMARE/HARDWARE
ITEM
8
TOTAL INVOICED
Hardware
1008
$42,218.47
Cocom supplies
5,925.23
Travel/Training
8,841.56
CEN
1008
2,500.00
ENC
1008
6,090.00
WP/LP
1008
5,000.00
ELEC MSG
1008
1,000.00
Tickler
1008
1,500.00
Flex
1008
2,000.00
UTL
1008
7,950.00
Proj. Sch.
1008
595.00
Report Writer
1008
2,895.00
UDM
1008
500.00
PAY
1008
3,575.00
BUD
1008
1,000.00
F Assets
1008
2,500.00
Fr Ben
758
850.00
Tax Asmt
258
875.00
Spec Asmt
258
250.00
P62
259
1,000.00
Job Cost
256
1,000.00
GAAFR
258
1,000.00
St. Inv.
N/C
Dep Reg.
N/C
Software Support
11,352.00
TOTAIS $ 110,417.26
PAID
$42,218.47
5,925.23
8,841.56
2,500.00
6,090.00
5,000.00
1,000.00
1,500.00
2,000.00
7,670.00
595.00
1,900.00
500.00
3,500.00
1,000.00
2,500.00
637.50
875.00
250.00
1,000.00
1,000.00
1,000.00
CREDIT DUE
$1,300.00
(2 modem)
0
BALANCE
<$1,300.00>
140.00 140.00
(Hi -Lo flag)
995.00
(RW II)
75.00 < 75.00>
(State tax)
850.00
875.00
250.00
1,000.00
1,000.00
1,000.00
<637.50>
<875.00>
<250.00>
<1,000.00>
<1,000.00>
<1,000.00>
10,092.00 1,260.00
$107,594.76 $ 7,485.00 ($4,737.50)
0
W
VALUE OF COMPUTER EQUIPMENT
1/1/90
WANG,
ORIGINAL
CURRENT
MODEL $
DESCRIPTION QUANTITY
COST
VALUE
CS -5
MICROVP-P8+2
1
$17,365•
$1,995
Central Processing Unit
2236MXE
Terminal Processor
2
2,000
1,190
1
*incl.
595
22C11
Dual Controller
1
*incl.
180
22C32
Triple Controller
1
750
200
DS -32
Winchester Fixed
1
*incl.
900
Disk (30MB)
DS -64 (2275)
Winchester Fixed
1
7,500
1,600
Disk (60MB)
DS -TS
Streaming Tape
1
*incl.
1,395
cassette Drive
DS -320
320KB Diskette Drive
1
unk
125
2436DE
Interactive Work
4
*incl.
1800
Station
24360W
Asynchronous Work
3
3,885
2,250
Station
PC -S5-3
Professional Computer
3
7,320
2,880
(512 KB/20MB hard disk)
PC-PM101
Wang/IBM Emulation Card
3
825
585
PC-PM004
Monochrome monitor
3
750
585
(for PC -S5-3)
PC-PM00Z
Graphics Card
3
unk
150
(for PC -S5-3)
PC-SS017-x
2200 Support Utilities
3
375
-0-
40, 70
$1'x,430
TOSHIBA
MODEL O
P351
Toshiba printer
1
1,849
1,000
P321
Toshiba printer
5
3 990
1500.
$
5 5.839
GRAND TOTAL.
$46,609
$18,930_
S
Council Agenda - 1/22/90
6. Consideration of extending Monticello Heartland Express Service to
Kiellbergs Mobile Home Park West. (J.0.)
A. REFERENCE AND BACKGROUND:
The Monticello Transportation Advisory Committee received a letter from
the Board of Directors of the Monticello Senior Center which requested
that the Monticello Heartland Express Service be extended to Kjellberg's
West Mobile Home Park. MTRAC reviewed the request and recommended that
Kjellbergs West Mobile Hare Park be served by the Heartland Express with
the added recommendation that the fare requirement be increased to twice
the normal fare. The fare requirement for the West Park would then be $2
without tickets, or the rider would need to provide two $.50 tickets
rather than one $.50 ticket per ride.
According to the management plan approved by the State, the Monticello
Heartland Express is authorized to provide service to the Kjellberg West
Mobile Home Park. As you recal , the City elected not to provide service
with the initial development of the program, as the service demand and
concurrent impact on service delivery was not well understood. It
appears now, as the system begins to mature, there is sufficient excess
capacity to service the mobile home park without a noticeable decrease in
service delivery to the residents of Monticello.
The management plan also requires that the added cost to service the
areas outside the city limits shall be recovered by a combination of
higher user fees and through added cost efficiency created by new
ridership. The proposal to double the fare requirement for this area
will contribute toward recovery of the City cost associated with the
operation of the program. According to our budget, the City portion of
the "local share" amounts to S1G,000. It was projected that fare revenue
portion of the local share would amount to $12,000. Given this ratio,
you could see that doubling the fare will not quite result in recovery of
the City portion of the total local share. On the other hard, the bus
has the capacity right now to service this area without diminishing
service to the city of Monticello; therefore, service to this area
represents an opportunity to create more ridership without added cos ,
which results in an overall lower cost per ride.
MTRAC discussed the potential of: this action setting a precedent which
would result in other outlying areas requesting transportation service
under similar conditions. After the discussion, MTRAC group decided that
the decision to extend service into the outlying areas may be made as
each request occurs. Each request can be reviewed in terms of proximity
to the city and density of population served.
in this situation, the Kjellberg Mobile Home Park West contains almost
200 residences and a population of nearly 600. In addition, the
Kjellberg East Park is already being served; therefore, trips are beim
made to this area frequently already. Finally, the demographics of the
Mobile liome Park West indicate that the residents in this area my tend
i to use the Heartland Express quite frequently.
HD
Council Agenda - 1/22/90
In summary, each request for extended service could be reviewed on its
own merits and accepted or denied accordingly. It was the view of MTRAC
that this particular extension of service did not create a precedent
which would require that the City extend service to all areas that
request it.
B. ALTERNATIVE ACTIONS:
1. Motion to accept recommendation of MTRAC and extend Monticello
Heartland Transportation service to the Kjellberg West Mobile Home
Park. Base fare to be double the normal fare.
2. Motion to deny expansion of Heartland Express service to Kjellberg
West Mobile Hone Park.
Although the Monticello Transportation Advisory Committee does not view
this extension of service as setting a precedent, it could be argued that
in actuality, extension of this service will set a precedent and may
result in continued pressure to extend service to outlying areas.
It could also be argued that doubling the bus fare will not completely
compensate the City for the City portion of the local contribution to the
budget. If complete recovery of the City portion of the local share was
a requirement when establishing outlying fare revenue, then a fare
requirement in this case would need to be $2.30 per ride rather than
$2.00 as proposed. It may be impossible, however, to collect the full
City portion of the local share by more than doubling the normal fare
because there becomes a point where the expense of the ticket will
totally inhibit use of the system in outlying areas. if the tickets
become too expensive, then obviously individuals in the outlying area
will not use the excess capacity of the system.
C. STAFF RECOMMENDATION:
Staff recommends alternative it with the understanding that MTRAC will
review requests to extend service to outlying areas on an individual
basis.
Future requests will be evaluated in terms of population density and
proximity to the city. No future extension of service will be allowed if
the system, with one bus, is unable to handle existing service demand. Ir
addition, if it appears that service to the Kjellberg West Mobile Hone
Park becomes a problem due to Increase in service demand within the city,
then service to this area can be withdrawn.
D. SUPPORTING DATA:
Copy of pertinent sections of the Transportation System Management Plan;
Copy of letter from Senior Citizens Center Board of Directors.
12
7
7�,Z
1-4
cyy-2. 1 Ilel),l 4L ee,e- e -,-Z,
dew
14
Po
C
Management Plan
Page 3
Transportation to the Big Lake Nutrition Center from points in
Monticello will be provided once a day during the noon hours.
Transportation to and from the city of Monticello will be
provided to users of the local airport which is located on
Highway 25 approximately .7 miles from the city limits. No other
transportation outside the areas mentioned is anticipated.
Of primary importance is establishment of a transportation
service level that will attract citizen of Monticello ridership,
as the City of Monticello is the primary source of local revenue
for this program. Therefore, except for service to the Nutrition
Center and airport, extension of transportation service to areas
outside the Monticello city limits will be phased in as the
service demand and concurrent iinpact on service delivery becomes
better understood. Extension of service level beyond city limits
will be considered by the City Council when it can be
demonstrated that service expansion will not diminish capability
of the system to offer desirable service level to Monticello
citizens. In addition, it must be demonstrated that the City
portion of the cost to deliver service to the outlying areas can
be recovered through a combination of user fees and through added
cost efficiency created by new ridership. At such time that the
bus service is expanded into outlying areas, the City Council of
Monticello will establish bus fares that reflect the added cost
of servicing outlying areas that do not contribute to the local
share revenue generated by taxation.
2. Type of Service to be Operated
The City will administer tnrough contract a "dial a ride" service
which will feature a minimum one hour call ahead requirement.
The program marketing effort will stress the lirportance of
calling ahead sooner than one hour before the ride is needed.
Days of Operation
The City will be providing 2,708 hours of service between
December 1, 1989, and December 31, 1990, which is equal to
10 -hour -a -day service, five days per week, not including
holidays. At this time, 10 -hour -a -day service is planned for
Monday through Friday. Initially, days of operation do not
include Saturday and Sunday. However, days and hours of
operation may be adjusted to reflect service demand experienced.
For instance, if it does not appear cost justifiable to operate
on Tuesday between 4:00 and 6:00 p.m., those hours might be
transferred to Saturday or Sunday morning. Sunday service might
also be possible in the event that additional funding becomes
available.
10/05/89 &)
A
GENERAL FUND AMOUNT CHECK NO.
CASH DISBURSEMENTS -- JANUARY -- 1990
State Treasurer - 4th quarter building surcharge
166.18
29090
Midwest Gas Co. - Utilities
3,191.93
29091
Bridgewater Telephone Co. - Phone charges
1,437.12
29092
Jeff Houselog - Recycling prize
50.00
29093
Earl F. Anderson 6 Sons Assoc., Inc. - Signs
1,434.43
29094
Scherer Sanitation - Laterine rentals for parks
31.00
29095
Monticello Times - Legal Publications
1,538.90
29096
Gruys, Johnson S Assoc. - Computer charges for December
290.00
29097
Diesel Injection Specialists, Inc. - Maint of equip.
452.29
29098
Copy Duplicating Co. - Copy machine maint. - Library
40.20
29099
Monticello Printing - Printing 6 Office supplies
50.50
29100
Purcell's Plumberty - Supplies
2.88
29101
Ruff Auto Parts, Inc. - Radio speaker
10.00
29102
Jim Hatch Sales Co. - Supplies
50.00
29103
Scharber 6 Sons Co. - Repairs
21.23
29104
L "N" R Services - Locksmith - New Locks at New Mnint. Bldg.
274.50
29105
Monticello Office Products - Office supplies
1,427.70
29106
Share Corp. - Supplies
182.68
29107
Liquor Fund - Insurance premium reimbursement
164.00
29108
Moon Motors - Parts for Park Dept.
323.88
29109
Maus Foods - Supplies
95.15
29110
Earl F. Anderson 6 Sons Assc. Inc. - Signs
664.70
29111
Gopher One State Call, Inc. - Professional Services
6.00
29112
Action Plus Temporary Services, Inc. - Temporary Services
537.08
29113
Purcell's Plumbery - Supplies
72.28
29114
Smith 6 Hayes - Legal Fees
1,462.50
29115
Dahlgren, Shardlow d Uban - Professional Services
235.87
29116
Central McGowan, Inc. - Supplies
10.43
29117
Olson 6 Sons Electric - Material 6 Labor 6 Repairs
3,436.49
29118
Commissioner of Revenue - Water Sales Tax for 4th quarter
369.45
29119
Northern States Power Co. - Utilities
8,889.43
29120
Orr-Schelen-Mayeron 6 Assoc. - Engineering Fees
11,024.98
29121
Northern Hydraulics - Repairs
87.81
29122
Minnesota Conway Fire 6 Safety Co. - Equipment - Fire Dept.
522.38
29123
Metropolitan Fire Equipment - Mnlnt. of equip. - Fire Dept.
79.44
29124
Communication Auditors - Pager repairs - Fire Dept.
43.91
29125
Hawkins d Jahnke Assoc., - Gaskets for renervolr
228.60
29126
Arrow Star - Cabinet and desk - Water Dept.
1,354.66
29127
Daly, Bohling 6 O'Connor - Professional Services
585.00
29128
Transport Clearings - Freight Charges - Blade
53.80
29129
Professional Services Group. Inc. - Supplies - Sever Coll. Dept.
928.75
29130
Olson 6 Sons Electric - Repairs - Senior Citizen Bldg.
91.13
29131
Automatic Garage Door Co. - Repairs - NSP Garage Bldg.
140.12
29132
Yonnk Landfill - Landfill charges
3,269.10
29133
Orr-Schelen-Mayaron 8 Assoc. - Engineering Fees
2,038.80
29134
Wright County State Bank - FICA, Federal b Medicare W/H
5,366.09
29135
PERA - Payroll Deductions
1,678.52
29136
L.C.M.A. Retirement Trust Co. - Payroll Deductions
630.17
29137
Rick Wolfstoller - Mileage allowance
300.00
29138
Norwest Services - Computer Payment
2,407.61
29139
Principal Mutual Life Ins. Co. - Insurance premium
7,467.44
29140
i.C.M.A. Retirement Trust - Payroll Deductions
620.17
29141
State Capitol Credit Union - Payroll Deductions
70.04
29142
GENERAL FUND AMOUNT CHECK NO.
CASH DISBURSEMENTS -- JANUARY -- 1990
PERA - Payroll Deductions - Insurance
27.00
29143
PERA - Payroll Deductions
1,614.84
29144
Wright County State Bank - FICA, Federal 6 Medicare W/H
5,059.49
29145
Dept. of Natural Resources - Watercraft, snowmobile 6 ATV Reg.
770.00
29146
Alexandria Technical College - Fire Dept. seminar reg.
45.00
29147
Kenneth 6 Susie Shultz - Final land payment -Water Tower
18,090.00
29148
Scherer Sanitation - Laterine Rentals for parks
62.00
29149
Monticello Agency, Inc. - Bond Renewal - R. Wolfsteller
50.00
29150
Monticello Fire Dept. - Firemen's wages
953.21
29151
Patty Salzwedel - Animal control contract 6 adoptions
467.00
29152
Debra Pratt - Payment on land option purchase
50.00
29153
Larry Pratt - Payment on land option purchase
50.00
29154
Jerry Hermes - Janitorial services at Library
227.50
29155
Dept. of Natural Resources - Watercraft, snowmobile d ATV Reg.
375.00
29156
Professional Services Group, Inc. - WWTP Contract payment
22,083.35
29157
Richard Anderson S 1st State Bank of St. Joseph - Down payment
on fire truck
6,500.00
29158
Anoka County Social Services - Payroll Deductions
210.16
29159
State Capital Credit Union - Payroll Deductions
70.04
29160
Otto Associates - Sketch plans - Plan. 6 Zen.
6.00
29161
L "N" R Services - New locks 6 keys - Fire Dept.
917.00
29162
Glass Hut - Malnt. of equip.
43.52
29163
Automation Supply - Computer ribbons
105.32
29164
011ie Koropchak - Travel expense
15.75
29
U.S. Postmaster - Annual box rental fee - Fire Dept.
6.50
291.)
Road Machinery 6 Supplies - Truck Rental - Xmas decoration removi1
230.00
29167
Maxwell Appraisal - Appraisal of Marvin Kramer property
500.00
29168
A T 6 T info Systems - Fire phone charges
3.96
29169
MN. Park Supervisors Assoc. - 1990 Membership Dues - R. Mack
15.00
29170
Local 049 - Union Dues
144.00
29171
Turnqulst Paper Co. - Cups - City Hall
49.69
29172
Al 6 Julie Nelson -Newspaper subscription renewal
17.80
29173
Wright County - 1990 Assessment printout
13.10
29174
MN. Animal Control Assoc. - 1990 Animal Control Dues
20.00
29175
TOTAL CASH DISBURSEMENTS FOR JANUARY S 124.699.55
LICUOR FUND
CASH DISBURSEMENTS -- JANUARY -- 1990
A14OUNT
CF_TCK
NO.
KMOM Radio Station - Advertising
44.50
14854
St. Cloud Restaurant Supply - Misc. supplies
69.75
14855
Kellen Sanitation - Garbage Service
181.70
14856
Day Distributing Co. - Beer 6 Misc. supplies
485.85
14857
Grosslein Beverage Co. - Beer
12,112.99
14858
Liefert Trucking - Freight Charges
541.11
14859
Dick Beverage Co. - Beer
1,482.85
14860
KRWC Radio Station - Advertising
272.00
14861
Monticello Times - Advertising
239.25
14862
Gruys, Johnson 6 Assoc. - Computer Charges for December
110.00
14863
Ron's Ice Co. - Ice
43.68
14864
B.A. Springborg Electric - Repairs
307.45
14865
Schmidt Cabinet - Drawers
185.76
14866
Coast to Coast - Supplies
20.45
14867
Monticello Office Supplies - Office supplies
3.12
14868
Jude Candy 6 Tobacco Co. - Supplies
637.66
14869
Bernick's Pepsi Coln - Pop
291.35
14870
Thorpe Distributing Co. - Beer
9,646.70
14871
Viking Coca Cola Co. - Pop
373.65
14872
Midwest Gas - Utilities
248.34
14873
Bridgewater Telephone Co. - Phone charges
90.67
14874
Void
---
14875
! Seven -Up Bottling Co. - Pop
216.35
14876
l Dahlheimer Distributing Co. - Beer
15,382.80
14877
Northern States Power Co. - Utilities
604.86
14878
Flaherty's Happy Tyme Co. - Supplies
276.00
14879
N.C.R. Corp. - Paper 6 Ribbons, for cash register
171.12
14880
Share Corp. - Supplies
18.84
14881
Granite City Cash Register - Supplies
241.20
14882
Commissioner of Revenue - Sales Tax for December
10.836.92
14883
L N R Services - Locksmith - New Lacks 6 Keys
. 384.00
14884
NCR Corporation - Maintenance Agreement - Cash Regtsters
•1,814.00
14885
Eagle Wine Co. - Wine
562.98
14886
CTI Services - Carpet Cleaning
50.00
14887
Monticello Vacuum Center - Vacuum bags
13.75
14888
State Capitol Credit Union,- Payroll deductions
250.00
14889
PERA - Payroll deductions
227.45
14890
Wright County State Bank - FICA, Federal 6 Medicare W/H
665.94
14891
TOTAL CASH DISBURSEMENTS FOR JANUARY
59,105.04
C