City Council Minutes 11-27-1989MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 27, 1989 - 7:00 p.m.
Members Present: Fran Fair, Warren Sinith, Ken Maus, Shirley Anderson,
Dan Blonigen
Members Absent: None
2. Approval of minutes.
Warren Smith requested that itein #7 of the ininutes be amended to include
the following sentence: Brad Fyle agreed that both lots would be used to
accoi[unodate the proposed tri-plex.
Motion was made by Fran Fair, seconded by Shirley Anderson, to approve
the November 13, 1989, ineeting ininutes as amended. Motion carried
unanimously.
3. Citizens coimnents, petitions, requests and complaints.
None forthcoming.
4. Consideration of accepting park dedication fee - West Prairie Partners
subdivision plat.
Administrator Wolfsteller explained that the City's subdivision ordinance
specifies that cash contributions made in lieu of land dedication for
park purposes inay be determined by an appraisal of the property
establishing the inarket value prior to any improvements. The developer
is responsible for submitting an appraisal; and if the Council so elects,
it can order an additional appraisal of its own. Wolfsteller went on to
outline the formula that Mr. Metcalf used in establishing a proposed
market value of $17,000 per acre. Wolfsteller explained that Mr. Metcalf
based the value of the 2-1/2 acre parcel by subtracting the value of the
two lots of the former Assembly of God Church property to arrive at a
value of $77,000 for the Assembly of God Church, which was traded for the
Baptist Church property. They also deducted the existing home that was
sold for $60,000 leaving what they feel is the market value of the 2-1/2
acre parcel at $17,000. Wolfsteller suggested that Council could accept
this formula and establish a park dedication fee at one-tenth the value
of the raw land or $1,700, or Council could ask for a separate appraisal
and, therefore, get a third party opinion regarding the value of this
property.
Dan Blonigen noted that on general principal we should be willing to seek
an appraisal. Even though the cost of the appraisal is high relative to
the park dedication fee, it is important that the park dedication fee
reflect the true inarket value of the property. Blonigen went on to say
that if you don't hold the line on the sinall items, they will come back
to haunt you later. Shirley Anderson agreed that getting an appraisal in
this situation is appropriate.
Council Minutes - 11/27/89
Ken Maus noted that the figures that Metcalf and Larson provided the City
in establishing their view of the value of the property are not arbitrary
figures, and they reflect actual costs. Maus went on to note that this
is a small item and is an example of the City just being difficult.
Warren Smith agreed that by requiring an appraisal, the City is making a
mountain out of a molehill.
Rick Wolfsteller noted that there have been other situations where the
City has not demanded an appraisal for purposes of establishing a park
dedication fee. The only reason why an appraisal is suggested at this
time is because of the somewhat complicated manner in which the market
value of the property was established.
Motion was made by Dan Blonigen and seconded by Shirley Anderson to seek
an appraisal from an appraiser that is mutually agreed upon by the City
and the developer for purposes of establishing a park dedication fee for
the Prairie West Subdivision. During discussion, Ken Maus and Warren
Smith both noted that requiring the appraisal is a waste of time and
money and coimnon sense says accept the deal. Voting in favor: Fran
Fair, Shirley Anderson, Dan Blonigen. Opposed: Ken Maus, Warren Smith.
5. Consideration of City participation in financing a portion of the
Evergreens Subdivision development cost via the assessment process.
Ken Maus reviewed the history behind the City's current policy of
encouraging private developers to finance the development of private
property for the purpose of developing residential lots. Maus noted that
this policy may have resulted in part from recoimnendations made by the
City's bond counsel. According to Maus, bond counsel was concerned that
the City's bond rating might suffer if the City's debt became excessive
due to financing of public improvement projects. Maus opened up the
discussion to Council asking for input as to what extent the City should
change its existing policy regarding financing of public improvements.
Dan Blonigen noted that the risk associated with development should be
borne by the developer and not by the City.
Assistant Administrator O'Neill reported that the cities of Elk River and
Buffalo both require a letter of credit in an amount equal to the cost of
the public improvements. Once the public projects are completed, the
cost of the improvements are assessed against the properties. As
properties are sold and assessments paid, the letter of credit supplied
by the developer is reduced in an amount equal to the sum of the
assessment payments. This financing technique protects the City 100%, as
the City can draw on the letter of credit if assessment payments are not
made by the developer. O'Neill went on to note that all public
improvements in Maple Grove are completed by the City for the purposes of
assuring quality control. In addition, Maple Grove requires that 600 of
the cost for the improvements are provided up front. The City then
assesses the remaining 40% against the improved property.
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Council Minutes - 11/27/89
At this point, a general discussion of the Evergreens subdivision
ensued. John Simola explained that the Kjellberg East Mobile Home Park
is utilizing a pond system that is too small, and the land area available
is not sufficient to handle a properly sized pond. The potential ground
water pollution problem created by this situation inight only be remedied
if the City and Kjellberg work cooperatively toward a resolution.
Ken Maus noted that the City gets into trouble when we run sewer and
water trunk lines long distances.
John Simola responded by saying that the lateral extension of sewer and
water in this case is not a major trunk line but rather is a lateral
extension from the existing systern and, therefore, is less costly than a
trunk line.
Rick Wolf steller explained that one of the main advantages for the City
completing the public improvements is that the City has control over the
quality of the development, and we have greater assurance that there will
be no long-term maintenance problems if the City installs the streets and
utilities.
Council discussed the need for the type of housing that will be created
by the Kjellberg development. Fran Fair and Dan Blonigen asked "How bad
do we need first time home buyer housing?"
Ken Maus explained that the nature of this development to some degree is
regulated by the restrictive covenants associated with the development.
Restrictive covenants include language that regulates house color and
includes garage and landscaping requirements.
Administrator O'Neill noted that the development area includes three
power lines and a natural gas line, which precludes the use of the
property for higher value housing. In addition, the land is not prime
agricultural land. It may be that this land might best be suited for the
type of development proposed.
Warren Sinith suggested that the City might want to participate in this
project only because of the associated Kjellberg East Park sewer problem.
After discussion, motion was made by Fran Fair and seconded by Dan
Blonigen to approve City utilization of the assessment process in
financing 40% of the Evergreens Subdivision development cost contingent
on the following:
a. Sewer and water services shall be extended completely through Phase I
and Phase II with streets, curb, and gutter installed with Phase I.
b. Kjellberg East Mobile Home Park must be connected to the City sewer
service at the southerly most Phase II manhole.
c. Enlargement of the mobile home park will be allowed only after the
sewer extension is complete and operational and in compliance with
City specifications. In addition, street improvements must be
complete and storm sewer plans approved and in place.
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Council Minutes - 11/27/89
d. The formula used in providing credit to the East Park area assessment
per the original developer agreement would remain. The original
developer agreement stated that the area assessment for the Kjellberg
East Mobile Home Park would be reduced an amount equal to the cost of
extending utilities from Dundas to the development. Since Kjellberg
will be paying 60a of this cost, it was concluded that this credit
could remain.
e. The area assessment formula associated with Phase I development shall
be consistent with the original developer agreement. Under the
original developer agreement, the lots with Phase I and II would be
charged an added $200 hookup fee for sewer and water, and all
properties in this area would pay a $4 per quarter surcharge on their
water bill. These funds will be used for the future extension of
trunk sewer and water to the area when it is needed.
f. Kjellberg shall be responsible for all costs associated with the lift
station and piping necessary to provide sewer service to the mobile
home park. Development of this facility will meet City requirements.
Motion carried unanimously.
6. Consideration of final payment on Project 89-1, Marvin Elwood Road
extension in the Meadows.
John Simola explained that the City of Monticello contracted with Channel
Construction to extend Marvin Elwood Road as part of the Meadows
improvement project. The estimated cost of the contract was $10,582.
Final construction cost of the project is $10,582. The City to date has
paid all but $1,000 of this amount. The work has been completed on the
extension of Marvin Elwood Road, work has been satisfactory, and the City
staff recomends final payment to Channel Construction. Final payment
will be in the amount of $1,000 and is pending receipt of the proper lien
waivers and the State of Minnesota forms.
After discussion, motion was made by Dan Blonigen and seconded by Shirley
Anderson to make final payment to Channel Construction in the amount of
$1,000 pending receipt of lien waivers and State of Minnesota forms.
Motion carried unanimously.
7. Consideration of resolutions ordering preparation of assessment roll and
setting a public hearing on adoption of assessment roll on Marvin Elwood
Road extension.
After discussion, motion was made by Fran Fair and seconded by Warren
Smith to adopt a resolution ordering the preparation of the assessment
roll and a resolution setting the public hearing for the first meeting in
January 1990. Motion carried unanimously. SEE RESOLUTION 89-36 AND
RESOLUTION 89-37.
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Council Minutes - 11/27/89
8. Consideration of accepting the improvements associated with the
Meadows 2nd Addition.
Assistant Administrator O'Neill reported that the City Engineer and
Public Works Director have indicated that the work necessary to develop
the ten new lots has been successfully completed except for minor
details, which should be completed prior to formal acceptance and final
payment.
After discussion, motion was made by Warren Smith and seconded by Fran
Fair to accept the Meadows 2nd Addition improvement subject to the
following conditions which must be completed within 30 days:
a. As built drawings showing the actual locations, etc., of the public
improvements to be submitted to the City Engineer along with a
certification from the developer's engineer that all improvements
have been installed per the specifications.
b. The developer's engineer shall submit to the City a detailed grading
plan of Lot 1, Block 1, which would outline a plan for draining this
lot to the northern Burlington Northern right-of-way.
c. An escrow amount of $250 shall be established for the purpose of
providing funds necessary to fully seed the street boulevards.
Seeding of street boulevards must be completed by September 1, 1990.
d. The warranty bond shall name the City of Monticello as the third
party beneficiary of the warranty.
e. The developer shall pay $2,612, which equals the City expenses
associated with inspecting the improvement. Please note that these
expenses were higher than originally anticipated because the
developer's contractor failed to properly notify the City of work
being done which necessitated additional time to track the project
and stay on top of the work as it occurred.
f. Receipt of lien waivers and State forms.
Motion carried unanimously.
9. Consideration of replacing electric motor for deep well turbine pump in
well #1.
John Simola noted that approximately three years ago when the 60 h.p.
motor for well #1 failed, he replaced it with a 75 h.p. motor as
recoicunended by OSM. It was expected that the 75 h.p. motor would be able
to handle the higher head pressures expected when the new water reservoir
went on line. Simola went on to explain that, unfortunately, the sizing
of the pump and discharge pressures at low tank level do not allow the
motor to perform at the proper capacity. Therefore, Sirnola recoimnended
that the City replace the 75 h.p. motor with a 100 h.p. unit.
Ken Maus and Dan Blonigen noted some frustration regarding this issue.
Dan Blonigen stated that he is getting tired of the resizing of pumps,
etc. John Simola concurred but stated the larger motor appeared to be
the best solution to the current predicament.
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Council Agenda - 11/27/89
John also stated he would suicunarize the water improvements in the next
agenda.
After discussion, motion was made by Fran Fair and seconded by Shirley
Anderson to authorize the purchase and installation of a 100 h.p. across
the line start motor using an electronic soft start or reduce voltage
started at an estimated cost of $5,000. Motion carried unanimously.
10. Consideration of amendments to snow plow/removal policy and adoption of
revised snow plowing and removal plan.
John Simola reviewed the amendinents to the snow plow/removal policy and
asked for coimnents from Council.
Shirley Anderson requested that the policy be amended by removing
references to specific organizations that will receive the benefit of
snow removal services. It was suggested that City action to remove snow
from in front of private businesses be limited to those areas where these
businesses were built and established prior to development of parking
lots where parking is vital to business. Snow removal limited to such
areas along Highway 75 and where snow removal is necessary to protect
public safety. During the discussion, a number of coments were made
regarding the City's snow removal policy.
Dan Blonigen noted that the City should charge people for snow removal if
snow removal is not done in the downtown area.
Ken Maus noted that it is important that the City define clear criteria
in establishing which businesses or institutions receive the benefit of
snow removal.
Dan Kling, City Engineer, stated that in some of the comunities he works
with the decision to haul away snow is based on safety. When it is
determined that snow must be removed from an area that has insufficient
capacity to store the snow, the cost to remove the snow is billed back to
the benefiting property owners.
Dan Blonigen agreed that the cost to remove the snow should be billed
back to the benefiting property owners. He asked, "Why should a
homeowner have to remove snow and provide snow storage area, while a
businessman receives the benefit of having the City remove snow that he
is unable to store?"
Ken Maus suggested that geographic location and history dictates and that
not all City benefits can be provided equally throughout the coimnunity.
Ken Maus noted the problem associated with City removal of parking lot
snow only after the streets have been plowed. Although this is a good
policy in terms of keeping the streets clear, many of the businesses
suffer when the lots remain snow covered for longer periods of time.
Maus suggested that before investing in additional manpower or additional
equipment, the City should seriously investigate the possibility of
having a private contractor remove snow from City parking lots.
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Council Minutes - 11/27/89
John Simola explained that the City has hired one new person in the last
ten years and that the City has the saine basic equipment that has been
updated only. This has allowed the City to operate its snow removal
process efficiently. He did note that it's not likely that we could
speed up the time it takes to plow the streets at this time.
Shirley Anderson expressed her view that the snow plowing service in
Monticello compares very favorably to the service she has seen in other
communities.
After discussion, motion was made by Warren Sinith and seconded by Fran
Fair to adopt the amended snow removal policy with the following changes:
References to business and institution naines should be dropped froin the
downtown area section of the policy on specific snow removal (hauling)
areas. The policy should be amended to read as follows:
And any other property with inadequate off-street parking along
the four lane portion of County Road 75 when snow in the parking
lane causes a public safety concern as determined by the Public
Works Director and upon approval of the City Administrator.
Motion passed unanimously.
11. Consideration of bills for the month of November.
After discussion, inotion was inade by Warren Sinith and seconded by Fran
Fair to approve the bills for the inonth of November as submitted. Motion
carried unanimously.
Other hatters.
Ken Maus suggested that the City staff consider preparing quarterly reports for
Council review. No decision was inade regarding this matter.
Assistant Administrator O'Neill requested that Council schedule a special
ineeting for the purpose of discussing computer system related issues. A
special ineeting of the City Council was scheduled for 2:00 p.m., Friday,
December 1, 1989.
There being no further discussion, ineeting adjourned.
Jeff O'Neill
Assistant Administrator
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