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City Council Agenda Packet 08-14-1995REGULAR MEETING - MONTICELLO CITY COUNCEL Monday, July 24, 19M - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault Members Absent: None Approval of minutes of the regWaxinmting held JWX 10.1998. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM PERRAULT TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD JULY 10, 1998, AS WRITTEN. Motion carried unanimnugly. Consideration of adding items to the agenda. A. conaideratinn of ending a Mrtinn of thp cost to reconatr uct 4 h Street h=kaxiink. Assistant Administrator O`Neill reported that many of the boards need to be replaced at the 4th Street hockey rink, and the Hockey Association and Parks Commission are requesting that Council approve thnding of a portion of the cost to reconstruct the existing rink by replacing rotted boards, reducing the hockey rink size by 2696, and by developing a smaller temporary hockey rink. The temporary rink could be used by the general public to avoid conflicts between hockey players and recreational skaters. The proposal calls for the City ftmding the majority of the materials and the Hockey Association providing labor. Council members expressed concerns regarding yearly installation and removal of a temporary rink and suggested that staff review the site to see if the hockey rink layout can be changed to allow two permanent hockey rinks. City Engineer Bret Weise noted that some communities are paving hockey rinks, which allows use of the area during the summer for street hockey or basketball. Council agreed that paving the hockey rink areas would be good investment, as it would allow year-round use of the property. Page 1 Council Minutes - 7/24/95 AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRIAN STUMPF TO AU'T'HORIZE THE HOCKEY ASSOCIATION TO REMOVE THE EXISTING BOARDS AT THE 4TH STREET PARR, TO APPROVE EXPENDITURES OF 57,600 TO FUND THE COST OF THE REPLACEMENT BOARDS, AND TO DIRECT STAFF TO REVIEW THE SITE AND RETURN TO COUNCIL WITH A RECOMMENDATION ON A POSSIBLE LAYOUT FOR TWO PERMANENT HOCKEY RINKS. Motion carried unanimously. B. Co sideration of amejW ung mm�mnhenmig n;�taa sewer study. Assistant Administrator O'Neill reported that this item has been withdrawn from the agenda in order to allow Orrin Thompson and Tony Emmerich additional time to review the study. Stall' will place this item on the August 14 Council agenda. Ci v ns m m ntsJnptibons_ moues s na a complain None. C Haan . agars a; 5A. gambling license- Rt- Hands CRtholir, (:h+rch. Recommendation: Adopt a resolution approving the issuance of the temporary two -daffy license. SEE RESOLUTION 95.49. A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY CLINT HERBST TO ADOPT THE CONSENT AGENDA. Motion carried unanimoualy. Mayor Fyle opened the public hearing Assistant Administrator O'Neill reported that the site plan for the Mississippi Shores Senior Housing pr*d included a small portion (5,100 aq R) of the old Broadway right-of-way, which is no longer needed for road right- of-way; therefore, Council needs to vacate this portion of old right -of --way to allow the senior housing prgject to move tbrward. O'Neill noted that Council also needs to decide whether to sell or give the land to Presbyterian Homes. The City has previously sold vacated land at a coat of 8.87 per square foot. Page 2 Council Minutes - 7/24/95 There being no comment from the public, the public hearing was closed. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY CLINT HERBST TO APPROVE THE VACATION OF A PORTION OF HART BOULEVARD AS PROPOSED AND DIRECT STAFF TO OFFER THE LAND TO PRESBYTERIAN HOMES AT A COST OF $.67 PER SQ FT, WHICH WOULD RESULT IN A PURCHASE PRICE OF $3,417. Motion carried unanimously. Public Henring=Conaideratinn of vacation of a storm water and utility ensement in a niunctinn with dev 1 nmaent of the Mia . . i Shores inr Hnnging EMiect• Mayor Fyle opened the public hearing. Assistant Administrator O'Neill reported that in order for the Mississippi Shores senior housing building to be constructed at the proposed location, it is necessary to move the sanitary sewer line slightly to the south. In order to complete this part of the project, it is necessary for the City to vacate the existing utility and storm drainage easements and to obtain new easements following the new sanitary sewer alignment. There being no comment from the public, the public hearing was closed. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO APPROVE VACATION OF THE UTILITY AND DRAINAGE EASEMENTS AS PROPOSED. Approval is contingent on City acquisition of easements necessary to accommodate sanitary sewer realignment. Motion carried unani.rn ualy. Cnn 'n +v :en of Public hp cin^nn Maglnwood Circle airm aewer n�y'eet, It was the consensus of Council to continue the public hearing on the Maplewood Circle storm sewer prgject to August 14, 1995. Puhlir henrin8 on ado on of pronoaed asseagmant rail for dphoanent utility Mlla wnd rtifiration nfana gamont roll to Ca +n i A +di nr, Mayor Fyle opened the public hearing. In the report prepared by the City Administrator, Council was asked to adopt an assessment roll for utility billing accounts which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on next year's real estate taxes if not paid by November 30, 1995. Page 3 Council Minutes - 7/24/96 There being no comment from the public, the public hearing was closed. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY BRUIN STUMPF TO ADOPT THE ASSESSNIENT ROLL FOR THE DELINQUENT CHARGES AS PRESENTED. Motion carried unwnimnusly. SEE RESOLUTION 96-60. County Commissioner Judy Rose and Darrin Lahr of NSP, representing the Economic Development Partnership of Wright County, were present to request that the City of Monticello renew its membership in the Partnership at a cost of $1,000 base fee plus $.10 per capita. Rose and Lahr noted that although there is some duplication of efforts between the City's economic developnment department and the Partnership, the Partnership's network helps attract new industries to Wright County, which in turn can benefit MontiosUo. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT IMBST AND SECONDED BY TOM PERRAULT TO APPROVE CONTINUED MEMBERSHIP IN THE ECONOMIC DEVELOPMENT PARTNERSHIP OF WRIGHT COUNTY CONTINGENT UPON THE INDUSTRIAL DEVELOPMENT COMMITTEE PAYING THE $.10 PER CAPITA AMOUNT AND THE CITY PAYING THE BASE FEE OF $1,000. Motion carried unanimously, 11. f n aid ration nfg=Unggn incren_se ta the indivirlual nenaion for Vol nn ver Firefighter Ital' Members of the volunteer fire department requested that the City Council consider increasing their retire>nent benefit from the present $1,300 per year of service to $1,326 per year. It was noted in the Administrator's report that, although interest earnings and state aid should be able to fund the increase, the City Council would be liable for the difference if the projected revenue is not sufficient to cover the pension liability. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY TOM PERRAULT TO GRANT AN INCREASE TO $1,926 PER YEAR TO THE INDWIDUAL PENSION FOR VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION MEMBERS. Voting in favor. Shirley Anderson. Tom Perrault, Clint Herbst. Abstaining: Brad Fyle and Brian Stumpf, as they are both members of the Relief Association. Motion passed. Page 4 Council Minutes - 7/24/95 12. Review of HflR ul+ni 1 m mn nd +m on w aiwater trentmpnt Plant dedgadata• Council was asked to review the technical memorandum regarding design data for expansion of the wastewater treatment plant. Public Works Director John Simola reported that community growth projection on which the 20 - year design capacity of the Wastewater Treatment Plant is based is projected on average at 75 single family and 26 multiple family unit starts per year for a total of 101 unite. Projections also include institutional and commercial growth, additional dry industry, and a 25% increase in flow from Sunny Fresh Foods. Simola also noted that it is the view of HDR and staff that there may be some excess capacity built into the proposed facility; however, downsizing the plant at this time would be costly and would delay the project, as the cost analysis has already been prepared. Simola reported that it is staffs recommendation to proceed under the original projections. AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND SECONDED BY BRIAN STUMPF TO ACCEPT THE TECHNICAL MEMORANDUM AND AUTHORIZE HDR TO PROCEED WITH THE PREPARATION OF AMENDMENTS TO THE FACILITIES PLAN BASED UPON THE INFORMATION IN THE MEMORANDUM. Motion carried unanimously. Assistant Administrator O'Neill reported that staff has prepared a proposed policy regulating final occupancy for home sites prior to completion of site improvements. The proposed policy would require funds to be placed in escrow with the City if the builder can demonstrate that a hardship exists which prohibits completion of the project prior to final occupancy. An additional $50 reinspection fee would also be required. AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY CLINT HERBST TO ADOPT POLICY ON A PRELIMINARY BASIS ONLY AND DIRECT CITY STAFF TO MAIL THE POLICY TO BUILDERS WORKING IN THE COMMUNITY FOR INPUT AT AN UPCOMING MEETING. Motion carried unanimously. Page 5 Council Minutes - 7/24195 14. Cannidpratinn of mirrhaaing g awi 6box anel an ad itio al laser printer fnr riy hal . Council was asked to consider purchasing a second laser printer, switchbox, and cabling for city hall. It was reported that the current laser printer is connected to four workstations via a small switching device; however, one of the four ports was lost due to a recent lightning strike. In addition, the Assistant Administrator does not have direct access to a printer, and the Economic Development Director's current printer needs replacing. In order to provide laser printer access to all computer users, it was proposed by City staff that Council consider purchasing a switchbox for $1,180, an IBM 4019 laser printer estimated at $2,600, and cabling for $160, for a total of $3,830. Council expressed concern regarding the high cost of the IBM laser printer and noted that individual smaller printers could be purchased for lees. After discussion, it was tho consensus of Council to direct City staff to obtain additional information regarding the cost and maintenance of smaller, individual printers with an option for color printing and report back to Council. 16. Co aid ration of 'lln fnr the month of 1 .1Y, After discussion, a motion was made by Brian Stumpf and seconded by Shirley Anderson to approve the bills for the month of July as presented. Motion carried unanimously. 16. Q1he= rriatiem. A. City Engineer Bret Weiss reported that he recently spoke with Franklin Dena of the Monticello Township Board regarding removal of the super -elevation section on Gillard Avenue where the road makes a sharp right angle turn. He noted that Donn expressed concerns about cars sliding off the road if the elevation is removed. Weise noted that it has been susggested that traffic could be slowed down on Gillard if the banked turn (super elevation) was removed where Gillard makes a right angle turn. After discussion, it was the consensus of Council to authorize the City Engineer to work with the Township on improvements to this section of Gillard Avenue. Page 6 Council Minutes - 7/24/95 B. City Engineer Bret Weiss reported that, because the River Mill subdivision was platted in a manner which bisects the drainage pattern between the storm water culvert that provides future drainage control for the area and the majority of the storm water located primarily west of the driveway, certain improvements are necessary in order to connect the storm water culvert to the drainage system. He noted that City staff has negotiated a method of dealing with the costa in order to have the improvements installed by the developer's contractor. Total construction cost is estimated at $27,000, with $15,500 to be paid by the developer and $11,500 paid by the City. Atter discussion, it was the consensus of Council to authorize the City Engineer to proceed with the trunk storm sewer modification in the River Mill subdivision as noted in his memo of July 20, 1995. There being no fiuther business, the meeting was adjourned. Karen Doty Office Manager Pap City Council Agenda - 8/14195 3A. Conalderat[on of navlra at Ptiblie Works. US.) As part of our conditional use permit, at the completion of Phase II of the Public Works building expansion, we are to pave and curb the parking area to the south of the main entrance, the areas immediately in front of the shop and storage facility and the rear areae around the salt ahed and the existing pole building. A copy of the proposed plan is enclosed for your review. We are currently in the proms of obtaining prices for class 5, curbing and black - topping this area. We are obtaining separate prices on the class 5, black - topping and curbing, the entire package could run around $30,000. In addition, there was some talk about paving the entrance on the east side of the property in the area of our storage bins; this has not been included but the City did budget some money for this a couple years ago so it could be added. Basically what we're baking for is approval of the concept originally approved under the conditional use permit and whether or not you want to ad the paving of the east entrance. A rather large gravel area has been reserved to the east of the facility for temporary storage of materials and equipment. This is not really a parking area but a temporary storage area which is used only periodically for short durations. Should we pave this area, it is very possible that the bituminous surfacing could be damaged during the staging of materials and equipment. S. AMERNATIVE ACTIONS The first alternative would be to approve the concept of the paving required by the conditional use permit and authorize City Stall' to proceed after obtaining two quotes for each of the portions of the work to be done The second alternative would be to add paving on the easterly driveway area in the area of the bine to alternative 01. The third alternative is not to proceed at this time but to delay any paving until 1996, at which time we will be doing some additional bituminous work in the area by adding a lbw parking stalls to the west of our iliddlity and overlaying a portion of the area between the buildings. It is the recommendation of the Public Works Director that City Council authorize us to proceed as outlined in alternative it or alternative #2. I hope to have a couple of Quotes on the paving portion by Monday evening's meeting. City council Aptoft - 8/14/95 There are sufficient funds available to accomplish the paving. Copy of site plan for paving areas. VENCLF, GTOR140 PACU" AMA alarm ANA WATSR olop mom AA— com, t AM aapa 0 City Council Agenda - 8/14/95 5. Continnn_et(on of n hln i�hea_*Ing on Maplemmod G rile storm sewer mmlea. as.) A. F.FFRF.N . ND BA . QRt) TND; Over the past few weeks we have re -surveyed the proposed location for ditching and storm sewer improvements to the Maplewood Circle area. We have called for locates and met with Bridge Water Telephone Company and Jones Intercable on this site. We found the 10 -foot existing easement contained a cable TV line and telephone line and that an additional telephone line was found just west of the easement on private property. It appeared that the only way to keep the TV and telephone in service without a significant interruption in service would be to dig out the telephone and TV lines as the project progressed, using a backhoe to actually dig the ditch and back slopes at the same time. The telephone company agreed to pay for the additional cost for digging out the cables. At the completion of the grading operations, the utility companies would then trench in their cables below the ditch bottom. After looking at the project and discussing it with a few of the neighbors, we proposed to keep the entire ditch bottom and easterly and southerly back -slopes within the easement. We will accomplish this by snow fencing the entire easement line so that we do not encroach into the neighboring properties, such as Tim Churchill's lot 2 and Richard Jarvis' lot 3, the two property owners concerned about damage to trees. In doing this we would not even have to move the lawn abed located on Steve Safar's property on lot 1. We would still have to relocate the two trees on his lot, however. The benefits of doing this is that we do not encroach into the properties on that side beyond the easement and, of course, the project is much more economical without having to do any further grading in that area but the downside is that there will be a one to one slope on several locations on that side. Property owners then themselves can determine in the future whether or not they want to regrade portions of their own lot to lessen the slope. Both Steve Safar on lot 1 and Mike Krier on lot 8, (where the actual flared end section of the storm sewer pipe will be located between three and four feet below the ground), did not appear to have a problem with the depth and location. The owners of lots 8, 7, and 8, on the west side of the proposed ditch would all give us additional temporary easement to do the grading and sloping at no cost. Tom Bose and myself also looked at the area of lot d, which drains into the project area. I believe Julia Heinrichs had Questioned how much of her lot drains into the project. After reviewing the situation, we feel that Tom's original numbers for the square footage are fairly accurate, if anything, they would be on the low side and a little bit more of the lot actually drains toward City Council Agenda - 8/14M the rear. We are attempting to obtain prices from local contractors and have those available for Monday night to see if we are within our original projections. Hopefully, we will have at least one bid or quote so the project can proceed. The first alternative at the close of the public hearing would be to order City Staff to proceed with the project based on the facts that the project is needed, will benefit the neighborhood, will be paid for by the benefitting property owners with the exception of the engineering and administrative costs which the Council indicated they would delete. Also that the project is under the original published cost of $10,000. The second alternative at the close of the public hearing would be not to order the improvement. C- STAFF RFdY)1tMMDATICN; If the current estimated cost of the project is still within the proposed budget of $10,000 which I anticipate it will be, I would recommend we proceed with the project. As stated at earlier Council meetings, it is unlikely that this problem will be solved with full cooperation of all the neighbor s on their own. The utilities alone are somewhat insurmountable for property owners to work with on an individual basis and, to accomplish regrading and individual spot grading here and there will cause mo:e problems and this issue will be before you again. n_ Si7PPORTINn DATA Copy of the area of benefit map along with a list of property owners with lot and block number. Additional coat information will be provided at Monday evening's meeting as it becomes available. Oak fie la Lat 77T- 4jp '4r doj* • -0 77 4,9 Naadow Gan• j MAPLEWOOD CIRCLE RESIDENTS BLOCK 2, LOT 5 BLOCK 2, LOTS Deborah Zwithng Gary Sandman 2747 Maplewood Cirde 2760 Maplewood Cirds Morrtioe0o. MN 55982 Mw&cdlo. MN 65962 BLOCK 2, LOT 7 BLOCK 2, LOT 8 Howard 6 Lyrm Lenzen Moe Krlar 2760 Maplewood Cirde 2800 Red Oak Leve Mmboe0o. MN 56982 ModBodlo, MN 55962 BLOCK 2, LOT 9 BLOCK 2. LOT 11 Greg TwWa Barb Hamiltm 2781 Meadow Lane 2821 Meadow Lane Mmrdoe0c. MN 65962 Montlodlo. MN 66962 BLOCK 2, LOT 10 BLOCK 2. LOT 12 Lfts Hames ft. Dan Vermes a (renter) CBI Inc. c. (owrw) HC99, Box 914A 2841 Meadow Lena P.O. Box 1292 Cross Lake, MN 68442 Mont mb. MN 55982 Mapto Grove, MN 65811 BLOCK 9, LOT 1 BLOCK 8, LOT 2 S. Safer & P. Weber Th Churdd8 2840 Red Oak Lane 905 Meadow Oak Orin Mondodb, MN 55962 Mmtloe0o, MN 55962 BLOCK 9, LOT 9 BLOCK 9, LOT 4 Richard Jarvis Juk Heinrift 915 Meadow 0ak Drive 925 Meadow Oak Drtm Mordioe0o, MN 65982 Mwrdc@Bo, MN 56982 c%m"Wswrwtwoaer mom 6. City Council Agenda - 8/14/95 W.O.) A Glorious Church requests a renewal of their conditional use permit allowing development of a church facility. For most of the City Council members, this is a familiar request, as A Glorious Church received their original approval for a conditional use permit in 1990 and received a renewal of the conditional use permit in May of 1994. Due to the fact that it has been over a year since A Glorious Church received their moat -recent approval, it is necessary for the organisation to come before the Planning Commission and City Council again to request an update or renewal of the conditional use permit. According to Dan Gassler, there have been no major changes to the plan as proposed; therefore, the application material provided with the previous approval is submitted with the current request. There is one change from the previous request. As you may recall, A Glorious Church requested that the paving portion of the project be delayed until a year after the building of the facility is completed. Gassler has indicated that the church has funds available to complete the entire project; therefore, he is not asking to be allowed to delay construction of the paved surface. $_ ALTERNATIVE ACTIONR: Motion to approve conditional use permit based on the conditions and findings noted in the approval granted on May 3, 1994, which are as follows: A. City approval of a parking lot, landscaping, and screening plan. Adequate screening of the parking lot area Aram abutting residential uses and landscaping must be provided. The screen must be at least 6 ft high and achieve 90% opacity. The screen must consist of either a berm, solid fence, or landscape plantings. Installation of the parking lot screen shall occur at such time that the adjoining residential property is platted (now). B. City approval of drainage plan must be obtained prior to issuance of a building permit. City Council Agenda • 8/14195 City approval of landscaping plan must be obtained prior to issuance of a building permit. The landscaping plan should include 30 overstory trees to be planted along the perimeter of the developed portion of the property and spaced approximately 35 R apart. Additional development will precipitate additional plantings. D. City approval of exterior treatment of structure must be obtained to ensure compatibility with the neighborhood. Steel exterior materials shall be limited to lei of the available wall surface. This alternative could be approved based on the finding that the church facility as proposed with conditions as attached is consistent with the comprehensive plan and is compatible with the existing and future character of the adjoining Rrl none. This is the alternative recommended by the Planning Commission. Motion to deny the conditional use permit. C. STAFF RF.COB®VNDATION; Staff and Planning Commiasion recommend alternative til. n. SUPPORTING nATAi Application materials; Meeting minutes Brom previous approvals. 31 «►.-. i � , `.moi.-��i�~� .�i''e 'ow. +r lr-- 4t tr' . +.....r. 4 — — ° I -T - tiro' qr, wa•» F7=DENNIS BATTY A CHS IITTCECTSS r�A GLORIOI 0000 OMM0�0 C1160K PARKWAY MALS., wwwaeorA /0420 sal -600 -SON 2 F ci ,t 'I -.0 E%.µ- RAVER ._N,eT MONT lcuuo EXIT TO Tw1N GIT18-5 % CM LaTL1005 CN UIZc H T so? W IL" LOC b.T i Oa L"O U T ,50CPP<_ IZ 1" • Aclo I Fj 8aD ►pPa.ax. r IL i1 • , r r L' '11.10 ►Pix. i lu a►4sa. _ (Lt" It �'`. �'^�•' fit• t`� • - eta �'„�t.� 'i .+ � � is _ v Np P Ra�CRTYt o� ON vi E�yN� wElbt' La"'GEPr � �O�K r� M . Qty=t''„vt�•,rl'C„LSZt�ir ^— i.t,:wf3M'L � �q .._ ��� 'O) �I t S i 61 1 j _ � � 2 eq .1 u ComW '4 �� p,a. ZA s AWP \L\ W 3 GyQr'"'��5 Pte. p� S4 p`L6 G ."rAt tOU 1 a a t:.sua 44.9 w ,t ! J M . j• �� R 1 ;• - Z� Lam- : ° , .*' 4•. y.� .. • • •;^�:;`-:�+; :: 4.'••L'••},� ° . : � w� ' rte,,,. Vi''`i OOt , 4w { i, ..• COP p _ Council Minutes . 5/23/94 Consideration pf a conditional use oermit allowinir a church facility to ooerate in an R-1 zone. AoDlicant. A Glorious Church. Assistant Administrator O'Neill informed City Council that A Glorious Church requests that Council grant a conditional use permit allowing a church facility to develop in an R-1 zone. The request is nearly identical to the request approved by the City Council on November 13, 1990. O'Neill noted that the only aspect of the site plan proposal for the facility that has changed since the previous approval is a request that installation of parking and landscaping be deferred one construction season subsequent to the season in which the church facility is built O'Neill noted that the Planning Commission recommended approval of the conditional use permit request as requested. It was their view that this precedent allowing deferral of parking and landscaping is acceptable because it is limited to church facilities in R^1 zones and does not apply to other institutional and commercial developments in other zoning districts. Warren Smith noted that the City loses its leverage to require parking lot and landscaping improvements once an occupancy permit is granted. Dan Gassler recognized Smith's concern but noted that his congregation has had success with its fund raising relating to development of the church. It has paid off the cost of the property and associated assessments and is now in position to develop the facility. Gassler expressed his confidence that fends will be available to complete the parking lot and landscaping within the requirements of the conditional use permit as proposed by the Planning Commission. After discission. a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the conditional use permit request as recommended by the Planning Commission with the additional requirement that an easement be provided to convey storm water &am the south edge of the property to the County Road 38 ditch system. The precise location of the easement is to be defined jointly by City staff and church representatives. Motion carried unfinim usly. F1 Planning Commission Agenda - 5/3/94 Public Rearina—Consideration of a conditional use permit allowinq a church facility to operate in an R•1 zone. ADplicant. A Glorious Church. (J.0.) A. REFERENCE AND BACKGROUND: Planning Commission is asked to consider granting a conditional use permit allowing A Glorious Church to develop a church facility at a location along East 39. The request is nearly identical to the request approved by the City Council on November 13, 1990. Those of you that were on the Planning Commission at that time recall that the request was reviewed and approved by the Planning Commission on November 7, 1990. The only aspect of the site plan and proposal for the facility that has changed is the request by the church that they be allowed to install the parking and landscaping during the construction season suI uent to the season in which the church facility is built. Due to limitations to obtaining bank financing for church facilities, it is difficult for the church organization to gather the funds necessary to do the church construction and the completion of the site improvements simultaneously. Allowing the development to occur without developing parking immediately would be precedent -setting; however, according to the Planner, the precedent would be limited to church facilities in the R-1 zone. The precedent could not be applied to justify deferral of parking and landscaping improvements for a business in a B-3 zone. Nonetheless, allowing deferral of parking and landscaping does set a precedent for other churches developing in R zones, and perhaps the Planning Commission does not want to open up this door. I do not have a complete recollection of what the City has done with other churches; however, I do recall that the Baptist Church on 4th Street was allowed to defer completion of their parking facility for a number of years; however, they were not allowed to operate without installation of a screening fence, which they did construct. 13. ALTERNATIVE ACTIONS: A I I ►ve i. Motion to approve the conditional use request with the following V �conditions (same as 11/7/90 except for "E"): • A. City approval of a parking lot, landscaping, and screening plan. Adequate screening of the parking lot area from abutting residential uses and landscaping must be provided. The screen must be at least 6 ft high and achieve 90% opacity. The screen Planning Commission Agenda - 5/3/94 must consist of either a berm, solid fence, or landscape plantings. Installation of the parking lot screen shall occur at such time that the adjoining residential property is platted. B. City approval of drainage plan must be obtained prior to issuance of a building permit. C. City approval of landscaping plan must be obtained prior to issuance of a building permit. The landscaping plan should include 30 overstory trees to be planted along the perimeter of the developed portion of the property and spaced approximately 35 ft apart. Additional development will precipitate additional plantings. D. City approval of exterior treatment of structure must be obtained to ensure compatibility with the neighborhood. Steel exterior materials shall be limited to 112 of the available wall surface. E. I�stalletion of parking lot facilities and landscaping may be dcferl,ed,to the Construction season following occupancy of the church fadlity. This alternative could be approved based on the finding that the church facility as proposed with conditions as attached is consistent with the comprehensive plan and is compatible with the existing and future character of the adjoining R•1 zone. Motion to deny the conditional use request. Planning Commission should select this alternative if it does not agree with the finding as noted under alternative +11. Planning Commission could take the strict view that the landscaping and parking should be installed simultaneous to development of the church. Since the City cannot obtain a financial guarantee that these improvements will be put in place, there is no way except for the word of the church that the City can force installation of improvements required under the ordinance. By allowing the development to occur without assurance that these items will be completed and by allowing occupancy of the structure before these items are completed, the City loses much of the power it has to assure completion of improvements without needing to take legal action. Planning Commission Agenda - 5/3/94 C. STAFF RECOMMENDATION: Staff recommends alternative til with regard to the deferral of the installation of parking and landscaping, etc. It is our view that the precedent set by allowing the deferral of these improvements has been set by previous action and that the risk of setting a city-wide precedent that could be applied to industrial/commercial uses is not significant. Finally, this alternative is sensitive to the financal constraints of churches and may represent a reasonable compromise allowing a church to develop within its financial constraints without eliminating important City landscaping and parking requirements. Copy of meeting minutes—previous application. Council Minutes - 11/13/90 outlines the fornula and method for use of the sale proceeds to finance payment of assessment debt against the original parcel. Motion carried unanimously. 5. Consideration of a conditional use permit which would a1Low operation of a church facility in an R-1 Isinale family residential) zone. Acolicant. A Glorious Church. Assistant Administrator O'Neill inforaed Council that the Planning Commission has recommended approval of the conditional use permit subject to the following conditions: 1. Planning Commission review and approval of parking lot, landscapinq, and screening plan; adequate screening of parking lot area from abutting residential uses; and landscaping must be provided. The screen must be at least six feet high and achieve 903 opacity. The screen may consist of either berm, solid fence, or landscape planting. Installation of the parking lot screen shall occur at such time that the adjoining residential property is eligible for issuance of a building permit. 2. City approval of drainage plan. 3. Planninq Commission review and approval of landscaping plan. 4. Planninq Commission review and approval of exterior _ treatment of structure to ensure compatibility with neighborhood. Steel exterior material shall be limited to one-half of the available wall surface unless otherwise approved by the Planning Commission. After discussion, motion was made by ?ran Fair, seconded by Shirley Anderson, to approve the conditional use permit along with conditions noted based on the findinq that church development as proposed with the conditions as attached is consistent with the comprehensive plan and La compatible with the existinq and future character of the adjoininq R -L zone. Motion carried unanimously. Page Planning Commission Minutes - 11/7[)a Public Hearing --A conditional use reauest to allow a church facility in an R-1 (single family residential) zone. Applicant, A Glorious Church. Jeff O'Neill, Assistant Administrator, explained to the Planning Commission members and the public A Glorious Church's request to allow a church facility in an R-1 (single family residential) zone. Mr. O'Neill explained through a video presentation how a church facility located on a portion of this subdivided unplatted tract of land would be reflected with the surrounding residential properties and residential zoning around it. He went on to explain how the landscaping requirements and parking lot screening requirements would affect this property with the proposed use of a church facility on the property. Acting Chairperson, Cindy Lamm, opened the meeting for input from the public. A Glorious Church representatives were present to answer any questions that the Planning Commission members may have on their proposed project. With no further input from the public, Acting Chairperson, Cindy Lemm, then closed the public hearing and opened the meeting for input from the Planning Commission members. Planning Commission members discussed how the property would be screened and how the proposed landscaping would remain as Is or subject to their approval at tonight's meeting. Commission members felt this would be a good use for the property and had no• problem with the church being located at this property. With no further input from Planning Commission, a motion was made by Richard Carlson, seconded by Richard Martie, to - approve the conditional use request with the following conditions: A. City approval of the parking lot landscaping and screening plan. Adequate screening of the parking lot area from abutting residential uses and landscaping must be provided. The screen must be at least 6 feet high and achieve 90% opacity. The screen may consist of either a berm, solid fence, or landscape plantings. Installation of the parking lot screen shall occur at such time that the adjoining residential property is platted. B. City approval of drainage plan must be obtained prior to Issuance of a building permit. C. City approval of landscaping plan must be obtained prior to issuance of a building permit. The landscaping plan should include 30 overstory trees to be planted along the perimeter of the developed portion of the property and spaced approximately 79 feet apart. Additional development will precipitate additional plantings. D. City approval of exterior treatment of structure must be obtained to insure compatibility with the neighborhood. Steel exterior materials shall be limited to one-half of the available wall surface. <136 U Planning Commission Minutes - 11/7/90 The above conditions were subject to the conditions that prior to a building permit application, the applicant must come back to the Planning Commission members for review of the following conditions: a. City approval of a parking lot landscaping and screening plan. Adequate screening of parking lot area from abutting residential uses and landscaping must be provided. The screen must be at least 6 feet high and achieve 90% opacity. The screen may consist of either a berm, solid fence, or landscape planting. Installation of the parking lot screen shall occur at such time that the adjoining residential property is platted. b. City approval of drainage plan prior to Issuance of building permit. C. City approval of the landscaping plan prior to issuance of building permit. The landscaping plan shall include 30 ove rstory trees to be planted along the perimeter 'of the developed portion of the property and spaced approximately 79 feet apart. Additional development to precipitate additional plantings. d. City approval of exterior treatment of structure to insure compatibility with neighborhood. Steel exterior materials shall be limited to one-half of the available - wall surface. Motion carried unanimously, with Dan McConnon absent. Reason for approval: I. Church development at this site is consistent with the comprehensive plan. 2. Church development at this site is consistent with the geographical area involved. 7. Church development will not tend to or actually depreciate the area. 4. Church development is consistent with the character of the surrounding area. 7. City Council Agenda - 8114/95 Tony Emmerich, representing Ocello, LLC, requests preliminary plat approval of the plat entitled Monticello Business Center. Following is a brief description of the plat as proposed followed by alternatives for action. LAND USE PM The lot configuration identified on the plat is identical to all conceptual plans presented to the City on which previous zoning map amendments have been based. The plat encompasses an area of 110 acres and is split into 6 lots. Each of the individual lots will be platted as outlots in this phase of development. Subsequent to this initial platting of the area into outlots, each individual outlot will be replatted as a single lot or subdivided into smaller lots at the time of development. The plat consists of 6 lots, Outlots A -F. Outlots A and F are located between Cedar Street and State Highway 25 and encompass approximately 15 acres. These lots will be zoned for B3/highway business uses. Outlots B and E are located east of Cedar Street and internal to the overall site. Outlots B and E encompass about 44 acres and are designated for B4 uses. The B4 district is the regional commercial zoning designation, which allows a wide variety of commercial uses. Outlot C is located in the northeast corner of the property and encompasses 31.4 acres. This lot is designated for business campus uses, which is an area for light manufacturing. Outlot D is located in the southeast corner of the plat and encompasses 21.2 acres and is designated for PZM uses, which allows a combination of commercial and residential uses. A design of the plat is affected by the presence of three major utility easements extending diagonally across the site. Along the southern boundary of the site is an NSP easement on which a power line is located. Diagonally through the center of the site is an Amoco gas line easement, a portion of which is utilized as the alignment for School Boulevard. The third City Council Agenda - 8/14185 easement is a UPA power line easement cutting across the northwestern corner of the property. This line separates the business campus from regional commercial uses. ADJACENT LAND USES To the south of the site is the Kjellberg East Trailer Park. The preliminary plat as proposed calls for ending Cedar Street at a location that is slightly offset from the I(jellberg Trailer Park frontage road. It is suggested that the plat may need to be modified to allow the KjeMmn Trailer Park and the Cedar Street frontage mad to be connected, thus allowing residents of the trailer park to use the Cedar Street frontage road, thus redudM unnecessary traffic on Highway 26. County Road 117 is the boundary on the east side between the Nonticello Business Center and the Klein Farms development area. Directly south of School Boulevard and east of 117 across from the PZM portion of the Ooello plat is the proposed location of a 16 -acre park. North of School Boulevard, County Road 117 becomes the boundary between the light industrial business campus area and an area designated on the Klein Farms plan as an &PUD, which is a medium density housing development. To the northwest of the Ocello plat is land zoned for heavy industrial uses. To the northeast is land zoned for regional business uses. Both types of zoning districts do not appear to create significant conflicts in land use. State Highway 25 makes up the western boundary of the plat. Currently, there is no specific land use designation for the agricultural land directly across Highway 25. It has been speculated that this land should be used for industrial or commercial uses. As you may know, the City owns approximately 60 acres across from the plat. One of the goals of the comprehensive plan will be to identify proper land uses in the area directly across from the Ocello plat. ITPQ.PPY BYOIVJM A portion of the utility system supporting the plat aro being installed with the School Boulevard project. The School Boulevard project, which is currently underway, consists of construction of the entire wp nent of School Boulevard from County Road 117 to State Highway 25. In addition to constriction of the roadway, sanitary sewer and water trunk systems are being installed underneath School Boulevard along its full length and are City Council Agenda - 8/14/95 being extended underneath State Highway 25 for future access by Nellberg West Mobile Home Park. Finally, a sanitary sewer line is being extended to within 300 R of the Kjellberg East Mobile Home Park along the lot line between Outlot E and Outlot D. Development of Cedar Street and subsequent development of internal utility systems serving each outlot will be designed and installed separately with the development of each outlot. The grading plan that has been submitted with the preliminary plat application has been updated by the comprehensive storm sewer plan prepared by the City Engineer. When the preliminary plat was submitted in early 1995, it was determined at that time that there was insufficient data on which to base a grading plan. At that time, the City was not sure as to which direction the storm water should flow from this site. In order to gain a better handle on proper design of the storm sewer system for this area, the City Council authorized preparation of a comprehensive storm sewer study for the area, which the developer funded in its entirety. The storm sewer study revealed that the most efficient way to manage the storm water from this area is to create a system of ponds and trunk storm sewer facilities to convey water in a northwesterly direction toward the low land north and west of the site. Under the long --Uma storm water plan as proposed and approved by the City Council, storm water from the Ocello site would end up in the large wetland area east of Highway 25. The long-term plan also calls for extending trunk storm sewer underneath the freeway, thus providing an outlet for the wetland area. To assist in funding the cost of the long-term plan and in accordance with the trunk storm sewer policy, the developer will be paying from $1,500 to $3,000 per acre depending on the type of land use and the level of ponding provided on-site. The City will determine the precise trunk fee amount, review the design of the grading plan, and collect the trunk storm sewer funds at the time of the development of the individual outlots. The trunk storm sewer funds collected will be used at some point in the future to construct the improvements identified in the long-term plan. Until the long-term plan is completed, the property must be developed with on-site ponding sufficient to maintain the current rate of storm water discharge from the site. This strategy reflects the education the City received via the M/O experience by requiring that the trunk storm sewer expenses be paid up-flront, befbro development occurs. City Council Agenda - 8114195 In summary, the grading plan information as identified in the preliminary plat has been superseded by the comprehensive stoma sewer done by the City Engineer. All grading of individual parcels done in conjunction with subsequent development of the site must be done in a manner to allow storage on-site with outlet flow direction towards the northwest. PROPOSED MODWICATIONS TO THE PLAT The preliminary plat fails to show easements necessary along the perimeter of each outlot. This aspect needs to be corrected. It is also suggested that the Cedar Street right-of-way be increased in width from 60 R to 80 R along the area south of School Boulevard. Finally, School Boulevard road right-of-way should be widened to 100 ft between Cedar Street and Highway 25. B. ALT): RNATME ACTIONS: Motion to approve the preliminary plat of the Monticello Business Center subject to completion of the following modifications: 1. Provide all necessary easements along lot perimeters as required by ordinance. 2. Widen Cedar Street from 60 ft to 80 ft. and widen School Boulevard to 100 ft between Highway 25 and Cedar Street. 3. Adjust Cedar Street alignment to enable connection to the Kjellberg Trailer Park fi-ontage road. 4. Subsequent development must adhere to the trunk storm water policy of the City. 8. On-site ponding shall be developed, uAcient to manage storm water produced on-aite. Motion to deny approval of the preliminary plat. City Council Agenda - 8/14/'95 C. STAFF RECOMMENDATION: Staff and Planning Commission recommend alternative #1. The plat is consistent with all planning and zoning ordinance amendments previously approved by the City. The plat provides a basic template from which future subdivision can occur. Roadway alignment and easements are consistent with the design of the utilities that are now being installed. It is our view that the preliminary plat should, therefore, be approved suiyect to the changes as noted under alternative p 1. D. SiiPPORTING DATA Copy of preliminary plat (Please excuse print quality, degradation caused by reduction.); Zoning map. 0 Council Agenda - 8/14195 8. Resew of Lauer atom &month Rnsnelnl dataMenb. (RW., J. H.) p_ RF.FF.RF.Nf!F. AN7] A (:R(li_iNil; Liquor Store Manager Joe Hargan will be in attendance at the Council meeting Monday night to review with the Council the second quarter liquor store financial statements. The following is a brief summary of the financial report which is enclosed for your review. In regard to overall sales, sales have increased $52,739 for the first 6 months of 1995 compared to 1994 and the coat of sales (purchases) have also increased $48,643 which results in a groes profit increase of a little over $6.000 for the same time period. In regard to operating expenses, there has also been an increase in this category by almost 89,000 which resulted in the operating income being actually 82,652 less than last year's income at Oda time. The main reason for the large increase in operating expenses was due to a 86,000+ expenditure for a repair to one of the compressors in the walk-in cooler which failed atter almost 20 years. Without the expenditure for this repair, the operating income would have been about 83.500 ahead of last year's income for the first 6 months. In regard to the gross profit percentages, the overall percentage of 22.9 is acceptable, but we also feel there may be an error in the wine gross profit percentage in that we do not feel that 25.2% is the correct figure. The most likely problem Bea in an incorrect coding of a purchase or possibly an inventory calculation error which normally corrects itself during the next quarter. Atter review, accept the 6 -month financial report as presented. Copy of the 6 -month financial report. MONTICELLO MUNICIPAL LIQUOR BALANCE SHEET 30Jun95 Current Assets: Cash Change Fund Investments Accounts Receivable A/R - NSF Checks Inventory Prepaid Insurance TOTAL CURRENT ASSETS Fixed Assets Land & Parking Lot Buildings Furniture & Equipment less: Accumulated Depreciation TOTAL FIXED ASSETS TOTAL ASSETS Liabilities Accounts Payable Due to EDA Fund Sales Tax Payable salaries Payable Accrued Vacation/Sick Leave Other Accrued Expenses TOTAL LIABILITIES RETAINED EARNINGS i TOTAL LIABILITIRS AND FUND BALANCE 3,905.73 1,600.00 538,433.73 (8,764.34) (298.53) 187,709.55 6,658.44 729,244.58 46,591.03 199,285.65 74,324.45 (217,981.73) ------------ 102,219.40 ------------ 831,463.98 aaeeoeeaooao (13,287.59) 100,000.00 3,702.04 2,181.49 16,672.02 695.26 ------------ 109,963.22 721,500.76 ------------ 831,463.98 ';ENERAL AND ADMINISTRATIVE EXPENSE Personal Services Salarles MONTICELLO MUNICIPAL LIQUOR 55,591 PERA REVENUE AND EXPENSES 2,426 FICA COMPARISON FOR THE YEAR 4,418 Insurance ENDING JUN 31, 1994 AND 1995 5,524 Unemployment Benefits 1994 1995 TOTAL PERSONAL SERVICES YEAR-TO-DATE YEAR-TO-DATE Supplies AMOUNT AMOUNT SALES 150 644 Liquor 186,715 207,156 Beer 425,387 448,698 Nine 69,311 77,106 Other Merchandise 19,783 20,528 Misc Non -Taxable Sales 1,178 1,626 Discounts TOTAL SALES 702,375 755,114 COST OF GOODS SOLD (535,458) (582,001) GROSS PROFIT 166,917 23.8% anaooaaaaa 173,113 22.9% aaoaaaenaa ';ENERAL AND ADMINISTRATIVE EXPENSE Personal Services Salarles 54,495 55,591 PERA 2,261 2,426 FICA 4,161 4,418 Insurance 4,862 5,524 Unemployment Benefits TOTAL PERSONAL SERVICES 65,836 9.4% 70,628 9.42 Supplies office Supplies 150 644 General Operating Supplie 3,187 3,299 Other Supplies 60 73 TOTAL SUPPLIES 3,397 .52 4,015 .5% MONTICELLO MUNICIPAL LIQUOR REVENUE AND EXPENSES COMPARISON FOR THE YEAR ENDING JUN 31, 1994 AND 1995 1994 1995 YEAR-TO-DATE YEAR-TO-DATE AMOUNT AMOUNT Other Services & Charges Professional Services 2,500 128 Maintenance Agreements Communication 565 1,078 Travel -Conference -schools 98 Advertising 2,815 2,308 Insurance 7,567 6,513 Utilities, Electric 5,162 5,444 Utilities, Heating 987 727 Utilities, Sewer & Mater 319 54 Maintenance, Equipment 635 7,547 Maintenance, Building 1,258 1,180 Maintenance, Other 74 Depreciation --Acquired As 8,013 7,762 Other Mlsc Expenses 542 ---------- 1,217 ---------- TOTAL OTHER SERVICES & CH 30,613 4.4% 34,051 4.5% TOTAL GENERAL & ADMIN EXPENS 99,846 ---------- 14.32 108,694 ---------- 14.4% TOTAL OPERATING INCOME 67,071 cocoa ova ac 9.5% 64,419 convaccocc 8.5% other Income (Expense) Interest Income 5,205 9,640 Cash Long/Short 91 41 Sale of Property ---------- ---------- TOTAL OTHER INCOME (EXPENSE) 5,297 .8% 9,681 1.3% NET INCOME (BXPENSB) 72,368 0000000000 10.3% 74,100 0000000000 9.8% Transfers In/Out ADJUSTED NET INCOME (EXPENSE 72,368 10.3% 74,100 9.8% covncoccca nc.000cona a 9) Liquor Sales Discounts Cost of Sales GROSS PROFIT - LIQUOR Beer Bales Cost of Sales GROSS PROFIT - BEER Wine Sales Cost of Sales GROSS PROFIT - WINE lsc Sales '�vost of Sales GROSS PROFIT - MISC TAXABLE Misc Non-taxable Sales Cost of sales GROSS PROFIT - MISC NON -TAX TOTAL SALES TOTAL COST OF SALES TOTAL FRBIGHT COST TOTAL GROSS PROFIT MONTICELLO MUNICIPAL LIQUOR GROSS PROFIT BY PRODUCT COMPARISON FOR THE YEAR ENDING JUN 31, 1994 AND 1995 1994 1995 YEAR-TO-DATE YEAR-TO-DATE AMOUNT AMOUNT 186,715 207,156 139,439 153,703 47,276 25.3% 53,453 25.81 425,387 448,698 334,168 ---91,219 351,407 ---97,291 21.4% 21.11 69,311 77,106 44,017 57,696 25,294 36.5% 19,410 25.21 19,783 20,528 13,810 ---- 14,404 ---- 5,973 30.2% 6,124 29.81 1,178 1,626 506 ---------- 1,259 ---------- A 672 57.0% 367 22.61 702,375 755,114 531,941 578,468 3,517 3,533 166,917 0000000000 23.81 173,113 0000008000 22.91 9. Council Agenda - 8/14/96 . (OX) The EDA requests that City Council review GMEF Loan No. 009 for compliance with the GMEF guideline& The GMEF guidelines state: 'The EDA shall have authority to approve or deny loans; however, within 21 days of EDA approval, the City Council may reverse a decision by the EDA to approve a loan if it is determined by Council that such loan was issued in violation of the GMEF Guidelines." On July 26, 1995, the EDA approved GMEF Loan No. 009 for the H -Window Company. This may sound familiar to Councilmembers because on June 27, 1994, Council reviewed and determined GMEF No. 008 was not in violation of the GMEF Guidelines. However, the 1994 approved loan dollars wera not disbursed within the 180 -day GMEF guideline for disbursement because the Small Cities Economic Recovery Grant (SCERG) did not close nor were the dollars disbursed. This was because H -Window was unclear or did not understand the terms and conditions of the SCERG. Hence Loan No. 008 became null and void. The GMEF Loan No. 009 application remains the same as the previous application. Current financial statements were submitted and analyzed as acceptable by Public Resource Group, Inc. For your review, enclosed as supporting data is the approved outline used by the EDA for determination of GMEF public purpose and policy compliance. The equipment loan was approved for $60,000 at a 6.0% feed interest rate amortized over seven years. Loan fee was set at $750, and the GMEF legal fees are the responsibility of the applicant The GMEF and SCERG loans will share a first position on the equipment. Collateral, guarantees, and other condition requirements are to be determined and prepared by the GMEF attorney. The GMEF loan approval is subject to SCERG closing. The SCERG award amount is $250,000. As of January 1996, the GMEF appropriation balance was $200,000 and, with the approval of Loan No. 009, the remaining GMEF appropriation balance is $160,000. The EDA authorized transfer of the approved Loan No. 009 ($60,000) fivm the UDAG acoount. Thereafter, the remaining balance of the total sources of funds for GMEF use is approximately $328,900. After review of the approved EDA outline for GMEF public purpose and policy compliance, the City Council is requested to consider the following actions. Council Agenda- 8/14/95 B. AI.TF.RNATIVF: ACTIONS: 1. A motion stating that City Council has determined that EDA approval of GMEF Loan No. 009 for the H -Window Company was issued without violation of the GMEF Guidelines; and therefore, Council supports the decision by the EDA for loan approval. 2. A motion stating that City Council recognizes the EDA -approved GMEF Loan No. 009 for the H -Window Company is at an interest rate lower than the GMEF guideline: 2% below Minneapolis prime rate. However, Council supports the EDA rationale; therefore, the Council ratifies the decision by the EDA for loan approval. 3. A motion stating that City Council has determined that EDA approval of GMEF Loan No. 009 for the H -Window Company was issued in violation of the GMEF Guidelines; therefore, the Council reverses the decision by the EDA for loan approval. 4. A motion to table action until the August 28th Council meeting. This alternative is riot an option as it would violate the 'within 21 days" guideline for City Council to review the EDA's decision of loan approval. C. STAFF F, ,O NDATION: Staff supports the EDA rationale and recommends alternative 82. Based on H -Window's request for an interest rate of 5% over 10 years, the EDA determined the reduction of the term length from 10 years to 7 years was the greater benefit of the 2 GMEF previsions for loan term and interest rete. This brings the request into compliance with the GMEF provision (personal property gencray 5.7 years) and recycles GMEF dollars faster. To additionally impose a higher interest rate places an additional stain on a business during critical periods. Critical periods defined as first five years of a business startup or during expansion and growth. This was the rationale used by the EDA for approval of the 5.0% interest rate. Secondly, the loan approval supports both the FDA's philosophy and the IDC's Business Retention and Expansion Program which encourages existing industrial businesses to expand in MontioeUo. Lastly, the EDA reoogdzed the H -Window expansion has more than doubled the property's estimated market value and has increased the local employment by 15 since its 1994 application. D_ Ri1PPORTIN(i DATA Copy of the GMEF criteria used by the EDA; copy of the preliminary loan application; copy of the GMEF Approval. GREATER MONTICELLO ENTERPRISE FUND CRITERIA GMEF LOAN APPLICATION REQUEST: $50,000 for equipment, 5.0% interest rate over 10 yearn, shared firot-position with the SCREG. USES OF FUNDS Equipment $350,000 TOTAL USES OF FUNDS $350,000 SOURCES OF FUNDS State of Minnesota, SCERG $250,000 (0%-5%, 10 years, ohared let/equipment) GMEF $ 50,000 (5%, 10 years, shared let/equipment) Equity $ 50,000 TOTAL SOURCES OF FUNDS $350,000 GREATER MONTICELLO ENTERPRISE FUND (GMEF) GUIDELINES BOLD PRIRT - Changes from June, 1994 application to July, 1995 application and EDA approval of 01® Loan No. 009 terms and conditions. PIIBLIC PURPOSE CRITERIA: Murat comply with four or mora of tho criteria listed below, eritoria #3 being mandatory. 1. Creates new jobu: 45 new (37.5 hpw) johs nvor two years. Currently 30 full time. 40 now (97.5 hpw) fobs over two yoaro. Currently 60 full-time. 2. Increauco the community tax have: Eotimated Markot value of the oxp.ino 1 Ott i N $ 6 9 1. 6 0 0 n r ootimat,eA Tax Capucity of $30,213. ESTIMATED MARKET VALUE - PAYABLE 1995 IS $1,426.000 OR TAX CAPACITY OF 069,996 FOR IAT 12. 3. Far,toro: Will aoolut an eutoting induntrlal buoin000 to oupond their oporationo. Tho louolnnuu and completed real estate project wino enmPntlhlo s with the comprehonoivo plan an -i ouioting zoning policies. Tho rumpany'a prndur.t fa unique, and no potential adverse environmental effects are anticipated. 4. Used as a secondary source of supplement conventional financing: Although bank financing is not. part of the. $350,000 equipment package, of the $1,R00,OG0 total package (Including the Linc of Crcdit) Christiania Bank (New York) financed 38.8% or $700,000. 5. Used as gap financing: With the SCERG and TIF reduction and the CMIF denial, a "gap" in the financial package became apparent. The GMEF is 2.7% of the total $1,800,000 package. 6. Used to assist other funds: State Funds are being requested and ReUiona.l Funds were denied. G.O. Bonds were denied and TIF assistance reduced. GREATER MONTIC_ELLO ENTERPRISE FUND POLICIES I. BUSINESS ELIGIBILITY: Industrial business: Yea. Located within city limits: Yeo, Zoned I-2. Lots 11 and 12, Block 2, OIp Credit worthy exiating businc-Ga: Yes, real eutato financinU " pproved with Chrtutlania Rank, 110uItIv0 credit analysiu by PRO and r,MIF. CURRENT FINANCIAL ANALYSIS BY PRO WITHV . . WION AS ACCEPTABLE (FINANCIAL STATEMM/TS ENDING JANE 30, 1995.) EDA rogwmto B -VI In submit som1-annual financials for monitoring purpooea. 010,000 loan per each fob creatod, $5,000 po r overy 020,000 In prnporty market valuation, or 05,000 pvr -every 020,000 inoroaoo In personal proporty uood for buulue+a pnrpn"o, whlnhover highnat• R48n,Ono (4100,000), $172,900, or 087,500 roopoctivnly, EDA Approval: $50,000 ($50,000) GMEF loan. II. FINANCING METHOD: Participation Loan: The State and GMEF will share a first position on the equipmorit.. TIT. USE OF PROCEEDS: Equipment - See enclosed list. TV. TERMS AND CONDTTIONS: Loan Size: Maximum not to exceed 50% of the remaining GMEF balance. Balance 3anuary 1994, $200,000. Appropriation balance January 1998, $200,000. Maximum loan size, $100,000. EDA Approval: 550,000 ($50,000) GMEF loan. Leveraging: Minimum Folk prtvatn/puhlIc nnn-GMEF. Maximum 30% GMEF. Minimum 10% e-iult,y of GMEF loan. TOTAL PROJECT Bank $700,000 (38.8810) EQtITTY $800,000 (44.440 STATE $250,000 CMEF $ 50,000 ( 2.771%) TOTAL EQUIPMENT STATE 0 250,000 (71.42sx) GMEF $ 50,n00 (14.28%) EQUITY $ 50,000 (14.28%) (1000 Loan Term: Personal prnperty torm not to excood life of equipment (generally 5 7 ye-wo ). EDA Approval: Amortized over 7 (7) yearn. Tntereot Rate: Fixed rate not ]eon than 21% 1-1ow Minneapollu prime rate. (Prime 7.2.51%. R- Ifi-94.) (Prime 8.758. 7-25-95, pop Flrot Bank.) F.nA Apprnval: 9.25% (5/08) flxrd interest rah•. Lnan F„r,: Minimum fun of $ 200 but nut to "xrond 1.5% of total loan projent. 06o.On0 X .018 0 $750. FDA ApprnvaI : 0760 (0750) paid at. t Ime of loon diubnrcivmon1. . Prepayment Policy: No penalty for prepayment. Deferral of Payment: 1. Approval of the EDA memberehlp by majority vnt:e. 2. Extend the balloon if unable to refinance, verification letter from two lending institutions subject. to Board approval. Interest Limitation on Guarantned Loans: Snbjer:t to security and/or reviewal by EDA. Asanmab.ility of Loan: None. Buslnese Equity Requirements: Subject to type of loan as determined by the EDA. Collateral: Mortgage, floods, oecuritice, and/or guarantees as per the GMEF atrorney. Non-performance: Tlw approved GMEF loan shall by null and void if fundo are not drawn upon or diabursed with 180 days from rlat.o , of EDA approval. EDA Approval : Null and void date, December 15, 1994. Extended to January 15, 1995; by vntc of the EDA Commisnionere. Became null and vnid on January 15, 1995. GIRO E.OAR NO. 009 becomes null and void on Jantuaey 25, 1996. CMFF legal fern: RNsponsibillty of th.- CMEF applicant. EC ^"N ITEn ;a;I . S6kIM6 MGCHIr.E ti�t,i35.iC S.E. TEMONER !if•.??%.0 OMGA ENO MINS t10.6:J.00 SINGLE EMD IODLI.,:G 19.00.00 IM3ECIlON MO TOOLING fi?.b?0.00 ALUnIM(m SAY ANGLE STOPS Alar. PUNCH DIES IFO3 VALLEY) t:,1io.:0 ALUM PUACH DIES t AUTO FEEDER 611.555.00 OVEPY1.0 CRANE f%.ovJ.00 HINGE KNOCC OUT MACHINE 115.0W.00 MAIL TABLES tT.SCJ.00 VIT GLAD SYSTEM tIJ.S:'J.00 AUTO FEED SCREYDRIVER 57.000.00 PROTECTION EEAD TODLING 1I.S00.00 DIE CUT FOAM TOOLING 6600.00 MAIL fin IOOLING t1,500.0) STRAP ANCH(R TOOLING :W.0 CONNECTOR PLATE TOOLING t600.00 NEEP MOLE PUNCH TO({I96 11.150.00 Y000 SHAPED. 1;.5(0.0) AITPE CHOP SAY 1250,00 6LAI06 SENCRISITABIES tl.Si�1.OJ GLUAINUA MILL TOOTING ti.l%J.uO FRAPE CLAMP tpS,t ?.00 AUTO RIVETER t7,5CJ.00 ALUMINUM STORAGE SYSTEM 19,60.00 ALVAINLM BORING HEADS 12.000.00 THIPD ASSEABLY LINE 130,300.00 YEATNERSTRIP/GLAZING MACHINE 115.000.00 6218358.00 GPEATER MCNT_C3,L0 ENTEP.PRISE 250 EAS: BROADWAY PWTICZLLO, MINNESOTA PRELu 1' ARY APPUCATICN FOR LOAN ApoLIC NT: The H Window Company P=vM OR TRADE NAME: 4tQ H Window BUSINESS ADDRESS: 1324 E. Oakwood Drive, Mont1Ce110, MN ».10c (y i St:eec) (C_ty i State) (Zip Code) TELEFECNE: BUSINESS f;j 295-5305 SCME ( ) -- DAME ESTAHLISEED: 1987 EMPLOYER I.D. #: 3873080 SOLE PROPRIETOR x CORPORA?ION PAKNERSBZ? MJ+Nac-* . NAME TT3.E OWNERSM % ctmm Tn President / General Manager ----- 11ka Tn arna ienal b7% FinrdinmgtnA A/ii IL% PROJECT LOCATION: H Window Factory Monticello, MN NEW BUSL`TFSS � x EXISTIM BUSINESS ) TOTAL PF.DJECT COST ESTVATE: $ 1,130f).000 PROPOSED USES: RLIVFS': LAND S AMD= OF LOAN 550.000 EXISTING BUILD= MATVRI21-1 i TERMS CONS-ux-TcN 5950,000 REQUEST= 9%, 10 Yrs MJ:C3nML° CAPr91L 3350,000 APPLIC26m,S %CRK--NG CAPr"-AL 5400,000 EQUr-"Y $50,000 OTSER 5100,000 LOAN PURPOSE Eauirmvnt TOTAL USES 51.800.000 PROPOSED BEGINNING DAT -0: Ra11 >nol ESTL`iA:"M COMPLETION DAME: TITLE 10 PROJEr: ASSETS TO BE HELD BY: OPERATING ENTX Y ALTER EGO PARTICIPATING LENDER:Christiania Rank 11 West 42nd St. 7th Floor New York, NY 10036 (Name) (Access) Mr. Armond Rnutaon-0y all 827-4800 (Contacc Person) (Telephone t) PRESM P 1 OF CTLOYMS: 60 PROJEC"M 1 Of MVWTEE4 100+ ALDI'T:CNAL PFDJEC. n*'MMATIO APPLICANT SIGNATURE: OATS SIQMD: 6 Ja ¢S' APPROVAL OF GREATER MONTICL•LLO ENTERPRISE FUNDS BY ECONOMIC DEVELPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO, MINNESOTA Preliminary Loan Application Approval. YES JUNE 23. 1995 Loan terms negotiated and agreed upon betweeen the developer, the lending institution, and the EDA Executive Director. NOT INTEREST RATE OF 6.75% rKo Ktuummp-Nub o.uz Formal Loan Application and Financial Statements analyzed by the lending institution, SDS, Inc. or city staff. PRC - JULY 20. 1995 Building and Site Plan Preliminary and/or NO PERMANENT OCCUPANCY PERMIT. Final Review. SUBJECT TO COMPLETION OF 2ND - FLOUR UIFILE, AllullluNAL PARKIN, Building Permit approval or construction AND SCREENING. commitment. YES Loan documents reviewed and/or prepared by the City Attorney. ECONOMIC DEVELOPMENT AUTHORITY APPROVAL OR DISAPPROVAL: LOAN NUMBER GMEF LOAN NO. 009 LOAN APPROVED YES BORROWER THE H -WINDOW COMPANY ADDRESS 1324 OAKWOOD DR. El BOX 206 LOAN DISAPPROVED LOAN AMOUNT 150,000 EQUIPMENT RATE 5.0% INTEREST RATE `FIXED) DATE JULY 25. 1995 TERMS AMORTIZED OVER 7 YEARS FEE $720.90 PAID AT TIME OF GMEF DISBURSEMENT. CHEF LEGAL FEES RESPONSIBILITY OF THE APPLICANT. OTHER.* A motion was made by EDA Commissioner BARBARA SCHWIENTEK to (approve - dfYd6) Greater Monticello Enterprise Funds in the amount of FIFTY THOUSAND DOLLARS AND NO CENTS (550.000.00) dollars and cents to developer THE H -WINDOW COMPANY this 25th day of AUL: Seconded by EDA Commissioner AL LARSON YEAS: BARB SCHWIENTEK CLINT HERBST NAYS: NONE AL LARSON BILL DEMEULES RON HOGLUND HARVEY KENDALL TOM PERRAULT GMEF diobursed 19 _ by Check No. EDA Treasurer DISBURSEMENT FROM UDAG ACCOUNT. CITY COUNCIL MAY REVERSE AN EDA LOAN DECISION WITHIN TWENTY-ONE DAYS OF EDA APPROVAL, CITY COUNCIL REVIEW AUGUST 14. 1995. J GMEF Approval Page 2 ACCEPTANCE OF TERMS I LWd) hereby accept the terms stated b a approved by the Economic Development Authority in and fo ty of Monticello. DATED: + IF APPROVED CHEF LOAN NO. 009 DOLLARS OF $50,000 ARE NOT DISBURSED BY JANUARY 25, 1996, THE APPROVED LOAN BECOMES NULL AND VOID. THE GMEF WILL SHARE A FIRST POSITION ON EQUIPMENT WITH THE SCREG. APPROVED CHEF LOAN NO. 009 SUBJECT TO CLOSING OF THE SCREG OF $250.000. COLLATERAL, GUARANTEES, AND OTHER CONDITION REQUIREMENTS TO BE DETERMINED AND PREPARED BY THE GMEF ATTORNEY. , C12, City Council Agenda - 8/14/95 10. Conalderation ofeallincr form nnhlic hearincr on tl_e Wastrvvater Treatment P not F H.. Pan and amen ■menta, (J.S.) A. F.FF.RF.N . Nn $A TC .RO TNn; HDR is in the process of preparing the cost estimates for the two alternatives selected for ams mann to the Facilities Plan, the sequencing batch reactor and the oxidation ditch. We expect the draft report to be delivered to the Council by August 28, 1995. We would then like to hold a workshop on September 5th or 6th to go over the addendum or amendments to the Facilities Plan and get the document in final form for a Public Hearing to be held September 11, 1995, at the regular Council Meeting. City Staff and PSG have been working with HDR on specific requirements for various portions of the expansion which will be the same whether or not we use an oxidation ditch or sequencing batch reactor. We have been looking at the head -works of the treatment plant, a new screening and grit removal system and methodologies to achieve a 'Class A' sludge. We are also meeting with various vendors on different types of equipment which may be used at the facility. Last week council member Perrault, myself and representatives firom PSG toured the Cambridge Wastewater Treatment Plant which is a carousel type of oxidation ditch with clarifiers in the middle. Both of the ditches were covered. They had a different type of aeration system which was not very practical and may be changed already. We did, however, get some good ideas especially on the architecture of the buildings. They use a combination of block buildings with metal roofs and appeared to be a good-looking yet economical type of structure. They are located right across from a hospital just as our treatment plant. There are some other similarities between the facilities, as they have a two million gallon plant and the as= type of sludge digestion we currently have. We will continue to research and investigate these two alternatives along with HDR so that we will be able to fast track once we make a decision as to which type of facility to build. We aro also in the process of obtaining quotes for soil investigative work on the lot next to the treatment plant, the landberg property which we acquired in the early 1980's. We expect to have the survey of our property and the Kruse property completed in the near future so negotiations can continue for the purchase of that property. City Council Agenda - 8114/85 Lit `q S. Ai.TF.RNATIVE A(:TION4; .� p 0 p 4 A, The first alternative is to call for a Public Hearing on the Wastewater Treatment Facilities Plan and amendments on September 11, 1995. To also set a workshop for either September 6th or 6th, to review the draft document and make any changes necessary. 2. The second alternative would be not to hold the Public Hearing at this time. r. VTAFF RECOMMENDATION: It is the recommendation of the Public Works Director that we proceed as outlined in alternative ill. We originally anticipated holding the Public Hearing in August, but the depth and review of the Facilities Plan held us up by at least on week. None. City Council Agenda - 8/14/95 1. Cnncideratinn of amending the sanitary sewer difichara ordinance relating to pr a1Hes for violailons. (J.S.) A_ REFERENCE AND RAC TNiI; At the last meeting, council member Stumpf requested that we look at increasing the amount of the fine that the Public Works Director can levy against any user who has failed to comply with any provision of the sanitary sewer discharge ordinance, orders, rules, regulations and permits under Title 14, Sanitary Sewer Discharge Control. I am currently allowed to fine no lege than $100 nor more than $1,000 for each offense. Each day that an offense continues is considered a separate offense. It seems appropriate to increase the civil penalties since the ordinance is more than a decade old. I would suggest that we increase the upper end of the fine to $5,000. In a related issue, Sunny Fresh Foods discharged approximately 2,800 pounds of raw egg to us on July 8, 1895. Also, due to a new employee and a communication breakdown, we did not receive adequate notice. Our wastewater treatment plant at this time is still hanging on the raw edge of meeting our permit limitations. For this violation of their permit, I have fined Sunny Fresh Foods $1,000. 1 have also discussed their permit violation and fine with Todd Eckberg of the enforcement section of the Minnesota Pollution Control Agency. It was Todd's suggestion that, since Sunny Fresh has had repeated spills, we suggest they hire an outside consultant to assist them with spill management and, if they do, rebate the $1,000 fine back to them. Rick Wolfsteller, Kelsie McGuire and Chuck Keyes fiom PSG and myself met with Sunny Fresh Foods representatives on Monday, August 7, 1995. We discussed several issues besides the spills and slug loads. (Such as the future discharges from Sunny Fresh, the variability of those discharges and the possibility of a restructuring of our rate system that would include demand charges for a wide variability in load). We also informed Sunny Fresh that we expected the Council to increase the monetary fines for violations of the discharge permits and that we would also ask the Council to rebate the $1,000 as recommended by the Mn/PCA, should they hire an outside consultant. A copy of the original notice and fine levy to Sunny Fresh and a copy of a summary of the meeting on Monday are enclosed for your review. City Council Agenda - 8/14/96 B_ ALTLRNATM ACTIONS: 1. The first alternative is to increase the fine section of the ordinance to $5,000, and to rebate the $1,000 fine to Sunny Fresh for July 8, 1995, if they hire an outside consultant to work an the spill control program. 2. The second alternative would be to increase the fine to $5,000 but not rebate the $1,000 fine from July 8, 1995. 3. The third alternative could be to unease the fine even higher since there is a possibility that a dug load could endanger the entire treatment plant and knock us out of oomplianoe for quite some time as the January slug load knocked us out for the entire month of February and a portion of March. 4. The fourth alternative would be not to increase the fine amount. C . STAIrR RF ,� IVDATION; It is the recommendation of the Public Works Director that the City Council increase the fine amount to $5,000 and offer to rebate the fine of $1,000 from July 8, 1995, to Sunny Fresh should they hire an outside consultant to work on the spill control progiam and load balancing. D_ SUPPORTING DATA: Copy of letter informing Sunny Fresh of their violation; copy of response letter Som Sunny Fresh; copy of meeting summary letter to Sunny Fresh; copy of the existing ordinance, wording, Section 14.8-1, Civil Penalties and the new wording, changing only the $1.000 to $5,000. 250 East Broadwav P. O. Box 1147 Monticello, ',IN 55362-9245 Phone: (612) 295.2711 Merro: (612) 333-5739 Fax: (612) 295-4404 Nan: Plant Manager SUNNY FRESH FOODS 206 West Fourth Street, Box 428 Monticello, MN 55362 July 20, 1995 O Re: BOD Dischargge and Shq Load VWatiorn of City ojMondce& s Wanewmer Ditcharge Penn& #0028 Dear Plant Manger This Law is to ofliciaUy inform you of violations of your wastewater discharge permit with the City of Manticeflo. Resat testing from Midwest Analytical Laboratories and flow information from your firm showed that on Wednesday, June 21,1995, your firm exceeded your maximum BOD discharge spccifled as 2,000 pounds in your permit The tested value for January 24, 1995, was 2,210 pounds. Additionally. we were informed after the fora that your firm discharged a dug load of approximately 3,000 pounds of whole, mw egg on July 8. 1995. Twelve days later, we still fwd ourselves ativggting with our wastewater treatment plant to keep it within our discharge permit limrtacans due to the slug load This is not the first nor the second release of whole egg by your frena in tsPt months. It is imperative that you bring your operations under control so that the release of such significant amounts of whole egg can mvm reoccur. As per Title 14, Chapter 5, Section 1B of the City's Sanitary Sewer Discharge Control Ordinance, you are hereby notified to send a detailed written statement descn'bing the causes of the slug or accidental discharge and the meauma taken to prevent any fimae occurrence. You rmut submit this to the City of Monticello within fifteen (15) calx alar days. Additioaally, under Section 14, Chapter 6, Paragraph 1, your firm is hereby fined the sum of 5200 fa the permit violation which occurred on June 21, 1995, and 51,000 for a permit violation including the slug load which occurred on July 20, 1995 Plant Manager Paget July 8, 1995. In addition, under Title 14, Chapter 6, Section 2, the City will bill Sunny Fresh Foods for additional expenses for temporary chemic2l feed, additional manpower costs of electricity and other associated coo contributed to the shag laadimg which occurredon July 8,1993. Enclosed you will find a bill for 5906.54 related to expenses by the City for releases by your firm earlier this year. Should you wish to appeal my enforcement of this ordimaoa you may apply directly with the city Administrator and file a written petition within thirty (30) days upon receipt of this letter. Your petition shall specify in detail the matter or matters imvohvd in every ground or basis on which objections are made. Said petition shall show the names, addresses and telephone numbers of all objectors and their attorney at law or mpresen tsirw. I highly recemmm'that the connive actions to be talon by your fig include emergency reaponsc to shut down your pleat if accessary and hold any release of a large quantity of raw egg umal such time it can be dihned and let into the sanitary sewer system on a slow basis. If say fume releases of such a large quantity of egg occur, again they will be costly, I will ask the City Council to modify the ctarem ordinance to allow for a much saonger monetary penalty. If you have any questions regarding this matter or if we cera be of further assistance, please feel five to contact us as soon as possibla Sincerely, ��-' , J.h,E. Simoln Public Works Director JES\beg cc: Brad Fyle, Mayor Rick Wolftcller, City Administrator Chuck Keyes, Manager, PSG, Wastewater Treatment Plant Chris Gwdwr, PSG, Chief Operator, Wastewater Treatment Plant File Frei,- Egg h Produces August 1, 1995 City of Monticello John Simola, Public works Director 250 East Broadway Monticello, MN 55362-9245 Dear Mr. Simola: I am writing to you in response to your letter dated July 20 regarding a violation of our wastewater permit on July 8. Let me start by explaining what transpired at our facility on that day. A Pasteurizer Operator, when faced with a technical problem, used poor judgement resulting in approximately 2,800 pounds of pasteurized whole egg going to drain. Our Maintenance staff was Ommediately notified which in turn followed our wastewater Reporting Policy by first notifying the waste plant. No one was available, so there was a message left. He then called Kelsey McGuire several times but received a busy signal. Lastly, he called your residence but was informed that you were not in, he did not leave a message. One other call was then placed to Kelsey McGuire's pager. At that time our Maintenance staff incorrectly assumed that the message left at the wastewater plant and the call to Kelsey's pager was sufficient notification. Short term corrective actions regarding this type of incident have been put in place and includes a stricter notification policy in which our Maintenance staff must make contact with individuals responsible for the wastewater plant, a revised contact list received from you on July 25 has been posted. we have also made some personnel changes in our processing areas to assure better accountability of product being processed. As discussed in a phone conversation with Mr. Paumen, a meeting has been set for Monday, August 7 at 9:00 a.m. in which myself, Greg Paumen, Don Roberts and Jerry Rose will be present to meet with you regarding this matter and future plans to address this ongoing situation. In closing, I would like to express my regrets that this issue has boon ongoing for as long as it has and to ensure you and the City of Monticello that we consider our wastewater a high priority in all future decisions we make at our facility. t. Sorely, , Tim�arracco TS/elm A CARGILL MRS rom{wny .,Mn� ,,,•.,. -—v,..,,..u„ �nAa,•.,�., u;,,:,t�-- – ,rsas �;Ns � r..+���:o: ice: FU. RI "J' .«ri 2 50 East Broadway P. 0. Box 1147 Monticello, MN 55362-9245 August 8, 1995 Phone: (612) 295.2711 Metro: (612) 333.5739 Fix: (612) 2954404 Attn: Mr. Tim Senacco, Plant Manager SUNNY FRESH FOODS 206 West Fouts Sb=% Box 428 Monticello, MN 53362 RE: Summary of Meeting Held on August 7,1995, Regarding %dewater Discharges from Sunny Fresh Foods Dear Mr. Suracco: At our meeting yesterday naming, City Staff contisting of AdraWst rator, Rick Wotfslt W and myself as well as representatives of PS f}, specifttaUy Kelsie McGuire and Chuck Keyes, met with you, Ong Pauman and Jerry Rose to discuss past violations of your wastewater dischuge permit. We also discussed your August I st response, general methodologies for stopping the accidental release or slug discharges and Sunny Fmsh's future discharges to the City's wastewater syustem. City Staff imprm-;cd upon you the importance to case all spills or slug loading+ from your facility immediately. We talked about our time table for doubling the size of our wastewater treatment eapacity with construction beginning in 1996, and mmpletal in lata 1997 or early 1998. We asked for a letter of cornmitmem from vow fimr indicating your best guess at your firm's discharge of wastewter and loads over the next 23 years so that we may use this data in designing our wastewater treatment plant. We aLso informed you of an upcoming change in our ordinance regarding Ute monetary amount of fines for violation of our discharge permit and told you that with the construction of our new wastewater treatment plant, we expected or rate stnuture to change and that we would be looking at o dcmand system similar to what NSP eves. In addition, we will also lock at an off-peak type of program but. we also informed you at the same time, that our hydraulic loading to the tncamteat plant has remained somewhat steady and there may be no valleys for which we can nue the off-peak Program. August 8, 1995 Mt. Tim Sanacco Page 2 You, Greg and Jerry said that you would be looking at some type of BOD monitoring to know when these spills or slug loads occur and ways to hold them within your facility, if and when they do occur. We also talked show the possibility of installing a larger tank which would hold tip to a days flow from your facility so that slug loads could be bled out easier and you could balance a demand charge, should it became a reality in the future. City Staff also stated that we would be asking the City Council at the August 28, 1995, meeting to credit you the recent fine imposed for the July 8th slog load if you would consider hiring outside expertise to assist you with spills and waste management system regarding wastewater. At the conclusion of the meeting, Jerry Rose suggested that we meet within two to throe weeks to discos progress. If at all possible, l would like your written respottse in regard to your use of our system over the next 25 years to the year 2020, based upon all information you have today. Please refer to Section 3.2, The Wet industry Flow and loads from the FDR Technical Memorandum # 1, which 1 gave you at the meeting. If you have any questions or this letter does not tepieseat the actual summary of meeting, please contact the as soon as possible. FJ,hnZL la Public Works Director JES/beg cc: Rick Wolf,teller, City Admkdsbwm Kelsie McGuire, PSG Greg Pauman, Sunny Fresh Foods ciwwNasFwrt MVFMVL 0. CHAPTER 6 PENALTIES SECTION: 14-6-1: Civil Penalties (ORIGINAL WORDING) 14-6-2: Costs of Damage 14-6-3: Falsifying Information 14-6-4: Crim!.nal Penalties 14-6-1: CIVIL PENALTIES: Any user who is found to have violated an order of the City Council or who has failed to comply with any provision of this ordinance and the orders, rules, regulations, and permits issued hereunder shall be fined not less than One Hundred Dollars ($100) nor more than One Thousand Dollars ($1,000) for each offense. Each Say on which a violation shall occur or continue shall be deemed a separate and distinct offense. In addition to the penalties provided herein, the City may recover reasonable attorney's fees, court costa, court reporters' fees, and other expenses of litigation by an appropriate action against the person found to have violated this ordinance or the order, rules, regulations, and permits issued hereunder. D 14-6-2: COSTS OF DAMAGE: Any user violating any of the provisions of this ordinance or who has a discharge which causes a deposit, obstruction, damage, or other impairment to the city's wastewater disposal system shall become liable to the City for any expense, lose, or damage caused by the violation or discharge. The Director may add to the user's charges and fees the costs assessed for any cleaning, repair, monitoring at user's location, or replacement work caused by the violation or discharge. Any refusal to pay the assessed costs shall constitute a violation of this ordinance. 14-6-3: FALSIFYING INFORMATION: Any person who knowingly makes any false statements, representation, or certification in any application, record, report, plan, or other document filed or required to be maintained pursuant to this ordinance or wastewater discharge permit, or who falsifies, tampers with, or knowingly renders inaccurate any monitoring device or method required under this ordinance, shall upon conviction be guilty of a misdemeanor. (1/23/84, #132) 14-6-4: CRIMINAL PENALTIES: (A) Any person who willfully or negligently violates any provision of this ordinance or any provision of a permit issued by the City thereunder shall bo guilty of a misdemeanor. (8) Any person who continues any violation of any provision of this ordinance or any provision of a permit issued by the City thereunder beyond the time limit provided for in the Director's written notice of violation shall be guilty of a misdemeanor. MONTICELL40 CITY ORDINANCE TITLE XIV/Chet 6/Page I SUO CHAPTER 6�%- P6NALTIES SECTION: 14-6-1: Civil Penalties (PROPOSED NEW WORDING)' 14-6-2: Costs of Damage 14-6-3: Falsifying Information 14-6-4: Criminal Penalties \ 14-6-1: CIVIL PENALTIES:• Any user who is found to have violated an order of the City Council or who has failed to comply with any provision of this ordinance and the orders, rules, regulations, and permits issued hereunder shall be fined not less than One Hundred Dollars (=100) nor more than P,Vr Thousand Dollars ($ 5,000) for each offense. Each day on which a violation shall occur or continue shall be deemed a separate and distinct offense. In addition to the penalties provided herein, the City may recover reasonable attorney's fees, court costs, court reporters' fees, and other expenses of litigation by an appropriate action against the person found to have violated this ordinance or the order, rules, regulations, and permits issued hereunder. -,X, Cw R.../d,:_ P4 - d,®� N r�/G-() 14-6-2: COSTS OF DAMAGE: Any user violating any of the provisions of this ordinance or who has a discharge which causes a deposit, obstruction, damage, or other impairment to the city's wastewater disposal system shall become liable to the City for any expense, lose, or damage caused by the violation or discharge. The Director may add to the user's charges and fees the costs assessed for any cleaning, repair, monitoring at user's location, or replacement work caused by the violation or discharge. Any refusal to pay the assessed costs shall constitute a violation of this ordinance. 14-6-3: FALSIFYING INFORMATION: Any person who knowingly makes any false statements, representation, or certification in any application, record, report, plan, or other document filed or required to be maintained pursuant to this ordinance or wastewater discharge permit, or who falsifies, tampers with, or knowingly renders inaccurate any monitoring device or method required under this ordinance, shall upon conviction be guilty of a misdemeanor. (1/23/04, 1132) 14-6-4: CRIMINAL PENALTIES: (A) Any person who willfully or negligently violates any provision of this ordinance or any provision of a permit issued by the City thereunder shall be guilty of a misdemeanor. (0) Any person who continues any violation of any provision of this ordinance or any provision of a permit issued by the City thereunder beyond the time limit provided for in the Director's written notice of violation shall be guilty of a misdemeanor. MONTICELLO CITY ORDINANCE TITLE XIV/Chet 6/Page 1` _ Council Agenda - 8/14/95 12. Consideration of setting a data for a workshoe to review the 1998 (R.W.) A. i• FRF.N ..AND BACKGROUND: It's that time of the year again and the staff is currently working on preparing a preliminary 1996 budget that the City Council must adopt by September 15, 1995. With our regular first council meeting in September being on the 11th, it is assumed that by this date the Council will adopt a preliminary budget and marimum tax levy that the City would propose for the year 1996. In order to adopt a preliminary tax levy, I'm sure the Council will want to meet in one or more workshop sessions to review the proposed budget for next year. We are anticipating having a preliminary summary budget available by the 18th of August (Friday) which will then be delivered to the Council for your review. It is suggested that we meet sometime after this date in possibly a workshop session to go over the proposed budget and especially the capital outlay -type proposals that may be included in the budget. If changes are recommended to the preliminary budget, this would give the staff additional time to make any changes and would also allow for the Council to have another workshop session if you desired. While a preliminary budget is just that, preliminary, the resulting tax levy we need to adopt by September 15 does become the final one as far as the maximum we can levy next year is concerned. From that standpoint, we have looked at the preliminary budget as being more final than preliminary when discussing the items that are included in the budget since we are not able to raise additional tax levies alter the 15th of September. Because of this, I believe it's important for the Council to be comfortable with the preliminary budget as proposed, including capital outlay -type expenditures and improvements that may be included. Likewise, if the Council is not agreement with a particular capital outlay -type purchase, it may not make sense to include it in the budget for next year if the Council is not comfortable with actually going ahead with the purchase. If the Council wants to discuss the budget in more detail, it's probably more beneficial to do so prior to the preliminary tax levy adoption rather that afterwards since we have more room for making adjustments now than we will after September 15. The schedule at this time is to deliver s preliminary budget summary proposal to the Council by August 18 and this would leave 9 weeks available for any workshop sessions you may want to schedule. We can discuss at the Council meeting what times or dates may be suitable for everyone. �. Council Agenda - 8/14/85 13. (RW.) A FFRF.N .. Ni] A l;Rn TNi1; It was recently brought to my attention by Monticello Liquors, Inc. that New Year's Eve in 1995 will fall on a Sunday. The city's current ordinance regarding Sunday liquor sales indicates that liquor cannot be sold past 12 midnight on Sundays, although other days of the week are 1 am. The Council is being requested to consider an ordinance amendment that amends the closing time for all Sundays until 1 a.m. Monday morning or at a minimum, allow Sunday sales that occur on a New Year's Eve to be extended until 1 a.m. In reviewing the state statutues, the State does allow Sunday sales of liquor to occur until l a.m., similar to the closing time allowed Monday through Saturday. For whatever reason, our ordinances had limited Sunday sales to the hours between 12 noon and 12 midnight only. I do not have any knowledge of the reason for requiring the closing at midnight on Sundays. The ordinance amendment enclosed with this agenda would amend the language to allow Sunday sales to occur until 1 a.m. Monday morning if the Sunday falls on a New Year's Eve. For all other Sundays, sales would still be limited to 12 midnight. The other alternative would be to simply amend our ordinances to match state statutes that indicate Sunday sales can occur until 1 a.m. Mondays for all weeks of the year. B. ALTRRNATIVE ACTInNS: Adopt We ordinaw;e amendment which would allow Sunday liquor sales to occur until 1 a.m. Monday morning if the Sunday is December 31st (New Year's Eve). Adopt an ordinance amendment that changes all Sunday sales closing times until 1 a.m. Monday morning, similar to what is allowed by state statute. This amendment would allow all liquor license holders to have a consistent 1 am. closing time, regardless of the day of the week. Do no adopt any changes to the hours of operation. Council Agenda - 8/14/95 [:_ STAFF ECOMMPNDATION; From a staff level, I would not have any problem with either ordinance amendment, allowing all Sunday sales until 1 a.m. or allowing sales until 1 a.m. only if the Sunday is New Year's Eve. Since state statutes do allow 1 a.m. Sunday sales, it really becomes a city's preference if we choose some other closing hour. D_ SUPPORTING DATA Copy of excerpt from City Ordinance; Copy of ordinance amendment for alternative 401. 3-2-7: PLACES INELIGIBLE FOR LICENSE: No on -sale license shall be granted except after a public hearing has been held upon at least ten (10) days published notice of such hearing. The cost of said public hearing shall be borne by the applicant. No on -sale license shall be granted to any person who does not have invested or does not propose to invest in the fixtures and structure of the proposed on -sale establishment, exclusive of land, an amount of at least Two Hundred Thousand Dollars ($200,000). The Council may provide for an independent appraisal at applicant's expense as an aid in determining the value of said premises. In the event this requirement as to investment is not complied with within one year from the date of issuance of the license, the license may be revoked. (3/9/81, 094) 3-2-8: CONDITIONS OF LICENSE: Every license shall be granted subject to the conditions in the following subsection and all other provisions of this chapter and of any other applicable provisions of this code or state law. (A) Every licensee shall be responsible for the conduct of his place of business and the conditions of sobriety and order in it. (B) Any peace officer, health officer, or any properly designated officer or employee of the City shall have the unqualified right to enter, inspect,. and search the premises of the licensee during business hours without a warrant. (C) Every licensee, except a private club licensee, shall not conduct business on the premises between the hours of one o'clock (1:00) a.m. and eight o'clock (8:00) a.m., Monday through Saturday inclusive, or on any Sunday between the hours of one o'clock (1:00) a.m. and twelve o'clock (12:00) noon, nor permit the presence of customers on the premises between the hours of one thirty o'clock (1:30) a.m. and eight o'clock (8:00) a.m., Monday through Saturday inclusive, or on any Sunday between the hours of one thirty o'clock (1:30) a.m. and twelve o'clock (12:00) noon; however, further provided that no intoxicating liquor may be sold or served on Sunday, whether directly or indirectly, except between the hours of twelve o'clock (12:00) noon and twelve o'clock (12:00) midnight, and then only in conjunction with the serving of food to persons who are seated at tables within the licensed premises. (D) All real estate taxes assessed against the licensed premises and all personal property taxes assessed against any personal property located in, on, or upon the licensed premises shall be paid or caused to be paid when due by the licensee, provided, however, that in the event the licensee and/or the owner of the licensed premises shall duly contest the validity and/or amount of any said real MONTICELLO CITY ORDINANCE TITLE III/Chet 2/Dago 3 ORDINANCE AN ENDIBUM NO. THE CI'T'Y COUNCIL OF MONTICEL.LO, MINNESOTA, DOES HEREBY ORDAIN THAT Tfl'LE 8, CHAPTER 2, SEMON 8 (C), OF THE MONI'ICELLO CITY ORDINANCE PERTAINING TO THE HOURS OF OPERATION FOR LIQUOR LICENSE HOLDERS BE A(1(iENDED BY ADDING TM FOLLOWING LANGUAGE: 3-2-8: CONDITIONS OF LICENSE (Cr Every licensee,...; however, timber provided that no intoxicating liquor maybe sold or served on Sunday, whether directly or indirectly, except between the hours of twelve o'clock (12:00) noon and twelve o'clock (12:00) midnight, unteas or gryed .rail one o'!ock (1,M) am.. Mon4y. and then only in cor{junction with the serving of food to persons who are seated at tables within the licensed premises. Adopted by the Council We 14th day of August, 1995. City Administrator CITY OF MONTICELLO MONTHLY BUILDING DEPARTMENT REPORT MONTH OF JULY 1998 ThI3 same Month Lest Year This rear Month AIN usl Year To Date To Data 30 23 122 134 51.806.600.00 $657.500.00 $3.842,100.00 $4,968,900.00 $16241.05 64.77041 528,114.20 650,732.40 $801.55 $327.00 $1,904.54 $2.473.47 4 2 20 27 $178,800.00 544.100.00 $823.000.0 41.834.800.00 $19,48722 $450.90 $6,517.08 $30.289.65 588.40 $22.05 5320.00 5805.90 0 1 11 5 $0.00 $472200.00 41.031.800.00 $717.000.00 $0.00 43204.83 $11,311.81 55,415.30 w.0 s238.10 $815.55 $358.50 20 10 56 65 5968.00 $256 Do $1.477.00 $3.18500 slow $500 928.00 432.50 20 WI 7L1 69 5798.00 62,908.50 $10.00 434.50 0 0 3 3 SHOD $0.00 $0.00 $0.00 $0 Do 930.0 9210.00 $000 $0.00 61.50 w50 7. 21g 303 11-71p.4OQ0Q 61.17�1b00 Q17 t8.098.700003L23Q,7y10 937172.27 5805.1 Qr OLD 947.449?2_ja4,45688. 2909 q 059015 (13,089.59 43.705.37 I FEES NILMBER TO DATE N-1b9f ppri &ec r vp This Year Laet Yaar 18 $15,46048 $710.35 51,540,700,00 53 44 0 0 0 0 0 1 0 $0.00 $0.00 $0.00 4 1 0 1 2 1 s9000 63,50 57,000.00 4 5 0 0 0 sow $000 $0.00 0 0 11 6.590,60 927.70 457,900.00 59 57 4 $19.46722 sm 40 1178.800.00 23 19 0 $o.Do sow $0.00 4 e 20 498800 610.0 65 66 0 20 $79500 slow 69 Ne 0 0 0 woo $000 $0,00 10 15 2 0 0 D 9 --w9 - AA- - - - 1 11. 74 537.4n27 _i2Q4B3.31.7 X449 --- �^ T�1 --- -. 21? INFORMATIONAL ITEM Re: Change of Days of Service for Recycling and Garbage Service Matt Ptlugi dVaAo Rubbish has contacted me regarding adding a third day for pick- up of garbage in Monticello. It appears that the change we made moving Monday pick- up from Minnesota Street to Highway 25 has not improved the situation. We currently have two days which are not very manageable for Vasko and D & K Vasko has proposed to add Wednesday as the third day for residential garbage services and D & K is proposing to expand their Wednesday pick-up which is apartments only, to include residential. The following is the area and dates proposed: Monday Plek-119: Monday pick-up would revert back to west of the center of Minnesota Street as it has been in the past. Wednesday Piek-Uo• Wednesday pick-up would be the rapidly expanding area south of I.94 and east of County Road 117. Etekyding services on Wednesday would also include the apartments using W -gallon roll around containers as it has been in the past in other areas of the community. Thursday Piek-Up: Thursday pick-up would be that portion of Monticello which was previously Thursday pick-up; that would be from the center of Minnesota Street to the eastern edge of the community on Gillard, north of 1.94. On the south of 1.94 it would include that portion west of County Road 117, which would be Kjellberg's East. At this time this is prepared only for an informational item. It will be presented as a formal agenda item on August 28, 1995, and hopefully be implemented by October 1, 1995, if approved by Council. Vasko would like to implement it as anon as possible, consequently, if the Council doesn't have any problems with it and would like to approve it by consensus, we may be able to get a 30 -day notice to the public and make the switch on September 18,1995, rather than October 1,1995; whichever the Council wishes. RUG 11 '95 10 08 OSM MPLS, MN P. 2 MyM a� 30D Pak Pl= Fast 612-595.5775 ASbditMt M MN 228 TA7X59"7i�5 COUNCIL UPDATE TO: Honorable Mayor and City Cannel Members Qty of Montkdlo ,y FROMt Bret A. Wdss, PS. Chy vm* DAM . Angust 11, 1991 RFs Glllard Avenue Street Reconstruction Meadow Oab Oudot Qty Project No. 93 -UC OSM Project No. 538940 At the last council meeting of July 24,1995,1 brought to your attention a request to remove the supereievadon from the street nave at 95th Street and Dillard Avenue. I stated at that time that the township was not completely in favor of a modification to the latersectim however, I was instructed to have further diseudo»: with the township regarding this issue. The township board met regarding this imm at their August 7, 1995 meeting and subsequently met with me at the site on Tuesday, August 8tb, to discuss the issue in greater detail. At the field meeting, LeRoy Kipitb, Ted Holker, and Kan Scadden discussed that they had not had any problems with the intersection at this time and were not in favor of modifications that would eliminate the superelevatim Thry felt them was a potential problem with accidents on the corner without having the superelevatiom 1 then asked them to consider signing the street for 30 miles per hour so It could be enforced and so we could maintain some tower speeds in a residential area. All three persons agreed that with the conditions of the residential development in the area that it. made servo to sign it for 30 miles per boor, and flutber stated that if them are driveways every 200 feet, they have the authority to assign a speed limit of 30 miles per hour. They could not give we an affirmative reaction to completing that signing, however. they stated that all the other members of the board had disatased the issue and felt it made team to sign it for 30 miles per hour. 1 subsequently asked them to install,the signs as soon as the road was paved and they agreed. I (Hither asked them if we could snake some minor modifications to the am at 95th Street while maintaining the wperelevation and was told that would be acceptable. Therefore, we aremaking minor modifications to the superelevation at 95th Street and wW be monitoring installation of 30 mile per hour signs once the road has been paved. Ah F" 11 '95 1089 099 PPLS, PN P.3 Couch Update City of MOtleello August 11..1995 Pop_ b is my reoo®mendatim that the Cily awadl no* tbe'sbariffs dgmuum that there bat hem a cMW in speed in the ams, and ask them to. molter it for a period of time in the hopes of ratraidng the local people to the WW speed limp. It world be preferable to do this immediately after the road is paved sad reopened for traffic since there has not been mttcb tbroogb ttatMEe In the ares doing the wngmcdon proas& a b MONTICELLO ( ))'lice .f the Cit , Adhnim,ndtm 250 East Broadway Monticello, MN 55362.9245 Plume: (612) 295-2711 MEMO Metro: (612) 333.5739 TO: Mayor and Council Members nn� FROM: Rick Wolfsteller, City Administm / DATE: August 23, 1896 RE: 1996 Proposed Budget and Tax Levy Workshop, Monday, August 28, 1986, 6:30 p.m. Attached you will find summary worksheets outlining the proposed 1996 municipal budget. The worksheets are summarized at this point for Council review, with the exception of the general fund, which has more detailed breakdowns by departments. Along with the general summaries by funds, you will also find a worksheet outlining the capital outlay expenditures that the staff is proposing for 1996, some of which vary depending on which alternative may be selected or the maximum tax levy you wish to propose. While the attached format is intended to give you an overview of the general expenditures and revenues by major categories, funds, and departments, additional detail is available on a line -item basis in the computer-generated worksheets which are available at city hall if anyone would like a copy. In the past, summarizing the budget for this type of workshop has usually worked better than getting too specific on a line -by-line item basis. For the workshop discussion, I have prepared two options that have various tax levy proposals resulting in levy increases ranging from 7.9% to 10.7% in terms of actual dollars collected, with the actual increases estimated to be paid by the taxpayers ranging fiom 6.3% to 8.1%. These latter percentages are more reflective of what the taxpayers would actually see as an increase, whereas the first amount is simply indicating the actual dollars collected and not an increase to a taxpayer. In each of the alternatives, the difference is simply an additional $80,000 levy in the capital outlay fund to continue the past practice of setting aside funds for a future interceptor sewer lino reserve that can be used for that purpose or possibly other needs of the City. The capital outlay fund Memo Mayor and Council Preliminary Budget August 23, 1996 Page 2 expenditures proposed are discussed in further detail elsewhere in this memo. Although changes can be made anywhere in the budget to reduce or increase the levy requirements, the easiest place to make large changes would likely be within the capital outlay fund. The next obvious way to reduce the levy would be to target specific equipment or large ticket items that are being proposed as part of each department's budget, which are primarily within the general fund. The first option proposes a tax levy of $3,066,667, which would result in an increase in the levy of $224,472 and an estimated percentage increase to the taxpayers of approximately 6.3%. As you will note, the general fund has the largest proposed increase in the tax levy under either option at $313,848. I have attempted to outline the main reasons for the propo%-I levy increase in She general fund in a summary that is attached for your review. In addition to the general fund increase, there are also some changes to the other large tax levy funds, which include debt service and the capital outlay fund. The debt service fund is actually lower by $43,169 based on our current payment schedules. Under option ql, the capital outlay revolving fund is slightly lower than the 1995 levy but would be $69,000 higher than last year's under option 02. Another notable change in the tax levy proposal from the 1956 budget is in the OAA fund where the levy has been reduced by $26,361 as the 10 -year agreement for paying $27,600 per year to Monticello Township has ended This amount was originally agreed to as part of the annexation that took place 20 years ago when the Township lost the tax revenue from the NSP plant. With the general find being the main fund of the City as far as general operations are concerned, thio find will continue to be the one with the largest increases as we continue to grow. This is evidenced by the fairly large increase proposed in next year's budget, but we cannot forget that with our growth will come additional cost for providing the services that residents come to expect. As we add additional subdivisions for housing, we also add additional miles of streets that need to be maintained. These subdivisions also bring additional parks that also need to be maintained, all leading to the reason an additional public works department employee is being budgeted for in 1996. The increasing housing starts continue the need for additional help within the building inspection department, not only for inspections but also fbr secretarial assistance and staff time that is needed to deal with the initial developments as they are proposed. I believe this budget is starting to reflect the growth pressures we are experiencing in that many areas of the budget are seeing increases Brom garbage/recycling cost to library services to the obvious example of the need for a new wastewater treatment plant. Memo Mayor and Council Preliminary Budget August 23, 1895 Page 3 With the growth pressures, we will continue to see our budgets grow, but we are hopeful that the increases in market values from the housing, commercial, and industrial growth will be there to pick up their share of the tax increases and not burden the current taxpayers. The other major tax levy requirement of this budget proposal relates to the capital outlay revolving fund. The main difference between options &1 and Y2 is all related to the tax levy being proposed in the capital outlay funds. The overall city levy increases that the Council needs to address may come down to a philosophical choice as to whether we should begin to levy funds in 1888 to cover some of the estimated $10 million in wastewater treatment plant cost or wait until later. Both options have included $300,000 in the levy to be used as partial payment for wastewater treatment plant engineering design fees. The proposal would be to add the $300,000 to amounts that have been set aside from the past two years ($208,000) to cover a large portion of the plans and specification fees for the new plant. By using past revenues earmarked for the wastewater treatment plant expansion and adding the proposed levy of $300,000, it simply reduces the amount we would need to borrow through the state or fiom our own bond sale in the future. Of course, the other option is not to charge NSP and the other taxpayers today fbr something we can borrow and repay later. By levying and paying for some of the soft costs (engineering fees) as we go, we simply reduce the length of time we will have to pay for the new plant by approximately one year. If the Council chooses not to levy finds for the design of the wastewater treatment plant separately, we would likely use reserve funds to pay for the engineering fees in advance and reimburse ourselves later when we sold bonds for the entire project or when we borrow money from the state. The following is a summary of the capital outlay fund expenditures proposed under both option 01 and option 112. OPTION •1 2 hockey rinks - 4th St. Park, includes moving lights & hydrants $20,000 Meadow Oak pathway (Middle School to Meadow Oak Park) $30,000 Pathway on CR 118 f -om Middle School to CR 75 $15,000 Meadow Oak park improvements (Outlot A) • fencing $15,000 • 1/3 of parking lot paving 1111000 SUBTOTAL $93,000 Memo Mayor and Council Preliminary Budget August 23, 1995 Page 4 Remodeling interior, including service counter relocation, and upholstering or replacement furniture $29,000 Wastewater treatment plant. Pnginppring dpgig= fee - partial (previously budgeted in 1994 and 1995 - $208,000) $3(in (inn SUBTOTAL. $422,000 This is the amount of the tax levy proposed in option Al for capital outlay fund. OPTION 02 - Add: Reserve for interceptor sewer extension (4th year) $80,000 TOTAL TAX LEVY PROPOSED UNDER OPTION 02 $602,000 In addition to the above -noted expenditures, the budget assumes that the City may need to spend $300,000 or more for a biosolids land purchase (i.e., sludge sites) soon. If this was to be covered by a tax levy, we would have to increase the overall levy by an additional $300,000. At this point, this amount has not been included in the levies proposed. Another option for funding a biosolids land purchase could be to use the Rinds that have been set aside over the past three years for the interceptor sewer reserve and add to this the additional $80,000 proposed in 1996 under option 02. Them funds would amount to $300,000; but if t1hey were used for purchasing a farm site, they would naturally not be available for interceptor sewer needs in the future. While the intended uses would be sewer related, we would be depleting the intercepter sewer reserve that would likely have to be replaced in the future. As you can see, it is relatively easy to come up with many large expenditures that may be needed soon but not as easy to find sources of revenue to pay for these items without involving a tax levy. The City would not be allowed to obtain a mortgage on a land purchase and could only issue a bond for a land purchase by having a referendum. I haven't determined yet whether a biosolids land purchase could be considered an essential part of the wastewater treatment plant project and, therefore, allow us to bond for the land as part of the wastewater treatment plant bond issue. If not, the only options are either paying for it through a tax levy or using surplus Rinds. The important thing to note is that Memo Mayor and Council Preliminary Budget August 23, 1995 Page 5 under both options presented, the tax levies proposed do not include funds for buying a sludge site other than the alternative noted of using the interceptor sewer reserve fund for that purpose. Owning a biosolids site is becoming more of a necessity than just a luxury. I believe we are going to have to pursue acquisition of our own site very seriously in the coming months. If your initial thoughts were to reduce the levy in the capital outlay fund by not levying for the wastewater treatment plant design fees at this time, I would suggest leaving all or most of the $300,000 intact and earmarking these funds for a sludge site purchase. With all the major expenditures we're going to be facing in the near future, I don't believe it would be wise to propose a levy too low simply to keep the increase below a certain percentage. Like it or not, the City is going to have to spend large amounts of money in the future for these projects. While the purpose of this workshop is to review the budget options and the tax levy options for 1996, the Council will have to adopt a maximum levy that you are willing to live with by September 15, 1995. If a decision is not made at our workshop session on Monday or at an additional workshop session if so scheduled, the Council could adopt a maximum tax levy at the regular Council meeting September 11. The maximum tax levy is the amount the County will use in its notices to the general public, but a final budget and tax levy cannot be adopted until we have a public hearing later this fall between late November and mid-December. The important thing to remember is that whatever amount you set as the preliminary levy cannot be exceeded later on but can always be lowered at the time you adopt the final levy in December. Also by September 15, the Council will have to act the date for the public hearing for the general discussion on our budget and a continuation date, if needed, to complete the budget process. These dates must fall between November 29 and December 20 but cannot fall on any dates that are used by the County or School District in their budget reviews. Therefore, the County has selected December 12 and December 19, and the School District has taken Monday, December d, and Monday, December 11, which are dates we cannot use. Our regular Council meeting in December would be on December 11, so we will have to select a different date and time anytime from 6 p.m. on, Monday through Friday. It is also a requirement that after the initial public hearing, the City cannot officially adopt the tax levy and proposed budget until another meeting, which could be a regular Council meeting. In order for us to officially adopt the budget and tax levy at our December 11 Council meeting, we would have to have the initial public hearing prior to this date. To do so would likely mean we would have to have a special meeting sometime during the week Memo Mayor and Council Preliminary Budget August 23, 1895 Page 6 of December 4-8 if the Council wanted to try and adopt the final budget and tax levy at its regular meeting December 11. If we don't select a date at our workshop session(s), we can do so at our regular meeting September 11. Since it appears that the Council agenda for August 28 may be short, the Council could continue discussion of the preliminary budget after the regular meeting items have been covered, if needed.