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City Council Agenda Packet 01-24-2000 . AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, January 24, 2000 - 7 p.m. Mayor: Roger Belsaas Council Members: Clint Herbst. Brian Stumpf. Roger Carlson, Bruce Thielen 1. Call to order. 2. ,., J. A. B. Approval of minutes of the special meeting held January 10, 2000. Approval of minutes of the regular meeting held January 10, 2000. Consideration of adding items to the agenda. A. htJ4<- t\fVI 1'* - f If).f tj,q(.( I'rlC/~1 4 r B. hfJftf... P'1f'AT - A<IJ~tw,", Pp.J'''''fl..r c. ? r~" 9 v 9F"").fG- 4. Citizens comments/petitions, requests, and complaints. . 5. Consent agenda. A. Consideration of setting a special meeting for awarding bond sale. tl~ :~~ @ \l' E. F. - ll)) ~&tJ @ . 6. Consideration of items removed from the consent agenda for discussion. Consideration of approving signal agreement for signal at County Road 75 and Hospital with Wright County. c. Consideration of approving charitable gambling license renewal - Land of Lakes Choirboys. D. Consideration of approval of preliminary plat of the Klein Farms VI Residential Subdivision. Consideration of an amendment to the zoning ordinance to allow for a deferral of parking lot paving and/or curb requirements in the Business Districts. Consideration of resolutions establishing agreements with Marquette Bank to utilize software for automated transactions and account access and reporting. Consideration of annual highway maintenance agreement with Wright County. 7. Public hearing - Consideration of a resolution adopting proposed assessment roll for delinquent utility bills and certification of assessment roll to County Auditor. Agenda Monticello City Council January 24, 2000 Page Two 8. Consideration of approving concept plan for exchanging City owned 60 acre commercial parcel for 140 acre industrial site. 9. Consideration of discussing potential interest in industrial park land acquisition - Gold Nugget Property. 10. Approve payment of bills for January. 11. Adjourn . . . . . . Mayor: AGENDA SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, January 24, 2000 - 5:30 p.m. Roger Belsaas Council Members: Roger Carlson, Clint Herbst, Brian Stumpf, Bruce Thielen 1. Call to Order. 2. Discussion with NSP representatives. 3. Adjourn . MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, January 10,2000 - 6:15 p.m. Members Present: Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen Members Absent: Roger Bclsaas Acting Mayor Clint Herbst called the meeting to order at 6: 15 p.m. and declared a quorum present. Tim Flaherty, lobbyist for the Coalition of Utility Cities was present and summarized the efforts of the 13 cities that make up the coalition to minimize the impact to the cities if the legislature enacts legislation that would change the tax status for utility companies. Mr. Flaherty explained the impact of deregulation and restructuring of utilities noting that the terms deregulation and restructuring are used interchangeably. The question is whether the utility companies need a tax break and if they do, how can that tax break be provided with minimum impact to the utility cities. The legislature has set up an utility rate structure committee and the meeting process has just started. It is their aim to work together to resolve this issue by consensus. Tim rIaherty discussed the proposal that have been submitted and the advantages and disadvantages of each. The Coalition of Utility Cities' position is that there is no reason to do anything before deregulation takes effect. After deregulation takes place it can be determined whether NSP actually needs the tax break. . Roger Carlson asked what is motivating the legislature to look at this issue at this time. Mr. Flaherty felt that because there is currently a budget surplus is one reason the legislature is looking at this issue. There was general discussion on the position of the utility companies, the position of the utility cities and the position of the legislature as it relates to the tax status for utility companies. Tim Flaherty explained a proposal offered up by the Red Wing Chamber of Commerce which is not supported by the Coalition ofUtility Cities. Under this proposal new plants arc exempt from property tax on equipment but the city can place a fee on the utility. This fee is negotiated with the utility company before the site for the new uti lity plant is selected. The City will be meeting with representatives from NSP in the near future to further discuss this issue. The special meeting closed at 6:50 p.m. Recording Secretary . ;)A . . . AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, .January 10,2000 - 7 p.m. Members Present: Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen Members Absent: Roger Belsaas Acting Mayor Clint Herbst called the mecting to order at 7 p.m. and declared a quorum present and noted the absence of Roger Bclsaas due to illness. 2. Approval of minutes of December 13, 1999 re!!ular Council meeting. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF TIlE DECEMBER 13, 1999 REGULAR COUNCIL MEETING AS PRESENTED. BRUCE THIELEN SECONDED THE MOTION. MOTION CARR lED UNANIMOUSLY. 3. Consideration of addine items to the a!!enda. Brian Stumpfrcquested that discussion of a business being conducted on West River Street be added to the agenda. Bruce Thielen requested that agenda item #9 be added to the consent agenda and Jeff O'Neill added a request to update the Council on the Community Center. 4. Citizen comments/petitions, requests and complaints. None 5. Consent Agenda A. Consideration of approving issuance ofa non-intoxicating liquor license _ O'Ryan's Conoco. Recommendation: Approve issuance of non-intoxicating liquor license with $75 fee to be pro-rated from the date of opening to July I st. B. Consideration of an amendment to a conditional use permit and associated planned unit development allowing expansion for an industrial use. Applicant: Sunny Fresh Foods. Recommendation: To approve the Concept Plan for the Sunny Fresh cuP/pun amendment subject to consideration of issues raised in the agenda report and based on the finding that the expansion is appropriate for the site and the neighborhood and will result in a more acceptable operation of the site. c. Consideration of zoning text amendment defining minimum lot width as measured at front yard building set-back line. Applicant: Zoning Administrator. Recommendation: Adopt the proposed ordinance amendment (ORI>. AMD. #338) dB . . . Council Minutes - 1/10/00 D. Consideration of zoning text amendment clarifying curb cut requirements or driveway widths in residential districts. Applicant: City of Monticello. Recommendation: Approve the ordinance amendment clarifying curb cut requirements or driveway widths. (ORD AMD. #339) E. Consideration of a Comprehensive Plan amendment for land west of Kjellberg West Recommendation: Approve amendment to Comprehensive plan as proposed based on a finding that the existing plan language needs clarification to provide land use direction that reflects the City's intent. F. Consideration of proposed amendment to the sign ordinance allowing electronic reader hoards. Recommendation: Adopt ordinance amendment as proposed. Bruce Thielen requested that item 5B be pulled for discussion and Dan Miclke requested that item 5C be pulled so that additional information could be presented. BRUCE THIELEN MOVED "1'0 APPROVE THE CONSENT AGENDA AS PRESENTED EXCLUDING ITEMS 5B AND 5C AND INCLUDING AGENDA ITEM #9. ROGER CARl,SON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 6. Consideration of items removed from the consent a!!enda for discussion. Jeff O'Neill provided a summary of the Sunny Fresh request for an amendment to the conditional use permit covering the planned unit development to allow for the expansion of the business. The issues discussed at the Planning Commission meeting on the amendment were reviewed including Linn Street options, paving, screening and installation of curb. Bruce Thielen asked about the expansion area and the impact this would have on the City's wastewater treatment facility. Don Roberts from Sunny Fresh explained how the proposed expansion would impact the wastewater treatment agreement between Sunny Fresh and the City. Mr. Roberts indicated that new area deals with cooked product and this does not contribute to the BOD and TSS amounts. However, they arc working with John Simola, Public Works Director, on the wastewater treatment agreement. BRUCE THIELEN MOVED TO APPROVE THE AMENDMENT TO THE CONDITIONAL USE PERMIT AND ASSOCIATED PLANNED UNIT DEVELOPMENT ALLOWING THE EXPANSION FOR SUNNY FRESH. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOlJSL Y. Dan Mielke spoke to the Council regarding the proposed change in the zoning ordinance defining minimum lot width. I Ie asked that this item be referred back to the Planning Commission for additional discussion as he had further information to present. Mr. Mielke indicated that the proposed wording change would have significant effect on the City. 'fhe current definition oflot width is: "The shortest 2 ~6 Counci I Minutes - 1/10/00 . horizontal distance between the side lot lines measured at the building setback line." In a B-3 zoning district there is no minimum lot area designated but there is a lot frontage requirement of 100 feet. It was his opinion that if one uses the current definition, the parcel could not have any dimension that would be Jess than 100 feet because then it would not meet the lot width requirements of a B-3 district and therefore would be unbuildable unless a variance was obtained. City stafT in their discussions with Mr. Mielke noted that the 100' lot width was the requirement at the building setback line of the front yard and city staff indicated that the parcel in question, based on City's interpretation of the ordinance was a buildable lot. However, to ease the concerns ofMr. Miclke, the staff had submitted to the Planning Commission an ordinance amendment that added the words, "front yard" to the definition so that it was clear where the lot width is measured. Mr. Mielke stated that with the proposed change in language it would be possible to have a lot that would meet the 100' width at the front yard but narrow down drastically after that point, such as a triangular lot. I [e questioned whether that was what the City intended when they proposed the ordinance amendment. He felt the proposed language changed the intent of the ordinance instead of clarifying the language. . City staff stated that the interpretation of the ordinance has been that lot width is measured at the setback line of the front yard and the lot in question is a buildable lot. StafT also noted that it is not the intent of the ordinance to have a 100' minimum width over an entire lot and that there are numerous lots that have been created with rear lot widths that may be less than the front lot width. The concerns Mr. Mielke raised should have been presented to the Planning Commission when they made their deliberations on the ordinance amendment. Dick Frie, Planning Commission Chair, stated that when the public hearing was conducted by the Planning Commission the comments they received was that there needed to be clarification of the front yard setback but what was being presented to the Council at this meeting was whether the lot was a buildable lot. The intent of the Planning Commission was to clarify the language to state the lot width measurement was taken from the front yard building setback line and they believe the language proposed does that. If Mr. Mielke has concerns about other lot requirements of the B-3 zoning district that is a separate issue that could be looked at. BRUCE THIELEN MOVED TO ADOPT THE PROPOSED ORDINANCE AMENDMENT RELATING TO LOT WIDTH BASED ON "[,l-IE FINDING THAT THE AMENDMENT [S NECESSARY TO CLARIFY CODE INTERPRETATION AND REFLECT PAST CITY PRACTICE. BRIAN S'fUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Consideration of adopting a resolution for the sale of $7.555.000 Public Project Revenue Bonds Series 2000A. (RES. NO. 00-01) Mark Ruff from Ehlers and Associates was present to explain the proposal for the sale 01'$7,555,000 in public project revenue bonds. This bond issue is proposed to refinance the Community Center bonds which have a two year term and atter one year the bonds can be called. The Community Center bonds have a 2/1/00 call date. Since the City is also looking at issuing a general obligation bond for financing of a number of public improvement projects it is proposed to do a combined sale. "l'he financial consultant was recommending the bond sale at this time because generally Jan.-Feb. arc good months for . 3 d.B Council Minutes - 1/10/00 . bond sales and it is uncertain whether there will be any reduction in interest rates by waiting until a latcr date. Brian Stumpf asked what the potential savings would be to sell the two bond issues together and Mark RuiI indicated that the savings would be $15,000-$20,000. There was Council discussion on whether to delay the sale of the bonds in hope that the election and economy might bring the interest rates down. Mark Ruff stated that the City would have up to two days prior to the sale of the bonds to cancel should they feel it would be better to delay the sale of the bonds. BRUCE TIIIELEN MOVED TO ADOPT A RESOLUTION PROVIDING FOR THE SALE OF $7,555,000 PUBLIC PROJECT REVENUE BONDS, SERIES 2000A ROGER CARLSON SECONDED 'n-IE MOTION. MOTION CARRIED WITH BRIAN STUMPf VOTING IN OPPOSITION. 8. Consideration of resolution authoriziD!! the sale of 2000 G.O. Improvement Bonds. (RES. NO. 00-02) Mark Ruff eXplained the purpose of the proposed bond sale is to reimburse the City for projects the City is currently funding through reserves or will be undertaking. City Administrator, Rick Wolfsteller, reviewed the various projects that thc proposed bond sale would cover. The amount of the proposed bond sale including capitalized interest and discounts would be $2,015,000. . BRUCE THIELEN MOVED TO APPROVE A RESOLUTION AUTHORIZING THE SALE OF $2,015,000 IN GENERAL OBLIGATION IMPROVEMENT BONDS. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. 9. Consideration of annual appointments for 2000 and consideration of ordinance amendment establishing staggered 3 year terms for Planning: Commission members. (ORD AMD #337) Included as part of the consent agenda. 10. Consideration of Change Order #12 on Highway 25 Project No. 96-04C. Bret Weiss reviewed the proposed change order which added to $17,180.07 to the contract for the project and covered all items in the contract paid at unit prices that came in 15% above or below the estimated quantities. BRIAN STUMPf MOVED TO APPROVE CHANGE ORDER NO. 12 ON THE HIGHWAY 25 PROJECT NO. 96-04C AS RECOMMENDED. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 11. Consideration of annual increases to City development fees. . Jeff 0' Neill eXplained that the originally the City had conducted a survey of neighboring communities 4 d.~ . . . " Council Minutes - 1/ 10/00 as far as fees charged in development. It was the City's intent to periodically review the fees charged to make sure that they are not only comparable to what other communities charge but also that they generate adequate funds to take care of the cost of the infrastructure. It is proposed that these fees be looked at annually and adjusted to reHect the construction cost index. If the fees are approved they would be collected on developments coming in after this date. The fees listed were reviewed and it was noted that the sewer access charge should be at $3000.00 per unit. BRUCE THIELEN MOVED TO ADOPT THE PROPOSED CHANGES TO DEVELOPMENT FEES WITH THE CHANGE NOTED FOR THE SEWER ACCESS CHARGE. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 12. Consideration of approving turnback agreement for Oakwood Drive from Hil!hway 25 to Chelsea Road - Wri~ht County. Bret Weiss provided a brief summary on the turnback agreement. It was noted that the City will be receiving $40,000 from the County on the turnback of this segment of roadway. BRIAN STUMPF MOVED TO APPROVE THE COUNTY ROAD 117 JURISDICTIONAL TURNBACK AGREEMENT NO. 99-046 WITH WRIGHT COUNTY WrrII THE CITY AGREEING TO PERFORM MAINTENANCE ON OAKWOOD DRIVE BETWEEN CHELSEA ROAD AND TH 25 UNTIL THE AGREEMENT TAKES EFFECT. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOlJSL Y. 13. Consideration of approvin~ siena. agreement for si~na. at County Road 75 and Hospital with Wrieht County. A signal agreement has been prepared cover the costs of construction, engineering, inspection and maintenance costs for the signal at the entrance to the hospital. The hospital is picking up the entire cost of the signal construction, engineering and inspection. There was some discussion on the maintenance cost of the signal particularly the emergency vehicle pass system and whether that cost should be picked up by the hospital or the City. It was suggested that perhaps the cost of maintaining EVP system could be shared by the SherifT's Department, hospital and the City. When this was discussed initially the City was not looking at maintenance of the electronic controls. BRIAN STUMPF MOVED TO TABLE ACTION ON THIS AGREEMENT UNTIL THE RESPONSIBILITY FOR COST OF MAINTAINING TIlE ELECTRONIC CONTROLS COULD BE DETERMINED. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. Brian Stumpf expressed his concern about the intensive business use of a residence located on West River Street and requested the staff to check the terms of the conditional use permit for this property. 5 ~B . . . Council Minutes - 1/10/00 Jefl 0' Neill updated the Council on the progress with the Community Center. I-Ie noted that there is construction delay with the aquatics center. There is an extensive punch I ist of items that needs correction. Clint Herbst questioned the cracked appearance of the climbing wall. .Jeff 0' Neill indicated that the Community Center, other than aquatic area, is to be completed by January 22od. Bret Weiss informed the Council that MnDOT has rejected the proposal of attaching the pedestrian bridge proposed f<Jr the County Road 18 area to the existing bridge. While the stand alone bridge has a lower construction cost than the attached bridge, John Simola, the Public Works Director had indicated some maintenance concerns with the stand alone bridge. If this project does not proceed this year, the City will lose the ISTEA funding for the project. 14. Payment of bills for .January. BRUCE THIELEN MOVED TO APPROVE PAYMENT OF BILLS. ROGER CARLSON SECONDED THE MUflON. MOTION CARRIED UNANIMOUSL Y. BRIAN STUMPF MOVED TO ADJOURN AT 8:30 P.M. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 6 dB . . . .. wss. 606 25 th Ave. S. · Suite 101 St. Cloud, MN 56301 320-252-4900 FAX 252-3100 B.A. Mittelsteadt, PE. Bret A. Weiss, PE. Peter R. Willenbring, PE. Donald W Sterna, PE. Ronald B. Bray, PE. & Associates, Inc. January 4, 2000 Mr. John Simola Public Works Director Office of Public Works 909 Golf Course Road Monticello, MN 55362 Re: Project 98-09C Fire Hall Parking Lot Construction WSB Project No. 1010.77 Dear John: Enclosed are three (3) copies of Construction Pay Voucher No.3 and Final Pay Request for the referenced project in the amount of $ 10,501.24. Also enclosed are Supplemental Agreement NO.1 and No.2 for your review and signature. Supplemental Agreement NO.1 covers a re-mobilization charge by Dirtworks 2000 to complete work that could not be completed in the fall due to conflicts with the community center. Supplemental Agreement No.2 covers removal and replacement of the driveway apron that was damaged by a fire truck and the additional cost for 8" concrete pavement in lieu of the 6" pavement that was bid. If you have any questions in this regard please call me, otherwise, sign the enclosed documents and make payment in the amount of $10,501.24 to Bauerly Bros. Inc. at your earliest convenience. Sincerely, WSB & Associates, Inc. 7Jz1~~~ Michael J. Nielson, P.E. Office Manager Enclosures Minneapolis · St. Cloud Infrastructure Engineers Planners EQUAL OPPORTUNITY EMPLOYER 606 25 th Ave. S. · Suite 101 St. Cloud, MN 56301 320-252-4900 FAX 252-3100 B.A. Mittelsteadt, PE. Bret A. Weiss, rE. Peter R. Willenbring, PE. Donald W. Sterna, rE. Ronald B. Bray, PE. . & Associates, Inc. January 4, 2000 Mr. John Simola Public Works Director Office of Public Works 909 Golf Course Road Monticello, MN 55362 Re: Project 98-21C Downtown Parking Lot Overlay & Freeway Parking Lot Construction WSB Project No. 1010.90 Dear John: Enclosed are three (3) copies of Construction Pay Voucher NO.3 for the above referenced project in the amount of $ 14,656.25. This is the final payment for this project. Also enclosed are two (2) Supplemental Agreements for additional work on the project. Supplemental Agreement NO.1 is for labor and equipment to remove the pavement in the City's downtown parking lot. This work was paid for on Pay Estimate No.1, however I am not sure that Bauerly Bros. Inc ever signed the Supplemental Agreement and therefore had them sign the enclosed agreement. . Supplemental Agreement NO.2 deletes that sod from the Freeway Park project and adds seeding. Payment was made for % the amount of seeding on Pay Estimate No. 2 and the remaining portion is paid on this estimate. The final balance for this project is $2,515.32 over the amount of the original contract, and is primarily due to the additional common excavation of unsuitable soil at the Freeway Park lot and the additional granular borrow required. If you have any questions in this regard, please call me at 320-252-4900, otherwise please make payment in the amount of $ 14,656.25 to Bauerly Bros. Inc. at your earliest convenience. Sincerely, WSB & Associates, Inc. ~ Michael J. Nielson, P.E. Office Manager Enclosures . M 1tllcapolis · St. Cloud Infrastnlcture Engineers Planners EQUAL OPPORTUNITY EMPLOYER . . . SA. Consideration of setting a special meetinl! for awardinl! bond sale. (RW) A. REFERENCE AND BACKGROUND: As you will recall from our last meeting. the lIRA and the City Council authorized Ehlers and Associates to proceed with refinancing of our temporary Community Center bonds with a sale date scheduled for Wednesday, February 2nd. The sale date was set to coincide with the HRA's regular meeting that evening. Along with the refinancing of the Community Center bonds, the Council also authorized the issuance of $2,000,000 in general obligation improvement bonds to finance various improvements that the City has already constructed. The sale date for these bonds was also scheduled for the same time, February 2nd. The City Council will need to meet briefly that evening to consider awarding the sale of the general obligation bonds for the City and also to consider an amendment to our lease agreement with the 1-[ RA because of the sale of the permanent financing for the Community Center. The lease agreement modification relates to the City's agreement to make lease payments equal to the principal and interest due on the bond payment, and therefore it is likely the interest and principal will vary from the original agreement approved in the past. It is recommended by staff and our bond consultant that the Council meet briefly at 6:45 p.m. Wednesday, February 2nd just prior to the scheduled liRA meeting at 7 p.m. Hopefully, this special meeting will work in the Council's schedule as the offIcial statements for the bond issues will be printed soon with this time noted. B. ALTERNATIVE ACTIONS: 1. Set a special meeting for 6:45 p.m. February 2, 2000 to consider awarding the sale of general obligation bonds and amending the lease agreement with the HRA. C. STAFF RECOMMENDATION: It is recommended that a special meeting be established by the Council tc.)r February 2nd as outlined above. The meeting should be very brief and only needs to cover the two actions noted regarding the bond sale. D. SUPPORTING DATA: None Council Agenda - 1/24/00 . 5B. Consideration of approving sienal agreement for signal at County Road 75 and Hospital with Wright County. (R W) A. REFERENCE AND BACKGROUND: At our last counci I meeting, this item was tabled to allow staff to get additional information on the potential cost of the maintenance of the EVT emergency system. These electronic controls are a new addition to our traffic signals in Monticello and the staff was uncertain as to the cost we might be assuming by agreeing to the maintenance of these signals. The agreement with Wright County specifies that the City shall relamp the traffic control signals, clean and paint the traffic control signals and cabinets and maintain and operate the EVP emergency system. The County's responsibility will be to maintain the signal controller, determine appropriate signal timing sequence, provide phone service to the controller for remote servicing, and to provide replacement of poles, cabinets, etc. should they be damaged through vehicle collision, etc. Because the potential cost ofrepairing and maintaining the EVP system was unknown, our city engineer was asked to give us an idea of the cost exposure we would be assuming by taking over this maintenance responsibility. As it turns out, if the entire EVP system within the control panel needed to be replaced, the total estimated cost is $3,000 or less. The likelihood of this electronic control needing complete replacement is very remote and therefore the maintenance exposure cost for the City is likely to be very limited. '. Since the Council had originally agreed to pick up the maintenance when we assumed it only involved relamping and painting of the signals and cabinets, I inquired of the hospital district whether they would consider participating in the maintenance cost of the EVP system since it will be a bcne1it to their ambulance and emergency personnel. Their response at this time is that they feel this should not be thcir responsibility as they have already picked up the entire cost of the signal construction, engineering and inspection associated with this installation. As a result of my conversation with Barb Schwientek, I do not believe that pursuing a cost sharing arrangement for this specific maintenance item is necessary, especially due to our engineer's cstimate that the cost ofreplaccment should be relatively minor. B. ALTERNATIVE ACTIONS: I. The first alternative is to approve the traffic signal agreement with Wright County as drafted. 2. The second alternative would be to not approve the signal agreement at this time. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator and Public Works Director that the City Council approve the signal agreement as drafted as outlined under alternative #1. The maintenance costs . associated with the EVP system should not be a major issue and a total failure of the system is unlikely. D. SUPPORTING DATA: Copy of traffic signal agreement . . . 7856 WRIGHT COUNTY DEPARTMENT OF HIGHWAYS TRAFFIC SIGNAL AGREEMENT NO. 99-01 BETWEEN THE COUNTY OF WRIGHT AND THE CITY OF MONTICELLO TO FURNISH AND INSTALL A TRAFFIC CONTROL SIGNAL SYSTEM AT THE INTERSECTION OF CSAH 75 and HART BOULEVARD (HOSPITAL ENTRANCE) C:\DATA\WPWlN\SIGNALS\MONTI-AG.C75 58 COOPERATIVE AGREEMENT THIS AGREEMENT, made and entered into by and between the County of Wright, . Minnesota, hereinafter referred to as the "County", and the City of Monticello, hereinafter referred to as the "City", WITNESSETH. WHEREAS, the City requests and the County agrees to the installation of a traffic control signal system on CSAH 75 at the Hospital entrance (Hart Boulevard) that is included in the CSAH 75 reconstruction project, SAP 86-675-12. AND WHEREAS, the City is initiating the project and the City therefore will be responsible for administrating the project, which includes hiring a consultant to coordinate preliminary engineering work, plans, specifications and proposal. Such work as described above will constitute "Engineering" and be so referred hereinafter. The City will also perform the construction engineering and inspection required to complete the items of work hereinafter set forth. Such work as described above will constitute "Inspection" and be so referred to hereinafter. AND WHEREAS, the City requests and the County agrees to the installation of an Emergency Vehicle Pre-emption System, hereinafter referred to as the "EVP System", as a part of the new traffic control signal installation on CSAH 75 at the Hospital entrance (Hart Boulevard) . AND WHEREAS, the County and the City will share the cost, maintenance, and operation of the new traffic control signal with street lights, EVP System and signing, as hereinafter set forth; NOW THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: . Article 1 The contract cost of the work and/or, if the work or portions of work are not contracted, the cost of all labor, materials, and equipment rental required to complete the work, including the cost of providing the power supply to the service poles or pads, shall constitute the actual "Construction Cost" and be so referred hereinafter. Article 2 The County and the City shall share the costs for this project as follows: CONSTRUCTION COSTS County - 0 % of total cost (Signal system warrants not met) City - 100% of total cost ENGINEERING COSTS City - 100 % (City prepared plan, specs. & proposal) INSPECTION COSTS City - 100 % of inspection cost December 1, 1999 C:\DATA \ WPWIN\SIGNALS\MONTI.AG.C7S . - 2 - 58 . . . The above breakdown deviates from the present County Traffic Signal Funding Policy (50% I 50 % split) because the signal was not warranted (by a signal justification report). CSAH funding cannot be used on signal projects unless a signal justification report is approved by MnDOT. Article 3 The City shall be responsible for providing the necessary electrical energy for the operation of the traffic control signals, and any electrical energy for street lights. In addition, the City shall be responsible for at its cost and expense to (1) relamp the traffic control signals; and (2) clean and paint the traffic control signals and cabinets; (3) provide, at its costs and expense, the maintenance on luminaries; and (4) maintain and operate the EVP System. (Emitter units may be installed and used only on vehicles responding to an emergency as defined in Minnesota Statutes Chapter 169.01, Subdivision 5 and 169.03.) In the event said EVP System or components are, in the opinion of the County, being misused or the conditions set forth herein are violated, and such misuse or violation continues after receipt by the City of written notice thereof from the County, the County shall remove the EVP System, at the City's expense. Article 4 Upon completion of the project; it shall be County I s responsibility at its cost and expense to (1) maintain the signal controller, (2) determine the appropriate signal timing sequence, (3) provide phone service to the controller for remote servicing, (4) provide for replacement of poles, cabinet etc. if they should be damaged through vehicle collision etc. (major maintenance). Article 5 The City indemnifies, saves, and holds harmless the County and all of its agents and employees of any form against any and all claims, demands, actions, or causes of action whatever nature or character arising out of or by reason of the execution or performance of the work provided for herein to be performed by the City and further agrees to defend at its own sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising hereunder and with the corporate limits of the City of Monticello. It is further agreed that any and all full-time employees of the City and all other employees of the City engaged in the performance by any work or services required or provided for herein to be performed by the City shall be considered employees of the City only and not of the County and that any and all claims that mayor might arise under Workmen I s Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said City employees while so engaged on any of the work or services provided to be rendered herein shall be the sole obligation and responsibility of the City. December 1, 1999 C:\DATA\ WPWIN\SIGNALS\MONTI-AG.C75 - 3 - -58 Article 6 Before this agreement shall become binding and effective it shall be approved by . resolution of the City Council of Monticello and it shall also be approved by resolution of the County Board and such other officers as law may provide. IN TESTIMONY WHEREOF the parties have duly executed this agreement by their duly authorized officers and caused their respective seals to be hereunto affixed. COUNTY OF WRIGHT CITY OF MONTICELLO Recommended for Approval: Reconunended for Approval: County Engineer Mayor, City of Monticello Chairman, County Board City Administrator County Coordinator City Attorney, City of Monticello County Attorney . December I, 1999 C:\DATA\ WPWIN\SIGNALS\MONTI-AG.C7S . - 4 - !; B . . . Council Agenda - 1/24/00 sc. Consideration of resolution approvine renewal of gambline license for Land of Lakes Choir Bovs - ,..P.'s Annex. (R.W.) A. REFERENCE AND BACKGROUND: The Land of Lakes Choir Boys pull-tab gambling operation located in l.P.s will expire on April 30, 2000. The organization is requesting approval of the City Council for renewal of their license through the State Gambling Control Board. Attached is a financial report that shows the revenue from their operations and also the charitable contri butions. B. AL TERNA TIVE ACTIONS: 1. Adopt a resolution authorizing the State Gambling Control Board to issue a pull-tab license to the Land of Lakes Choir Boys organizQ,tion for J.P.' s Annex. 2. Do not adopt a resolution approving the license request. C. STAFF RECOMMENDATION: It has been the policy of the Council not to oppose any gambling license application request as long as the organization was deemed to be a local organization conducting the gambling activity. The financial report shows the contributions made locally. The staff does not have any reason to oppose the renewal of this application request. D. SlJPPORTING DATA: · Copy of Resolution · Copy of Financial Information . . . RESOLUTION NO. 2000-3 RESOLUTION AUTHORIZING THE ISSlJANCF: OF A CHARITABLE GAMBLING LICENSE WHEREAS, the Choirboys Elk River Land of Lakes has submitted an application to the City Council of Monticello for the issuance of a charitable gambling license to conduct gambling at J.P.'s Annex located in Monticello, Minnesota; and WHEREAS, upon review of the organization's activities, the City Council is not opposed to the gambling license being issued by the State Gambling Control Board. NOW THEREFORE, BE IT RESOLVED BY TI IE CITY COUNCIL or MONTICELLO, MINNESOT A that the Choirboys Elk River Lane of Lakes organization's application fl)f license issuance listed above is hereby approved, and the State Gambling Control Board is authorized to process the application. Adopted by the City Council this 24th day of January, 2000. Roger Belsaas, Mayor ATTEST: Rick Wolfsteller, City Administrator 5C .. . . . JAN-19-00 WED 15:33 SHERBURNE COUNTY ADMIN, FAX NO. 6124418567 " . LAND OF LAKES CHOIRBOYS GAMBUNG OPERAnONS JANUARY 1, 1998 THROUGH DECEMBER 31, 1999 OPERATING INCOME Grose eales - pl,1I1 tabs Gross sales - meat raffle Groa. S.,.. less: Prize, paid - pull tabs Cost of pLlII tabs sold Cost of meat sold GambUng tax Combined receipts tax 2% tax creditlref\.lnd C~lI!lh over (short) Net Sa/Q5 Interest income Total Operating Income OPERATING EXPFNDITURES Salariee Rent Supplies. bank charges, etc. Fees, ficenses, iU1d permits Furniture/Equipment used for gamblIng Utifitiea ProfeSliional services Total Operating Qpenses Net Operating Income LAWFUL PURPOSE FXPENOITURES Land of Lakes ChOirboys Monticeno organizOltionslbueinesses (see attached shelit for detail) Total laWful Purpose ExpendItures Increue (Decrease) In Profit Carryover Profit Carryover. Janllary 1,1998 Profit Carryover - December 31, 191111 P. 02 Total $ 5,131,323 18,000 s 5,149,323 (4.446,795) (94,561) (12,000) (139,845) (214,227) 34,949 (2,304) s 274,540 79 $ 274,619 3; 115,630 24,000 6,337 850 6.864 1G 2,525 s 156,225 s 118,394 $ 54,590 37,286 $ 91,878 s 26,518 9,082 $ 35,600 5~ JAN-19-00 WED 15:33 SHERBURNE COUNTY ADMIN, FAX NO, 6124418567 P. 03 .. . . LAND OF LAKES CHOIRBOYS CONTRIBUTIONS MADE FROM GAMBUNG OPERATIONS JANUARY 1, 1998 THROUGH DECEMBER 31,1999 Date Organization/Business Purpose To~1 % Various Land of Lakes Choirboys General operations $ 54,590 59.4% Monticello: Mar. 1996 Pinewood Elementary School Donation $ 1,500 Mar. 1998 Little Mountain Elementary School Donation 1,~00 Mat. 1998 Resurrection Lutheran Church Youth program 1,000 Mar. 1998 Gruya, Borden, CarlSon Anm.laJ audit 725 June 1998 City of Monticello Rivelfest 2,~OO Aug. 1996 Susan Koman Foundation Walk for cancer 1,000 Oct. 1998 UtlIe Mountain Elementary School Donation 1,000 Jan. 1999 Gruys, Borden, Carlson Annual audit 800 Jan. 1999 Little Mountain Bernentary School Gifted student program 550 Feb, 1999 Little Mountain Elementary School Donation 700 Mat. 1999 Monticello School District HIgh School hookey 1,080 Apr, 1999 March of Dimes Monticello Walk America 700 June 1999 S Monticello boys in choir 1998.99 European tour costs 4,160 July 1999 Monticello Youth Program Youth hockey 621 July 1998 City of Monticello Rlverfest 2,500 Aug. 1999 Monticello Polecats Donation 2,000 Aug. 1999 Monticello High School Hockey Uniforms 500 . Aug, 1999 Monticello Community Center Pool table. foosball table 2,300 Aug. 1999 City of Montic~lIo Parks Dept - iOCcar equlpmlimt 500 Aug.1S99 Uttlo Mountain Elementary School equipmentfor Music Dept 2,000 Aug. 1999 Monticello High School Recording equipment 3,200 Aug. 1999 Monticello High School SOCcer jackets 200 Aug. 1999 Monticello High School Color Guard - floor covering 500 Aug. 1999 Eastview Elementary School Material$ for music program 2,000 AUQ.19S9 Pinewood Elementary School Donation 1,000 Aug. 1999 Monticello High School Two $1,000 scholarShips 2,000 Aug. 1999 MontlcelIo rood Shelf Oonation 300 Nov. 1999 Monticello Youth Program Youth hockey 450 --- Total Monticello S 37,286 40.6% Total LaWful Purpose Expenditures $ 91,876 100.0% - . s~ . . . 5D. City Council Agenda - 01/24/00 Consideration of approval of preliminarv plat of the Klein Farms VI Residential Subdivision. (JO) REFERENCE AND BACKGROUND: Attached you will find the Planner's reports and minutes relating to Planning Commission review of the Klein Farms VI residential subdivision. As you will note, Planning Commission reviewed this subdivision on two occasions. On the first occasion the developer was provided a list of changes that needed to be made to the preliminary plat in order for it to he acceptable to the Planning Commission. Those changes were made for review at the regular meeting in December, at whieh time the Planning Commission recommended approval of the preliminary plat. The developer will he constructing the project under the private improvement process, the details of which will be spelled out in the development agreement which will be reviewed by Council in conjunction with approval of the final plat. There are two issues that City staff is working on with the developer with regard to development or the finance plan that have not been resolved at this point. The first issue concerns the developer's contrihution toward future redevelopment of Fallon A venue necessitated in some part by the increase in traffic flow generated by the Klein Farms VI development. As you know Fallon A venue is relatively old and in need of repair at some point in the future. Staff is working with the developer to come up with a fair formula for assessing the developer a share of the cost associated with this repair. In addition to the road issue, a concern was raised by the developer with regard to sanitary sewer and water main trunk fees that are paid on a gross acre basis. As you will note on the plat, the 38 acre site includes 10 acres that are completely undevelopable due to the presence of power lines. The question is, should the developer pay trunk fees on land that is essentially waste land? Due to the fact that our trunk fees are calculated based on gross area, it is important that for the formula to work the City acquire trunk fees for areas that are undevelopable. Although this may seem unfair to the property owner with undevelopable land, it is important that the developmcnt community realize that there will be trunk fees levied against waste land and thus such land areas should be priced accordingly at the time of sale to developers. Although the two items noted above are important relative to adoption of the development agreement, they are provided for information only with regard to the preliminary plat and do not directly affect decision making with regard to preliminary plat approval. . City Council Agenda - 01/24/00 AL TERNA TIVE ACTIONS I. Motion to adopt Planning Commission recommendation which is to approve the preliminary plat with conditions as noted by the Planning Commission. 2. Motion to deny preliminary plat approval. RECOMMENDA TION Staff recommends approval of the preliminary plat. If the plat is approved, in the next few weeks additional work will be done on the development agreement and the process of annexation is likely to begin. SUPPORTING DATA Planning Commission agenda items and meeting minutes. . . . 7. Consideration of a reQuest for Preliminary Plat approval for Klein Farms 6th Addition. Applicant: Dave Klein. (NAC) Planning Commission Agenda -12/07/99 A. REFERENCE AND BACKGROUND: At its Novembermeeting, the Planning Commission tabled action on the proposed Klein Farms 6th Addition to allow the applicant and City Staff to discuss a number of suggestions made in the original staff report. Eleven conditions were listed in the 11/2/99 report, and staflhas met with the developer to discuss these and other issues relating to the proposal. The items were as follows: .., J. 4. . 5. 6. 7. 1. Submission of a sketch plan showing layouts of the neighboring property to verify the feasibility of the street connection location. 2. Incorporation of an additional 40 foot wide pathway from Farmstead Avenue to the west plat boundary. Revision of the lots to accommodate the added pathway. Elimination of the internal 20 foot wide pathway connections. Addition of sidewalk along Farmstead Avenue from the north plat boundary to Fallon Avenue. Addition of pathway within the Fallon Avenue right of way. Revision of the plat to illustrate future use of the land between the Amoco and NSP easements. 8. Revision of the grading plan to show a more natural pond shape. 9. Submission ofa landscaping plan showing an appealing treatment of the pond area which minimizes the need for public maintenance, such as mowing, and which illustrates the proposed tree preservation efforts. 10. Revision of the plat to show adequate maintenance vehicle access to the pond. 11. Comments of other City Staff. The applicant has submitted a revised plat in accordance with these conditions. Park Drive has been shifted to the south to accommodate an expanded pathway area along the UP A easement between the northwest corner of the plat and Pioneer Park, with the lots revised as necessary. It appears that the proposed layout allows for a reasonable extension of Park Drive into the land to the west, and lot lines have been extended through the Amoco easement to the edge of the NSP power easement to avoid the remnant area previously shown. . Sb Planning Commission Agenda -12/07/99 . Remaining issues include the landscape treatment of the pond area, final determination of the maintenance road to the pond, and consideration of a temporary cul-de-sac for the end of Park Drive. Staff has encouraged the applicant to work with the adjoining land owner to obtain an easement which would avoid placing the temporary cul-de-sac in the front yards of Lot 4, Block 1 and Lot 1, Block 4. B. AL TERNA TIVE ACTIONS Decision 1: Preliminary Plat for Klein Farms 6th Addition 1. Motion to approve the Preliminary Plat, subjectto final landscape plan submission, final approval of the maintenance road design, and agreement on the temporary turn-around issue for Park Drive. 2. Motion to deny the Preliminary Plat, based on findings to be established. 3. Motion to table action on the Preliminary Plat, subject to additional information. Decision 2: Rezoning of Klein Farms 6th Addition to R-l, Single Family Residential . 1. Motion to recommend approval of the rezoning to R-l, based on a finding that the zoning designation would be consistent with the low density residential recommendations of the City's land use plan for the area. 2. Motion to recommend denial of the rezoning, based on findings developed at the hearing. 3. Motion to table action on the rezoning, subject to additional information. c. STAFF RECOMMENDATION Staff recommends approval of both the plat and the rezoning. 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Applicant: Dave Klein Dan Licht provided the staff report noting eleven conditions listed from the 11/2/99 Planning Commission meeting. Staff had met with the developer to discuss these and other issues relating to the proposal. The applicant has submitted a revised plat in accordance with these conditions. Dan Licht advised the members of some remaining issues which included the landscape treatment of the pond area, final determination of the maintenance road to the pond, and consideration of a temporary cul-de-sac for the end of Park Drive. Staff has encouraged the applicant to work with the adjoining land owner to obtain an easement which would avoid placing the temporary cul-de-sac in the front yards of Lot 4, Block 1 and Lot 1, Block 4. Jeff O'Neill stated that the applicant has worked with staff to address the issues which have been raised. He also noted that the outstanding issues will not affect the layout or staff s recommendation. Chair Frie opened the public hearing. Dave Klein, applicant, advised the members that he did not have time to meet with Jeff O'Neill regarding maintenance of seeding (this will be a natural seeding, area). Mr. O'Neill states he will be talking with Steve Grittman and that this will be covered in the Developers Agreement. Chair Frie closed the public hearing. There was further discussion by the members regarding a pathway that will be added from Phase 4 to Phase 6 along Fallon Ave. Decision I: Preliminary Plat for Klein Farms 6th Addition ROY POPILEK MOVED TO APPROVE THE PRELIMINARY PLAT, SUBJECT TO FINAL LANDSCAPE PLAN SUBMISSION, FINAL APPROVAL OF THE MAINTENANCE ROAD DESIGN, AND AGREEMENT ON THE TEMPORARY TURN-AROUND ISSUE FOR PARK DRIVE. DICK FRIE SECONDED THE MOTION, AMENDING TO ADD IMPROVEMENT COSTS PER LOT OF DEVELOPED LAND FOR UPGRADING FALLON AVENUE TO BE DETERMINED AT CITY COUNCIL LEVEL. Motion carried. Decision 2: Rezoning of Klein Farms 6th Addition to R-I, Single Family Residential RICHARD CARLSON MOVED TO RECOMMEND APPROVAL OF THE REZONING TO R-I, BASED ON A FINDING THAT THE ZONING DESIGNATION WOULD BE CONSISTENT WITH THE LOW DENSITY RESIDENTIAL RECOMMENDATIONS OF THE CITY'S LAND USE PLAN FOR THE AREA. ROD DRAGSTEN SECONDED THE MOTION. Motion carried. -4- 6b ?G. r<\inll..-ft6 )'l-r[-qq Planning Commission Agenda -11/02/99 . 6. Consideration of a reQuest for a Preliminary Plat for Klein Farms 6th Addition within the Monticello Orderlv Annexation Area. Aoolicant: Frank Klein and Dave Klein. (NAC) A. REFERENCE AND BACKGROUND: Frank Klein and David Klein have submitted an application for preliminary plat for approximately forty acres south of Klein Farms 4th Addition. The site borders the west side of Fallon Avenue, and is crossed by a number of utility easements, including United Power Association, NSP, and Amoco. The Monticello Orderly Annexation Area Board reviewed the proposal at its October meeting and made the required findings of contiguity with existing City boundaries, and consistency with the MOAA land use plan. Both the MOAA and City of Monticello land use plans call for low density residential development on this property. The applicant has requested an R-l, Single Family Residential zoning designation. The development is proposed to consist of 51 single family lots on about 23 developable acres. Another 3.07 acres is designated for park, adjoining the south line of Pioneer Park. About thirteen acres in the southwest portion of the tract is left in an outlot due to the location of the 315 foot wide NSP easement and accessibility problems the easement causes. A small wetland has been delineated in the southeast portion of the property. This wetland is proposed to remain untouched. . The developer has designated a regional storm water pond area under a portion of the NSP transmission lines. The City Engineer will need to comment on both the location and accessibility of the pond for maintenance purposes. Planning staff would recommend a more natural shape to the ponding area to avoid the proposed straight line edges. As with other similar features, a landscape plan is requested which illustrates the proposed vegetation of the pond area. It is recommended that plant materials be used which can withstand the wet-dry cycles of stormwater ponds, but which do not required mowing. A mixture of shrubs and grasses would be appropriate in the proposed location. There are some park issues which are raised by the proposal. The plat drawing illustrates a park in the northeast corner of the project which would be connected to the rest of the plat by pathway. One of the proposed connections follows the UP A easement along the north boundary of the plat to Farmstead A venue, a part of Klein Farms 4th Addition. The City has been requiring pathway dedication along the UP A easement as other plats have developed. A 30 foot wide corridor was preserved from the south portion of Klein Farms 4th Addition. Another 40 feet should be reserved from the rear portion of Lots 1-4, Block I to widen this pathway. This would follow the line of the pathway dedication east of Farmstead to the park. . The additional pathway dedication would cut into the rear yards of the lots, reducing their size below the 12,000 square foot minimum. It would appear that there is adequate depth in the lots to the south (Lots 1-5, Block 5) to make this adjustment without losing lot count. The Parks Commission reviewed this plat and recommended approval of the park and pathway systems. One of their specific recommendations is to include a pathway that follows the UP A easement described above. The Park Commission's meeting minutes will be made a part of the :sb Planning Commission Agenda ~ 11/02/99 . Planning Commission's review packet. The Park Commission also commented on the potential for tree preservation within the plat. There is a significant stand of trees in the middle of the plat area. The Grading Plan indicates a few areas where trees are to be saved. The landscaping plan should indicate more clearly the areas and methods of tree preservation. Street construction should be designed to match the extension of Farmstead A venue from the north, including the requirement for sidewalks on one side. Park Drive would not require sidewalks, and may be built at the City's narrower 30 foot width. The extension of Park Drive to the west would likely require the wider construction standard, subject to a more thorough review of its ultimate route. A concept plan for the neighboring property (discussed below) would be important in helping to determine the standards for this street. Finally with regard to pedestrian access, the plat illustrates two park/pathway access openings. The first is from the Park to Park Drive, and the second is from the Park Drive cul-de-sac to the south. Planning staff is not sure that these access paths would be necessary with the other pathway and sidewalk in the subdivision. Since side yard walkways can become problems from both the neighbors' and City's perspective, it may be best to eliminate these small paths. As a part of consideration for access to the pond, a wider pathway/maintenance access may be considered in Block 5, generally in the area of Lots 6-8. . This issue also relates to the lot layout in the northwest corner of the plat, and the impacts that the easements will have on the future development of the neighboring property. to the west. The current plat proposal includes a street extension into the next parcel. However, it is not clear how this access will be utilized. It would be beneficial to see a more comprehensive sketch plan of the area to ensure that the access street to the west is well placed. Also relating to layout is the gap between the Amoco easement and the NSP easement. The Amoco easement coincides with the rear lot line of the lots in this plat, but a narrow strip of land would exist between the lots and the NSP easement. A portion of this area is proposed to be graded for storm water management but additional development would be seemingly impossible. It may be worthwhile to consider extending lot lines across the Amoco easement to the NSP easement to encourage beneficial use of this area. The applicant should comment on this idea, or other concepts which they are considering. B. AL TERNATIVE ACTIONS Decision 1: Rezoning from A-O to R-l, Single Family Residential I . Motion to recommend approval of the rezoning to R -1, based on a finding that the zoning designation would be consistent with the low density residential recommendations of the City's land use plan for the area. . 2. Motion to recommend denial of the rezoning, based on findings developed at the hearing. 3. Motion to table action on the rezoning, subject to additional information. Although it appears possible to develop this plat as proposed, from an engineering standpoint it is 6~b . . . Planning Commission Agenda ~ 11/02/99 preferable to have a complete approval from the City Engineer along with a description of the financing plan for lateral and trunk improvements as part of preliminary plat approvaL We do not have this information at this time. Decision 2: Preliminary Plat for Klein Farms 6th Addition I. Motion to recommend approval of the preliminary plat for Klein Farms 6th Addition, subject to conditions listed in Exhibit Z, and based on a finding that the plat meets the standards of the R-l Zoning District and the intent of the City's Comprehensive Plan. 2. Motion to recommend denial of the preliminary plat based on findings developed at the hearing. 3. Motion to table action on the preliminary plat, subject to additional information. C. STAFF RECOMMENDATION Staff recommends approval of the rezoning as stated in Decision 1, Alternative I. The area is clearly recommended for low density residential, and the R-I designation meets that intent. With regard to the prel iminary plat, Staff recommends tabling action to address the issues raised in this report. If the City is inclined to approve the plat at this stage, it should only with the conditions attached as Exhibit Z. The plat is consistent with the standards of the R-I district. Issues which need to be addressed include the location of the connection to the property to the west, and the additional pathway route along the UP A utility easement. The requested sketch plan would verify that the proposed street extension is the best solution, or that a revision should be considered. Second, while there appears to be adequate area to accommodate the pathway route, this will result in changes to the plat as welL A third issue raised is the use of the land left over, both between the utility easements and in the southwest corner of the property. Finally, the grading plan should be revised to show a more natural pond shape, and a landscaping plan should be prepared which illustrates how the pond can be both a visual amenity and require minimal public maintenance. The landscaping plan should also detail tree preservation efforts to be made during construction. D. 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E'"EvE',' ,- r CL""~('. / .. , I I / I ... i~- ~"f '\ :' ., -:; l! , " j -,' '::. ,,\. ~,.-...- ii' -, ,I: A '1, ' I 1'~'1. ~ .w...... --.! . I)IA\IO,'iI) lJR[\'[ g! T-T-~Sl <t- ,) I " f' I' , I Cl 9 e \). 1- \. \ I I ~ L _ a'" G _ ~ I 7 8 ,_,", in , ~ 'C - I 'r"'.',,~I.~,.h lq f -. I,~oll_. <l'~ ...l- _....L _ to.. J --- '----'''/?:-- >I. I --j I -4, ~' I POND OUTLET ' i '-- IE 950,0 ~ '~-~. ------ E'(''51''1~~LJ P)ND ~N\.:::t94~ J IiWL _9~1] I ~'> .1' r I I I ~.~ I ___L _-L- I I I " ,.. v... :-~.: : PARr: c,. , \ ~ o? .~'_ ',;I!.~ :1~:C ~ TRue T -... 'ORARY -DE-SAC .' .-., . ,., .,., , ~ ,.f" -., j~" ~ ~ } , /' :jl:e. EXISTING E OTHER OU- BE RAZEC . 957_5 >. ~:; ... .- 1';<,/1 ... : $/ d' ,,/1 ...J ~f '. /OUTLOT A INST ALL CUL VEP' IE 957,3 ~:-!//..-~- ;~':. _ ':i~, ,".', . REMOVE . EXISTING~I FENCE ! . I N^l' UI}I r- -- ---f- . L [ vA I.I'~. ...... I ----~-::-:::j-:~:,~ ~_...a...;..,.. G .. ~",. ra~anSPLlr 515 ?,i.~. r:; . . . Parks Commission Minutes - 10/21/99 6. Update on Klein Farms 6th Park. Jeff O'Neill, Deputy City Administrator, reported that the application for the Klein Farms 6th Addition preliminary plat is on the November Planning Commission Agenda. The Parks Commission had agreed to the concept of the Klein Farms park area being located at the southeast side of the existing Pioneer Park at the June 24, 1999 meeting. It had been discussed at the previous park meeting that the land was wooded and would be added as a passive area to the existing park and also provide a buffer to the housing development. Mr. O'Neill requested a motion stating the recommendation of the Park Commission regarding the concept for the park area. A MOTION WAS MADE BY EARL SMITH TO ACCEPT THE NORTHEAST 3.07 ACERS, PLUS CASH FOR REMAINING DEDICATION REQUIREMENTS, FOR KLEIN FARMS 6TH ADDITION. THE FOLLOWING WOULD BE REQUIRED: 1. THE PLANNING COMMISSION REQUIRE A 30' P A THW A Y ACCESS BETWEEN LOTS 6 AND 7 BLOCK 3 TO THE PARK. 2. INCLUDE A PATHWAY EXTENSION ALONG THE NORTHERN UP A EASEMENT. .., .J. REQUEST THE CITY ENGINEER TO REQUIRE A GRADING PLAN THAT WILL PRESERVE AS MANY TREES AS POSSIBLE. Motion passed unanimously. (Rick Traver absent) s.t . . . CONDITIONS OF PRELIMINARY PLA T APPROVAL - Klein Farms 6th Addition 1. Submission of a sketch plan showing layouts of the neighboring property to verify the feasibility of the street connection location. 2. Incorporation of an additional 40 foot wide pathway from Farmstead Avenue to the west plat boundary. 3. Revision of the lots to accommodate the added pathway. 4. Elimination of the internal 20 foot wide pathway connections. (This IS contrary to Parks Commission recommendation). 5. Addition of sidewalk along Farmstead Avenue from the north plat boundary to Fallon A venue. 6. Addition of pathway within the Fallon Avenue right of way. 7. Revision of the plat to illustrate future use of the land between the Amoco and NSP easements. 8. Revision of the grading plan to show a more natural pond shape. 9. Submission of a landscaping plan showing an appealing treatment of the pond area which minimizes the need for public maintenance, such as mowing, and which illustrates the proposed tree preservation efforts. 10. Revision of the plat to show adequate maintenance vehicle access to the pond. 11. Comments of other City Staff 12. Preparation of a finance plan funding lateral and trunk improvements. Exhibit Z - Conditions of Preliminary Plat Approval 51 . . . 6. Consideration of a request for a Preliminarv Plat for Klein Farms 6th Addition within the Monticello Orderlv Annexation Area. Applicant: Frank Klein and Dave Klein. The applicant has submitted an application for preliminary plat for approximately forty acres south of Klein Farms 4th Addition to consist of 51 single family lots. The Monticello Orderly Annexation Area Board reviewed the proposal at its October meeting and made the required findings of contiguity with existing City boundaries, and consistency with the MOAA land use plan. Both the MOAA and City of Monticello land use plans call for low density residential development on this property. The applicant has requested an R-l, Single Family Residential zoning designation. A small wetland has been delineated in the southeast portion of the property. This wetland is proposed to remain untouched. Park issues, pathways, street construction and pedestrian access were also discussed. The Parks Commission reviewed this plat and recommended approval of the park and pathway systems. One of their specific recommendations is to include a pathway that follows the UP A easement. A concept plan for the street extension would be important in helping to determine the standards for this street. There were also issues with regard to the lot layout in the northwest comer of the plat and the impacts that the easements will have on the future development of the neighboring property to the west. Also relating to layout is the gap between the Amoco easement and the NSP easement. Chair Frie opened the public hearing. Tim McDougall, 4774 Diamond Dr., (northwest comer of Klein Farms 4th Addn) stated his concern with street layout and types of homes that would be built, as well as the proposed pathways. It was relayed to Mr. McDougall that the City is preserving this area for future use. Dave Klein, applicant, was also present to answer any questions. Jeff O'Neill clarified condition #6 stating the grading plan would accommodate the pathway which would be outside of the ROW; the ROW is being expanded. Chair Frie closed the public hearing. There was further discussion regarding a revised preliminary plat which Mr. Klein stated he would have available prior to the next meeting. It was also stated that preparation of a finance plan funding lateral and trunk improvements will need to be discussed prior to the next meeting. ROD DRAGSTEN MOVED TO RECOMMEND APPROVAL OF THE REZONING TO R-l, BASED ON A FINDING THAT THE ZONING DESIGNATION WOULD BE CONSISTENT WITH THE LOW DENSITY RESIDENTIAL RECOMMENDATIONS OF THE CITY'S LAND USE PLAN FOR THE AREA. ROY POPILEK SECONDED THE MOTION. Motion carried. Decision 2: Preliminary Plat for Klein Farms 6th Addition sn . . . Planning Commission Agenda -10/05/99 7. Consideration of an amendment to the Zoning Ordinance to allow for a deferral of parking lot paving and/or curb requirements in the Business Districts. Applicant: City of Monticello. (NAC) A. REFERENCE AND BACKGROUND: Following requests which were heard at a previoLls Planning Commission meeting, the Commission directed staff to investigate the possibility of establishing a process for deferring paving and/or curbing requirements for certain commercial uses. The current zoning regulations allow for such a deferral for industrial uses in the industrial districts. A separate text amendment would be necessary to accommodate these requests in commercially zoned areas. If such a process is to be proposed, it is recommended that a Conditional Use Permit be Llsed. This is the process used for industrial districts, and the same general process would be appropriate to avoid confusion. However, there are different standards which would be applicable to commercial uses. For the industrial district, the intent ofthe deferral is to allow for the likelihood of future expansion where the installation of concrete curb would be inappropriate based on the expansion plan. Few commercial uses have this characteristic. Instead, the request being made in the previous commercial applications was for a deferral to allow a lesser immediate installation cost where an existing (usually non-conforming) business was remodeling and redeveloping over time. This was the case with both Little Mountain Feed and Hawk's Bar. For these uses, the issue is whether a limited improvement to an existing property, even without proper paving or curbing, is preferable to no improvement at all. In some cases, there may be a concern that adding the cost of paving or curbing as a condition to the approval of an expansion may stop any improvement to the site. One option, therefore, would be to allow the paving/curbing deferral for a limited time, and only for those businesses which are existing, and where the expansion or remodeling is correcting some other significant deficiency with respect to the zoning ordinance. For instance, replacing a non-conforming sign with a conforming sign, eliminating a setback encroachment, screening an outdoor dumpster, or eliminating an illicit outdoor storage area. Effectively, the City would be conditionally allowing the use of a site based on a finding that the improvements resolve some tangible zoning issue, exceeding ( on balance) the negative created by deferring the paving and/or curbing. Any such deferral should also require a recommendation by the City Engineer that traffic and drainage may be handled effectively without the deferred improvements. The primary concern with this issue is one of enforcement. Since it is unlikely that the City would be able to require a financial security (on the assumption that the request is based in 6~ . Planning Commission Agenda -10/05/99 economics), the primary enforcement measure is revoking the Conditional Use Permit, and perhaps, suing for compliance with the terms of the Zoning Ordinance. This seems to be an unlikely scenario. As such, the draft ordinance includes a provision that the Conditional Use Permit would lapse if not complied with in a timely manner, and the property would be considered a non-conforming use until it were brought into full compliance with all portions of the Zoning Ordinance. It is not clear that this would inspire compliance, however. B. AL TERNATIVE ACTIONS 1. Motion to recommend approval of the amendment to the Zoning Ordinance allowing deferral of paving and/or curbing requirements in the Business Districts as proposed. 2. Motion to recommend denial of the amendment, based on a finding that the amendment would be difficult to apply and to enforce. 3. Motion to table action on the amendment, subject to additional information. . C. STAFF RECOMMENDATION Staff does not recommend approval of the amendment. The difficulty in tracking and enforcing this CUP would be great, and staff is concerned as to the ability to distinguish between properties which are to be approved or denied the deferral. The only distinction is one of economics, which makes it difficult to evaluate different proposals on a legitimate land use basis. If the amendment is to be considered for approval, it will be important to include clear findings as to the benefit which is being "traded" for deferral. D. SUPPORTING DATA Exhibit A - Draft Ordinance Amendment 5E ~ ,. . . . . f. C. . IY,\ i IU.J..:;t:.U::) Il> - 5 -I..[ '1 7. Consideration of an amendment to the Zoning Ordinance to allow for a deferral of parking lot puvinlZ and/or curb reljuirements in the Business Districts. Applicant: City of Monticello. Steve Grittman provided the staff report. Following requests which were heard at a previous Planning Commission meeting, the Commission directed staff to investigate the possibility of establishing a process for deferring paving and/or curbing requirements for certain commercial uses. The current zoning regulations allow for such a deferral for industrial uses in the industrial districts. A separate text amendment would be necessary to accommodate these requests in commercially zoned areas. If such a process is to be proposed, it is recommended that a Conditional Use Permit be used. This is the process used for industrial districts, and the same general process would be appropriate to avoid confusion. However, there are different standards which would be applicable to commercial uses. Previous commercial applications were for deferral to allow a lesser immediate installation cost where an existing (usually non-confonning) business was remodeling and redeveloping over time. This was the case with both Little Mountain Feed and Hawk's Bar. For these uses, the issue is whether a limited improvement to an existing prope11y, even without proper paving or curbing, is preferable to no improvement at all. In some cases, there may be a concern that adding the cost of paving or curbing as a condition to the approval of an expansion may stop any improvement to the site. One option. therefore, would be to allow the paving/curbing deferral for a limited time, and only for those businesses which are existing. and where the expansion or remodeling is correcting some other significant deficiency with respect to the zoning ordinance. Any such deferral should also require a recommendation by the City Engineer that traffic and drainage may be handled effectively without the deferred improvements. The primary concern with this issue is one of enforcement. Since it is unlikely that the City would be able to require a financial security (on the assumption that the request is based in economics), the primary enforcement measure is revoking the Conditional Use Permit, and perhaps, suing for compliance with the terms of the Zoning Ordinance. This seems to be an unlikely scenario. As such, the draft ordinance includes a provision that the Conditional Use Permit would-lapse ifnot complied with in a timely manner, and the property would be considered a non-conforming use until it were brought into full compliance with all portions of the Zoning Ordinance. It is not clear that this would inspire compliance, however. Chair Frie opened the public hearing. No one was present. Chair Frie closed the public hearing. , Concerns of the members were specifically of enforcement. Some suggestions were to make a determination based on percentage of improvements being made to existing property and the burden of the Building Official to determine this. A suggestion was to prepare a deferral Clause, but again it was noted that enforcement would be an issue as there is no real threat to a business if they do not abide by the clause. -4- 5S -3 Planning Commission Minutes - 10/05/99 . The Monticello Country Club was also discussed as to whether or not it is significant for them to install curb and gutter other than aesthetics and it was stated it is important for traffic control as well as protection and longevity of the pavement. Typically drainage is an issue, although not in the case of the golf course. The members discussed the possibility of deferring these requirements in lieu of a correction of some other kind. Again, the problem would be enforcement at a later date. The members would like to be able to look at each case individually but do recognize that this would cause inconsistencies. A MOTION WAS MADE BY DICK FRIE TO CONTINUE THE PUBLIC HEARING AND TABLE ACTION ON THE AMENDMENT, SUBJECT TO ADDITIONAL INFORMATION AND RE-NOTIFICA TION TO INCLUDE ALL DISTRICTS. RICHARD CARLSON SECONDED THE MOTION. Motion carried. . ~ ...., CSE: f . . . Planning Commission Agenda -11/02/99 7. Consideration of an amendment to the ZoniD!! Ordinance to allow for a deferral of oarking lot pavinl!and/orcurb requirements in the Business Districts. Aoolicant: City of Monticello. (NAC) A. REFERENCE AND BACKGROUND: Following requests which were heard at a previous Planning Commission meeting, the Commission directed staff to investigate the possibility of establishing a process for deferring paving and/or curbing requirements for certain commercial uses. The current zoning regulations allow for such a deferral for industrial uses in the industrial districts. A separate text amendment would be necessary to accommodate these requests in commercially zoned areas. If such a process is to be proposed, it is recommended that a Conditional Use Permit be used. This is the process used for industrial districts, and the same general process would be appropriate to avoid confusion. However, there are different standards which would be applicable to commercial uses. For the industrial district, the intent of the deferral is to allow for the likelihood of future expansion where the installation of concrete curb would be inappropriate based on the expansion plan. Few commercial uses have this characteristic. Instead, the request being made in the previous commercial applications was for a deferral to allow a lesser immediate installation cost where an existing (often non-conforming) business was remodeling and redeveloping over time. This was the case with both Little Mountain Feed and Hawk's Bar. For these uses, the issue is whether a limited improvementto an existing property, even without proper paving or curbing, is preferable to no improvement at all. In some cases, there may be a concern that adding the cost of paving or curbing as a condition to the approval of an expansion may stop any improvement to the site. One option, therefore, would be to allow the paving/curbing deferral for a limited time, and only for those businesses which are existing, and where the expansion or remodeling is correcting some other signficant deficiency with respect to the zoning ordinance. For instance, replacing a non-conforming sign with a conforming sign, eliminating a setback encroachment, screening an outdoor dumpster, or eliminating an illicit outdoor storage area. Effectively, the City would be conditionally allowing the use of a site based on a finding that the improvements resolve some tangible zoning issue, exceeding (on balance) the negative created by deferring the paving and/or curbing. Any such deferral should also require a recommendation by the City Engineer that traffic and drainage may be handled effectively without the deferred improvements. The primary concern with this issue is one of enforcement. Since it is unlikely that the City would be able to require a financial security (on the assumption that the request is based in economics), the primary enforcement measure is revoking the Conditional Use Permit, and E5EE 5 . Planning Commission Agenda -11 /02/99 perhaps, suing for compliance with the terms of the Zoning Ordinance. This seems to be an unlikely scenario. As such, the draft ordinance includes a provision that the Conditional Use Permit would lapse if not complied with in a timely manner, and the property would be considered a non-conforming use until it were brought into full compliance with all portions of the Zoning Ordinance. It is not clear that this would inspire compliance, however. Finally, the draft ordinance has been written to include both the PZM and A-O Districts as potential applications. The Planning Commission's interest was in allowing flexibility for both the Golf Course expansion and those commercial uses which have converted former residential buildings along Broadway. The new draft would apply the same standards to these areas as for other applicable sites. B. AL TERN A TIVE ACTIONS 1. Motion to recommend approval of the amendment to the Zoning Ordinance allowing deferral of paving and/or curbing requirements in the Business Districts as proposed. 2. Motion to recommend denial of the amendment, based on a finding that the amendment would be difficult to apply and to enforce. . 3. Motion to table action on the amendment, subject to additional information. C. STAFF RECOMMENDATION As noted previously, the difficulty in tracking and enforcing this CUP would be great, and staffis concerned as to the ability to distinguish between properties which are to be approved or denied the deferral. The only distinction is one of economics, which makes it diflicult to evaluate different proposals on a legitimate land use basis. If the amendment is to be considered for approval, it will be important to include clear findings as to the benefit which is being "traded" for deferral. The ordinance is set up to allow properties which are being expanded or remodeled, typically to allow for a new use. The ordinance does not attempt to incorporate valuation issues as it has been our experience that such clauses are difficult to evaluate. Instead, the requirements of the permit allow the City some flexibility in determining where the deferral will be allowed, and incorporates the approval of the City Engineer regarding drainage and traffic control as well. D. SUPPORTING DATA - Exhibit A - Draft Ordinance Amendment _.. be: (p . . - - 7. of Steve Grittman provided an updated draft ordinance noting the CUrrent zoning regulations allow for such a deferral for industrial uses in the industrial districts. A separate text amendment would be necessary to accommodate these requests in commercially zoned areas. The draft ordinance has been written to include both the PZM and A-O Districts as potential applications. The Planning Commission's interest was in allowing flexibility for both the Golf Course expansion and those commercial uses which have converted fonner residential buildings along Broadway. The new draft would apply the same standards to these areas as for other applicable sites. The primary concern with this issue is one of enforcement. Chair Frie opened public hearing and upon hearing no response, Chair Frie closed the public hearing. There was discussion among the commissioners stating enforcement would be very difficult, possibly seeking financial surety in the form of a bond or a letter of credit would be necessary, or the business should have proof of parking rather than the City changing the ordinance. It was the consensus of the members to seek more information regarding financial surety and enforcement options. Planning Commission Minutes. 11/02/99 ROBBIE SMITH MOVED TO TABLE ACTION ON THE AMENDMENT, SUBJECT TO ADDITIONAL INFORMATION. ROY POPILEK SECONI>ED THE MOTION. Dick Frie opposed. Motion carried 4 to I. 5 ~ 7 . . ~ ...... 12. Continued Public Hearing - Consideration of an amendment to the Zoning Ordinance to allow for a deferral of parking lot paving and/or curb requirements in the Business Districts. Applicant: Citv of Monticello. Jeff O'Neill provided the report, noting that Fred Patch had checked into bonds, the cost being approximately 1 % to 5%, noting the power of the bond is its ability to damage the credit of the person getting the bond and submitting it to the City, but the bonding issue is really a negative approach. Fred stated the option of determining 25% of the taxable market value would be more appropriate. An example given was that if a business was :P1QJ\n,~ CDfflrf\\5S>i ~ Wi,nVlKS 1 ?--1-L1 q going to put at least 25% back into their business, they would be required to put in paving/and or curb. If the improvements were less than 25%, they would not be required to install at that time, but it would be accumulative and once reaching 25% they would be required to install. Also, paving and curbing required for ~ parking areas required and/or when the City Engineer requires the paving or curb and gutter for controlling storm water. Chair Frie opened the public hearing. Being no one present, the public hearing was closed. It was again stated that staff was looking for guidance from the Planning Commission. Dan Licht added that in Otsego curb is required at least around the expanded area, if not around the entire area and that they are firm on this requirement. Fred Patch asked that if the ordinance was stated as such, and recommended by the City Engineer, this could be done. CHAIR FRIE MOVED TO TABLE ANY ACTION PENDING FURTHER INPUT FROM STAFF. RICHARD CARLSON SECONDED THE MOTION. Motion carried. oE B . . . 10. Planning Commission Agenda -01/04/99 Consideration of an amendment to the Zonin~ Ordinance to allow for the deferral of parkin~ lot paving and/or curbin~ reauirements. Applicant: City of Monticello. (NAC) A. REFERENCE AND BACKGROUND: The Planning Commission tabled action on the paving and curbing deferral ordinance for the purpose of adding sections which would limit the size of projects which would be eligible and require paving and curbing for the portion of an expansion which causes an increase in parking requirements. Staffhas included language for those sections, but has exempted the A-O District from those standards to avoid conflicts with the Golf Course deferral request. As now written, the proposed ordinance would allow deferrals of paving, curbing and landscaping by CUP in the following situation: . The property must be developed, and being redeveloped for a change of use. Vacant parcels would not qualify for the deferral. The City Engineer would have to certify that the site will not need curbing for drainage purposes, and approve a drainage plan. The Planning Commission must find that an existing non-conformity is being eliminated as a condition to granting the parking lot deferral. The applicant must submit full plans. The deferral is for no more than two years. Except in the A-O District, paving and curbing would be required for parking lots attributable to expansion areas, but the deferral could be given for existing parking demand. Except in the A-O District, properties undergoing an expansion/remodeling of more than 25% of their value would not qualify for the deferral. . . . . . . B. ALTERNATIVE ACTIONS Decision 1: 1. Motion to recommend approval of the ordinance as submitted. 2. Motion to recommend denial of the ordinance as submitted. 3. Motion to table action on the ordinance, subject to additional information. c. STAFF RECOMMENDATION Staff has no additional recommendation on this item. D. SUPPORTING DATA Exhibit A - Draft Ordinance 5~ q . . - - City of Monticello Wright County, Minnesota AN ORDINANCE AMENDING TITLE 10, CHAPTER 3, SECTION 3-5 [0], OF THE MONTICEllO ZONING ORDINANCE RELATING TO PAVING AND CURBING REQUIREMENTS IN THE A-O, B-1, B-2, B-3, B-4 and PZM ZONING DISTRICTS. THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA HEREBY ORDAINS AS FOLLOWS: Section 1. Chapter 3, Section 3-5 [0] is amended by adding the following: [0] 9. (t) STALL, AISLE, AND DRIVEWAY DESIGN CONDITIONAL USE PERMIT IN THE A-O, B-1, B-2, B-3, B-4 AND PZM DISTRICTS: Staff, aisle, and driveway design requirements as noted in (k) Surfacing, (0) Curbing and Landscaping, and (r) Curbing, may be lessened subject to the following conditions: I. Any reduction in requirements requires completion of the conditional use permit process outlined in Chapter 22 of this ordinance. II. Final approval of parking and driveway drainage plans associated with a conditional use permit request shall be provided in writing by the City Engineer. The City Engineer must certify that curbing is not necessary to control drainage on the site. Engineering expenses greater than the portion of building permit fee allocated for engineer plan review shall be paid by applicant prior to occupancy. iii. Only properties which have existing buildings and are being expanded or remodeled for a new use shall be eligible for this conditional use permit. IV. The applicant must show, and the Planning st:: tD . . ..... ...., Commission must find, that there are existing non- conformities of the property which are being eliminated by the expansion or remodeling which justify a deferral to the paving, landscaping, or curbing requirements. v. A deferral shall be considered by the City as a part of an application which includes full site plans, drawn to scale, of both the immediate paving, landscaping and curbing improvements and the ultimate paving, landscaping, and curbing improvements. VI. A deferral of the paving, landscaping, and/or curbing shall be granted for no more than two (2) years, after which the paving, landscaping, and curbing shall be brought into conformance with the zoning ordinance and the approved plans. VII. In all districts other than the A-O District, this deferral shall apply only to the required paving, curbing and landscaping which is applicable to the existing portion of the use and building. Paving, curbing and landscaping attributable to any expansion shall be installed at the time of the expansion. VIII. In all districts other than the A-O District, this deferral shall be available only to those properties where the total value of building expansion or remodeling (as determined by the City of Monticello's Building Official) is equal to no more than 25% of the Estimated Market Value (EMV) of the Building as established by the Wright County Assessor at the time of the permit request. Subsequent requests shall use the original EMV as the baseline value. Section 2. This ordinance shall become effective from and after its passage and publication. //s// -6 E 1\ . . - - Planning Commission Minutes - 01/04/00 DRAFT Minutes 01/04/00 10. Consideration of an amendment to the Zoning Ordinance to allow for the deferral of parkin!! lot pavinl! and/or curbin!! requirements. Applicant: City of Monticello. Steve Grittman provided the members with a revised ordinance noting the addition of items vii and viii. He also noted a list of situations whieh would allow for deferrals of paving, curhing and landscaping by conditional use permits. Chair Frie opened the public hearing. With no one present, the public hearing was closed. It was noted by the members after further discussion that any requests for deferrals would have to have the approval of the City Engineer. ROD DRAGSTEN MOVED TO RECOMMEND APPROVAL OF AN AMENDMENT TO THE ZONING ORDINANCE TO ALLOW FOR THE DEFERRAL OF PARKING LOT PAVING AND/OR CURBING REQUIREMENTS. RICHARD CARLSON SECONDED THE MOTION. Motion carried. 5E {~ . . . City Council Agenda - 0 I /24/00 5E. Consideration of amendment to the zoning ordinance to allow for deferral of parking lot pavinl! and/or curb requirements in the Business Districts. (JO) REfERENCE;; AND BACKGROUND The Planning Commission has given great thought to the possibility of providing additional flexibility to businesses with regard to deferral of parking lot paving and/or curb requirements in the business district. This ordinance amendment was initiated primarily by the Planning Commission due to some concern that in certain instances it may not be appropriate to require curb and gutter upon business expansion. The review process started after I Iawks Bar requested a deferral on construction of curb and gutter with the expansion recently approved. Similarly, the review was encouraged by the Golf Course' request for a deferral of parking requirements. As you review the Planning Commission information and discussion, you will find that this issue received a tremendous amount of attention and discussion. In summary, the amendment as proposed will allow deferral of parking and curb requirements under special circumstances which are identified in the ordinance. Although the intent was to provide additional flexibility in deferring parking lot improvements, it is the view of City staff that provisions of this new code will be used on a very limited basis and is not likely to have a great impact on current standards. Please note that the Planning Commission was very concerned with providing too much flexibility with regard to paving and curb requirements, as the requirement for curb and gutter, for the money, truly enhance the appearance of commercial areas and support proper management of stormwater. Under the proposed ordinance, Hawks Bar would not be eligible for deferral of parking. On the other hand, the Golf Course, located in the Ag district, would be eligible for the parking lot deferral via a CUP process. ALTERNATIVE ACTIONS 1. Motion to adopt the recommendation and findings presented to the City Council by the Planning Commission. 2. Motion to deny approval of the ordinance amendment as proposed. RECOMMENDA TION Staff recommends that the City Council adopt the ordinance amendment as proposed by the Planning Commission. SUPPORTING DATA Copy of proposed ordinance amendment, along with Planning Commission agenda supplements and meeting minutes. . Council Agenda - 1/24/00 SF. Consideration of resolutions establishing agreements with Marauette Bank to utilize software for automated transactions and account access and reoorting. (C.S., R.W.) A. REFERENCE AND BACKGROlJND: The City's Finance Department is planning to implement a software package from Marquette Hank which will allow us to view our bank account transactions and print reports through a modem connection. We will also utilize the system for automated clearing house transactions such as wire transfers and direct deposits. This will allow us to receive banking information and process transactions in a more timely manner. Marquette Bank requires signed agreements that establish policies regarding the use of the software. The agreements must be accompanied by a resolution certiflying authorization to execute the agreements and verifying names and signatures of the city's authorized [bank] signers. B. ALTERNATIVE ACTIONS: 1. Approve the resolutions authorizing the city to execute agreements to utilize the Marquette Bank automated software. . 2. Deny the resolutions. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator and the finance department that the resolutions be approved. D. SUPPORTING DATA: Copy of proposed resolutions and agreements. . . . . RESOLUTION NO. 2000-6 Establishing BOI Balance and Statement Reporting Agreement Depositor/Customer: City of Monticello Financial Institution: Marquette Bank, N.A. Account No: 7600017 I, the undersigned, the City Administrator of the City of Monticello named above (the "Customer") HEREBY CERTIFY that the Customer is organized and existing under the laws of the State of Minnesota, with its principal otTice at 505 Walnut Street, Suite 1, Monticello, MN 55362. CUSTOMER'S NAME: The City of Monticello is the complete and correct name of the Customer. I FURTHER CERTIFY that at a meeting of the City Council of the Customer duly and regularly called and held on January 24, 2000, at which a quorum was present and voting, the following resolutions were adopted: RESOL VED, that the Finance Department of the City of Monticello is hereby authorized to execute the BOI Balance and Statement Agreement (the "Agreement") on behalf of the Customer with Marquette Bank, a bank (the "Bank") providing the Customer with computer access to information relating to the Customer's accounts held at the Bank and designated by the Customer and approved by the Bank in the Agreement (the "Account's"), and also allowing the Customer to electronically initiate internal transfers on said Account(s) in accordance with the terms and conditions of the Agreement. FURTHER RESOLVED, that any of the following named officers or employees of the Customer, whose actual signatures are shown below (the Authorized Signor(s)) are authorized, on behalf of the Customer, to execute any amendments to the Agreement, to execute such other agreements and to perform such other acts as they deem necessary to carry out the provisions of these resolutions and the terms of the Agreement. AUTHORIZED SIGNORS Name Rick Wolfsteller Signature Title City Administrator Date Name Sue Thibodeaux Signature Title Bookkeeper Date Name Catherine M. Shuman Signature Title Finance Assistant/MIS Date 5\: FURTHER RESOLVED, that the authority hereby conferred herein shall remain in full force and . effect until written notice of its revocation shall be received by the Bank at its office. I FURTHER CERTIFY that the persons named above occupy the positions set opposite their respective names, that the signatures set forth above are genuine and that the foregoing resolutions are in full force and effect and have not been modified in any manner. The Bank shall be indemnified and held harmless from any loss suffered or any liability incurred by it in continuing to act in accordance with this resolution. IN TESTIMONY WI-IEREOF, I have hereunto set my hand this 241h day of January, 2000. City Administrator (Seal) Mayor . . Sb . . . RESOLUTION NO. 2000-5 Establishing Automated Clearing House (ACH) Originations Agreement Depositor/Customer: City of Monticello Financial Institution: Marquette Bank Account No: 7600017 I, the undersigned, the City Administrator of the City of Monticello named above (the "Customer") 1 rEREBY CERTIFY that the Customer is organized and existing under the laws of the State of Minnesota, with its principal office at 505 Walnut Street, Suite 1, Monticello, MN 55362, CUSTOMER'S NAME: The City of Monticello is the complete and correct name of the Customer. I FURTlIER CERTIFY that at a meeting of the City Council of the Customer duly and regularly called and held on January 24, 2000, at which a quorum was present and voting, the following resolutions were adopted: RESOL VED, that the Finance Department of the City of Monticello is hereby authorized to execute the BOI Automated Clearing House "ACE" Originations Agreement (the "Agreement") on behalf of the Customer with Marquette Bank, a bank (the "Bank") allowing the Customer to initiate ACI I transfers by means of the automated clearing house operating by the Federal Reserve Bank with the Bank acting as the Originating Financial Institution, on the Customer's accounts held at the Bank and designated by the Customer and approved by the Bank in the Agreement (the "Account's"), in accordance with the terms and conditions of the Agreement rURTHER RESOL VED, that any of the following named officers or employees of the Customer, whose actual signatures are shown below (the Authorized Signor(s)) are authorized, on behalf of the Customer, to execute any amendments to the Agreement, to execute such other agreements and to perform such other acts as they deem necessary to carry out the provisions of these resolutions and the terms of the Agreement AUTHORIZED SIGNORS Name Rick Wolfsteller Signature Title City Administrator Date Name Sue Thibodeaux Signature Title Bookkeeper Date Name Catherine M, Shuman Signature Title Finance Assistant/MIS Date st: . . . fURTHER RESOLVED, that the authority hereby conferred herein shall remain in full force and dIect until written notice of its revocation shall be received by the Bank at its office. I FURTHER CERTIFY that the persons named above occupy the positions set opposite their respective names, that the signatures set forth above are genuine and that the foregoing resolutions are in full force and effect and have not been modified in any manner. The Bank shall be indemnified and held harmless from any loss suffered or any liability incurred by it in continuing to act in accordance with this resolution. IN TESTIMONY WHEREOF, I have hereunto set my hand this 24th day of January, 2000. City Administrator (Seal) Mayor SJ: . . . AUTOMATED CLEARING HOUSE ("ACH") ORIGINATIONS AGREEMENT THIS AGREEMENT (the "ACH Agreement") is made and entered into this , by and between (the "Bank") and (the "Customer"). day of WHEREAS, the Customer wishes to initiate ACH transfers by means of the automated clearing house (the "ACH") operated by the Federal Reserve Bank (the "FRB") and the Bank is willing to act as the Originating Depository Financial Institution ("ODFI") with respect to such transfers; and WHEREAS, the Bank is willing to originate ACH transfers on behalf of the Customer subject to the terms and conditions of this ACH Agreement. NOW THEREFORE, the Bank and the Customer hereby agree as follows: 1. Definitions. Unless otherwise expressly defined herein capitalized terms shall have the meanings provided in the National Automated Clearing House Association Operating Rules. Account or Accounts. The Customer's Business Checking and Savings Accounts maintained by the Customer at the Bank and which the Customer and the Bank have agreed in writing will be subject to this ACH Agreement and identified in the applicable service exhibit (the "Service Exhibit") attached hereto for the services selected by the Customer. Authorized Signor. Any individual the Customer has authorized in its resolution delivered to the Bank to; (i) sign this ACH Agreement and any other related agreement on behalf of the Customer; (ii) request the Bank to terminate an existing Voice Retrieval Code and issue and new Voice Retrieval Code; and (iii) add or delete an Authorized Signor. Communications Password. The password provided to the Customer by the Bank which when used together with the Customer Identification Number allows the Customer to access the Bank- On-It ("BOI") System to initiate ACH transactions. Customer Identification Number. The number provided to the Customer by the Bank which when used together with the Communications Password allows the Customer to access the BOI System to initiate ACH transactions. Customer. The business entity identified above. User Name and Password. A User Name and Password are provided to the Customer by the Bank in order to allow the Customer to make its initial access into the BOI Transact System. The Customer's employee responsible for controlling the use of the BOI Transact System should then assign a User Name and Password to each employee of the Customer who will have authority to perform functions on the BOI Transact System The Bank shall have no knowledge of the Customer's User Name and Password or any changes thereto. User. Any individual that the Customer has authorized to access the BOI Transact System on behalf of the Customer. Voice Retrieval Code (the "Voice Retrieval Code"). The personal identification number provided to the Customer by the Bank which identifies the Customer and which the Customer must provide to the Bank on the Bank's Voice Retrieval System each time the Customer initiates an ACH transmission. s):. 2. Services. The Customer may elect any of the following ACH transfer services provided by the Bank. . (Check the applicable ACH transfers services) o BOI Transact System ACH Transmissions. The Customer will initiate ACH transfers directly to the Bank through on-line access to the Bank's BOI Transact System. (If the Customer chooses this service the Service Exhibit A which sets forth additional terms and conditions must also be signed by the Customer.) o Direct Transmissions. The Bank will process ACH transfers submitted to the Bank by the Customer. (If the Customer chooses this service then Service Exhibit B which sets forth additional terms and conditions must also be signed by the Customer) o Transmissions Through Customer's Third-Party Vendor. The Bank would process ACH transfers based on information provided to the Bank by the Customer's third-party vendor. (If the Customer chooses this service the Service Exhibit C which sets forth additional terms and conditions must also be signed by the Customer.) 3. Training and Telephone Support for the BOI Transact System. If the Customer selects the BOI Transact System, the Bank will provide the Customer with four (4) hours of free on-site and/or telephone installation and support training as part of the software fee. Installation and/or support training in excess of the initial four (4) hours will be billed at the Bank's then current hourly rate for those services which is $75.00. The Bank reserves to change the hourly rate, at any time, at its sole discretion. If the training is to be conducted on-site the Bank may also require that it be reimbursed for its travel and lodging expenses. . The Bank will also provide the Customer with a reasonable amount of on-going telephone support to answer questions regarding the operation and use of the BOI System, at no charge. 4. Transmittal of Entries by the Customer. Transmissions initiated by the Customer will be governed by the National Automated Clearing House Association ("NACHA") Operating Rules, as amended from time to time ("Rules"). The Customer, or its third party vendor, if that service is selected, shall transmit Entries to the Bank in compliance with formatting the requirements of the Rules and any other requirements of the Bank, including but not limited to, a File of payees' names, bank ABA numbers, account numbers, debit and credit amounts. The Bank shall have no obligation to act on Entries received that do not comply with the foregoing requirements, or to reverse, adjust, or stop payment or posting of any Entries received or prepared based on the data from the CUstomer. M... The total dollar amount of Entries transmitted by the Customer to the Bank, daily, shall not exceed -r $ 5" /'I..,'I//an,. for Credit Entries and $5' /l1/ II/<.Jh. for Debit Entries. 5. Delivery Deadlines. All Entries from the Customer must be received by the Bank prior to 3:00 p.m. CST on a business day and not less than one (1) business day prior to the Effective Date of such Entry. 6. Discontinue or Change Service. The Bank reserves the right to discontinue or change any of the ACH services set forth above, at any time, at its sole discretion. 7. No Verification. The Customer agrees that unless expressly stated to the contrary herein and notwithstanding the terms and conditions of any agreement between the Bank and the Customer, the Bank will not call the Customer or any of the Customer's Users to verify transaction requests using the Customer's Name and Password and Voice Retrieval Code. . 8. Honoring Transactions. The Bank is under no obligation to honor, either in whole or in part, any transfer requests which: (i) exceed the Customer's available funds in the Accounts with the Bank; 5~ . . 14. . (ii) are not in accordance with any condition agreed to by the Customer in this ACH Agreement, or in the documents governing the Accounts; or (iii) are not in accordance with the Security Procedures, as set forth in Section 15 of this ACH Agreement or any other requirements of the Bank. The Bank may, at its sole discretion, create an overdraft in the Customer's Account to complete a transfer which the Customer agrees to repay to the Bank upon demand, together with interest, at the Bank's then current per diem interest rate for such overdrafts, a processing fee, and, if necessary, the cost of collection. The Bank is not and shall not be liable for failing or refusing to perform any transaction which does not include all information necessary for its completion or which would violate this ACH Agreement or any other agreement with the Bank. 9. Hardware, Equipment and Software. The Customer is responsible for obtaining, installing, maintaining and updating the necessary software, hardware and related equipment needed to utilize the particular services selected by the Customer. 10. Documentation. Prior to executing this ACH Agreement the Customer must provide all the documentation reasonably required by the Bank, including but not limited, to the Bank's resolution attached hereto as Exhibit D. 11. User Manual for 801 Transact System. If the BOI Transact System is selected, the Customer will be provided with one BOI Transact System User Manual (the "User Manual") describing the operation and services of the 801 Transact System. The Customer agrees to be bound to the terms and conditions of the User Manual. The Customer agrees not to copy or otherwise duplicate the User Manual or any periodic updates and further agrees to return the User Manual and any updates upon termination of this ACH Agreement. 12. 801 Transact System Voice Retrieval Code and User Name and Password. If the BOI Transact System is selected by the Customer, the Bank shall provide the Customer with the Voice Retrieval Code and Password (as identified in Section 15(ii) of this ACH Agreement) for that service to initiate ACH transactions. The Customer is responsible for the distribution of the Voice Retrieval Code and Password to its Users. 13. Sub-License of 801 Transact System. If the Customer selects the BOI Transact System, the Bank is the holder of a non.exclusive license to offer the BOI Transact System software to its customers and hereby grants to the Customer a non-transferable sub-license for the BOI Transact System software, subject to the terms and conditions of this ACH Agreement. The Customer acknowledges and agrees that the BOI Transact System software is the property of Global Payment Systems, Inc. ("Licensor") and being offered to the Customer by the Bank subject to the procedures and requirements of the Licensor as may be established by the Licensor from time to time. The Customer agrees that it; (i) has no right, title or interest in the BOI Transact System software; (ii) will not make or permit any third party to make copies of said software; (iii) will be bound by the terms and conditions of the Global License Agreement; and (iv) will return the BOI Transact System software to the Bank immediately upon the termination of this ACH Agreement. Fees and Charges; Payment; Security Interest. The fees and charges to the Customer for the services selected by the Customer are set forth in the Service Exhibit which is applicable to the selected services. The Customer agrees to pay such fees and charges and authorizes the Bank to charge the Customer's Accounts for said fees and charges. It is understood and agreed that these fees and charges relate only to the utilization of the selected services and are exclusive of other fees and charges that may otherwise be imposed by the Bank upon the Account. The Bank reserves the right to increase its fees and charges set forth in the Service Exhibits, or to impose additional fees and charges, in its sole discretion upon written notice to the Customer. The Customer grants the Bank a security interest in all property of the Customer held in the Bank's possession to secure payment of the Customer's obligations under this ACH Agreement. 5F- . . . 15. Security Procedures for ACH Transactions. The Customer agrees to comply with the following requirements and procedures in using the selected services which requirements and procedures can be amended by the Bank at any time. (i) The Customer must complete the information required by the Bank for each of its Authorized Signors. (ii) The Customer must use its (a) User Name and Password, (b) Communications Password, and (c) Customer Identification Number to access the BOI Transact System along with its Voice Retrieval Code to initiate ACH transactions. (iii) The Customer will advise its Users which of its accounts are subject to this ACH Agreement and can be accessed by the User. (iv) The Customer will establish and maintain procedures necessary to detect and prevent improper access to any of its Password, or the Voice Retrieval Code for the 801 Transact System by unauthorized persons and to ensure that the Password and the Voice Retrieval Code will be maintained in the strictest confidence. (v) If the Customer believes that its Communications Password or its Voice Retrieval Code to the BOI Transact System has become known to any unauthorized person, the Customer shall immediately provide telephone notice to the Bank to be followed by written notice delivered to the Bank as soon as reasonably possible. (vi) The Customer, through an Authorized Signor, may change the Voice Retrieval Code by written request received by the Bank at least three (3) business days in advance. The Customer authorizes the Bank to act upon written requests reasonably believed by the Bank to be from an Authorized Signor. In an emergency, an Authorized Signor of the Customer may verbally request the immediate termination of a Voice Retrieval Code. The Bank will use reasonable efforts to terminate the Voice Retrieval Code as soon as reasonably possible and to provide the Customer with a new Voice Retrieval Code. (vii) The Customer may add or delete any Authorized Signor by written notice delivered to the Bank signed by the number of Authorized Signor(s) required in the resolution delivered to the Bank, other than the one(s) being added or deleted. Such notice will be effective on the first business day following the day the Bank's receipt thereof (ix) For ACH transfers accessed through the BOI Transact System the Customer must telephone the Bank's Voice Retrieval System at the telephone number provided to the Customer by the Bank each time the Customer initiates an ACH transmission. Once the Customer is connected to the Voice Retrieval System it must provide the following information regarding the Entries it is transmitting to the Bank: (a) The name of the Customer (b) The Customer's Voice Retrieval Code (c) The total number of transactions contained in each File. (d) The total dollar amount contained in the File. (e) The Effective Date of transactions. ~f: . Upon receipt of the File by the Bank from the Customer, the Bank will compare the contents of the File with the information provided by the Customer on the Voice Retrieval System. If that information matches the information in the File the Bank will process the File. The Bank will not process a File if it does not receive the confirming information on its Voice Retrieval System on or before the delivery deadline set forth in Section 5 hereof. The Bank will notify the Customer if the File information and the Voice Retrieval System information does not match or is not received. 16. Processing, Transmittal and Settlement by the Bank. A. Except as provided in Sections 17 and 18 of this ACH Agreement, the Bank shall (i) process Entries received from the Customer that conform with the File specifications set forth in this ACH Agreement and the Rules, (ii) transmit such Entries as an Originating Depository Financial Institution to the FRB, acting as the Bank's ACH processor, and (iii) settle for such Entries in accordance with this ACH Agreement. B. The Bank shall transmit such Entries to the FRB by the deadline of the FRB at least one (1) business day prior to the Effective Entry Dates shown in such Entries, provided (i) such Entries are received by the Bank's related cut-off time on a business day, (ii) the Effective Entry Date is at least one day after such business day, and (iii) the FRB is open for business on such business day. C. Entries electronically transmitted shall be deemed received by the Bank when the transmission and compliance with the related Security Procedures are completed. D. If any of the requirements of clauses (i), (ii) or (iii) of Section 16.B above are not met the Bank shall use reasonable efforts to transmit such Entries to the FRB by the next deposit deadline of the FRB which is a business day and a day on which the FRB is open for business. . 17. On-Us Entries. Except as provided in Section 18 of this ACH Agreement, in the case of an Entry received for posting to an Account the Customer maintains with the Bank (an "On-Us Entry") the Bank will post the Entry to the Receiver's Account in the amount of such Entry on the Effective Entry Date contained in such Entry, provided the requirements set forth in clauses (i), (ii) and (iii) of Section 16.B of this ACH Agreement are met. If any of those requirements is not met, the Banks shall use reasonable efforts to post the Entry to the Receiver's Account in the amount of such Entry on the next business day following such Effective Entry Date. 18. Rejection of Entries. The Bank may reject any Entry which does not comply with the requirements of this ACH Agreement. The Bank shall have the right to reject any On~Us Entry for any reason for which an Entry may be returned under this ACH Agreement or the Rules. The Bank shall have the right to reject any Entry if the Customer has failed to comply with its Account obligations under Section 22 of this ACH Agreement. The Bank shall notify the Customer of such rejection by telephone no later than the business day such Entry would otherwise have been transmitted by the Bank to the FRB or, in the case of an On-Us Entry, no later than the Effective Entry Date. The Bank shall have no liability to the Customer by reason of the rejection of any such Entry or the fact that such notice is not given at an earlier time than provided for herein. 19. Payment of Entries. . A. Credit Entries. The Customer shall pay the Bank in immediately available funds the total amount of each credit Entry with respect to which Entry data has been transmitted to the Bank under this ACH Agreement. B. Debit Entries. The Bank shall credit the Account with the total amount of the debit Entry transmitted to the Bank. S\= 20. . Reversal/Deletion of Entries by the Customer. The Customer shall have the right to reverse/delete an Entry after its receipt by the Bank, by delivering to the Bank, prior to the deadlines set forth in Section 5 hereof and in compliance with the Security Procedures set forth in Section 15 hereof, a written request (use Exhibit E attached hereto) signed by an Authorized Signor. After its receipt by the Bank it shall use reasonable efforts to act on a request by the Customer for the reversal/deletion of an Entry prior to transmitting it to the FRB, or in the case of an On-Us Entry, prior to posting to the Receiver's account, provided such request complies with the Security Procedures set forth in Section 15 of this ACH Agreement, however the Bank shall have no liability if such reversal/deletion is not affected. 21. Notice of Returned Entries. The Bank shall notify the Customer by mail sent no later than one (1) business day after the advise of a returned Entry is received by the Bank from the FRB. Except for an Entry re-transmitted by the Customer in accordance with the requirements of Section 15 of this ACH Agreement, the Bank shall have no obligation to re-transmit a returned Entry to the FRS if the Bank complied with the terms of this ACH Agreement with respect to the original Entry. 22. The Account. The Bank may, without prior notice or demand, obtain payment of any amount due and payable to it under this ACH Agreement, by debiting the Accounts of the Customer and shall make an adjustment to the Accounts for any amount received by the Bank by reason of the return of an Entry transmitted by the Bank for which the Bank has previously received payment from the Customer. Such Entry shall be made as of the day of such receipt by the Bank. The Customer shall at all times maintain a balance of available funds in the Accounts sufficient to cover its payment obligations under this ACH Agreement. In the event there are not sufficient funds in the Accounts to cover the Customer's obligations under this Agreement, the Customer agrees that the Bank may debit any account maintained by the Customer with the Bank or with any affiliate of the Bank or that the Bank may set off against any amount it owes to the Customer in order to obtain payment of the Customer's obligations under this ACH Agreement. . 23. Account Reconciliation/Periodic Statements. All Entries transmitted by the Bank or posted to a Receiver's Account maintained with the Bank will be shown in the aggregate amount on the Customer's periodic statement issued by the Bank with respect to the Account pursuant to the agreement between the Bank and the Customer. The Customer agrees to notify the Bank promptly of any discrepancy between the Customer's records and the information shown on any such periodic statement. If the Customer fails to notify the Sank of any such discrepancy within thirty (30) days of receipt of a periodic statement containing such information, the Customer agrees that the Bank shall not be liable for any loss resulting from the Customer's failure to give such notice or for any loss of interest with respect to any Entry shown on such periodic notice. If the Customer fails to notify the Bank of any such discrepancy within thirty (30) days of receipt of such periodic statement the Customer shall be precluded from asserting such discrepancy against the Bank. 24. Customer Representations, Agreements. The Customer makes the following representations and warranties to the Bank: . A. Organization and Good Standing. The Customer is duly organized, validly existing and in good standing. B. Validity of the Agreement. The Customer has the full power and authority to execute this ACH Agreement, and any other related agreements. This ACH Agreement and any other related agreements to which the Customer is a party, when executed and delivered, will constitute the valid and binding obligation of the Customer enforceable against it in accordance with its terms, subject to bankruptcy laws and other similar laws of general application affecting the rights of creditors and subject to the application of the rules of equity. The execution, delivery and performance of this ACH Agreement, and any other related agreements by the Customer its compliance with the terms hereof and thereof and Sl= . . 25. 26. . the consummation of the transactions contemplated hereby and thereby have been duly authorized. C. No Conflict. The execution and delivery of this ACH Agreement and any other related agreements by the Customer and the performance of its obligations hereunder and thereunder are not in violation or breach of, and will not conflict with or constitute a default under any of the terms of the partnership agreement or articles of incorporation or bylaws of the Customer, if any, or any note, security agreement, lease, deed of trust, mortgage, franchise, license, permit or other contract, agreement or commitment binding upon the Customer or its assets and will not conflict with or violate any applicable law, rule, regulation, judgment, order or decree of any government or governmental instrumentality or court having jurisdiction over the Customer or its assets. D. Each person or entity shown as the Receiver on an Entry received by the Bank from the Customer has authorized the initiation of such Entry and the posting of its account in the amount and the Effective Entry Date shown on such Entry. E. Such authorization is operative at the time of transmittal or posting by the Bank as provided herein. F. Entries transmitted to the Bank by the Customer are limited to types of Entries set forth in Section 5 of this Agreement G. The Customer shall perform its obligations under this ACH Agreement in accordance with all applicable laws and regulations. H. The Customer shall be bound by and comply with the Rules as are in effect from time to time. The Customer shall indemnify the Bank against any loss, liability or expense (including attorneys' fees and expenses) resulting from or arising out of any breach of any of the foregoing representations, or any of the terms of this ACH Agreement. Bank Representations and Warranties. The Bank makes the following representations and warranties to the Bank: A. The Bank warrants that it will use its best efforts to provide the services selected by the Customer in this ACH Agreement. The Bank's sole responsibility under this warranty shall be to replace any defective diskette or printed materials that accompany the BOI Transact System software that are detected by the Customer within 30 days after delivery of the software. B. The Bank will use its best efforts to promptly provide telephone support to the Customer for the BOI Transact System. C. The Bank will exercise reasonable care in processing information the Customer places into the Customer's Accounts. The Bank may rely on all information provided by the Customer to the Bank for the services selected and shall not be liable or responsible for information entered which is not current or is inaccurate, incomplete, incorrect or lost in transmission. Disclaimer of Warranties. EXCEPT AS SPECIFICALLY PROVIDED ABOVE, THE BANK MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE BOI TRANSACT SYSTEM OR ANY OTHER SELECTED SERVICES AND DISCLAIMS ALL WARRANTIES OF MERCHANTIABLlTY AND WARRANTIES OF FITNESS FOR A PARTICULAR USE OR PURPOSE. IN NO EVENT SHALL THE BANK OR ITS DIRECTORS, EMPLOYEES, AND AGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL, 5~ . 27. . PUNITIVE, EXEMPLARY OR CONSEQUENTIAL LOSSES OR DAMAGES INCLUDING, WITHOUT LIMITATION, LOSS OF USE, LOSS OF PROFITS AND CLAIMS OF THIRD PARTIES, WHETHER OR NOT THE POSSIBILITY OF SUCH LOSSES OR DAMAGES WAS KNOWN BY THE BANK. THE BANK AND ITS DIRECTORS, EMPLOYEES AND AGENTS ARE NOT AND SHALL NOT BE LIABLE FOR THE ACTS AND/OR OMISSIONS OF ANY THIRD PARTY, INCLUDING BUT NOT LIMITED TO THE LICENSOR OR ANY OTHER VENDOR, THE BOI TRANSACT SYSTEM OR ITS COMPONENTS Limitation of Liability, Liquidated Damages. The Bank shall not be liable to the Customer for any act or failure to act, unless such act or failure to act is grossly negligent. In addition, the Bank shall not be liable or responsible to the Customer in any way for loss or damage caused in whole or in part by: (i) delays in making or executing transactions due to Bank or third party computer errors or equipment failure; (ii) errors or omissions in data or information of any kind relating to inquires, instructions, messages or transactions originating from the BOI Transact System or any other selected service which are not caused by the Bank's gross negligence or willful misconduct; (Hi) unauthorized use of the BOI Transact System or any other selected service by any person, other than Bank employees, to affect or to attempt to affect the Customer's Accounts or to gain information as to the Customer's Accounts; (iv) the Customer's failure to comply with the terms of this ACH Agreement or to use the BOI Transact System or any other selected service in accordance with instructions; (v) the Customer's acts or omissions (including without limitation the amount, accuracy, timeliness of transmittal or due authorization of an Entry received from the Customer) or those of any other person or entity, including without limitation, the Customer's third party vendor, any Federal Reserve Bank, the Bank's Automated Clearing House, or transmission or communications facility, any Receiver or Receiving Depository Financial Institution (including, without limitation, the return of an Entry by such Receiver or Receiving Depository Financial Institution), and no such person or entity shall be deemed the Bank's agent and (vi) any Act of God or public enemy, accident, failure or reduction of electric power, failure of telephone or computer systems, natural disaster, law, or regulation, governmental act, or license, or failure or defaults of vendors, suppliers, or contractors. In no event shall the Bank be liable for any consequential, special, punitive or indirect loss or damage which the Customer may incur or suffer in connection with this ACH Agreement. Without limiting the foregoing provisions, the Bank's liability under this ACH Agreement shall be limited to the Customer's actual damages. In addition to the foregoing it is further understood and agreed that the ability of the Bank to provide access to the BOI Transact System and the services described above is conditioned upon the continued operation and availability of the Licensor's services to the Bank. The Bank shall not be responsible for the inability to provide said services in the event that access by the Customer or the Bank to Licensor's services is suspended or terminated for any reason. In the event that access by the Bank to Licensor's services is unavailable for an extended period of time the Bank may terminate this ACH Agreement without further liability or obligation to the Customer. The Bank shall also be excused from failing to transmit or delaying the transmittal of an Entry if such transmittal would result in the Bank's having exceeded any limitation upon its intra-day net funds position established pursuant to present or future Federal Reserve guidelines or if the Bank would otherwise violate any provision of any present or future risk control program of the Federal Reserve or any applicable rule or regulation of any other U.S. governmental regulatory authority. 28. Compliance With Security Procedures. . A. If any Entry (or request for reversal/deletion of any Entry) received by the Bank purports to have been transmitted or authorized by the Customer, it will be deemed effective as of the Customer's Entry (or request) and the Customer shall be obligated to pay the Bank the amount of such Entry as provided herein even though the Entry (or request) was not authorized by the Customer, provided the Bank acted in compliance with the Security Procedures set forth in Section 15 of this with respect to such Entry. 1;\: . B. If an Entry (or request for reversal/deletion of an Entry) received by the Bank was transmitted or authorized by the Customer, the Customer shall be obligated to pay the amount of the Entry as provided herein, whether or not the Bank complied with the Security Procedures set forth in Section 15 hereof and with respect to that Entry and whether or not that Entry was erroneous in any respect, or that the error would have been detected if the Bank had complied with such Procedure. 29. Inconsistency of Name and Account Number. The Customer acknowledges and agrees that, if an Entry describes the Receiver inconsistently by name and/or account number, payment of the Entry transmitted by the Bank to the Receiving Depository Financial Institution may be made by the Receiving Depository Financial Institution (or by the Bank in the case of an On-Us Entry) on the basis of the account number even if it identifies a person or entity different from the named Receiver, and that the Customer's obligation to pay the amount of the Entry to the Bank is not excused in such circumstances. 30. Data Retention. The Customer shall retain data on file adequate to permit remaking of Entries for a reasonable time following the date of their transmittal to the Bank as provided herein, and shall provide such Data to the Bank upon its request. 31. Disclosures. . A. Provisional Payment. Credit given by the Bank to the Customer with respect to an Automated Clearing House credit Entry is provisional until the Bank receives final settlement for such Entry through the Federal Reserve Bank. If the Bank does not receive such final settlement, the Customer is hereby notified and agrees that the Bank is entitled to a refund of the amount credited to the Customer in connection with such Entry and the party making the payment to you via such Entry (i.e. the originator of the Entry) shall not be deemed to have paid the Customer in the amount of such Entry. B. Notice of Receipt of Entry. Under the Rules the Bank is not required to give next day notice to the Customer of receipt of an ACH item and the Bank will not do so. However, the Bank will continue to notify the Customer of the receipt of payments in its periodic statements for the account. 32. Indemnification. The Customer agrees to defend, indemnify and hold harmless the Bank, and its directors, employees and agents from and against any and all claims actions, and law suits, whether groundless or otherwise, and from and against any and all liabilities, losses, damages, costs, charges, attorneys' fees and other expenses of every nature, directly or indirectly resulting from. due or relating to, or arising by reason of, use, including unauthorized use, or misuse, or loss caused by the use of the BOI Transact System or any other selected service and including, without limitation, any loss arising directly or indirectly out of, or in any way connected with: (i) the Customer's failure or neglect to transmit any deposit information to the Bank; (ii) the completion and execution by the Bank of transactions in an incorrect amount and for which the Bank is not liable under paragraph 27, above; (iii) the return of any transaction for any reason whatsoever; (iv) any action taken by the Bank pursuant to duplicate or several communications of the same deposit information by the Customer; (v) any delay in communications which prevents the receipt of any deposit information by the Bank prior to its normal daily posting; (vi) the Customer's breach of the Licensor's License Agreement; (vii) the information provided to the Bank and/or the Licensor by the Customer; (viii) the Customer's use of any information provided it by either the Bank and/or the Licensor and (ix) the Customer's breach of any of its obligations under this ACH Agreement and any other related agreements. 33. Additional Terms and Conditions. . A. Amendment of Agreement, Waiver. The Bank may amend this ACH Agreement by providing written notice to the Customer describing the proposed amendment at least thirty (30) days prior to the effective date of the amendment. The amendment will 5~ . become binding as of the effective date unless the Customer elects to terminate this ACH Agreement as provided herein. No other amendment or modification of any provision of this Agreement will be effective unless made in writing signed by all parties. No failure or delay by any party in exercising any right, power or remedy under this ACH Agreement will operate as a waiver of any such right, power or remedy, nor will any single or partial exercise of any right, power or remedy preclude any further exercise of any right, power or remedy. B. Notices. All notices and other communications provided for in this ACH Agreement shall be in writing, shall be deemed given when personally delivered or when deposited in the U.S. Mail, mailed first class, and addressed as indicated at the end of this Agreement. Any party may, by notice given in accordance with this paragraph, change the address to which notice shall be sent. The Bank shall be entitled to rely on any written notice or communication believed by it, in good faith, to be genuine and to have been signed by an Authorized Signor, and any such communication shall have been deemed to have been signed by such person. C. Confidentiality. The Bank shall treat all files and other information as confidential ("Confidential Information") that the Customer may enter into the BOI Transact System or through any other selected service and will not willfully disclose or otherwise provide access to such Confidential Information to any third party, other than the Licensor of the BOI Transact System or the Customer's third~party if those services are selected. Upon the termination of this ACH Agreement, the Bank may dispose of all such Confidential Information in any manner it deems to be appropriate unless the Customer furnishes the Bank with written instructions for the disposition of the Confidential Information prior to termination. . D. Entire Agreement. This ACH Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supercedes all prior understandings and agreements between the parties; provided, however, the Customer understands and agrees that the Customer is also bound by the terms of all signature cards, rules and regulations, the Deposit Account Agreement and Disclosure, and any other agreements and disclosures connected with the opening of the Customer's Accounts. E. Partial Invalidity. Any provision of this ACH Agreement which is prohibited or held unenforceable will be ineffective only to the extent of such prohibition or enforceability, without invalidating the remaining provisions of this ACH Agreement. F. Non-Assignment. No party to this ACH Agreement may assign any of its rights, liabilities or obligations under this ACH Agreement without the prior written consent of the other party; provided, however, the Bank may assign all or part of its rights, liabilities or obligations under this ACH Agreement to its parent corporation or to any subsidiary or affiliate of the Bank. G. Binding Agreement. This ACH Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. H. Survival. Except as otherwise provided in this ACH Agreement, the warranties, representations, covenants and agreements contained in or made pursuant to this ACH Agreement, including without limitation Sections 22, 24, 25, 26, 27, 32 and 34 of the ACH Agreement, shall survive the termination of this ACH Agreement. . I. Governing Law. This ACH Agreement shall be governed by and construed in accordance with the laws of the state in which the Bank is located. sr: J. Controlling Agreement. Unless otherwise expressly stated herein in the event of a conflict between the terms of this ACH Agreement, any applicable Account agreements or other related agreements, this ACH Agreement shall prevail. . 34. Term and Termination. A. Term. This ACH Agreement shall remain in effect from the date of this ACH Agreement until terminated in accordance with the terms hereof. B. Termination. This ACH Agreement may be terminated as follows; (i) By either party upon thirty (30) days prior written notice to the other party; (ii) The Bank shall have the right to immediately terminate this ACH Agreement without notice, if any of the following events shall occur; (a) the Customer fails to pay the fees it owes to the Bank for its services under this ACH Agreement in a timely manner; (b) the Customer has breached any representations or warranties the Customer has made to the Bank; (c) the Customer defaults under any other contract or agreement between the Customer and the Bank; or (d) the Customer files or has filed against it a petition in bankruptcy. If this ACH Agreement is terminated in accordance with this paragraph, neither party will have any further liability or obligation under this ACH Agreement; provided, however, nothing contained in this paragraph will relieve the Customer from liability for any breach of this ACH Agreement prior to its termination. IN WITNESS WHEREOF, the parties hereto have executed this ACH Agreement the date and year first . above written. ~ CUSTOMER: BANK: By: By Its: Its Address: Address: Attn: Attn Tel. No. Tel. No: . S} . EXHIBIT A BANK-ON-IT ACH TRANSFERS Using Marquette Bank Nebraska. NA (the "Bank") as the Originating Depository Financial Institution (UODFI") the Customer will initiate ACH transfers by means of the automated clearing house (the UACH") operated by the Federal Reserve Bank (the "FRB") or any other ACH provider chosen by the Bank electronically (on-line) through the Bank's Bank-On-It Transact System (UBOI").Unfess otherwise expressly defined herein capitalized terms shall have the meanings provided in the National Automated Clearing House Operating Rules and the ACH Agreement between the Bank and the Customer (the uACH Agreement"). SCHEDULE A (Customer's Accounts) The Customer's business checking and savings accounts maintained by the Customer with the Bank which will be used as settlement accounts under the ACH Agreement are as follows: SCHEDULE B (Fees and Charges) Fees to be paid by the Customer to the Bank for use of the BOI Transact System are as follows: ~ ~..O~ t;Y $ 1.00 $ 1.25 $ 3.00 Software / Setup fee (One-Time) ACH base per month ACH per item Notice of change per item Originated return per item Reversal/deletion per item . The undersigned states and represents that he/she is authorized to sign this Service Exhibit on behalf of the Customer and acknowledges and agrees that the Customer is legally bound by the terms and conditions hereof as well as the terms and conditions of the ACH Agreement to which it is attached. IN WITNESS WHEREOF, the undersigned has executed this Service Exhibit this day of ~ CUSTOMER: ~ ~ --BY: Its: Dated: . 'S~ . . . Using he "Bank") as the Originating Depository Financial Institution (UODFI") the Bank will process information pr ided directly by the Customer to the Bank. The Customer will provide the' formation in a format specified -t~ the ACH Agreement and notwithstanding anything to the contrary con ined in the ACH Agreement, said ~nformation must be received by the Bank's Operations Departmen preferably two (2) business days, bu,not less than one (1) business day prior to the settlement date. T e Bank will separate the Bank's Entries ~m all others and will transmit the Files to the Federal Reserve ank. Unless otherwise eX~SSIY defined herein capitalized terms shall have the meanings provided in the National Automated Cle'aring House Operating Rules and the ACH Agreem t between the Bank and the Customer (the uACH Agreement"). SC~ULE A (Customer's Accounts) The Customer's business chec~ng and savings accounts main~ Ined by the Customer with the Bank which will be used as settlement accounts under the ACH Agreement are as follows: / / ,1/ SCHEDULE B (Fe.. and Charges) Fees to be paid by the Customer to the Ban~ tr~{ers based on information provided by the Customer to the Bank are as follows: \. File per item / ACH per item / \ Notice of change per item $ 1.00 Originated return per item / $ 1.25\\ Reversal/deletion per item // $ 3.00 \ The undersigned states and represen. t,S/:hat he/she is authori~e to sign this Service Exhibit on behalf of the Customer and acknowledges add agrees that the Custom r is legally bound by the terms and conditions hereof as well as the termS and conditions of the ACH Ag eement. / IN WITNESS WHEREOF, the inder~igned has executed this Se day of Exhibit this By: ,/ I ! / ,- I I / / ) CUSTOMER: Its: Dated: ~~ . . . EXHIBI1"c TRANSMiSsiONS THROUGH CUSTOMER'S THIRD-PARTY VENDOR Using e "Bank") as the Originating Depository Financial Institution rODFI") e Bank will process payroll informa 'on provided by the Customer's third-party payroll vendor. The v, ndor will provide the payroll informati in a format specified in the ACH Agreement and not with anding anything to the contrary containe {n the ACH Agreement. Said information must be received y the Bank's Operations Department preferably two (2) business days but nott less than one (1) prior 0 the settlement date. The Bank will separate the, Bank's Entries from all others and will transmit the i1es to the Federal Reserve Bank. \ \ Unless otherwise expres~~y defined herein capitalized terms shall h e the meanings provided in the National Automated ClearinQ.., House Operating Rules and the ACH A eement between the Bank and the Customer (the "ACH Agreement"). \ SCHEDULE A (Customer's A . ounts) The Customer's business checking and savings accounts aintained by the Customer with the Bank which will be used as settlement acco ts under the ACH A eement are as follows: File per item ACH per item Notice of change per item Originated return per item Reversal/deletion per item SCHEDULE B (Fees and Charges) Fees to be paid by the Customer to the B nk ~ transfers based on information provided by the Customer's third- party vendor are as follows: The undersigned states and repr sents that he/she is authorized to . n this Service Exhibit on behalf of the Customer and acknowled s and agrees that the Customer is egally bound by the terms and conditions hereof as well as th terms and conditions of the ACH Agreem nt. $ 1.00 $ 1.25 $ 3.00 undersigned has executed this Service CUSTOMER: By: Its: Dated: this day of 51= .ft>r ~~ ~f, EXHIBIT E AUTHORIZATION TO REVERSE/DELETE AN ACH TRANSFER . Date of Request: Customer Name: Customer Bank's ABA No(s): Customer Acct No: Authorized Signor: Customer Address: Phone No: FAX No: ITEM 1 ITEM 3 Posting Date of Posting Date of Transfer Transfer: Payee/Payor Payee/Payor Name: Name: AND ABA No. AND ABA No. . Customer Acct No: Customer Acct No: Type of Acct 0 Checking 0 Savings Type of Acct 0 Checking 0 Savings Amount: Amount: ITEM 2 ITEM 4 Posting Date of Posting Date of Transfer: Transfer: Payee/Payor Payee/Payor Name: Name: AND ABA No: AND ABA No: Customer Acct No: Customer Acct No: Type of Acct 0 Checking 0 Savings Type of Acct 0 Checking 0 Savings Amount: Amount: Reversals/Deletions must be received by the ACH Department before 3 p.m. to be processed on the business day of the request. Adjustments to the requesting Company's account are made according to the Effective Date of the File containing the transfer. Confirmation of the reversal/deletion will be mailed to the Company in the form of a debiUcredit memo to the Company's account. . Complete and fax this form to the ACH Department at (612) 948-5901. If you have any questions regarding this form call (612) 948-5814 for assistance. S1=- . . . ., BANK-ON-IT AGREEMENT BALANCE AND STATEMENT REPORTING @ THIS AGREEMENT (the "Agreement") is made and entered into this _ day of 19_, by and between Marauette Bank N.A. (the "Bank") (the "Customer"). , and The Bank is licensed to offer a balance and statement reporting system, Bank-an-It System, which provides the Customer with computer access to information regarding its accounts at the Bank and enables the Customer to initiate certain transactions electronically (on-line) based on the services chosen by the Customer as identified below. Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Customer and the Bank agree as follows: 1. Definitions. Account or Accounts. The Customer's Business Checking and Savings Accounts maintained by the Customer at the Bank and which the Customer and the Bank have agreed in writing will be subject to this Agreement and identified in Exhibit A attached hereto. Authorized Signer. Any individual the Customer has authorized in its resolution delivered to the Bank to; (i) sign this Agreement and any other related agreement on behalf of the Customer; and (ii) add or delete an Authorized Signer. Communications Password. The password provided to the Customer by the Bank which when used together with the Customer Identification Number allows the Customer to access the BOI System to obtain the Customer's Account information. Customer Identification Number. The number provided to the Customer by the Bank which when used together with the Communications Password allows the Customer to access the BOI System to obtain the Customer's Account information. Customer. The business entity identified above. User Name and Password. A User Name and User Password are provided to the Customer by the Bank in order to allow the Customer to make its initial access into the BOI System. The Customer's employee responsible for controlling the use of the BOI System should then assign User Name and Password to each employee of the Customer who will have authority to perform fUnctions on the BOI System. The Bank will have no knowledge of the Customer's User Name and Password or any changes thereto. User. Any individual that the Customer has authorized to access the BOI System on behalf of the Customer. 2. Services. The Bank will provide access to the BOI System, through which the Customer may obtain Account balance and cash management information regarding the Accounts that the Customer maintains at the Bank and initiate certain transactions on the Accounts. The Customer may access the BOI System via modem and phone line from the Customer's computer to the Bank's computer. A. Controlling Documents. The services shall be provided in accordance with the terms of this Agreement and any amendment hereto, together with all other applicable rules and regulations. S"}:- B. Types of Services and Options. The Customer agrees to purchase the following 601 System services: . 1. Basic Services. (i) Balance Reporting The BOI System will allow the Customer to make inquiries into the Accounts and obtain cash management information. Subject to the limitations described below, the Customer will have access to the Account information seven (7) days a week, twenty-four (24) hours a day. (ii) Training. The Bank will provide the Customer with four (4) hours of free on-site and/or telephone installation and support training as part of the software fee. Installation and/or support training in excess of the initial four (4) hours will be billed at the Bank's then current hourly rate for those services which is $75.00. The Bank reserves the right to change the hourly rate, at any time, at its sole discretion. If the training is to be conducted on-site the Bank will also be reimbursed for its travel and lodging expenses. (iii) Telephone Support. The Bank will provide the Customer with a reasonable amount of on-going telephone support to answer questions regarding the operation and use of the BOI System, at no charge. 2. Optional Functions (check those applicable). . i . Internal Transfers. The Customer may initiate transfers of funds between the Customer's Accounts. Transfers which are initiated prior to 3:00 p.m. CST on any Business Day (a calendar day other than a Saturday, Sunday or Federal holiday) will be effective as of the close of business on that Business Day. Transfers initiated after 3:00 p.m. CST or on a non-Business Day will be effective as of the close of business on the following Business Day. By initiating the transfer of funds from an Account, the Customer represents and warrants to the Bank that the balance of collected funds in the Account from which funds are to be transferred is equal or greater than the amount of the transfer request and that the transfer was made by a User. The number of automatic withdrawals or transfers per month is limited as set forth in Bank's Deposit Account Agreement and Disclosure governing the Accounts involved. Stop Payments. The Customer may initiate a request for a Stop Payment through the BOI System. Stop Payment requests that are initiated prior to 3:00 p.m. CST on any Business Day will be effective as of the close of business on that Business Day. Requests after 3:00 p.m. CST or on a non-Business Day shall be effective as of the close of business on the next Business Day. Stop Payment requests are pending final verification that the check has not been processed. The Bank must receive the order in time to allow the Bank a reasonable time to act on it. A stop payment order initiated through the BOI System will be effective for six (6) months, but can be renewed for additional six-month periods if the Customer requests the renewal, in writing given to the Bank, prior to the expiration of the previous six-month effective period of the order. In addition to the foregoing all requests for a Stop Payment through the BOI System must contain the following information for each check on which a request is made. (i) The date and time of the request. (ii) Name of account, account number, check number, date of check, amount of check, name of the of payee and the reason for the request. S\: (iii) The name and telephone of the person that the Bank may contact to obtain additional information concerning the request. . The Customer acknowledges and agrees; (a) that a fee will be charged to the Customer's Account for each check on which a stop payment request is made, which fee is set forth as Exhibit C and (b) that the Customer must sign a release form to cancel this stop payment request. C. Discontinue or change service. The Bank reserves the right to discontinue or change any of the services set forth above at any time, at its sole discretion. D. Requirements and Procedures. The Customer agrees to comply with the following requirements and procedures in using the selected services which requirements and procedures can be amended by the Bank at any time. 1. Security Procedures. The Customer agrees to the following security procedures: (i) The Customer must complete the information required by the Bank for each of its Authorized Signers. (ii) The Customer must use its (a) User Name and Password; (b) Communications Password and (c) Customer identification Number to access the BOI System. (iii) The Customer shall establish and maintain procedures necessary to prevent access to its User Name and, Communications Password and Customer Identification Number for the BOI System by unauthorized persons and to ensure that they will be maintained in the strictest confidence. . (iv) If the Customer believes that its Communications Password to the BOI System has become known to any unauthorized person, the Customer shall immediately provide telephone notice to the Bank to be followed by written notice to the Bank delivered as soon as possible thereafter. (v) The Customer may add or delete any Authorized Signer by written notice delivered to the Bank signed by the number of Authorized Signer(s) required in the resolution delivered to the Bank, other than the one(s) being added or deleted. Such notice will be effective on the first Business Day of the Bank's receipt thereof. 2. No Verification. The Customer agrees that unless expressly stated to the contrary herein and notwithstanding the terms and conditions of any agreement between the Bank and the Customer, the Bank will not call the Customer or any of the Customer's Users to verify transaction requests entered into the SOl System using the Password. 3. Honoring Transactions. The Bank is under no obligation to honor, either in whole or in part, any transfer requests which: (i) exceed the Customer's available funds in the Accounts with the Bank; (ii) are not in accordance with any condition agreed to by the Customer in this Agreement any or in the documents governing the Accounts; or (iii) are not in accordance with the Security Procedures set forth in Section 2 of this Agreement or any other requirements of the Sank. The Bank may, at its sole discretion, create an overdraft in the Customer's Account to complete a transfer which the Customer agrees to repay to the Bank upon demand, together with interest, at the Bank's then current per diem interest rate for such overdrafts, a processing fee, and, if necessary, the cost of collection. The Bank is not and shall not be liable for failing or refusing to perform any . 5~ transaction which does not include all information necessary for its completion or which would violate this Agreement or any other agreement with the Bank. . 4. Hardware, Equipment and Software. The Customer is responsible for obtaining, installing, maintaining and updating the necessary software, hardware and related equipment needed to utilize the particular services selected by the Customer. 5. Documentation. Prior to executing this Agreement the Customer must provide all the documentation reasonably required by the Bank, including but not limited to, the Bank's resolution attached hereto as Exhibit D. 6. User Manual for the BOI System. If the BOI System is selected by the Customer, the Customer will be provided with one BOI System User Manual (the "User Manual") describing the operation and services of the BOI System. The Customer agrees to be bound to the terms and conditions of the User Manual. The Customer agrees not to copy or otherwise duplicate the User Manual or any periodic updates and further agrees to return the User Manual and any updates upon termination of this Agreement. 7. Periodic Statements. The Customer shall continue to receive regular Account statements that describe all transactions for the Accounts including transactions that the Customer initiated pursuant to this Agreement. Customer is responsible to promptly review all statements and report in writing any discrepancies to the Bank at once. Discrepancies must be reported within thirty (30) days after the statement date. If the Customer fails to notify the Bank of any such discrepancy within thirty (30) day of the receipt of the periodic statement containing such information, the Customer agrees that the Bank shall not be liable for any loss resulting from the Customer's failure to give notice and the Customer shall be precluded from asserting such discrepancy against the Bank. . 3. Means of access. Access and Processing. The Customer will be accessing the BOI System via modem and phone line from the Customer's computer to the Bank's computer. The Bank will provide the Customer with computer software that will enable the Customer to obtain certain information and reports, initiate certain transactions and issue certain instructions to the Bank. 4. Sub-License of Bank-On-It ("BOI System"). If the Customer selects the BOI System, the Bank is the holder of a non-exclusive license to offer the BOI System software to its customers and hereby grants to Customer a non-transferable sub-license for the BOI System software, subject to the terms and conditions of this Agreement. The Customer acknowledges and agrees that the BOI System software is the property of Global Payment Systems, Inc. ("Licensor") and being offered to the Customer by the Bank subject to the procedures and requirements of the Licensor as may be established by the Licensor from time to time. The Customer agrees that it; (i) has no right, title or interest in the BOI System software; (ii) will not make or permit any third party to make copies of said software; (iii) will be bound by the terms and conditions of the Global License Agreement; and (v) will return the BOI System software to the Bank immediately upon the termination of this Agreement. 5. Fees and Charges; Payment; Security Interest. The fees and charges to the Customer for access to the for the services selected by the Customer are set forth in Exhibit B attached hereto and made a part hereof. The Customer agrees to pay such fees and charges and authorizes the Bank to charge the Customer's Accounts for said fees and charges. It is understood and agreed that these fees and charges relate only to the access and utilization of the BOI System and are exclusive of other fees and charges that may otherwise be imposed by the Bank upon the banking services which are accessed through the BOI System. The Bank reserves the right to increase its fees and charges set forth in Exhibit B, or to impose additional fees and charges, in its sole discretion upon written notice to the Customer. . S~ . . 8. . The Customer grants the Bank a security interest in all property of the Customer held in the Bank's possession to secure payment of the Customer's obligations under this Agreement. 6. Customer Representations and Warranties. The Customer makes the following representations and warranties to the Bank: A. Organization and Good Standing. The Customer is duly organized, validly existing and in good standing. B. Validity of the Agreement. The Customer has the full power and authority to execute this Agreement, and any other related agreements. This Agreement and any other related agreements to which the Customer is a party, when executed and delivered, will constitute the valid and binding obligation of the Customer enforceable against it in accordance with its terms, subject to bankruptcy laws and other similar laws of general application affecting the rights of creditors and subject to the application of the rules of equity. The execution, delivery and performance of this Agreement, and any other related agreements by the Customer its compliance with the terms hereof and thereof and the consummation of the transactions contemplated hereby and thereby have been duly authorized. C. No Conflict. The execution and delivery of this Agreement and any other related agreements by the Customer and the performance of its obligations hereunder and thereunder are not in violation or breach of, and will not conflict with or constitute a default under any of the terms of the partnership agreement or articles of incorporation or bylaws of the Customer, if any, or any note, security agreement, lease, deed of trust, mortgage, franchise, license, permit or other contract, agreement or commitment binding upon the Customer or its assets and will not conflict with or violate any applicable law, rule, regulation, judgment, order or decree of any government or governmental instrumentality or court having jurisdiction over the Customer or its assets. The Customer shall indemnify the Bank against any loss, liability or expense (including attorney's fees and expenses) resulting from or arising out of any breach of any of the foregoing representations, or any of the terms of this Agreement. 7. Bank Representations and Warranties. The Bank makes the following representations and warranties to the Customer: A. The Bank warrants that it will use its best efforts to provide the services selected by the Customer in this Agreement. The Bank's sole responsibility under this warranty shall be to replace any defective diskette or printed materials that accompany the BOI System software that are detected by the Customer within 30 days after delivery of the software. B. The Bank will use its best efforts to promptly provide telephone support to the Customer. C. The Bank will exercise reasonable care in entering information the Customer places into the BOI System into Customer's Accounts. The Bank may rely on all information entered into the BOI System by the Customer and shall not be liable or responsible for information entered which is not current or is inaccurate, incomplete, incorrect or lost in transmission. Disclaimer of Warranties. EXCEPT AS SPECIFICALLY PROVIDED ABOVE, THE BANK MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE BANK.ON-IT SYSTEM OR ANY OTHER SELECTED SERVICES AND DISCLAIMS ALL WARRANTIES OF MERCHANTIABLlTY AND WARRANTIES OF FITNESS FOR A PARTICULAR USE OR PURPOSE. IN NO EVENT SHALL THE BANK OR ITS DIRECTORS, EMPLOYEES, AND AGENTS BE LIABLE FOR ANY INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL LOSSES OR DAMAGES INCLUDING, WITHOUT LIMITATION, LOSS OF USE, LOSS OF PROFITS AND CLAIMS OF THIRD PARTIES, WHETHER OR NOT THE POSSIBILITY OF SUCH LOSSES OR DAMAGES WAS KNOWN BY THE BANK. THE BANK AND ITS DIRECTORS, EMPLOYEES AND AGENTS ARE NOT AND SHALL NOT BE LIABLE FOR THE ACTS AND/OR OMISSIONS OF ANY THIRD 5~ . . PARTY, INCLUDING BUT NOT LIMITED TO THE LICENSOR OR ANY OTHER VENDOR OR THE BANK-ON-IT SYSTEM AND ITS COMPONENTS. 9. Limitation of Liability, Liquidated Damages. The Bank shall not be liable to the Customer for any act or failure to act, unless such act or failure to act is grossly negligent. In addition, the Bank shall not be liable or responsible to the Customer in any way for loss or damage caused in whole or in part by: (i) delays in making or executing transactions due to Bank or third party computer errors or equipment failure; (ii) errors or omissions in data or information of any kind relating to inquires, instructions, messages or transactions originating from the BOI System which are not caused by the Bank's gross negligence or willful misconduct; (iii) unauthorized use of the BOI System by any person, other than Bank employees, to affect or to attempt to affect the Customer's Accounts or to gain information as to the Customer's Accounts; (iv) the Customer's failure to comply with the terms of this Agreement or to use the BOI System or any other selected service in accordance with instructions; (v) the Customer's act or omissions (including without limitation, the amount, accuracy, timeliness of the transmittal or due authorization of a transfer received from the Customer) or those of any other person or entity, and (vi) any Act of God or public enemy, accident, failure or reduction of electric power, failure of telephone or computer systems, natural disaster, law, or regulation, governmental act, or license, or failure or defaults of vendors, suppliers, or contractors. In no event shall the Bank be liable for any consequential, special, punitive or indirect loss or damage which the Customer may incur or suffer in connection with this Agreement. Without limiting the foregoing provisions, the Bank's liability under this Agreement shall be limited to the Customer's actual damages. In addition to the foregoing it is further understood and agreed that the ability of the Bank to provide access to the BOI System and the services described above is conditioned upon the continued operation and availability of the Licensor's services to the Bank. The Bank shall not be responsible for the inability to provide said services in the event that access by the Customer or the Bank to Licensor's services is suspended or terminated for any reason. In the event that access by the Bank to Licensor's services is unavailable for an extended period of time the Bank may terminate this Agreement without further liability or obligation to the Customer. 10. Indemnification. The Customer agrees to defend, indemnify and hold the Bank, the harmless and its directors, employees and agents from and against any and all claims actions, and law suits, whether groundless or otherwise, and from and against any and all liabilities, losses, damages, costs, charges, attorneys' fees and other expenses of every nature, directly or indirectly resulting from, due or relating to, or arising by reason of, use, including unauthorized use, or misuse, or loss caused by the use of the BOI System and including, without limitation, any loss arising directly or indirectly out of, or in any way connected with; (i) the Customer's failure or neglect to transmit any deposit information to the Bank; (ii) the completion and execution by the Bank of transactions in an incorrect amount and for which the Bank is not liable under paragraph 9, above; (Hi) the return of any transaction for any reason whatsoever; (iv) any action taken by the Bank pursuant to duplicate or several communications of the same deposit information by the Customer; (v) any delay in communications which prevents the receipt of any deposit information by the Bank prior to its normal daily posting; (vi) the Customer's breach of the Licensor's License Agreement; (vii) the information provided to the Bank and/or the Licensor by the Customer; (viii) the Customer's use of any information provided it by either the Bank and/or the Licensor and (ix) the Customer's breach of any of its obligations under this Agreement and any other related agreements. 11. Term and Termination. . A. Term. This Agreement shall remain in effect from the date of this Agreement until terminated in accordance with the terms hereof. B. Termination. This Agreement may be terminated as follows: (i) By either party upon thirty (30) days prior written notice to the other party; (ii) The Bank shall have the right to immediately terminate this Agreement without notice if any of the following events shall occur; (a) the Customer fails to pay the 5~ . fees it owes to the Bank for its services provided under this Agreement in a timely manner: (b) the Customer has breached any representations or warranties the Customer has made to the Bank; (c) the Customer defaults under any other contract or agreement between the Customer and the Bank; or (d) the Customer files or has filed against it a petition in bankruptcy. If this Agreement is terminated in accordance with this paragraph, neither party will have any further liability or obligation under this Agreement provided, however, nothing contained in this paragraph will relieve the Customer from liability for any breach of this Agreement that occurred prior to termination. 12. Additional Terms and Conditions. A. Amendment Agreement, Waiver. The Bank may amend this Agreement by providing written notice to the Customer describing the proposed amendment at least thirty (30) days prior to the effective date of the amendment. The amendment will become binding as of the effective date unless the Customer elects to terminate this Agreement as provided herein. No other amendment or modification of any provision of this Agreement will be effective unless made in writing signed by all parties. No failure or delay by any party in exercising any right, power or remedy under this Agreement will operate as a waiver of any such right, power or remedy, nor will any single or partial exercise of any right, power or remedy preclude any further exercise of any right, power or remedy. B. Notices. All notices and other communications provided for in this Agreement shall be in writing, shall be deemed given when personally delivered or when deposited in the U.S. Mail, mailed first class, and addressed as indicated at the end of this Agreement. Any party may, by notice given in accordance with this paragraph, change the address to which notice shall be sent. . The Bank shall be entitled to rely on any written notice or communication believed by it, in good faith, to be genuine and to have been signed by an Authorized Signer, and any such communication shall have been deemed to have been signed by such person. C. Confidentiality. The Bank shall treat all files and other information as confidential ("Confidential Information") that the Customer may enter into the BOI System or through any of the other selected services and will not willfully disclose or otherwise provide access to such Confidential Information to any third party, other than the Licensor of the BOI System. Upon the termination of this Agreement, the Bank may dispose of all such Confidential Information in any manner it deems to be appropriate unless the Customer furnishes the Bank with written instructions for the disposition of the Confidential Information prior to termination. D. Entire Agreement. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supercedes all prior understandings and agreements between the parties; provided, however, the Customer understands and agrees that the Customer is also bound by the terms of all signature cards, rules and regulations, the Deposit Account Agreement and Disclosure, and any other agreements and disclosures connected with the opening of the Customer's Accounts. E. Partial Invalidity. Any provision of this Agreement which is prohibited or held unenforceable will be ineffective only to the extent of such prohibition or enforceability, without invalidating the remaining provisions of this Agreement. . F. Non-Assignment. No party to this Agreement may assign any of its rights, liabilities or obligations under this Agreement without the prior written consent of the other party; provided, however, the Bank may assign all or part of its rights, liabilities or obligations under this Agreement to its parent corporation or to any subsidiary or affiliate of the Bank. St: G. Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. . H. Survival. Except as otherwise provided in this Agreement, the warranties, representations, covenants and agreements contained in or made pursuant to this Agreement, including without limitation Sections 6, 7, 8, 9, 10 and 12 of this Agreement shall survive the termination of this Agreement. I. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state in which the Bank is located. J. Controlling Agreement. Unless otherwise expressly stated herein in the event of a conflict between the terms of this Agreement and any applicable Account agreements, or other related agreements, this Agreement shall prevail. IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ~ CUSTOMER: By: BANK: Marquette Bank. N. A. By: Its: Its: Address: Address: . Attn: Attn: Tel. No. Tel. No. . 5~ EXHIBIT A (Customer's Accounts) . The Customer business checking and savings accounts maintained by the Customer with the Bank which will be used under the Agreement are as follows: EXHIBIT B (Fees and Charges) Fees to be paid by the Customer to the Bank for the services selected under the Agreement: $50.00 Per Month - First 4 Accounts $10.00 Per Month - Each Additional Account EXHIBIT C (Stop Payment Fee) Fee to be paid by the Customer to the Bank for each check on which a stop payment request is made: $15.00 Per Stop Payment The undersigned states and represents that he/she is authorized to sign Exhibits A, Band C above, on behalf of the Customer and acknowledges and agrees that the Customer is legally bound by the terms and conditions hereof as well as the terms and conditions of the Agreement. IN WITNESS WHEREOF, the undersigned has executed Exhibits A, Band C this _ day of ,19_" ~ CUSTOMER: By: . Its: . s\.- . . . Council Agenda - 1/24/00 5G. Consideration of annual highway maintenance aereement with Wrieht County. (RW) A. REFERENCE AND BACKGROUND: This item involves our annual maintenance agreement with Wright County for p0l1ions ofCSAH 75 (Broadway) and CSAlI 39 (Elm Street and Golf Course Road). In an agreement with Wright County, the City of Monticello performs winter maintenance on CSAH 75 (Broadway) from Willow Street on the west portion of our community to the junction of CSAH 39 and 18 on the eastern portion of the community. We also sweep this section of road one time in the spring for Wright county. In addition, we do about 25% of the snow and ice removal on that section of CSAH 39 from Broadway to the public works building. Each year the County reimburses us based upon the maintenance costs for the County per mile for previous years. For example, our 2000 Maintenance Agreement reimburses us $7,439.61 based upon the 1998 annual cost per mile to the County for similar services. The City of Monticello has continued to do this maintenance, as we feel it offers a better level of service to our citizens. A copy of the agreement is enclosed for YOllr review. B. AL TERNA TIVE ACTIONS: 1. The first alternative is to approve the 2000 Maintenance Agreement with Wright County as enclosed with the reimbursement for this year of $7,439.61. 2. The second alternative is not to approve the maintenance agreement. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator and Public Works Director that the City Council approve the maintenance agreement as outlined in alternative #1. D. SUPPORTING DATA: · Copy of letter from Wayne Fingalson, Wright County Highway Engineer · 2000 Maintenance Agreement V~TV Ok ,J)~"1. , 2- . ~:.;t m 9.\\. _ g ~ ~y 7ss6 WRIGHT COUNTY DEPARTMENT OF HIGHWAYS Wright County Public Works Building 1901 Highway 25 North Buffalo, Minnesota 55313 Jet. T.H. 25 and C.R. 138 Telephone (612)682.7383 Facsimile (612) 682.7313 WAYNE A. FINGALSON, r.E. Highway Engineer 682.7388 VIRGIL G, HAWKINS, P,E, Assistant Highway Engineer 682.7387 RICHARD E. MARQUETIE Right of Way Agent 682.7386 December 23, 1999 Rick Wolfsteller, Administrator City of Monticello 250 East Broadway P. O. Box 1147 Monticello, MN 55362 Re: 2000 Mainte,nance Agreement .".:.?/c! Dear Mr. W9Ji1rt'e11~r: -;...--' It is once again time to renew our annual municipal agreement for the maintenance activities on the road(s) listed on the enclosed agreement. You may remember that the costs used in computing the reimbursement for the maintenance agreements is the highest average annual cost per mile for either the rural or municipal roadway segments in the previous year. This is consistent with state-aid procedures. In most cases maintenance activities are more costly in municipal areas therefore these are the routine maintenance costs that are used in computing the cost per mile for reimbursement. To give you an idea of the cost for each maintenance activity we have shown the 1998 average cost per mile for each activity in the 2000 maintenance agreement. I have enclosed two copies of the 2000 agreement for your review and approval by the City CounciL Please return both copies of the executed agreement. After approval by the County Board, one of the copies will be returned to you for your files. A check reimbursing your city for the maintenance activities covered under our 1999 agreement, will be sent to you under separate cover. If you have any questions concerning this or if you note any discrepancies please don't hesitate to contact our office. Happy Holidays! Sincerely, tJ.tlL w ay~ Fingal CoUl~' l~j'ighway ngineer 7 Ene.: (2) 2000 Mun. Maintenance. Agts. Equal Opportunity / Affirmative Actiun Rmployer 5~ MAINTENANCE AGREEMENT - 2000 THIS AGREEMENT made and entered into by and between the City of Monticello hereinafter referred to as . the "City" and the County of Wright hereinafter referred to as the "County". WHEREAS, Chapter 162, Minnesota Statutes, permits the County to designate certain roads and streets within the City as County State Aid Highways, and WHEREAS, the City has concurred in the designation ofthe County State Aid Highway within its limits as identified in County Board's resolutions of August 28, October 8, November 5, December 3, December 27, 1957 and January 7, 1958, and WHEREAS, it is deemed to the best interest of all parties that the duties and responsibilities ofboth the City and the County as to maintenance on said County State Aid Highways to be clearly defined, NOW THEREFORE, IT IS AGREED with regard to said County State Aid Highway maintenance: That the City will be responsible for routine maintenance on the following highways. MAINT. '- PLAN ROAD SEGMENT MILES COST/MI. * TOTAL COST* C. CSAH 75 Willow St. to E. Jet. CSAH 39 3.74 1,269.88 $ 4,749.35 (Includes four lane portion.) D. CSAH 39 From City Public Works Bldg. to 0.32 317.47 101.59 W. Jet. ofCSAH 75 B. CSAH 75 Four lane portion 3.10 739.62 2,292.82 . B. CSAH 39 From CSAH 75 to Kampa Cir. 0.40 739.62 295.85 ESTlMA TED TOTAL = $7,439.61 That routine maintenance shall consist of the following: (Maint. Plan) C. (CSAH 75) - Snow and ice removal. D. (CSAH 39) - 25% ofthe snow and ice removal. B. One-time spring sweeping only. *Based on 1998 average annual costs. That when the City deems it desirable to remove snow by hauling, it shall do so as its own expense. The City shall also be responsible for all snow and ice removal on sidewalks and other boulevard related maintenance outside the curb or street area. That the County will be responsible for all other maintenance. . That the Ci ty shall indemnify, save and hold harmless the County and all of its agents and employees of any form against any and all claims, demands, actions or causes of action of whatever nature or character arising out of or by reason of the execution or performance ofthe work provided for herein to be perfonned by the City. It is further agreed that any and all full-time employees ofthe City and all other employees ofthe City engaged in the perfonnance of any work or services required or provided for herein to be performed by the City shall be considered employees ofthe City only and not of the County; and that any and all claims that mayor might arise under Workmen's Compensation Act ofthe State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said City employees while so engaged on any ofthe work or services provided to be rendered herein shall be the sole obligation and responsibility of the City. (Sheet 1 of 2) SCo . '"'" . That the County shall indemnify, save and hold hannless the City and all ofits agents and employees of any form against any and all claims, demands, actions or causes of actions of whatever nature or character, whether at law or equity, arising out of or by reason oHhe execution, omission orperfonnance ofthe work provided for herein to be perfonned by the County including, but not limited to, claims made arising out of maintenance obligations of County, engineering, design, taking or inverse condemnation proceedings. It is further agreed that any and all full-time employees of the County and all other employees 0 rihe County engaged in the perfonnance of any work or services required or provided for herein to be performed by the County shall be considered employees ofthe County only and not ofthe City; and that any and all claims that mayor might arise under the Workmen's Compensation Act ofthe State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part 0 f said County employees while so engaged on any ofthe work or services provided to be rendered herein shall be the sole obligation and responsibility of the County. That in December of 2000 , the City shall receive payment from the County for their work. This amount shall be based on the 1999 average arumal cost per mile for routine maintenance on Municipal County State Aid Highways. The average annual cost per mile will reHect only those costs associated with the areas of routine maintenance for which the City is responsible. ADOPTED: ,20_ ATTEST: Mayor City Clerk CERTIFICATION 1 hereby certify that the above is a true and correct copy of a resolution duly passed, adopted and approved by the City Council of said City on ,20_, City Clerk APPROVED AND ACCEPTED: COUNTY OF WRIGHT Name of City Chainnan of the Board Date ATTEST: County Coordinator Date . (Sheet 2 of 2) sG, . . . Council Agenda -1/24/00 7. Public Hearin --Consideration of a resolution ado tin ro osed assessment roll for bills and certification of assessment roll to Count Auditor. CR. W. A. REFERENCE AND BACKGROUND: The City Council is again asked to adopt an assessment roll for utility billing accounts which arc delinquent more than 60 days and to certify thc assessment roll to the County Auditor for collection on next year's real estate taxes. The delinquent utility accounts that are included with the agenda are accounts that are at least 60 days past due and include all new delinquents from the last time we certified them. In addition to the delinquent amount, the Council also previously approved the establishment of an administrative fee of $50 per account that is added to each delinquent assessment. The amounts shown on the enclosed delinquent utilities list include the additional $50 administration fee for the preparation of the assessment roll. It is recommended that the delinquent accounts be put on an assessment roll for certification at an interest rate of 8% as allowed by state statute. As in the past, if any accounts are paid within 30 days after the adoption of the assessment roll, they can be paid without the additional interest. After 30 days, payments will be charged interest and can be accepted up to November 30,2000. B. AL TERNA TIVE ACTIONS: 1. Adopt the assessment roll for the delinquent charges as presented. 2. Based on public hearing input, adjust the assessment roll as required. C. STAFF RECOMMENDATION: It is staff recommendation that the Council adopt the assessment roll as presented. All of the accounts are at least 60 days past due and have been given proper notice of this assessment hearing and ample opportunity to pay the accounts in full. All utility accounts were notified that there would be an additional $50 administrative fee attached to each outstanding balance if the account was not paid by 4:30 p.m. on Friday, January 14,2000. D. SlJPl)ORTING DATA: · Copy ofrcsolution adopting assessment roll · Complete listing of delinquent accounts to be certified. . . . RESOLIJTION NO. 2000-4 RESOLUTION ADOPTING ASSESSMENT ROLL FOR DELINQUENT UTILITY ACCOUNTS WHEREAS, pursuant to proper notice duly given as required by law, thc Council has met and heard and passed upon all objections to the proposed assessment for delinquent utility account charges, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MONTICELLO, MINNESOTA: 1. Such proposed assessment, a copy of which is attached hercto and made a part hereof: is hereby accepted and shall constitute the spccial assessments against the parcels named herein, and each tract of land therein included is hereby found to be benefitted by thc assessment levied against it. 2. Such assessment shall be payable in one (1) annual installment payable on or before the first Monday in January 2001 and shall bear interest at the rate of 8 percent per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment hom the date of this resolution until December 31, 2000. 3. The owner of the property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith transmit a certified duplicate of this assessment roll to the county auditor to be extended on the proper tax list of the county, and such assessment shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council this 24th day of January, 2000. Roger Belsaas, Mayor Rick Wolf<;teller, City Administrator 1 . . . 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'" .., '" ....~ Fjii' "'.., ~ gl;; '" .... .., '" "" '" .", ~ .... 'l . . . City COline i I Agenda - 0 I /24/00 8. Consideration of e:rantine: approval of a concept plan for exchan2:ine: city-owned commercial property for future industrial site owned by John Chadwick and Jim Bowers (Otter Creek LLC). REfERENCE AND BACKGROUND Introduction Information The City Council is asked to consider granting approval to a concept plan for exchanging 64 acres of City-owned property that is currently zoned commercial for 140 acres of industrial land owned by Otter Creek LLC. If Council grants preliminary approval, City staff will then work with Otter Creek LLC on details relating to the exchange. The following is a summary of the proposed exchange agreement, along with review of the site as an industrial park. Also included is a review of the benefits to the City and Otter Creek LLC, and a listing of items that need to be addressed in conjunction with development of the final agreement. Proposed Exchange Under the proposed exchange, Otter Creek LLC provides the City 120 acres of the 178 acres they currently own. Portions of the land provided to the City may be included in the zone that Otter Creek LLC will be mining. Please note that there will be no restrictions on the development of the 120 acre area due to mining activity. An additional 20 acres will also be made available to the City upon completion of mining activity. This 20 acre parcel is included in the exchange, however at time of acquisition the City would be required to pay grading costs for this site which are set at $100,000. This would be a fixed price that would be paid at time of acquisition which could occur in ten years or when mining is complete, whichever is sooner. In exchange, Otter Creek LLC will obtain a 64 acre commercial site from the City and will assume a $300,000 assessment for utilities and roadways installed in conjunction with development of the frontage road serving the commuter parking lot. In addition, Otter Creek LLC will assume the responsibi I ity for payment of the principle costs associated with extension of sanitary sewer to the Kjellberg West Mobile Home Park. As part of the proposal, Otter Creek LLC retains long term control of a 38 acre site which could possibly be used as a location for a Redi- Mix and/or bituminous plant. Approvals for development of these facilities would need to be acquired by the developer at some point in the future. The only cash exchange will occur when the City acquires the 20 acre parcel. . . . City Council Agenda - 01/24/00 General Information The proposal would result in the City obtaining 140 acres ofland well-suited for industrial uses. The elements of the exchange have been developed aner numerous meetings between City staff and Otter Creek LLC, and after considerable research on the relative value of each parcel. City stalT is comfortable that the terms identified represent last best offers by both sides. As you know, for some time the City has been contributing funds to an account for the purpose of purchasing and developing an industrial park at some point in the future. In addition, it has been a goal of the Industrial Development Committee to identify a good site for expansion of industrial land areas. This goal has become a higher priority for the IDC in light of the control of industrial land by a limited number of property owners. In addition, the IDC has researched other communities to find successful industrial parks and has found that availability of land controlled by the City can be an important factor in attracting quality industry. It is very important for the City to be able to move quickly once a prospect has been identified. 'fhese factors have all combined to cause City stafT to look at utilizing the City's 64 acre commercial property as an asset to be dealt in exchange for an industrial site. The industrial land that the City would acquire under this deal is excellent for industrial development. For instance: ~ The site is very visible from 1-94 and represents one of the few remaining large tracks of land in a City adjacent to the freeway between Maple Grove and 8t. Cloud. 'fhe road system that will be serving this industrial area will not require that industrial traffic pass directly through residential areas and provides excellent access to the Highway 25/1-94 intersection. Although utilities are not available today they will be on the doorstep soon with completion of the Chelsea Road improvements programmed for construction this summer. Both the City and the MOAA land use plans identify this area for industrial use which paves the way for annexation. The general area adjacent to the site has some residential population but is generally isolated from residential areas. 1-94 extends along the eastern side of the property, County Road 39 along the north, there is scattered housing which could be impacted by the mining operation, however the Otter CreckLLC plans to install berms along the northern edge of the property to limit views of the mining operation. According to an industry relocation consultant that recently visited Monticello, this site is ideal for industrial development due to its great visibility, good access to Highway 25 and relative isolation from populated areas. ~ ~ ~ ~ ~ City COline i I Agenda - 01/24/00 . The City has budgeted funds for the purchase of industrial land, cash in the bank could be left in to collect interest and be later used in the future to fund the $100,000 grading fee associated with acquisition ofthe additional 20 acres. City Benefits Acquisition of this industrial land will allow the City to control its own destiny with regard to development of an industrial park. As noted earlier, the Industrial Development Committee has reviewed successful industrial parks in other communities and found for example in Anoka, City control of industrial land was instrumental in development of a high quality industrial park. Attached you will find more information regarding the Anoka experience. In addition to providing the opportunity to market industrial land, the proposed exchange could result in relocation of the local Redi- Mix plant which would result in opening up of valuable commercial land at a key location in the community. Also, Otter Creek LLC acquisition of the 64 acre commercial property places this land in the hands of a developer interested in marketing and developing a commercial site which is I ikely to speed up the process of development of this land for commercial purposes. . Last of all, the close proximity of the gravel pit will allow the City, County and others to obtain necessary construction materials at a reasonable cost. There are numerous projects in the near future that are likely to obtain materials from this site. As you know, construction costs are impacted by haul distances, obviously a gravel pit at this location will result in short hauls for projects completed in the Monticello area. Benefits to Otter Creek LLC As with the City, the developer benefits because there is no cash outlay required with the deal. The assessments for improvements to the frontage road on the Remmele property will be deferred with interest accruing, thus such assessments will not be paid until the Otter Creek LLC finds aid of a commercial development for the site. Similarly, costs associated with development of the sanitary sewer serving the Kjellberg site would not be paid until actual development of the property occurred. In the meantime, Kjellberg would be responsible for paying interest expenses associated with use of this sanitary sewer system. The final, most important benefit to the developer is the ability to retain access to an gravcl supply and associated land necessary for a potential Redi-Mix and/or bituminous plant in the 20 acre area. Contingencies . The proposal that Council is asked to review at this time will become a framework for a final agreement that Council will need to consider at some point in the future. Following are details that need to be worked out, thus any Council approval is contingent on the following: . 3. . City Council Agenda - 01/24/00 I. Final agreement to identify terms associated with incremental exchange of land over time, thus under the proposal the City will not get instant control of the industrial area. However, the City can have control at such time that a development became imminent. Similarly, the City would retain control over the Remmelc site until such time a development is ready to go. City holding of the Remmele property until the last minute benefits Chadwick by making Kjellberg pay for the interest on the sanitary sewer serving this site. If the City were to provide the land to Otter Creek LLC immediately, then Otter Creek LLC would be responsible for paying the interest expense for this sanitary sewer line. 2. Additional research on the Otter Crcek LLC site as an industrial park needs to be completed, to assure the City that the site is developable. High water levels need to be identified in the interior of the site and the grading plan and topography need to be reviewed to make sure that there is sufficient material exists on the site to properly balance the high and low spots. It is possible that the City may need to reserve the right to take material from the remaining Otter Creek LLC property to fill low spots in the City's industrial area. The road alignment presented in the attached preliminary site plan will need to be finalized. There may be opportunities to modify the road alignment in a manner that makes better use of the available land for industrial development outside of the power line. Potential for cutting the corner of the cemetery property needs to be explored. 4. The grading plan approved under the mining permit provided to Otter Creek LLC wi II need to be reviewed to make sure that the land will be left in the condition that is well-suited for industrial development. AL TERNATIVES 1. Motion to approve concept plan outlining exchange of the City's Remmele site for Otter Creek LLC industrial site. 2. . City staff will be working with the developer to come up with an agreement that addresses the items noted above. It is hoped that the agreement governing the exchange will be available for Council review in the near future. Motion to table or deny the approval of proposed land exchange. City Council should select this alternative if it feels that the proposed exchange is not in the best interest of the City. Perhaps Council feels that the deal is onc- sided, or in some way not in the best interest of the City to complete. City Council Agenda - 01/24/00 . RECOMMENDATION As noted earlier, staff has met with the developer on numerous occasions to hammer out this deal. It is our view that both parties have bent significantly and that the proposal as outlined represents a good compromise. The proposal will result in the City accomplishing a major goal supporting industrial development, most notably without a direct cash outlay. Although there will be expenses associated with development of sanitary sewer, water and road systems serving the industrial area, a major portion will be funded by the land owners benefitting from the extension of these utilities (Groveland development). It is also likely that development of this site will spur the development of the water tower planned for this area. Staff is recommending approval of this exchange due to the numerous benefits as noted above. SUPPORTING DATA Preliminary sketch plan of future industrial area and area map. . . . . . Council Agenda - ] /24/00 9. Consideration of discussin!! potential interest in industrial park land acquisition - Gold Nugget Property. (RW) A. REFERENCE AND BACKGROUND: Over the past few months, staff has met with John Chadwick and Jim Bowers to discuss the feasibility of acquiring land for a future City owned industrial park. The discussions with Chadwick and Bowers have centered on the concept of a land swap with the City swapping our 60 acre Remmlc parcel for 120 to 180 acres of land Chadwick and Bowers own near 1-94. These discussions are ongoing and we are ready to present a concept proposal that can be considered by the Council. In addition to the Chadwick parcel, the IDC had suggested that City staff also look at other sites that could be available for industrial use, such as the Gold Nugget parcel. This 220 acre parcel on south Highway 25 is proposed for industrial zoning by the MOAA and for residential use by the City's Comprehensive Plan. Unless the City or MOAA changes their proposed land use for this property, development of this 220 acres would likely be in limbo for a number of years. Ollie and I recently met with Horst Grazer and Wayne Fleck of Novak-Fleck, owners of the Gold Nugget parcel, to discuss whether they were interested in selling their property. Because of the current connict that exists with their intended use of the property with the MOAA, they did indicate they would consider offers for selling the property. They did not want to state an asking price and are leaving it up to the City if the City wants to make an offer for their consideration. Mr. Grazer recently wanted to know what the City's intention might be towards their property and asked that the City give him an answer one way or another. This brings us to the purpose of this agenda item. The difficulty in pursuing the Gold Nugget property for industrial development is the connict the property has with our current Comprehensive Plan. In order for the property to be used for industrial zoning it would take a four-fifths vote of the Council to change the residential classification to industrial to match the MOAA Comprehensive Plan. Without four-fifths support, it doesn't appear feasi ble to consider making any type of an oiler fi.x actual purchase of the Gold Nugget property. While all of the details have not been agreed to yet in regards to a possible land swap with Chadwick and Bowers for the Remmle property, the Council may want to consider the merits of one parcel against another. For example, if the Council believes that a City owned industrial park adjacent to 1-94 consisting of approximately 120-140+ acres is more desirable than a 220 acre parcel further away from 1-94, we may want to focus on one parcel before we consider another oiler on a different piece of property. T'he primary advantage to focusing on the Chadwick/Bowers property is that we would be proposing a land swap by trading the Remmle property and avoiding a cash outlay for the land acquisition. Naturally, improvements for utilities and streets would have to be financed in some method but this would also be the case for the Gold Nugget property. It is assumed that the City would not be in a position to make a cash offer for 220 acres of Gold Nugget and would likely have to finance the purchase through a contract for deed or similar arrangement. . . . Council Agenda - 1/24/00 Recently the IDC had asked the eity engineer to present some cost estimates for developing hoth the Chadwick/Goeman and the Gold Nugget property with infrastructure improvements. Without doing an in depth study, our engineer estimated that the Chadwick/Goeman parcel could cost $23,000 per acre to develop with utilities versus $17,000 per acre for the Gold Nugget property. These numbers are probably high and in reality the Chadwick/Goeman parcel may be in the $] 5,000-$20,000 per acre area whereas the Gold Nugget could he as low as $13,000-$14,000. Either way, it appears that the infrastructure might he cheaper within the Gold Nugget property hecause of the ability to utilize gravity sewer whereas the Chadwick parcel would also need a lift station and f()rcemain. From the standpoint of desirability for development, I would have to believe that the 120-140 acre parcel from Chadwick on 1-94 would have a stronger demand by industrial users with access on County Road 39, and with the new Chelsea Road West extension being completed than would the Gold Nugget parcel along '1'1-( 25. The visibility and ease of access in the future would likely make the Chadwick/Goeman parcel more attractive when compared to the distance from 1-94 that the Gold Nugget parcel is. Input we have received from consultants representing industrial prospects have indicated a preference for the Chadwick/Goeman parcel. From a land cost eomparison, the Gold Nugget parcel may command a higher price for residential development than it would for industrial in the near future. I am aware that Novak-Flcck purchased 140 acres for $1,010,000 or $7,273 per aere in Oetober, 1998. Novak-Flcck has an option agreement on the balance of 80 acres that they indicated they would be exercising in the near future. As to what the property is worth today or how much they would sell it for, I do not know, nor do I know what type of terms they may be willing to accept for financing. It should he noted that even though the use of the Gold Nugget property is in limbo with the conflict hetween the MOAA and the City's plan, the City should not feel ohligated to consider purchasing the property simply hecause of this land use conflict. While it is always possible that the Gold Nugget owners may seek some type of legal recourse in the future, we should only be looking at a potential offer if the Council feels this is the best suited site for a City owned industrial park. As a matter of fact, if the City was to work out a land swap with the Chadwick group, and the Gold Nugget property remains as a potential industrial site through the MOAA, the City would be accomplishing the same goal without actually owning the property, i.e., preserving the property for future industrial growth. The City doesn't have to own property to control its use, which can be accomplished by a land use plan. I have included some comparisons of land costs and potential costs for improvements that we recently prepared for the IDC meeting. A lot of these costs are simply estimates at this time but it does give the Council an idea of the potential cost for land and improvements in comparing the Chadwick/Goeman, Gold Nugget and existing industrial park land marketed by Charlie Pfeffer. I have also included information supplied by our engineer and their rough estimate of devclopment costs for each of the parcels. B. ALTERNATIVE ACTIONS: 1. If the Council is interested in pursuing acquisition of the Gold Nugget parccl, the first alternative would be to direct the Planning Commission to hold a public hearing to consider . Council Agenda - 1/10/00 amendments to our Comprehensive Plan for changes in land use from residential to industrial. An attempt would be made to craft the amendment language in a mmmer assuring compatibility in land use between the adjoining residential properties to the east without unduly limiting the desirability of the site for industrial use. 2. The Council could take no action at this time pending outcome of discussions with Chadwick/Bowers parcel. c. STAFF RECOMMENDATION: The staff feels there are many advantages to continuing negotiations on a potential land swap on the Chadwick/Bowers property. Primarily, a land swap would eliminate the need for immediate financing of a purchase and it is believed that freeway frontage property would be more desirable by future industrial users. Because of the uncertainty that exists with the Gold Nugget parcel and Comprehensive Plan amendments that would be needed, purchase options do not appear feasible at this time. The option does exist to take the property out of limbo by amending the Comprehensive Plan. The City could then simply leave the property in the hands of Gold Nugget who would then be free to develop the site for industrial uses. D, SUPPORTING DATA: . Development costs summaries. . . LAND COST COMPARISON ESTIMATES Chadwick/Goeman 180 acres Per acre Rick's offer $1,465,000 $ 8,139 WSB Improvements $3,600,000 $20,000 TOTAL NPV $5,065,000 $28,139 ZONING Industrial Gold N ue2et 220 acres Per acre Original $1,600,000 $ 7,273 WSB Improvements $3,080,000 $14,000 TOTALNPV $4,680,000 $21,273 . ZONING CITY Residential ZONING MOAA Industrial PfetIer 87.5 acres Per acre 67 acres $2,345,000 $35,000 20.5 acres $ 820,000 $40,000 WSB Improvements $ 724,675 $ 8,282 TOT AL NPV $3,889,675 $44,453 ZONED I-I . C\ . . ., , """f INDUSTRIAL P ARK COMPARISON GENERAL INFORMATION Monticello IDC Meeting - December 16, 1999 . Cost estimates are very general and should not be used for marketing purposes. . City projects for infrastructure development take from 2-4 months to develop, depending on the scope and decision- making process. . Constructionlbidding time lines vary from 1-5 months, depending on the size and scope of the project. . Soils in the 3 areas are similar and are compatible for construction. All areas are typically good granular soils. . Project layouts are approximate and assume minimum 500' lot depths. . Infrastructure system upgrades are dependent on all development and the speed of development. C;\ovcrhead$. wpd G\ Large (::::: 16 Ac.) Wetland in the Center of the Property. Limited Immediate Utility Access Significant Topography With Up to 30' of relief Will require immediate upgrade of Marvin Road lift station (may already be complete with the Groveland development). The infrastructure costs could be lowered if the road alignment was set to allow for incremental development of the site from east to west. . INDUSTRIAL PARK COMPARISON AREA A CHADWICK/GOEMAN Acreage: Approximately 180 Acres Status: Vacant / Undeveloped Issues: . . . . . . Approximate Costs: Summary - Area A Schedule A - Street Improvements $1,341,268.50 Schedule B - Sanitary Sewer $910,409.50 Schedule C - Watermain $590,947.50 Schedule D - Storm Sewer $1,409,837.00 Total Estimated Project $4,252,462.50 Cost Per Acre (180 Ac.) \ $23,624.79 . C:\overbcads. wpd q . e. . INDUSTRIAL P ARK COMPARISON AREA B GOLD NUGGET Monticello IDe Meeting - December 16, 1999 Acreage: ::::: 225 Acres Status: Vacant / Undeveloped Issues: . Fairly flat site with storm sewer elevation limitations. Possible sanitary sewer capacity concerns. No direct access to a major street or signal. Would not require immediate system upgrade but may require piping and lift station upgrades depending on the use. Could require significant grading cost to develop the site with free draining dock systems. . . . A1Wroximate Costs: Summary - Area B Schedule A - Street Improvements $1,532,144.90 Schedule B - Sanitary Sewer $493,936.30 Schedule C - Watermain $712,611.90 Schedule D - Storm Sewer $1,196,252.20 Total Estimated Project \ $3,934,945.30 Cost Per Acre (225 Ac.) $17,488.65 q