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City Council Minutes 08-27-1979MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL August 27, 1979 - 7:30 P.M. Members Present: Arve Grimsmo, Dan Blonigen, Fran Fair, Ken Maus, Phil White. Members Absent: None 1. Consideration of Resolution Authorizing the City of Monticello's Appli- cation for a Sanitation and Reforestation Grant for the Minnesota Shade Tree Disease Program. As part of the Shade Tree Disease Program sponsored by the State of Minnesota, each community must pass a resolution acknowledging that the individual city has a budget for removal of diseased Elm trees for 1979. This resolution is necessary for the City to qualify for the grant pro- gram under state laws. As part of the Grant Program, the City of Monticello received 500 of their sanitation budget or, in 1979, approximately $10,807, and 900 of the reforestation cost, or $1,458. Motion was made by Phil White, seconded by Fran Fair and unanimously carried to adopt a resolution approving the 1979 Sanitation and Reforestation Budget for the City of Monticello for submittance to the Minnesota Shade Tree Disease Program. (See Resolution 8/27/79 #14) 2. Consideration of Identification of Legislative Issues for the League of Cities Future Policy Position. The League of Minnesota Cities requested that each City Council attempt to identify five major issues of importance to each City that the League of Minnesota Cities legislative committees should discuss when they are reorganized after the regional meetings. A motion was made by Fran Fair, seconded by Phil White and unanimously carried to send to the League legislative council the following six items which were determined to be of major importance to the City of Monticello: 1. Review of the workmen's compensation laws so that the City and State can remain in a competitive position relative to attracting new industry. 2. Review of unemployment compensation laws and how they affect cities. 3. Review of changes in the law to allow County -State Aid highway funds for cities under 5,000 to be paid directly to the city rather than the money currently going to counties. COUNCIL MINUTES - 8/27/79 4. Clarification of open meeting laws to make it easier for the citizens, the press and the City Council to understand rather than leaving it to Attorney General opinions for interpretations. 5. Review of the 6% levy limitation law, since this law is quite re- strictive in light of inflation that ranges in the area of 10 to 13% annually. 6. Review of the State Building Code regulations and recommendation that they apply to all communities and counties within the State on an equal basis. 3. Consideration of Approval of Extra Items on Contract with Arcon Con- struction on 1977-3 Improvement Project. Arcon Construction Company requested that various extras on their com- pletion of the Street Improvement Project be added to the contract. Mr. John Badalich, City Engineer, reviewed these items with the City Council and recommended that approximately $22,000 in extra contract items be approved for payment. In addition, the City of Monticello still owes Arcon Construction 3% of their original contract amount, or $78,441, making the total amount owed to Arcon Construction approximately $100,000. As of this date, the majority of the items have been completed by the construction company and a recommendation was made by the City Engineer that approximately 80% of this amount be paid now while the balance is still in the nego- tiation stages with the construction company. Mr. Herman Tews, of Arcon Construction Company, requested that he be allowed to discuss the remaining items which he feels should be paid by the City with the City Administrator and City Engineer. Various items requested by Arcon have been deleted by the City Engineer and the final compromise will have to still be made in regards to the frozen watermains which occurred the past winter which the City plans to deduct from Arcon's final payment. Motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to approve 80% of the final recommended amount be paid on the 1977-3 Project. Before the balance of 20% is paid on the contract, representatives of Arcon Construction Company and the City of Monticello will be meeting to discuss the remaining disputed items. 4. Consideration of Amendment of Monticello's Grant Application on Step III Funds. City Engineer, John Badalich, indicated to the Council that because of the increasing construction costs that have been rising faster than inflation, it was necessary to amend the City of Monticello's grant application for Step III construction funds from $4,537,720 as previously approved to $5,562,510. �•Z COUNCIL MINUTES - 8/27/79 Some of the primary reasons for the increased cost calculations were: A. New sludge storage tanks will have to be built as the present items cannot be salvaged at the existing plant - $289,000. B. Controls at the plant would cost an extra $160,000. C. New grant would allow for an additional sludge applicator truck for approximately $70,000. D. New application includes a new storage facility to house the two sludge trucks - $45,000. E. Relocation of old maintenance shed - an additional $20,000. F. New digester not originally figured - $244,000. G. Basic inflation factor accounts for the balance. Although the City normally would be required to pay 100 of the additional cost, some of the items are considered innovative items and eligible for 100% federal and state funding. This total grant cost of $5,562,000 would leave a balance of $508,402 payable by the City, or approximately 9.13%. Motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to approve a resolution amending the original grant application for Step III funds from $4,537,720 to $5,562,510. (See Resolution 8/27/79 #15). 5. Consideration of Retainment of St Cloud Attorney to Handle the City of Monticello's Case Involving the 1978-1 Improvement Project. Recently, a summons was served upon the City of Monticello by the attorney for Harold Ruff regarding a claim for $30,000 for removing salvage from the easement obtained by the City of Monticello in its eminent domain proceedings for the 1978-1 improvement project. Since the City Attorney for Monticello and his associate were involved in resolving this issue with Mr. Ruff's attorney previously, and the City Attorney's associate may be called as a witness to the sequence of events that transpired resulting in the claim, it was his recommendation that the City of Monticello hire a different attorney with the St. Cloud lawfirm to handle the City's case. The City Attorney, Gary Pringle, recommended that Mr. Bernard Boland from St. Cloud be hired to represent the City of Monticello's case if it goes to court. Motion was made by Phil White, seconded by Fran Fair to hire Mr. Bernard Boland from St. Cloud to handle the summons issued by Mr. William Hoffman regarding Harold Ruff's claim against the City for $30,000. Voting in Favor: Phil White, Fran Fair, Ken Maus, Arve Grimsmo. Abstaining: Dan Blonigen. - 3 - COUNCIL MINUTES - 8/27/79 6. Consideration of Accepting School Board's Offer to the City of Monticello to Take Over the Library and be Granted Free Land in Block 17, or Take Over the Library and Block 32 for $100,000. At the City Council's joing meeting August 16, 1979 with the School Board, it was the general consensus of the City Council that ultimate control of the library would be taken over by the City. Later on, during that School Board meeting, the School District passed a resolution offering to sell to the City of Monticello, Block 32 in its entirety for $100,000 (Oakwood School) providing the City would agree to take over the library and relieve the School of any further obligation. Prior to the School Board's offer to sell the City the entire Block 32, the School had indicated that they would be willing to give sufficient property in Block 17 to the City free -of -charge for a new library site if the City would be willing to take over the library. Councilmembers discussed in length the options available as to whether they would be interested in purchasing Block 32 to be able to control the ultimate fate of the commercial block. It was the consensus of the Councilmembers that even if the City did purchase Block 32 or Oakwood School, a new library would probably not be suited for this site, or renovation of the existing building for public purposes would probably be much too expensive. The majority of the Councilmembers did feel that the City should purchase the entire block to control development in the area, but felt that an additional site would be necessary for a new library in the future. As a result, a motion was made by Phil White, seconded by Fran Fair and unanimously carried to accept the School Board's offer to sell Block 32 in its entirety for $100,000 to the City, provided that also a portion of Block 17 is given to the City that is suitable for building a future library at no additional charge. Additionally, the motion was contingent upon the fact that all legal opinions would have to be concurred with including those of the Attorney General in regards to the takeover of the library by the City from the School. (See Resolution 8/27/79 #16). 7. Consideration of Conveyance of Offer by Monticello Development Cor- poration for Lots 13 & 14 in Block 51 of Monticello. The Monticello Development Corporation offered to the City of Monticello the right to purchase Lots 13 & 14 in Block 51 for $35,000. These lots are in the same block as the former Monticello Ford Building and would front on River Street. Representative of the Development Corporation, Dr. John Kasper, indicated that the reason for offering these two lots to the City is for the development of additional parking in the downtown area. The City's parking committee, the Business & Industrial Development Commission, has at various times reviewed the possibility of recommending that this land be purchased by the City and has had various discussions with the Development Corporation in the past years relative to this land and had recommended that the City purchase the property for $35,000. - 4 - COUNCIL MINUTES - 8/27/79 It was noted that if the City should decide to buy these lots for downtown parking, an assessment hearing would probably have to be held prior to the actual purchase as the cost of the land and any improve- ments for blacktopping would be assessed to the downtown retailers. It was the consensus of the Council to study the matter further in regards to purchasing these two lots for parking, and also to have the City Planner take a look at the feasibility of improving these lots for parking. 8. Approval of Bills. Motion was made by Phil White, seconded by Fran Fair and unanimously carried to approve the bills for the month of August, as presented. (See supplement 8/27/79 #1). 9. Approval of Minutes. Motion was made by Fran Fair, seconded by Dan Blonigen and unanimously carried to approve the Regular Meeting minutes of August 13, 1979 and the minutes of the special meeting held August 16, 1979. 10. Miscellaneous Items. Boat Launch in Ellison Park - Public Works Director, John Simola, re- viewed with the Council the possibility of upgrading the boat launching facilities in Ellison Park. He indicated that the City had, in 1977, obtained approval from the State DNR to construct a new boat ramp in Ellison Park, but it was not constructed in 1977 due to lack of time and manpower. As a result, the permit expired, but Mr. Simola has reapplied for the permit. The proposed new ramp would be located in Ellison Park rather than along the present location at the end of Washington Street. After discussion by the Council on possible parking problems in reloca- ting the ramp, it was the consensus of the Council to table the matter until the next Council meeting to enable the members to review the site. Discussion on Possible Use of Historical Center - Council discussed the possible future use of the historical center building since the historical committee has not developed any specific use of the building in the past. Individuals have approached the City in regards to possible rental of the building for commercial businesses, but it was the consensus of the Council that no action would be taken to rent or lease the building at the present time since the facility does not have any bathrooms and it would be too costly to install these facilities just for the purpose of renting. - 5 - COUNCIL MINUTES - 8/27/79 Additional Items for Civil Defense Sirens - Mr. Loren Klein, Civil Defense Director, requested permission to install steps on the three civil defense siren poles for future access to the sirens for maintenance purposes. He indicated that it would be best to install these steps now before the poles are actually erected and consensus of the Council was to authorize the purchase of the steps for approximately $200 - $300. Discussion on State Requirement of Right Turn Lane Off Of Highway 25 Onto Sandberg Road - Mr. John Badalich, City Engineer, informed the Council that the State of Minnesota Department of Transportation is now requiring that the City construct a right turn lane on Highway 25 that would enter into Sandberg Road. The entire construction cost would be the responsibility of the City and Mr. Badalich indicated that he had previously reviewed the plans on the 1978-1 project, but at that time the State did not indicate a need for the right turn lane. It was the consensus of the Council that the City Engineer should corres- pond with State Highway Department indicating that the City does not feel the right turn lane is necessary or the responsibility of the City since other roads in that area, especially County Road 117 does not have a right turn lane. Review of Assessment Policy on 1978-1 Project - Approximately eight (8) areas or subdivisions were improved under the 1978-1 improvement project with utility services. Originally, the estimated assessments for each area were calculated on the basis of each subdivision being separate, and also were figured by combining all the subdivisions into one project or equal assessments. Now that the project is almost completed and the assessments are being prepared, Mr. Badalich asked for a clarification on how the project should be assessed. Motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to calculate the assessments on the 1978-1 project on an individual area by area basis rather than the entire project as one. Discussion on Blacktopping the Balance of Elm Street - the Public Works Director, John Simola, informed the Council that the balance of Elm Street between Ruff Auto Parts entrance to where it connects to Country Club Road along Elm Street is not currently blacktopped. Approxi- mately 500 feet of the roadway was left in a gravel base construction and was not part of the 1978-1 improvement project. It was the consensus of the Council that this portion of the road will be left as is for now due to the fact that in a few years, the road would have to be torn up again to install the new force main anticipated for this area. Hearing no other business, the meeting was adjourned. Rick Wolfste er Administrati e Assistant RW/ns - 6 -