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.
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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.
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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.
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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.
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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
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