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City Council Minutes 08-13-1979MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL August 13, 1979 - 7:30 P.M. Members Present: Arve Grimsmo, Phil White, Dan Blonigen, Fran Fair. Members Absent: Ken Maus. Citizens Comments: Mr. Don Luger, representative from St. Henry's Catholic Church, requested permission from the Council to allow the St. Henry's Men's Club to barricade off a portion of Fourth Street in front;of the Church on the afternoon of September 23rd, for their annual fall festival. Mr. Luger's request was based on a safety factor due to the large number of people who attend this festival. Additionally, Mr. Luger requested permission of the City Council to allow the Catholic Church to erect a banner advertising the fall festival across Fourth Street four weeks prior to the September 23rd event. Motion was made by Fran Fair, seconded by Phil White and unanimously carried to approve the closing of Fourth Street during the afternoon of September 23rd and also to allow the erection of a temporary banner four weeks prior to the scheduled event. 1. Consideration of Approval of Award on Eminent Domain for Order Issued by Tenth Judicial Court. The Tenth Judicial Court District, in its Report of the Commissioners, has issued an Order dated July 9, 1979, to award the sum of $16,500 to Tim and Joyce Genung relative to the easement containing approximately 20,000 square feet that the City had to obtain in order to serve Country Club Manor with sewer and water and also for roadway purposes. The Order also deferred all proposed assessments against this parcel until actual hook up to the City sewer and/or water system takes place by the owner. State Statutes allow either party to appeal the award within 40 days from the date of the Order, but the City Council did not take any action and therefore, the award of $16,500 was accepted by the City Council. 2. Consideration of Naming City's Representative to Union Negotiating Committee for Renewal of Labor Contract. The International Union of Operating Engineer's Local 49 labor contract with the City of Monticello expires on April 1, 1980. A list of demands from the union representatives has been submitted to the City for review COUNCIL MINUTES - 8/13/79 as part of the new two-year contract. The union demands include six changes to the contract in addition to increased wages. Mayor Arve Grimsmo appointed Councilmembers Ken Maus and Phil White to the union negotiating committee to represent the City Council along with Gary Wieber, City Administrator, to negotiate a new contract with the Local 49 members. Motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to again hire attorney, Mike O'Connor, as legal representative to work with City Council and Administrator in negotiating a new two- year contract. 3. Consideration of Action to Take Against Property Owners Failing to Hook Up to Sanitary Sewer System by Deadline Date. According to City Ordinance Section 7-2-3-(B), it is necessary that once a parcel of property has sanitary sewer service available from the City, it is necessary to hook up to the system within three years after com- pletion. Property owners abutting the improvement completed in 1975, were originally sent notices and given until October 15, 1978 to hook up to the sanitary sewer. Approximately thirteen homeowners indicated last fall that they would be unable to hook up in time to meet the deadline due to problems getting contractors to do the work. At the October 10, 1978 council meeting, the Council granted an extension to July 15, 1979 for mandatory hook up to the sewer system. To date, there are eleven property owners who have not yet completed the hook up, but one individual did request an extension until August 15, 1979 to complete it. One of the property owners who had not yet hooked up, Ken Tabbert, indicated to the Council that his sewer system is relatively new and asked why he couldn't wait until his system went bad before he be required to hook up. He was informed that the reason for the mandatory hook up was to eliminate any possible ground pollution as it is almost impossible to tell whose water supply his septic system may pollute. Another Hillcrest Resident, Lloyd Nolan, indicated that he has contacted a contractor and will be hooking up to the system in about three weeks. Motion was made by Fran Fair, seconded by Dan Blonigen and unanimously carried to have the City Administrator notify each property owner not currently hooked up that individual hook ups must take place within fourteen days or legal action will be taken by the City. (See Supplement 8/13/79 #1). - 2 - COUNCIL MINUTES - 8/13/79 4. Consideration of the Award of the Sale of $1,170,000 in General Obliga- tion Improvement Bonds for the 1979-1 Improvement Project. Mr. King Forness, of Springsted, Inc., bonding consultants for the City, opened five bids received on the sale of $1.1 million in general obliga- tion bonds. The bid calculations were as follows: BIDDER Dain, Kalman & Quail, Inc. BancNorthwest The First National Bank of Saint Paul The First National Bank of Chicago COST NET INTEREST COST $11170,745.95 $449,216.55 $1,170,000.00 $451,011.06 $11170,000.00 $452,947.71 $1,170006.91 $453,346.21 Continental Illinois National Bank & Trust Co. of Chicago $1,170009.31 $459,576.96 NET INTEREST RATE 5.6134% 5.6358% 5.66000 5.66505% 5.742917% After reviewing the bids submitted, it was the recommendation of Mr. Forness that the City award the sale to Dain, Kalman & Quail, Inc. Motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to adopt a resolution accepting bid on sale of $1,170,000 general obligation improvement bonds for 1979 and awarding same to Dain, Kalman & Quail, Inc. at a net interest rate of 5.61340. (See Resolution 8/13/79 #13) 5. Consideration of Hiring Additional Full Time Employee for the Public Works Department. In the first part of June 1979, the City advertised for a temporary summer employee to work with the Public Works department in the areas of sewer and water. The position at that time was noted to be a temporary posi- tion with the possibility that it could turn into a full time position if it was determined necessary by John Simola, Public Works Director. Mr. Matt Theisen was hired for the position and it is now the recommenda- tion of the Public Works Director that Matt be hired on a full time permanent basis. In addition to the present need for additional help in the Public Works Department, possibly an additional two to four employees will be needed by the City just to operate the new wastewater treatment plant once it is completed in 1981 or 1982. It is anticipated that Mr. Theisen will be utilized in this capacity and in the meantime will be gaining experience in the operation of the present treatment plant. - 3 - COUNCIL MINUTES - 8/13/79 Motion was made by Phil White, seconded by Fran Fair and unanimously carried to hire Matt Theisen as a full time employee in the Public Works Department at a salary of $5.04 per hour. It was noted that on December 4, 1979, Mr. Theisen's salary would raise to 900 of the union rate, or $5.67 per hour. 6. Consideration of Sewer and Water Utilities Petition Received from Curtis Hoglund. A petition was received from Curtis Hoglund requesting that sewer and water be extended to his property, located at the corner of County Road 75 and East County Road 39 (currently Curt's Storage and Sales). Mr. Hoglund plans to develop the northerly portion of his property into townhouse -type dwellings. Although the property has not been subdivided yet, Mr. Hoglund filed the petition in order to get an idea as to whether or not sewer and water services could be made available to his property. According to the proposal presented, future plans would call for approxi- materly five 6 -unit townhouse structures with each owner of a townhouse being an owner of the common ground area. At the present time, the property is zoned R-3 where the townhouses are proposed to be developed, and representatives of Mr. Hoglund have indicated that they would probably just be dividing the parcel into two parcels by a certificate of survey. City Engineer, John Badalich, indicated that servicing this parcel was a possibility by extending sewer and water through an easement up the hill from Mississippi Drive. The other alternative would be to extend sewer and water westerly along County Road 39 from its present ending point on Mississippi Drive. The developers of the property indicated that they would be willing to install the improvements them- selves using the easement and coming from Mississippi Drive. Mr. Badalich also indicated that if the Hoglund's were allowed to provide their own water and sewer service to their property, future plans for this area may include additional water and sewer lines along County Road 39 and/or Highway 75. These future lines would then result in more assessments for sewer and water against the balance of the property. Detailed plans and specifications for the sewer and water extensions would have to be prepared by the developers and submitted to the City Engineer for review prior to installation. In addition, it is recom- mended by Mr. Badalich that the City actually inspect the improvements. A development agreement with the City and the property owner would have to be prepared before the improvements could be installed. This development agreement would provide for bonding of the cost of the improvement or a letter of credit payable to the City for the cost of the improvements. These features would protect the City should the developer not install these services correctly. - 4 - COUNCIL MINUTES - 8/13/79 It was the consensus of the Council that the developers be allowed to install their own services provided the development agreement and plans and specifications are prepared in advance. It was also noted that since the property will be subdivided and a conditional use was necessary for the townhouses, planning commission review would have to take place before actual approval of the buildings could be granted. 7. Consideration of Final Payment on Seal Coat Project - 79-1SC. Batzer Construction Company, contractor on the 79 sealcoating project, requested that the final payment in the amount of $1,298.46 be approved by the City of Monticello. Ten percent (100) of the original contract was withheld until the City completed sweeping the streets of the excess rocks. It was recommended by the Public Works Director that the project be accepted and that final payment be made to Batzer Construction Company. Motion was made by Fran Fair, seconded by Dan Blonigen and unanimously carried to approve final payment in the amount of $1,298.46 to Batzer Construction Company on the sealcoating project, making a total contract price of $12,984.64. 8. Consideration of City Accepting Utilities Installed on our 1978-2 Improve- ment Project - Balboul Estates. Marvin George Builders of Princeton, Minnestoa, developer of Balboul Estates plat, requested that the City Engineer do a final inspection on the improvement project and requested that the City accept the improvements so that he could start to occupy homes in the development. The original development agreement between the City and Marvin George Builders, allowed him to install his own sewer and water utilities provided the final project was inspected and approved before acceptance by the City. John Badalich, City Engineer, indicated that a final inspection was completed by his inspectors on Monday, August 13th. Approximately fif- teen items needing completion before the project could be accepted was presented to Marvin George for his review. Most of the items were minor in nature and should be completed within a week or two. Once these items were completed, it was the recommendation of the Engineer that the City accept the utility improvements and streets in Balboul Estates. In addition, it was noted that lien waivers would be needed from Marvin George before the City would release the letter of credit originally issued during the development agreement. Motion was made by Fran Fair, seconded by Phil White and unanimously carried to accept the Balboul Estates utility improvement project provided the exceptions noted on the Punch List completed during the final inspection are completed. (See Supplement 8/13/79 #2). - 5 - COUNCIL MINUTES - 8/13/79 9. Approval of Minutes. Motion was made by Fran Fair, seconded by Dan Blonigen and unanimously carried to approve the minutes of the special meeting held July 30, 1979 and the regular meeting held July 23, 1979. 10. Review of 77-3 Street Project Assessments. City Engineer, John Badalich, presented revised figures for the Council to review on the 77-3 street assessments. Mr. Badalich indicated that the assessments for a typical lot in the city would be somewhat higher than previously indicated during the original public hearing on the proposed project. The reasons for the increased cost were mainly because of extra construction work done over the original feasibility report. These extra items included additional sod that was not figured in the original cost along with water services that were placed to empty lots to prevent future streets being torn up. At the original public hearing on the proposed street improvements, a typical assessment for a residential lot based on 200 of the actual cost was estimated at $613. The revised figures now indicate an assessment for a typical lot to be approximately $748. It was the consensus of the Council that Mr. Badalich prepare assess- ment rolls for the 77-3 project for a public hearing to be held on September 10, 1979 at 7:00 P.M. 11. Special Meeting. A special meeting will be held on August 16, 1979 at the Oakwood School to discuss with the School Board the future of the public library in Monticello. Meeting adjourned. hardfsteller Administ ative Assistant RW/ns