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City Council Minutes 02-14-1983MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL February 14, 1983 - 7:30 P.M. Members Present: Arve A. Grimsmo, Fran Fair, Jack Maxwell, Ken Maus, Dan Blonigen. Members Absent: None 2. Approval of the Minutes. A motion was made by Blonigen, seconded by Maxwell and unani- mously carried to approve the minutes of the regular meeting held on January 24, 1983. 4. Consideration of Meadow Oak Final Plat. Mr. Dick Knutson and Bob Bemboom, representing the Meadow Oak Limited Partnership, reviewed with the Council the proposed final platting of the Meadow Oak Subdivision. It was noted by Mr. Knutson that the ownership problem in regard to this land should be resolved by February 28th Council meeting at which time the Meadow Oak Limited Partnership intends to record three separate plats as follows: A. Meadow Oaks - This plat will cover the entire project amounting to 165 acres and will be subdivided into 16 outlots. B. Meadow Oaks Estates - Will constitute a replat of Outlot B and will be subdivided into large lots in- tended for single family dwellings consisting of 33 lots. C. Meadow Oaks Second Addition - Will constitute a re - plat of Outlot F into small residential lots intended to serve as home sites for manufactured housing con- sisting of 39 lots. As part of the Planned Unit Development under which this sub- division is being handled, the Council discussed some of the covenants that were being proposed by the developers in regard to items such as seeding, sodding, number of homes with base- ments, tree plantings, and accessory buildings. The partner- ship's proposal for covenants included requirements that the sodding of all front yards for each home will be completed within one year from the date the City issues a certificate of occupancy for that home. It was the Council's recommen- dation that the wording of the covenant be changed to re- quire seeding or sodding of the front and rear yards of any home be completed within 60 days after a certificate of occupancy is issued or if not practical due to weather con- ditions, by May lst of the succeeding year. 5. Council Minutes - 2/14/83 Another concern expressed by the Council was relative to the requirement that at least one-third of all manufactured home lots will have basements. Mr. Knutson noted that it was his opinion that the percentage will be closer to 70% of all homes built will have basements but Council members expressed concern over the problems the neighborhood could have with outside storage if a house does not have either; 1. A basement; 2. A garage; or 3. A storage accessory building. The possibility exists that a new home could be built without a basement and without a garage and as a result, no facilities would be available for storage of even small minor items, such as bicycles, lawn mowers, etc. It was the recommendation of the Council that if a manufactured home did not have either a basement or a garage built at the time of occupancy, an additional covenant should be placed against all of the property requiring that a wooden storage accessory building con sisting of a. minimum of 96 square feet be built to provide storage facilities for the home owner. Mr. Knutson noted that this would be incorporated into the covenants and that the building would be required to be wooden and also be required to match the color of the house. If the building was on a permanent foundation, it would have to meet the State building code. It was also recommended by the Council that any tree plantings associated with the landscaping for each home require that the trees be planted on the home owners property and not on the boulevard as initially proposed. A motion was then made by Maxwell, seconded by Fair and unanimously carried to approve the final plat as presented for creating the entire subdivision into 16 large outlots and also to approve the final plat for Meadow Oaks Estates and Meadow Oaks Second Addition consisting of 33 and 39 lots, respectively, contingent upon all of the changes noted above regarding the covenants being incorporated into the final plat. Consideration of a Report from the Oakwood Block Subcommittee. Recently, Council Members Maxwell and Maus along with City Administrator, Eidem, met with Mr. Warren Tiegen of Security Federal to discuss their latest offer for the purchase of the Oakwood Block. Security Federal's most recent offer was for the entire block for the sum of $250,000. - 2 - Council Minutes - 2/14/83 The Council, in reviewing this offer, by consensus feels that the City should continue to ask $300,000 for the parcel. It was the consensus of the Council that the City would like to control the development on this block by possibly a PUD de- velopment that could allow some variances from our normal requirements depending on the development, but would not make the restrictions too prohibitive to discourage development. It was noted that the original concept plan for developing this block,proposed buildings that would front on both Walnut Street and Hwy 25 with parking down the Middle of the block and it was still the Council's opinion that they would be favorable to this type of development. As a result, a motion was made by Maus, seconded by Maxwell and unanimously carried to propose a counter offer to Security Federal offering the Oakwood Block for $300,000 and noting that the City would like to see the block developed under a PUD concept and would be willing to work with the developer to achieve this goal. The offer would be good for 60 sixty days or April 15, 1983. 6. Consideration of Change Order #87 on the Wastewater Treatment Plant Construction Project. A motion was made by Maus, seconded by Maxwell and unanimous- ly carried to approve change order #87 on the Wastewater Treatment Plant Construction Project with the Paul A. Laurence Company that adds $70 to the cost of change order #85 due to an error in addition. 7. Consideration of Issuing a Certificate of Substantial Comple- tion for Wastewater Treatment Plant. On January 3, 1983, the Paul A. Laurence Company indicated that they were substantially complete with the Wastewater Treatment Plant Project as identified in Part 1 of the bid proposal in the plans and specifications. Substantial completion means that a portion of the Wastewater Treatment Plant can be used for the purpose for which it was intended and that the City assumes responsibility for the plant. A detailed inspection of the project was reviewed by the project engineer and the City Staff and items needing attention by the contractor were noted totalling $140,408. The City is currently retaining 5% of the completed work or $242,084 and it was recommended that we could reduce the retainage to 2.9% or $140,408 which should be an adequate reserve to complete the project. - 3 - Council Minutes - 2/14/83 A motion was made by Fair, seconded by Maxwell and unanimously carried to approve issuing a certificate of substantial com- pletion on the Wastewater Treatment Plant to the Paul A. Laurence Company and to reduce the retainage on the project from 5% to 2.9% or $140,407.85. 8. Consideration of Establishing a Fund to Supplement Employee Insurance Benefits. In September, 1982, the City of Monticello was informed by its insurance carrier for group health coverage that the company was instituting changes in its group policy that would reflect some cuts in benefits for the city employees. The City Staff over the past few months has obtained pro- posals from other group health insurance companies for the pur- pose of reviewing the possibility of changing insurance com- panies if necessary to provide the employees with coverage they have had for the past five years. Of the proposals sub- mitted, the monthly premiums varied from approximately $3,000 to over $3,800 per month for policies that could provide some of the same benefits the City's present group health carrier had. It was noted that the City is basically satisfied with its present insurance carrier and it was recommended that as an alternative to switching insurance companies, the City could establish an escrow fund for each employee for the purpose of re-establishing some of the benefits cut by the present policy. The recommended procedure was that the City could establish an escrow fund that would set aside $30 a month per employee that could be used by the employee to make up for any dif- ferences and reductions that have taken place in the new policy over the old policy. The primary areas of coverage reduction were in the deductible portion for each member and also some areas of coverage were reduced from 100% coverage to 80% coverage. Council members expressed concern over establishing an escrow fund that would be permanent in nature but the general consensus was that the City could establish an escrow fund as suggested for the year 1983 at which time it could be reviewed during salary negotiations in the fall. Additionally, it was suggested by some Council members that the City consider the possibility of obtain- ing insurance coverage that has a higher deductible per individual, but then the City could establish self-insurance to make up the difference. Although exact figures were not available, it was assumed that the reduction in the monthly cost for a higher deductible could be set aside to help reimburse the employees for the higher deductible cost. - 4 - Council Minutes - 2/14/83 After discussion on what medical items should be allowed to be used from an escrow fund, a motion was made by Maus, seconded by Maxwell, to authorize the establishment of an escrow account at $30.00 per month for each employee be- ginning January 1, 1983, until the end of December, 1983, with a maximum per employee contribution of $360 to be used by the employee to make up for the decreases in benefits under the deductible portion and also any decreases in benefits resulting from the employee picking up 200 of all medical bills. The fund established would pay benefits two times a year on June 30th, and December 31. Voting in favor was Maus, Grimsmo, Maxwell and Fair. Opposed: Blonigen. 9. Consideration of Bids for the Acquisition of Sewer and Water Department Van. Public Works Director, John Simola, recently solicited quotes from three area car dealers for the acquisition of a new sewer and water department van. The following quotations were received: Gould Brothers Chev. 1983 G20 Chev, 8 week delivery, 17 MPG, EPA est. meter. with smaller tires, no service manual, less hour Total $10,459.05 Less Trade 1,374.05 Cost $ 9,085.00 Country Chrysler - 1983 B250 Dodge, 6 week delivery, 18 MPG EPA est. less hour meter, service manual $27.50 extra. Total $10r241.68 Less Trade 1,445.85 Cost $ 8,795.83 Monticello Ford - 1983 E150 Ford, N/A week delivery. 16 MPG EPA est. less hour meter, service manual, $40.00 extra. Total $10,359.70 Less Trade 1,134.10 Cost $ 9,225.60 The initial quotations indicated that Country Chrysler of Elk River would be the apparent low bidder, but consider- able discussion occurred by the Council concerning whether a purchase of this nature should be purchased locally for a better service and less man hours lost in taking the vehicle for servicing In addition, it was noted that the present van is a Chev. model and the City of Monticello has had satisfactory service over the past 9 years. - 5 - Council Minutes - 2/14/83 As a result, a motion was made Fair, seconded by Maxwell and unanimously carried to authorize the public works director to negotiate with Gould Brothers Chev. and to authorize the purchase of a new 1983 Chev. van in an orange color provided a suitable price equal or less than the Country Chrysler bid of $8 795.83 can be met. Meeting Adjourned. Rick Wolf ste ler Assistant Administrator - 6 -