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City Council Minutes 05-09-1983MINUTES RECULAR MEETING - MONTICELLO CITY COUNCIL May 9, 1983 - 7:30 P.M. Members Present: Arve Grimsmo, Dan Blonigen, Fran Fair, Jack Maxwell and Ken Maus. Members Absent: None. 2. Approval of Minutes. A motion was made by Maus, seconded by Fair and unanimously carried to approve the minutes of the April 25th, 1983 Council Meeting and the Special Meeting held on May 2, 1983. 3. Citizens Comments. Mr. Bud Hiniker, property owner along County Ditch 33 in Monticello Township was present at the meeting to voice his objection to the Meadow Oak subdivision being allowed to drain its excess water from the subdivision project to County Ditch #33 which flows to the Mississippi River. Mr. Hiniker felt that since Meadow Oak is a City project, the City should be responsible for providing storm sewer and drainage solutions for that development and should not be allowed to drain the water into County Ditch #33 which is currently in need of repairs already. City Consulting Engineer, John Badalich, noted that Meadow Oak subdivision would only be approximately 200 plus acres in a 5,000 acre drainage area that uses County Ditch #33 and that the Meadow Oak subdivision would not cause any major problems along the ditch if the ditch was properly maintained to begin with. The Meadow Oak subdivision will be applying to the County Board for a permit to be allowed to drain its excess water into this ditch and any additional cost associated with improving the ditch would be assessed to the Meadow Oak subdivision related to their contribution of water. 4. Consideration of a Resolution Accepting Bids and Authorizing the Sale and Issuance of General Obliqation Bonds of 1983. Mr. Jerry Schannon of Springsted, Inc., the City's Bonding Consultant, was present at the meeting with four sealed bids for the purchase of $1,150,000 in General Obligation Improvement Bonds which will be used to finance the improve- ments to Meadow Oak subdivision. - 1 - Council Minutes - 5/9/83 The bids received for the sale of bonds were as follows: NAME NET INTEREST NET INTEREST DOLLAR COST RATE (Northwestern Bank) Norwest Securites $670,116.67 7.9147 Merrill Lynch $675,803.33 7.9829 First Minneapolis $667,050.00 7.8785 Allison - Williams Co. $668,781.67 7.89899 After reviewing the bids received, it was the recommendation of Mr. Schannon that the City accept the low bid from First Bank of Minneapolis. A motion was made by Maxwell, seconded by Blonigen and unanimously carried to adopt the resolution accepting the low bid from First Bank of Minneapolis for the sale of $1,150,000 in General Obligation Improvement Bonds at a net increase cost of $667,050.00 and a net increase rate 7.8785%. (See Resolution 1983 #71) . 5. Consideration of Purchase Agreement to be Submitted to Security Federal Savings & Loan for the Sale of Block 32 (Oakwood Block). Concerning the sale and development of Oakwood Block to Security Federal Savings & Loan, the City Planner, John Uban of Howard Dahlgren & Associates, has recommended that some basic covenants should be added to the purchase agreement to allow for City control and direction on the development of the block. In addition to the six basic covenants recommended, additional items to be considered on the future development of the block were discussed con- cerning traffic flow, types of businesses, saving of exist- ing trees on the block, and parking requirements, etc. The covenants and other suggested guidelines will be discussed with Security Federal prior to the signing of the purchase agreement. A motion was made by Fair, seconded by Blonigen and unani- mously carried to authorize the City Administrator and the Mayor to sign a purchase agreement with Security Federal and to incorporate the guidelines as submitted by the Planner as part of the purchase agreement with the exception of item #4 in the planner's report being deleted and item #4 in the suggested guidelines to note that resi- dential development on upper floors of any buildings would be considered in the development plan. - 2 - Council Minutes - 5/9/83 The sale price of the entire block will be $300,000 with $100,000 earnest money being paid upon the signing of the purchase agreement and the balance payable upon closing which is tentatively scheduled for June 15th, 1983. 6. Consideration of a Claim for Damages by John Sandberg. In October of 1982, Mr. John Sandberg appeared before the Council requesting that he be reimbursed for costs to improve the sewer service at his home along Oak Lane. Mr. Sandberg's claim was based on the fact that he felt the original sewer service from the main located in the street to his property line was improperly installed and had a_ sag in the middle causing blockage in his line. He had originally incurred costs of approximately $860.00 to repair the service and felt that the City or its original contractor should be liable for the expenditures. At that meeting, the City did not feel it was obligated or responsible for the sewer service as it was originally constructed approximately 7 years ago, but did offer to reimburse Mr. Sandberg one half of the $E60 or $430 of his bill. Mr. Sandberg did not accept the City's offer and again was requesting full reimbursement for his cost. In reviewing this item with the City Attorney, Gary Pringle, and Mr. Jon Franzen of Foster Franzen Insurance Agency, it was the attorney's opinion that the City would probably be liable although not necessarily negligent in this case, and recommended that the City's insurance carrier be responsible. The insurance agent has indicated that, in all likelihood, the insurance company would pay the claim to Mr. Sandberg for the City. Based on the City Attorney's opinion, it was the Council's consensus that this claim will be turned over to the City's insurance company for their review. 7. Consideration of a Proposal From the Monticello School District With Respect to the Transfer of Land Referrred to as 4th Street Park. Recently the Monticello School Board discussed the possible transfer of a parcel of land adjacent to the Public Library along Hwy 25 to the City of Monticello to be used for park purposes. It was the School Board's proposal to offer the land to the City in exchange for an agreement by the City to construct some type of a restroom/concession type build- ing at Pinewood playground in lieu of compensation for the land. - 3 - Council Minutes - 5/9/83 The original estimate of these improvments to the school property would amount to $40,000 to $45,000 and it was the Council's consensus to reject any building proposal suggestion offered and to await further counter offers (if any) from the School District regarding the transfer of this land. The main reasons for the rejection of the School's offer was that the Council does not feel the property adjacent to the Library has any value to the School since the School is limited in using this property only for school or playground purposes by restrictive covenants. The Council noted that if the City would acquire this property, funds would be spent to improve the property over its present condition and that they would not consider additional expenditures of a large nature in exchange for acquiring this property. 8. Consideration of a Request for Financial Support by the Monticello Business and Industry Committee. Mr. Bruce Gagnelius and John Bondhus of the Business and Industrial Development Committee were present at the Council meeting to request the funding from the City in the amount of $7,300 for the year 1983. The Business and Industrial Committee's goals and objectives were reviewed with the Council. The City of Monticello had originally budgeted $4,000 for the Business and Industry Committee for the year 1982 which to date had not yet been distributed to the Business and Industrial Committee. For 1983, the City budgeted $4,270 making a total of funds available of $8,270. A motion was made by Fair, seconded by Maus and unanimously carried to approve the allocation of $7,300 to the Business and Industry Committee for the year of 1983. 9. Consideration of Property Management Ordinance and Consider- ation of Request to Purchase Computer Software for Property Management. As part of the grant from the Federal Government for con- struction of the Wastewater Treatment Plant, the City is required to develop a property management program and pass an ordinance for the same. In addition to the Waste- water Treatment Plant, it was recommended that the Property Management Ordinance be applicable to all City functions. 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