City Council Minutes 10-15-1985MINUTES
REGULAR MEETING - CITY COUNCIL
Tuesday, October 15, 1985 - 7:30 P.M.
Members Present: Mayor Arve Grimsmo, Fran Fair, Bill Fair,
Jack Maxwell and Dan Blonigen.
Members Absent: None.
1. Call to Order.
2. Approval of Minutes.
Motion was made by Maxwell, seconded by Blonigen, and
unanimously carried to approve the minutes of the regular
meeting held September 23, 1985.
3. Citizen's Comments/Petitions/Complaints.
Mr. Ken Larson appeared before the Council to request
that the Council hear his request for a conditional use
permit to allow for a two-family dwelling expansion to
his home at the corner of Washington and 4th Street.
Mr. Larson noted that the Planning Commission, at their
previous meeting, tabled action on his request due to
insufficient information regarding parking requirements.
It was recommended by the City Administrator that since
there was some opposition to the conditional use request
at the Planning Commission level, and because the item
was tabled by the Planning Commission, it was recommended
that the item be heard again by the Planning Commission
at their next regular meeting before the Council considers
this item. As a result, motion was made by Bill Fair,
seconded by Fran Fair, unanimously carried to direct the
applicant to return to the Planning Commission first for
their comments before Council consideration.
Mr. Kurt Corrow of Corrow Sanitation, appeared before
the Council to provide information substantiating their
increase that was granted in May of 1985 to offset the
landfill taxes that was required starting in May. At
the time the increase was granted, the Council requested
that in six months Corrow Sanitation provide sufficient
records that would indicate the additional amount granted
was justified. The Council directed Mr. Corrow to provide
the information to the Public Works Director or City Administrator
and that it was not necessary for the Council to discuss
this item at the Council meeting at this time.
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Council Minutes - 10/15/85
4. Public Hearing - 1986 Budget and Revenue Sharing and Consideration
of Adopting 1986 Annual Budget and Setting the Tax Levy.
As required by law, the City Council held a public hearing
on the 1986 annual budget and on the proposed Revenue
Sharing uses as part of the budget. No comments were
heard from the public regarding the budget except that
joint Fire Department Representative Paul Kline requested
that the Council consider increasing the training allowance
for the Fire Department from the proposed $1,800.00 to
approximately $2,700.00 to allow for additional men to
attend the recommended training sessions each year. Mr.
Kline noted that at least nine men should go to training
sessions each year and the average cost has been close
to $300.00 per man. Council members noted that the City
has never denied a Fire Department member from attending
a training session and felt the budget could remain as
is and actual expenditures will be again reviewed next
year. Mr. Kline also requested that the Fire Department's
hourly wages be raised from the present $7.00 per hour
for the first hour and $5.00 thereafter, to $10.00 per
hour for the first hour and $7.00 thereafter as the department
has not had a raise in 6 years. Mayor Grimsmo noted that
the Fire Department is supposed to be a volunteer organization
in that the department should not expect to receive raises
equivalent to what full time employees receive and felt
the City compensationis comparable to other communities.
Mr. Kline also noted that the Fire Department would like
to raise its retirement benefits from $500.00 per year
of service to $700.00 per year of service, which would
require approximately a $138.00 levy by the City to fund
their liability. The City Administrator noted that a
Fire Department can raise its own retirement benefits
provided they have a 10% surplus which, at the present
rate of income should occur in the next few years.
The proposed, budget as presented would require a tax levy
to be certified for collection in 1986 of $1,577,250.00.
Motion was made by Fran Fair, seconded by Dan Blonigen,
unanimously carried to adopt resolution setting the tax
levy at $1,577,250.00. (See Resolution 1985 # 16)
5. Public Hearing - A Proposal to Issue Revenue Bonds - Raindance
Partnership and Consideration of a Resolution Granting
Preliminary Approval for the Issuance of Industrial Revenue
Bonds for a Commercial Development Project for Raindance
Partnership.
In August, the City Council gave approval to Raindance
Partnership to apply to the State of Minnesota for authority
to issue Industrial Revenue Bonds in the amount of $1,500,000.00
for the purpose of building a 33,000 square foot commercial
facility situated on Block 15 adjacent to the railroad
tracks and Hwy. 25.
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Council Minutes - 10/15/85
The State of Minnesota granted the allocation and the
Partnership was now requesting preliminary approval of
the issuance of the Bonds.
Incorporated with the overall project is a proposed Tax
Increment District which will allow for the Monticello
HRA to acquire the parcels currently owned by Wilbur Eck
and the parcels owned by the City and sell them to Raindance
Partnership at a reduced rate to allow the development
to occur. As part of the Tax Increment proposal, the
City would construct an e aPn.sion of 6th Street from Hwy.
25 to Cedar Street and the.;ost of the improvement being
paid for by the taxes generated from the new building
under the Tax Increment Plan.
Hearing no public comme.zts regarding the project, motion
was made by Maxwell, seconded by Fran Fair, and unanimously
carried to adopt a resolution granting preliminary approval
to the project in authorizing preparation of necessary
documents for the issuance of the Bonds. (See Resolution 1985##17
6. Public Hearing - Consideration of Adopting Assessment
Roll for Delinquent Sewer and Water Bills.
Minnesota Statutes allow cities to certify as special
assessments all delinquent sewer and water bills past
due. A list of 12 individual accounts delinquent more
than 60 days was presented to the Council for certification.
Hearing no comments from the public, motion was made by
Fran Fair, seconded by Blonigen, and unanimously carried
to adopt a resolution establishing the assessment roll
for certification to the County Auditor for collection
with 1986 taxes. (See Resolution 1985 ##18)
8. Consideration of a Resolution Setting a Public Hearing
Concerning Tax Increment District and Tax Increment _ Finance
Plan - Raindance Partnership.
On October 10, the Monticello HRA approved a Tax Increment
Finance Plan for the Raindance Partnership proposal to
build a 33,000 square foot retail complex on Block 15.
The Plan calls for the sale of $350,000.00 in Tax Increment
General Obligation Bonds that will be used by the HRA
to acquire the property and make improvements to 6th Street
as part of the project. The Finance Plan projects that
annual Tax Increments of approximately $41,000.00 shall
be collected from the project over 18 years to retire
the $350,000.00 bond issue with no tax levy required from
the general public.
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Council Minutes - 10/15/85
A motion was made by Bill Fair, seconded by Maxwell, and
unanimously carried to adopt a resolution setting a public
hearing at 7:30 p.m. on Monday, October 28, for the purpose
of receiving public input regarding the proposed Tax Increment
Plan and District #6. (See Resolution 1985 #19)
10. Consideration of Change Order #1 - Fire Hall Construction
Project.
The Fire Hall Bulding Committee recently learned that
a slightly higher efficiency gas furnace was available
for the Fire Hall construction project that would cost
an additional $122.00 for the two furnaces.
A motion was made by Bill Fair, seconded by Fran Fair,
and unanimously carried to approve Change Order #1 on the
Fire Hall construction project with Fullerton Lumber Company
for an additional $122.00 for the two higher efficiency
Lennox gas furnaces.
11. Consideration of Making Final Payment on Public Improvement
Projects 84-1, 84-2, 84-3 and 85-1.
The above projects have been recently completed and recommended
for final payment by the City Engineer and City Public
Works Director. Projects 84-1, 84-2 and 84-3 consisted
of County Road 75 improvement, Cedar Street improvement
and Hart Boulevard improvements, with a final construction
cost of $587,896.67. The final payment due is $110,882.00
to Buffalo Bituminous.
The 85-1 project consisted of interceptor sewer work
by LaTour Construction which has a balance due of $2,500.00.
A motion was made by Bill Fair, seconded by Maxwell,
and unanimously carried to approve the final payment
in the amount of $110,882.00 to Buffalo Bituminous for
Projects 84-1, 84-2 and 84-3 and to also approve final
payment in the amount of $2,500.00 to LaTour Construction
as final payment on 85-1 interceptor sewer project.
12.. Considertion of Entering a Lease with Northern States
Power Company for the Development of Softball Fields.
Previously, Northern States Power Company has agreed
to lease lands lying west of the training center on West
River Street to the City for the new softball field development
complex that is being partially constructed with a State
Grant. In order to submit the final grant application
to the State, the City must enter into the lease agreement
to demonstrate that the property is under the control
of the City of Monticello.
Council Minutes - 10/15/85
A motion was made by Fran Fair, seconded by Maxwell,
and unanimously carried to authorize the execution of
the lease agreement with Northern States Power for the
property to be used as the City's Softball Field Complex.
13. Consideration of a Resolution Authorizing Submittal of
a Final Grant Application for Legislative Commission
on Minnesota Resources Grant Funds.
Recently the City of Monticello has been approved for
funding for the softball field project. The City expects
to receive $27,500.00 in grant monies that must be matched
with City funds in the development of the softball field
complex and must submit this final grant application
by October 25, 1985. (See Resolution 1985 #20)
A motion was made by Maxwell, seconded by Bill Fair,
and unanimously carried to adopt a resolution authorizing
the filing of the final grant application for the LAWCON
Grant funds to the State Department of Natural Resources.
14. Consideration of Construction of a Portion or All of
the Interceptor Sewer.
For the past several years, the City has been considering
the construction of an interceptor sewer running west
to east through the community adjacent to the railroad
tracks for the purpose of diverting sewage flow from
the Bridge Park Lift Stations to eliminate overloading
conditions on the lift stations in the Bridge Parks.
During the past number of years, a portion of the interceptor
sewer line has been constructed from the Wastewater Treatment
Plant to Washington Street and also a segment was installed
under Hwy. 25 during the summer of 1985. Recently, the
Public Works Department performed a small amount of flow
testing on the sewer line near West Bridge Park and determined
that the capacity of the line is reaching near maximum
flow at certain times necessitating the construction
of the interceptor sewer in the near future. It has
been roughly estimated that the interceptor sewer construction
from Hwy. 25 to Washington Street and from Hwy. 25 westerly
to Linn Street would cost in the neighborhood of $600,000.00
and could eliminate approximately 30% of the flow now
going down River Street through the lift stations. It
was estimated that the entire interceptor sewer project
from Washington Street westerly to Elm Street would cost
approximately $1,000,000.00.
The Public Works Director recommended that the Council
consider building approximately 70% of the interceptor
sewer line from Linn Street to Washington Street to alleviate
part of the problem of near capacity flowage on the Bridge
Park lift stations. The City Council discussed whether
doing the entire project in one year would result in
a better price for the City rather than doing the project
in two or three phases and it was suggested that possibly
plans and specifications regarding the interceptor sewer
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Council Minutes - 10/15/85
be prepared for the entire project now and then a decision
could be made as to whether only 70% should be constructed
in 1986 or whether the entire project should be done.
It was noted that the plans and specifications for the
entire sewer line will be necessary in the future even
if only part of it is constructed in 1986.
As a result, motion was made by Bill Fair, seconded by
Maxwell, and unanimously carried to authorize the City
Engineer to prepare plans and specifications for the
entire interceptor sewer line from Elm Street to Washington
Street. It was noted that funding for the project could
be partially financed by available City funds with the
balance coming from a bond sale. (See Resolution 1985 ##21),
15. Consideration of a Request for a Conditional Use Allowing
a Day-care Center - Applicant, NRM Partnership.
NRM Partnership, a St. Cloud based firm is proposing
to construct a 46 x 64 foot 2,944 square foot day-care
center in a lot of the new Victoria Square Addition.
The Planning Commission recently approved the Conditional
Use Permit for the day-care center.
Motion was made by Fill Fair, seconded by Maxwell, and
unanimously carried to approve the ;:onditional use request
to allow the day-care center in a B-2 limited business
zone contingent upon the recording of the final plat
of the Victoria Square Addition by the developer with
the appropriate fees being paid to the City of Monticello
for the Plat recording.
16. City Hall Roof Construction.
Mr. Greg Vetsch, the labor contractor on a recently completed
City Hall roof project, appeared before the Council to
request that final payment in the amount of approximately
$7,000.00 be remitted. Mr. Vetsch indicated that it
was his understanding the City of Monticello had all
the necessary insurance coverages regarding the reroofing
project and felt he was only a. subcontacto to do the
labor portion of the project an;'. that th;: City was the
general contractor and should now hold hiw responsible
for damage that occurred because of a rainstorm during
the project. Mr. Vetsch noted that matei:i�i= were not available
on site for closing in the roof prior to the rain damage
and that it should not have been his responsibility to
get the material. Mr. Vetsch claimed he wa:3 unaware
that his contract required insurance coverag: and requested
that the matter be settled soon.
Council members informed Mr. Vetsch that the matter has
been turned over to the City Attorney and without his
advice the Council was not able to respond to Mr. Vetsch's
comments at this time. As a result, no action was taken
regarding Mr. Vetsch's request.
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Rick Wolfstellgi-, Assistant Administrator