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City Council Minutes 04-14-1986MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 14, 1986 - 7:30 p.m. Members Present: Arve A. Grimsmo, Fran Fair, Bill Fair, Jack Maxwell, Dan Blonigen. Members Absent: None. 2. Approval of Minutes. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to approve the minutes of the regular meeting held March 24, and the special meeting held April 71 1986. 4. Consideration of Adopting a Resolution Awarding the Sale of General Obligation Sewer Interceptor Bonds, Series 1986 A. Mr. Jerry Shannon of Springsted, Inc., the City's Bond Consultant, reviewed with the Council the seven bids received from financial institutions on the sale of $1,050,000.00 in General Obligation Sewer Interceptor Bonds. The low bidder was First National Bank of Minneapolis, and the First National Bank of St. Paul, with a net interest cost of 6.7294%. The seven bids ranged from the low to a high of 6.926%. It was the recommendation of Mr. Shannon that the City accept the low bidder, First National Bank of Minneapolis and First National Bank of St. Paul. Motion was made by Fran Fair, seconded by Maxwell, and unanimously carried to adopt a resolution awarding the sale of the Interceptor Sewer Bonds to the low bidder, First National Bank of Minneapolis and First National Bank of St. Paul, at a net interest rate cost of $732,334.38 at 6.7294%. See Resolution 86-10. 5. Consideration of Accepting a Petition Requesting the Installation of Sanitary Sewer Lines - Petitioners, Raindance Partnership, Wilbur Eck. A petition was received by Raindance Partnership and Wilbur Eck requesting the extension of an 8 -inch lateral sewer line along the west side of Cedar Street that would connect into the interceptor sewer by means of an outside drop connection. The primary purpose of the extension would be to serve the Raindance Partnership property currently being developed into a grocery store and retail complex. The estimated cost of the project is $8,000.00 and would be assessable to the two property owners petitioning. Motion was made by Maxwell, seconded by Bill Fair, and unanimously carried to accept the petition for the sewer extension and to authorize the installation of the project with the construction cost to be split 50/50 by the two parcel owners requesting improvements. Council Minutes - 4/14/86 6. Consideration of Adopting a Resolution Affirming Participation in the Reconstruction of T.H. 25. In order to proceed with the scheduled reconstruction of T.H. 25, MH/DOT requested the City adopt a resolution granting approval to the plans and specifications regarding the design of the reconstruction and also requested adopting a resolution approving the contract of participation by the City in the funding of the improvements. City Engineer, John Badalich, reviewed with the Council some areas of concern he had in the plans and specifications that he felt should be changed by MN/DOT. The concerns included additional safety precautions including the use of portable concrete barriers to limit access to the section of the road being repaired and assurances that Monticello Ford has access from Oakwood Drive during construction. Other areas of concern included items concerning the new traffic signals and a requirement that at least half of the lights along Highway 25 and Broadway be usable during construction nighttime hours. In regards to the cooperative construction agreement between the City and MN/DOT, Public Works Director, John Simola, noted concerns in the cost sharing formula in such areas as the landscaping proposed by the cemetery along Highway 25. The landscaping is proposed to be done in the Highway right-of-way, but the contract calls for City paying the entire cost; and it was recommended that the State should delete this item unless the State is willing to pay the entire cost. In addition, Mr. Simola recommended that the sidewalk proposed along Highway 25 be terminated at the 7th Street area rather than extended to the overpass, as the sidewalk will not extend across the freeway at this time, and the City could eliminate the 100% cost of the sidewalk improvement until needed in the future. In addition, Mr. Simola requested that the City be allowed to remove the existing stop lights on Broadway and salvage the material rather than pay the estimated cost of $2,000.00 to have the contractor remove the stop lights. Under the present cost estimates, it is expected that the City's share of the Highway 25 construction project would be in the neighborhood of $186,000.00 payable in three installments approximately June 1, July 15, and August 26, 1986. Motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to adopt a resolution approving the plans and specifications for the Highway 25 improvement project contingent upon the City Engineer's concerns being addressed by MN/DOT. See Resolution 86-11. Motion was also made by Fran Fair, seconded by Bill Fair, and unanimously carried to adopt a resolution entering into a cooperative construction contract agreement for cost sharing on the improvement contingent upon the cost sharing items noted by the Public Works Director being addressed by MN/DOT during the actual construction. See Resolution 86-12. 7. Consideration of Awarding a Contract for Sixth Street Construction. Bids were opened on April 10 for the construction of 6th Street between Highway 25 and Cedar Street as part of the Raindance Partnership -2- Council Minutes - 4/14/86 building project. The bids ranged from a high of $94,306.60 to a low of $66,152.00. The low bidder was Veit Construction. Motion was made by Maxwell, seconded by Fran Fair, and unanimously carried to award the contract for the construction of 6th Street between Highway 25 and Cedar Street to the low bidder, Veit Construction, in the amount of $66,152.00. 8. Consideration of a Request to Allow Construction of a Commercial Facility Without Providing On-site Parking in a B-4 Zone - Applicant, Floyd Kruse. Mr. Floyd Kruse, co-owner of Dino's Deli, is proposing to add an addition to the rear of Dino's Deli Restaurant that would house an addition to the restaurant business and also an office building complex with apartment structures on the second level. The original proposal was to expand the building all the way to the rear lot line, which would eliminate any on-site parking spaces. City Ordinances require new buildings to provide on-site parking spaces based on the number needed by the activity proposed. It was noted by the City staff that if the building was allowed to be expanded as proposed, the commercial uses would not have any parking spaces available except in the public parking lots, and the proposed expansion to the lot line would possibly create a hazard with the building abutting a 10 -foot alley. It was recommended by the City staff that the setback be at least 24 feet from the alley which would allow for approximately three diagonal parking spaces behind the building and sufficient area for maintenance and snowplowing of the alley without creating a hazard. In addition, the expansion would require Mr. Kruse to purchase additional parking spaces in the public parking lot which could be addressed by an assessment for additional parking spaces or an annual maintenance fee to be established. The item was being discussed by the Council for the purpose of determining whether Mr. Kruse should be allowed to proceed with his plans and to give direction to Mr. Kruse as to whether the City would be receptive to allowing expansion without providing on-site parking requirements. Mr. Kruse noted that he felt he would have to make at least a 72 -foot addition to his present building to make the project feasible, which would bring it closer than 24 feet to the alley right-of-way. It was the consensus of the Council that Mr. Kruse should prepare a Certificate of Survey or site plan that could be presented to the Planning Commission for their review showing exactly the dimensions of the property and exact location of the building expansion. Mr. Kruse was informed that the Council felt some type of agreement could be negotiated regarding the parking requirements within the public parking lot, whether it be an assessment or an annual maintenance fee for his requirements. -3- Council Minutes - 4/14/86 9. Consideration of a Request to Allow the Monticello Emergency Food Shelf to Locate in the Existing Vacated Fire Hall. Mary Nolan, who operates the Monticello Emergency Food Shelf out of St. Henry's Church, requested permission to be allowed to use the office portion of the old Fire Hall for the Emergency Food Shelf operation. The organization was looking for a larger facility to use, and they were agreeable to stipulation that they may have to vacate the Fire Hall facility if and when the City has an alternate use for the property. Motion was made by Fran Fair, seconded by Dan Blonigen, and unanimously carried to authorize the Monticello Emergency Food Shelf operation to use the office facility of the old Fire Hall site with the City paying for all utilities. 10. Consideration of a Request for the Issuance of a Sunday Liquor License - Applicant, Monticello VFW. Motion was made by Maxwell, seconded by Bill Fair, and unanimously carried to approve the issuance of a Sunday On -sale Liquor License to the Monticello VFW Club. 11. Consideration of a Request for a Transfer of an On -sale Liquor License - Silver Fox Motel. Mr. Rodney Dragsten, who is in the process of purchasing the Silver Fox Motel, requested the transfer of the existing On -sale Liquor License to his new corporation to be known as Applewood Inn, Inc. Motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to approve the issuance of an On -sale Liquor License to Mr. Dragsten for the Silver Fox Motel property contingent upon proper insurance coverage and surety bond requirements. 12. Consideration of a Request for Issuance of a One -Day Setup/3.2 Beer License - Applicant, Ducks Unlimited; and 3.2 Beer License for 4th of July Celebration - Applicant, Lion's Club. The Monticello Lion's Club requested a one -day 3.2 Beer License and One -Day Setup License for their annual Ducks Unlimited Banquet to be held May 12, 1986, at the Monticello Roller Rink. In addition, they requested a One -day 3.2 Beer License for their annual July 4th celebration. Motion was made by Maxwell, seconded by Bill Fair, and unanimously carried to approve the issuance of the above one -day licenses. 13. Consideration of Authorizing the Circulation of Request for Proposals for Private Contract Operations for the Wastewater Treatment Plant. Public Works Director, John Simola, reviewed with the Council the final draft of a Request for Proposals which would allow for private -4- Council Minutes - 4/14/86 contracting for the operation and maintenance of the City's Wastewater Treatment Plant facility. Mr. Simola noted that if the Request for Proposal document was approved, he would be soliciting four or five bids from private contractors by May 30, 1986, after which a few of the bids would be selected for an interview. It was noted that it was his opinion the earliest start up date for private contracting of the plant would be approximately October 1, 1986, if it was determined to be in the best interest of the City to go to a private contract. Mr. Simola noted that after the bids are received, it was his recommendation that the Public Works Director and City Administrator, along with the City Engineer and an additional consulting engineer familiar with private contracting of treatment plants, and two members of the City Council review the bids as a committee. Council members selected were Mayor Grimsmo along with Councilman Bill Fair. After further discussion, motion was made by Blonigen, seconded by Bill Fair, and unanimously carried to approve the RFP in its final form and to authorize the Public Works Director to solicit four or five prospective contractors interested in running the Wastewater Treatment Plant by May 30, 1986. 14. Discussion on Possible Sale of Former Senior Citizen Center Building Site on West Broadway. Mayor Grimsmo informed the Council members that abutting property owner, John Koppy, has expressed an interest in purchasing the vacant lot which was the site of the old Senior Citizen Center building on West Broadway. The vacant parcel is currently used as a small park facility. City Administrator Eidem noted that if the City has an interest in selling the property, it would have to be offered to the public for sale and that possibly an appraisal should be gotten on its value prior to offering it for sale. Councilmember Maxwell offered to do an informal appraisal of the parcel based on recent selling prices of similar property and to report back to the staff with his findings. Rick Wolf ste ger v Assistant Administrator -5-