City Council Minutes 08-11-1986MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, August 11, 1986 - 7:30 p.m.
Members Present: Arve A. Grimsmo, Fran Fair, Jack Maxwell, Dan Blonigen.
Members Absent: Bill Fair
2. Approval of Minutes.
Motion by Maxwell, seconded by Fran Fair, and unanimously carried
to approve the minutes of the regular meeting held July 28, 1986.
Mayor Grimsmo abstained from voting due to absence at last meeting.
4. Consideration of Renewing a Contract for Hauling Refuse with Corrow
Sanitation.
During the past few weeks, the City staff has been negotiating with
representatives of Corrow Sanitation regarding a 3 -year extension
of their current refuse hauling contract with the City of Monticello.
Corrow had proposed to renew the contract at the current base fee
of $6,125.50 per month, but requested that additional apartment units
from August 1 on be added at $2.50 per unit and that additional homes
be added at $5.15 per unit. After further negotiations, Corrow agreed
to add homes at $5.10 per unit over the life of the 3 -year contract.
In addition, the contract will require that Corrow Sanitation supply
the City with copies of their dumping records to enable the City
to keep track of the amount of garbage being collected.
After further discussion, motion was made by Fran Fair, seconded
by Maxwell, and unanimously carried to authorize the City staff to
enter into a new extended 3 -year contract with Corrow Sanitation
at the present base fee, with additional homes being added at $5.10
and apartment units at $2.50 per unit.
5. Consideration of Entering an Agreement to Sell the Old Fire Hall.
This item was deleted from the agenda.
6. Consideration of the Municipal Liquor Store Financial Report.
Mr. Joe Hartman, Liquor Store Manager, was present at the Council
meeting to review the 6 -month financial report. Mr. Hartman noted
that sales for the first six months show an increase of approximately
$33,000.00 over the same period last year, and the gross profit has
increased approximately $20,000.00. Overall operating income is
also up approximately $23,000.00 over the same period last year.
It was also noted that due to the Highway 25 construction project,
customer accounts for the month of July were down approximately 712%
and may lower sales, etc., compared to last year at this time.
The financial report was accepted by the Council as presented.
Council Minutes - 8/11/86
7. Consideration of an Offer to Purchase the Monticello Municipal Liquor
Store.
During the past few years, the City of Monticello has had a number
of conversations with individuals concerning the possible sale of
the Municipal Off -sale Liquor Store. Recently, an offer was made
to purchase the Liquor Store by Floyd and Walter Markling; and as
a result, the Council discussed whether the City should pursue the
evaluation of the offer or determine that the City is not currently
interested in selling the store.
It was the general consensus of the Council members that the revenue
derived from the Liquor Store operation would be hard to replace
unless the sale price of the store was quite substantial; and as
a result, felt at the present time the City should not consider sale
of the operation.
As a result, the Administrator was informed to notify the Marklings
that the City has no interest in selling the store at the present
time.
8. Consideration of Approving Specifications and Ordering an Advertisement
for Bids for the Acquisition of a Loader for the Public Works Department.
In November of 1981, the City purchased the 930 Caterpiller Loader
from Ziegler, Inc., and as part of the purchase received a contract
which guaranteed a minimum repurchase price of $63,400.00 for the
loader anytime within five years. The original purchase price of
the loader was $61,371.00; and as a result of the contract, the City
could return the loader and receive more money than it paid for it
five years ago. The Public Works Director, John Simola, noted that
although the loader is in basically good condition, he noted that
the City has experienced some transmission problems that have not
been completely resolved and recommended that the City consider advertising
for bids for a new loader and return the old one and get the $63,400.00
back. The present value of the loader on the open market was estimated
at somewhere around $50,000.00; and as a result, the City would benefit
to the tune of approximately $13,000.00 over its present value.
It was estimated that a new loader with slightly more horsepower
would cost approximately $85,000.00 resulting in a net additional
cost of approximately $23,000.00; but it was noted that the City
would have a new loader with a life expected of between 7 and 10
years.
After further discussion, motion was made by Maxwell, seconded by
Fran Fair, and unanimously carried to approve the specifications
for the new loader and to authorize advertisement for bids returnable
9:00 a.m., August 25, 1986.
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Council Minutes - 8/11/86
9. Consideration of Setting a Special Budget Meeting.
During the past two years, the City Council has met in a special
session to discuss goals and objectives for the upcoming year prior
to the preparation of the preliminary budget. Due to the anticipated
absence of some of the Council members, it was the consensus to hold
the meeting regarding goals and objectives at the same time the preliminary
budget meeting is held in early September.
10. Consideration of Setting a Special Meeting to Interview Computer
Consultants.
Administrator Eidem noted that the City received four proposals from
firms interested in being the City's consultant for computer selection
process. The staff has done reference and background checks on each
of the firms and has recommended that two consultants be interviewed
for further consideration. Mr. Eidem noted that the City staff will
be meeting with the two consultants on Wednesday, August 13, prior
to City Council interviews with the consultants. The two firms recommended
for further consideration were Carroll, Franck & Associates of St.
Paul, Minnesota, and a proposal from Gruys Johnson & Associates,
the City's auditing firm, in combination with Management Advisors,
Inc.
Motion was made by Fran Fair, seconded by Maxwell, and unanimously
carried to set a special meeting for the purpose of interviewing
the computer consultants at 5:45 p.m., Monday, August 25, 1986, prior
to the regularly scheduled Council meeting.
11. Distribution of Preliminary Draft of a Contract for Wastewater Treatment
Plant Operations.
Public Works Director, John Simola, noted that negotiations with
Professional Services Group, the selected contractor for contract
operations at the Wastewater Treatment Plant, have been completed,
and a preliminary draft of a proposed contract is in its final stages.
The preliminary draft was distributed to the Council members for
their review, and it is expected that a final draft will be available
for Council action at the August 25, 1986, Council meeting.
Rick Wolfste14Xer
Assistant Administrator
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