City Council Minutes 11-24-1986MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 24, 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 Fran Fair, seconded by Bill Fair, and unanimously
carried to approve the minutes of the regular meeting held November 10,
1986.
4. Consideration of Executing a Cost Sharing Agreement with Wright County
for the Installation of Highway 25 Traffic Control Signals.
Since the Highway 25 project involved improvements to intersections
of county roads, Wright County was responsible for a certain portion
of the cost for the highway improvements, as well as the traffic
signals to be located at County Road 117 and 7th Street. The County's
funding policy was to pay 100% of the highway related cost at County
Road 117 and County Road 75, along with 50% of the signal cost at
County Road 117, 7th Street, and County Road 75 intersections.
Based on cost established from the bid tabulations for the project,
Wright County's share of the total Highway 25 construction project
is estimated at $47,983.70. An agreement has been prepared by the
Wright County Highway Department establishing their funding requirements
based on the above percentages.
Motion was made by Bill Fair, seconded by Maxwell, and unanimously
carried to approve entering into an agreement between the City of
Monticello and Wright County regarding the funding for the construction
cost and traffic signals.
4a. Consideration of Accepting Documents to Establish an Escrow Account
and Contracting for the Construction of a Sewer and Chelsea Street
Extension and Authorizing the Mayor and Administrator to Execute.
Mr. Jim Metcalf, Legal Counsel for the School District, updated the
Council on the progress being made in acquiring the Boyle property
for the middle school site. Mr. Metcalf noted that the sale is scheduled
to be finalized prior to the next Council meeting and requested that
the City authorize the Mayor and Administrator to execute all necessary
documents that would establish an escrow account that will be used
to pay for the construction of the Chelsea Road extension and sewer
line to the new middle school site. In addition, it was noted that
Council Minutes - 11/24/86
contracts will be provided to the City for the construction of the
improvements in an amount not to exceed $350,000.00.
Councilmember Blonigen questioned whether the City would be responsible
for any cost overruns should the improvement project cost more than
the $350,000.00 escrow; and Administrator Eidem noted that any cost
overruns would still be the responsibility of Mr. Jim Boyle. Both
Boyle's engineer and the City Engineer have reviewed the construction
cost estimates and feel the $350,000.00 should be adequate.
Motion was made by Bill Fair, seconded by Fran Fair, and unanimously
carried to authorize the Mayor and Administrator to execute and sign
the required agreements upon final approval being given by the City
Attorney.
5. Consideration of Approving City Participation in the Reconstruction
of the Intersection of County Road 75, County Road 118, and East
County Road 39.
Recently, Public Works Director, John Simola, requested the Wright
County Board look into the possibility of a future signal light at
the intersection of County Road 75, 39, and 118. The County Highway
Department recently completed a study of the intersection to determine
whether any improvements were needed and noted that the intersection
has some problems with traffic, but they did not feel that traffic
signals at this time were warranted. Based upon the traffic study,
there appears to be an immediate need for some reconstruction and
re -alignment in this intersection, by moving County Road 39 and 118
to the east slightly to provide for 90 degree entrances onto County
Road 75. In addition, traffic flow through the intersection could
be made safer with raised channelization along County Road 75 with
right and left turn lanes.
The County has agreed to consider the re -alignment and upgrading
of this intersection with the construction of County Road 39 which
is scheduled to begin in 1987. The additional upgrading of the intersection
would be funded through the County's municipal funding policy, which
would require the City to contribute 30% of the grading, base, and
surfacing cost, along with 50% of the concrete median and 50% of
any additional right-of-way required. If after further study traffic
signals were constructed, the City would share in this cost at 50%.
The estimated cost of improving the intersection without signals
was $87,000.00, with the City's cost being projected at approximately
$33,500.00, excluding engineering costs. If after further study,
traffic signals at this intersection would be included in the project
cost, the City's share would approach $70,000.00 to $75,000.00.
Public Works Director, John Simola, recommended that the City participate
with the County in a study of the intersection to determine the actual
design that should be considered and to further study the need for
traffic signals at this location. The estimated cost of the engineering
study for the City would be between $2,000.00 and $5,000.00.
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Council Minutes - 11/24/86
Motion was made by Fran Fair, seconded by Dan Blonigen, and unanimously
carried to authorize the City to participate in the intersection
engineering study per the County Municipal Funding Policy.
6. Consideration of Hiring a Technical Arbiter to Evaluate Financial
Responsibility of Excess Cost Related to Interceptor Sewer and Sixth
Street Station.
At the beginning of 1986-1 Interceptor Sewer Project, Raindance Corporation
was in the process of soil excavation for their development known
as Sixth Street Station located between Cedar Street and Highway 25.
The interceptor sewer was planned for construction at the northerly
end of this property prior to Raindance Corporation starting their
building program. Raindance Corporation had requested that the City
allow them to begin soil corrections for their building located close
to the interceptor sewer line before the interceptor sewer was completed;
and as a result, the City took extra steps to make sure that the
soils replaced over the interceptor sewer pipe would be sufficient
and not cause any problems for a future building.
During the construction of the sewer line, the City hired Braun Engineering,
along with its own engineering consultant, OSM, to ensure that proper
soils were replaced during the sewer construction; and it was recommended
by the engineers that some of the unsuitable soils be replaced with
new material to ensure that the City could not be held negligent
in the future. A problem arose in that Raindance Corporation had
agreed to special conditions for their early start, one of which
required Raindance to pay any extra cost, if any, for special backfill
requirements in the interceptor sewer line trench. Because of the
replacement of unsuitable materials, the City has incurred extra
cost between $20,000.00 and $30,000.00, which Raindance Corporation
does not feel responsible for. Raindance Corporation felt the material
that was excavated was suitable for compaction in the interceptor
sewer line trench and would not have caused any problems for their
new building; and as a result, do not feel the extra cost should
be charged to them.
Representatives of Raindance Corporation, Braun Engineering, the
City's Consulting Engineer, and City staff, along with the contractor,
L & G Rehbein, have met to try and work out who, if anybody, should
be responsible for the extra cost incurred. To date, no solution
has been arrived at; and it was recommended by the Public Works Director
that if one more additional meeting did not solve the problem, a
technical arbiter be hired by the City to evaluate the circumstances
surrounding the extra cost and determine who should be liable for
the cost.
After further discussion by the Council, it was their consensus that
the City staff should meet with all parties one more time to try
Fr and work out a solution; but if an agreement cannot be reached, the
Council would hold a special meeting with all parties involved to
try and arrive at a solution.
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7. Consideration of Approving the 1987 Fire Contract with Silver Creek
Township.
A current fire protection agreement with Silver Creek Township expires
on December 31, 1986, and a new contract has been submitted to the
Township for their approval. The new contract calls for an annual
flat charge of $7,625.00 per year on a 3 -year contract, which has
been approved by the Silver Creek Board.
Motion was made by Maxwell, seconded by Blonigen, and unanimously
carried authorizing the City to enter into a new contract for fire
protection services for three years with Silver Creek Township at
an annual flat charge of $7,625.00 per year.
8. Consideration of Executing the 1987 Law Enforcement Contract with
the Wright County Sheriff's Department.
For the past three years, the City has contracted with Wright County
Sheriff's Department for law enforcement coverage based on 6,905
hours of patrol coverage. The hourly rate for 1987 has been set
at $18.50 per hour by the Wright County Sheriff's Department, which
would total $127,742.50.
Motion was made by Bill Fair, seconded by Maxwell, and unanimously
carried to ratify the contract with the Wright County Sheriff's Department
for law enforcement protection for 6,905 hours of coverage at $18.50
per hour.
9. Consideration of Authorizing Inter -fund Transfers for the 1986 Budget.
Motion was made by Blonigen, seconded by Maxwell, and unanimously
carried to approve the following transfers.
Item -Purpose
1986
Amount Transfer From
Amend Budget -Personal Services $ 22425.00 Contingency
Amend Budget -Personal Services $252000.00 Contingency
Amend Budget -Personal Services $ 42000.00 Contingency
Amend Budget -Personal Services $ 2,500.00 Contingency
Contingency Fund Balance- $271700.00* Contingency
Close Out Fund
To cover deficit created in $71,350.00 General
1985 -New Twp. Aid Agreement
To close out surplus balance $26,896.66 1975 G.O.
in Debt Service Fund Maint. Bldg.
To close out construction $ 1,610.08 Hart, Bdwy,
fund balance to Debt Service Cedar Const.
Fund
Transfer To
General
LCMR
Water
Sewer
General
OAA
1980 G.O.
Library Bond
1984 G.O.
Impr. Bond
Item -Purpose
Transfer approved by Council
7/28/86 for sprinkler, S & W
hookup, electrical service
for NSP softball complex
Amount
Council Minutes - 11/24/86
1986
Transfer From Transfer To
$27,925.00 Capital Outlay LCMR Fund
Revolving
*Figure is approximate - depends on final tax collection in December, 1986.
10. PSG Monthly Report.
Mr. Steve Sunt, Plant Manager at the Wastewater Treatment Plant for
PSG, Inc., reviewed with the Council the monthly report of the operations
at the Wastewater Treatment Plant. After discussion, the report
was accepted as presented.
11. Quarterly Liquor Store Report.
Mr. Joe Hartman, Manager of the Liquor Store, was present to review
with the Council the third quarter and nine month financial statement
of the Liquor Store.
Total sales for the first nine months were up approximately $29,750.00,
with gross profit up approximately $19,000.00. The net operating
income was also up almost $24,000.00 to $62,700.00. It was noted
by Mr. Hartman that if the fourth quarter equals last year's sales,
sales for the year will exceed $1 million. The Council accepted
the financial report as presented.
12. Consideration of Bills for the Month of November.
Motion was made by Maxwell, seconded by Bill Fair, and unanimously
carried to approve the bills for the month of November as presented.
Rick Wolfste ler
Assistant Administrator
I&M