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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. -2- 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. -3- Council Minutes - 11/24/86 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