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City Council Minutes 04-13-1987MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 13, 1987 - 7:30 p.m. Members Present: Fran Fair, Bill Fair, Warren Smith, Dan Blonigen. Members Absent: Arve A. Grimsmo 2. Approval of Minutes. Motion was made by Warren Smith, seconded by Bill Fair, and unanimously carried to approve the minutes of the regular meeting held March 23, 1987. 4. Consideration of Entering a Fire Training Mutual Aid Association. Approximately a month ago, representatives of the Monticello Fire Department requested the City enter into a joint powers agreement with the cities of Becker, Big Lake, Elk River, Zimmerman, and the Township of Becker for the purpose of sharing the cost associated with video training tapes for all fire departments. The Monticello Fire Department's share of the tapes would have been $216.20. The joint powers agreement presented by the Fire Department was reviewed by the City Attorney, Gary Pringle, who recommended against entering into a joint powers agreement creating another level of government with its own independent budget and decision-making authority. It was recommended by the City Attorney that if the primary reason for the agreement was to jointly participate in the purchase of video cassettes only, then a simple one page agreement allowing for joint and cooperative purchase of these items would be sufficient and that a nine page joint powers agreement setting up a separate association would not be necessary. As a result, motion was made by Bill Fair, seconded by Dan Blonigen, and unanimously carried to not approve entering into a joint powers agreement for the purpose of mutual fire training. The Council members confirmed that the idea of contributing towards the purchase of video cassettes for training purposes was a good idea; and as a result, a motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to approve the expenditure of $216.20 as Monticello's share of the training tapes. 5. Consideration of Endorsing the Motto "Gateway to the Twin Cities" as a Commercial Marketing Concept. W.J. Murphy, owner of the Monticello AmericInn Motel, appeared before the Council requesting endorsement of a commercial marketing concept Council Minutes - 4/13/87 that would include a series of billboards along I-94 in the area of Melrose and Albany which would utilize the concept that Monticello is the gateway to the Twin Cities. Some of the billboards would be advertising Monticello in general without a specific business being mentioned. Motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to endorse the motto "Gateway to the Twin Cities" as a commercial marketing concept. 6. Consideration of Adopting an Ordinance Regulating Sidewalks. Currently, the only reference in the City Ordinances regarding sidewalks is a requirement that abutting property owners must clear their walks of ice and snow by 10:00 a.m. each day. The Public Works Director recommended that the City adopt a new ordinance regulating sidewalks which would cover repair responsibility along with maintenance and procedures for special assessments if sidewalks are replaced or added within the community. The new ordinance would allow for the Public Works Director to inspect annually the sidewalk conditions within the City and make recommendations for required improvements. An ordinance amendment was also recommended that makes sidewalks an allowable use within a boulevard and a final ordinance amendment would recode an existing ordinance regarding vehicles parked on streets after snow falls. Councilman Blonigen questioned the ordinance's requirement that residents would be responsible for snow removal from sidewalks abutting their property and felt that in some cases, depending on the location of the sidewalk, this may be hard to enforce or be an unfair burden on the property owner. The Public Works Director noted that the City currently has ordinances requiring snow removal by the property owner and that the new recommended ordinance would actually extend the time period to 24 hours after a snow fall. After further discussion, motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to adopt Ordinance Amendment Numbers 153, 154, and 155, pertaining to repair and maintenance of sidewalks, allowable uses within a boulevard, and recodification of parking after a snow fall. See Ordinance Amendments No. 153, 154, 155. 7. Consideration of Adopting a Resolution Authorizing the Making of an Application for Community Development Block Grant Funds, and Setting a Public Hearing. Now that the North American Window Company has selected Monticello as a site for its Minnesota plant, the City of Monticello is attempting to structure an attractive financial package that will assist in their location. As part of the financial package, the City is considering applying for a Community Development Block Grant in the amount of $250,000.00 that could be loaned to the Window Company at a reduced interest rate. -2- Council Minutes - 4/13/87 One of the requirements for applying for the Block Grant from the State of Minnesota is that the City must hold a public hearing to explain how the City intends to use its funds. As a result, motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to adopt the resolution authorizing the application for a Community Development Block Grant from the Department of Energy and Economic Development and to hold a public hearing on the proposed uses of the Block Grant April 27, 1987. See Resolution 87-10. The Council further discussed the interest rate that would be charged on the Block Grant loan to the Window Company should the City receive the Grant. It was noted that the State of Minnesota does not regulate the amount of interest that could be charged, and the City Administrator noted that the Window Company was under the impression from a state representative that the interest rate could be as low as 1 percent or 11� percent. In light of the fact that the money would be used to entice a foreign firm to locate in Monticello and that the money is a grant from the State, motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to indicate to the Window Company that the interest rate on the $250,000.00 loan would be 112 percent annually. 8. Consideration of Setting a Public Hearing on a Proposed Tax Increment Finance Plan and Project. An additional part of the financial package being prepared for the Norwegian Window Company location in Monticello is a Tax Increment Finance Plan which would help write down the cost of the land acquisition. The finance plan as presented reflects an acquisition price for the two lots in the industrial park needed by the Window Company of approximately $1042000.00. A total bond issue in the range of $155,000.00 to $160,000.00 could be financed entirely from tax increments generated by the project and would result in the write down of the land cost to approximately $5,000.00 for the Window Company. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to set a public hearing for April 27, 1987, to consider the proposed Tax Increment Finance Plan for Project V. 9. Consideration of a Statement Charging the City for Video Cassette Recorder Rental for the Monticello Fire Department. As part of the 1987 preliminary budget request by the Fire Department, a VCR to be used for training purposes was requested by the department for $400.00. Prior to the adoption of the final budget for 1987, the item pertaining to the VCR was eliminated from the budget. Fire Chief, Willard Farnick, indicated that he was not aware of the budget cut and had purchased a VCR in January of 1987 assuming it was still in the budget. After the Fire Department was informed that the purchase would not be authorized, the City Administrator allowed the Fire Department to rent a VCR on an as -needed basis for training purposes until the amount could be included in next year's budget. -3- Council Minutes - 4/13/87 The City recently received a bill from Flicker's TV and Appliance for a six month rental of a VCR totaling $87.00. The rental was for the entire six months from November through April, 1987, whereas the City Administrator thought the rental charges should apply only to when the department actually needed a VCR for training purposes. The Council then discussed whether the department should continue renting a VCR on a month -by -month basis or consider the actual purchase of the VCR, as the rental charges would soon exceed the value of a VCR purchases;. The Council did note that it was the Fire Department's obligation to kiow what the final budget adopted was and that hopefully in the future siiAlar problems would not arise regarding unauthorized purchases. Councilmember Blonigen again questioned whether a VCR for the Fire Department was a necessity and questioned its value. After further discussion on purchasing policies in the future, motion was made by Bill Fair, seconded by Warren Smith, to authorize up to $300.00 for the purchase of the VCR currently being rented provided no rental charge is incurred for the past usage. Voting in favor was Bill Fair, Fran Fair, Warren Smith. Voting in opposition was Blonigen. 10. Consideration of Granting a Seasonal 3.2 Beer License to the Monticello Softball Association. Motion was made by Bill Fair, seconded by Warren Smith, and unanimously carried to approve issuing a seasonal 3.2 beer license to the Monticello Softball Association contingent upon proper certificate of insurance for liquor liability and the fee of $125.00. 11. Consideration of Awarding a Contract for Cleaning Services for City Hall. Recently, the cleaning service at the Monticello City Hall indicated a desire to resign their duties, and the City advertised for sealed bids for custodial service for City Hall. The following two bids were received. 1. Barbara Gardin 2. Federal Maintenance and Cleaning Maple Lake, MN Michael Chandler --Contact Person Annual Bid: $7,400 Monticello, MN Monthly Payment: $616.66 Annual Bid: $7,096.92 Monthly Payment: $591.41 It was noted that the low bid received is approximately $2,200.00 higher than the City is currently paying, but one of the primary reasons for the increase has to do with the City now requiring liability and casualty insurance along with a security bond. Motion was made by Bill Fair, seconded by Blonigen, and unanimously carried to award a cleaning contract to the low bidder, Federal Maintenance and Cleaning,in the amount of $7,096.92 per year. Council Minutes - 4/13/87 12. Discussion on Proposed Legislation to Allow Sale of Wine in Grocery Stores. Administrator Eidem noted that the Municipal Liquor Store Association requested the City Council oppose recent legislation introduced that would allow for wine to be sold in grocery stores. It was noted that previously when this law was being considered by the legislature, the City had opposed the sale of wine in grocery stores, and the Association again recommended the City draft a letter in opposition. Motion was made by Blonigen, seconded by Bill Fair, and unanimously carried to authorize the City Administrator to draft a letter stating the City's opposition to the proposed legislation allowing for wine to be sold in grocery stores. 14. Cancellation of Recent Purchase Agreement on Former Fire Hall Site. Administrator Eidem noted that the City has received a cancellation request on the purchase agreement from Curt Markling for the purchase of the old fire hall building. It was noted that the primary reason for the purchase agreement being cancelled was that the developers did not feel they would be able to meet the parking requirements necessary for the proposed bar/restaurant proposal. Rick Wolfstel er Assistant Administrator -5-