City Council Minutes 08-27-1990MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, August 27, 1990 - 7:00 p.m.
Members Present: Ken Maus, Fran Fair, Warren Smith, Shirley
Anderson, Dan Blonigen
Members Absent: None
2. Approval of Minutes.
Motion was made by Fran Fair, seconded by Shirley Anderson,
and unanimously carried to approve the minutes of the regular
meeting held August 13, 1990.
3. Citizens comments/petitions, requests, and complaints.
None forthcoming.
4. Consideration of Council proclamation proclaiming
September 9-15 as Local Cable Programming Week.
Mayor Maus read a proclamation outlining the benefits to the
community brought about by cable programming.
After the proclamation was read, a motion was made by Dan
Blonigen, seconded by Shirley Anderson, and unanimously
carried proclaiming September 9-15 as Local Cable Programming
Week.
5. Consideration of resolution approving plans and specifications
and authorizing advertisement for bids for the extension of
utilities to the Sandberg East development.
Staff informed Council that in order to keep the Sandberg East
project on schedule for the fall, the plans should be
officially approved. The plans were reviewed by City staff
during the week of August 20 and authorization was given to
have the first advertisement for bids placed in the
Construction Bulletin August 24, 1990. This project must be
advertised for three weeks, and the bids will be returnable by
Friday, September 14, 1990. The public hearing scheduled for
September 17, 1990, will allow the Council and affected
property owners a chance to review the actual construction bid
prices to determine whether we are still on schedule with our
estimates. If the project is still feasible at this point, a
contract could be awarded that evening allowing for
construction to occur this fall.
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Allen Rundle of Monticello Township was present to voice his
concerns on what he perceived to be the installation of City
utilities primarily in the township. Mr. Rundle was informed
by Mayor Maus that except for the Halliger property, the
utilities are not being extended into the township areas and
that all adjoining property owners are aware of the project
and have participated in the development of the project
finance plan.
Bob Krautbauer informed the Council that he is willing to
provide the easement along Highway 39 if the project utilities
follow this course; however, he is not willing to provide
utilities for both the Highway 39 route and the potential
alternate route which calls for utilities extending along the
eastern boundary of his property. Mayor Maus noted that it
may be imperative that the City obtain all the requested
easements, as the granting of the easements by Krautbauer to
the City is needed to justify the retroactive deferral of
assessments against the Krautbauer project associated with the
1988 County Road 39 project. Dan Blonigen noted that
Mr. Krautbauer, during previous discussions, had agreed to
provide the City with the easements the City requested in
exchange for a reduction in the assessments against the
Krautbauer property. If the easements are not going to be
provided by Mr. Krautbauer, then the City may have no
alternative but to maintain the assessments against the
Krautbauer property at the original level. As the discussion
came to a close, Mr. Krautbauer noted to the Council that he
will give the City the easements.
A motion was made by Fran Fair, seconded by Dan Blonigen, and
unanimously carried to approve plans and specifications and
authorize advertisements for bids for the extension of
utilities to the Sandberg East development.
SEE RESOLUTION 90-31.
6. Review of bids for garbage/refuse collection and hauling.
Administrator Wolfsteller reviewed the bids for garbage/refuse
collection and hauling. Wolfsteller recommended that the City
Council review these bids carefully and make a decision
regarding this item at a future Council meeting. The
following summarizes the low bids received for each method of
collection:
Method A: Utilizing a private contractor to pick up garbage
once per week using existing non -automated collection
technique. Low Bidder: Vasko, $93,564 annual cost.
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Method B: Utilizing a private contractor to pick up garbage
once per week using automated collection technique. Low
Bidder: Corrow Sanitation, $105,498 annual cost.
Method C: Utilizing City -operated service to pick up garbage
once per week using automated collection technique. City Bid:
$76,139 annual cost.
It was noted by Wolfsteller that the figures show that the
City can operate a garbage collection system cheaper than a
private operator. Wolfsteller went on to review the budget
outlining City expenses with automated garbage collection and
noted that he is comfortable that the numbers are conservative
and actually reflect what it would cost the City to operate
the automated garbage collection. Ken Maus asked if other
cities are doing their own hauling. Wolfsteller noted that
cities in northern Minnesota commonly provide garbage
collection service. Shirley Anderson asked why every city
isn't hauling garbage if it's cheaper for cities to do so.
Wolfsteller noted that before automation of garbage collection
was possible, the price for public employees to haul garbage
was more expensive because the strength of the unions tended
to control the method of garbage collection. It was difficult
to keep the cost of the public garbage hauling down because at
least two public employees manned each sanitation truck. With
automated garbage collection, however, the City is able to
limit the number of employees necessary to haul the garbage to
one per truck. In addition, the City bid is lower due to the
fact that there is no profit motive for the City. It was the
consensus of the Council to schedule this item for an upcoming
meeting for further review and discussion.
7. Consideration of ratifying union contract renewal.
Administrator Wolfsteller reviewed the amendments to the
previous contract and noted that the contract calls for a
salary increase in the neighborhood of 5% for the first year
and 4% in the second year of the two-year contract. Council
reviewed the following proposed changes to the existing labor
agreement:
1. Condition of groundskeeper/maintenance worker position to
the bargaining unit.
2. Requirement of three days advance notice rather than
seven days if the City changes any assignment of
regularly scheduled work hours.
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3. Clarification indicating that sick leave benefits would
only be paid to equalize the pay scale if he was
receiving health insurance disability benefits.
4. Reduction in the time period from 12 months to 6 months
when an employee could be placed on inactive status and
be discharged for medical reasons unless a certified
statement from a doctor is submitted indicating that the
employee would be able to resume duties within a
reasonable time period.
5. Increase City contribution toward health insurance
coverage by an additional $15 per month plus 50% of any
increase over the $15.
After discussion, a motion was made by Warren Smith, seconded
by Fran Fair, and unanimously carried to ratify the contract
as proposed.
Consideration of resolution adopting a proposed preliminary
1991 budget and setting a proposed tax levy.
Administrator Wolfsteller outlined the two options for
development of a preliminary 1991 budget. Wolfsteller noted
that the City could propose a levy of 10%; however, he went on
to note that a 10% increase is not justified given the
expected need for property tax revenue in 1991. Ken Maus
noted that the City does have the right to go for a 10%
increase and fall back to a lesser levy once the budget
process is complete; however, since it appears that the 10%
increase is not going to be necessary despite cutbacks in
federal and local aid, Maus proposed that the City establish
a preliminary levy of 7%. Dan Blonigen concurred that there
appears to be no significant reason to increase the
preliminary levy to 10%; therefore, he agreed that option two,
which proposes a 7% increase, is the better option.
Wolfsteller also noted that he anticipated that there should
be an increase in the other sources of revenue available to
the City outside the property tax revenue which would
eventually result in a reduction in the tax levy when the
final budget is adopted. As a result, Wolfsteller felt
comfortable that the City could develop a budget to meet the
tax levy proposed under a 7% increase; and, in fact, the final
budget would likely call for an increase of less than 7%.
After discussion, a motion was made by Dan Blonigen, seconded
by Shirley Anderson, and unanimously carried to adopt a
resolution setting a proposed tax levy of $2,752,778.
SEE RESOLUTION 90-32.
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9. Consideration of resolution approving 1991 MN/DOT transit
assistance application.
Assistant Administrator O'Neill informed Council that the
Monticello Transportation Advisory Committee requests that
Council review the 1991 transit assistance application and
consider approval of the resolution outlining the City's
commitment to pay 40% of operations cost and 20% of total
capital equipment cost. O'Neill noted that the transit
assistance application consists of management plan associated
budget and includes an assortment of compliance forms. He
went on to state that the application is very similar to the
application approved in 1990.
In reviewing the budget for 1991, O'Neill informed Council
that the ridership is at the expected levels; however, fare
revenue is not keeping pace because more people than expected
are obtaining reduced fares through purchase of the $25 ticket
books. This situation has created the need to increase the
City's portion of the budget from $16,000/year to
$19,000/year, which represents a 15% increase to the City's
share of the operations budget. It was the consensus of
Council that the Monticello Transportation Advisory Committee
should investigate strategy for increasing the fare revenues.
A motion was made by Shirley Anderson, seconded by Fran Fair,
and unanimously carried to adopt the resolution approving
Monticello's 1991 MN/DOT transportation assistance
application. SEE RESOLUTION 90-33.
10. Consideration of authorizing Monticello Heartland Express
(MHE) to begin service 1.5 hours earlier on a pilot program
basis.
O'Neill reminded Council that the transportation contract with
Hoglund Transportation requires that the City contract for a
minimum of 2,500 hours annually. In order to fully use the
minimum number of hours, the system must operate 10 hours per
day. The current program has been operating at a rate of 9.5
hours per day, which has allowed the Heartland Express to bank
enough service hours to allow the system to add 1.5 hours of
service to every day through the rest of the year. O'Neill
asked that the Council consider allowing those hours to be
placed at the front-end of the service day, thereby allowing
the City to evaluate to what extent the citizens will use the
bus to get to work.
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After discussion, it was the consensus of Council to direct
the Monticello Transportation Advisory Committee to adjust the
service hours in a manner that will make highest and best use
of available hours.
After discussion, a motion was made by Warren Smith, seconded
by Fran Fair, to authorize City staff and the Monticello
Transportation Advisory Committee to utilize available surplus
hours with the goal of scheduling surplus hours during times
that allow for the most cost efficient use of available
surplus hours. Motion carried unanimously.
11. Consideration of review and approval of Right of First Refusal
Agreement between the City of Monticello and the H -Window
Company.
011ie Koropchak informed the Council that Steve Lemme, General
Manager for the H -Window Company, informed her that NAWCO may
be considering an expansion of the development at some point
in the next two to three years. In order to accommodate this
expansion, NAWCO will need additional property, specifically,
Block 1, Lots 1, 2, or 3 of the Oakwood Industrial Park Second
Addition. This property is now owned by the City. Koropchak
asked Council if it would consider entering into a Right of
First Refusal Agreement between the City of Monticello and the
H -Window Company, thereby protecting the H -Window Company's
ability to purchase this land.
After discussion, a motion was made by Shirley Anderson,
seconded by Warren Smith, and unanimously carried to enter
into a Right of First Refusal Agreement between the City of
Monticello and the H -Window Company.
12. Consideration of counter-offer on purchase agreement for
property adjacent to city hall.
Rick Wolfsteller noted that at the last Council meeting
authorization was granted to the staff to prepare a purchase
agreement offering $50,000 for the purchase of a 122' x 165'
residential parcel adjacent to the city hall property.
Wolfsteller noted that the bank made a counter-offer of
$53,000. Council reviewed this matter and elected to take no
action; therefore, the latest proposal of $50,000 per previous
Council action stands.
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13. Consideration of garbage/refuse ordinance amendment.
Administrator Wolfsteller informed Council that our current
ordinance relating to garbage/refuse service rates was
established in 1989. As a result of our recycling program,
the ordinance established a service charge similar to the
penalty system in effect for sewer and water billings, which
indicated a penalty of $1.00 plus 1% per month would be added
to the billing for those property owners who receive just a
special processing fee billing if they did not recycle.
Wolfsteller went on to note that with our recent conversion to
the Business Records Corporation (BRC) utility system, the
present system of adding a $1.00 base charge plus 1% per month
for unpaid delinquent bill is very cumbersome to maintain on
our new system. Therefore, Wolfsteller recommended that the
City utilize a basic flat fee or percentage of the unpaid bill
as a penalty which would accomplish the same goal and be less
cumbersome.
After discussion, a motion was made by Shirley Anderson,
seconded by Dan Blonigen, and unanimously carried to adopt the
ordinance amendment as proposed eliminating the specific of a
$1.00 charge plus 1% per month and replacing it with a charge
of 4%, which will be added to the amount due on any bill if
not paid within 30 days after the billing date.
SEE ORDINANCE AMENDMENT NO. 195.
14. Consideration of bills for the month of August.
A motion was made by Warren Smith, and seconded by Shirley
Anderson, to approve the bills as submitted. Motion carried
unanimously.
Jeff 'O'Neill
Assistant Administrator
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