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City Council Minutes 09-17-1990MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, September 17, 1990 - 7:00 p.m. Members Present: Fran Fair, Ken Maus, Warren Smith Members Absent: Shirley Anderson, Dan Blonigen 2. Public hearing on Sandberg East improvement, Project 90-04. AND 3. Consideration of resolution ordering improvement, accepting bid, and authorizing contract --Sandberg East. Mayor Maus opened the public hearing and noted that due to the absence of two Council members, formal consideration of this matter cannot occur until at least four members of the Council are present. Assistant Administrator O'Neill updated Council on strategies for financing the project. Before outlining the strategies, he noted that staff recommends that Council order the project based on the fact that it has been demonstrated that it's feasible to serve the area with city sewer and water and that allowing private sewer and water systems to develop does not appear to be an option. In addition, waiting until spring to conduct the project eliminates the possibility of home construction this fall and could result in significantly higher construction bid prices. Finally, the low bid is acceptable, and the cost to rebid the project in the spring will add $1,500 to the total project cost. O'Neill also informed Council that John Sandberg requests that Council consider establishing a fixed assessment amount prior to actual completion of the project, which would allow transactions to occur with various landowners and builders, thereby allowing home construction to occur in the fall of 1990. Under this scenerio, the fixed amount for the 17 -lot assessment would be established at $92,000. If Council is willing to establish a fixed assessment prior to completion of the project, the following are terms and conditions that might be appropriate: 1. The City of Monticello will spread the total assessment of $92,000 against five of the lots created with replatting of the Sandberg East subdivision. 2. At such time that the assessment against any of the five lots becomes delinquent, the City has the right to foreclose immediately on the lot with the delinquent assessment. Page 1 Special Council Minutes - 9/17/90 3. John Sandberg agrees to plat the Sandberg East subdivision in a manner consistent with the preliminary plat recently approved. 4. The $92,000 assessment includes assessments associated with the parcel owned by the Nelson household. 5. The rear portion of the Sandberg East lot is intended for sale to Norell; and if not purchased by Norell, it shall be platted as a single outlot and shall not be sold to individual property owners purchasing replatted Sandberg East lots. 6. A document shall be recorded against each of the five lots carrying the assessment stating that property owner will not challenge the assessment using the argument that the property has not increased in value equal to the assessment. John Sandberg noted that he can abide by the terms associated with establishing a fixed assessment prior to completion of the project with one exception. He noted that item #5 requires cooperation from other property owners affected by the development. He noted he could not guarantee that adjoining property owners would buy remnant land created with the replatting of the Sandberg East subdivision. After discussion, motion was made by Fran Fair, seconded by Warren Smith, to continue the public hearing to 7:00 a.m., October 18, 1990. Motion carried unanimously. 4. Consideration of resolutions authorizing the sale of bonds for TIF District 1-9 (Tapper's, Inc.), TIF District 1-10 (Remmele Engineering), and Project 90-04, extension of sewer and water to Sandberg East development. Catherine Polta of Springsted reviewed the financing proposals for all three projects. She noted that the tax increment district will generate sufficient revenue to cover both the Tapper's and Remmele bond issue. The financing necessary for the East County Road 39 project would total $265,000 based on our estimated cost of this project. This bond issue has been structured using certain assumptions anticipating that a portion would be assessable to Mr. Krautbauer and the Joanne Halliger property and such assessments may not be collectable immediately. Wolfsteller noted that because only three Council members are present, the Council cannot act on the bond issue financing the Sandberg East development; however, Council may act on the resolutions authorizing the sale of bonds for TIF District 1-9 and TIF District 1-10. Page 2 Special Council Minutes - 9/17/90 After discussion, motion was made by Warren Smith, seconded by Fran Fair, to approve a resolution authorizing the sale of bonds for TIF District 1-9, Tapper's, Inc., and TIF District 1-10, Remmele Engineering. Motion carried unanimously. SEE RESOLUTION 90-34. 5. Consideration of planting boulevard trees on 7th Street between Minnesota and Walnut Streets and the placement of a high railing on the south retaining wall near Kmart and the Monticello Mall. City staff requested that Council consider authorizing the planting of boulevard trees along 7th Street between Minnesota Street and Walnut Street. The trees would be located approximately 4-1/2 feet behind the curb and 4-1/2 feet from the existing sidewalk. Staff proposed a mix of Maple, Linden, Ash, and Hackberry. A total of 48 trees at 50 -foot spacing appears to be most appropriate according to staff. Staff proposed purchase of 34, 2 -inch trees for 7th Street to be planted by the public works department utilizing our own tree spade. Roger Mack has obtained two quotes for the trees. The lowest bid price was obtained from Noble Nurseries of Maple Grove at $2,699.80. In addition, staff proposed development of a railing along that portion of the retaining wall that is higher than two feet. The railing is needed to limit the possibility of falls from the retaining wall. Simola went on to note that the project will come in under budget even with installation of railing and trees. Warren Smith noted that the boulevard tree plantings are a nice idea. Fran Fair concurred. Motion was made by Fran Fair, seconded by Warren Smith, to authorize staff to purchase boulevard trees and to direct staff to install railing along the southern retaining wall near Kmart and the Monticello Mall. Motion carried unanimously. There being no further discussion, the meeting was adjourned. Jef Neill Assistant Administrator Page 3