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City Council Minutes 04-22-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 22, 1991 - 7:00 p.m. Members Present: Shirley Anderson, Dan Blonigen, Clint Herbst, Brad Fyle, Ken Maus Members Absent: None 2. Approval of minutes. John Simola requested that item #10 be amended to read that he reported that nine times during the year he needed the vehicle for emergency situations or in response to citizens' request for services. Not all responses were due to emergency situations. There being no further discussion regarding the meeting minutes, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the meeting minutes with item #10 amended as requested by John Simola. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. Assistant Administrator O'Neill reported that Joe Robinson had withdrawn the petition that he had organized. No further discussion on this matter was conducted. 4. Consideration of request for abatement of delinquent special assessments, Outlot A, Country Club Manor. City Administrator, Rick Wolfsteller, informed Council that at the present time the assessments against Outlot A, including interest and penalties at $550,000, now exceed the land value. Wolfsteller noted that none of the assessment payments have been paid since the original assessment of $231,.402 was levied in 1979. Wolfsteller reported that the County has assured the City that the property will be put up for tax delinquency, and this should be done sometime this year. In the interim, however, there is a proposal submitted to the City by West Prairie Partners which requests that the City abate all but $200,000 of the existing special assessment debt. In turn, West Prairie Partnership would develop 26 lots on the property, all of which would have direct driveway access to 7th Street. Under the proposal, the billboards existing along the freeway and on Country Club Manor would be allowed to exist. Page 1 Council Minutes - 4/22/91 Jim Metcalf was present to provide additional detail regarding the proposal by West Prairie Partners. Metcalf noted that the partnership is not interested in developing cul-de-sacs, as the houses must be located close to the freeway under the cul- de-sac proposal. Metcalf reported that his proposal includes a cash settlement of $200,000 as full payment for all special assessments against Outlot A. Dan Blonigen noted that the offer of $200,000 is not nearly adequate. The outlot would revert back to the City anyway, and the City could use a portion of it as a holding pond that is needed in the area. A general discussion regarding the staff's sketch plan for the development area ensued. Jim Metcalf again noted the cul-de- sac design would not be marketable, and the berm proposed to buffer the freeway from the single family housing does not benefit the property. Dan Blonigen reiterated that he would prefer that the City wait for the tax forfeiture process to acquire the land and then sell it to a developer at the market price. We are better off to wait and do it right. Ken Maus responded by saying that it may take two years to get the property, and we're likely to have the same deal. Does it make sense then to move forward now? After discussion, it was the consensus of Council to 1) take no action on the matter; 2) the planner should review the original concept and review the proposed concepts for single family development; 3 ) the City should encourage the County to finalize the foreclosure and keep the heat on. It was recognized that the City needs to lobby the County to take action on this matter; 4) City staff should talk to the Farm Home funding agency to see if the plat satisfies noise pollution standards; 5) the City Attorney should determine the City's rights and power with regard to removal of the billboards at the time of building construction, and Council should review its existing ordinance which currently calls for removal of billboards at the time of development of the land on which the billboard is located. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to table this matter until the research noted above is completed. Motion carried unanimously. Page 2 Council Minutes - 4/22/91 5. Consideration of adopting a resolution designating a minimum restricted fund balance in the general fund. Rick Wolfsteller requested that Council consider designating a certain portion of our general fund balance into additional categories labeled "working capital" and "contingency." Wolfsteller noted that the state legislature has noted concerns that the amount of unreserved fund balances that cities have may have accumulated to a point where the state legislature may take action to require that cities spend unreserved funds. Some individuals may see large fund balances and assume that a city government does not need any state assistance because they have unspent funds available. There has even been discussion recently that cities with large fund balances should maybe give some of its tax revenue to the state to help correct their budget problems; and as a result, it is suggested that the City establish in its audit report that certain funds are designated for certain purposes. Wolfsteller also noted that the City's existing "surplus" of $1,000,000 is not large when one takes into account that the City needs $750,000 before the first large tax revenue check is received in the early part of July. In other words, if we do not have a surplus fund balance at the end of the year, we would have to borrow money to operate until June of each year. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to approve a resolution which designates minimum restricted general fund balances. Motion carried unanimously. SEE RESOLUTION 91-9. 6. Consideration of extending probationary period/residency requirement --Rich Cline. John Simola reported that Rich Cline was transferred from the street department to the water/wastewater collection system department effective April 23, 1990. Due to the nature of his position, it was important that employees in the water/ wastewater collection system department be able to respond quickly to an emergency. In the wastewater department, the sewer water can back up quickly into basements. In the water department, emergencies can range from the inconvenience of 1) home; or 2) contamination or loss of water supply for the whole community. Since the water/wastewater collection operator is considered to be the first responder, it is a requirement of his/her position that he/she will reside within a 10 -minute response time to city emergencies. Consequently, Page 3 Council Minutes - 4/22/91 as part of the job description, both Rich Cline and the previous employee, Tony Strande, signed employee agreements which require residency within a 10 -minute response time. When Rich Cline was hired, he asked for an extension from the initial six-month period to a one-year period and indicated that he would relocate within a one-year period of time. Unfortunately, Rich has not been able to relocate within the time allowed by the City. Simola went on to note that Cline has been a good employee and is continuing to learn the workings of the water/wastewater collection system. Matt Theisen, the Water Superintendent, has continued to be the first responder for emergencies during this period when Rich Cline has not been able to relocate to the city. Simola informed Council that the staff recommendation is to grant an extension of three to six months to Rich Cline. It does not appear to be in the best interest of the City to modify its response requirements for this position. This condition must remain with the job description, not just the individual. Also, since the Council took such a firm stance on this same issue with Tony Strande, even though Council granted him a total extension of up to 21 months, removing this condition from the position at this time would leave the City open to litigation in the future. Matt Theisen requested that Council consider extending the response time requirement associated with the position. He went on to note that Rich Cline is doing an excellent job. He's getting to know the system well, and an additional few minutes would not have a significant negative impact on Cline's ability to respond on a timely basis to emergencies. Clint Herbst suggested that Council should stick with the guidelines. The 10 -minute response time is there for a reason. Brad Fyle concurred that at some point we have to draw the line on the response time. Dan Blonigen noted that a 10 -minute response time is reasonable and that it should be a requirement of the position. Former employee, Tony Strande, criticized the staff report for implying that he might take legal action against the City if Rich Cline's residency requirement is extended or eliminated. Shirley Anderson noted that the response time requirement should be job related and not subject to change due to the personality or abilities or convenience of the person that takes the job. Page 4 Council Minutes - 4/22/91 After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to grant a six-month extension of the residency requirement to Rich Cline provided he actively markets and attempts to sell his home. Motion carried unanimously. 7. Consideration of bills for the month of April. Motion was made by Shirley Anderson and seconded by Brad Fyle to approve payment of bills as submitted. Motion carried unanimously. 8. Other matters. Kevin Schmitz of Prestige Builders presented a letter to City Council which outlined his intent to build homes in the $100,000 to $150,000 range at Outlot I of the Meadow Oaks subdivision. Schmitz went on to review a sketch plan prepared for the site and also to provide general background on his company. Council members reviewed his plans and noted their support for his efforts. Assistant Administrator O'Neill reported that the preliminary plat outlining the detail of the development area is planned for presentation at the June 4 meeting of the Planning Commission. There being no further discussion, the meeting was adjourned. Jeff O'Neill Assistant Administrator Page 5