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City Council Minutes 12-09-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, December 9, 1991 - 7:00 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Dan Blonigen Members Absent: None 2. Approval of minutes. A motion was made by Brad Fyle and seconded by Shirley Anderson to approve the minutes of the regular meeting held November 25, 1991, as submitted. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Consideration of a resolution designating the municipal state aid street system for the city of Monticello. AND 5. Consideration of a motion to accept CSAH 58 and 59 from Wright CountV. Jeff O'Neill reported that in order for the City to qualify for $170,000 in state aid to highways funding, the City Council must pass a resolution designating a municipal state aid street system for the city of Monticello. Bret Weiss reviewed the MSA street system as proposed. John Simola reported that since our municipal state aid system incorporates two county state aid roads, CSAH 58 and 59, which are actually parts of Locust, 4th Street, Walnut, and 7th Street, the Council must accept these streets from the County by a motion. Dan Blonigen asked if the City is taking on added street mileage. Bret Weiss reported that we are taking on added mileage; however, we are getting reimbursed for the expense associated with maintaining the streets added to the city system. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to adopt a resolution designating a municipal state aid street system for the city of Monticello and to accept County State Aid Highway 58 and 59 from Wright County into the Monticello Municipal State Aid system. SEE RESOLUTION 91-39. Page 1 Do 7. Council Minutes - 12/9/91 Consideration of continuing participation in the Chamber's "Monticello --Your Kind of Place" promotion. 011ie Koropchak informed Council that the Chamber of Commerce has requested that the City of Monticello continue to participate in the "Monticello --Your Kind of Place" program by contributing $4,000 to the program marketing efforts. She noted that the committee's promotional efforts have so far created a great deal of awareness of Monticello. Efforts include development of a lighted billboard along Interstate 94, city banners, mailing pieces, a magazine, and logo buttons, t -shirts, etc. She noted that the $4,000 contribution would be combined with contributions made by other businesses to be used to continue the programs initiated in 1991. It is also possible that the funds would be used to conduct a professional marketing study that would encompass the entire city business sectors. Dan Blonigen noted that the "Monticello --Your Kind of Place" program is strictly business advertising. He did not believe that we should be using taxpayer's money to help business advertise. Assistant Administrator O'Neill noted that previous City participation consisted of paying a portion of the cost to install the "Your Kind of Place" banners. In addition, the City has been contributing by installing and replacing banners when they are damaged. Dan Blonigen noted that he does not have a problem with City participation by replacing damaged banners. Clint Herbst stated that the City is also working with the Chamber by working cooperatively toward refurbishing of the building that will be used by the Chamber of Commerce. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to continue to support the "Monticello --Your Kind of Place" program by providing maintenance to the "Your Kind of Place" banner system. Participation does not include the purchase of new banners. Motion passed unanimously. Consideration of retainage reduction on Projects 91-01, Fallon Avenue; 91-02, Briar Oakes Estate; and 91-03, Cardinal Hills. John Simola reported that LaTour Construction of Maple Lake has agreed to hold current prices on all of the projects and complete the work as soon as weather conditions permit in 1992. Because of this and the fact that the contractor was $90,000 lower than any other bid on this project, LaTour Construction would like some consideration in reducing the Page 2 E1 Council Minutes - 12/9/91 retainage held on the project. The current retainage being held is 5% of the work completed on all of the projects, or $20,624. City staff requests that Council consider reducing the retainage from 5% to 2.5%. This would drop the retainage to $10,312.46 with approximately $100,000 of the work left. This gives the City a 10% cushion for the remaining work. In addition, we still have performance bonds for all of the work, so the City is not at risk. Simola reported that this request is reasonable considering the fact that the contractor may not have had sufficient time to complete all of the work in the time allowed due to delays beyond his control associated with the grading of the Briar Oakes project. Simola recommended that the City Council reduce the retainage on the three projects to 2.5%. The City has an excellent working relationship with LaTour Construction. LaTour has performed well on the project and has guaranteed his prices until next spring. The reduction in retainage does not increase the risk of not completing the projects and actually demonstrates our willingness to be cooperative with contractors on completing projects. Brad Fyle noted that LaTour has worked in town before, and he supports maintaining a good working relationship with LaTour. It was his view that the unique situation associated with the early winter storm and the problems and delays associated with the Briar Oakes development make this situation unique; therefore, he supports reducing the retainage to 2.5%. Dan Blonigen agreed that LaTour has worked well with the City in the past, and the situation merits a reduction in the retainage. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to reduce the retainage on Projects 91-01, 91-02, and 91-03 from 5% to 2.5% upon completion of the lift station. The reduction is deemed acceptable due to the unexpected experience of delays associated with the Briar Oakes development and due to the early winter snow storm that shortened the 1991 construction season. Motion carried unanimously. _Consideration of authorizing purchase of replacement furnace for Senior Citizen Center building. The City Council reviewed quotations from B & D Plumbing and Custom Sheet Metal for replacement of the furnace for the Senior Citizen Center building. Rick Wolfsteller reported that the quotation received from Custom Sheet Metal was for a 120,000 BTU furnace with 80% efficiency at a cost of $2,300. Custom Sheet Metal proposed a 4 -ton air conditioning unit at $2,225, including wiring, for Page 3 Council Minutes - 12/9/91 a total cost of $4,525. Wolfsteller reported that quotations from each contractor included different ideas on the heating requirements of the building. Council reviewed the approaches submitted by the two firms that provided quotes. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to authorize City staff to re -bid the project using a design most acceptable to the City Engineer and award the project under the condition that the cost does not exceed $2,900. In addition, if air conditioning is included, staff should obtain a letter of intent from the Senior Center indicating that the Senior Center will pay added costs associated with installing air conditioning. Motion carried unanimously. 9. _Public Hearing --Consideration of vacating a 12 -foot section of the 20 -foot easement along the northern boundary of Lot 1, Block 1, Sandberg East. Applicant, Clint Herbst. Mayor Ken Maus opened the public hearing. O'Neill informed Council that on October 15, 1991, the City Council acted to vacate a portion of the drainage and utility easement along the northern boundary of Lot 1, Block 1, Sandberg East, contingent on acquisition of an additional 10 - foot easement along the southern boundary of nearby Lot 2, Block 1, Sandberg East subdivision. Acquisition of the additional easement area in exchange for the easement vacation was seen as necessary in order to preserve one of the potential routes for the Meadow Oak storm sewer outlet. It was expected that the party (Rod Norell) that sold Lot 1, Block 1, to Herbst, who is also the owner of Lot 2, Block 1, would be willing to grant the easement rights as requested. The item is before Council because Norell did not desire to grant the easement area in exchange for the easement vacation requested by Herbst. In response to the situation, a new proposal for vacating a smaller portion of the 20 -foot easement has been prepared. Instead of vacating a 14 -foot easement area and requiring an easement in exchange, the City Council is asked to consider vacating a 12 -foot easement area without any easement exchange. Under this alternative, the 20 -foot drainage and utility easement will exist between the Herbst property and the property to the north. According to the City Engineer and the Public Works Director, the 20 -foot easement area will be sufficient for construction of the potential storm sewer that might need to be installed along this property line. Page 4 Council Minutes - 12/9/91 Dan Blonigen concurred that it would be very unlikely that there would be any problem with a storm sewer installation if a 20 -foot easement is available. Ken Maus closed the public hearing. After discussion, a motion was made by Dan Blonigen and seconded by Brad Fyle to adopt a resolution vacating a portion of the drainage and utility easement along the northern border of Lot 1, Block 1, Sandberg East. Voting in favor of the motion: Dan Blonigen, Ken Maus, Shirley Anderson, Brad Fyle. Abstaining: Clint Herbst. SEE RESOLUTION 91-40. 10. Consideration of establishing a salary administration program and salary schedules for City employees and adjustments to the salary schedules for 1992. Rick Wolfsteller reported that at the special meeting of the Council Thursday evening, Council was presented with a personnel services report prepared by the League of Minnesota Cities' staff that addressed the development of new job descriptions for all new employees, a job evaluation system for each class, along with a recommended plan for placement of employees into a salary schedule system that utilizes a step program. After presentation of the report, Council adopted the new job descriptions as presented, authorized creation of the Office Manager position, and established a method for employees to appeal their job evaluation results. Items that need to be addressed at this meeting include 1) establishment of a salary schedule for each class and grade along with adoption of the salary administration program which outlines the method for individuals to move within the grades; 2 ) upon adoption of the salary schedule, the initial placement of employees into the appropriate step based upon their job evaluation and resulting grade; and 3) consideration of a 1992 cost of living adjustment for salary schedules. Council discussed the salary administration program. Ken Maus noted that one of the dangers of a defined step program is that unless you can demonstrate why an employee shouldn't get a step increase, they usually get it. He noted a positive aspect of it is that although there is potential for higher steps, we have better justification for starting staff at a lower starting pay. Clint Herbst asked how unfair administration of this program might affect our comparable worth compliance. Rick Wolfsteller noted that the step system is designed to allow all employees, regardless of sex, to advance at the same rate. Page 5 Council Minutes - 12/9/91 He noted that if female employees were consistently denied advancement, then the program would fail to comply with comparable worth standards. Brad Fyle noted that the League of Minnesota Cities provided the personnel report and pay equity program as requested. They are an independent organization and were requested to design a program to meet the City's needs. It was Fyle' s view that the program is acceptable and should be adopted. Council reviewed the step system. It was noted by Mayor Maus that the seven -step system was based on market data from the metropolitan area and the rural communities. The market data was weighted toward the metro area because the city of Monticello is more similar to the metro area communities than to the outstate communities. Maus did not necessarily agree that this is the proper formula that should be used to establish the Monticello step system. Dan Blonigen suggested that the City develop six steps instead of seven by simply eliminating the top step. John Simola suggested that removal of step seven could cause staff morale to suffer. After continued discussion, the meeting was recessed. Council reconvened. Ken Maus polled the Council regarding the step system. Shirley Anderson, Brad Fyle, and Clint Herbst agreed that step seven should be dropped from the system. Clint Herbst stated that step seven could be removed at this time; however, it could always be added at some time in the future. After discussion, a motion was made by Dan Blonigen and seconded by Brad Fyle to adopt the pay equity pay step system and ranges outlined in Exhibit C with the exclusion of step seven based on the finding that six steps are more appropriate given the market conditions in Monticello. Motion carried unanimously. Ken Maus then asked Council to consider making a motion to move employees to the next highest step from their existing salary. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to move employees to their next highest immediate step from their existing salary. Voting in favor: Dan Blonigen, Clint Herbst, Brad Fyle, Ken Maus, Opposed: Shirley Anderson. Page 6 Council Minutes - 12/9/91 Council discussed cost of living increases. It was noted by Wolfsteller that in most other cities cost of living increases have been 2% to 4%. The Kiplinger letter noted that the cost of living index shows an increase of 3.4%. After discussion, a motion was made by Brad Fyle and seconded by Ken Maus to approve a cost of living increase of 3%. Voting in favor of the motion: Shirley Anderson, Brad Fyle, Ken Maus. Opposed: Dan Blonigen and Clint Herbst. 11. Consideration of bills for the last part of November and first part of December. A motion was made by Dan Blonigen and seconded by Brad Fyle to approve payment of the bills as submitted. Motion carried unanimously. 12. Other matters. Ken Maus requested that 011ie Koropchak provide City Council with a packet of information on IDC goals. John Simola reported that Polka Dot recycling company has ceased its operation and the City must quickly contract with another recycling company. He noted that the bonding company associated with the Polka Dot contract will pay any difference in cost between what we would have paid Polka Dot and a new provider; therefore, there will be no cost increases to the program in the short term. City staff will be moving forward to find a new recycling company. There being no further discussion, the meeting was adjourned. Je` 'Neill Assistant Administrator Page 7