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City Council Agenda Packet 02-12-2007 AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, February 12, 2007 - 7 p.m. REMINDER: Special meeting is scheduled for 5;30 p.m. on February 12, 2007 Mayor: Clint Herbst Council Members: Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski 1. Call to Order and Pledge of Allegiance 2A. Approve minutes of January 222007 regular Council Meeting 28. Approve minutes of February 5, 2007 special Council Meeting. 3. Consideration of adding items to the agenda. 4. Citizen comments, petitions, requests and concerns. 5. Consent Agenda: A. Consideration of ratifying hires and departures. B. Consideration of approving request for temporary liquor license for wine-tasting event. C. Consideration of adopting resolution in opposition to legislation to allow sale of wine in grocery stores. D. Consideration of approving a request for a simple subdivision in an 1-2 (Heavy Industrial) District. Applicant: Steve Birkeland E. Consideration of approving a request for a conditional use permit for a Comprehensive Sign Plan for a retail strip center in a B-3 (Highway Business) District. Applicant: Miller Architects and Builders. F. REMOVED FROM AGENDA G. Consideration of authorization to conduct market study for development of a second liquor store. H. REMOVED FROM AGENDA I. Consideration of bids for used 936 Cat loader and consideration of award of sale. 1 Agenda Monticello City Council February 12, 2006 Page 2 J. Consideration of approval of additional year end fund transfer. K. Consideration of approving appointment to Community Center Advisory Board. L. Consideration of approving bond counsel for proposed city broadband project. 6. Consideration of items removed from the consent agenda for discussion. 7. Public Hearing on revenue stabilization agreement with Xcel Energy/NSP. 8. Public Hearing on Chelsea Road Improvements from CSAH 18 to Fallon Avenue, Project No. 2006-31 C and consideration of ordering project. 9. Approve payment of bills for February. 10. Adjourn. 2 Council Minutes: 1122/07 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, January 22, 2007 -7 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski Members Absent: None 1. Call to Order and Pledee of Alleeiance Mayor Herbst called the meeting to order and declared a quorum present. The Pledge of Allegiance was said. 2A. Approve minutes of Januarv 8. 2007 Special Council Meetine BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE JANUARY 8, 2007 SPECIAL COUNCIL MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of Januarv 8. 2007 ReeuIar Council Meetine: Torn Perrault asked that the following be added to item #8 relating to the grant application for pedestrian underpasses, "The Transportation Enhancement (TE) program is part of the federal grant program that was continued in 2005 with the passage of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A legacy for Users (SAFETEA-LU)." TOM PERRAULT MOVED TO APPROVE THE MINUTES OF THE JANUARY 8, 2007 REGULAR COUNCIL MEETING WITH THE ADDITION NOTED. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of addine: items to the ae:enda. City Administrator, Jeff O'Neill added scheduling a workskhop to review possible amendments to the nuisance ordinance and enforcement procedures for blights/nuisances. 4. Citizen comments. petitions. requests and concerns. Art Doran representing the American Legion was present at the Council meeting to request a public hearing for an ordinance amendment to the sign ordinance regulating off-premise directional signs for the American Legion Club. He stated because of their location there is a need for directional signs. Clint Herbst stated he was under the impression they were getting two off-premise directional signs. Jeff O'Neill said the code does not allow off-premise directional signs for this type of use. A text amendment would be needed to include directional signs for quasi-public institutions. For this change to occur a zoning ordinance amendment would have to be approved which would require a public hearing. The request for an ordinance amendment could be initiated by the City Council, Planning Commission or the property owner. 1 3 Council Minutes: 1/22/07 CLINT HERBST MOVED TO CALL FOR A PUBLIC HEARING FOR A TEXT AMENDMENT TO THE ZONING ORDINANCE RELATING TO OFF-PREMISE DIRECTIONAL SIGNS TO BE HELD AT THE MARCH PLANNING COMMISSION MEETING. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED WITH WAYNE MAYER VOTING IN OPPOSITION. Mike Holker from 537 East Broadway came before the Council regarding the speed of traffic on Broadway. He also noted concern about the safety of pedestrians, especially students crossing Broadway. He felt the vehicle speeds in the area are in excess of 45 miles per hour. Clint Herbst noted that speeding is a problem throughout the City. He suggested that it be made known to the Sheriffs Department that the City wants the speeders tagged. Brian Stumpf suggested that in addition to requesting additional enforcement from the Sheriff's Department that the City request the speed trailer be placed on Broadway again. Wayne Mayer suggested that when this comes before Police Commission they consider looking at the possibility of purchasing a speed trailer so the City has one on hand instead of waiting until the County's is available. Mike Holker stated he would like to be notified of the next Police Commission meeting. 5. Consent A2:enda: A. Consideration of ratifying hires and departures Parks, MCC and DMV. Recommendation: Ratify the hires and departures as identified. 8. Consideration of setting 2007 Board of Review for Monday, April 30, 2007 at 7 p.m. Recommendation: Set Monday, April 30, 2007 at 7 p.m. for the 2007 Board of Review. C. Consideration of approving payment to Resurrection Lutheran Church for a permanent easement for the CSAH 18 roundabout at Meadow Oak Avenue, City Project #2004-1 C. Recommendation: Approve payment to Resurrection Lutheran Church in the amount of $3,015.00 for a permanent easement for the CSAH 18 roundabout at Meadow Oak Avenue. D. Consideration of approving an amendment to the Monticello Zoning Ordinance, Section 3-3[F] regulating front yard setback averaging. Applicant: City of Monticello. Recommendation: Adopt an ordinance amendment deleting provision [F] from Section 3-3 of the Zoning Ordinance regulating front yard setback averaging. E. Consideration of approving Wright County Highway Maintenance Agreement for 2007. Recommendation: Approve the 2007 Maintenance Agreement with Wright County as proposed with the understanding that Wright County will be sweeping the curb portions ofCSAH 75 and the median along with the curb portions ofCSAH 39. 2 4 Council Minutes: 1/22/07 F. Consideration of a request to amend City Ordinance Title lII, Chapter 2, Section 7 relating to on-sale liquor licenses for restaurants. Recommendation: Adopt an ordinance amendment for Title III, Chapter 2, Section 7 amending the seating capacity requirement for a restaurant to hold an on-sale intoxicating liquor license. G. MOVED TO REGULAR AGENDA. H. Consideration of authorizing designated personnel to handle City investments. Recommendation: Designate the Finance Director and Senior Accountant as authorized signers on all investment transactions for the City. 1. MOVED TO REGULAR AGENDA J. Consideration of final payment for demolition and asbestos abatement at the Monte Club site. Recommendation: Authorize final payment to Veit and Company in the amount of $36,074.45 pending receipt from Veit and Company of the final Contractor's Withholding Affidavit and Lien Waivers. Items #50 and #5F were pulled from the consent agenda. TOM PERRAULT MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOV AL OF ITEMS #5D AND #5F. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent aeenda for discussion. #5D Amendment to the Monticello Zoning Ordinance, Section 3-3[F] regulating front yard setback averaging: Wayne Mayer questioned the way this was presented in the agenda packet. He felt the intent of the ordinance was to prevent the blocking of sight lines between two structures. He felt the setback averaging would only relate to the adjacent property. Steve Grittman said the concern was the application of the ordinance as written. Steve Grittman said where somebody builds on the lot could leave another home as a non- conforming structure. He noted that the Planning Commission didn't want to adopt the overlay district that was proposed. The ordinance as written applies to everything in the R-I designation even though it was originally intended to apply to properties along River Street. Since the lots along River Street are deep, most of the homes built along River Street exceed the minimum setback of 30 feet. Allowing homes to be constructed meeting the minimum setback requirements could result in staggering of the homes that would be severe. Steve Grittman explained the overlay district would have a 50' setback and would cover the area designated by the Council. The concern was not with the homes that are sitting further back on the lots but those that would be built that meet the minimum front yard setback and thereby end up closer to the street. Wayne Mayer stated he was leery ofremoving the verbiage without some kind oflanguage in place the to protect the residents. Steve Grittman said that was why they proposed an overlay district. Wayne Mayer said he didn't get a chance to view the tape of the December 5, 2006 Planning Commission meeting so he doesn't know how this item was presented. The 3 5 Council Minutes: 1/22/07 Planning Commission didn't favor the overlay district as they felt it would just add another layer of review. Susie Wojchouski asked why this issue came forward. Steve Grittman said the question carne up with the proposed construction of a home in a subdivision. Wayne Mayer didn't feel the language should be stricken until there is something more concrete in place than what was presented. Steve Grittman suggested an overlay district as an alternative to setback averaging. Wayne Mayer said he didn't like to strike the existing language not knowing if there is another location that could be adversely affected by the proposed ordinance amendment. Wayne Mayer didn't feel the residents were aware of the implications of the proposed amendment. Steve Grittman said in order to adopt the overlay district the residents would have to be re-notified. WAYNE MAYER MOVED TO TABLE THIS ITEM AND CALL FOR A PUBLIC HEARING ON THE OVERLAY DISTRICT WITH SOME STANDARDS TO BE COVERED AT THE PUBLIC MEETING. TOM PERRAULT SECONDED THE MOTION. MOTTON CARRIED UNANIMOUSLY. #5F Request to amend City Ordinance Title Ill, Chapter 2, Section 7 relating to on-sale liquor licenses for restaurants: Wayne Mayer noted that a number of different license approvals had been granted to this site and he hoped the amendment to the ordinance would meet the needs of the applicant. Clint Herbst felt there should be a seating capacity requirement and Torn Perrault suggested going with a seating capacity of 50 people. WAYNE MAYER MOVED TO AMEND TITLE III, CHAPTER, SECTION 7 RELATING TO SEATING CAPACITY FOR RESTAURANTS FOR AN ON-SALE LIQUOR LICENSE BY SETTING THE SEATING CAPACITY REQUIREMENT AT 50 SEATS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Public Hearin2: on adoptin2: assessment for delinauent utilities for 3rd auarter 2006 and certifyin2: assessment to County Auditor. The public hearing was for the adoption of the delinquent utility accounts for the 3rtJ quarter of 2006. There was some discussion on the number of delinquent accounts and why the amounts were fairly low. It was explained that after the due date a 10% penalty is applied to the unpaid amount. Payment that comes in after the due date with the original amount of the utility bill would leave the penalty amount as the delinquent amount. It was noted that those delinquent accounts are given mailed notice ofthe public hearing and have an opportunity to pay their delinquent amounts prior to Council adoption ofthe delinquent assessments. Mayor Herbst opened the public hearing. There was no one present to speak for or against the proposed assessment. Mayor Herbst then closed the public hearing. BRIAN STUMPF MOVED TO ADOPT THE ASSESSMENT ROLL FOR THE DELINQUENT CHARGES AS PRESENTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 4 6 Council Minutes: 1/22/07 8. Consideration of acce hearin2. Shibani Bisson from WSB & Associates, Inc. stated normally this would have been a consent agenda item with the formal presentation on the project being made at the public hearing. She stated they have met with the property owners affected by this project and comments from the property owners are included with the agenda item. She noted that the realignment of the intersection of Fallon Avenue and Chelsea was included in the project as an alternate. She stated this project was initiated as part ofthe interchange project. Chelsea Road was not improved at that time because it was used as a detour route during the interchange construction. She noted there was an agreement with Monticello Industrial Park which calls for this project to be constructed in 2007. The project would construct the street to urban design with curb, gutter, storm sewer, street lighting on both sides of the street and a sidewalk on the north side of the street. The total project cost is estimated $3,700,000 including the intersection alignment. Assessments would cover $1,600,000 of the cost and the City would contribute $2, I 00,000. Clint Herbst said the City has put together a street lighting program so he didn't know why street lighting was included as part of the project. Shibani Bisson responded that this was included so it could be addressed at the public hearing. John Simola indicated that a franchise agreement with Xcel has not been established yet Another concern was the location of the pathway. Clint Herbst felt the School Boulevard pathway should be the main pathway in the area and had concerns about directing pedestrian traffic along Chelsea Road. Torn Perrault asked why improvements had not been made to Fallon Avenue. Shibani Bisson stated that a trunk sanitary sewer is required in this area. It would be better economically to delay Fallon Avenue improvements until development was there to pick up some of the cost. Shibani Bisson said the intent was to improve the intersection so that the overpass could be constructed at some future date without having to close down the intersection. Fallon Avenue would be used to avoid the TH 25 and CSAH 18 traffic. Jeff O'Neill talked about the pathway stating the pathway in this area was in the plans for some time. The pathway is going to provide access for pedestrians going across the freeway. Jeff O'Neill said there would be a lot of high speed traffic on Chelsea Road and the pathway would provide for pedestrian safety. Clint Herbst said there is the issue of maintenance of the pathway adding that right now there is nothing out there that pedestrian traffic would be going to. Brian Stumpf agreed and stated in the future there may be pathway funds and/or grant funds available to construct the pathway at that time. It was also felt that because this is a business area the City shouldn't be encouraging pedestrian traffic through the area. Brad and Mary Barger and Bill Tapper spoke to the Council about the project noting their main concern was the high cost of the project. Other issues of concern for them were the 5 7 Council Minutes: 1/22/07 pathway. They felt a pathway along Fallon Avenue was needed more because it would direct traffic to School Boulevard. It didn't make sense to have a pathway along Chelsea Road because it would lead no place. They also questioned if curb and gutter was important on Fallon Avenue why wasn't it being extended all the way along Fallon Avenue. Brad Barger said it appears the driving force for this project was some future development. Clint Herbst asked why the curb and gutter didn't carryall the way through to Edmonson Avenue. Shibani Bisson said it was included as an option. Right now the agreement with Monticello Industrial Park only calls for it to go to Fallon Avenue. Mary Barger asked how there could be an agreement with Monticello Industrial Park when the rest of the property owners were not notified. Shibani Bisson said the agreement was developed as part of the interchange project. The Monticello Industrial Park parcels will be paying for the project when they are developed. Monticello Industrial Park is paying for costs related to the interchange project while other properties along Chelsea Road were not assessed for the interchange. Brad Barger felt that development was driving these improvements and that other properties were being pulled into the project. Brad Barger stated the worse road in town is Fallon Avenue not Chelsea Road. He didn't feel the property owners were that concerned about the condition of Chelsea Road. Jeff O'Neill asked about the deep trunk line that needs to go in on Fallon Avenue. He felt it would be premature to put the sewer line in and fix the road before development is there. Brian Stumpf suggested that the trunk line might generate some development. Jeff O'Neill suggested that there may be some interim steps to improve Fallon Avenue without putting in the sanitary sewer trunk line. Brad Barger asked about the increased trunk fee. Shibani Bisson said the trunk fee covers downstream improvements. The line in front of the property would be a lateral assessment. The trunk fee is for ponding and outlet pipe for the watershed district. Clint Herbst asked about rural -vs- urban roadways questioning whether you could put in the roadway and curb and gutter without putting in the storm sewer. Shibani Bisson said the ditches on the property will not be able to accommodate the runoff. Shibani Bisson is of the understanding that the road was meant to include curb and gutter. Mary Barger said when the property develops is when the improvements should be paid for. Brad Barger asked the Council to consider the cost. He suggested extending the term of the assessment, spreading the assessment over a larger area and look at ways of reducing the cost. Bill Tapper felt an asset should be used as long as benefit can be derived from it. For that reason he doesn't want to see reconstruction of Chelsea Road as he felt the street still had useful life. Clint Herbst would like to see the feasibility report corne through with the pathway and street lighting removed. Shibani Bisson said they would look at the stornl sewer costs and see if there are ways to reduce it. Shibani Bisson noted that Bill Tapper's property does not drain significantly to the street so their storm sewer assessment would be minimal. Tom Perrault asked about the water going toward the reservoir site and Well #3. He was concerned with water heading in that direction instead of it going to the east. Wayne Mayer asked if additional land was needed for ponding. Shibani Bisson said they are looking at an additional 40' easement from WSI. Alternative ponding solutions may reduce the amount ofponding needed. Jeff 0 'Neill asked about the lighting plan if it was determined how the surcharge fee 6 8 Council Minutes: 1/22/07 funds would be used. Would the surcharge fee be used only to retrofit existing lights or for both existing and new lights. Although the surcharge would not cover the total cost of the street lights, he felt this surcharge fee could be used to reduce the assessment amount. If it is new development the lighting cost can be added to the price of land but with retrofitting is more difficult to recover the cost. Susie W oj chou ski stated on West Chelsea Road there is no street lighting because there is no development out there. The plan is to install the lights as development takes place in the area. Tom Perrault questioned using the surcharge fee to pay a portion of the assessment for property owners for street lighting instead of having the benefiting property pay the cost. Clint Herbst stated the street lights benefit all who use that street. Torn Perrault said the same argument could be made for the sidewalk since it benefits all who use it but the property owner is still assessed 25% of the cost if the sidewalk is on the grid system. CLINT HERBST MOVED TO ACCEPT THE FEASIBILITY REPORT, SET A PUBLIC HEARING FOR FEBRUARY 12, 2007 AND REMOVE THE P A THW A Y AND STREET LIGHTING FROM THE PROJECT WITH WSB TO LOOK AT OTHER WAYS OF DOWNSIZING THE STORM SEWER TO ACCOMMODATE THE AREA. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration of approvinl! renewal of license for Walt's Pawn Shop. Jeff O'N eill indicated the license was up for renewal. It was being recommended that the license continue to be renewed on a monthly basis. Wayne Mayer questioned if the license holder was current in his payment of billable transactions. WAYNE MAYER MOVED TO CONTINUE TO RENEW THE LICENSE FOR WALT'S P AWN SHOP ON A MONTH TO MONTH BASIS. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10. Consideration of approval of SWPPP (Stormwater Pollution Prevention Prol!ram) and MS4 Permit Application for submittal to Minnesota Pollution Control Al!ency. City Engineer, Bruce Westby provided some background information on this item. He noted it is a requirement that the City must comply with however he did want to make the Council aware of some aspects of the program. This is a federally mandated program and the City is required to submit the application by February 15, 2007 otherwise there could be penalties. SWPPP is a series of best management practices with the City is telling the MPCA how the City is going minimize pollution and runoff as well as set measurable goals to obtain their objectives. There are 39 best practices that are identified and 34 must be covered in the submitted report. This information is published on the MPCA website where it is postcd for comment for 30 days. The PCA will review the document and submit their comments to the City. Bruce Westby indicated the City provides an initial report which is updated periodically during the 5 year permit period. At the end of the permit period this program would be evaluated again and revised based on new changes in the law. Bruce Westby explained the information gathering process that went into the report. 7 9 Council Minutes: 1/22/07 Brian Stumpf asked what is considered prohibited waters. Bruce Westby stated there are different levels of prohibited waters. The City's disposal is to the Mississippi River. Brian Stumpf asked if there were any prohibited waters that would affect the City such as if the YMCA property was purchased. Bruce Westby indicated he didn't know that information. Brian Stumpf would like an update on what the prohibited waters are. Bruce Westby said the City is already doing a number of the best management practices so they have a little bit ofa head start in that respect. Jeff O'Neill asked about the budget impact and how much in funding is needed to meet the goals of the program. Bruce Westby said the City will probably have to develop 2-3 new ordinances, develop an inspection program and reporting processes would have to be increased. John Simola said if the City would develop a stormwater utility fee it would go along way toward funding this program. BRIAN STUMPF MOVED TO APPROVE THE CITY'S SWPPP AND MS4 PERMIT APPLlCA TION AND TO AUTHORIZE ITS SUBMITTAL TO THE MPCA AS REQUIRED BY THE NPDES PHASE II STORM WATER PERMIT. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 11. Consideration of appointment of official newspaper. The City Attorney researched the requirements for designation of official newspaper. While the City could appoint another paper, the paper would have to be one that has provided coverage of the City prior to the appointment being made. At the present time Monticello Times meets this requirement but the opportunity is there for other newspapers. It was suggested that the City meet with the newspaper to discuss the City's concerns and expectations. The Council set February 12,2007 at 5:30 for a meeting with the paper. WAYNE MAYER MOVED TO DESIGNATE THE MONTICELLO TIMES AS THE OFFICIAL NEWSPAPER OF THE CITY OF MONTICELLO AND HAVE THE FULL COUNCIL MEET WITH REPRESENATVIES FROM THE MONTICELLO TIMES AT A SPECIAL MEETING ON FEBRUARY 12,2007 AT 5:30 P.M. TO DISCUSS CONCERNS OVER COVERAGE. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 12. Consideration of replacement of 936 Cat rubber-tired wheel loader. Public Works Director John Simola provided background information on this piece of equipment which is approximately 21 years old. Recently the transmission started to go out. If the transmission is rebuilt it would cost $18,800 and the equipment is worth $12,000 as a trade-in or $15,000-$20,000 ifsold on the open market. Public Works has looked at various options. Under the state bid the price of a new model is $117,000 and with sales tax the total is $125,000. Replacement of this loader has not been budgeted. They are proposing to delay the purchase of the Ford tractor mower until 2009 which would free up $78,000. The remaining funds would have to corne from the sweeper which would also be delayed until 2009. This would add another $25,000. They had also looked at leasing equipment but the cost of leasing the equipment was significantly higher. There is 7,660 hours on the current loader so it is towards the end of its useful life. They didn't feel that putting $18,000 into a 8 10 Council Minutes: 1/22/07 loader that was near the end of its useful life was good economics. Street Superintendent Tom Moores said some used equipment contractors would be interested in buying the equipment as is. Brian Stumpf stated he met with Public Works personnel and looked at the loader. He asked if the new loader would have any attachments. Tom Moores said it would have bucket and the hydraulics necessary so that eventually they could have a two way plow. The bucket and hydraulics is included in the cost. Tom Moores suggested using 15 years as the length of service rather than 20 years. He noted the purchase price of the original loader was $125,000 and the City used the equipment for 15 years. Tom Moores stated it was a piece of equipment that was used on a regular basis by the Street Department as well as the Parks Department. Clint Herbst asked about the lease cost. Tom Moores indicated to lease the piece for a day is about $430 or about $4,200 a month. Susie Wojchouski asked where this loader would be used. Tom Moores said it would be used on snowplow routes and the Parks Department uses it on various maintenance projects. Wayne Mayer asked how much more the City would have gotten for this piece of equipment if they had disposed of it 1-2 years ago. Tom Moores indicated probably $20,000-$25,000 trade-in and $30,000 on the open market. WAYNE MAYER MOVED TO AUTHORIZE THE SALE TO THE PUBLIC OF THE 936 CAT AND AUTHORIZE THE PURCHASE OF A NEW 621 CASE LOADER UNDER THE STATE BID FROM ST. JOSEPH EQUIPMENT IN THE AMOUNT OF $1 17,836 PLUS SALES TAX FOR A TOTAL OF $125,495 WITH THE FUNDING OF THE NEW LOADER TO BE THROUGH MOVING THE PURCHASE OF THE TRACTOR/MOWER AND SWEEPER TO 2009. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Consideration of movin!! forward with the wetland miti!!ation at the City of Monticello Wastewater Treatment Facilitv. John Simola explained there is a wetland behind the SBR tanks and behind the area proposed for the new biosolids building which limits the ability to expand the WWTP. The City is proposing to purchase wetland credits from a wetland bank in Annandale at a cost of $.35/sq. ft. which is lower than any other bank in the area. Wetland mitigation requires that the wetland replacement is at a ratio of 2: 1 which means 24,470 sq. ft. must be purchased to compensate for the 12,235 sq. ft. that is being mitigated. This results in a cost of$8,564.50. A grading, erosion control and restoration plan would have to be prepared which Bolton & Menk could do at a cost not to exceed $2,000. Bruce Westby and John Simola will prepare the plans and specifications. This work could be done in coordination with the biosolids expanSIOn Brian Stumpf asked if John Simola could explain to the Council the area southeast of Monticello that is available for wetland mitigation and why the City is not using this site. John Simola said the wetland bank is not in the same watershed district. John Simola stated it is a matter of availability and price. Bruce Westby said according to the property owner this area would be certified as a wetland bank by this fall which would be too late for the City's purposes. 9 11 Council Minutes: 1/22/07 Brad Barger asked if they could explain what it is done when they redo a wetland as he was concerned about loss of vegetation in the WWTP plant area. The existing vegetation acts as a buffer for the residential area. John Simola stated they are taking out very little vegetation and only about 1/3 of the wetland is being mitigated. He does not anticipate a lot of change taking place there. Brad Barger said when the plans for the plant were being proposed it was indicated that vines were going to be planted along the building. John Simola indicated they were planted but did not grow. TOM PERRAULT MOVED TO AUTHORIZE THE CITY TO PURCHASE WETLAND CREDITS TOTALING 24,470 SQ. FT. AT A COST OF $0.35/SQ. FT. FROM MR. JOHN ENGBERG FROM THE SOUTHBROOK BANK IN ANNANDALE AND TO FORWARD A CHECK IN THE AMOUNT OF $556.70 TO THE MINNESOTA BOARD OF WATER & SOIL RESOURCES AND TO AUTHORIZE STAFF TO DRAW UP PLANS AND SPECIFICA TIONS FOR THE WETLAND MITIGATION WITH THE HELP OF BOLTON & MENK AT AN ESTIMATED COST NOT TO EXCEED $2,000 AND ADVERTISE FOR BIDS WHICH WILL BE BROUGHT BACK AT A FUTURE COUNCIL MEETING. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. John Simola said once it is determined how much vegetation would be removed, he would contact the property owners so they could see the impact of the mitigation. 14. Consideration of adoptine process for selectine Finance Director position The deadline for submitting an application for the Finance Director position has closed and staff was requesting how the Council wanted to proceed with the screening and interviewing of candidates. If the screening and interviewing was to be done by the full Council, possible meeting dates would be January 29,2007 or February 5,2007. Wayne Mayer stated he would like to have the full Council conduct the interviews. Brian Stumpf stated he would be gone on vacation during that time period. The Council was given copies of the applications and were asked to submit their three top choices to staffby Friday. Interviews with the applicants will be scheduled for Monday, February 5, 2007. Brian Stumpf asked to have a list of the questions that would be put to the candidates. Added Items: A workshop on the nuisance/blight ordinance and enforcement procedures was proposed for February I ih. It was pointed out that the Council would also be meeting with the paper at the same time which will make three items for the special meeting: 1) Meeting with the paper; 2) Nuisance/blight ordinance; and 3) Rental ordinance. Council directed staff that the May 28,2007 and November 12,2007 Council meetings which fall on legal holidays be moved to May 29,2007 and November 13, 2007. The Mayor brought up the issue of residents contacting the City Attorney. He felt that any resident contact with the City Attorney should go through the City Administrator. 10 12 Council Minutes: J 122/07 15. Approve payment of bills for Januarv. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF THE BILLS. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 16. Adiourn. The meeting adjourned at 9:25 p.m. Recording Secretary 11 13 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, February 5, 2007 - 5 p.m. Members Present: Clint Herbst, Wayne Mayer, Tom Perrault, Susie Wojchouski Members Absent: Brian Stumpf Staff: City Administrator Consultant: Doug Host, City Auditor. The City Council and the City Administrator interviewed three candidates for the position of Finance Director. Julie Linnihan from Waseca, Cathy Shuman from Monticello and Donna Welsch from Mower County were the candidates selected for interview. The interviews began at 5:00 p.m. and ended at ended at 8:00 p.m. BASED ON QUALIFICATIONS AND A STRONG INTERVIEW, TOM PERRAULT MOVED TO OFFER THE FINANCE DIRECTOR POSITION TO JULIE LINNIHAN WITH THE OFFER TO INCLUDE STARTING PAY AT STEP 5; VACATION OFF TO INCLUDE TWO WEEKS V ACA TION WITH THE CITY ADMINISTRATOR GIVEN DISCRETION TO OFFER V ACA TION EQUIVALENT TO THAT OF A TEN YEAR EMPLOYEE, WITH THE OFFER CONTINGENT UPON A SA TISF ACTORY REFERENCE CHECK. SUSIE WOJCHOUSKI SECONDED THE MOTION. MOTION CARRIED WITH WAYNE MAYER VOTING IN OPPOSITION. Doug Host provided perspectives on the qualifications of candidates interviewed. In his opposition to the motion, Wayne Mayer indicated concern regarding the proposed vacation benefit. It was his view that the vacation should be limited to two weeks. It was noted that Julie Linnihan is well qualified for the position due to her years of service as a Finance Director for a city similar to Monticello. In addition to 7 years as Finance Director she has spend 18 years working in the area of local government finance. She appears to be a good fit due to solid accounting and finance background combined with leadership qualities. The special meeting adjourned at 8 p.m. Recording Secretary 14 Council Agenda: 2/12/07 SA. Consideration of a rovin new hires and de artures for Fire De artment MCC Parks and Liquor Store. (10) A. REFERENCE AND BACKGROUND: The Council is asked to ratify- the hiring and departures of employees that have occurred recently at the Fire Department, MCC, Parks and Liquor Store. It is recommended that the Council officially ratify the hiring/departure of all new employees including part-time and seasonal workers. B. AL TERNA TIVE ACTIONS: 1. Ratify- the hiring/departures of the employees as identified on the attached list. C. SUPPORTING DATA: List of new employees. 15 NEW EMPLOYEES Name Title Department Hire Date Class Michael Doyle Firefighter Fire Dept 1/1/07 PT Kenneth Kako Firefighter Fire Dept 1/1/07 PT Timothy Ingle Firefighter Fire Dept 1/1/07 PT Youwadee Green Clerk Liq Store 1/12/07 PT Lauren Bogart Water Safety Inst MCC 1/3/07 PT TERMINATING EMPLOYEES Name Alexis Jackson Reason voluntary Department MCC Last Day 1/2/07 PT Class employee councillist.x/s: 1/25/2007 16 NEW EMPLOYEES Name Title Department Hire Date Class Kylie Oliverius Guest Services MCC 1/23/07 PT Theodore McAlpine Rink Attendant Parks 12/22/06 Seasonal Sean Hary Life Guard MCC 1/22/07 PT TERMINATING EMPLOYEES Name Kim Clark Lilly Lantto Reason voluntary voluntary Department MCC MCC Last Day Class 1/23/07 PT 1/1/07 PT employee councillist.xls: 2/7/2007 17 Council Agenda: 2/12/07 SB. Consideration of approvine: temporary liQuor license for Hi-Wav LiQuors wine tastine: ill!!!: (JO) A. REFERENCE AND BACKGROUND: Hi-Way Liquors is requesting a temporary liquor license for their wine tasting event at the Community Center on March 30, 2007 from 7 p.m. to 9 p.m. B. ALTERNATIVE ACTIONS: 1. Approve a temporary liquor license for Hi-Way Liquors for their wine tasting event to be held on March 30, 2007 from 7 p.m. to 9 p.m. 2. Do not approve the temporary liquor license. C. STAFF RECOMMENDATION: It is recommended the Council approve the temporary liquor license for Hi-Way Liquors. D. SUPPORTING DATA: None. 18 Council Agenda: 2/12/07 sc. Consideration of adoptina resolution in opposition to le2islation to allow sale of wine in <<rocerv stores. (10) A. REFERENCE AND BACKGROUND: In 2001 the City Council had passed a resolution stating their opposition to legislation that was being proposed by the Minnesota Grocers Association that would allow grocery stores to sell wine. At that time the legislation failed to pass. This year again, there is a push to introduce legislation that would allow the sale of wine at outlets other than authorized off- sale liquor stores. The potential for wine, and possibly even strong beer in the future, to be sold at grocery stores would have a devastating impact on off-sale liquor stores including municipal liquor stores such as ours. In addition to the economic impact that any proposed legislation could have, there is also concern about the proliferation of sites selling alcohol products and the problems that poses for enforcement of regulations regarding the sale of alcohol to minors. Since no one under 21 is allowed in a liquor store unless accompanied by a parent, limiting the sale of alcohol to only liquor stores makes it easier to control the access minors have to liquor. This is one reason why MADD (Mothers Against Drunk Drivers) also opposes any proposed legislation. The Minnesota Municipal Beverage Association and the League of Minnesota Cities have in the past and again now oppose any legislation that would allow sale of wine in grocery stores or other outlets other than authorized off-sale liquor stores. B. ALTERNATIVE ACTIONS: 1. Adopt a resolution opposing any proposed legislation allowing wine to be sold for off premise consumption at any outlet other than an authorized off-sale liquor store. When specific legislation is introduced staff may come back to the Council to request further action supporting opposition to the proposed legislation. In the meantime, selection of Alternative #1 provides the green light to preparation of a letter written in objection to the legislation. 2. Take no action but wait on resolution until specific legislation is developed. C. STAFF RECOMMENDATION: It is the recommendation of the Liquor Store Manager, Joe Hartman and the City Administrator that the resolution be adopted opposing legislation allowing sale of wine at outlets other than authorized off-sale liquor stores as it is felt that legislators should know the economic impact any proposed legislation could have on the City as well as problems it could pose in enforcing the sale of alcohol to minors. D. SUPPORTING DATA: Copy of Proposed Resolution 19 CITY OF MONTICELLO RESOLUTION NO. 2007.07 A RESOLUTION OPPOSING ANY PROPOSED LEGISLATION ALLOWING LIQUOR SALES FROM DISPENSARIES OTHER THAN AUTHORIZED OFF.SALE LIQUOR STORES WHEREAS, the sale of 3.2 beer by convenience stores, grocery stores, gas stations, and other associated retail outlets for offpremise consumption is currently allowed under Minnesota law, and WHEREAS, the check out clerks at the aforementioned types of retail outlets are not generally fully trained to recognize fake identification or in other alcohol management techniques normally required for the employees of duly authorized off-sale liquor dispensaries, and WHEREAS, the Minnesota Grocer's Association is pushing to have legislation introduced that would allow the sale of wine and wine products by non-authorized off-sale liquor stores, and WHEREAS, the City of Monticello is endeavoring to limit youth access to alcohol and tobacco products, and WHEREAS, the proliferation of the types of outlets where the sale of alcohol provides additional opportunities for youth to have access to alcohol, and WHEREAS, the sale of wine in any (City) business outlet, for off-premise consumption, other than the City's Municipal Liquor Store would be detrimental to the financial condition of the City and potentially raise a need for increasing property taxes, NOW, THEREFORE, BE IT HEREBY RESOL VBD BY THE CITY COUNCIL OF THE CITY OF MONTICELLO that the City hereby opposes the concept of allowing the further proliferation of liquor sales from dispensaries other than authorized off-sale liquor stores. Adopted by the Monticello City Council this 12th day of February 2007. Clint Herbst, Mayor ATTEST: Jeff O'Neill, City Administrator 20 City Council Agenda - 02/12/07 5D. Consideration of a reauest for approval of a Simple Subdivision resultin2 in two lots at 219 Dundas Road. Applicant: Steve Birkeland. (NAC) A. REFERENCE AND BACKGROUND: The Planning Commission considered this item at their February 6th, 2007 meeting and recommended approval of the simple subdivision. The Commission confirmed that the resulting parcels are consistent with the requirements for the 1-2 District. The Commission was somewhat concerned with irregular shape of the lot and the potential for future subdivision of Parcel A. Planner Grittman clarified that any future subdivision of this parcel would need to be done through the platting process. The Commission was also concerned with the proximity of a potential driveway in the northeast corner of the site to the intersection of Fallon A venue and Chelsea Road. Staff stated that this issue has not been studied at this time, but may be examined by the City Engineer. The applicant indicated that he will comply with all conditions outlined in Exhibit Z. BACKGROUND Steve Birkeland is requesting approval of a Simple Subdivision to allow a lot split of his property at 219 Dundas Road, the Custom Canopy site. The proposed subdivision would create two lots within the Oakwood Industrial Park. The subject site is 5.3 acres in size and is zoned 1-2, Heavy Industrial. Comprehensive Plan. The subject site is guided for heavy industrial land uses, consistent with the proposed plat and existing use. Zoning. The subject site is zoned 1-2, Heavy Industrial. The purpose of the heavy industrial district is to provide for the establishment of heavy industrial and manufacturing development and use which because of the nature of the product or character of activity requires isolation from residential or commercial use. ANALYSIS The applicant is proposing a lot split to create a second buildable parcel on the unused portion of the Custom Canopy site. The site is bordered by Fallon Avenue to the east, Industrial uses to the west,and Dundas Road to the south. The subdivision would create an "L-shaped" parcel, encompassing the west and north sides of the site. Minor adjustments would be made to the existing Custom Canopy site, including relocating a fence, to accommodate the split. Lot Requirements and Setbacks. Applicable lot and setback requirements for the 1-2 District, as well as what is proposed for the site, are illustrated in the chart below. The subdivision proposes an L- shaped configuration for Parcel A, creating a double frontage lot. The parcel will have frontage on both Dundas Road and Fallon Avenue. Therefore, a 50 foot setback must be maintained from both roads. All other lot lines will essentially be side lot lines, requiring a 15 foot setback. No buildings have been sited for Parcel A and as such, no setback information is available. Any future construction on the site shall be required to meet all setback requirements for the 1-2 District. 21 Planning Commission Agenda - 02/06/07 Requirement Proposed Parcel A Proposed Parcel B Lot Area 30,000 sf 134,870 sf 96,238 sf Lot Width 100 feet 140.80 feet 219.20 feet Front Yard Setback 50 feet N/A 88.37 feet Rear Yard Setback 50 feet N/A 15.5 feet Side Yard Setback 15 feet N/A 170 feet Both parcels are generally consistent with the performance standards foe the 1-2 District. The north portion of Parcel B currently contains a gravel storage and parking area, surrounded by a fence. In its current state, the storage area encroaches approximately 32 feet to the west onto Parcel A, and 27 feet to the north. The survey indicates that the existing fence will be relocated. Staff recommends that the applicant also be required to remove the portion of the gravel storage area that encroaches onto the newly created parcel. Access. The Custom Canopy site currently has three access points, two on Fallon A venue and one on Dundas Road. The Ordinance requires a minimum 40-foot separation between driveways. The existing driveway on Dundas Road is located approximately 63 feet from the side lot line to the west. The location of the existing driveway reduces the limitations on driveway location for Parcel B. Any future driveway for this parcel must be a minimum of 40 feet from the driveway to the west, and a minimum of five feet from side lot lines. Staffis concerned with the location of the northernmost driveway with access from Fallon Avenue on Parcel B. This driveway is currently designed to enter the fenced gravel storage area. The L-shaped design of Parcel A allows for a potential driveway to this site from Fallon Avenue. As such, staff recommends removal of the northernmost driveway for Parcel B to limit the number of curb cuts onto Fallon Avenue. Grading, Drainage, and Utilities. The City Engineer has requested that additional utility information be provided for the site, including sizes and elevations. All other issues regarding grading and drainage shall be subject to the review of the City Engineer. Easements. The City shall require utility easements around the perimeter of the newly created parcel. The survey shows an existing 10-foot easement along the north property line. The survey shall be revised to include a 6-foot easement along the west property line, and the eastern interior property line. The survey shall also be revised to demonstrate the existing 10-foot utility easement along Fallon Avenue. Recording. Ifthe proposed subdivision is approved by the City Council, the subdivider shall record it with the Wright County Recorder. The applicant shall provide documentation of said recording to the City for their records. B. ALTERNATIVE ACTIONS: Regarding the request for approval of the Simple Subdivision resulting in two parcels, the City has the following options: 1. Motion to approve the Simple Subdivision, subject to a finding that the resulting parcels are consistent with the performance standards of the 1-2, Heavy Industrial District, and the 2 22 Planning Commission Agenda - 02/06/07 intent of the Comprehensive Plan. 2. Motion to deny the proposed subdivision, based on a finding that the resulting parcels do not meet the performance standards of the 1-2 District. C. STAFF RECOMMENDATION: Upon review of the proposed subdivision, staff finds that it is consistent with the performance requirements for the 1-2, Heavy Industrial district. Both parcels meet lot area and lot width requirements, and no non-conforming setback issues will be created for Parcel B as a result of the subdivision. Any future construction on Parcel A will be required to meet all setback requirements for the district. Staffis concerned about the encroachment of the outdoor storage area onto Parcel A and the location of the northernmost driveway on Parcel B. The portion of the outdoor storage area which encroaches onto the newly created parcel shall be removed, as well as the driveway access into the outdoor storage area. Staff recommends approval of the proposed subdivision, subject to the conditions outlined in Exhibit Z. SUPPORTING DATA: Exhibit A: Exhibit B: Exhibit Z: Site Plan Certificate of Survey dated 1/17/2007 Conditions of Approval 3 23 SD ... ~"",. NAe J NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com TO: Monticello City Council FROM: Kimberly Holien DATE: February 12, 2007 RE: Birkeland Simple Subdivision Steve Birkeland submitted a revised survey and easement description for the proposed subdivision at 219 Dundas Road on February 8, 2007. The applicant has also stated that the gravel storage area of Parcel B will be modified in a manner that does not encroach on Parcel A. The revised materials satisfy all conditions outlined in Exhibit Z. 1 , ~ ~ ~ -; ') ~ \ <<1:o!fil I-~i 3lJi~ \ ~~~ L ~i!~. i~~ I _It;\ll ~~ >- ~~ ~Lu \5o~~... ~i ~~I' z ~~'4 ~u ~c>:\'J <.o~ ~U <.oC\j ~..~ 5. ",,,, ~~ ~"'I' \~~~ ~~'f,;!~ ~~~ i!i~ ~i ~~$ gB .~t ~l Fg~ .~om ~~~ E\ WinVl ~ I E\ B~~ 3;a~3 ~~~ 13\ ~al~ '13'~~ -l ~~. 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'In :, """ :, I '".,,,,,, '\1. . :"r1'" "'" ' ' ". ,:';.'.... .,-,. ~-;L~__}l. .......... ....:'.> 15. C.Af.P /Nv....g5J. 77~- --SS5-- '954'- ., \ \ \ i \ I I I l:l: I -t ..........--~5lJ.............. --. ..........- ......- ............- I / '..... ..... ' ~e ~ oo:;Q "-l o Y> ~ -. ~- ~--- ;1 iR ~ ~ ~- -954_, t "-.... ( '-- '- -... " " ~<.11 ! 1 . ~ Q.1I11 !f~ g. lEa i~ ~~ .a :l r;.oa lit::i. S'5'J 0 * 'P~, 'f1I!:l.. g,.... ~ ~ tf ~E OOQ ~ 00. ~ l'l'" e r 9 i~if ~r l ;~~i Ii 9"S:~.. _~ o o ~o o~ MO (/)M _U) ::u_ ~~ t< at .,." l:) l*~ :i~~ .._.r_.'_.~_..". g ~iJ!J if~ I {aai! r ~ IPJI-ir a ~: t . I~ ti r C2l ti~Cl i J ~ f~fi ~ ~ a f:a...l ~ f r- 9f3=~ b' (I .. "~ ~ 2"~~a g Planning Commission Agenda - 02/06/07 Exhibit Z Conditions of Approval 1. That portion ofthe outdoor storage area which encroaches onto Parcel A shall be removed, and the fence shall be relocated. 2. The survey shall be revised to include all required easements. 3. The northernmost access onto Fallon Avenue shall be removed from Parcel B. 4. The survey shall be revised to include additional utility information. 4 S\) City Council Agenda - 02/12/07 5E. Consideration of a reQuest for a Conditional Use Permit for a Comprehensive Si2ll Plan for a retail center. Applicant: Miller Architects and Builders. (NAC) A. REFERENCE AND BACKGROUND: The Planning Commission considered this item at their February 6th, 2007 meeting and recommended approval of the Comprehensive Sign Plan. The Commission confirmed that the proposed signage is within the parameters of the Zoning Ordinance. Per the Commission's request, the applicant provided details on the materials of the proposed signage. The commission also requested that Planning Staff verify the total area of proposed signage. Staff has verified the total signage area at 467 square feet. Background Miller Architects and Builders is requesting a Conditional Use Permit for Comprehensive Sign Plan for Building "B" ofthe Warnert Retail Site. Said building is a retail strip center with six tenants. The subject site is located at 1220 State Highway 25 and is zoned B-3, Highway Business. Analysis In the case of a building where there are two or more uses and which, by generally understood and accepted definitions, is considered to be a shopping center or shopping mall, a conditional use permit may be granted to the entire building in accordance to an overall site plan indicating their size, location, and height of all signs presented to the Planning Commission. In determining the amount of allowed signage, a maximum of 5 percent of the gross area of the front silhouette shall apply to the principal building where the aggregate allowable sign area is equitably distributed among the several businesses. In the case of applying this conditional use permit to a building, the building may have one pylon or freestanding sign identifying the building which is in conformance with this ordinance. The gross area ofthe silhouette of the principal building is defined as that area within the outline drawing of the principal building as viewed from the front lot line or from the related public streets. Wall Signage. The proposed site has frontage on both Highway 25 and Cedar Street. Therefore, both the east and west elevations have been taken into account when determining the silhouette of the building. Based on the elevations provided, the silhouette of the east and west elevations has been calculated at 9,340 square feet. Thus, the allowable wall signage for the site is 467.5 square feet. As proposed, 467 square feet of wall signage is illustrated. The applicant is proposing a 28 square foot wall sign for each tenant on the west elevation of the building, as well as a 72 square foot sign for the south end tenant, Checker Auto Parts. On the east elevation, a second 72 square foot sign is proposed for Checker Auto Parts, as well as 17 square foot signs for the three center tenants and a 30 square foot sign for the tenant on the north end. A second 30 square foot sign is proposed on the north elevation and a third 72 square foot sign for Checker Auto Parts is proposed on the south elevation. The total proposed wall signage is within the parameters of the ordinance. Pylon Sign. A pylon sign is also proposed for the site, along the west property line, adjacent to Highway 25. The sign is setback approximately 12 feet from the property line. The City has a unique 2 Planning Commission Agenda - 02/06/07 calculation for pylon signs along Highway 25. The Ordinance allows 3.03 square feet of area for each 10 feet of lineal footage, not to exceed 100 square feet. The height limit for pylon signs along Highway 25 is 22 feet. The proposed sign is 22 feet in height and 100 square feet in area. As such, the proposed pylon sign is also within the parameters of the Ordinance. B. ALTERNATIVE ACTIONS: Regarding the request for a Conditional Use Permit for a Comprehensive Sign Plan, the City has the following options: 1. Approve the request for a Conditional Use Permit for a Comprehensive Sign Plan as presented, based on a finding that the proposed signage is within the allowed parameters of the Ordinance and consistent with the conditions for approval. 2. Deny the request for a Conditional Use Permit for the Comprehensive Sign Plan as presented, based on a finding that the proposed signage is not consistent with the Ordinance. C. STAFF RECOMMENDATION: Regarding the proposed Comprehensive Sign Plan, staff recommends approval of the Conditional Use Permit. The plan presented is within the parameters of the ordinance, meeting all height and area requirements. The Zoning Ordinance contains a provision to allow such uses, and the proposed plan is consistent with the terms for approval. D. SUPPORTING DATA: A. Site Plan dated 1/10/07 B. Landscape Plan dated 1/1 0/07 C. Building Elevations dated 1/10107 2 25 '-' :; I i .~ ~ I ....... .:::00II --.;,j ~ ----' ~ .J - :I . , .-' -L-j -n---..J .. .J - ., ..J ---' :.ia. -1 - .._.1 ~j ~ ..J ~ ---' -... 1 _..J a: o z ~ ~ (1 ~ ~ t-4 '" CID jl i1J ($) I]J (jl Cjl (j) (jJ r]J rlJ (gJ rjl @ r]J (~ill fll (~ llJ ~ ~[P ~>~H ~ ~:' ~ ~ I ~ ~ II i g III ~ ~~ ~~ i r~ ! II ~ ~! ;l <l i~~ IllilnUilliUilllllllimi I i I ~ I ~ ; i ~ I i I ~ -~ i ~ ~<l m 1 ~ q I ~ ~ i~ Ii ilL II u I ! 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VZV1d 1YKJ>13WY/Oa '(t) 'IJ() ~'QI8 '(r) a",1lJ. puo (!!) L lN31'/J.IWY/Oa 31LU /Ed NOUJI>J:JS3, 3')YJllfIS <au 3:i*' .:lW1~ v, '~ i;{ ~ ~ ~ ~ ~ ]:JY.JjI(J!; , 3:J~.:mns Sf, lGt.(n;; III <lNIIOIJslJ3ONn 3; >all 1alI3S _ l1NIiOWwat. a'r'3HH3/I 31 YnQ ;, Council Agenda: 2/12/07 5G. Consideration of authorization to SolicitProoosals for Market Study on Develooment of a Second Liauor Store. (10) A. REFERENCE AND BACKGROUND: City Council is asked to consider options with regard to pursuing development of a second liquor store site in Monticello. Is the Council interested in completing additional study on the subject to determine business viability? Would the Council like additional research before proceeding? Or, is it your desire to move fOlWard on negotiations for land acquisition based on the information that you have today? As you recall, a study was done some years ago that recommended establishment of a second liquor store on the east side of town. The best location noted at that time was Amanda's Auto Sales site. This study was completed in 2001 which was prior to a number of significant changes in the community. Such changes include: · Development of the Wal-mart Commercial area at School Blvd/Highway 25. · Construction of the interchange and associated changes in traffic patterns. · Development of the Target/Home Depot retail area. One could intuitively conclude that the changes above would have no net affect on the results of the study. The reduction in traffic created by the interchange and installation of Seventh Street are off- set by the development of Highland Way and the establishment of the Target/Home Depot site. It could be argued that any further delay in selection and purchase of a site will only add to the cost of the land. On the other hand, Council may wish to obtain an update to the study based on the latest information in order to get the comfort level needed to make such a large investment in a second liquor store. It could be contended that there is no need to push a purchase because the increase in land costs associated with Target/Ryan and interchange has already occurred and that it is not likely that land costs will go up after the Target store is opened. This is what happened in the Wal-mart area as the Jefferson area property value peaked around the time that Wal-mart opened and the land has not gone up much in value since. Also, the financial plan for development of a new store needs to plug in an updated cost for land so we can determine if the store would be profitable given the current cost of development. B. ALTERNATIVE ACTIONS: 1. Motion to authorize staff to request proposal for updating or completing new study to include analysis of business viability and identification of preferred sites. Under this alternative, staff would contact firms capable of completing such a report and obtain quotes accordingly. Selection of the firm would occur at an upcoming meeting. Take no action on selection of sites. 2. Motion to direct staff to engage in negotiations with one or more property owners for Council selection below. Council may also wish to direct staff to have an appraisal completed to assist in negotiations. 27 Council Agenda: 2/12/07 . Gladys Hoglund Site. As you know, a portion of this site would be useable as part of the liquor store site and the balance purchased as a buffer/expansion area for the wastewater treatment plant. It has been noted by the Bret Weiss and John Simola that this site alone may not work as a site for a liquor store. It may need to be combined with the Amanda Sales site due to problems with site grade and due to limited difficult access at the Hart Boulevard curve. Dean Hoglund has been marketing the property and has noted that the sellers are open to offers. My hunch is that the selling price has been too high given the need for fill and the awkward location on the Hart Blvd curve. . Amanda Sales Site: This is the site identified in the previous study as the best location for a store. It is presumed that there is sufficient room on this site to support development ofthe liquor store site without purchase of additional land. . Liberty Savings Site: This site is in close proximity to the Amanda Sales site and could provide a good alternative in the event the Amanda Sales site is too expenSIve. . Broadway Square: There is also a pad site adjacent to the new strip mall in the River View Square plat. This too may be a potential location. 3. Combination of Alternatives #1 and #2. Motion authorizing staff to request proposals for updating or completing new study to include analysis of business viability and identification of preferred sites and at the same time start with process of negotiations on one or more sites. Under this alternative Council can save time with the start of negotiations while a study is being completed. The actual purchase of the site contingent on the results of the study. C. STAFF RECOMMENDATION: If Council is somewhat certain that a second liquor store is viable and needed on the east side oftown, it is my recommendation that the Council negotiate the purchase of one or more sites. However, I believe at the same time we should endeavor to update the study to make sure that with the changes that have taken place, the business model works in 2007 as it did in 2001. Close on the property after such has been confirmed. D. SUPPORTING DATA: Portions of study completed in 2001. 28 Council Meeting - 02/12/2007 51. Review of bids for used 936 Caterpillar Wheel Loader and consideration of award of sale. (1.S.) A. REFERENCE AND BACKGROUND: As approved by the City Council at a previous meeting, the Public Works Department advertised the 936 Caterpillar Wheel Loader through the local paper and word of mouth. As discussed previously, the trade-in value offered by the dealer was $12,000. This $12,000 equates to $12,780 when we include the sales tax savings when trading in the used loader. We, therefore, placed the minimum bid amount of $15,000 in the bid advertisement. We also disclosed the problem with the transmission to all potential buyers. The bids were due February 6th at 10 a.m. We received three bids for the loader. The bids ranged from a low of$15,825 to a high of$18,100. A copy of the bid tabulation is enclosed for your review. The highest bid was received from Dennis Fehn Excavating, Inc. of Albertville, Minnesota, in the amount of $18,100. This gives the City $5,320 more than the trade-in value with the sales tax savings calculated in. B. ALTERNATIVE ACTIONS: 1. The first alternative would be to award the sale of the used 936 Caterpillar Wheel Loader in as-is condition to Dennis Fehn Excavating, Inc. of Albertville, MN for $18,100. 2. The second alternative would be to trade the used 936 Caterpillar Wheel Loader in to St. Joseph Equipment for $12,000. C. STAFF RECOMMENDATION: It is the recommendation of the Public Works Director and Street Superintendent that the City Council, after consideration of the bids for the used 936 Cat Wheel Loader, approve the sale to Dennis Fehn Excavating, Inc. for $18,100 as outlined in alternative #1. D. SUPPORTING DATA: Copy of bid tabulation on used loader. 29 CITY OF MONTICELLO BID TABULATION 936 CAT WHEEL LOADER BIDS DUE: 02/06/07 10 A. M. BIDDER 1. Dennis Fehn Excavating, Inc. 5050 Barthel Industrial Drive Albertville, MN 55301 Phone: 612-282-6541 2. Anderson, Inc. 32032 125th Street Princeton, MN 55371 Phone: 763-389-3273 3. A-1 Transfer, Inc. Phone: 763-286-2650 F:IADMINlSpreadl-JOHNICAT LOADER BID: 21612007 .......,...........BID ........: '., AMOUNT $18,100.00 $16,600.00 $15,825.00 30 Council Agenda: 2/12107 5J. Approval of additional year end fund transfer for 2006. (C.S.) A. REFERENCE AND BACKGROUND: The Council has approved the majority of fund transfers for 2006. We discovered an additional outstanding invoice on the CSAH 75 project, which requires a transfer of additional money to one of the project funds. This transfer would provide the additional funds needed and eliminate a deficiency in the fund when the payment is made. B. ALTERNATIVE ACTIONS: 1. Approve the transfer of an additional $154,484.57 from Fund 240 (Capital Outlay) to Fund 477 (CSAH 75/2000-l6C) to cover the final payment to Wright County and eliminate a fund deficiency. c. STAFF RECOMMENDATION: The Senior Finance Officer recommends this transfer to keep in compliance with audit and legal requirements. D. SUPPORTING DATA: " None 31 Council Agenda: 2/12/07 5K. Consideration of approvin2 appointment to Community Center Advisorv Board. (KB) The MCC Advisory Board will be interviewing applicants for the vacant position on Thursday. On Friday Kitty Baltos will be e-mailing the full agenda item to the Council. 32 5K. Consideration of approvin~ appointment to Communitv Center Advisory Board. (KB) A. REFERENCE AND BACKGROUND: The Community Center Advisory Board was extremely fortunate to have three excellent candidates for the open position on the Board. After interviewing each of the candidates, the Board felt that while all of the candidates had exceptional qualities, they would like to select two of the candidates as board members. They would like to see the size of the Board increased by one to a Board number of six, five resident Board members and one Council voting Board member. One of the candidates we'd like to add is Ron Broekemeier. He has been a resident of the City for seven years and he and his family are Community Center members. He has three children ages 10 to 15. He is currently serving as a member of the Comprehensive Plan Task Force. He feels that he would bring to the Board marketing experience, organizational management, a commitment to volunteerism and a family perspective. The other candidate we'd like to see added to the Board is Robin Morrin. She has been a resident of Monticello for three years and she and her family are also Community Center members. She has five children, one in college and four others ages 7 years to 7 months. She feels that she would bring to the Board a perspective from people of all ages since she has children of a span of ages and as an in-home family therapist she specializes in seniors. She also brings a lot of experience from her family background as a child of carnival owners. The Advisory Board would like the Council to consider two items. The first would be increasing the size of the Advisory Board from a five member Board to a six member Board. Ifthere were to be a tie in a decision by the Board, then the Mayor's vote would be the prevailing vote. Then approving appointments to the open positions. If the Council did not wish to add a Board position, then Ron Broekemeier would the Board's first choice to fill the open position. B. ALTERNATIVE ACTIONS: 1. To approve increasing the Community Center Advisory Board from a five member Board to a six member Board and to approve the appointments to the Board of Ron Broekemeier and Robin Morrin to the Board. 2. To maintain a Community Center Advisory Board at five members and approve the appointment of Ron Broekemeier to the Board. 3. To not approve either the increase. in Board size or either of the candidates for the Board position and re-advertise the position. C. STAFF RECOMMENDATIONS: The City Administrator and the Community Center Advisory Board recommends alternative action number one. D. SUPPORTING DATA: None SK. Consideration of approvin1! appointment to Community Center Advisory Board. (KB) A. REFERENCE AND BACKGROUND: The Community Center Advisory Board was extremely fortunate to have three excellent candidates for the open position on the Board. After interviewing each ofthe candidates, the Board felt that while all of the candidates had exceptional qualities, they would like to select two of the candidates as board members. They would like to see the size of the Board increased by one to a Board number of six, five resident Board members and one Council voting Board member. One of the candidates we'd like to add is Ron Broekemeier. He has been a resident of the City for seven years and he and his family are Community Center members. He has three children ages 10 to 15. He is currently serving as a member of the Comprehensive Plan Task Force. He feels that he would bring to the Board marketing experience, organizational management, a commitment to volunteerism and a family perspective. The other candidate we'd like to see added to the Board is Robin Morrin. She has been a resident of Monticello for three years and she and her family are also Community Center members. She has five children, one in college and four others ages 7 years to 7 months. She feels that she would bring to the Board a perspective from people of all ages since she has children ofa span of ages and as an in-home family therapist she specializes in seniors. She also brings a lot of experience from her family background as a child of carnival owners. The Advisory Board would like the Council to consider two items. The first would be increasing the size of the Advisory Board from a five member Board to a six member Board. Ifthere were to be a tie in a decision by the Board, then the Mayor's vote would be the prevailing vote. Then approving appointments to the open positions. If the Council did not wish to add a Board position, then Ron Broekemeier would the Board's first choice to fill the open position. B. ALTERNATIVE ACTIONS: 1. To approve increasing the Community Center Advisory Board from a five member Board to a six member Board and to approve the appointments to the Board of Ron Broekemeier and Robin Morrin to the Board. 2. To maintain a Community Center Advisory Board at five members and approve the appointment of Ron Broekemeier to the Board. 3. To not approve either the increase in Board size or either of the candidates for the Board position and re-advertise the position. C. ST AFF RECOMMENDATIONS: The City Administrator and the Community Center Advisory Board recommends alternative action number one. D. SUPPORTING DATA: None Council Agenda - 02/12/07 51. Consideration of approvin2 bond counsel for proposed city broadband proiect. (C.S., J.O., RK.) A. REFERENCE AND BACKGROUND: This request is for City Council to approve retaining the law firm ofFaegre & Benson LLC to act as bond counsel for the City-wide fiber-to-the-home financing. Mr. Stephen Rosholt of Faegre & Benson, LLC would be the lead attorney, with assistance from his associate, Mr. Mark Meaney. The appointment of bond counsel is an important step in putting together the City's financing team for the City-wide fiber-to-the-home project. It is especially important to have the bond counsel involved at the very beginning of the financing process. In order for bond counsel to provide the legal opinion that the City is authorized to issue the proposed financing, they will need to be intimately familiar with the many details of the project and the financing approach. The legal opinion is the written conclusion that the issuance ofthe City bonds, and the proceedings taken in connection with the bond sale, comply with state and federal law. The legal opinion also makes the finding that the interest on the bonds is tax-exempt pursuant to state and federal law. Bond counsel will be advising and assisting in the preparation of authorizing resolutions, the trust indenture, the official statement, and the validation of all the proceedings. It is the desire of City staff to retain the services ofMr. Rosholt and Mr. Meaney for this financing. These attorneys believe in the rights of cities to acquire and operate broadband facilities. We believe this firm will work diligently with the City of Monticello in its efforts to finance the fiber-to-the-home project. Mr. Rosholt and Mr. Meaney have researched and provided information on the legal authority for Minnesota cities to develop and finance broadband facilities since 2005, at the request of Springsted, Incorporated. Mr. Rosholt and Mr. Meaney also participated in a January 26,2007 meeting at the League of Minnesota Cities that discussed municipal efforts to provide state-of-the-art telecommunications services in the State of Minnesota. B. AL TERNA TIVE ACTIONS: 1. Approve selection of Mr. Stephen Rosholt and Mr. Mark Meaney of Faegre and Benson, LLC as bond counsel for the City's proposed fiber network to the home. Funding for bond counsel costs have been included in the current budget or could possibly be covered by future bond proceeds. 2. Do not approve a bond counsel firm at this time. 33 Council Agenda - 02/12/07 c. RECOMMENDATION: It is the recommendation of City Administrator to approve the firm of Faegre & Benson, LLC as bond counsel on the City-wide fiber-to-the-home financing. Springsted Incorporated, the City's Financial Advisor for the fiber-to-the-home financing, agrees with this recommendation. Based on the consensus of staff and Springsted, we put this on the consent agenda and did not invite Mr. Rosholt to be present at this meeting. It is felt that the City would be best represented by this firm considering their experience and background with financing of municipal broadband. Additionally, Mr. Rosholt has confirmed his interest in working on this project. If Council prefers to meet with Mr. Rosholt prior to approving this item, it may be desirable to table until the next meeting. D. SUPPORTING DATA: INFORMATION ABOUT THE COMPANY OF FAEGRE & BENSON, MR. STEPHEN ROSHOLT, AND MR. MARK MEANEY 34 Faegre & Benson LLP: About the Firm FAEGRE BENSON Wed" February 7, 2007 fIH[\' NI-::WS Fa{~~.lre 6; Bt)nson Rep(t..'.),~f~nt$ "felt'urick:", (o[ori.Hlo 'in El"ninent Dorni.l'ln CdS.(~ Carolyn Sdndb(~rg Joins F nagre n Benson as Finn'';. Fir':i.t Div(~rsit'.y M(~n~ger F iWgJt) &. Omls.(ln Wins. Preced(>nU.;ll DE'~ri~don In PntHnt Suit" -.::::tr.;'~.I ~.. I:' ~ \ '^ , ;') , . : 0 I V E.R SIT Y , "," 1>: 1>>'~" 4'" l "" TRENDS .1. (;AZINI~ ~ ......., "''''''''5 '<~ :=.:~\;): -'--i' <:31",",''.1"''1'' ~~,:~~~,~; :"..',1 "i, ;:1 ~E l.<.:lCATWNS MINNESOTA COLORADO IOWA LONDON FRANKFURT SHANGHAI _1r11.1 Page 1 of 1 PROFESSIONAl, I'llM'IH"L II\ULSIRY AIWl r CO!ld'ACI BIOORArmES Exn.RILr\U: EX1'UUl.~CI; Tm. FIR~1 Us AI1.~"cm 5...001 FAEGRE &- BENSON ll.l' ABOUT THE FIRM Firm Recognition I Serving Clients I Serving the U.S. and the World Serving the Community I Technology Resources I Commitment to Diversity Firm News I Career Opportunities Faegre ft Benson regularly handles among the most complex and challenging Wlnsdctions and litigiltion work facing multinational businesses. The firm offers clients more than 475 lawyers in a full range of practice groups, with experience handling legal matters throughout the United States, Europe and Asia. Established in Minneapolis in 1886 as Cobb ft Wheelwright, the firm has evolved into one of the 100 largest law firms in the U.S., with offices in Minnesota, Colorado, Iowa, London, Frankfurt and Shanghai. From these locations, the firm has served clients in nearly every U.S. state, and in more than 60 countries. The firm is the largest law firm in Minnesota and one of the largest firms in the Rocky Mountain region. An independent survey of corporate counsel in Fortune 1000 companies throughout the U.S. has continuously recognized Faegre ft Benson as among the top 20 law firms in the country for client service. The firm was highlighted among the nation's best firms in 18 separate categories. Click here for a summary of other firm recognition. Faegre ft Benson is also a member of two consortiums of law firms that provide access to a national and worldwide network of experienced commercial lawyers. The United States Law Firm Group is comprised of 19 established U.S. law firms. Each independent firm is headquartered in a major city in one of the country's leading economic regions, and most have additional offices outside their home jurisdictions. The World Law Group includes leading law firms from 35 countries located in the U.S., Europe, Asia, South America, and Africa. Site built by LlC',lg",v,ln It> 2007 Faegre a Ben~on LLP. All rights reserved. PrwiKY Notiu' I PI"",,, rcad this impottnn\ (Ii~cl<limer. file://F:\Cathy\-fiber optic task force\Ernailing firrn_about.htrn1.htrn ~W.EL^^. lfind by Last Name ~ View All Advanced Search _RECRUjT1NQ..__ Recruiting Program Information Lawyer/Summer Associate Opportunities Salaried Paraprofessionals, Patent Agents, Paralegals, and Case Assistant Opportunities Administrative and Support Staff Opportunities ~._. UPCOMING SEMINARS: F aegreF ranch iseS u m mit (Thursday, May 17, 2007M:" Faegre & Ben,on, Minneapolis) ARCHIVED SEMINARS: Passport to Success: Immigration Seminar 2006 Business Immigration 200S: Back to the Ba,ks Navigating the 2005 Annual Report and Proxy Sea,on (Colorado) lie 1111I11I - 35 21712007 Faegre & Benson LLP: Telecommunications FAEGR BENSON 1 :'~ Wed., February 7, 2007 : {l\ ~ \' . F.tleqr"e h Bt;>nson Rnp),f:~sent~ Tdturidt:~,. C.nlorado in Ernirwl1t: Oomi)ln C<).~;e Carolyn 5i.HHjbr~rg In'ln~; FaeBn:!- h Benson as Firrn':s First. Diversity Manaw~'r ra€'Hn:~ fi:: Benson Win" Pf'(:nHhmtial Dt:'cislon in Patent Suit . "'r.~t:::irmlr THEN )S l\1,H;AZINf: QrFICF LOCATJONS MINNESOTA COLORADO IOWA LONDON FRANKFURT SHANGHAI . FeR ITlN!; . , Rl'(rUitinH PmHrarn Infol'mat;on Lawyer/Summer- ASSOCltHe Opportuniti"" Sd.loried Paraprofc~siondls,. Pl:-Itt'nt. Ag(~nt50. Pon.l.legabj iHH:J Coso Assistant. Opportunities ^tlrninl':;.trdUvt.~ i:Jnd Support St.aff Opport:uniti(~s Page 1 of2 PROFESSION.'Ll_ PIC,\t"t let INn!.'1 RI' AIHJl; I CON rAL'! BHlGRAI'H1ES EX1't IUD;Cl" EXI'I.RII.:I<C1, 'I'm: FIRM Us AOV'.CEO S"'WI PRAC'flCES Telecommunications WHO To CONTACT William R. Busch Minneapolis +1 612.766.8809 Send email I More info John R. Marcil Boulder +1 303.447.7766 Send email IMore Info Donald Stewart London +44 20 7450 4586 Send email IMore info Douglas R. Wright Denver +1 303-607.3671 Send ernaH IMore info Faegre & Benson has represented a wide variety of leading companies in the converging telecommunications industry, including data, dedicated internet access, local and long-distance voice providers, wireless/cellular communications providers, cable systems, carriers providing fiber optic cable and conduit to telecommunications service providers, network technology companies, mass media broadcasters, and Internet companies. We have represented telecom companies in the US, UK, and Germany. Our experience includes securlties matters, corporate finance, mergers and acquisitions, state and local government disputes, zoning issues, technology transfer agreements and patent applications, domestic and international joint ventures, employment issues, and a wide variety of contracts unique to the telecommunications industry, such as indefeasible right of use (IRU) and building access agreements, shared resourCe fiber optic telecommunications contracts with state agencies, vendor financing and other corporate finance arrangements. Highlights of our telecommunications work include: LATEST NEWS Telecommunications Special Counsel Returns to Faegre &: Benson's Litigation Practice Supreme Court Preview RELATED liNKS . Mergers and acquisitions involving a broad range of telecommunications services, including voice, data, internet, cable and media providers . Securities offerings and other corporate finance and loan transactions . Contracts with state agencies for the installation of fiber optic facilities on interstate and state highways . Negotiation of fiber optic leases and IRU agreements and right of way agreements for telecommunications facilities . Negotiation of telecommunication financing agreements, including equipment vendor financing . Development of briefing, affidavits, and supporting materials for a national wireless provider in connection with federal preemption of local land use regulatory authority under the Telecommunications Act of 1996 . Litigation involving contract and payment disputes on installation of buried fiber optic cable . Defeating challenges to local approval of a telecommunications tower and antennae for use as part of a digital wireless telephone service network . Zoning and environmental issues for wireless telecommunications transmissions towers and ground facilities . Technology transfer agreements, patent licenses, know-how lfcenses, and vendor type agreements . International joint ventures for telecommunications companies in Europe and Asia . Lease financing for fiber optic and pes systems . Mergers and acquisitions for television and radio stations nationwide In addition, the firm has provided legal services for telecommunications- related companies in other areas such as labor, employment, antitrust, file:/ IF: \Cathy\- fiber optic task force\Emailingfirm_practice_detail.html.htm ~~ BI9GRAP~__...... I Find by Last N~me ::;] View All Advanced Search L"QAL SEMINAU UPCOMING SEMINARS: F ae~reFranchiseSummit (Thursday, May 17, 2007ot'" Faegre &: Benson, Minneapolis) ARCHIVED SEMINARS: Passport to Success: Immigration Seminar 2006 Business Immigration 2005: Back to the Basks Navigatln~ the 2005 Annual Report and Proxy Season (Colorado) 36 2/7/2007 Faegre & Benson LLP : Rosholt, Stephen C. FAEGRE BENSON Wed., February 7, 2007 . .~. ~l {i\l .;W5. . Fdegrn h BtH'lson R(~pres.E.'nt5. Telturjd(~1 Colorado jn F.lllim~l1t DOrll;:dn CdSt:~ Carolyn Sllndbet'% Juins FiH::~grc [t Benson rlS Finn '", First Diversity M~\nager r (HJ~F(:l ft Ben~~on Wins Precedt'~nt.ial Df..~c\si()n in P~ltent: Suit 11I!'.~,H[';j!.I!:!, TRENDS 'l.\(:AZIN" O. 'F,lCE LOCATIONS MINNESOTA COLORADO IOWA LONDON FRANKFURT SHANGHAI REC1UHTlNt; . . . Re(Tuiting Program Information LilwyerfSurnrner Associate- Opportuniti,,, Sal,aried Par~prof{~!)5hmals,. Piltent Agents! Paralegals, and Cas.e Assi'i>tant OpportulYith:-s Admini~~tl'dtiV{~ i:)nd Support Staff Oppof't.unlties Page 1 0[2 P!lOI'E~SIONAL 1'ltAClICL INllL'IR\' AIHlIl1 CuStAe"!' BIOGRAPHIES EXI'Um:M'I: EXI'UllI.M:I: Tm FIR~I Us ADVANCEO SE....CH BIOGRAPHY Stephen C. Rosholt Partner SRosholt@faegre.com +1 612-766-8729 Minneapolis Office Faegre & Benson LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402-3901 Phone: 612-766.7000 Tall-Free: 800.328.4393 Fax: 612-766'1600 Practice Areas . Local Government Law . Municipal Bonds . Public Finance Experience .Governmllnt Apl>(OVaIS Stephen Rosholt is the senior partner in Faegre & Benson's public finance group. He has served as bond counsel for cities, counties, school districts and special authorities in several states for over 25 years in connection with various tax exempt financings. He has also represented underwriters in connection with governmental and private activity tax exempt financings. He has developed documents for equipment lease transactions and provides back-up advice for providers of arbitrage rebate calculations. Bond issues for which Steve served as bond counsel include the following: . $200 million City of Minneapolis Convention Center Sales Tax Revenue Bonds and subsequent refunding bonds issued to finance a new convention center in Minneapolis. . $270 million Metropolitan Airports Commission General Obligation Revenue Bonds issued in connection with a purchase and lease back transaction with Northwest Airlines. . $140 million City of Minneapolis Tax Increment Revenue Refunding Bonds issued to restructure and consolidate the debt of numerous tax increment districts in Minneapolis. Steve has developed a number of unique financing mechanisms for local government units. These include: . The State Revolving Fund Program of the North Dakota Municipal Bond Bank which is a revolving fund for local wastewater treatment facilities utilizing grants from the U. S. Environmental Protection Agency. . Minnesota School Districts Cash Flow Borrowing Program sponsored by the Minnesota School Boards Association, which is a pooling arrangement for tax and aid anticipation certificates. . Minnesota Equipment Financing Program sponsored by the Minnesota League of Cities to provide financing for equipment file://F:\Cathy\-fiber optic task force\EmailingJawyer_bio.htm1.htm '~)r~~""'~ ~~:":~':"'IA:~,~,:',:!~~ II{9ItQ{:n:r.'.UlllJ4ii.lIli. ~'I'l.I:I~"".'i~m. "._~~._.- Find by Last Name View All Advanced Search Cw: YOUR LAWYERS One-dick email access to lawYllrs you work with at Faegre & Benson. PRACTICE/INDUSTRY Focus Highlight the areas of greatest interest to you. . LEGAL SEMINA.R.L. UPCOMING SEMINARS: F aegreF r anchiseS u m mit (Thursday, May 17, 2007M" Faegre & Benson, Minneapolis) ARCHIVED SEMINARS: Passport to Success: Immigration Seminar 2006 Business Immigration 2005: Back to the Basics Navigating the 2005 Annual Report and Proxy Season (Colorado) 37 2/7 /2007 Faegre & Benson LLP : Rosholt, Stephen C. purchases. Industry . State and Local Governments . Underwriting . Developers Education . B.A., Yale University (1967), cum laude · J.D., University of Minnesota (1970), cum laude, Law Review (Associate Editor), Order of the Coif Professional Recognition . American College of Bond Counsel Fellow Professional and Trade Associations · Minnesota Institute of Public Finance, Board of Directors · National Association of Bond Lawyers Admitted to Practice (State) . Minnesota . North Dakota @-lII~IiWIIllIR"Ill_IT.II_1IIiI1Il1l'lll1ll1 Printer-frielidly ver~ion <02007 Faegre & Benson LLP. All rights reserved. f'1.;'J"CY Notice I Please r""c1 this irnpnrtJnt disclairnN. Site buHt by Designst(.~il'1 file://F:\Cathy\-fiber optic task force\Emailinglawyer_bio.html.htm Page 2 0[2 I I lllDlli 38 2/7/2007 Faegre & Benson LLP : Meaney, Mark D. BENSON Wed., February 7, Z007 'I fit _;\'Su ~ Fd(~~;I'('~ Et Bt.nson Rep!"'esent~~ 1"cllQrido, Culorado 'lrl Ernirwnt: [){)lnaln Case. C.~Holyn Sandbprg. Joins Faegrt'!' h U(Hl50n as Finn's first Olvprsit.y Man[jg(~r F~'legf'e n een~on Win~ Pr'(~((~defll.i(ll Decision in Patfmt Suit: ~~'''I T.tENDS ,M,\GI\ZINE :FlCE LOCA'fION,' MINNESOTA COLORADO IOWA LONDON FRANKFURT SHANGHAI R ~CIWITIN ~ Ret::,rultinq Program Information Lawyer/Summer A5S0(:idt[~ OpportuniU", Salorl"d Paraprof""lol1.,15. Pat.ent Agt~nts.. P~lrate~~ah:'l ~H1d c.as.o- Assist.ant Opportunith:-s Adrninistratlve dnd Support: St.aff Opportunltl"s ~1lffl1U! Page 1 of 1 PROFESSIONAL Pll\CHlnc Jr-olll'/RI AmHII CON/ACT BIOGRAl'tllE5 EXnRILl\LL EXl'l.IIll.:>>L!. TilE FIR"l Us AnVANCED S...ell BIOGRAPHY Practice Areas . Public Finance . Municipal Finance Experience Mark D. Meaney Associate MMeaney@faegre.com +1 612-766-8250 Minneapolis Office Faegre Et Benson LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402.3901 Phone: 612.766.7000 Toll.Free: 800.328.4393 Fax: 612.766-1600 Mark is an associate In Faegre & Benson's Public Finance Group. He has assisted cities, towns and school dIstricts on a range of bond issuance projects. He has also worked with underwriters on a variety of governmental and private activIty bond flnancings. Prior to attendIng law school, Mark spent sIx years workIng as a health care researcher and analyst in both the public and private sectors. Education . B.A., Creighton UnIversity (1992) . MA, University of Wisconsin, LaFollette Institute of Public Affairs (1996) . J. D., UniversIty of MInnesota (2005), cum laude . National Association of Bond Lawyers Professional and Trade Associations Admitted to Practice (State) . Minnesota ."- Printer,.friendlv version Site built by De,h;"';lclr1 <02007 Faegre & Benson LLP. All rights reserved. PriviKY Notice I PI6W" reiHI tt\lslmportill1t ,1is(;ii);mH. file://F:\Cathy\-fiber optic task force\Emailinglawyer_bio.htm12.htm ~..............~\,I~"'~ " ',..,:"\.,, i"~" "~~ ~Ol~;.L!~tl:~1 fJ'.."""",,~,I.~1'!:~aJi. ___....JlliLQJlAfHlr.;~_._. I Find by Last Nam" :::J View All Advanced Search - w;;li.IJ:...CQ YOUR LAWYERS One-click emaH access to lawyers you work with at Faegre Ii Benson. PRACTICEIINDUSTRY Focus Highlight the areas of greatest Interest to you. LEGAL S EM.l1'iA.&S..",..,., UPCOMING SEMINARS: F aegreFr anchlseSum mlt (Thursday, May 17. 2007M:" Faegre 6; Benson, Minneapolis) ARCHIVED SEMINARS: Passport to Success: Immigration Seminar 2006 Business Immigration 2005; Back to the Basics Navigating the 2005 Annual Report and Proxy Season (Colorado) "- I ~ 39 2/7/2007 Council Agenda: 2/12/07 7. Public Hearine: and Consideration of approvine: a tax revenue stabilization ae:reement which includes a tax abatement process as part of the revenue stabilization ae:reement with Xcel ener2V. (JO) A. REFERENCE AND BACKGROUND: City Council has reviewed the basic agreement and financial considerations at previous meetings and workshops. Information from previous meeting is provided for your review. At the most recent discussion on the topic, the City Council tabled the matter pending a response from Xcel on certain points of negotiation. These points are generally summarized in the memo to Michael Grimes dated January 3, 2007. These points were incorporated into a proposed amendment to the agreement dated 1/18/07 which was also sent to Grimes In response to these points of negotiation Xcel flatly said no to any changes to the original document as outlined in the January 30th memo from Michael Grimes to Martha Ingram. A copy of this correspondence is attached. Council now needs to determine further action. Following are things to consider when making your decision: Financial impact. According to Mark Ruff, based on projections for growth and based on costs associated with planned projects it makes sense to sign the agreement. Although there is some risk involved he did not think that there is a great chance of the tax rate increasing to the point where the city would be responsible for abatement payments. Tax rate increase being proposed for utilities by Coalition of Utility Cities. The Coalition of Utility Cities is introducing legislation that would result in an increase in utility company tax rates which would off-set the reduction in market value. Having this happen is in the best interest of Monticello. Even if Monticello adopts the agreement and if tax rates change, the agreement is nullified. However, by signing on to this agreement the City could be contributing toward reducing momentum for the change in tax rate at the state level. It is not known to what extent Monticello's participation in this agreement might impact tax rate discussions. It should be noted that Amy Koch spoke with Joel Rudberg on this topic and Koch may be under the impression that the stabilization agreements are the way to go. A City representative should probably discuss this matter with Koch further and describe the potential down-side of the agreements. Department of Revenue - timing of decision on market value calculation. If the agreement is signed, there remains a chance that the current tax rate may not be applied. This would occur in the event the decision on the market value increase is delayed to 2008 or beyond. It is not known to what extent a delay is likely. If there is a delay it would enable the Council to set the levy at a level closer to "average" (higher) which would result in a higher stabilization payment. Timing. It is not known if Xcel will remove the agreement from the table. At the point that the Department of Revenue makes its ruling, the agreement may be withdrawn. 40 Council Agenda: 2/12/07 B. AL TERNA TIVE ACTIONS: 1. Motion to adopt Stabilization as proposed by Xce1 without modifications. 2. Motion to deny adoption of stabilization agreement and request continued negotiations. 3. Motion to table matter C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator that the City adopt the agreement based on the following: According to Mark Ruff, given the City's financial picture. Most models show that this is the right decision. It is not known to what extent the City signing on to the agreement will hurt the effort to increase utility tax rates. Adopting the agreement provides insurance in the event the market value drops 28% and there is no corresponding tax rate increase or equalization payment forthcoming. The base rate could change if the Department of Revenue does not make valuation changes in 2007. Along with this recommendation it should be noted that the City should contact local legislators letting them know that we believe the most equitable solution to the change in market value is a commensurate increase in the tax rate. D. SUPPORTING OAT A: Memo to Michael Grimes dated 1/3/07 Revenue Stabilization Agreement Letter to Martha Ingram dated 1/30/07 40a ",,", I" .",--" ',! , r""dWfll~8Lr:T:\,'1_1\ ~r II," i\~~ill<1 \"Y;r .;i/,,~; 1 ~f~.JJi'ifilf(~t~ ~v;;t~:-'-; ~~ : ~l~~~~~~,AI~;~"'jh'" -~ \ ~', j L " I I ~ . .,' t. _ -~-:"'4 'I', l ( 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis MN 55402 & J~f,: ,I '...fi~' - ,-, ' ,.1:( I' l ~~' , "" 'f.~"~i'~;;Ti"i/:I:" '''F" . ,- " ," '~~"_~~h_<l'J\;,i II~'.~.!: ,,';, l J >, - -"" I,. I" I . I', " _ "':' '\j (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com CHARTERED MEMORANDUM To: Michael Grimes From: Steve Bubul and Martha Ingram Re: Revenue Stabilization Agreement Negotiation Points Date: January 3, 2007 The City of Monticello (the "City"), its financial consultants and legal counsel have met to discuss the draft Revenue Stabilization Agreement (the "Agreement") proposed to be executed by the City and Northern States Power Company d/b/a Xcel Energy ("NSP"). Some points of negotiation and/or clarification arose from that discussion, and are laid out in this memo. A. Modification of Section 2 The City requests that the Agreement define the Base Year as taxes payable year 2006. The Cit's osition is that taxes payable ear 2007 reflects an uncharacteriSfiCally row tax rate caused by a con uence 0 many factors, including unusually large co . al growth, and that establishing the Base Year as taxes payable year 2006 is more equitable. In any event, the current definitions and examples of Base Year and Base Year Amount are inconsistent within the Agreement and its exhibits. We assume that the Base Year means the calendar year that the Rule changes take effect, and that the Base Year Amount is the utility property tax payable in the Base Year based on prior year assessments, as depicted in Exhibit B. If NSP does not wish to set the Base Year as taxes payable year 2006, we will need to discuss redrafting of Section 2 so that the definitions, exhibits and examples are consistent. 303784vI MNI MN190-126 B. Clarification of Section 3 The Term of the Agreement is defined as ten years after the Base Year, if the Rule changes are implemented for assessment in 2007, provided that if the Rules are implemented for assessment after 2007, the Agreement will terminate no later than December 31, 2018. The City would like to clarify the definition of the Term. The Agreement appears to provide that if the Base Year is 2007, the Agreement terminates on December 31,2016. Since Abatements or Stabilization Payments are payable one year after the year in which they are assessed, this appears to result in a total of nine years of Abatements or Stabilization Payments, since other sections of the Agreement provide for reconciliation payments at the end of the Term (see, e.g., Section 5(c)(ii) and (iii)). However, Section 5(d) provides that the Abatement period shall not exceed ten years. Does this mean the Term of the Agreement is actually ten years after the first payment year, rather than ten years after the Base Year (provided that the Agreement will terminate no later than December 31, 2018)? Or is the Term ten years from January 1 of the year following the Base Year, to allow for payments of the final year of Abatements/Stabilization Payments and final reconciliation payments? To confuse the issue further, Schedule S(c)(iv) shows payments made in 2019, which seems inconsistent with the rest of the Agreement. Clarification of what is meant by the Term of the Agreement would help the City to understand when its final payment obligations, if any, are payable to NSP. C. Clarification of Sections 5(b ) (i) and (ii). The City would like to clarify that each Abatement and Stabilization Payment applies only to the amount of utility property tax on the Stabilization Property payable in a given year over or under the Base Year Amount, exclusive of any amount resulting from an abatement levy resulting from Abatements collected in that year. In this case, we propose the following language in Section 5(b )(i): In the event that the utility property tax on Stabilization Property in any year during the Term, exclusive of any levy amounts resulting from Abatements payable to NSP in that year (including any Abatements levied but not payable in that year because the amount does not reach the Abatement Payment Threshold), is less than the Base Year Amount, NSP will remit to the Host Community the difference between the higher Base Year Amount and the lower utility property taxes on Stabilization Property paid by NSP to the Host Community (a "Stabilization Payment"), subject to offset due to tracking of unpaid Abatements (defined in Section 5(b )(ii) below), reconciliation of Abatements at the end of the Term and the effect of Extraordinary Investment and future divestiture provisions described below in this Section 5. Likewise, we propose parallel language in Section 5(b )(ii): In the event that the utility property tax on Stabilization Property in any year during the Term, exclusive of any levy amounts resulting from Abatements payable to 303784vl MNIMN190-126 NSP in that year (including any Abatements levied but not payable in that year because the amount does not reach the Abatement Payment Threshold), is greater than the Base Year Amount, the Host Community will remit to NSP the difference between the higher utility property tax paid by NSP to the Host Community and the lower Base Year Amount pursuant to Minn. Stat. S S 469.1813-1815, as amended (an HAbatement Payment" or an HAbatement"), subject to offset due to the deferral and tracking of unpaid Abatements, reconciliation of Abatements at the end of the Term and Extraordinary Investment and future divestiture provisions described below in this Section 5. D. Section 5(c)(ii) - Abatement Payment Threshold As we understand the Agreement, any Abatement amounts below the Abatement Payment Threshold are tracked but not levied until the end of the Term. The City would like to have the option, at its sole discretion, to levy for Abatement amounts below the Abatement Payment Threshold in any year following any year in which it is determined that an Abatement is payable. This would enable the City to increase its tax levy gradually, rather than requiring a potentially large increase at the end of the Term. While this might be implied, we would like to make the point explicit in the text of the Agreement. E. Abatement Cap In light of additional modeling by the City's financial consultants of future City tax levies, which project relatively rapid property tax increases under some possible scenarios, we would like to discuss the possible inclusion in the Agreement of the concept of an Abatement cap, i.e. a maximum annual or cumulative amount of Abatement payments. F. Section 7 - Extraordinary Investment Percentage Section 7 of the Agreement currently provides for exclusion from Abatement payments of any utility property tax increases resulting from an Extraordinary Investment, defined as a capital investment in the plant that results in a Hsignificant increase" in the Market Value of the Stabilization Property. A "significant increase" is currently stated to equal an amount in excess of 7%. The City believes that this number is unacceptably high, and proposes that a "significant increase" should equal an amount in excess of3%. III G. Section 11 - Dispute Resolution The Agreement currently calls for mediation followed by binding arbitration as the mechanism for the resolution of disputes arising under the Agreement. The City would prefer that the Agreement not be subject to binding arbitration, and requests that Section 11 (b) be deleted from the Agreement. 303784vl MNI MN190-l26 The Monticello City Council plans to hold its public hearing on the Agreement and the potential abatements on January 8. No formal action is expected on the Agreement while these negotiation points are unresolved. Please feel free to contact either of us to discuss these points. 303784vl MNIMN190-126 [PROTOTYPE CITY OF MONTICELLO] REVENUE STABILIZATION AGREEMENT THIS REVENUE STABILIZATION AGREEMENT (this "Agreement") is entered into as of the _ day of , 2006 by and between the City of Monticello, Minnesota (the "City" or the "Host Community") and Northern States Power Company d/b/a Xcel Energy, a corporation existing and govemed under the laws of the State of Minnesota ("NSP"). The Host Community and NSP may be collectively referred to herein as the "Parties" and each individually may be referred to herein as a "Party." PURPOSE NSP owns the Monticello nuclear power plant, which power plant is located in Wright County, Minnesota (the "County" or "vVright County"). The power plant operates as a baseload plant which is operated continuously without interruption, except for periods of time required for maintenance and refueling outages. The utility property tax revenues from this plant constitute a significant portion of the tax base of the Host Community and the Host Community is significantly impacted by changes in utility property tax policy. The Host Community has in recent years experienced a decline in its property tax base revenues. As a cons~quence of the uncertain nature of regulatory, administrative, statutory and judicial developments that may affect the future valuation of, and assessment of taxes upon, property owned by utilities within the State of Minnesota, which are reasonably anticipated to create a degree of instability and uncertainty in the revenue base of the Host Community, the Parties are entering into this Agreement for the purposes of, among other things: (i) promoting in the public interest a stable and controlled revenue stream for the Host Community, (ii) promoting a stable and controlled expense base for NSP, (iii) providing a basis for long-term budgetary planning of revenues and expenses for each of the Parties to this Agreement, and (iv) continuation ofNSP's responsible and proactive stewardship of costs to utility customers. REelT ALS A. Utility property owned and operated by NSP that is located within Wright County is subject to property taxes imposed under Applicable Laws of the State of Minnesota, including without limitation, (i) Chapter 272, et. seq., of the Minnesota Statutes, and (ii) Minnesota Rules, Chapter 8100, in each case as amended. Minnesota law requires that all property be valued at its "market value" pursuant to MINN. STAT. 99273.11, Subd. 1,273.12, and 272.03, Subd. 8, in each case as amended. B. The existing rules within Applicable Law governing valuation and assessment of utility property taxes within the State of Minnesota (the "Rule" or the "Rules") have generated ongoing-controversies and litigation challenging, amongoth~r- things; the market values of utility property assessed by the State of Minnesota and the assessment of utility property. In an ostensible effort to address such controversies, the Minnesota Department of Revenue (the "DOR") published a request for comments on possible amendments to the Rules governing valuation and assessment of property owned by utilities and has established a rulemaking process by which the DOR may recommend changes to the Rules. 1959470vl [PROTOTYPE CITY OF MONTICELLO] C. NSP and the Host Community, have in the past and will in the future pursue changes to the Minnesota Statutes and Rules governing utility property valuation and assessment (i) to assure accurate reflection of market value(s), and (ii) that they believe are equitable and warranted on behalf of their respective customers and taxpayers. Notwithstanding these efforts, NSP and the Host Community desire to also facilitate stable and predictable revenue and expense streams for, respectively, the Host Community and NSP. D. In the event that there is a change in or to utility property tax valuation and assessment Rules with respect to NSP utility property, it is possible that the Host Corrununity could experience a substantial reduction in property tax revenues. E. Recognizing that changes in the Rules governing the valuation of, and the assessment of utility property tax on, utility property may result in a significant detriment to the Host Community, and to lessen the impact of any such changes, the Parties have agreed upon celiain revenue and expense stabilization measures set forth herein by which the Parties seek to achieve uniform utility property tax revenue streams for the Term set forth in and defined by this Agreement. F. As an integral and essential legal consideration with respect to the Parties' purpose hereunder to stabilize utility property tax revenues and expenses pursuant to the provisions of this Agreement, the Parties have agreed that the Host Community shall authorize the Abatement Payments that may arise under Section 5 of this Agreement pursuant to the statutory authority for such payments granted in and by MINN. STAT. SS 469.1813 through 469.1815, as amended (collectively, the "Abatement Statutes"). The abatement authorization adopted by the Host Community is attached hereto and incorporated by reference herein as Exhibit A to this Agreement. G. At the time ofthis Agreement, the Parties are unable to predict with any certainty the outcome or the economic impact, if any, of (i) controversies that may arise with respect to, or matters that may be litigated concerning, utility property valuation and assessment, and/or (ii) changes to the Rules which affect the respective utility property tax burden or benefit to the Host Community and/or NSP. H. This Agreement does not apply to the state general tax, and any other tax and/or assessments, that may be now or in the future set forth on the Wright County property tax statement, other than the utility property taxes of the Host Community as described herein. AGREEMENT NOW, THEREFORE, in consideration of the (i) foregoing Purposes and the Recitals, each provision of which is incorporated by reference as essential terms and understandings of and with respect to this Agreement, (ii) the covenants of the -Parties set forth -herein, and (iii) other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 1. Property Tax Payments Generallv. During the Term of this Agreement (as defined in Section 3 hereof), NSP shall remit the properly computed and undisputed amount of property tax set forth on the property tax statements issued by the County on or before the I 959470vl 2 G P. I G (,', am:I M () H G A I~ 2200 IDS Center 80 South 8th Street Minneapolis MN 55402-2157 tel 612.977.8400 fax 612977.8650 BRIGGS January 30,2007 Michael J. Grimes (612) 977-8492 mgrimes@briggs.com VIA U.S. MAIL AND E-MAIL (mine:ram@kennedv-e:ravem.com) Martha N. Ingram Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 Re: Revenue Stabilization Agreement by and between City of Monticello, Minnesota and Northern States Power Company d/b/a Xcel Energy (the "Revenue Stabilization Agreement") Dear Martha: We and Xcel Energy have received and reviewed the January 18,2007 comments to the Revenue Stabilization Agreement provided by Kennedy & Graven. We thank you far these comments and respond to them in order of their appearance below: 1. Base Year. The definition afthe Base Year was carefully crafted to assure that the Base year is the first assessment year that the Rule changes adopted by the nOR will take effect. The suggested language revision in Section 2(a) seems somewhat ambiguous and, in any event, if the language is intended to mean the same as was previously drafted, Xcel Energy desires to have uniformity of language between and among the Host Communities in the Revenue Stabilization Agreements. 2. Base Year Amount. The Base Year Amount is the total property tax paid in the Base Year. The purpose of the Revenue Stabilization program is to track the differences between the last year of property taxes paid under the old DOR assessment system. and compare it to those amounts paid by the Host Community in the years following the Rule change. As a consequence, 2006 could not possibly be a "Base Year." The earliest year that could possibly be a "Base Year" is 2007, and only if the nOR acts prior to April!, 2007. Xcel Energy understands that there is a significant financial benefit for the City of Monticello to go back to the year 2006, but the purpose of the program is not to create additional revenue over and above budgeted amounts in the assessment year, but rather to equalize revenue streams in the payment years after the Base Year. The comment above also relates to the date change in Section 2( c), which provides an example of the Base Year and Base Year Amount. 1990854vl 8rlgg$ and Morgan, Profe$$lonal Assoclallon Minneapolis I 5t Paul I WWW.bri9gs.com Member. Lex Mundi, a Global Association of Independent Law Firm! BRIGGS AND MORGAN Martha N. Ingram January 30,2007 Page 2 3. Term of the Agreement. The language suggested in Section 3 restates what is already clearly stated in this section or in other sections of the Revenue Stabilization Agreement. As a consequence, for uniformity of the existing agreements with other Host Communities, Xcel Energy is unable to accept the change. 4. Stabilization and Abatement Payments - Levy. Language has been added in Sections 5(b) and 5(c) regarding the levy of amounts resulting from any Abatement. As we have previously discussed, the Revenue Stabilization program has been established exclusive of any recognition of levies that arise from the operation of the governmental entity, except to accommodate for the due date( s) of Abatement Payments. Further, Xcel Energy has previously stated its preference that the governmental powers of the Host Community, which are derived from state and local laws, not be stated as a contractual term. Xee1 Energy cannot represent or covenant that the Host Community has any specific powers. This is established solely by applicable law. If this contractual statement was deemed to be a covenant of Xcel Energy, any change in state law which would not allow the levy for the Abatement except in a year of anticipation of payment, could possibly be interpreted as a breach of covenant by Xcel Energy (i.e.. a "power" granted by Xcel Energy under contract). Xcel Energy does not desire to create an ambiguity within the contract which may result in a violation of public policy or otherwise express a grant of power to the Host Community that Xcel Energy does not have the power to grant. 5. Extraordinary Investment - Significant Increase. The percentage of "significant increase" to determine whether an Extraordinary Investment has occurred has been reduced in your draft to three percent (3%) from seven percent (7%). Xcel Energy believes that seven percent (7%) is the correct percentage amount by which to gauge a "significant increase." 6. Survival of Representations and Warranties. The original draft of the Revenue Stabilization Agreement stated that all representations and warranties survive for twenty-four (24) months after the expiration or termination of the Revenue Stabilization Agreement. You have added language that the representations survive until all Abatements are paid. This is an unnecessary addition. The obligation that remains upon expiration or the termination of the Revenue Stabilization Agreement, if Abatement Payments are owing, is simply the payment of the Abatement(s) after the Term. (Stabilization payments are due and payable within the Term.) The provision later in the paragraph states that "the covenants and agreements arising from, incident to or in connection with this Agreement shall survive any expiration or termination of this Agreement indefinitely, until such covenants and agreements are either fully satisfied or require no further performance or further forbearance, or the rights or obligations of a Party hereto expire on a specific or referenced date by the terms hereof." The payment obligation is a covenant, not a representation, that survives expiration or termination of the Revenue Stabilization Agreement. 19908S4vl BRIGGS AND MORGAN Martha N. Ingram January 30, 2007 Page 3 Since representations and warranties under the Revenue Stabilization Agreement bear no relation to the obligation to make payments under the Revenue Stabilization Agreement, the covenants are the only relevant survival provisions in an extended period past the twenty-four (24) months following expiration or termination. In ally event, any and all Abatement Payments are due and payable within or by the end of such twenty-four (24) month period. As a consequence, the additional language is unnecessary under either scenario. Please let me know if you have any questions or concerns regarding the above. We will be available at your convenience. Very truly yours, BRIGGS AND MORGAN, P.A. MJG/pk Enclosure ~ ~ cc; Darrin Lahr (via e-mail, w/enclosure) Glen Kuhl (via e-mail, w/enclosure) James Duevel (via e-mail, w/enclosure) Joseph Rheinberger (via e-mail, w/enclosure) Grania McKiernan (via e-mail, w/enclosure) Peter Glass (via e-mail, w/enclosure) Patrick Cline (via e-mail, w/enclosure) 1990854vl 8. Conduct Public Hearinf!. Order Proiect. and Authorize the Preparation of Plans and Specifications for the Reconstruction of Chelsea Road (CSAH 18 to West of Fallon Avenue) (City of Monticello Proiect No. 2006-31C) (WSB) A. REFERENCE AND BACKGROUND: PROJECT DESCRIPTION: At the January 22,2007 City Council meeting, the Council accepted the feasibility report addressing the reconstruction of Chelsea Road from CSAH 18 to Fallon Avenue with the following conditions to be presented at the Public Hearing: . Remove the pathway construction from the project. Remove the street lighting costs from the project and utilize franchise fees from Xcel to fund the street lighting as part of an overall street lighting project for the City. Evaluate reducing the storm sewer cost. . . Discussion of the pathway proposed along the north side of Chelsea Road included delaying construction until the Fallon Avenue overpass is constructed since a connection would be needed at that time. It was also discussed that the pathway would not serve anyone at this time. As an option, the Council could consider constructing the pathway as the properties along the north side of Chelsea Road develop. The assessment amount agreed to with the Monticello Industrial Park includes construction of the pathway and would therefore be a City cost along their property frontage if constructed at a later date. The Council should consider if they would assess a portion of the pathway cost to the other properties along Chelsea Road, as a separate public hearing would be required. The Monticello Industrial Park remains convinced that this path be constructed at this time. The path is located mostly on their property and they would like future property owners to fully understand what they are purchasing. This was shown on the detail for Chelsea Road when the agreement was signed. City staff is currently working with Xcel Energy on establishing a franchise agreement which may include a surcharge of funds of approximately $200,000 per year anticipated to start later this year. The funds are intended to be spread out over all the street lighting projects, existing and new. This amount cannot fund all ofthe street lighting project costs; therefore, it is recommended that the City sell bonds to pay for this cost as it would be difficult to catch up with the costs only utilizing the surcharge fee. This item is anticipated to be presented at the February 26,2007 Council meeting. If the Council decides to assess a portion of the street lighting costs to the properties along Chelsea Road, a separate public hearing would be required. The estimated street lighting cost for this project is $178,000. The Monticello Industrial Park would also like to have the lighting completed at this time for reasons as discussed with the pathway. We have analyzed the storm sewer system to potentially reduce assessments. We analyzed utilizing the existing ditches along Chelsea Road to accommodate runoff from the existing properties currently developed and determined that there would not be a significant change in the storm sewer costs/assessment and furthermore may not be feasible to leave the ditches when the pathway is eventually extended. The existing F: iJa","ghwrdproc\1007 Council A8f!ruJas\2-J 2-07 ccagi!ndal!lC~'.feaRdRecolJPldJltcHeartngA.uthPlansSptcs-Oll l07.doc 41 properties would still need a connection to the lateral storm sewer system if ditches are utilized. The storm sewer assessment is based on current and future drainage (from building expansion for example) that would enter the street system in which case ditches could not accommodate this drainage. We have, however, reduced the overall cost slightly assuming more infiltration from the undeveloped areas. A more significant change would involve revising current storm water requirements to include more onsite ponding or infiltration areas; however, the agreement with the Monticello Industrial Park was that they would not need to provide this. We have also analyzed using plastic storm sewer pipe, which would reduce the storm sewer cost by approximately $140,000. This would reduce the proposed business storm sewer assessment amount by approximately $2,000 per acre that drains to the street. This results in an approximate $700 to $6,200 reduction in the storm sewer assessment for existing businesses depending on the amount of their site drainage entering the storm sewer system. Utilizing plastic pipe is favorable for this project as the soils are sandy which is the ideal bedding or support needed for the pipe to last. It is recommended that utilizing plastic pipe be bid as an alternate to concrete storm sewer. City staff has discussed several options to minimize the expansion of the pond on the City's reservoir site since it may impact future expansion needs ifused for a future water treatment plant and/or public works facility for the water department. Staffhas discussed the following options to minimize the land impacts at the reservoir site: · Acquire additional easement from WSI. · Acquire easement for the landlocked property north of the reservoir site along the south side of the freeway which is currently being utilized for freeway signs. · Expand the pond adjacent to the apartment building along ih Street north of the freeway. · Evaluate utilizing the upstream ditch system south of Chelsea Road through the City's industrial park. · Utilize an underground storm sewer treatment system at the reservoir site. These alternatives could be evaluated in the future since the pond would not necessarily need to be constructed at this time, but would be needed as properties develop along the north side of Chelsea Road. We have separated the cost to expand the pond in the project cost estimate. In addition, the Wellhead Protection Committee recommended lining the pond due to concerns with vulnerable soils and proximity to Well No.3 and Well No.5. Lining has been included in the pond cost. We have also reduced the street cost significantly to account for reusing the existing aggregate base within the roadway. The estimated project cost totals $2,468,120 for the base project, not including the intersection realignment. The intersection realignment is estimated at $866,030. The total estimated project cost with the intersection realignment is $3,334,150. These costs include a 10% contingency and 28% indirect costs. The 10% contingency is included to account for items that may arise during final design. The 28% indirect is the percentage that we use on all projects during the feasibility report stage. On a project of this magnitude, it is likely that his percentage will be reduced. Assessments will be based on actual construction and indirect costs. The cost does not include the cost for acquiring easements for the pond or alternate ponding as C:lJJocuments and &ttingsldawn.grossinger\LocaJ SetringslT!?mpumry lmernel Flles\OrX3\A(jN rrM-('hi!JaealW&conPublidkurlngA.ulllPlatJSSpecs~021107.d{Jc 42 discussed above. The project is proposed to be funded through special assessments to the adjacent benefiting properties, City funds, and assessment agreements with the developers ofthe Monticello Industrial Park. The assessment agreement with the Monticello Industrial Park includes assessments for Chelsea Road, as well as the interchange project, and also included land that was donated for storm water ponds. The value of that land should be considered when reviewing the total project costs. City funding would consist of the street reconstruction costs above the standard non- residential street reconstruction rate, general utility adjustments including extension of the trunk sanitary sewer along Fallon Avenue, storm sewer up sizing costs, and pond expansion. A summary of the proposed project funding is shown below: REVISED Base Project- Chelsea Rd Reconstruction to Fallon Ave "~~~~~,~,~!~p~,?y~~~~~~--""""",,,,,---- Water Main .".."m....'............................." ...........................,,"'., ...............",.......,"'"'~-_._~.....,.."..".."... Sanitary Sewer .............."",..".,,,,,..............................'" ....................""", .......-..........""'..""'....-.-.............."" ~~?,~_~~~,~~=~s:.~",,(~?~:~~!~),,""'" "" Ponding TOTAL Assessments City Funds $556,900 $466,750 """""""~_.........._,.,',........"'., ......................"., ................"""..'''--.-................'''' .......... ........." $0 $76,400 i $0 $53,500 ----.. ..",,,"',,'" ---."""""""""-.-." ,,,,,,,,,,,,,,,.__..~.,., """",,.. _..""""''''""---"""'''",,,,,, ,--_..,,,,,,,,,"',,, $641,500* $322,060 ____...."",,,,,,,,,,___..,,..,,,,,,,,,,,,,,,,_m_..''''''''''''''''''___'''''''''''''''''''___-...""''''''''''---.....'''''' $0 $351,010 $1,198,400 I $1,269,720 Project Total $1,023,650 ........~.,.............." ......................."........................"".,.. $76,400 m.....y"'"....__.. ............." mmm.............."'mmm...........'.." $53,500 mm........."....."..'m.__................m'm_.m~...' $963,560 '..._.m........"'.."'..._ mm.............."m.....mm............"''''mmm...... $351,010 $2,468,120 REVISED Base AND Alternate Project Chelsea Road Reconstruction and Chelsea Road/Fallon Avenue Intersection Realignment Assessments City Funds $749,140 $93,200 $347,300 $362,850 $351,010 $1,903,500 I Project Total $1,484,420 $93,200 $347,300 $1,058,220 $351,010 $3,334,150 ",..~~~~::~P.E?Y~~,~,~~,~--""'''''''''''''' Water Main f"",,"'.,,-----...."""""""""'___m_...."""""""'....----.."."'''''''''..---.."""'''''''''.., Sanitary Sewer ............."'mmmmm.m'..."'...,..".'.'mmmmmm............,," mmmmm..............." mm_mm............."'m_ Storm Sewer - Rep ( concrete) ......."..""mmmm_......."'......."" m_m.................'" mmmm......"....,".....'._mm.~.......,',......., ponding TOTAL $735,280 mmm..............,,'" m.. m.................""mm.._m.....' ""'....mmmm..........,........_mm..... $0 mmmm...........,... mmmmm................."'__._. .........,...... mmmm................m.. $0 mm.......... "'" mmm.................,,, mmm..............."" $695,370* m..._.........,..""'... .._ m.......'""".."" ...m..m.............." mm.................."..m.m $0 $1,430,650 * The storm sewer assessment total was increased due to removal of the street lighting and pathway assessments to the Monticello Industrial Park, totaling approximately $180,000, which was shifted to fund the storm sewer costs since there is a lump sum assessment to the property. All other benefiting properties had a slight reduction in the storm sewer assessment amount. The above project costs include using concrete pipe for the storm sewer. As noted previously, it is recommended to bid utilizing plastic pipe as an alternate, which could decrease storm sewer costs by approximately $140,000 and reduce assessments between $700 and $6,200. 43 C lDocllrmmts and Set#71gs'Ja""-'VOssi7lgtrlf,,)Caf Serttrtgs\Temporary Internet PiksIOr.KJIAGN IT!J_Chl!fseaRdRec(}nPublicHe(1.ri7lgAllthPla11$SJ1l!cs~02 ~ 107.dDc Backllround Information Included with 1/22/07 Allenda Item: As part of the overall interchange reconstruction project, the reconstruction of Chelsea Road to an urban section was delayed until 2007. Construction was delayed since Chelsea Road would be used as part of the detour during some of the CSAH 18 construction. The overall agreement with the Monticello Industrial Park included a provision to commence reconstruction of Chelsea Roadfrom CSAH 18 to Fallon Avenue no later than the start of the 2007 construction season. As development continues in this area of the City, there is a need to upgrade the street and utility systems along the roadway. We have met with all of the property owners along Chelsea Road that would be assessed for the project, including the alternate project, to describe the proposed project to them and obtain their feedback. Attached is a summary of their comments. Prior discussions with the school district were initiated with the interchange project and staff is in the process of contacting them. As an alternate, the feasibility report includes reconstructing and realigning the Chelsea Road/Fallon Avenue intersection. Realigning the intersection could improve the intersection geometrics by creating 90 degree angles at the street approaches to reduce the curves entering the intersection and improve visibility and turning movements. Realigning the intersection now would allow for minimal disturbances to traffic flow through the intersection during construction of the future Fallon Avenue overpass and/or the future extension of the deep trunk sanitary sewer along Fallon Avenue to the south. In addition, storm sewer will be extended through the intersection to the City's pond at the reservoir site with the project, and it would be beneficial to realign the intersection at this time and only reconstruct the road one time, since the roadway will be excavated with the storm sewer construction. Realigning the intersection now would result in a cost savings of not having to reconstruct the roadway in the future for the Fallon Avenue overpass or the trunk sanitary sewer extension south along Fallon Avenue. The proposed infrastructure improvements would include reconstructing approximately 3,300 feet of Chelsea Road from where it was improved with the interchange project, approximately 800 feet west of CSAH 18, to Fallon Avenue with curb and gutter and storm sewer. With the alternate intersection alignment, Chelsea Road would be reconstructed approximately another 740 feet west of Fallon Avenue to an urban section with curb and gutter and storm sewer improvements. With the alternate, Fallon Avenue would be reconstructed approximately 450 feet to the south to an urban section. Chelsea Road would be constructed with two through lanes and a center left turn lane, 44 feet wide within the existing right-of-way/easement. No additional right-of-way or easement is anticipatedfor realigning Fallon Avenue, as the right-of-way was secured with the plat for the Fallon Office Complex. Storm sewer would extend within Chelsea Road to the pond at the City's reservoir site west of Fallon Avenue. Storm sewer stubs will be provided to accommodate drainage from adjacent properties to the north as development occurs. The pond would need to be expanded within the City's site and within the existing low area owned by WSI Industries to accommodate the future drainage area. Expanding the pond may impact fUture expansion needs at the City's site if it is used for a fUture water treatment plant and/or public works facility. An option could be to purchase the landlocked property north of the City's site along the freeway, which is currently being utilized for freeway signs. In addition, the pond would not necessarily need to be built at this time, but would be 44 C: IDocllment.v and SelltngsldaWl.grossinger\4x:al Seltlngs\Temporary Internet Ft/es\OLK3\..4GN nM-CJaeJSi!aRdRecOl1f'ubltdll:aringAuthPlan.f.~cs-OJ' 107, doc needed as properties develop along the north side of Chelsea Road. An easement for the pond expansion is needed from WSI Industries if an alternate adjacent ponding area cannot be utilized. It is anticipated that adjustments to the existing watermain and sanitary sewer systems would need to be made with the storm sewer construction. If the alternate intersection alignment is constructed at Fallon Avenue, it is proposed to extend the 36-inch trunk sanitary sewer south along Fallon Avenue just past the construction limits for future extension. An 8-foot bituminous or concrete pathway is proposed to extend along the north side of Chelsea Road from where it was extended with the interchange project. City staff has discussed utilizing a concrete pathway for ease of maintenance and improved aesthetics. However, only the bituminous pathway cost is included in the project costs. Street lighting costs along both sides of the roadways will also be included in the feasibility report. Landscaping improvements are not included with the project costs. The feasibility report does not include any boulevard tree planting. In the past, the Council has preferred to install trees as the property develops for commercial and industrial areas. If the Council would prefer to include trees, we can modifY the plans to include a tree planting program. The estimated project cost totals $2,813,100 for the base project, not including the intersection realignment. The intersection realignment is estimated at $919,300. The total estimated project cost with the intersection realignment is $3,732,400. These costs include a 10% contingency and 28% indirect costs. The cost does not include the cost for the pond easement ifneededfrom WSI Industries, which is estimated at $30,000. The project is proposed to be funded through special assessments to the adjacent benefiting properties, City funds, and assessment agreements with the developers of the Monticello Industrial Park. The assessment agreement with the Monticello Industrial Park includes assessments for Chelsea Road, as well as the interchange project, and also included land that was donated for storm water ponds. The value of that land should be considered when reviewing the total project costs. City funding would consist of the street reconstruction costs above the standard non-residential street reconstruction rate, general utility adjustments including extension of the trunk sanitary sewer along Fallon Avenue, storm sewer upsizing costs, and pond expansion. A summary of the proposed project funding is shown below: Base Project- Chelsea Road Reconstruction to Fallon Avenue Assessments City Funds I Project Total ...,~z:,'i~,::",~'!!E~~,~:'!!:'!,~~" $556,900 $542,200 $1,099,100 ........................, Pathway $100,000 $0 $100,000 ...........''''''''..'''....-..........'''..'''..''... .............."'............ ...........,.."..."""......... Water Main $0 $76,400 $76,400 ............"'..."".................................... ..............""............ ..........."'."............... ...........~ .......,."""'"",,......... ...............,.""''',,............... ~_.._. Sanitary Sewer $0 $53,500 $53,500 "."".......................""',,........ ................".......... ................."."'..... ..................,.,,"'.... .............".."............. ..............- ....".................. ...........-.-.....'" Storm Sewer $465,800 $868,300 $1,334,100 .............................."'......... ...............",,"',... .................."....... .................,.""".."".... Street Lighting $150,000 $0 $150,000 TOTAL $1,272,700 $1,540,400 , $2,813,100 , C: IDocu.mems al1d &tti1W.fl4a~.gross;ngl!rll.i)cal StuingsITempon,,,, In~nII!t Files\OLK3IAGN rfM-(."'J~lseaRd&c(}nPIjhltc1feariflgAu.thPlamSpecs.02 J 207.doc 45 Base AND Alternate Project Chelsea Road Reconstruction and Chelsea Road/Fallon Avenue Intersection Realignment ~1!fi'!,~,~,.!'!!P~l?~~'!!~,'Y,~~"",,,,,,, mmmmmmmmm'''''''' """"",,,... mmm_ Pathway mm...___.._...._....................... """""""",,,,..,.......... ..."""""",.........."'''' .................................. Water Main ............................................................."'..,...-- ...................................... """""""."., ....-.... ",,~'!..13f,~l!,2,~~~~~"'''''''''''''''''''''''''''''''''''''mmmmmmmm''''''''''''''''''''''''"",m Storm Sewer .... """""""""..".."."..........._.._.___...........m".. "",........"'..""."., ......_ ............................""""..".."""...m Street Lighting TOTAL $735,300 _.........................."..,",...,'~_.._........_._._..m........... $132,000 $0 $0 $525,900 $178,000 I $1,571,200 I $93, $347,300 $903,200 $0 $2,161,200 i Project Total $1,552,800 .................................."'''"...__._..---......~...,'''',..'" $132,000 ....,..................."" ......__~.~......,...'''.........m.....'...................... $93,200 ",m_mm.._ m...................."...m.' $347,300 .._.......~. "''''''.......",mmmmm_mm...............,...... $1,429.100 $178,000 $3,732,400 Assessments City Funds $817,500 """'..,.,......._._ m._m_......'.,..""".."'....'.'._m__ mmm....... ........",...... $0 ASSESSMENTS: Assessment methods to adjacent benefiting property owners include the following: Street Assessment: Includes $70/front foot based on the City's standard non-residential reconstruction rate plus 100% of the curb and gutter costs, which totals $84/front foot. The remaining street costs would be City funded. Corner lots at Fallon Avenue would be assessed 100% of the frontage along Chelsea Road (short side) and 50% ofthefrontage along Fallon Avenue (long side) where there is an access. Storm: Storm sewer is proposed to be assessed to each property based on the percentage of contributing drainage area directed to the storm sewer system. City funds would be utilized for costs associated with oversizing of the storm sewer system for the outlet pipe from the pond at the southeast corner of Chelsea Road and Fallon Avenue as well asfor the pond construction west of Fallon Avenue and the outlet costs for this pond. The storm sewer assessment rate is estimated at $12,500 per acre of contributing drainage area. Pathwav: The pathway along the north side of Chelsea Road is proposed to be assessed at 100% of the cost to properties along both the north and south sides of Chelsea Road on a front foot basis. The estimated pathway assessment rate is $15per front foot for bituminous and $24 per front foot for concrete, which would result in a total project cost increase of$57,000 for the base project and $70,000 for the base and alternate project if an 8-foot-wide concrete walk is used. The Council should consider contributing to the pathway costs similar to the sidewalk policy of a 75%/25% City split where regional benefits are considered. Street Liehtim!: Street lighting is proposed to be installed along the north and south sides of Chelsea Road and assessed at 100% of the cost to properties along both sides of Chelsea Road on a front foot basis. The estimated street lighting assessment rate is $20 per front foot. C:\DoC14meilts and Settingslda\m.grosstngerl(.Qcal Settings\Temporary {JUernet /f'ilesIOLK3\AG!tl rI'M-Cht?!seaRdRecolf.PuhlicJkaringAutIfPfaJl$.\pec.f-01J207'.doc 46 B. AL TERNA TIVE ACTIONS: 1. Conduct the Public Hearing, order the project, and authorize the preparation of plans and specifications for the reconstruction of Chelsea Road (CSAH 18 to west of Fallon Avenue, including the intersection realignment) and further evaluate ponding. 2. Conduct the Public Hearing, order the project and authorize the preparation of plans and specifications for the reconstruction of Chelsea Road (CSAH 18 to Fallon Avenue, not including the intersection realignment) and further evaluate ponding. 3. Conduct the Public Hearing but do not order the project at this time. C. STAFF RECOMMENDATION: It is the recommendation of the City Administrator to select Alternative No.1. As noted above, the agreement with the Monticello Industrial Park, Inc. stipulates that construction of these improvements commence no later than the start of the 2007 construction season. Designated as a collector road/frontage-type road within the City, Chelsea Road was planned to be upgraded to an urban section to meet the needs for growth within the City. Is it recommended to construct the alternate Fallon Avenue intersection realignment at this time to minimize disturbances with future improvements. Based on discussions with affected property owners and City staff, the Council should consider the following questions: 1. Would the City deed or sell the excess Fallon Avenue right-of-way to the adjacent property owner? 2. How will concerns regarding commercial zoning for the 33-acre parcel on the south side of Chelsea Road be addressed? 3. Would the Council like to study reconstructing Chelsea Road to Edmonson A venue? 4. Would the Council like to include boulevard tree planting in the project? D. SUPPORTING DATA: Revised Cost Estimate and Preliminary Assessment Roll 47 c: \lJocumt!nt.s and Settz"ngslda'MI.grossingu\Ux;al Stlllilgs\Temporary Intern(!t FiJe$\OLK3\AGN JTM~CM'St:aRd&co~licHe4,.in!{AElthPlansSpecs~021107.d(Jc Client: CITY OF MONTICELLO Project: Ch.I... Roed, Fellon to CSAH 18 WSB Project No.: 1627-63 Oale: 21812007 BASE PROJECT - CHELSEA ROAD RECONSTRUCTION No. Mal. No. Item Schedule A - Surface Improvements 1 2 3 4 5 6 ., II' 9 10 11 12 13 14 15 16 17 ,18 19 20 21 22 23 24 25 26 27 28 29 Units DIY Unit Pr1ce Total Pr1ce 2021.501 MOBILIZATION 2104.501 REMOVE CONCRETE CURB & GUTTER 2104.505 REMOVE BITUMINOUS PAVEMENT 2104.513 SAWING BITUMINOUS PAVEMENT(FULLDEPTH) 2105.501 COMMON EXCAVATION (EV) ,', .' '~,., ?+)!{:';Y'i.:\:li,i 2112.501 SUBGRADE PREPARATION 2211.501 AGGREGATE BASE CLASS ~MOD '" '< \',. 2331.604 BITUMINOUS PAVEMENT REci.AMA'rK:il't:::r\:;,:;",~~ 2350,501 TYPE MV3 WEARING COURSE MIXTURE (B) 2350.502 TYPE MV2 NON-WEARING COURSE MIXTURE (B) 2350.502 TYPE MV3 NON-WEARING COURSE MIXTURE (B) 2350,503 TYPE LV WEARING COURSE MIXTURE FOR DRIVEWAYS 2357.502 BITUMINOUS MATERIAL FOR TACK COAT 2504,602 ADJUST VALVE BOX 2506.522 ADJUST FRAME AND RING CASTiNG 2506,602 RECONSTRUCT MANHOLES 2521.602 TRUNCATED DOME PEDESTRIAN RAMP 2521.604 2" BITUMINOUS PATH,<"',,E',' ..c. :i",:,<<:iY:;;.,:i'i,S: :,.gl::;;': 2531.501 CONCRETE CURB & GUTTER DESIGN B618 2563.601 TEMPORARY TRAFFIC CONTROL 2564.531 SIGN PANELS TYPE C 2564.802 F&I SIGN PANEL TYPE D 2564.803 24" SOLID LINE WHITE - EPOXY 2564.603 4' DOUBLE SOLID LINE YELLOW - EPOXY 2564.603 4' SOLID LINE WHITE - EPOXY 2573.530 INLET PROTECTION TYPE C 2575.523 EROSION CONTROL BLANKET. CATEGORY 3 2575.605 SEEDING. MIX 150 (INCL, FERT, & MULCH) 2575.605 SEEDING, MIX 250 (INCL FERT, & MULCH) LUMP SUM 1.00 $47.900.00 $47,900.00 LIN FT 160.00 $4.00 $640.00 sa YD 940.00 $5,00 $4.700.00 ;;1:" ""';:iii::~::8;iA';;! ~~,~., :;;);!);t2:::.i::".:\t::~~;::'Li~:=: ROAD STA 33.30 $250.00 $8.325.00 t}::;:{,;r~~~j,:::!,~,::;,~ ,.; "',':}~~~~\?0l~1~~i:;::,:~~:'~~.,~:t?:::~t~;,;i\~=::'.~'~':~\~,;1:~~t/",=~.j~':.~!~I=~~~~ TON 1640.00 $62.00 $101,680.00 TON 2180.00 $52,00 $113.360.00 TON 2180.00 $52.00 $113.360.00 SO YD 580.00 $25,00 $14.500.00 GALLON 1960,00 $2,50 $4.950.00 EACH 10.00 $250.00 $2.500.00 EACH 6.00 $600.00 $3.600.00 EACH 3.00 $1.000.00 $3.000,00 EACH 8.00 $1.000,00 $8.000.00 ki~li:;,:ii:Dj,\~ti,?ifii j'::l,~~~!l:;~J~!!~~;:': ,$Q',yp:, :'~ ~ '<'~):!~~;:;I:~i(\~;:\" Q.(Kf"~~::~;~i::>:I~~~~;: S20\oQ ,:~ "I ~~i.tSl:*~]~L,'.'$O.Ot) LIN FT 6720.00 $11.00 $73,920,00 LS 1.00 $25.000.00 $25.000.00 sa FT 28.00 $40,00 $1.120,00 EACH 6.00 $300.00 $1,800.00 LIN FT 25,00 $15,00 $375,00 UN FT 5940.00 $0,90 $5.346,00 LIN FT 6770.00 $0.30 $2,031.00 EACH 38.00 $430.00 $16,340.00 SO YD 1000,00 $2,50 $2.500,00 ACRE 1,00 $600.00 $800.00 ACRE 3.00 $1.500,00 $4.500.00 No, Mal. No. Item Schedule B - Watermain 30 2504.601 TEMPORARY WATER SERVICE 31 2505.601 LOWER WATER MAIN 32 2504.602 CONNECT TO EXISTING WATER MAIN 33 2504,602 RELOCATE HYDRANT AND VALVE 34 2504.602 HYDRANT 35 2504.602 8" GATE VALVE AND BOX 36 2504.603 8" WATERMAIN OIP Cl. 52 36 2504.603 8" WATERMAIN DIP CL 52 37 2504,608 DUCTII.E IRON FITTINGS K\O 1627 -63\DuanlitylPrellmlnaryl 1627 -63 Feas Est - SKB-020507.xls TOTAL SCHEDUl.E A ~ 10 % CONTINGENCY- SUBTOTAL = 28% INDIRECT - TOTAL SURFACE IMPROVEMENTS COST = Units DIY LUMP SUM LUMP SUM EACH EACH EACH EACH LIN FT LIN FT POUNDS 1.00 3.00 5.00 2.00 3.00 8,00 75.00 240.00 1200.00 $5.000,00 $4.000,00 $1.000,00 $2.300.00 $2.250.00 $1,150,00 $28.00 $30.00 $2,00 TOTAL SCHEDUl.E B. 10 % CONTINGENCY = SUBTOTAL . 28% INDIRECT - TOTAL WATERMAIN COST = 21812007 $727.022.00 $72.702,20 $799.724,20 $223.922.78 $1.023.646,98 Unit Pr1ce $5,000.00 $12.000,00 $5.000,00 $4,600.00 $8.750.00 $9.200,00 $2.100.00 $7,200.00 $2.400.00 $54.250,00 $5,425.00 $59.675.00 $18.709.00 $76.384.00 Total Price Page 1 48 Client: CITY OF MONTICELLO Project: Chels.... Road. FaUon to CSAH 18 WSB Pro]act No.: 1827-63 Date: 2/812007 Unit Total No. Mat. No. Item Units Oly Price Price Schedule C - Sanitary Sewer 39 2104.501 REMOVE SEWER PIPE (SANITARY) UNFT 100.00 $10.00 $1.000.00 38 2503.511 8" PVC PIPE SEWER WI TRACER WIRE LINFT 450.00 $30.00 $13.500.00 41 2503.601 RECONSTRUCT OUTSIDE DROP LUMP SUM 2.00 $500.00 $1.000.00 39 2503.802 10')(8' PVC WYE EACH 3.00 $275.00 $825.00 40 2503.602 CONNECT TO EXISTING MANHOLES (SAN) EACH 3.00 $2.000.00 $6.000.00 41 2503.602 CONNECT TO EXISTING SANITARY SEWER EACH 10.00 $1.000.00 $10.000.00 42 2503.802 SEWER RISER UNFT 40.00 $30.00 $1.200.00 43 2503.603 TELEVISE SANITARY SEWER LIN FT 240.00 $2.00 $460.00 44 2621.601 DEWATERING LS 1.00 $5.000.00 $5,000.00 TOTAL SCHEDULE C . $38.005.00 10 % CONTINGENCY' $3,800.50 SUBTOTAl. . $41,805.50 28% INDIRECT - $11.705.54 TOTAl. SANITARY SEWER COST' $53.511.04 Unit Total No. Mat. No. Item Units Oly Price Pr1C8 Schedule 0 - Slo"" Sewer 45 2105.511 UNCLASSIFIED EXCAV"'TION IPONDIAND LINING CU YO' 34000.00', ;'Ii ',':r,i;~ $7.20 . ~,800.00 48 2211.501 AGGREGATE BASE CLASS 5 MOD TON 725.00 $9.50 $8.887.50 47 2331.604 BITUMINOUS PAVEMENT RECLAMATION SOYD 1100.00 $4.50 $4.950.00 48 2350.501 TYPE MV3 WEARING COURSE MIXTURE (B) TON 100.00 $62.00 $6,200.00 49 2350.502 TYPE MV2 NON-WEARING COURSE MIXTURE (B) TON 130.00 $52.00 $8.760.00 50 2350.502 TYPE MV3 NON-WEARING COURSE MIXTURE (B) TON 130.00 $52.00 $8,760.00 51 2357.502 BITUMINOUS MATERIAL FOR TACK COAT GALLON 60.00 $2.50 $150.00 52 2501.602 TRASH GUARD FOR 18" PIPE APRON EACH 1.00 $400.00 $400.00 53 2501.602 18' RC PIPE APRON EACH 1.00 $550.00 $550.00 54 2501.802 TRASH GUARD FOR 60" PIPE APRON EACH 1.00 $2.500.00 $2,500.00 55 2501.802 80" RC PIPE APRON WI PILING EACH 1.00 $8.000.00 $8.000.00 56 2502.541 6" PERF PVC PIPE DRAIN LIN FT 1280.00 $10.00 $12.800.00 57 2503.541 15' RC PIPE SEWER DESIGN 3006 CL V LIN FT 803.00 $28.00 $22,484.00 58 2503.541 18' RC PIPE SEWER DESIGN 3006 CL V UNFT 104.00 $33.00 $3.432.00 59 2503.541 21" RC PIPE SEWER DESIGN 3008 CL III LIN FT 34.00 $35.00 $1.190.00 80 2503.541 24" RC PIPE SEWER DESIGN 3006 CL III LIN FT 426.00 $37.00 $15,762.00 81 2503.541 30" RC PIPE SEWER DESIGN 3006 CL III LIN FT 400.00 $50.00 $20.000.00 62 2503.541 36" RC PIPE SEWER DESIGN 3008 CL III LIN FT 300.00 $85.00 $25.500.00 63 2503.54 1 42' RC PIPE SEWER DESIGN 3006 CL III LIN FT 582.00 $100.00 $58,200.00 84 2503.541 48" RC PIPE SEWER DESIGN 3006 CL III UN FT 619.00 $110.00 $68.090.00 65 2503.541 54" RC PIPE SEWER DESIGN 3006 CL III LIN FT 1380.00 $130.00 $179.400.00 88 2503.541 60' RC PIPE SEWER DESIGN 3006 CL III UN FT 67.00 $150.00 $10,050.00 67 2503.603 TELEVISE STORM SEWER LIN FT 4811.00 $2.00 $9.622.00 68 2506.501 CONST DRAINAGE STRUCTURE DESIGN 48-4020 LIN FT 24.57 $250.00 $8,142.50 69 2508.501 CONST DRAINAGE STRUCTURE DESIGN 60-4020 UN FT 27.99 $350.00 $9,798.50 70 2506.501 CONST DRAINAGE STRUCTURE DESIGN 72-4020 LIN FT 17.06 $450.00 $7.677.00 71 2506.501 CONST DRAINAGE STRUCTURE DESIGN 84-4020 LIN FT 90-63 $500.00 $45,315.00 72 2508.501 CONST DRAINAGE STRUCTURE DESIGN 96-4020 LIN FT 14.62 $700.00 $10.234.00 73 2506.501 CONST DRAINAGE STRUCTURE DESIGN 108-4020 LIN FT 28.40 $ 1 .200.00 $34.080.00 74 2506.501 CONST DRAINAGE STRUCTURE DESIGN 120-4020 LIN FT 30.43 $1,500.00 $45,645.00 75 2506.502 CONST DRAINAGE STRUCTURE DESIGN SPECIAL 1 (2X3) EACH 22.00 $1.200.00 $28.400.00 76 2506.502 CONST DRAINAGE STRUCTURE DESIGN SPECIAL 2 (OUTLET CONTROL) EACH 1.00 $7.000.00 $7.000.00 77 2508.502 CONST DRAINAGE STRUCTURE DESIGN SPECIAL 3 (OUTLET CONTROL) EACH 1.00 $5.000.00 $5.000.00 78 2506.516 CASTING ASSEMBLY (MANHOLE) EACH 19.00 $400.00 $7.600.00 79 2508.518 CASTING ASSEMBLY (CATCHBASIN) EACH 27.00 $450.00 $12.150.00 80 2511.501 GROUTED RIPRAP CLASS III (WI GEOTEXTILE FABRIC) CUYD 40.00 $100.00 $4,000.00 81 2511.804 GEOTEXTILE FILTER TYPE IV SOYD 40.00 $3.00 $120.00 TOTAL SCHEDULE D - 10 % CONTINGENCY' SUBTOTAl. . 28% INDIRECT' TOTAl. STORM SEWER COST' $933,847.50 $93.384.75 $1,027,012.25 $287.583.43 $1.314.575.68 TOTAL SCHEDULE A,a,C,D. 10 % CONTINGENCY. SUlITOTAL . 28% INDIRECT. SUBTOTAL PROJECT COST. $1.752.924.50 $175,2VU5 $1,828,218.95 $539.800.75 $2,488,117.70 K:101827-6310uentitylPrelimin.ry\1627-63 Fe.s Est - SKe.020507.xls 2/812007 P.ge 2 49 Client CITY OF MONTICELLO Project: Chelsea Road, Fallon to CSAH 18 WSB Project No.: 1627.63 Date: 2/8/2007 ALTERNATE ONE - CHELSEA ROAD / FALLON AVENUE INTERSECTION REALIGNMENT No. Mat No. Item Schedule A - Surface Improvements 1 2021.501 MOBILIZATION 2 2104.505 REMOVE BITUMINOUS PAVEMENT 3 2104.513 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) 4 2105.501 COMMON EXCAVATION (EV) . .', 5 2112.501 SUBGRADE PREPARATION 6 2211.501 AGGREGATE BASE. ClASS 5 MOD ... 7 2331.e04BITUMINOUS PAVEMENT REClAMATION 6 2350.501 TYPE MV3 WEARING COURSE MIXTURE (B) 9 2350.502 TYPE MV2 NON-WEARING COURSE MIXTURE (B) 10 2350.502 TYPE MV3 NON-WEARING COURSE MIXTURE (B) 11 2350.503 TYPE LV WEARING COURSE MIXTURE FOR DRIVEWAYS 12 2357.502 BITUMINOUS MATERIAL FOR TACK COAT 13 2504.602 ADJUST VALVE BOX 14 2506.522 ADJUST FRAME AND RING CASTING 15 2506.602 RECONSTRUCT MANHOLES 16 2521.602 TRUNCATED DOME PEDESTRIAN RAMP 17 2521.604 2. BlnJMINOUS PATH '." 18 2531.501 CONCRETE CURB & GUTTER DESIGN B618 19 2563.601 TEMPORARY TRAFFIC CONTROL 20 2564.531 SIGN PANELS TYPE C 21 2564.602 F&I SIGN PANEL TYPE 0 22 2564.603 24" SOLID LINE WHITE - EPOXY 23 2564.603 4" DOUBLE SOLID LINE YELLOW - EPOXY 24 2564.603 4" SOLID LINE WHITE" EPOXY 25 2565.6034" NON-METALLIC CONDUIT 26 2565.603 INSTALL 4" NON-METALLIC CONDUIT 27 2573.530 INLET PROTECTION TYPE C 28 2575.523 EROSION CONTROL BLANKET, CATEGORY 3 29 2575.605 SEEDING, MIX 250 (INCL. FERT. & MULCH) Unit Total Units Oly Prlce Price LUMP SUM 1.00 $17,000.00 $17,000.00 sa YO 450.00 $5.00 $2,250.00 L1N FT 200.00 $3.00 $600.00 cuve 7500.00 $6.00 $45,000.00 ROAD STA 14.10 $250.00 $3,525.00 TON 1400.00 $9.50 $13,3OC).00 sa YO i,",' .6300.00 $4.50 "'$28,350.00 ':.' TON 675.00 $62.00 $41,850.00 TON 900.00 $52.00 $46,800.00 TON 900.00 $52.00 $46,800.00 sa YO 450.00 $25.00 $11,250.00 GALLON 410.00 $2.50 $1,025.00 EACH 6.00 $250.00 $1,500.00 EACH 3.00 $600.00 $1,600.00 EACH 3.00 $1,000.00 $3,000.00 EACH 2.00 $1,000.00 $2,000.00 save 0.00 $20:00 $0.00 L1N FT 2300.00 $11.00 $25,300.00 LS 1.00 $15,000.00 $15,000.00 SOFT 24.00 $40.00 $960.00 EACH 6.00 $300.00 $1,800.00 L1N FT 120.00 $15.00 $1,800.00 L1N FT 1200.00 $0.90 $1,080.00 L1N FT 3000.00 $0.30 $900.00 L1N FT 390.00 $7.00 $2,730.00 L1N FT 390.00 $4.00 $1,560.00 EACH 19.00 $430,00 $8,170.00 sa YO 200.00 $2.00 $400.00 ACRE 1.00 $1,500.00 $1,500.00 TOTAL SCHEDULE A = $327,250.00 10 % CONTINGENCY = $32,725.00 SUBTOTAL = $359,975.00 28% INDIRECT = $100,793.00 TOTAL SURFACE IMPROVEMENTS COST = $460,768.00 Unit Total Units Qty Prlce Price EACH 2.00 $2,300.00 $4,600.00 EACH 1.00 $2,250.00 $2,250.00 EACH 2.00 $1,150.00 $2,300.00 L1N FT 60.00 $30.00 $1,800.00 POUNDS 500.00 $2.00 $1,000.00 TOTAL SCHEDULE B = $11,950.00 10 % CONTINGENCY = $1,195.00 SUBTOTAL = $13,145.00 28% INDIRECT = $3,680.60 TOTAL WATERMAIN COST = $16,825.60 No. Mat No. Item SChedule B - Watermaln 30 2504.602 RELOCATE HYDRANT AND VALVE 31 2504.602 HYDRANT 32 2504.602 8" GATE VALVE AND BOX 33 2504.6038" WATERMAIN DIP CL 52 34 2504.608 DUCTILE IRON FITTINGS K:I01627-63IQuantilyIPrellmlnaryl1627-63 Feas Est - SKB-020507.xls 2/8/2007 Page 3 50 Client: CITY OF MONTICELLO Project: Chelsea Road, Fallon to CSAH 18 WSB Project No.: 1627~3 Date: 2/8/2007 No. Mat. No. Item Schedule C - Sanitary Sewer 35 2503.511 36' CCFRPM PIPE SEWER 36 2503.602 CONNECT TO EXISTING SANITARY SEWER 37 2503.603 TELEVISE SANITARY SEWER 38 2506.516 CASTING ASSEMBLY (MANHOLE) 39 2506.603 CONST 84" DIA SAN SEWER MANHOLE 40 2621.601 DEWATERING Unit Total Units Qty Price Price UN FT 490.00 $220.00 $107,800.00 EACH 1.00 $1,000.00 $1,000.00 UN FT 490.00 $2.00 $980.00 EACH 2.00 $450.00 $900.00 UN FT 8000 $600.00 $48,000.00 LS 1.00 $50,000.00 $50,000.00 TOTAL SCHEDULE C = $208,680.00 10 % CONTINGENCY = $20,868.00 SUBTOTAL = $229,548.00 28% INDIRECT = $64,273.44 TOTAL SANITARY SEWER COST = $293,821.44 Unit Total Units Qty Price Price UN FT 760.00 $10.00 $7,600.00 LiN FT 486 00 $28.00 $13,608.00 UN FT 169.00 $35.00 $5,915.00 UN FT 46.00 $50.00 $2,300.00 UN FT 701.00 $2.00 $1,402.00 UN FT 17.94 $250.00 $4,485.00 UN FT 26.06 $350,00 $9,121.00 EACH 12.00 $1,200.00 $14.400.00 EACH 16.00 $450.00 $7,200.00 EACH 3.00 $400.00 $1,200.00 TOTAL SCHEDULE 0 = $67,231.00 10 % CONTINGENCY = $6,723.10 SUBTOTAL = $73,954.10 28% INDIRECT = $20,707.15 TOTAL STORM SEWER COST = $94,661.25 TOTAL SCHEDULE A,B,C,O.. $615,111.00 10 % CONTINGENCY" $61,511.10 SUBTOTAL .. $676,622.10 26% INDIRECT = $189,454.19 TOTAL PROJECT COST = $866,076.29 No. Mat. No. Item Schedule D - Storm Sewer 41 2502.541 6" PERF PVC PIPE DRAIN 42 2503.541 15" RC PIPE SEWER DESIGN 3006 CL V 43 2503.541 21" RC PIPE SEWER DESIGN 3006 CL III 44 2503.541 30' RC PIPE SEWER DESIGN 3006 CL III 45 2503.603 TELEVISE STORM SEWER 46 2506.501 CONST DRAINAGE STRUCTURE DESIGN 48-4020 47 2506.501 CONST DRAINAGE STRUCTURE DESIGN 60-4020 48 2506.502 CONST DRAINAGE STRUCTURE DESIGN SPECIAL 1 (2X3) 49 2506.516 CASTING ASSEMBLY (CATCHBASIN) 50 2507.516 CASTING ASSEMBLY (MANHOLE) K:\01627-63\Quantity\Preliminaryl1627-63 Feas Est - SKB-020507.xls 2/8/2007 Page 4 51 "''''00 '<I' 00 '" 0 0)0') MI.O C'J CD CO 00'<1' :g~ ~ 00 '<I''<I'LO ": '" '" LO N"""O'>-.;;t..q-"'l;f-U"J 01'- '" '<I'c-JO 00 ,...: ci W r--:"";ai~~Nc:i '<I'cci '<1''''': .,; 0 .-"'LO '" '<too 0 NC\lNO)'I"""NU".l 00 '" 00'<1' '" t- "''''.- W ;;;; '" 'r"'" N ......WN N...... WW (A-......ff;t-...... WWW W WWW WWW W W "''<t.- '" CO II> 0 C)...... 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