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City Council Minutes 12-27-1984 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL December 27, 1984 - 5:00 P.M. A special meeting of the City Council called by Mayor Grimsmo was duly held at 5:00 P.M., December 27, 1984, in the City Hall. Members Present were: Grimsmo, Maus, Blonigen. Members Absent were: Maxwell and Fair. Also present were Public Works Director, John Simola; City Attorney, Gary Pringle; and Administrator Eidem. The Mayor called the meeting to order and indicated that the sole reason for the meeting was to discuss the acquisition of Lots 2, 31 4, and 5 of Block 12, Original Plat of Monticello, as a potential site for Fire Hall construction. The Mayor asked Public Works Director Simola to report on the soils testing. Mr. Simola stated that the report found that the site was primarily loose and sandy and would require excess compaction in the area of the building and under portions of the parking lot and driveways. He indicated that the testing firm had recommended a stripping away of the top 11, to 3 feet to be replaced by higher quality fill suitable for construction. Simola also noted that there had been some contamination discovered and that the contamination was primarily fuel oil. He indicated that the extent of the contamination cannot really be gauged without further testing, and perhaps some excavation. Simola stated that the type of clean up that would be required from the Pollution Control Agency cannot be determined until the extent of the contamination is known. He noted that some clean up may simply be a removal of the contaminated material and then stock piled at some place where it will not leach into the subsurface. He indicated that other processes have been to spread polluted material under roadways in thin layers. He noted that the worst case would be that the contaminated material would have to be hauled to a hazardous waste site. In his estimation, the severity of this problem would not require the latter type of solution. Simola did note that the City must notify the Pollution Control Agency, and that if we chose not to contact them at this time, the soils testing lab is required by state regulations to notify PCA. There was a brief discussion of the other bulk fuel plants in the area. It was the Council's position that the City would report to the PCA only insofar as it concerns the site that the City is interested in acquiring. The Council felt that it was not their position to report any other bulk plants on the basis of mere speculation derived from the results of the tests on this particular site. They agree that if the PCA responds and initiates investigations of the other bulk plants, then that is the PCA's responsibility and not the City Council's. Special Council Minutes - 12/27/84 The Mayor asked City Attorney Pringle to go over some of his concerns about the transfer of the parcel. Pringle noted that there is currently a mortgage against the property, the status of which must be clearly determined prior to the closing of any contract for the land. Pringle also noted that there are outstanding assessments against the property that the current owner, Jean Brouillard, has indicated should be City responsibility. Mr. Pringle noted that there is a lease agreement with Jim Moores, the operator of JM Oil, who is currently occupying the site. Pringle noted that an agreement will have to be drafted so that Jim Moores will legally release his right to use the land. There was a brief discussion with respect to the City assisting in Mr. Moores' relocation effort. Eidem commented that he had met with Mr. Moores and indicated that the City would do whatever it could to help him secure an alternate site for his bulk plant. Eidem indicated that a proposal would be made to the HRA, who may be able to investigate a land trade. Councilmember Maus raised a question of the City purchasing some land in the industrial park and leasing it to various bulk fuel operators. It was Maus's opinion that regulatory control could be more closely monitored under a City owned project and that a lease arrangement of this sort might further facilitate the relocation of not only the existing bulk plant, but of all bulk plants encroaching on the Downtown Commercial Business District. Eidem agreed to investigate this procedure further. With respect to actual relocation assistance for Mr. Moores, the Council authorized Pringle to offer a total of 8 hours usage of the City's loader, including an operator. Mr. Simola felt that the assistance we could lend would be limited to use of the loader and stated that he was willing to provide those 8 hours. Pringle returned the discussion to the matter of the contamination. He indicated that Mr. Brouillard expected to receive his selling price with no future obligations. Pringle indicated that Brouillard wished to receive the selling price and be freed from any responsibility towards contamination clean up or other alterations that may have to be made to the site to make it suitable for development. Concern was expressed by all Council members as to the extent of clean up that might be required once the ground is opened up. Councilmember Blonigen felt there should be some kind of spending limit dedicated to clean up that the City would be responsible for, that should the extent of the clean up exceed this particular limit, the City would have the right to go back to the seller to recover some expense. Pringle indicated that Mr. Brouillard simply wouldn't sign the contract under any other condition than as stated. Pringle noted that Brouillard has made an offer to the City and expressed his terms. The City now has to react to that offer and choose to either accept or reject the conditions. Pringle stated it was his understanding from a meeting with Mr. Brouillard that should the City reject the conditions at this time, the sale is off. Mayor Grimsmo -2- Special Council Minutes - 12/27/84 turned the discussion back to consideration of the offer and stated that the Council was faced with the decision of finding a site for the Fire Hall. He felt that the site in question was a good site for Fire Hall location and that the offer was an acceptable one in spite of the unknown factor relating to contamination. Reiterating his position on governmental conscience taking the lead to secure clean up of the site, he indicated he would like to see the Council take action on this acquisition. He felt that constant debate over every detail could jeopardize the sale of the land and postpone the construction of the Fire Hall in the long run. He felt that enough time had been put into site selection and that a suitable site had been found, and we should investigate the final sale. City Attorney Pringle wished to raise one more concern that he had with reference to certain qualifications that showed in the abstract. Pringle indicated that Mr. Brouillard had accepted a deed when he bought the property subject to certain limitations, and that the deed conveyed to the City would carry those same limitations. He noted that his primary concern came from a phrase that indicated the property was subject to certain limitations which may not be recorded but which might be revealed by a survey. He indicated that he didn't anticipate any problems from such a qualification to the deed, and the Council concurred. Motion by Maus to acquire Lots 2, 3, 4, and 5, in Block 12, Original Plat of the City of Monticello, for the sum of $100,000.00, and further, authorizing City Attorney Pringle to negotiate and prepare a Contract for Deed addressing all City concerns and to be executed by the Mayor and City Administrator. Motion was duly seconded by Blonigen. Voting in favor: Grimsmo, Maus, and Blonigen. Voting in opposition: None. Motion passed unanimously. There being no other business to be held in this special meeting, the Mayor adjourned the meeting. r Thomas A. Eide City Administrator -3-