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City Council Minutes 09-14-1998J MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, September 14, 1998 - 7 p.nn. Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen Members Absent: None 2. A. A royal of minutes of the in held Au ust 24 1998. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO APPROVE THE MINUTES OF THE SPECIAL MEETING HELD AUGUST 24, 1998, AS WRITTEN. Voting in favor: Bill Fair, Bruce Thielen, Roger Carlson. Abstaining: Clint Herbst, Brian Stumpf. Motion carried. B. Annrpyal of minutes of the regular meeting held. ,~ug~, 1998. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRIAN STUMPF TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD AUGUST 24, 1998, AS WRITTEN. Motion carried unanimously. 1 C. Approval of minutes of the. ecial meeting held August 31, ~ ~,~$. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY ROGER CARLSON TO APPROVE THE MINUTES OF THE SPECIAL MEETING HELD AUGUST 31, 1998, AS WRITTEN. Motion carried unanimously. 3. Consideration of adding items to the agc~da. A. ate o i n r latin to ro ert 1 t 225 Front Street. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRUCE THIELEN TO TABLE DISCUSSION OF THIS ITEM UNTIL THE NEXT COUNCIL MEETING. Motion carried unanimously. B. Consideration of bids and award of contract. for narking lot improvements to the downtown parking lo_„>:.near the old water tower~~.d for the new parking lot for Fre Fields in Meadow Oa Pr 'ect No. 98-21C. Public Works Director John Simola reported that three bids were received ranging from the low bid of $66,363.25 received from Bauerly Brothers, Inc., to a high bid of $102,680.25. Page 1 Council Minutes - 9/14/98 A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO AWARD THE CONTRACT FOR THE PARKING LOT IMPROVEMENTS TO BAUERLY BROTHERS, INC., FOR THEIR BID OF $66,363.25. Motion carried unanimously. C. Discussion re ardin ro osed rav ~ M nticello Townshi . Monticello resident Scott Hill requested that Council discuss the gravel pit proposed in the township. He stated that increased truck traffic and crushing operations near city limits will have a negative impact on city residents and asked that Council consider sending a letter to the Township stating their opinion and/or concerns regarding the effects of the gravel pit. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY ROGER CARLSON TO AUTHORIZE CITY STAFF TO STUDY THE PROPOSED GRAVEL PIT AND MAKE A RECOMMENDATION TO COUNCIL REGARDING POSSIBLE ALTERNATE TRUCK ROUTES. Motion carried unanimously. 4. Citizens„r,2,mmen slnetitions, rye uests, and complaints. None. ~.. 5. Consent agenda. Mayor Bill Fair requested that items SD and SE be removed from the consent agenda for discussion. A. Consideration of relimin final lat a royal fore ' r h usin and church. A licant Church of H Recommendation: Approve the preliminary and final plat for the Church of St. Henry based on a finding that the plat is in compliance with the approvals granted as a part of the planned unit development process. B. Consideratio r 1 tion acce tin bids an in contract - 7th Stree im rove Recommendation: Approve a resolution accepting bids and awarding the contract to Richard Knutson, Inc., from Savage, MN, for a bid of $838,205.82. SEE RESOLUTION 98-36. u C. Consideratio of reauest for an amendment to_t.~~ PZM zoning district or, in the alternative an n he zonin ma to - fr rn PZM to allow a restaurant use. A licant man LLC. Due to the inadvertent omission of one of the nearby property owners from the public hearing process, this item was tabled and returned to the Planning Commission. Page 2 Council Minutes - 9/14/98 D. Consideration of a request for an amendment to a conditional use Veit Pi TD within the CCD zoning distr~et to allow Cub Foods to install adrive-up wax dt~~w for its pharmacy. Applicant, CtI~ Toads. This item was removed from the consent agenda for discussion. E. Consideration of ch nee order # 15 -Wastewater Treatment ~~~,pt Expand, Project 93-14C. This item was removed from the consent agenda for discussion. F. Consideration of settine public hearing date for adoption of 1999 budget and tax ~. Rccommendation: Set a special City Council meeting date for Wednesday, December 9, 1998, at 5 p.m., for the public hearing an adoption of the 1999 budget and tax levy, and set the continuation date for the public hearing far Wednesday, December 16, 1998, at 5 p.m. G. Consideration of ap~roving_iss~nce of off-sale beer license - Tote . Recommendation: Approve the issuance of two off-sale beer licenses for the Total Mart convenience stores being purchased by Avanti Petroleum, Inc. H. Consideration of a resolution ca.llixdg for a public hearing on sanitalyy w r, water, and storm sewer extensions. t the Wildwood Ridge/Rolling_Woo S v 1 pment areas. Recommendation: Approve a resolution accepting the petition, ordering a feasibility study, and calling for a public hearing on September 28, 1998, on sanitary sewer, water, and storm sewer extensions to the Wildwood Ridge/Rolling Woods development areas. SEE RESOLUTION 98-37. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO APPROVE ITEMS SA, SB, SC, S~', SG, AND SH OF THE CONSENT AGENDA AS RECOMMENDED. Motion carried unanimously. 6. Consideration of items remav d from the consent agenda far , iscussion. SD. Consi e f re nest for an amendm nditional use ermit P within the CCD zanin d' i allow Cub Foods to ins 11 drive-u window for its pharmacy. Annlicant__~'~~ Foods. Chief Building Official Fred Patch reported that Cub Foods has requested an amendment to its planned unit development to allow installation of a drive-up window and canopy for its pharmacy on the east side of the building. Concerns discussed involved traffic circulation and the elimination of nine parking spaces to accommodate the drive-through lane. The access to the drive- up lane would be from the connman driveway for the east area parking and truck circulation; however, because few vehicles would be able to make the 180° turn from the driveway aisle into the drive-up lane, the plan anticipated that vehicles Page 3 Council Minutes - 9/14/98 heading from the main vehicle entrances to the drive-up would proceed south onto the Country Grill lot, cross over, and turn north to the Cub driveway at the south end of the parking area. A revised design, which was recommended by the Planning Commission, showed a cut in the parking bay near the entrance to the drive-up lane, which would avoid the need for retail traffic to use the Country Grill parcel and would reduce the temptation to cut through unused parking stalls. However, the Chief Building Official noted that this would not address the concern over the location of vehicles exiting the drive-up lane. It was suggested that the traffic flow be reversed, which would require a product delivery system such as the pneumatic tubes used by drive-up banking facilities. AFTER DISCUSSION, A MOTION WAS MADE BY BILL FAIR AND SECONDED BY CLINT HERBST TO APPROVE AN AMENDMENT TO THE CONDITIONAL USE PERMIT PUD TO ALLOW ADRIVE-UP WINDOW ON THE CUB FOODS SITE, CONTINGENT ON THE FOLLOWING CONDITIONS: I. THE SITE PLAN IS REVISED PER PLANNING COMMISSION RECOMMENDATION (ELIMINATE PARKING SPACES WITH TRAFFIC FLOWING THROUGH THE DRIVE-UP LANE REMAINING SOUTH TO NORTH) TO RESOLVE POTENTIAL TRAFFIC CIRCULATION CONFLICTS. 2. THE CONDITIONAL USE PERMIT IS FOR THE USE OF THE DRIVE-UP PHARMACY ONLY. FUTURE PROPOSED CHANGES TO THE USE OF THE DRIVE-UP WOULD REQUIRE AMENDMENT TO THE CONDITIONAL USE PERMIT. Motion carried unanimously. Motion is based on the finding that the project would continue to meet the objectives and expectations of the City's Downtown Revitalization Plan. SE. s' n f h e order #15 - Wa r Tr atment Plant Ex Project 93-14C. Public Works Director Jahn Simola reported that Change Order No. 15 involved approximately 19 changes to the project for a total cast of $56,041. Previously, A & P requested a blanket contract extension from October 15 to December 31, 1998, which would require an additional $72,000 in overhead casts. However, City staff and HDR did not support the cost increase or the blanket extension. Consequently, the contractor wished to remove the contract extension and dollar increase for overhead but reserved their right to make a claim in the future. Page 4 Council Minutes - 9/14/98 AFTER DISCUSSION, A MOTION WAS MADE BY BILL FAIR AND SECONDED BY BRIAN STUMPF TO APPROVE CHANGE ORDER NO. I S AS DRAFTED, INCLUDING THE STATEMENT BY A & P THAT THEY DO NOT WAIVE ANY RIGHTS OR FORFEIT ANY TIME EXTENSION CLAIMS. Motion carried unanimously. 7. Public hearing and consideration to annrove a resolution ~c~c~p~g the modified Redevelopment Plan for Central Monticello Redevelopment Proje~x 1~Q,~; n establishing within Proiect No.,-1 TIF District No. 1-25 and adouting the re]~.t~~ "~.~ P~~n th~r~fo 1 Economic Development Director Ollie Koropchak reported that TIF District No. 1-25 is an economic district created for a manufacturing company which will lease the building from Blue Chip Development Company. The TIF assistance will be passed to the tenant, B and B Metal Stampings, Inc., which currently employs five full-time positions and projects to hire an additional three to five full-time employees within two years at an average hourly wage of $14.10. It was noted that the HRA agreed to pay-as-you-ga TIF assistance far site improvements in an amount not to exceed $32,000 Net Present Value aver the life afthe 11-year district. They also agreed to make the local match up front, which will eliminate the HACA penalty to the City. Mayor Fair opened the public hearing. There being no public comment, the public hearing was closed. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO APPROVE A RESOLUTION ADOPTING THE MODIFIED REDEVELOPMENT PLAN FOR CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND ESTABLISHING TIF DISTRICT NO. 1-25 AND ADOPTING THE RELATED TIF PLAN THEREFOR. Motion carried unanimously. SEE RESOLUTION 98-38. Consideration of a resolution acce tin bids and in c ntract -Monte Club sanit sewer extension. City Engineer Bret Weiss reported that this project was bid on August 21, with the lowest responsible bid from Molitor Excavating of St. Cloud, Minnesota, at a base bid of $23,571.50 and an alternate bid of $8,201.50 for a possible total construction cast of $31,773; however, due to annexation negotiations, the project was not awarded. He noted that Bruce Gagnelius indicated on Friday, September 11, that he was close to reaching an agreement with the Township regarding annexation. It was suggested that Council could award the project contingent on the Township and Mr. Gagnelius reaching an agreement. Page 5 Council Minutes - 9/14/98 A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO APPROVE A RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE MONTE CLUB SANITARY SEWER IMPROVEMENT PROJECT CONTINGENT ON AN AGREEMENT WITH THE TOWNSHIP AND THE NECESSARY CITY SECURITIES BEING PROVIDED. BASE BID OR BASE BID PLUS ALTERNATE # 1 TO BE DETERMINED BY THE OWNER. Motion carried unanimously. SEE RESOLUTION 98-39. 9. Consideration of a re uest for a co rmit within the CCD zonin distric to allow adrive-u bankin facilit and considera ' f im le subdivision. A licant Marquette Bank. Deputy City Administrator Jeff O'Neill reported that Marquette Bank has applied for a conditional use permit to allow the construction of a new bank building with adrive-up facility on their current property locatd at Sixth and Walnut Streets. In order to nneet the 40% lot coverage requirement, Marquette Bank also requested a simple subdivision of the property. The Planning Commission recommended approval of the conditiaztal use permit and the sinnple subdivision. A MOTION WAS MADE BY ROGER CARLSON AND SECONDED BY BRUCE THIELEN TO APPROVE THE CONDITIONAL USE PERMIT FOR ADRIVE-UP FACILITY SUBJECT TO THE FOLLOWING CONDITIONS: 1. SITE PLAN AMENDMENTS TO ILLUSTRATE COMPLIANCE WITH THE 40% LOT COVERAGE STANDARD THROUGH EITHER OR BOTH OF THE FOLLOWING, OR OTHER MEANS: A. SUBDIVIDE THE PARCEL CREATING A NEW LOT/SITE THAT MEETS THE 40% LOT COVERAGE REQUIREMENT. B. GRANT THE CITY A 7-FT ROADWAY, PEDESTRIAN, AND UTILITY EASEMENT ALONG WALNUT STREET. Motion carried unanimously, based on the finding that the project is consistent with the objectives of the Downtown Revitalization Plan and the CCD zoning district. A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY ROGER CARLSON TO APPROVE THE SIMPLE SUBDIVISION RESULTING IN A PARCEL/SITE MEETING THE 40% LOT COVERAGE REQUIREMENT. Motion carried unanimously. 10. i n t lans for develo ment of F i uor Store site. Mark Wentzell of Ankeny Kell Architects, hired by a private developer, presented concepts for commercial/retail development of the Ferrellgas/Liquor Store site which would be compatible with the community center. He noted the proposed development would attempt to continue to develop building sites along Walnut, work with the existing Page 6 Council Minutes - 9/14/98 liquor store, and open visibility of the businesses to Highway 25. Deputy City Administrator Jeff O'Neill noted that in the future, Council may want to direct staff to prepare an RFP for development of the site. No Council action was required. 11. Consider ~on o rin into a urchase a ree i h Burlin ton North f r l d ~e~essarv to develou the Monticello Community C;~nter. Deputy City Administrator Jeff O'Neill reported that the purchase of approximately 200,000 sq ft of land frarn Burlington Northern extending from Highway 25 to Maple Street, including 10,000 sq ft of land between the railway and the library, is consistent with the objectives established by the City Council in previous priority-setting sessions and is necessary for the purchase of the community center site. Total price of the land area is $220,029, which amounts to an average of $.89 per sq ft. Establishment of the purchase agreement at this time would allow the City to gain permission to enter the site to install the sanitary sewer line along the northern alignment. Without the agreement, the City would not be able to enter the site until after the condemnation process is complete. The sampling of soils for the purpose of analyzing contaminants is complete but results had not yet been received. O'Neill requested that Council table further discussion of this item pending arrival of the City Attorney, who was delayed due to another meeting. It was the consensus of Council to table this item for discussion with the City Attorney later in the meeting. 12. Consideration o r vin a reement bet it f Monticello Minnesota i n 1 ar overnin the de m nt and o eration h c mmunit cen e . Deputy City Administrator Jeff O'Neill reported that the previous agreement approved by the City Council governing the development and operation of the community center was contingent on the National Guard approving an amendment to the right of first refusal language that would allow the City to purchase the land portion of the National Guard space at the same cost paid by the Guard; however, the Guard was not able to amend the language as requested, as it was not consistent with the normal arrangements that they stablishe with communities. O'Neill noted that it was important to finalize the agreement due to the fact that for every day approval is delayed, the City loses interest on the $1.5 million that will be contributed by the National Guard. Councilmember Clint Herbst noted that he did not disagree with the right of ftrst refusal portion of the agreement; however, he continued to oppose the 90/10 split of the maintenance cost. Page 7 Council Minutes - 9/14/9$ AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO ADOPT THE AGREEMENT WITH THE NATIONAL GUARD AS PROPOSED BY THE NATIONAL GUARD. Voting in favor: Bill Fair, Bruce Thielen, Roger Carlson. Opposed: Clint Herbst, Brian Stumpf. Motion carried. 13. Consideration of acce tin bid and 'n n ract for the trunk sanita relocation project. Deputy City Administrator Jeff O'Neill reported that at the last meeting, Council tabled award of the contract due to the high cost of the southerly alignment. After additional discussion with the City Engineer, the contractor, and Burlington Northern, it was determined at the time the agenda information was prepared that it was possible to extend the trunk sanitary sewer along the northern boundary at a considerable savings; however, this alignment would require that the community center building be moved 10 ft toward bth Street, which would result in a shorter setback on 6th Street and compress the size of the wheelpark and patio area. After further analysis of the north and south routes, O'Neill reported that staff now recommended the southern alignment due to less risk. He reviewed the concerns with the north alignment such as impact to the building location, legal issues relating to issuing a change order which could alter the unit cost, earlier disruption of JM Oil operations, etc. In addition, he noted that the possibility of assessing street improvements to Marquette Sank was being analyzed and would require that portion of the project to be rebid. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BILL FAIR TO APPROVE THE SOUTHERLY ALIGNMENT FOR RELOCATION OF THE TRUNK SANITARY SEWER. THE MOTION WAS THEN AMENDED BY BRUCE THIELEN TO ALSO STATE THAT THE CITY ENGINEER AND CITY STAFF ARE AUTHORIZED TO DELETE THE ROADWAY PORTION OF THE PROJECT AND WORK WITH MARQUETTE BANK ON AN AGREEMENT FOR THE COST OF ROADWAY IMPROVEMENTS. IF NO AGREEMENT WAS REACHED, A PUBLIC HEARING WOULD BE HELD REGARDING ROADWAY IMPROVEMENT ASSESSMENTS. City Engineer Bret Weiss noted that City staff had planned for a November 1 deadline, which would be difficult to meet if an agreement was not reached with Marquette Bank and the item had to be returned to Council to call for a public hearing. BRUCE THIELEN THEN FURTHER AMENDED HIS MOTION TO ALSO GIVE CITY STAFF THE AUTHORITY TO CALL FOR A PUBLIC HEARING IF AN AGREEMENT CANNOT BE NEGOTIATED WITH MARQUETTE BANK IN ORDER TO MEET THE NOVEMBER 1 DEADLINE. Voting in favor of the motion: Bruce Thielen, Bill Fair, Roger Carlson. Opposed: Clint Herbst, Brian Stumpf. Motion carried as amended. Page 8 Council Minutes - 9/14/98 14. Consideration of a rovin lans ands ecifica ' authorizin advertisement for bids for community center. Mark Wentzell of Ankeny Kell Architects reviewed the floor plan for the community center, as well as the building materials, and noted that drawings were planned to be ready for contractors by October 1, with the bid opening on October 22 and work beginning on the site the first week of November. Mr. Wentzell also reviewed the alternate items that will be bid separately so that they can be deleted if the bid cost is too high. It was noted in the staff report that the plans presented for approval were consistent with the concept plans previously reviewed and approved by the City council, and the project remained on budget according to the most recent cost estimate of $9,500,069. Councilmember Clint Herbst noted that he was not opposed to building a community center but was opposed to the process used rather than allowing the residents to vote as requested by petition. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZE ADVERTISEMENT FOR BIDS CONTINGENT ON REVIEW OF THE PLANS BY THE CITY ENGINEER AND PUBLIC WORKS DIRECTOR. Voting in favor: Bill Fair, Bruce Thielen, Roger Carlson. Opposed: Clint Herbst, Brian Stumpf. Motion carried. 15. in r ha e a reement outlin' rm f sal of Monticello i H 11 Arv d J an rimsmo for the u o f velo ment of a mortu City Administrator Rick Wolfsteller reported that as the community center project evolved, a new city hall was included as part of the project, which opened the door for the potential sale of the current city hall. The City received an offer last summer of $400,000 from Arve Grimsmo for the purchase of city hall and all of the property owned by the City in the same block. An appraisal obtained by the City indicated an estimated market value of the city hall site at $595,000. A second appraisal obtained by Mr. Grimsmo placed the value of the city hall property at $360,000. An offer of $450,000 was recently made by Arve and Jean Grimsmo for city hall and the additional property owned by the City on the block. The two appraisals indicated a very close estimation of market value when utilizing the cost approach; however, when the estimated market values are approached under the comparable sales method, there is a big difference in the average square foot value. The City's appraiser used an office building and two bank buildings to arrive at an average square foot value of over $100 per square foot; however, the second appraisal used comparable sales consisting of a vacant courthouse, a vacant elementary school, a vacant telephone equipment building, and two office buildings to arrive at a value of $30 per square foot. The City Administrator suggested that Council consider splitting the difference between the appraisals for a purchase price of $477,500; however, he also recommended that the purchase agreement be contingent on the community center project going forward. Fage 9 Council Minutes - 9/14/9$ Councilrnember Brian Stumpf questioned where the building department vehicles would be stored if the parcel near city hall was sold. The City Administrator responded that a garage would need to be built if the vehicles were to continue being stored inside. Arve Grimsmo stated that the value of the parcel owned by the City on Third Street was estimated at $50,000, which could be deducted from the purchase price of city hall at this time if the Council wanted to continue storing vehicles. Since this parcel would be for expansion purposes, negotiations for purchase could be continued in the future. AFTER DISCUSSION, A MOTION WAS MADE BY CUNT HERBST AND SECONDED BY BRUCE THIELEN TO MAKE A COUNTEROFFER OF $477,500 FOR CITY HALL AND THE ADDITIONAL CITY-OWNED LAND ON THE BLOCK CONTINGENT ON LANGUAGE BEING ADDED THAT THE AGREEMENT CAN BE CANCELLED IF THE COMMUNITY CENTER FACILITY IS NOT BUILT. Voting in favor: Bill Fair, Clint Herbst, Bruce Thielen. Abstaining: Roger Carlson. Opposed: Brian Stumpf. Motion carried. 1 b. n i r ti n f r vi i n r limin lot and a rova m l I t of the River Forest residential subdivision. Annlicant. John E. ~~, LLC. Deputy City Administrator Jeff O'Neill reported that the River Forest plat had been slightly modified by removal of a portion of River Mi114th land area because the developer was able to gain an additional lot with the redesign, and he was not sure he would be able to successfully deal with the River Mill developer through the platting and development process. Although the modification eliminated a cul-de-sac and created two flag lots at River Mi114th, the Planning Commission recommended approval of the modified plat. City Engineer Bret Weiss noted that he was concerned about the extensive cost to extend utilities to the flag lots, which would have long private driveways. Mr. Richard Bloom, representing River Forest developer John Chadwick, reported that they did try to reach an agreement with the River Mill developer; however, since they had been unable to work out a fair and equitable agreement in time to begin development this year, the plat was redesigned without the River Mill property. He also noted that the best plan for the development would connect the River Forest development to Gillard Avenue and eliminate bath accesses to River Mill. It was his view that it was not necessary to provide three accesses to a development within a small area. Mr. Rick Murray, developer of the River Mill plat, responded that a letter was submitted to Council outlining the negotiations that had taken place with Mr. Chadwick. He noted that after their second meeting, the only offer received was $25,000 for the entire outlot area. Since the River Mill development supplied streets and utilities to the River Forest area, he requested that the cul-de-sac be installed as originally planned. Page 10 Council Minutes - 9/14/9$ City Engineer Bret Weiss explained that one of the problems with the River Mill property is the extreme grade. From an engineering standpoint, it was felt that the property would have to be accessed from the top side, which was why the original design incorporated the cul-de-sac in conjunction with the River Forest development. AFTER DISCUSSION, A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO TABLE APPROVAL OF THE RIVER FOREST PLAT AND DIRECT THE R1VER MILL AND RIVER FOREST DEVELOPERS TO CONTINUE NEGOTIATIONS AND RETURN TO CITY COUNCIL ON SEPTEMBER 28. Motion carried unanimously. 17. 'd at'on of r t' h in i i al ension for volunteer Firefi hter's Relief Association members. City Administrator Rick Wolfsteller reported that the Firefighter Relief Association membership requested that the City Council consider an increase in their retirement benefit from the present $1,575 per year of service to $1,925 or more after 20 years of service on the fire department. The pension schedule reports provided by the Fire Relief Associatian Treasurer indicate that the Association should have sufficient funds to support an increase in the pension up to $1,950 per year of service. In all of the schedules presented for Council consideration, the assumption that there are sufficient assets and earnings from investments to support the pension amounts is based on an estimate that the interest earnings on investments would continue to earn at a rate of at least 8.935%, which is the past 10-year average. In addition, it was assumed that the state aid funds received by the Association would continue to be equal to previous amounts. The City Administrator also noted that if the City approves any pension amount before the Association has sufficient assets to cover the projected liabilities, a reduction in the interest income or loss of investments could obligate the Council to use tax dollars to fund the balance. AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY BRUCE THIELEN TO GRANT AN INCREASE TO $1,925 PER YEAR OF SERVICE TO THE INDIVIDUAL PENSION FOR VOLUNTEER FIREFIGHTER'S RELIEF ASSOCIATION MEMBERS. Voting in favor: Clint Herbst, Bill Fair, Bruce Thielen, Roger Carlson. Abstaining; Brian Stumpf. Motion carried. 18. Consideration of increasin olic r f covera e for 1999. City Administrator Rick Wolfsteller reported that the Police Commission recently met to review the proposed 1999 budget for police protection and recommended that the City Council consider increasing the level of service from the present 24-hour per day coverage by an additional 4 hours per day beginning in 1999. Based on the number of calls for service and the growing population, it was the recommendation of the Sheriff s Department that the City consider adding a second officer for part of a day, which would Page 11 Council Minutes - 9/14/98 amount to an additional 1,260 hours per year after allowing for the 200-hour allowance already built into the contract. The additional cost would amount to $53,655, which was included in the 1999 preliminary budget. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO AUTHORIZE AN INCREASE IN THE LEVEL OF SERVICE BY AN ADDITIONAL FOUR HOURS PER DAY AS NOTED IN THE 1999 PRELIMINARY CITY BUDGET AND NOTIFY THE WRIGHT COUNTY SHERIFF'S DEPARTMENT OF THE INCREASE. Motion carried unanimously. 19. Consideration of urchasin 4 a re r r site for ark. A MOTION WAS MADE BY BRUCE THIELEN TO TABLE DISCUSSION OF PURCHASING 4 ACRES NEAR THE WATER TOWER SITE FOR PARK UNTIL THE NEXT COUNCIL MEETING. Fublic Works Director John Simola noted that he was requesting only authorization to negotiate a purchase price on the property near the water tower for park land in order to install a security fence around the water tower area. The proposal for purchase of the 4 acres would be returned to Council far consideration at a future meeting. COUNCILMEMBER BRUCE THIELEN THEN AMENDED HIS MOTION TO STATE THAT CITY STAFF IS AUTHORIZED TO NEGOTIATE A PURCHASE PRICE ON 4 ACRES OF LAND NEAR THE WATER TOWER SITE FOR PARK LAND AND RETURN TO COUNCIL FOR CONSIDERATION IN THE FUTURE. AMENDED MOTION WAS SECONDED BY CLINT HERBST. Motion carried unanimously. 20. Consideration of bills for the first half of Se tie 11~gr, 1~$. A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY BRUCE THIELEN TO APPROVE THE BILLS FOR THE FIRST HALF OF SEPTEMBER, 1998, AS PRESENTED. Motion carried unanimously. 21. Other matters. A. i i n f item # 11--Considerati f nt rin into a urchase B rlin ton Northern for land t develo the Monticello Community Center. City Attorney Dennis Dalen reported that since Council had selected the southern route for relocation of the sanitary sewer near the community center site, it was not as critical to make a decision regarding the purchase of the Burlington Northern property at this time. He noted his concern regarding environmental issues and suggested that Council delay making a decision on this item until the results of the soil borings have been received. He also noted that the City may receive more protection regarding contaminated soils using the eminent domain process than outright purchase of the land. Page 12 Council Minutes - 9/14/98 A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY CLINT HERBST TO TABLE DISCUSSION OF ENTERING INTO A PURCHASE AGREEMENT WITH BURLINGTON NORTHERN UNTIL THE NEXT COUNCIL MEETING. Motion carried unanimously. B. Rec n i r i n f a rovin relimin and final f th River Forest residential division. Applicant, John E. Chadwick. LLC. City Engineer Bret Weiss requested that Council reopen discussion regarding the River Forest plat. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO REOPEN DISCUSSION OF PRELIMINARY AND FINAL PLAT APPROVAL OF THE RIVER FOREST PLAT. Motion carried unanimously. The City Engineer reported that after discussing with John Chadwick options for development of the River Forest plat, an agreement was reached to modify the plat by placing Block 2, Lots 1-5, as an outlot in order to continue moving forward with development of the plat this year. In the meantime, Mr. Chadwick would continue working with the River Mill developers toward an agreement on development of the outlot. Mr. Rick Murray, representing River Mill development, also indicated a willingness to continue negotiations. A MOTION WAS MADE BY ROGER CARLSON AND SECONDED BY BRUCE THIELEN TO APPROVE THE PRELIMINARY AND FINAL PLAT OF THE RIVER FOREST PLAT WITH THE MODIFICATION THAT LOTS 1-5, BLOCK 2, ARE PLACED AS AN OUTLOT. Motion carried unanimously. A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY ROGER CARLSON TO ADJOURN THE MEETING. Motion carried unanimously. _ ~ ~ ~~ K en oty Deputy City Clerk Page 13