City Council Minutes 11-25-1996MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, November 25, 1996 - 7 p.m.
Members Present: Shirley Anderson, Clint Herbst, Brian Stumpf, Tom Perrault.
Brad Fyle arrived late.
Members Absent: None
2. Approval of minutes of the regular meeting held November 12, 1996-
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM
PERRAULT TO APPROVE THE MINUTES OF THE REGULAR MEETING HELD
NOVEMBER 12, 1996, AS WRITTEN. Motion carried unanimously.
Pre Mie F-Mrows
A. Item 5D - River Mill improvements.
This item was added as item 5D to the consent agenda.
B. City Engineer Bret Weiss requested that an update on the Highway 25
project be added to the end of the agenda.
C. Public Works Director John Simola requested that an update on the
water tower painting project be added to the end of the agenda.
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None.
A. Consideration of resolution adopting assessment roll for Ocello/School
Boulevard Project No. 95-03C. Recommendation: Adopt the
resolution adopting the assessment roll for the School Boulevard
project in the amount of $609,061.01. SEE RESOLUTION 96-46.
B. Consideration of resolution adopting assessment roll for Dundas
Road/Commerce Center Third Addition,Pr!QjPct No. 96-01C.
Recommendation: Adopt the resolution adopting the assessment
roll for the Dundas Road/Fallon Avenue improvement in the amount of
$1502122.26. SEE RESOLUTION 96-47.
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Council Minutes - 11/25/96
C. Consideration of approving final payment for Ocello/School Boulevard
Improvement Project No. 95-03C - Barbarossa. Recommendation:
Authorize final payment to Barbarossa & Sons, Inc., in the amount of
$62,969.98 upon receipt of all final lien waivers, etc., for the project.
D. Consideration of accepting improvements completed underrin 'vate
improvement process - River Mill subdivision. Recommendation:
Accept the public improvements completed by Residential
Development, Inc., with the City holding $7,500 as a guarantee of
completion of miscellaneous items.
A MOTION WAS MADE BY CLINT HERBST AND SECONDED BY TOM
PERRAULT TO APPROVE THE CONSENT AGENDA AS RECOMMENDED.
Motion carried unanimously.
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None.
services7. Review of bids for pickup and hauling Qf garbageZrefuse and considerati
award of contract for , begin April..
Public Works Director John Simola reported that bids for pickup and hauling
of garbage were received on Monday, November 18, 1996. Eight bids were
submitted, with the low base bid of $7,704 per month, or $92,448 per year,
from Superior Services. Superior Services also provided the low bid for
automated garbage pickup with a bid of $7,704 per month.
Since there appeared to be no savings in converting to semi- or fully
automated pickup at this time, Simola recommended that the City stay with
the existing garbage pickup system. He noted that Superior Services' low bid
of $7,704 per month represents a $42,652 savings per year over the current
contract.
A MOTION WAS MADE BY BRIAN STUMPF AND SECONDED BY TOM
PERRAULT TO AWARD THE 3 -YEAR GARBAGE PICKUP CONTRACT,
BEGINNING APRIL 1, 1997, TO SUPERIOR SERVICES OF ST CLOUD,
MINNESOTA, USING THE EXISTING SYSTEM FOR $7,704 PER MONTH, $2.84
PER MONTH FOR ALL ADDITIONAL RESIDENTIAL PROPERTY, AND $4.15 PER
MONTH FOR EACH ADDITIONAL UNIT ON TWICE -WEEKLY PICKUP USING
DUMPSTERS. Motion carried unanimously.
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Council Minutes - 11/25/96
8. Consideration of an appeal of fines for wastewater permit discharge
violations - Sunny Fresh Foods.
Public Works Director John Simola reported that during the last 20 years,
the City has made efforts to provide wastewater treatment capacity for the
Sunny Fresh Foods (previously Wrightco Products, Inc.) operation by adding
chemical treatment to its original 1960 plant for added capacity, adding an
equalization tank and additional aeration equipment in the 1980 plant, and
providing a third SBR tank in the 1997 plant. He noted that the City was
lenient in dealing with the egg processing facility in the past until the late
1980's when the City received a notice from the Minnesota Pollution Control
Agency (PCA) of violation of the City's wastewater treatment plant permit for
failure to enforce the sewer use ordinance.
Simola went on to note that when Sunny Fresh Foods took over the plant, the
City developed a good working relationship with the maintenance staff.
However, due to the nature of the operations at Sunny Fresh, their
wastewater loads fluctuated significantly from day to day and have resulted
in numerous violations of their wastewater discharge permit. In 1995, the
Council raised the maximum penalty for each violation from $1,000 to
$5,000. At the same meeting, Council agreed to rebate $1,000 in fines back
to Sunny Fresh if they hired an outside consultant to assist them with their
spill control procedures so that less violations would occur.
During the design process for the City's new wastewater treatment plant, the
City involved Sunny Fresh Foods in the design discussions. The City
provided for a 50% increase in loading TSS and BOD from Sunny Fresh over
the next 15-20 years based on their projections. The basic design of the new
treatment plant provided for the capacity to increase the maximum 24-hour
discharge of BOD for Sunny Fresh to 3,000 pounds per day when the new
treatment plant was on line. In addition, the City offered to increase the size
of the tanks and install additional aeration equipment at Sunny Fresh's cost
in order to provide additional capacity beyond their projections; however,
Sunny Fresh elected to make improvements to their plant to reduce their
discharge rather than pay for improvements outside of their plant.
In March 1996, Sunny Fresh Foods requested a 15% increase in BOD and a
9% increase in total suspended solids that could be released in a 24-hour
period. After review by City staff and PSG, the City granted Sunny Fresh a
20% increase in the daily BOD discharge, a 9% increase in the solids
discharge, and a reduction in the amount of water they could discharge in a
24-hour period. Simola noted that he indicated to Sunny Fresh that if the
new permit limits were violated, it could have serious ramifications for the
City's treatment plant and that stiff fines would result.
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Council Minutes - 11/25/96
During the time period from October 15, 1995, to April 20, 1996, Sunny
Fresh Foods had 17 permit violations and a major spill. Since the time the
new permit went into effect, they have had 21 additional permit violations,
including two major spills, one of which jeopardized the function of the
wastewater treatment plant. The spills which occurred in September and
October of 1996 caused the City to exercise the new fine limit. A letter was
sent to Sunny Fresh on October 8 indicating fines totaling $26,000 for 16
violations and two major spills, an additional letter on October 29 for fines of
$1,500, and a letter on October 31 for fines of $1,000. The total of current
fines is $28,500. Sunny Fresh appealed the fines levied on October 8.
Simola reported that he was informed today that Sunny Fresh had another
spill but was able to catch it and is slowly discharging into the system to
avoid violating their permit.
It was the recommendation of the Public Works Director and City
Administrator that the Council consider an incentive program whereby some
partial reimbursement be made if no further violations occur over the next 18
months. Simola stated that the following schedule has been used for past
fines:
0% to 5% over permit ............................. $ 500.00
5% to 20% over permit ............................ $1,000.00
25% to 100% over permit .......................... $2,000.00
Spills which could jeopardize the
operation of the WWTP ............ $2,000.00 to $5,000.00
However, Simola noted that the above formula should not be used as a rigid
fine schedule, as PSG has indicated that even smaller violations of Sunny
Fresh Foods' discharge permit could upset the City's treatment plant under
certain circumstances, and the likelihood of upset would be greater during
the construction process.
Dennis Darnell of Sunny Fresh Foods stated that one of the problems they
struggled to correct was freezing inside the tankers during the winter. After
altering the program, freezing inside the tankers has been eliminated. He
also noted that the Sunny Fresh Foods plant capacity has increased by 50%
but that actual flows of wastewater as a general trend have decreased in
total amount. Darnell agreed that mistakes had been made which caused
Sunny Fresh to exceed their permit limitations; however, it was his view that
the fines were excessive. In addition, he disagreed with the manner in which
the fines were presented, with the letter implying that they did not have the
best interests of wastewater conservation in mind. Darnell also noted that at
times it has been difficult to reach someone to notify them of a spill,
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Council Minutes - 11/25/96
sometimes taking as long as two days. Chuck Keyes of PSG stated that
Sunny Fresh had internal communication problems and that he had provided
call numbers to Sunny Fresh. It was noted, however, that some of the past
spills did not affect the treatment plant.
Council discussed their concerns regarding the number of violations and the
effect the spills could have on the City's permit limitations with the PCA.
AFTER DISCUSSION, A MOTION WAS MADE BY BRAD FYLE AND SECONDED
BY CLINT HERBST TO REDUCE THE CURRENT FINE BY 50% ($14,250
REDUCTION); BUT ANY FUTURE FINES DURING THE NEXT 18 MONTHS
WOULD BE DOUBLED UNTIL SUCH TIME THAT THE TOTAL AMOUNT
REACHES $28,500. IF SUNNY FRESH DID NOT VIOLATE THEIR PERMIT
DURING THE NEXT 18 MONTHS, THEY WOULD SEE FULL BENEFIT OF THE
$14,250 FINE REDUCTION. The 18 -month timetable was scheduled to begin
immediately. Motion carried unanimously.
9. Consideration of adQption of a resolution establishing a moratorium on
- nce of building permits pending completion of a redevelopment study
and associated zoning code amendments within a designated redevelopment
• r •city Qf MQnticello.
Council was asked to establish a one-year moratorium on issuance of
building permits in a designated redevelopment area pending completion of
redevelopment studies necessary to determine land use designations in the
study area. Assistant Administrator Jeff O'Neill reported that the
Hoisington Koegler team is currently working at the direction of the HRA,
through the Monticello Community Partners, to establish a framework for
redevelopment of the downtown/riverfront area. Major goals of the
framework are to identify parcels to be earmarked for redevelopment and to
organize residential, commercial, and public land use districts and
regulations in manner that would promote long-term prosperity. The need
for the moratorium stemmed from the possibility of development of property
that might not be consistent with the planning framework.
O'Neill went on to note that a building permit request had been submitted
for development of a small earth berm home on a parcel near West Bridge
Park. Since this particular area has been identified as a prime location for a
variety of uses that could take advantage of the river setting, allowing a new
berm home to be built at this location would decrease the chances of
redevelopment because it would add greatly to the redevelopment expense.
The moratorium would allow the City to block investments in real estate that
could be at odds with the plan. If the moratorium is approved, City staff
would work with the HRA to assist the family in finding an alternative
location for the home proposed near West Bridge Park.
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Council Minutes - 11/25/96
Council discussed the large area proposed for the moratorium and questioned
why the area included lots between the freeway and 7th Street. O'Neill
noted that Michael Schroeder of Hoisington Koegler attempted to keep the
moratorium area as compact as possible; however, possible architectural
standards and sign ordinances could be incorporated into the entire area as
one unit. He noted that the moratorium could be waived by Council on a
case-by-case basis.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY CLINT HERBST TO ADOPT A RESOLUTION ESTABLISHING A
MORATORIUM ON ISSUANCE OF BUILDING PERMITS PENDING
COMPLETION OF A REDEVELOPMENT STUDY AND ASSOCIATED ZONING
CODE AMENDMENTS WITHIN A DESIGNATED REDEVELOPMENT AREA IN
THE CITY OF MONTICELLO. Voting in favor: Shirley Anderson, Clint
Herbst. Opposed: Tom Perrault, Brad Fyle, Brian Stumpf. Motion failed.
Councilmember Stumpf noted that he was opposed to the large amount of
area proposed for the moratorium. Councilmember Perrault noted that he
would prefer a 6 -month moratorium, which could be extended if necessary.
AFTER FURTHER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF
AND SECONDED BY BRAD FYLE TO AMEND THE PROPOSED BOUNDARIES
OF THE ONE-YEAR MORATORIUM AS NOTED ON EXHIBIT A AND ADOPT A
RESOLUTION ESTABLISHING THE MORATORIUM ON ISSUANCE OF
BUILDING PERMITS. Voting in favor: Brian Stumpf, Brad Fyle, Clint
Herbst. Opposed: Shirley Anderson, Tom Perrault. Motion carried.
Councilmember Perrault noted that he was opposed to the addition of
Block A and Block 55 to the moratorium area and the one-year length of the
moratorium.
SEE RESOLUTION 96-48. SEE ORDINANCE AMENDMENT NO. 284.
10. Consideration of a resolution requesting conveyance of tax forfeited lands
for public auction • 1 1
City Administrator Rick Wolfsteller reported that the Wright County
Auditor's office is preparing for an upcoming public auction sale of tax
forfeited parcels for nonpayment of property taxes, including assessments,
which are delinquent from as far back as 1980. The County asked for the
City's approval to proceed with a public auction or to request a conveyance of
any of the parcels to the City if there is a public use for them.
The parcels being considered for public sale consist of 15 lots within the
Meadow Oak subdivision plat and 2 larger parcels lying south of the Silver
Fox Motel adjacent to Dundas Road and Cedar Street. The County set an
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Council Minutes - 11/25/96
appraised value of the lots in Meadow Oak Estates at $20,000 each, and a
value of $50,000 and $30,000 for the two parcels adjacent to Dundas Road.
Wolfsteller noted that Lots 2 and 3, Block 3, Meadow Oak Estates, would be
needed for right-of-way for Eastwood Lane. Lots 6-8, Block 4, Meadow Oak
Estates are in need of substantial amounts of fill and could be used for
additional ponding area. The two parcels adjacent to Dundas Road and
Cedar Street would be needed for future right-of-way to allow for
realignment of the Cedar Street/Dundas Road intersection. In addition, this
could be a potential location for a future commuter parking lot if the current
lot is affected by the Highway 25 improvement project.
Wolfsteller also reported that the City Attorney informed him that any
encumbrances, liens, and restrictive covenants may be eliminated because of
the tax forfeiture provisions. Because the City has a vested interested in the
neighboring Eastwood Knoll subdivision, and in order to protect those who
have already built in the Eastwood Knoll area, Wolfsteller suggested that the
City consider purchasing all of the lots in order to prevent the covenants from
being eliminated.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY BRIAN STUMPF TO REQUEST CONVEYANCE OF ALL PARCELS
TO THE CITY SINCE THE SPECIAL ASSESSMENT DEBT EXCEEDS THE VALUE
OF THE PROPERTIES. Motion carried unanimously.
SEE RESOLUTION 96-49.
12. Consideration of bills for the month of November.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO APPROVE THE BILLS FOR THE MONTH
OF NOVEMBER AS PRESENTED. Motion carried unanimously.
13. Other matters.
A. Update on Highway 25 improvement project.
City Engineer Bret Weiss reported that an engineering proposal
addressing the anticipated engineering costs related to the design and
construction administration of the Highway 25 and I-94 improvements
had been presented to City staff and MN/DOT for review. The
proposal allowed MN/DOT to review the costs and enter into a letter of
agreement with the City to provide reimbursement to the City for costs
related to the improvements.
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Council Minutes - 11/25/96
As a follow up to WSB 's meeting with the Federal Highway
Administration (FHWA), Weiss noted that WSB is developing a layout
showing a compressed interchange alternative, also referred to as a
Single Point Urban Interchange (SPUI), as requested by the FHWA.
The FHWA requested that the City review this option to determine if a
SPUI may be a more feasible alternative for the long-term future of
the Highway 25 interchange. WSB will be performing an operational
analysis in addition to reviewing the benefits and/or impacts of this
SPUI alternative to existing 7th Street and Oakwood Drive. Weiss
noted that their preliminary review of the interchange alternatives
indicated that the loop ramp modification would provide the most
reasonable operational benefit at an economical cost and would
provide the best impact to Oakwood Drive and 7th Street. MN/DOT
also indicated that they viewed the loop ramp modification proposal as
the most feasible alternative. The loop ramp would add approximately
$500,000 to the project and should make it easier for truck traffic to
use Highway 25.
Weiss went on to note that after several meetings with business
representatives along the corridor, public information meetings, and
discussions with City staff, WSB recommended Option 2 for the long-
term development of Chelsea Road. Weiss reviewed the criteria on
which Option 2 was selected, and requested that the City Council
select this option as the preferred alternative for further consideration
by the citizens and business owners, as well as by MN/DOT. A public
information meeting was scheduled for the week of December 2, and
comments and public input would be reviewed by the City Council at
its December 9 meeting for final approval of the selected alternative.
After discussion, it was the consensus of Council to continue with the
process and schedule the final public information meeting for the week
of December 2.
Public Works Director John Simola reported that he received a call
from Pittsburgh Tank & Tower requesting that the City discontinue
liquidated damages since the painting season is over. Simola noted
that it would be difficult for the City to prove damages during the
winter months since the paint can only be applied during 502+
temperatures. Instead, he requested that he be authorized to
negotiate with Pittsburgh for payment of liquidated damages through
the good weather and begin liquidated damages again in the spring
after a 5 -day notice to resume the painting project. In addition, Simola
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Council Minutes - 11/25/96
noted that the City would not be paying Pittsburg for the work on the
tower until the project is completed. He also noted that Pittsburgh
would be billed for $75 in phone calls made from the pump house and
for use of the City's compressor.
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMPF TO
AUTHORIZE THE PUBLIC WORKS DIRECTOR TO NEGOTIATE WITH
PITTSBURGH REGARDING LIQUIDATED DAMAGES. THE MOTION WAS
SECONDED BY CLINT HERBST, WITH AN AMENDMENT THAT THE
CITY ALSO RECEIVE PAYMENT FOR THE PHONE CALLS AND
COMPRESSOR USE. Voting in favor: Brian Stumpf, Clint Herbst,
Shirley Anderson, Tom Perrault. Opposed: Brad Fyle. Motion
carried.
There being no further business, the meeting was adjourned.
kai6Doty
Office Manager
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