City Council Minutes 05-26-1992MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Tuesday, May 26, 1992 - 7 p.m.
Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad
Fyle, Dan Blonigen
Members Absent: None
2. Approval of minutes.
Shirley Anderson noted that references to the location of the
fuel dispensing facility were transposed. The minutes
reported that the site plan called for placement of the fuel
dispensing facility on the east side of the property. This
should be corrected to state that the fuel dispensing facility
is proposed to be placed on the west side of the property.
Dan Blonigen was concerned regarding #8, consideration of bids
for West Bridge warming house and restrooms, that the final
paragraph was incorrect in stating that there was a consensus
of Council to work with the architect in modifying the design
of the building. It was Blonigen's understanding that the
entire issue was going to be dropped. Members of Council
indicated that it appeared that the minutes accurately
reflected the discussion held at the previous meeting.
After discussion, it was determined that perhaps a vote could
be taken on future direction with regard to this issue later
in the meeting.
After discussion, a motion was made by Shirley Anderson and
seconded by Clint Herbst to approve the meeting minutes of the
regular meeting held May 11, 1992, as corrected. Motion
carried unanimously.
3. Citizens comments/petitions, requests, and complaints.
None forthcoming.
4. Consideration of a resolution authorizing the issuance of
general obligation improvement bonds for Projects 92-02,
School Boulevard, and 92-07, Cardinal Hills phase II.
Rick Wolfsteller, City Administrator, reported that at the
previous Council meeting, Council received bids and awarded
the contract for improvement to phase II of Cardinal Hills and
School Boulevard to the low bidder, Brown & Cris, Inc., of
Lakeville, Minnesota, in the amount of $666,395. Wolfsteller
asked Council to authorize Springsted, Inc., to sell bonds in
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an amount equal to our projected project cost. Wolfsteller
noted that the School District's share of the School Boulevard
cost will not be included in the bond issue, as the School
District will be paying $173,785 directly, which is their
share of the cost to develop School Boulevard.
Wolfsteller noted that the total amount of the bond issue is
$705,000 and will be structured for repayment over a 10 -year
period. He noted that while it is possible we could shorten
up the bond issue based on the projected rapid payment of
assessments for Cardinal Hills, we still have the School
Boulevard portion that will be assessed to Value Plus Homes
that will not be paid until all the Cardinal Hills development
future phases are built.
Shirley Anderson asked if we can prepay the bond issue in the
event the assessment payments come in early. Bob Thistle of
Springsted noted that the bond issue could be structured so
the City could prepay; however, such call features usually
result in a higher interest rate paid by the City. Under the
program proposed by Springsted, Inc., the City would be able
to prepay the bond after eight years and not be penalized.
After discussion, a motion was made by Shirley Anderson and
seconded by Dan Blonigen to adopt a resolution authorizing
Springsted, Inc., to proceed with the issuance of bonds to
finance the improvement project based on the recommendations
provided. Motion carried unanimously.
SEE RESOLUTION 92-15.
5. Consideration of adopting development agreement governing
installation of public improvements with phase II of the
Cardinal Hills residential subdivision.
Assistant Administrator O'Neill reported that at the previous
meeting Council was informed that the developers were in
position to provide the financial securities with phase II
using the same formula as was followed with the phase I
development agreement. The phase I formula, when applied to
phase II, results in the need for a letter of credit in the
amount of $84,000 for site grading, $5,000 for final grading,
and $173,000 to cover 40% of the cost of the public
improvements. In addition, the phase I agreement, with every
lot that is sold, the developer will pay 1.5 times the cost
per lot to install the public improvements.
It now appears that due to lending limits imposed on local
banks by federal regulatory agencies, the developer is not
quite able to provide the total amount in letters of credit as
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required. Instead, the developers have proposed to provide
the grading letters of credit as proposed ($84,000 and $5,000)
and 30% of the cost to construct the public improvements. In
exchange for the reduction in the public improvement letters
of credit, the developers will pay the City an amount equal to
2 times the cost per lot to install the public improvements
with every lot that is sold. The developers have indicated
that the current homes under construction will soon close, and
the money collected from the sales will enable them to
increase the letter of credit from 30% to 40%. According to
the development agreement, if the developer elects to increase
the security from 30% to 40%, the City will go back to the
original deal whereby the City will release a lot after an
amount equal to 1.5 times the per -lot construction cost is
paid.
Clint Herbst noted that obtaining assessment payment for two
lots for every lot that is sold is acceptable in exchange for
a reduction in the letter of credit requirement.
After discussion, a motion was made by Brad Fyle and seconded
by Dan Blonigen to adopt the development agreement as
prepared. Motion carried unanimously.
6. Consideration of adopting Prairie West development agreement.
Assistant Administrator O'Neill reported that the City
Attorney has made changes to the agreement submitted to
Council at the previous meeting. In addition, the development
agreement has been reviewed and approved by Jim Metcalf.
O'Neill noted that the development agreement requires that the
streets and utilities be installed in a manner consistent with
City specifications. The installation process will be
inspected by City staff, with the cost of said inspection to
be paid by the developer.
The development agreement requires that the developer provide
a warranty on materials and workmanship for a period of one
year. In addition, the developer will be providing financial
security in the amount of 105% of the project cost ($65,835).
This security guarantees the City that, if necessary, the City
can complete the project once it's started. It provides the
City with the funds necessary to pay off any liens against the
property for non-payment of construction fees.
After discussion, a motion was made by Brad Fyle and seconded
by Dan Blonigen to adopt the Prairie West development
agreement as proposed. Motion carried unanimously.
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7. Consideration of accepting 1992 Annual Sidewalk Inspection
Report.
John Simola, Public Works Director, reported that the
condition of sidewalks in the city has improved since the
inception of the sidewalk inspection program in 1990. This
year only five panels were noted needing possible replacement
due to a vertical rise between panels.
Simola reported that the panels possibly needing replacement
due to a vertical rise between panels may settle; therefore,
he did not recommend replacement of panels this year. Simola
did note that there are several areas in the city sidewalk
system which do need some minor maintenance and monitoring.
Individual residents will be notified of the need for this
minor maintenance.
After discussion, a motion was made by Dan Blonigen and
seconded by Shirley Anderson to accept the 1992 Annual
Sidewalk Inspection Report with no further action being needed
at this time. Motion carried unanimously.
8. Consideration of advertisement for bids for 1992 sidewalk
improvement project and for the scheduling of a public
hearing.
John Simola reported that this year's sidewalk improvement
project involves East 7th Street on the south side of Hillside
Cemetery, East 6th Street on the north side of Hillside
Cemetery, Cedar Street from East 7th Street to Cedar Crest
Apartments, and a section along East Broadway linking the high
school sidewalk with the paved shoulders on East Broadway near
the tennis courts. The budget for this year's project is
$28,500. Simola noted that the areas proposed for sidewalk
improvement are all included on the sidewalk grid system
identified by Council in 1990.
Ken Maus questioned the need for a sidewalk on 6th Street on
the north side of the cemetery. It was his view that this
sidewalk will not be used enough to justify development of a
sidewalk at this location.
Brad Fyle noted that a few of the city projects had come in
slightly over budget and that it might be a good time to put
the sidewalk improvement project on hold for the time being.
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After discussion, a motion was made by Dan Blonigen and
seconded by Clint Herbst to authorize advertisement for bids
for the 1992 sidewalk improvement project and order a public
hearing for June 22, and remove the section of sidewalk along
the north side of the cemetery from the project. Voting in
favor: Dan Blonigen, Clint Herbst, Shirley Anderson, Ken
Maus. Opposed: Brad Fyle.
9. Consideration of sale of pole building to make room for the
new public works facility.
John Simola reported that the City received one bid for the
sale of the 28 x 80 pole barn at the public works site. The
lone bidder was High Tech Roofing of Monticello. The bid was
for $50. High Tech Roofing will provide a certificate of
insurance and has agreed to remove the pole barn by June 15 if
awarded the building on May 29.
Simola also noted that bids for the new public works facility
are due on May 29. If the bids come in within the scope of
the funds available, City staff wishes to have authorization
to order the building removed on May 29.
After discussion, a motion was made by Brad Fyle and seconded
by Shirley Anderson to authorize the sale of the pole barn for
$50 to High Tech Roofing pending submittal of a low bid within
3% of the City Engineer's base building, site work, and soil
correction cost of $556,000. Motion carried unanimously.
10. Consideration of appointing representatives to serve on the
survey design subcommittee.
Clint Herbst and Brad Fyle volunteered to serve on the
recreation survey design subcommittee. Brad Fyle will not be
able to attend the first meeting scheduled for Wednesday,
May 27. Ken Maus volunteered to fill in for Brad. It was
also suggested that the survey be submitted to each
jurisdiction involved for review prior to finalization by the
subcommittee.
11. Consideration of bills for the month of May.
After discussion, a motion was made by Dan Blonigen and
seconded by Brad Fyle to approve payment of bills as submitted
for the month of May. Motion carried unanimously.
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12. Other matters.
Council discussed the current policy of paying for half the
cost to plow the snow at the local airport. It was the
consensus of Council that this policy needs to be reviewed
prior to the next winter season.
John Simola provided an update on the city hall parking lot
project. He requested that the Council consider modifying the
design to allow installation of a parking lot island
delineator. The island delineator would include two trees and
would help to define the interior parking lane. He noted that
the island delineator would add $500 to the cost of the
project and would result in higher maintenance cost due to the
added difficulty of plowing the lot with an island delineator
in place. The cost to make the change proposed amounts to
$500.
After discussion, a motion was made by Shirley Anderson to
modify the plan as proposed to include the island delineator
in the city hall parking lot. Motion died for lack of a
second.
City Council discussed the possibility of closing the liquor
store on the July 4 holiday. It was the consensus of Council
that the decision on whether or not to close the liquor store
on July 4 is up to the City Administrator and the Liquor Store
Manager. It was emphasized, however, that if they elect to
close the store for the 4th that this information be well
publicized.
Assistant Administrator O'Neill reviewed a proposal to grant
a home occupation permit to John Zavodnick at 102 Oakview
Circle. The home occupation consists of skate sharpening and
mail order sales of hockey equipment conducted on a seasonal
basis. Council reviewed the terms of the permit. There were
no objections to the proposal in light of the fact that the
permit is being issued on a trial basis only.
There being no further discussion, the meeting was adjourned.
Je f '�Ne i 11
Assistant Administrator
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