City Council Agenda Packet 07-25-1983AGENDA FOR TIIE MEETING OF THE CITY COUNCIL
Monday, July 25, 1983 - 7:30 P.M.
Members: Arve Grimsmo, Fran Fair, Dan Blonigen, Jack Maxwell,
Ken Maus.
1. Call to Order.
2. Approval of the Minutes of the July 11, 1983 Regular
Meeting.
3. Citizens Comments/Petitions, Requests and Complaints.
Old Business.
4. Public Hearing - Tax Increment Finance District #2 - Jim
Power's Proposal - "Pwer's Strength and Health Club".
5. Consideration of Adoption of a Resolution Giving Final
Approval to Tax Increment Finance District q2.
G. Final Consideration of Rehabilitation of Pedestrian
1. Lighting on the Mississippi River Bridge.
7. Consideration of a Resolution to Continue the Cable Franchising
Process.
B. Consideration and Evaluation of the Conduct of the Monticello
Jaycee Circus and the Subsequent waiver of the Fee.
9. Consideration of a Roquest to Relinquish an Easement for Street
Purposes - Dale Lungwitz, Oakwood Industrial Park.
10. Consideration of Rovioing the City's Liconso/Fee Schedule.
11. Consideration of an Application for a 3.2 Beer On -Sale License -
St. Henry's Catholic Church, Fall Festival.
12. Consideration of an Appointment of a wastewater Treatment Plant
Operator.
13. Consideration of an Initiating a Permanent Clerical Position in
City Hall.
14. Approval -of July Bills.
15. Adjournmont.
MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
1�. July 11,, 1983 = 7.:30 P.H.
Members Present: Arve Grimsmo, Fran, Fair, Dan Blonigen, Jack
Maxwell.
Members Absents Ken Maus.
1. Call to Order.
2. Anoraval of the Minutes.
A motion was made by Blonigen, a0condcd by Maxwell and unani-
mously carried to approve the minutoo of the regular meeting
of Juno 27, 1983..
3. Citizens Comments.
The mayor introduced Mr. Allen Polvit, tho,newly appointed'
director of Economic Development. The mayor noted that Mr.
.Polvit had boon hired by the Business s Industry Develop-
men- t Committee and would be working with potential industrial
prospects. The mayor further noted that, Mr. Polvit's duties
would include a,numbar of staff related tasks for the commoittoo,
.ihe City, and the Chamber.
4. Department Head Report®.
Mike Molstad; Y.M.C.A. Detached worker, was progent to present
his -quartcrly'departawnt hood roport. 'Mr. Molstad also,pro-
icitod'a guest whose name was, Dave. Dave indicatod that he'
had been involved"with the Y,.M.C.A.'Program in the past. and
was extremely pleased with the .programs and the fellowship
that came under the direction of Mike. Mike further,noted
that ho cuirantly had .32 individuals involved in the Mini -
bike Program and invited the Council members to attend the
the rally which was schodulad for -this summer. Mike further
Indicated that while the Mini -bike Program is perhaps the
moat visible, the number of individuals who came into con-
nection with the Y.M.C.A Detachad Program is significrntly
highor. Ila noted that there are additional activities and
meetings and discussions amongst the varloue clients and
himself. The Council reaffirmed that t1m program was in-
deed a worthy program and wau encouraged by the excellent
results. They also extended their thank you to Dave for
his attendance.
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Council Minutes - 7/11/83
In another department head report postponed from the Juno 27th,
m,c.ting, Willie Farnick, Piro Chief, reported on the department's
affairs for the last quarter. Farnick discuused some confusion
over the Locke Lake Association and the fire signs and a con-
fusion that arose over whether or not Monticello or ma -le Lake
Fire Departments covered a particular area. He nUed that this
had all been resolved. The payor raised a question about fire
fighters assisting the ambulance service when there might he
an instance that the ambulance attendant could not handle a
patient by his/hersolf. Farnick agreed to contact Barb
Schwientek or Nancy Poach and that he saw no reason why the
department couldn't help in those rare instances where someone
might to needed. Farnick suggested that the City sell the
1946 pumper since it was used so little and was mainly taking
up space. Ccuncilman Blonigen said he would like to think
about alternatives. The mayor asked Council member Blonigen
to meet with the fire department to discuss alternatives and
ultimately a possible sale if that is the final solution.
5. Consideration of a Request by the Fire Department for Compen-
sation for Maintenance Tasks.
Marn Plickar and Willie Farnick submitted the fire department's
request for compensation fr oa maintenance work. Farnick pro-
vided some background on the extent of maintenance currently
being done for which the members of the department are not
compensated. Farnick indicated that they estimated that the
total proper maintenance and inventory would require approxi-
mately 258 man hours annually. Council member Blonigan
raised the question relating to why acme of the itemized
maintenance tasks couldn't be done immediately after a fire
call. Flicker noted that that typo of system would not be
the mora effective since the same person would not always
be involved with the same maintenanco taup„ and this cort of
hit and miss system could result in some itcm:j being done
over and over again while othor items are overlooked. Ila
emphasized that there was a need to have maintenance chiefs
who would sac to the completion of all maintenance tasks on
a quarterly basis. The mayor indicated that he thought it
was not unreasonable to comi,ensate the fire fighters at a
straight $5.00 par hour, noting, howeveri that such a policy
should become effective January 1, for the 1984 budget year
since initiating the program immediately would more than
likely present a budget ovaer run for 1983. A motion by
Blonigen, seconded by Fair and carried unanimously approving
a maintenance compensation program for the fire department
and setting t),e hourly rates at $5.00, and making said plan
affective for the 1984 budget.
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Council Minutes - 7/11/83
G. Consideration of Bids to Rehabilitate the Bridge Lighting.
Mayor Grimsmo noted that lie had received information that no
additional bids had been submitted to the City other than the
one that had been secured by John Sinola for the Juno 27th
meeting. The mayor stated that in Simola'., ab-ance, lie would
like the matter postponed since Simola had all of the brck-
ground information. All of the other Council mx.,mbors agreed.
7. Consideration of a Request for a Conditional Use Permit - Pat
Townsend.
Mr. Pat Townsend came before the City Council to ro-present
his request for a conditional use, approval for which had been
granted by the Planning Commission at their meeting of July S.
1983. He indicated that his request was to upgrade his con-
ditional use from a minor repair auto, to major repair auto,
for the purpose of expanding the amount of body work that could
he done. The Council reviewed the recommendation of the Planning
Commission and noted that some objections had been raised con-
cerning the amount of traffic in the private alloy immediately
north of the building. Townsend indicated that those comments
had been noted at the Planning Commission and that to the best
of h1w knowledge, those matters ware now resolvad. Mr. Ta nscnd
also indicated that the term involved with the conditional use
may be limited since he had entered a purchase agreement for
an alternate site that would allow construction of a new busi-
ness. Cidem indicated that in addition to tho conditions
attached by the Planning Commission to the permit, there should
be a condition stating that the City may revoke the conditional
use permit upon 60 days written notice no that should major
development be proposed for this particular Ate, the existence
of the repair shop would not be an ob:,taclo or deterrent.
Council member Fair asked Mr. Town"nd if Ito undcrotocxl an,i
could accept such a provision. Mr. Townsend indicated a full
willingness to accopt that provision and understood completely
the development plans of the City. A motion by Fair, seconded
by Maxwell and carried unanimously to grant a conditional use
to Mr. Pat Townsend, Monti Motors, said permit carry the con-
ditionu recommended for attachment by the Planning Commission
and adding the condition that said permit may be revoked upon
GU dayu written notice by the City.
8. Consideration of a Request From the Monticello HRA to not e
Public Hearin Mlatincl_to a Tax Increment Finance Propoe+l
for Monday. July 25. 1983.
A motion by Fair, seconded by Olonigen and carried unanimously
setting a public hearing for the Cfgment on a tax increment
finance proposal for 710 P.M. on Monday, July 25, 1981 in
the City Council Chambers.
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Council Minutes - 7/11/83
9. Consideration of an Application by the Monticello American Leqion
for a Bingo License.
A motion by Blonigen, seconded by Max%ull and carried unanimously
to grant a license for bingo to the Monticello Ameri_an Legion.
10. Consideration of a Request by OSM fcr P.WmburcL:nei,t/Share P.xpenrm
on Pump Modifications.
The mayor noted that upon request by OSM, this item wns deleted.
11. Consideration of a Proposal to laid an Additional Clerical Position
On a Permanent Status.
The mayor noted that upon request by Ridem, this item was deleted.
12. Report on the Findinqs of the Inspection of the Citv Ball Roof.
Council member Blonigen and Building Official Cary Anderson
reported to the Council the condition of the roof at City Ball.
Blonigen noted that the flashing had boon installed improperly
at the point of original canstruction. He also noted that there
was no insulation in the roof, Anderson pointing out that in
fact the plans did not even call for insulation. Blonigen also
noted that the fiberglass shingles were splitting vertically
along the support beams of the building. It was Blanigan's
and Anderson's recommendation that the entire roof be removed,
that an Insulation material be added, that now docking be
installed, and lastly that the roof be reshingled. Eldest in-
dicated that ha talked with the City Attorney about this matter
and the attorney tied recommended that an initial information
letter be sent out from the Administrator's office advising
all thouo cuntraetors and conrultantu related with the original
construction of the problem and n•ywv.tir.h th;ohcc firms to take
sane action to rectify the matter. If nu de Ll u, r, to}en within
a given period of time, the matter would i,+• turnnei4 sva r to tt c
City Attorney who would then pursue the, matter. lata, Council
consensus was that the Adminibtratur uLould irgin h7 sending out
such a letter and that the City,within all of its legal rights,
should pursue recovery of all related expense.
Council member nlonigen also dibcu•:r.ed the condition of the roof
Ott the shelter at West Bridge Park, its noted that while it was
not a safety hazard, it was a bit of a nuisance and it was not
particularly attractive. Eidsm rseconanded that any work on this
shelter be delayed until the spring of 1984. Be stated that so
long as the building Is considered to be safe, we postpone any
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Council Minutes - 7/11/83
work on substantial rehabilitation for the 1984 budget year.
He indicated that properly budgeted for, the shelter could
perhaps be expanded and insulated and have a new roof put on
it. The Council agreed that any major rehabilitation should
be postponed to the 1984 budget.
13. Other Business.
in other business the Mayor presented to the Council the idea
of encouraging a taxi service within the community and request-
ing that each member of the Council give this some personal
consideration so that it may be raised at a future meeting.
Blonigen questioned Roger Mack or. the City's weed spraying
practices. Blonigen noted that he had seen several patches
where boulevard grass had been killed by spraying. Mack
indicated that he did send the workers uut to do some minor
spraying, but lie was unaware of any over use or negligent
use of herbicides that might result in damaging boulevard
grass or private lawns. lie stated Ll6lt he would talk to the
workers about it. There Wing no further business, the. Mayor
adjourned the meeting.
lliomas A. Lidem
City Adminiatrator
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Council Agenda - 7/25/87
4 6 5 Combined. (T. E.)
4. Public Hearing - Tax Increment Finance District q2 - Jim Power's
Proposal - "Power's Strength and Health Club".
S. Consideration of Adoption of a Resolution Giving Final Approval
to Tax Increment Finance District q2.
The HRA and I have worked at length with Jim Powers on his
proposal to construct and operate an indoor athletic facility.
The basic development proposal entails total expense to the
developer of $1,250,000.00- This breaks down into develop-
ment expense of $900,000 for building construction, $200,000
for personal property and fixtures and $150,000 for land
acquisition. The tax increment finance regcest relates solely
to the land acquisition expense. Powers and his partners
apparently are able to secure total financing for building,
property and fixtures. The final calculations on this proposal
reveals that the HRA would acquire the land from Longley at a
purchase price of $149,000, and in turn sell to Pouer'n
Strength and Health Club the same land for the amount of
512,500. The balance, plus all administrative, legal and
contingent expense will be recovered over the 6 year life of
the tax increment district .
There was considerable concern expressed over the feasibility
of such a club. The HRA expressed dome reluctance about going
to public market and being unable to moot their debt obligations
if the club should fail. For that very reason the HRA han
initiated a policy that will require a developer to supply a
letter of credit from a bona fide lending institution, the
procoeds of which will be aesigned to the HRA and will be in
the amount of the total bond issue including interest. Thus,
In any one year, should a developer go delinquent on hie tax
Payments, the HRA would simply draw down from the lending
institution against the developer's letter of credit. This,
along with the other provisions of the developer 'a agreement,
makes the overall riok to the HRA minimal.
Jim Powers will be attonding the public hearing and will stay
for the Council's decision. As of July 19th, a copy of the
tax increment plan has been delivered to the County Auditor
and the superintendent of schools for their comment. I
anticipate the County Commissioners to discuss tho proposal
on July 26th and Mr. Johnson has indicatod that the school
board would discuss It at their first meeting in August.
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Council Agenda - 7/25/83
If we receive early sign offs from both of those taxing juris-
dictions, we may then certify the district with the County
Auditor. Anytime thereafter we may issue the fonds. Wright
County State Bank has agreed to purchase the bonds in the
sum of $167,000.00 for a 95 year period at 9% interest rate.
Jerry Schannon of Springsted has indicated to me that the
9% rate is currently an acceptable rate. Schannon noted that
other bond sales in the recent weeks have been going for
approximately 85 but have been required to provide bond
discount, pay for finance consultant fees, and printing
expense, all of which would push the net interest rate to
above 9. Lastly, if the bank provides us with a letter of
certification stating that they will hold the bonds in their
port folio rather than reissue them for general sale, no
registration will be required.
Powers expects to have the facility operating by December.
They also plan to expand the exterior type of amenities
by adding such things as an outdoor running track and tennis
courts. This, of course, will add additional increment when
constructed.
ALTERNATIVE ACTIONS:
1. Withhold approval - This presumably would have to be
done on some reasonable grounds such as not meeting
the public interest, or the other criteria as stipu-
lated in the Central Redevelopment Plan. I contend
that the findings of fact do, in fact, meet the
criteria stated in the Central Monticello Redevelop-
ment Plan.
2. Withhold approval temporarily - This may have the
effect of raising the land acquisition expense.
There currently is a purchase agreement on all of
the parcels with a projected closing data of
September 1, 1983. It is conceivable that should
the closing not occur on time, then the initial
cellar knowing that the project has proceeded this
far could incroaoa the asking price substantially.
3. Give final approval to the certification of the
tax increment district. This would allow me to
certify the district upon receipt of the sign off
letters from the school and the county, would allow
the HRA to issue bonds in the amount of $167,000.
REFERENCES A copy of Lilo tax increment finance plan (Delivered
under separate cover on July 19, 1983). A copy of the tax
increment district financial statement, copies of letters
from Kant Kjollborg and Jim Metcalf, copy of the narrative
section of the independent feasibility report, copy of tiro
proceedings of the IIRA, copy of tho IIRA resolution giving
approval to the project, copy of the proposed reaclution for
Council adoption of the tax increment plan. 2
POWER'S STRENGTH 6 HEALTIi CLUB
FINANCIAL STATEMENT
Revenue
Tax Increment - 8 years
(Estimate 32,372 annually)
Investment Income
Land Sale
TOTAL REVENUE
Expenditures
Principal
Intere9t
Administrative 6 Contingency
TOTAL EXPENDITURES
�� J
$25E ,976 U
3,500.00
12,500.00
$274,976.00
$167,000.00
96,795.00
8-000.00
$271,795.00
June 21, 1993
Mr. Tom F.idem
City Administrator
Monticello, MIN 55362
Dear Sir:
J
Regarding the Powers Health b Strength Club our plans are as
follows: a 100'x200' building, two floors. Cnnstructlon ti be of
Fab -Con type walls and precast concrete flogs and ronf. Building
will have large windows and outside deck arca.
Present plane call for four raquette bell courts, men's S
women's sauna, suntan booths, aqua massage therapuetic ponl, large
swi�mning pool, dining area, bar area, kitchnn, meeting room, in-
door running track, pro shop, beauty salon and nursery.
Phase 11, which we hope to start in 1984 will include an
notdoor running track, tennis courts, and expansion of raquette
ball courts. j
Outside of building will be complotoly landscaped with black- J
top driveways and parking.
Interior decor of building will have a southern California
typo atmosphere. Carpeting in Interior will be done by an interior
decorator.
If you have any further questions, please feel free to contact
me
S! rely.
:sot Y.)ellfierE�
ownrs Hea1tA-6 Strength Club
WIs
Artralj4 ,Carson
ATTORKEYS AT LAW
P O Bm W
717 Wnt &o�0•ry
Munrtro. Wrie�oa 55362
JAMES G METCALF TELEPHONE
BRADLEYV LARSON (612)2853232
June 21 , 190 METRO
(612)4213383
Tom Eidem
City Administrator
City Hall
Monticello, MN 55362
IN RE: POWERS STRENGTH AND HEALTH CLUB
Dear Mr. Eidem:
This office represents POWERS STRENGTH AND HEALTH CLUB, a
Minnesota Partnership, and Mr. James Powers, a general partner.
Mr. Powers has asked us to write to you outlining the financial
Justifications for tax increment financing and stating the dev-
eloper's financial commitment to his project on Highway 25 South.
This office has beim conferring with Mr. Powers for the past
Hix (6) months concerning his project and has reviewed the
feasibility report prepared by N. Craig Johnson, which report
is dated June 20, 1983. I understand that a copy of this feasi-
bility report has been presented to you. In addition, we have
conferred with other attorneys who speciuliie In real estate dev-
elopment and syndication and the Partnership has conferred with
Investment bankers.
While the following numbers nre at thi:. Nla),e pruposulN, the same
should approximately indicate the prohusul of tht Purtnoi•ship.
The land cunt will be approximately Une itundred i i tty nuusund
($150,000.0U) Dollars and the prtrint t-stimnied cost or this building
is Nine Hundred Thousand ($9U0,000.UU) Dollars. It is anticipated
that the building will require personal property and fixtures of
Two Hundred Thou Hand ($20U.000.OU) Dollars, comprising a total of
One Million Two Hundred Fifty Thuusand ($1,1250,000.00) Dollars.
It is untielpated that permanent financing and investment by other
partners will gonerate Nine Hundred Thousand ($900,000.00) Dollars.
The existing Partnership proposes to contribute investmont and
doveluper'a equity of Two Hundred Thouhand ($200,000.00) Dollars,
Ivuving a balance of One Hundred Fifty Thousand ($150,000.00) Dollars.
Tom Eidem
June 21, 1983
PAGL•" -2-
It is our opinion that in order for the project to succeed, that
the City must participate in the form of tax increment financing.
Our preliminary estimates are that this project, when completed,
would generate additional taxes in excess of Two Hundred Twenty-
five Thousand ($225,000.00) Dollars over the succeeding eight (8)
years.
On behalf of the Pnrtnership, we respectfully request the City to
authorize Lax increment financing to allow this project to be com-
pleted. If you require additional information, we will be glad
to supply the same to you upon request.
Sincerely,
METCALF & LARSON
JAA1L f . ME CALlr'
1
JGAf : sjc
44--s7-
J
F E A S I D I L 1 T Y R E P O R T
PYOPOSOJ Sl.urts/lio-lth F.,cilitY
Montir,_llo, Mn.
N.(;HA1(; J1111NSUN,
�:.\IJt„ �.It.l'.•\.. Vii.,\.I.
1
M A
N. CRAIG JOHNSON. S.R.P.A.. M.A.L. C.M.B. �LJI
REAL ESTATE APPRAISER -CONSULTANT
EDEN IOD BLDG.. 7100 EDEN AVE.
EDINA. MINNESOTA SN)s
16121927.8789
MssrsRent Kjeliberg and James Powers June 20, 1983
c/o KjeIThe
rg's, Inc.
' Monticello, Minnesota 55362
re: Sports/Hedlch Facility
Gentlemen:
In accordance with your request we have completed a feasibility
study pertaining to the captioned proposal.
' Our findings, supportive data and conclusions are set forth in
the enclosed report. In brief, we consider the proposal to he
a�- feasible effort - considering the stipulated underlying assumptions. The projx)sed real estate is, in our opinion,
appropriate in terms of location and the general design
concept.
please advise if we can clarify any aspect of this report or assist
further in the development of this project.
sincerely,
H. Craig Juhnson
ep
e
J
9
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INTRODUCTION
a
Purpose of Report
To examine(1) the economic feasibility of the contemplated
sports/health facility, and (2) to evaluate the proposed real
estate based on the economic potential.
The marku-L-value-of the proposed real estate was not formally
o
estimated; however, many of the considerations developed in the
conventional appraisal process are discussed herein.
Scop
in preparing this Report we inspected the facility site, reviewed
the demographic factors influencing the market area, examined the
preliminary building plans, discussed the various initiatives
required to launch the venture, and - finally - researched
operating data from key sources, i.e.: existing sports/health;
clubs, accountants and individuals familiar with the industry.
�o
Contents
This report has been organized into five discussion sections:
o
- description of the business venture
- the proposed real estate
- location comments - the Market Area
- economic projection
,
- conclusion
e
J
IWIC
THE PROPOSED VENTURE
General
Proposed is a privately owned sports and health club facility to
serve Monticello and the immediate (10/15 mile radius) market area.
The facility will provide or offer: raquetbali (4 courts), an
indoor pool and whirlpool, a running crack, dressing/locker rooms,
saunas, weight/exercise equipment rooms, aerobics room; support
areas will include a barber/beauty shop, a pro shop and a bar/
snack shop.
The beauty, pro and snack shops are to :ie leased to independent
operators; the principal source of revenue is to be from annual
membership dues and usage fees.
Background
The growth of raquet ball oriented sports and health clubs over the
past decade has boon phenomenal, and many close to this industry see
that this is no longer a "fad" - the consumer interest is established
and growing with population change.
Actually, raquotball clubs began as an evolution of the more intense
- and less popular - handball courts. The initial facilities were
pioneered in the "frost belt" cities of the midwest - Minneapolis
one of the first - and the clubs have, in turn, evolved from raquet-
ball to "full servico" athletic clubs. Most newer clubs provide,
In addition.to handball/raquotball courts, a whirlpool, a weight/
exercise room, and saunas. Typically, most charge annual membership
fees (may also charge an initiation fee as well)i with usage fees for
the courts, aerobic classes, etc.
Thr, trend toward (1) continuing success of ".11 managed existing clubs
and (4) proliferation where feasible is probable: "wellness" and
physical fitness are important concerns to many people, patticularly
those in the 18-55 ege range. Recent commentary In the Rolling Stone
suggests that sports/health clubs may Bonn replace the "singlet" bare
as a common mooting place - as interests of individuals change. This
Is probably an undocumented observation but does indicate a high state
of awareness.
li
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Background (cont.)
The first (in Minnesota) r aquetball court open,3d in Edimi in 1975;
there are now about 16 in the Metro Area, with cost of the never
clubs incorporating alternative exercise and supe itt faeiltm.fea.
Feasibility Considerations
In our opinion there are three key points;
(1) competition
(2) socio-economic characteristics
(3) potential members hip
(1) Competition
There are, presently, no competitive facilities in or near
Monticello; typically these would include a YMCA or a public
facility. The nearest. sports and health club is in Buffalo
(12 miles Sw)i this is ono -half the size of the proposed club
and has a substantial membership - the intensity of use and
distance tend to negato its eempetitive impact.
(2) Socio-economic Factors
Montieell,. has a population exreedmng 3000, with an employment
force higher than avorage. The major employer is, of course,
• the nuclear energy pla nt, in addition to the permanent work
force lof ahout 150) r-!wre ,iue a number of pee soila constantly
in training. Antieipsted is the Shurro plant, another puwem
facility to be located acrusn the rtw,r in Big Lake (Sh�rbornn
County); this will prudure a signifiiiant nunber of permanent
jobs. There are other, smallor industries in Monticello toguthr r
with relatively large retail atoron downrown and in the outlying
mall. The second largest employer, presently, is the local
school district.
The remainder of the womk force commutes to Minneapolis. wage
rates aro such that di srretionary income is adequate to enable
local persons t, afford a spurts/hralth club membership.
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THE PROPERTY
site
The site is located within the southeast quadrant of the I-94
and State Highway 025 interchange. The site consists of, approxi-
mately, 3 acres; it is situated within the city limits and is
appropriately zoned. The site is fully serviced with all utilities;
soil conditions are presumed to be adequate for the contemplated
improvements.
A survey or site plan is not yet available. The site appears to
be generally rectangular in shape; it is easily accessible and has
excellent exposure. uevolopment within this interchanye includes a
service station, a McDondld's, and an expanding Best Western Motel.
Development easterly is a planned industrial park; south and west -
into the township - are agricultural uses and a large mobile home
park. The site is mile south of the central business district
- within walking distance of much of the community.
Surrounding land uses are compatible - there are no aspects of environ-
mental depreciation present. This is the key interchange in the
community; the Monticello Mall, restaurants, and related developments
are also present.
Improvements
Proposed is a two level (i mezzanine) structure containing 30,000
square feet of finished area as described earlier. The basic construction
will be masonry, probably "tilt -up" walls and d prefabricated floor and
framing system, such as constructed by F,;b-Con. The drawings, site plan
and hasic costo have yet to be flnalizud.
Construction costs vary considerably for those facilities because of
design variations. There are, however, features club buildings have
in common: extensive electric service, sophisticated HVAC system,
and expensive finishing In the pool, whirlpool and locker room areas.
Preliminary costs are as follows;
Site: 5140,000; this may be reduced to sero if
dasiated under the community's tax increment
program.
Building; $900,000; this represents $45 par SF, which -
generally - should be adequate, depending upon
final Specifications.
__55__
improvements (cont.)
For purposes of this discussion the project development cost,
exclusive of special equipment, fixtures and furnishings, is
$1,050,000.
The building is designed to accommodate several people simultaneously
engaged in a variety of activities; parking space should be ample.
The functional utility appears to be well conceived.
As with most sport/health clubs the structure is designed as a
sr-cial purpose building and, while suitable for alternative
uses, remodeling will be requited. As a result, the developers
should anticipate guaranteeing a large portion (if not all) of
the mortgage debt.
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LOCATION COMMENTS
Community
Monticello is an established community of 1100 located midway
between St. Cloud and the Twin Cities (40 miles NW) at the
interchange of I-94 and Highway 25. This is a progressive
community with a vibrant commercial district and regional
hospital; it is aleo a developing employment center - the NSP
nuclear generating plant is the major community employer; there
are other agri-business and light industries located in a newer
industrial park. Monticello's housing market is comprised of
newer detached houses, small apartments, some cluster housing,
and mobile homes. Residents are a combination of retired persons,
persons employed locally, and a growing number of persons employed in
the Metro Area.
WaUo rates In Monticello are generally comparable to those in the
Metro Area proper. Because of the skilled le vel of employment
(NSP, hospital, school district) wage levels are probably above
the metro averdge.
Summary
In our opinion the market area influences are conducive to the
development of a sports/health facility. A growing population,
middle income wage levels and a developing labor force aro all
favorable factors.
- 7 -
THE MARKET AREA
General
Monticello is Located 40 miles PJW of Minnedpelis along the west
bank of the Mississippi River in northwestern Wright Cuunty.
Across the river, via Highway 25, in Sherburne County; the
western portion is part of Monticello's trade area, as is the
immediato area surrounding the community in Wright County.
The trade area population is estimated to range from 40,000-45,000
persons. The economy is balanced between agriculture, retail
businesses, manufacturing and the HSP nuclear generating facility.
A second nuclear plant - Sherco - is now at the final stage of
governmental approach; if finalized, this facility will be con-
structed across the river near Big Lake, in Sherburne County.
The population is Wright County proper is estimated at above
60,000; this is a growing population as the southerly and easterly
towns have become popular as alternatives to the "2nd ring" suburbs
of Minneapolis. Many county residents (60% in Monticello) commute
to Twin City employment centers, and this trend - while gradual -
is likely to continue.
With increased family growth the population is in a demographic
cycle where younger persons are increasing, in cnnr,rust to more
typical rural communities where the populations are aging. This
is a favorable condition for o sports/hoalth facility as memlwrohips
are likely to be most popular among younger people or family groups
(where the memberonip can be shared), in addition to local busil:eba
sponsored (employee) memberships.
i
Feasibi 1 ity Considerations (cont.)
i
(3) Thi. potential Membership
1 The developers have, through a preliminary mailing, received
an encouraging expression of interest at the projected fee
1 level.
Considering the population characteristics - a growing number of
commuters combined with above average local wage earners - the
potential in terms of income exists. The immediate market area
includes Monticello and the nearby towns in both Wright and
Sherborne Counties - an estimated population of 40,000 - 45,000;
i again, adequate for facility support.
s
9 -
-
ECONOMIC PROJECTION
General
In preparing this pro forma four similar club-, were toured in the
Minneapolis Metro Area. The comparable data gathered has been
encompassed in the financial schedule, along with specific data
furnished by relevant sources.
- most significant is that the concept of handball/health clubs
is still growing rapidly; nearly all the clubs toured were planned
additional facilities or expansion.
Revenue Projections
The primary market for this facility is believed to be within a
15-minuto driving time radius and comprised primarily of man and
• women in the 18-50 age group. An estimate of 5% of the surrounding
population within this category can be anticipated as potential
members. With about 45,000 in the Monticello -Wright County dome -
graphic area it appears reasonable to expect a membership level of
from 1200 to 1500. Most clubs set a minimum age of 15 years for
membership.
Membership fees in comparable clubs range from $175.00 to $500.00
per year, including in some casos an initiation fee. For this study
a flat annual membership fee of $250.00 (projected) appears reasonable.
Anrillary fees survoyed included guest foer. ranging from $2.00-$5.00
(if a-companied by a member) or $10.00 if not accompanied by a member.
The clubs charged per porson per handball court hour on a r�.dnrnd
t,chadulu, from $4.50 to $2.50, depending on the num.er playxngs
more popular was one hourly feo of approximatply 56.00 pvc hour
for the entire court regardless of tho number of player,. Thio
16.00 was reduced to $5.30 for summor hours at one club. Per this study
a court rate of $6.00 par hour was selected.
Other foes included aerobic s at $5.00 par hour, suntan booths at
$7.00 par half hour, and towel fees of 40e. Lockers are usually
provided on a daily basis at no foe; members appear to expect a
locker as part of tho membership dues unless they agree to a
specific locker rental for a full year.
Corporate duos warn offered at varying disruunts only if for five
or more employee memberships per firm.
1
- 10 -
Revenue Projections (cont.)
Rental fees were considered at $1,000 per month for bar, food
and beauty shop rather than detailing the operating costs of each
unit.
The most frequent hours of operation for the clubs were between
6 a.m. - 11 p.m., 7 a.m. - 10 p.m. weekdays and 6 a.m. - 6 p.m.
Saturdays, 1 p.m. - 6 p.m. Sundays. To compensate for prime and
non -prime playing time and reduced summer usage the fee estimates
wore based on a ten hour day for only 260 days d#`r year.
Expense Projections
personnel expense is the major item and, as in any business, the key to
success is good management. Control must b: maintained to keep
p+.uplu, ui)cratiundl, and maintenance expenses at an overall minimum
consistent with good service.
This study determined that the number of full time equivalont employees
varied widely depending on the number of supervised exercise programs.
For our purposes staff of part time and full time totalling eight
full time equivalent employees was projected to operate all shifts.
Staff included: manager, assistant manager/receptionist, receptionist
clerk, exorcise supervisors, janitorial, including fringe benefits.
For purposes of this study ut ilities were based on a written heating
proposal furnished by Minnesota Ground Water Company, pool supplies
and electric were based on actual experience of competing clubs.
Comprehensive insurance coverage for building and grounds, and
liability coverage for $1 million was quoted by the Jim Fostor
Agency of Monticello. Real estate taxes were computed and ostimatod
by the Wright County Assessor 'a Office.
In general the majority of the expenues remain fairly constant for
operating the club even as membership grows. Therefore sproadinq the
costs over a larger base of membership, say 1200 to 1500, would be
necensary for a successful operations.
MONTICELLO HEALTH CLUB
Gross Revenue Projection - Detail
Proposed Annual
Membership Fees:
$00 members
at $250.00 ............. $125,000
750 members
at $254.00 ............. $187,500
1000 members
at $250.04 ............. $250,000
1200 members
at $250.00 ............. $300,000
Ancillary fees:
Guest fees:
3 guests per day for 200 days per year
averaging $5.00 (xer guesL ........... 53,000.00
increasing to 55.00 as membership
increases
Court fees:
$6.00 x 4 courts, or $24.00 per
hour for 10 hours - $240.00 per day
x 260 days per year, or a total of ...562,400
(range of 555,000-565,000 bayed
on membership growth).
Aerobics, suntan, karate and massage fees were
considered as a group for 30 members
per day utilizing 1 hour of service
at an average of $5.00 per service
for 200 days .........................530,000
Rentals for
kitchen, bar and pro shop projocted
to average $3,000 per month ......... 836,000
Summary of Gross
Revenue:
Number of Memberships
504 750 1040
1200
Dues
$125.000 $187,500 $250,000
$300,000
Guest. fees
3.000 4,000 5,040
5.000
Court fees
55,000 60,000 62.000
65,000
Aerobic, sun,
kdrato 25.000 30,000 35,000
35,000
Rentals, bar
36,000 36,000 31.000
36,000
Total dues
and fees $244,000 5317.500 ,388.040
$441,000
I
J
'.J
12 ` "•
MONTICELLO HEALTH CLUB'
Pro Forma Statement
of•Re veriuo and=Czpensn
° Annual Basis
Number of
Memberships
'
500
750
1000
1200'°
Revenue
Membership duos
125,000
187,500
250.000
300,000
Fees:
Guest fees
3,000
4,000
5,000
51000
Court fees
55,000
60,000
62,000
65,000
Aerobics, sun,
L _ karate, massage 4
25.000
30,0.00
35,0.00
35,0.00
Rentals bar, kitchon
and pro chop
36.000o
36,000
36,000
36,000
Total duos and fees:
244,000
317,500
388,000
441,000
0
Functional Exponsen:
Salaries and related pay-
roll and benefit expenoos
140,000
140.000
140,000
140,000
' Advertising
1,000
1,000
1,000
11000
` Printing and stationery
1,000
1,000
1,000
1,000
Repairs and maintenance
3,000
3,000
3,000
3,000
Supplies, pool, linen,
laundry
6,000
61000
6,500
6,500
Insurance
51500
5,500
5,500
5,500
Telephone
1,200
11200
1,200
1,200
Heat
8,000
8,000
8,000
8,000
Electric
15,000
18.000
20,000
20,000
Aldrm Sorvico
400
400
400
400
Auto and Travel
600
600
600
600
Subscriptions
100
100
1c0
100
Lawn and plow
300
300
300
300
Postage
$00
750
1,000
1,200
Accounting and Legal
2,500
2.500
2.500
2,500
Roal Estato Taxes
28,000
28.000
28,000
28,000
Miscellaneous
600
600
600
600
Total Expenses before doproci,
:on,
interost,and income tax-
$213,700
$216,9
8219,700
6219,900
Excess of rnv_ is over ex'-
30.100lug
lav
e168.300
8221,000
�4W
13 -
CONCLUSION
The proposed facility has, we believe, the necessary attributes
for success; location, design, a dynamic market area, and a
reasonably non-competitive climate.
As projected, the minimum membership should be from 800 to 1000
in order to service a mortgage debt or not lease on the proposed
structure. °
We believe we have considered the necessary factors influencing
both the economics of this proposal and the real estate.
i /'.
N. Craig Johnson Vance D., DoLonq/
Juno 20, 1983.
L)
CERTIPI_CA.T-ION
The undersigned does hereby certify, the following exce pt as
otherwise noted in this Appraisal Report:
1.
I have inspected the property.
2.
I have no present or contemplated future interest
in the real estate that is the subject of this
Appraisal Report
3.
I have no personal interest or bias with respect
to the subject matter of this Appraisal Report or
the parties involved.
° 4.
To the best of my knowledge and belief the state-
ments of fact contained in this Appraisal Report,
upon which the analyses, opinions and conclusions
expressed herein are based, are true and correct.
S.
This Appraisa-1_Repor.t-:sets, forth all :of the -limi,t-a
ing conditions (imposed by the terms of may assign-
ment or by the u ndo.rsigncd) affecting the analyses,• a
opinions and conclusiona contained in this Rop'ort•.
6.
This Appra'i'sal Report has been made in conformity
with and is,subject to the requirements of the Code
of Professiona-I Ethics and Standards of P'rofossionAl
Conduct of -the Amorlcan Institute of Real Estate
'Appraiserwo f the National Association.of Realtors
and, t'ho Society of Real Estate Appraisers:.
7..
No one other than the undersigned prepared the
analyses, conclusions and opinions concerning real
estate that are set forth in this Appraisal Report.
S.
The American Institute of Real Estato Appraisers
conducts a voluntary program of continuing pro-
fasaional education for its desiynated members.
MAI and RN mombera who meet the minimum standards
of this program are awarded pariodic educational
Cortifieation. I am certified under this program
o
through 12/13/83.
I
N. Craig Johnson. ,..A.1.
MINUTES
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING
June 22, 1983 - 7:30 P.M.
A special meeting for the Monticello Housing and Redevelopment Authority,
being properly called, was duly held at 7:00 1,.14. on Wednesday, June 22,
1983, in the City Council Chambers. Mumbers present were Vokaty,
Reeve, White, Cochran and Sehrupp. Momiers absent: none. Also present
was City Administrator, Tom Eidcm.
1. Chairperson White called the meutiny to order and advised that being
a special meeting, the sole item of business would be consideration
of the development proposal to bh• presented by ftr. .him Powers.
2. White requested Eidem to go over trio financing alternative' 'hat
had been submitted. Eidem explained that Springs.ted, Inc., the
City's finance consultants, had prepared four pur:sible finance
alternatives. All proposals were using an estimated interest rate
of 752 and looked at receiving tax increment for a period of
eight years under an economic develolmment proposal. lie did note
that two proposals did not. include capitalized interest and, as
such, would require an upfront financial committment from the
developer. The other two proposals did include capitalized
interest in the amount of the bond issue and thus, if the
development proposal generated the required amount of tax
increment, the land subsidy could Lu such that the land Cuuld l,u
( sold to the developers for a minimal amount. Eidem explained that
the land acquisition cost was projected for thia purpose at
$150,000.00 and incidental and contingent expenses were estimated
at $7,000. lie noted that for tho BRA to make the acquisition,
they would have to sell tax increment finance bonda, but that
since Lite value was under $300,000, the City could pursue a
private placement or a negotinted sale with a single lending
institution. This, Eidem said, would eliminate a substantial
amount of expense in legal four), paying agent foes and the
expense of going to public bidding.
Several members of the IIRA expressed concern over the possibility
Ci default of the development and what would occur to the City's
commitment to roLiru the bonded debt. One uuggeotion Eidem mads
was that in preparing the developer's ngreemont, the BRA could
require a letter of credit frum the finance inst.itlLian iepre.-
senting the developer that would seCUI'e the boncled debt in the
event the Laxer) (and thus Lhr, tnx ineremonL) fell delinquent.
The consennus of the Authority was that riish .t Ie LLVi of
credit. would the doomed essenLial for Lhis project, and, in fact,
should probably be made a noceusnry condition of 4111 Lax incre-
ment projocts which may Corso 1.1'010 them in the IuLuro.
HRA Minutes - 6/22/83
White expressed his concern about running such a fine line on
our tax increment finance projects. He stated that he was
somewhat concerned that the formulas were always being
developed to balance out at zero, and said that he did not
think it unreasonable to expect some contribution from the
developer that would help build a reserve fund for the HRA.
Various alternatives of achieving this were discussed. The
Authority directed Eidem to investigate as many alternatives
as he could in order to make a presentation to the Authority
at their next regularly scheduled meeting _
Mr. Jim Powers, proposer of rower's Strength and Health Club,
was present to go over his project for the Authority. He
presented to the members a copy of the floor plan, a feasi-
bility study, and a site plan. He discussed the nature of
the business operation and type of activities that would
Le available. He expanded somewhat on the data provided in
the marketing feasibility report which indicated that such a
project was fiscally sound and would generate substantial
revenue to maintain a successful operation. On a motion by
Schnpp, with a second by Reeve and eorricd unanimously, the
Power's proposal was given preliminary apl:roval and authori-
[dtiun is given to proceed witn the tax increment financing
procedure. :elution by Vokaty, seconded by Rrcve directing
Eidem to negotie.te and execute a purchase_ agreement for the
parcels described as follows:
Lot 1 -Block 1, lot 2 - Block 1, lot 3 - Block I. all in
Commercial Plaza 25, and Lot 1 - Block 1, Lot 2 - Block 1,
Lot 5 - Block 1, and Int 6 - Block 1 , all in Commercial
Court
at a price of $149,000.00 and at setting a public hearing
bofore the Monticello Houaing and Redovel opment Authority
to accept public comment on the disposition of public lands,
said hearing to be hold at 7:00 P.M. on Wednesday, July 13,
1983 in the City Council Chambers. 710a motion was carried
unanimously.
A motion by Vokaty, seconded by Rneve and carried unanimously
rescheduling the regular July Meeting of the HRA to coincide
with tho public hearing scheduled fur July 13, 1983. without
a furmal motion, the HRA diructcd Eidem to cnmmonea neyotiations
for the private placement of a tax increment bond issue. Thero
buing no furthur business white adjourned the meeting.
Thumas A. I'i<cm
City Miminiatrar-or
MINUTES
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING
July 13, 1983 - .7:00 P.M.
The regularly scheduled meeting of' the Monticello Housing 6 Redevelop-
ment Authority was duly held at 7:00 P.M. on Wednesday, July 13, 1983 in
the City Hall Chambers. Members present were Chairperson Philip White,
Don Cochran, Bud Schrupp, Vic Vokaty, and Jack Reeve.
The meeting was called to order by the chair.
The chair asked if the minutes of the 6-1-83 and 6-22-83 meetings were
approved, etc;. Bud Schrupp Motioned that they be accepted. 2nd by Vic
Vokaty. Voted and approved.
Tom Eidem informed the Authority on the information he received in re-
gard to the Tax-increment-Financing/disposition of public lands. Eidem
received a bid from this Wright County Bank @ 92 for 9; yrs. plus addition-
al expenses of issuance and registration costs,. lie went on to say that
the latest bid was at 822 . There would also have to be Financial Consult-
ing fees added.
It was the opinion of Springstead that the net interest rate of 9.2%
was a very good rate. Eidehn asked Springetead to ,give him a reverse com-
puler run. Tire projected increment waa $31,900. Eidm wants to know what
$$$ amount they would need from the developer upfront. lie also knows they
are going to charge the developer some $$$$ amount, say 2-I0R, to go into
the Authorities kitty. Eidem also thought it- a good idea to prepare a
bond opinion.
If the land is purchaocd, the bank will offer certification:that. they will
not be reoffered, and be exempt from registration.
It was brought up by the Authority that added expensed should be passi-d
on to the developer. Not knowing what to charge upfront, makes it hard 'to
place an amount on the, land. Eidem wam-getting the figures together the
morning of 7-14 so that the above could be determined. It was suggested
by the chair to hold s special meeting soon to clear up this matter and
proceed to the .next stip. No objections were raised. The chair closed the.
public Hearing because there was no public involvement.
Chairperson White approved of Eidem's proposal (to charge a flat fee of
$3500 just to walk in the door. This amount is not refundable. It would be
used to cover the cities fees.) Eidem went on to explain that the same
amount of paperwork, number of meetings, etc; goes into every T.I. F. plan,
whether it be a large or small project such as the 1%I project.
Cochran was concerned that the Authority wouldn't recover all tile expenses
the city incurred. Ile didn't want to take money from the developer unnecess-
arity, but fecla a flat fee of $2500 would be adequate at the present time.
Eidem told the Authority that at present the city doesn't get any reim-
bursement for the activities they perform. lie went on to suggest that the
IIRA should reimburse the city for its services from the flat fee. charged.
Ibis would also help the city adhere to its budget. Cochran agreed and
suggestcd that based on the 198J servieca performed, Eidem could used a per-
centage to give the [INA an idea of what amount the eity will have for expenses
in 1984.
Another discussion was held in regard to the amount to be charged the de-
veloper. Schrupp was in favor of a 2;2 or $2500 amount that could be switched,
depending on if it were a large or a small project. This would help eliminate
the developer of a smaller project from being harshly hurt in the pocket book
for virtually the same services.
Cochran, Schrupp, and Eidem all agreeon the above type of arrangement, but
vent Eidem to propose an amount to use (up to 10% limit). If they use this
method, they must then pay aLl of the cities expenses involved with HRA
activities. Chairperson White suggested playing around with different figures
until one is found that would benefit all concerned. Eidem told the board that
this fee would be their only source of income. Cochran motioned that Eidpm
prepare a resolution on administration fees to be built in costs. 2nd by
Reeve. Voted on, passed. Chairperson White motioned to adopt HRA Resolution
/l. Vokaty 2nd the motion. Voted on passed. (on file at Monticello City Hall).
Chairperson White suggested postponing items / 566 until the special meeting.
It was suggested to have this meeting at Perkins on 7-15-83 @ 7:0U A.M. At that
time Eidem will have the figures needed to proceed with the agreement. IA dem
proposed they settle the Development Document (a legal paper) at the reg-
ular meeting. Eidem discuused items 1-19. Jim Powers was told that if the mill
rate dropped and their was a difference, he would have to pay that amount to
the IIHA. the was also told that if sold the property after 9 yearb and the new
owners default, the rights go with the property.
Eidem went through the Fillanl a I'lan together with IIRA and Powers. CitemsA-Z)
Section I will have to be changedby 7-15. l.tem L (duration of district) was
changed so that it now covers. Chochran wanted to know what happens to either the
hospital or the school district when they loose the taxes duo them , when a T.L.F.
Planis implemented? Eidem explained that they would probably be better off after the,
redevelopment than before, and after the increments are retired they will be getting_
much higher taxes. It is to their benefit to go along with the plan. (an file at
Monticello City Hall).
Cochran asked Eidem about the BRA being audited. Eidem told him that they
would have to audit@ the same as the city, by an outside indipendant auditing
firm. Chairperson White felt they should eherge Powers 82500 indipendantly
of any other T.I.F. Plan in the future. Any remaining monies at the end of
the 8 year period could bo used by the H.H.A.
Cochran suggested that Eidem bring a proposal of the 92 differential that Powers
will have to pay to the 7-15 meeting, so that they can set the acquisition fee.
No motion at this time. Eidem recomended postponing the Resolution Adopting
the Plan until the 7-15 meeting. Chairperson White motioned that they postpone
it to the 7-15 meeting. 2nd by Cochran. Voted on and passed.
There being no now business, Chairperson White adjourned the meeting.
Allen L. Pelvit
Dirt-ctur of Economic Uevelopment
/�µ S-
MINUTES
HOUSING 6 REDEVELOPMENT AUTHORITY MEETING
JULY 15,1983 - 7:00 A.M.
A special meeting for the Monticello (lousing 6 Redevelopment Authority,
being properly called was duty held at 7:00 A.M. on Friday, July 15, 1983,
at Perkins. Member present were Chairperson White, Vokaty, Reeve, Schrupp,
and Cochran. Also present were, Tom Eidem, City Administrator, and Allen
Pelvit, Director of Economic Development.
The special meeting was called to order by the chair, and asked Eidem to
give his findings for the Powers land acquisition costs. Springstead quoted
Eidem a 97, rate for O� years. Using this rate the Ave. Annual Debt would be
$30,600, increment $32,365, resulting in a Bond Issue of $167,000. This is
$10,000 under the proposal. Eidem suggemted that $10,000 should be paid up-
front and held in escrow. Also, to obtain a zero balance a total of $15,000
would be needed. Eidem also suggested that Powers be charged a $2,500 service
charge, and the remaining $2,500 be added to the $10,000 to pay for land aequi
sition costs and give a zero balance. The $12,500 is to cover the costs of
interest etc,. The $2,500 is a service charge for city expenses. The Author-
ity calculated the 22 or $2,500 method as follows: $149,000-$12,500-$136,000
multiplied by 2Y, ($136,000x.02-$2,730) The Authority decided to use
the lesser amount of $2,500 in this case. The Authority, as a whole, is
i:t agreement that the total of $15,000 is not unreasonable and that Powers
knew he had to pay some out of pocket monies up -front.
Eidem suggested the Authority has other obligations in the community, other
than obtaining land for this reason. Eidem also suggested that the Author-
ity not .•ret with a zcru bAlan. everytime.
Because of the Estimate of Indebtedness section the amount is now $167,000,
instead of $177,000. The remainder of the sections are the same except
for filling in the blanks with the $12,500, and $2,500.
Eidem, again confirmed that the Wright Canty Bank will provide a Certi-
fication and will hold in their portfolio. The bonds will sell anytime
after July 25, 1983. (if approved at the City Coucil Public meeting.)
Motion to accept the land cost sale by Schrupp, 2nd by Reeve. Voted on 6
passed. Another motion to accept Resolution • 2 by Cochran, 2nd by Schrup.
Voted on and passed. Rldvm will give copies of the proposal to the council
prior to the July 25,19113 meeting for their review. The IIRA will have a rop-
resrplotivo at the .onsivil mr. ting. (Public Hearing) (oil filo at Monticello City
He1i1.
There being no other business Chairperso White adjourned the meeting.
Allen L. Palvit
Director of Economic Development
RESOLUTION ADOPTING TAX INCREMENT FINANCE PLAN 02
HRA 1983 - 42
WHEREAS, the Monticello Housing and Redevelopment Authority (HRA)
has passed a resolution adopting a redevelopment plan known as
the Central Monticello Redevelopment Plan, and;
WHEREAS, the Central Monticello Pedevelopment Plan in part, states
objectives for economic development to wit, land acquisition as an
incentive to private enterprise, and;
WHEREAS, pursuant to Minnesota Statutes 273, the City of Monticello
is authorized to establish a tax increment econcmic development
district, and;
WHEREAS, a development agreement for econumie development shall be
entered into between the Monticello flousinq and Hedevelolment
Authority and Power's Strength and Health Club, the developer.
VOW TIIERIFORE, DE IT HEREBY RESOLVED by the Iluusing and fedevelop-
ment Authority for the City of Monticello:
1. The tax increment econum:c development finance plan relating
to tax increment district 42 be, and the same hereby is,
adopted.
2. The City Administrator transmit topics of said plan to the
City Council with a request for a public hearing, to the
Superintendent of Schools of School Diatrict 4882 and to
the County Auditor of Wright County with a request fox'
comment.
3. Upon the holding of a public horsing, Intu 1, 2, 5 and G
in Block 1 of Commercial Court and Into 1, 2 and 3 in
Block 1 of Commercial Plaza 25 to certified to tho County
Auditor of Wright County, State of Minnesota, as Monticello
Lax increment district 1112.
hlopted this 13th day of July, 1983.
Phil WhitoU Chair
AI"MIST :
Thorns A. iiidem
City Admini all slot
RESOLUTION ADOPTING MONTICELI,O -f
TAX INCR.D1ENT DISTRICT #2
WHEREAS, the Monticello dousing s Redevelopment Authority purruant
to a resolution passed the 15th day of July, 1983, has adopted the
Monticello Tax Increment District 02 and accompanying finance plan,
(A copy of which is attached hereto) and;
WHEREAS, the Central Monticello Redevelopment Han in part, states
objectives for economic dovclopm,.nt, to wit, land acquisition as
an incentive to private enterprise, and;
WHEREAS, pursuant to Minnesota Statutes 273, the City of Monticello
is authorized to ostablish a tax increment ec.,nomic development
finance plan, and;
WHEREAS, a development agreement for economic development has been
entered into between the Monticello Housing and Redevelopment Auth-
ority and Po-or's Strength and licalth and Club, the developer, and;
WHEREAS, pursuant to Minnesota Statutes 273, a public hearing was
duly held on July 25th, 1983, at which hearing all persons interest-
ed in making comment were allowed to make said comment, ands
WHEREAS, the City Administrator Inns submitted to the Superintendent
School District #882 and the Auditor of Wright County, a copy of
such plan an required by law.
NOW THEREYORE, HE 1T HEREBY RESOLVED by the City Council of the
City Council of the City of Monticello that.:
1. The tax incrorront economic finance plan known ao Monticello
Tax Increment District 02 Finance Plan 8, and the sates
hereby is adopted.
2. Thu: City Adminintralor is direct -ed to tranrmit a copy of
said plan to Lite Auditor of Wiic�ht County for certification.
3. The Monticello Ilouuiny and WNduve.l Ol1menL Authority ;s hereby
authorized to issue bundn in the amuunt of $10,000 for the
purpose of carrying out Lite tax increment finance plan.
Alopted thin 25th day of July, 1993.
Arve A. Grimumo, Mayor
ATTEST:
Themndn A. Eldem
City Adminiou ••r
Council Agenda - 7/25/83
6. Final Consideration Of Rehabilitation of Pedestrian Lighting
on the Mississippi River Bridqe. (J.S.)
As you know I polled the Council on this item at Tom's request,
as Tom did not wish to see it on another agenda and would
rather see the project dropped. As you know we have been
trying to get in touch with Dave Hoskin to obtain a quote
from him since we first asked him for one on Jun 28th. He
would not return calls and we could not reach him.
He did, however, deliver a quote to City Hall late Thursday
which I received Friday morning. His quote is for $1,650 for
the 4 fixtures and $1,985 if 5 fixtures are needed- Dick
Oslund from Double "D" Electric stopped in Friday morning
and said he may be able to have his quote in by Monday.
As you may remember, Olson's quote was for $1,864.80 for
4 fixtures or $2,180.80 for 5 fixtures. This is $195.80
to $214.80 over He skin's quote.
I have about exhausted any further discussion on this matter.
My recommendation? Do it or don't, do it but don't, put it
on another agenda.
co_
Comments from Tom Eidem on Bridge Liqhtinq Situation.
At the last meeting, the action you took was to delay a decision
until John Simola returned from his vacation. At that time we
had only one bidder who met the deadline that we had stipulated
for bidders. Even at that time, if you will recall, had we re-
ceived other bids, I would have heartedly recommended that we
discard all bids and begin again, since the one bid had been
published in advance in the paper. As I see it, the only
decision that needed to be made after the last meeting was
shall we do the project or shall we not. We knew what the cost
would be if we elected to do it. when John returned, I asked
him to simply ask everyone whether or not they were in favor
of pursuing the project. If, based upon the sole bid, the
majority of people were opposed to the project, then the
proposal would die a quiet death and not appear on the agenda
again. If, however, the majority of people were in favor of
pursuing the project, we would put it on the agenda for
authorization of the expenditure. As it has turned out, after the
closing of bids, we have been presented with two more bids, both
of which I consider to be invalid since the first bid was
published. I think to award the job to a bidder less than
that which was published would be highly unfair, and perhaps
even legally irresponsible. I think at Lhla point iL wuuld Lu
unwise to pursue the project any longer unless we intend to
invite scaled bids for a future decision. For us to go out
and pursue bids after the bids closing date because the first
one did not appeal to us, I think is somewhat unethical in a
professional business sense. If we wore dissatisfied with the
sole bid, than that bid should have been rejected and now bids
invited. we should not extend the bidding deadline in order to
secure added bide. The other contractors were invited to submit
a bid, they chose not to, therefore, in my estimation, they should
not be considorod for the job. I think it is beat for the City
at this time to simply abandon the project for this particular
construction season and perhaps reinvestigate the entire matter
from a now perspective next winter or very early spring.
Council Agenda - 7/25/83
7. Consideration of a Resolution to Continue the Cable Franchisinq
Process. (T.E.)
The Minnesota Cable Communication's Board requires that each
City participating in a joint powers agreement adopt a resolution
stating the advisability of continuing on with the franchising
process. It also relates to a needs assessment which was done
some time ago by Gary. The needs assessment has evolved under
State guidelines to a system wherein community leaders made the
determination that cable can provide services that are determined
to be desirable and in some cases needed. No longer is a com-
munity forced to go to a household by household survey. This
resolution states simply that in the opinion of the community
leaders the franchising process should be continued so as to
ultimately provide cable to the community and the school.
The Joint Cable Commission to this point has met on a regular
basis every two weeks and have discussed basic policy decision
and the formulation of the Request For Proposal (RFP) . Our
legal counsel is currently forming all that information into
the final document. This final document will be submitted to
each of you for review prior to going to the bidding process.
Thera arc currently 10 communities involved in the joint powers
agreement. Other cities may be added before the cable service
territory is deemed complete by the State. Our commission has
requested that all affected school districts form their own
advisory group and send a representative to our commission
meotings so as to provide comment and opinion from the school
district's point of view. I think there is unanimous con-
sent that the potential of cable for out weighs its current
offering. That is to say the educational and institutional
uses which are now developing are far greater than the notion
of receiving 11BO and 24 hour sport's programming, for instance.
Our projected timetable in that the RFP bo submitted to bidders
in the early fall with bids and contract negotiations and
franchising occurring over the winter months. Actual con-
struction of the system would then begin by next spring and
may take as long no a year, year and a half to complete.
RUERENCES: A copy of the resolution to be adopted.
- 4 -
RESOLUTION DETERMINING THE ADVISABILITY
01' CONTINUING TIIr PRANCHU; n1G PROCESS
WHEREAS, the City of Monticello is included in an approved cable
service territory which includes 10 other cities in Sherburne and
Wright County, and;
WHEREAS, the City of Monticello shall be the franchising authority
for the cable system to be installed within its corporate boundaries,
and;
WHERCAS, the City Council has been informed and will continue to be
informed about cable communications by its repro sentativea to the
Sherburne Wright Counties Cable Communications Commission (SWC4),
and;
WHEREAS, the City of Monticello has assessed the communication
needs of the persons residing within the City of Monticello, and;
WHEREAS, the summary of the needs assessments of the City of
Monticello is publicly available from the City, and;
WHEREAS, the uuudo JtiGU6bmebLb iudiCn Luo �:u:tain Calle Juuanu,i—
Ccation needs of the citizens of Monticello which would be satisfiod
by a cable ccc munications system.
NCw T1117RIM—ORI., BIC IT RESOLVED BY TIM MONTICELLO CITY COUt:CII. that
it is advisable at thin time to C011111mo the franchising prOcosc
Lhraugh pairtici)1ntiOn in the SWC4.
Adopted this day of 1903.
ATTESTi
Thomao A. l:idom
City Administrator
Arve A. Grimumo
Mayor
Council Agenda - 7/25/83
8. Consideration and Evaluation of the Conduct of the Monticello
Jaycee Circus and the subsequent Waiver of the Fee. (T.E.).
At the June 27th meeting, you stipulated that a representative
of the Jaycees should return after they had held the circus.
There was considerable discussion at that time and concern
expressed over proper parking. The Jaycees also requested
that the traveling show fee be waived for their non-profit
organization. Ultimately, the decision that was reached was
one of "we will evaluate your performance after the fact and
at such time determine whether or not to Waive the fee". As
of this writing, of course, the circus has not yet been held.
I encourage however many of you who wish,to observe the final
results of circus day. If you are satisfied that the Jaycees
put forth enough effort to accommodate the traffic and parking
needs as well as monitoring the overall circus operation, then
we can simply return the check that they submitted to us for
the license fee.
_5_
Council Agenda - 7/25/83
9. Consideration of a Request to Relingt%ish an Easement for
Street Purposes - Dale Lunqwitz, Oakwotd Industrial Park. (T.E.)
In September of 1977, the Oakwood Industrial Park partnership
granted to the City an casement which runs over the northerly
40 feet of the north half of Wt 4 in Oakwood Industrial Park,
the easement being permanent for roadway and utility purposes.
The north half of lot 4 now is up for sale to an industrial
developer from Willmar. The individual hopes to set up a
plant to manufacture acetylene gas and is apparently very
interested in this particular lot. He is however concerned
with meeting all of the setback requirements and having
expansion room for the future. The main concern is whether or
not to begin to measure the side yard setback limitations
from the south line of the 40 foot casement or from the north
property line which is also the north line of the 40 foot
casement. At this point, it is staff's interpretation that
there being a roadway casement the setback would have to be
figured from the southerly line of that roadway casement.
If, hrnnever, thn roadwav portion of the easement were lifted
( (or adjusted) the setback would actually go from the line
1. which is 40 feet north of that point. Even though the developer
could not build any kind of a structure over or on top of that
easement, it would help him meat all the zoning requirements
as well as the statutory requirements for his particular busi-
ness. Dale iungwitz has indicated to me thatnone of the Oakwood
Partnership can recall why a roadway casement would have been
provided for. They clearly recall that the casement was
negotiated, and it in their recollection that it was for
utility purposes; they speculate that the roadway casement
was more of an error rather than a negotiated point. As such,
Dale will be present requesting that the casement only for
roadway purposes be lifted.
Staff has discussed this and John Simola fools that it would
not be beneficial to give up the casement now that we have it.
tie fools that as Lot 5 develops into a well field, which it
probably will, having rear access to our proporty would bo a
benefit to the City. One simple benefit would be the lessor
cost of constructing the aecoas along this casement to the
northerly and of the lot an opposed to constructing a
driveway all the way to the north end of the lot from Chelsea.
It's simply a matter of being a shorter distance and thus a
cheaper project. John aloo pointed out the south half of the
40 foot casement is a drainage ditch that in quite deep. This
ditch drains most of Micmac Park and for this particular
ditch to ever be filled or used, the parson intending to use
- G
Council Agenda - 7/25/83
it would have to put in an 18 or 24 inch storm sewer which could be
very costly. Hence, the only roadway space that is developable
would be the northerly 20 feet of the 40 foot casement.
Some other considerations: This is not a dedicated street, but
rather an casement for roadway purposes; we do not have a similar
40 foot easement over the property abutting on the north, and thus,
we do not the 80 foot required street area; even if we had the
full 80 foot dedicated street through these parcels, development
would be highly improbable since the physical extention of the
street would run directly into the freeway; development also
would be highly unlikely due to the existence of the drainage
ditch and the considerable expense it would require to construct
a storm sewer system in order to allow a developed street over
the top.
I have consulted with Gary Pringle on this matter, and because
i,t is an easement, if the Council elects to lift or alter said
easement, a simple motion will suffice. Not being a dedicated
vtreet, the. City would not be required to no through the formal
vacation process. One solution we have considered that we think
will accommodate all parties concerned would be to simply insert
the word "private" in front of roadway. If necesoary, we could
change the word roadway to driveway. Thin adjustment would
eliminate any question of the property in question as being
a street and thus allow the land to be useablo with respect
to zoning setback requirements, but would still provide the City
as the owner of Lot 5 access to its property. A variation of
this alternative would be to retain the 40 foot underground
utility casement but amend the roadway easement to be affective
only for the northerly 20 feet of the 40 foot casement. 1 would
also like to point out that the notion of building a street
through hero really serves no function. There in no land that
would be served by that particular street. The parcel abutting
to the north has acceas from 11iocnas Park Drive and Lot 0 of
Oakwood has accoso from both Industrial Drive and Choloca
Our lot, Lot 5, has access from Mclean so that the roar access
is ooley for our convenience and not really for public benefit.
ALTERNATIVE. ACTION;
1. Deny any alterations to the enactment - Thin may offoct
the final decision of the developer to locate his plant
in Monticello. Ifo to interested in this locale bocauac
a by product of hia process can be used by NSP. The
other aito he may be considering is in Becker.
- 7 -
Council Agenda - 7/25/83
Our information indicates that his business may be a
rapid growth business, and we would hope to gave him
select Monticello.
2. Alter the easement to provide private access to the rear
of Lot 5 - This would allow full utilization of Int 4
by the developer, but would still provide us with a con-
venient access, in the event that we ever need it, to our
property. Because of the substantial ditch, we can be
pretty sure that he will never wish to build that far
to the north.
3. Suspend the roadway easement completely - This would still
provide us with underground utility easement, but would
eliminate the convenience of a rear access to our property.
RECOM14ENUP-D ACTION:
I recommend that we negotiate an altered roadway easement
providing the City with private access to Lot 5. This
strikes me to be the most equitable position for all parties
concerned. My inclination is to stipulate that the under-
ground utility will remain at 40 feet and the private drive-
way casement will be restricted to the north half of the 40
foot casement or the northerly 20 fact whichever would be the
appropriate wording.
REFERENCES: A copy of the original easement, a map indicating the
site and the parcel in question.
- 8 -
sr pr. twin No. 2&8�. wi.aw �. wren. ��---
_
g �fl�t;ittiCt. rfaG thr. eth day ..f Saptcmbcr _ ion._ .
Oetrsor+e Gaiomod.iaduatrial Park, a pea Ll partnerahlp tinder the lave of the State
of H nneeate
of the Corswty of .lh'ight uhd State of KLMOeota _.. .. ..
pa,j y• _ of W pha part. and 'life City of lbritice" , Is Usimicipal .
s oorporutio s under the laws of the 3taae of .. Utrmamota party of the crowd port.
alinraat:f. That the aid Party of tM ltrrt fart, in oonetdermNoh of the saes of
.Ow Dollar and other hood and valuable c4n►'.i0retion VDISIZUR
to it in hand paid by the raid party of the second rrrrt, the ruwipt teAwwf is
hereby aeknow1rdted. de as hereby Omni, liargaie. Ouitclain,, and Canny unto the said party of
the sreoad part, its eueeeahrn and asdtu, Iroenrr, all the tract ur parcel of land light aand being
in the C y�i t anJ Male of Ninnesiota. di rihrd w folloiro, to•wit:
PARCffi 'NM . which Easement to runt
No of Lot 4, Block 1, Oakwood Industrial Perk, according to the plot
on file in the office of the O=ty Recorder, Wright Goumty, lBnnesota.
A permanent easement for roadway and utilityses over, under
and across the northerly 40.00 feet of the northerly*of lot 4.
Together with s 40 foot perumemt easeeent over, under, mid
_acroaa the westerly 40.00 feet of sold northerly j of lat 4. `
No state deed tau - tax exe.Tt
CEO $tats aha to bola the aTantt... •r ,,, a ..,,r•.. _..
.•.. a, l../,. _ n. .,,. •„. r. lir ,. .. ,r„�.� •!,. .•..a.r, ,t. ..�,�.. n.., ��
t'. �•rrr.
An Qeennioap (Bbrtrof, td r...•y td.. p, r : „'t n., a %.•,. oh• ••r its
q' 7
G. B. Phillipa{ Partner
for Oakwood Industrial Park
�stwyt
i
323002
l/n&vidad m Corporstim
TO
etaif of lNinnMts t
,,, l,/ Wright
/ hrr.lu, ••.•r!i/J Nrnl Nrr u•ildin /Mrd
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2j ,ln,, .•/ Feb.
v,78 . nr 3 1•.rt. P. .v..
r••••••r•l.d in lhrrd• 72
rr/,l�lM1 A., 89.
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nudrn n. dnlq n•••r•r•L•I u, Ar.Hl, nn of �
lry !I.• p., rl/.
.1 it /Irlhn, n. „I Tui••. and Tru rn/r•r
rnlrrr.f ON. dull n/
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Tur •Iufr,n rnr. /ur for rru/ pru,wrl!/
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.raf Irr:
i •\ualr
C.G.Q •t -f i a.Gc:�
_ 1
1 � I .fAA►iu I
I
Council Agenda - 7/25/83
10. Consideration of Revising the City's License/Fee Schedule. (T.E.)
Not long ago we renewed liquor and beer licenses throughout the
City and at that time we discussed the possibility of increasing
the rates. I think it would be best, if we are going to increase
the rates, to increase them now and send notice to all license
holders so that they have nearly one year to prepare for the new
fees. Also, rather than adjusting only the beer and liquor
licenses, we reviewed all of the license fees and made adjust-
ments whereever it seemed appropriate. The City's ordinance
code, in its text, refers to fees which will be act from tire
to time by the Council. Hence, a simple resolution adopting
the fees will suffice rather than the need to go through
ordinance amendments for every item. The resolution is then
attached as a part of the ordinance code.
The one license that stands in question is that relating to
transient merchants. Currently, we have a $2.00 application
charge plus a $50.00 per day fee, which the City can waive
for non-profit organization. I presume that we have this
rather substantial fee for the purpose of discouraging
transient merchants. However, in a technical sense anyone
who sets up a stand becomes a transient merchant excluding
garage sales and auctions. Mel Wolter'e inquiry into a flea
market raised the entire question of transient merchant.
The Planning Commission is going to hold a public hearing
an a proposed zoning ordinance amendment which would allow
flea markets as a conditional use in some particular zone.
If that amendment is passed, any person who participates
will still be subject to the transient merchant regulations.
one alternative hero would be to charge the flea market
operator a sat fee per booth or vendor within his flea
market. That would be a fee that would be incorporated
into the zoning ordinance and only referred to in the
resolution and fee schedule. The problem that arises is
that if the flea market ordlnanco is not adopted, what
then do we charge for people who wish to just net up to
sell their crafts or other goods. In a technical sense,
our current transient merchant ordinance would require
that each vendor who participates in the various mall
shows should be paying the transient merchant foo. Because
this is kind of a sticky problem, and I think it needs
further study, especially since it depends upon the decision
of the Planning Commission (and ultimately the City Council)
concerning the status of the proposed ordlnanco amendment,
I am suggesting that the foo stand no is for the time being.
If thero io a radical change in the ordinance or a genuine
demand to accommodate a few people who wish to sot up on
vacant land, then we will proceed to adopt an appropriate
- 9 -
Council Agenda - 7/25/83
fee schedule.
REFERENCES: A copy of the proposed new fee schedule with
comparison to the existing fee schedule.
- 10 -
Council Agenda - 7/25/83
ll. Consideration of an Application for a 3.2 Beer On -Sale License
St. Henry's Catholic Church, Fall Festival. (R.W.)
As in the past years, St. Henry's Catholic Church is requesting
a one day 3.2 beer licenso for their annual church fall festival
scheduled for September 18, 1983.
POSSIBLE ACTION: Consideration of approving issuing the one
day license contingent upon proper insurance coverage being
provided.
Council Agenda - 7/25/83
12. Consideration of an Appointment of a Wastewater Treatment Plant
Operator. U.S.).
The applications for Wastewater Operator closed on July 12, 1983.
We received 25 applications as of that date. Eight (8) applicants
are from Monticello, eight (8) are from the nearby surrounding
areas and the remaining nine (9) are from the Twin Cities or out
state area.
We have selected five individuals for interviews that have some
previous wastewater experience and who now hold a Class "D"
or "C" wastewater operator's license. Two of these individuals
are or have been temporary City of Monticello employees. The
other three are from the out state area.
The interviews will be conducted on Friday and Monday. we
(Tom, Al and myself) will make a recommendation to the ODuncil
at Monday night's meeting.
- 12 -
Council Agenda - 7/25/83
13. Consideration of an Initiating a Permanent Clerical Position in
City Hall. (T. E.).
At the July 11th meeting, I requested that this item be postponed
largely because we were unable to assemble the required material
for your review. I was only half joking when I stated that we
simply didn't have the time and I rest my case. In the pre-
paration of the formal job description that we are proposing,
I requested that Rick address some of the specific provisions
that would be required of such a position since he could more
accurately address what precisely has to be done. It is in
fact true that Fick simply did not have the time to get to
working on a job description. I could have made the time to
write the entire job description, but it is my opinion that
it is absolutely critical that Rick be involved in the design
of such a position that will work so closely with him.
In assembling supporting data to show the need for this position,
we sometimes arrive at rather chaotic type of a presentation.
one example of our being short handed has to do with the re-
assessment of the 1978 project. This reassessment has not gone
one step further than the action taken by the Council at the
meeting where all of the details were agreed upon. Thiu typo
of an unexpected, special project, will require substantial
time commitment, and neither Rick nor 1 are able to simply
suspend our other duties in order to go to work on this
particular project. Granted, this project is only a temporary
work overload, but it is an example of how under staffed we
are when we are faced with a necessity of unexpected projects.
Mother temporary work overload is the revision of our entire
filing system. As a result of our Wastewater Treatment Plant
grant, we will be required to act up a totally independent
filing system that holds every document related to that
project. OSM will be transferring to us all of their related
eoeumento and that takes up, as I understand, three full filing
cabinets. Thoso records have to be filed to suit the Federal
Agencies and be made available for the next several years upon
their request. Our regular City filing is in drastic need of
revision and cleaning. In order for us to proporly rofilu and,
perhaps, destroy unnecessary records, we aro required to take
a complete inventory of all documents and submit to the Minnosota
Historical Society before receiving permission to destroy un-
necessary documents. whilo such a project is temporary, my best
estimate bound on other cities who have gone through this pro-
coduro, the operation could take up to a year.
Mother matter of concern is tho possibility that the Director
of Economic Devolopn-ont becomes a permanantly financed position.
Setting aside, for tho timo being, tho question of how his
position might be financod, if it is financed, some clorical
help will bo required. Currently, Marlene taken caro of all
- 13 -
Council Agenda - 7/25/83
correspondence for Rick, Gary, John Simola and myself. She is
also responsible for agenda preparation for the Council, the
Planning Commission, the HRA and the Business and Industry
Committee. She also spends anywhere from 2 to 4 hours daily
assisting with deputy registrar duties. She is responsible for
all budget preparation, as well, that is to say, the typing and
preparation of the work sheets, compiling all data for those
work sheets, typing and compilation of the preliminary budget
document, editing and revising, and preparation of the final
budget document.
With respect to the new position, 1 have requested that the
other office employees estimate the amount of hours in any
given work day the new position might devote to particular
tasks. Diane has estimated, and Marlene and Lynnea have
confirmed, that the average daily work load for filing reports
for the deputy registrar department would be approximately 3
hours. I must emphasize that this is an average. Some days
may be slightly greater, some slower days would be less. On
some very slow customer days, Diane would be able to keep up
with the reports herself. In talking with Lynnea, she felt
that this person would put in approximately an hour a day
being involved with City payroll and utility collection and
billings. Again, I emphasize that this is determined to be
an average figure. The person would not necessarily put in
an hour a day every day. Likewise, in speaking with Rick and
Marlene, we figure that it would be an average of about 1 hour
a day working on Rick's correspondence and financial report,
that is, just the typing and mailing of correspondence and
reports. Lastly, in discussing with Rick the actual bookkeeping
duties, he thinks that it would be easy to average out to at
least 1 hours a day doing just that type of work. As he in-
dicated he has more than enough to keep him busy right now
and lie spends most of his time doing the actual bookkeeping,
again, coding vouchers for the budget, preparing checks, and
the other duties have their peak periods and low periods so
we are using an average figura.
To further illustrate the need, Rick'o vacation record
indicates that he has accumulated nearly 8 weeks of vacation.
He has not taken his vacation in many instances simply because
the work would continuo to pile up an his desk.. As he stated
he could take two or three weeks off at a time, rather than
one week, but that would only mean the pilo would be higher
on his dook when he got back. I should also note that our
auditors have reeomunendod that a separate party be able to
assume the bookkooping colon in Rick's absence. I do not
mean to play down the importance of this recommendation. I
simply don' t think it needs a lengthy diecusaionr I do, how -
over, think it is very important.
- 14 -
Council Agenda - 7/25/83
Another point, perhaps of limited importance, is that Rick has
virtually no time to read professional journals, attend work
sessions, or participate in professional organizations. This
simply means that he is not really improving at his job. He
is simply going on in continuing to do the tasks the way he
always done them. He has no opportunity to improve his skills
and thus, improve the City's financial record keeping.
With respect to Diane's service as deputy registrar, we have
discovered that in 1983 she is consistently two to four reports
behind. In some cases, when the reports gettoo far behind, she
will take work home. In 1982, Diane worked overtime at home
a total of 45 hours filing, just reports. So far in 1983, she
already has acquired 43 hours of overtime. I should note that
these are actual overtime hours when she takes reports home and does
not reflect time she spends here in the City Hall when she
will stay a half hour to 45 minutes late (after the door is
locked) to complete the days work.
I think one other labor aspect should be considered briefly,
that being the eminent appointment of Gary as our City Assessor.
This will certainly require some correspondence and additional
rlericAl AR9i4tance on his behalf. Basically, all of the duties
that are building up will have to be reassigned, and at this
point, we simply do not have an adequate amount of personnel to
assign all those duties.
I think the above data adequately substantiates our request to
create a new clerical position for City Hall. I )love fully taken
into consideration that none of the projects listed are of a
somewhat temporary nature, but I conclude two things from that.
One, special, unexpected projects may occur on a regular basis.
Two, if when the unexpected projects diminish or canon all
together and we can no longer supply 40 hours worth of labor
for this person, hours would have to be trimmed back to the
neconeary level. Ilia notation of trimming hours In not
difficult and in considered or, a regular basin when work load
seems to be down. Thin clerical position would not be union
and thus would not be guaranteed a 40 hour work weak by labor
contract. 7110 successful applicant would simply have to be
mpdo aware of that fact.
Finally, those are the basic salary/financial considerations.
Tho present salary range for a starting clerical position is
$5.60 per hour -16.06 par hour. If we should hiro, someone
relatively low in experiunco, ouch that the person would
begin at the bottom end of the salary scale, the gross City
expense would be $14,79G.00. Thin includes employer's share
of PERA, social security and employee insurance. if we hire
a person who Is substantially skilled and we place that person
at the top of the pay Ocala, the gross outlay from the City
would be $15,073.
- 15 -
Council Agenda - 7/25/83
Because we already have adequate space, furniture and equipment,
I do not foresee any capital cost related to establishing this
position.
REFERENCE: Copy of the proposed job description.
— 16 -
BOOKKEEPER/SECRETARY
Accountable to: Finance Director/Asst. Admin.
Primary Responsibility
This position is respunnibte for the keeping of the
finaucial records fur the city, will include recor.ciliny
liquor and general bank statements; payroll assistance;
additional duties as may, from time to time, be assigned
by the Finance Director, City lYbninistrator or City Council.
Additional duties will include typing, filing, reception,
telephone for the Finance Director/Assistant Administrator.
This person will also be responsible for acquiring a working
knowledge of the duties of the neputy Pegiutrar with the
exiress intent to assist in those duties during peak periods
and during the absence of other staff memlx rs. Some
additional responsibility will lu• io dw arca of utility
billing and paymrnl CUII„L•t—Ju .
Ycy_Rc.^_uttn Areas
Accountinq Technician
- Timely preparation of ri•p�ut 1.:: .Ind a:::;ignmcnt.:;
- Knowledge of general accuunLiny princip.leu
- Verification and coding of vuucheru for all chocks
- Calculate and allor_ate cmpluycu payroll to appropriatu
departments
- Prepare bank depcs i t:;
- Timely completion of total financial data packet for
sulrlittal to Computer Service Itureau
Annual Budget
- Early preparation of budgct. worluiliectn
- Accurate presentation of current budget data
- monitoring department heads on budget schadule
- Timely completion of budget document
Nntual Audit
- Preparation of year end financial reporto and work
Papers necessary for audit
Financinl Correopundcncu/Clerical
- Beat, accurate letters and other correspondence
- Timely cemp+lotion of corronpondonc.:
:•tun u:i X11 Iii i til iu,:
- C,nre lcuuu m:uvuul wlt.h la�l�l 1,•
ACLU I•a Lr CCollu tat inn 1d h, I I,n•I
A:1ful at rly ma;; my ,.. h ll.ln .., •I nn.
i'1iol't., aCCU I"Lq In :.I 11, 1 ..I .1." X91111 t 1:11.:1,u:t 1,)I1L
nc1+11t7 logiotrar
- Courtcouu tnannor with I-ul,lic
- Arcurato cash t.uanoactluu„
- Pr,mpt, nccurato cemtpl• Lieu of roguirv:d tupurto
- Obnetvaut of need 1'01 cuuLomur annictnuco
GENERAL FUND - JULY - 1983
A?COUNT
CHECK NO.
MN. State Treasurer - License fee - certified assessor - Gary
$ 3.00
17471
MN. State Treasurer - Dep. Reg. fees
138.00
17472
Internal Revenue Service - Levy proceeds
351.89
17473
Gwen Bateman - Animal control - June
222.86
17474
Robert Boedigheimer - Summer employment salary
173.60
17475
Amanda Chowen - "
134.69
17476
Charles Walters -
173.60
17477
Craig Kendall -
53.60
17478
Chris Sarvela -
53.60
17479
Mr. Arlo Bosse - Plan review for NSP building
433.22
17480
Jerry Hermes - Janitorial services at Library
125.00
17481
Richard Knutson, Inc. - Payment A3 - 82-2 Project
119,712.97
17482
State Capitol Credit Union - Payroll ded.
144.04
17483
James Preusse - Cleaning City Hall
250.00
17484
Corruw Sanitation - Contract payment
3,761.50
17485
MN. State Treasurer - Dep. Reg. fees
230.00
17486
Mr. Arve Crimsmo - Mayor salary
175.00
17487
Mr. Ilan Blonigen - Council salary
125.00
17488
Mrs. Fran Fair - Council salary
125.00
17489
Mr. Ken Maus - Ceunci I salary
125.00
17490
Mr. Jack Maxwell - Council salary
125.00
17491
YMCA of MPI8. - Contract payment
284.16
17492
Monticello Scliool District - 1983 Summer recreation program
10,000.00
17493
Cotmnisaioner of Revenue - CWT - June
2,338.00
17494
Mrs. Lucy Andrews - Inf. Center salary
117.00
17495
Mrs. Fal Schaffer - Inf. Center salary
117.00
17496
Wright County State Bank - FWT - June
3,949.10
17497
M14. State Treasurer - FICA - June
4,804.80
17498
Gwen Bateman - Partial payment for July animal control
100.00
17499
VOID
--
17500
Paul A. Laurence Ca. - Payment #2R - Wwry
54,821.61
1.7501
MN. State Treasurer - Ucp. Reg. teen
151.00
17501.
t:olwrt Boedighoimer - Summer empluyment salary
134.80
17503
Amanda Chowen
100.24
17504
Craig Kendall
26.80
17505
Chris Sarvela
26.80
17506
Charles Walters
84.00
17507
MN. State Treasurer - Dep. Reg. fees
64.00
1750f
Gwen Bateman - Animal Imp. expense
150.00
17509
state Capitol Credit Union - Payroll ded.
144.04
I 17510
Jerry Hermes - Janitorial at Library
125.00
17511
U. S. Postmaster - Postage
370.00
17512
N11. Stato Treasurer - PERA W/H
1,619.84
17513
Mrs. Lucy Andrews - Inf. Center salary
103.50
17514
Mrs. Lucille Schaffer - Inf. Center salary
123.75
17515
Neenah Foundry - Manhole coatings for Wrightco sower lino
138.58
17516
Bridgewater To lophono - Phone system at W. W. T. Plant
2,999.(,8
17517
Adams Pent Control - Control at Library
36.75
17518
local 049 - Union duos
95.00
17519
Mplo. SLOT k Tribunes - WWTP hall) wanted ad
1 48.40
17520
Dr. Joel Erickson - !Larch - Juno Vet. fees
180.00
17521
Woody Ilonland - Reimb. for Piro Dept. rup)alru
6.31
17572
Ruainean A Industrial Dev. CtmuaitLee - Mise. expen.wu
7,300.00
17523
lot Bank Mpla. - Public activity charge
4.00
17524
National Life Ina. Co. - Tam L'idem pension plan payanont
85.00
17525
Mrn. Marjorlo Gootxke - OAA Board meeting ruimh.
135.00
17526
Mi. Tots 6alktnuokl - OM Board mcotinga O
�y
125.00
I
175.E
GENERAL FUND
AMOIIN'f
CIIGCK NO.
Mr. LeRoy Engstrom - OAA Board meetings
138.00
17528
Mr. Franklin Dern - OAA Board meetings
75.00
1752
Mr. Arve Grimsmo - OAA Board meetings
75.00
17530
Banker's Life Ins. - Group Ins.
2,498.81
17531
Paul A. Laurence - Hook up cmcrg. pump at lift aCation
120.00
17532
Mr. Arve Grimsmo - Mileage to League Can(.
23.75
17533
Tom Eidem - Mise. mileage
51.17
17534
Northwestern Bell - fire phone
36.43
17535
Moon Motors - Repair parts for Fire 6 Trac Depts.
71.10
1753E
Hanover Sand s Gravel - Sand for park:
165.00
17537
Phillips Petroleum - Gas, oil, repairs - Sewer/Water Depts.
87.12
17538
7ep Mfg. Co. - Supplies for. Sewer Dept.
42.60
17539
Independent Lumber - Mise. supplies for all depts.
138.33
17540
Harry's Auto Supply - WWTP small tools- $85.85 - other depts.
190.49
17541
Monticello Office Products - Misc. supplies for all depts.
91.86
17542
Wright service Oil - 55 gal. oil for Sewer Dept.
201.70
17543
Water Products - 2 meters - Reinert Apts.
704.38
17544
Maus Foods - Supplies for all Depts.
129.60
17545
Share Corporation - Weed control for parks
368.65
17546
Our Own Hardware - Supplies - mower, rain suits, tape, etc.
965.56
17547
Coast to Coast - St., Shop, Sewer, Library
164.81
17548
Ieef Bros. - Uniform rental
124.00
17549
North Central Public Service - (Sewer plant - 1,168.36)
1,176.73
17550
Gordon Link - Diesel fuel
490.50
17551
Monticello Ready Mix - Park supplies
513.38
17552
Monticello Times - Publishing, etc. - June and July
1.011.51
17553
National Bushing - Rev. lites for plant - $715.28
728.82
17554
Big lake Lumber - Redwood for parks
198.91
17555
Viking Pipe Service - Sewer rodding
1,297.33
17556
O. K. Hardware - Misc. supplies
18.52
17557
Dytron Alloys Corp. - welding rods
88.23
17558
Marco Business Products - Office supplies
52.88
17559
Rriggn a Morgan - Bond isrnua nttorney fees - 83 C7. 0.
11600.00
17560
BSM - May expense
348.30
17561
}taus Tire Service - Tires and repairs
54.00
17562
St. Cloud Fire liquipw.nt - Check fire ext. at. shop
13.50
17563
5cclyc Plastics - Sewer Dept. supplies
115.57
175G4
D. S. Power - ULLlities
7,484.65
17565
Bridgewater Telephone - Utilities
794.45
17566
MacQueen Equipment - St. Supplies
18.13
17567
Wright County Auditor - i police fines - June
878.20
17566
Fair's Gordon Center - Replacement trees
331.91
17569
Fidelity Bank 6 Trust - interest on 71 Water 6 71 G. 0. bonds
2,444.22
17570
Int Batik St. Paul - Interest on 76 G.O. bund
23,933.05
17571
Wright County Sheriff - Police contract payment - June
9,041.98
17572
Nor Went Bank Mpla. - 76, 77, 79, 80, 81 bund payments 6 interest
162,569.20
17573
Dr,11111 I?nginoerinq - Touting at Mondor Cnk project
684.80
17574
Feed Rito Controlu - Polablo samplo
7.50
17575
Central McGowan - Sewer Dept. - 359.88, St. - 3.12
363.00
17576
lot Bank Mpls. - 75 Mtco. 6 75 G. 0. Bond interest paymontu
18,344.80
17577
Shorburno County Equipment - St. supplies
53.60
17578
Jerry Wain - Fire school in St. Cloud roimb.
36.00
17579
Equitable Life Assurance - Ina. W/H
40.00
1
17580
SMA Elevator - Prints - Public Works Dept.
7.50
17581
Olson laectric - Disposal plant repairs
269.65
17582
MN. Valley Testing - Recorder rental for sower dept.
60.00
17583
l �1 �
CENERAI. FUND
AMOUNT
CIIIiCK NO.
_ ludic, Communications - Repairs to pagers - 391.95, truck radios:
544.35
17584
( and switching radios in trucks I
Davis Electronics - Pager repairs 1
51.50
17585
Foster Franzen Agency - '83 Chev, van s antique policies
16B.50
17586
Mr. Al Nelson - Sub. 1
11.70
17587
Monticello Printing - Bldg. Insp. 6 Office supplies I
91.60
17568
Jim Ilatch Sales Co. - Gutter brown s work gloves
320.33
17589
Mobil Oil Corp. - Street and Fire gas
110.59
17590
The Plumbery - Park supplies
110.82
17591
Buffalo Bituminous - Class 5 s Cedar St. crossing const.
6,191.80
17592
Burlington Northern Railroad - Expense for flagging at crossing
in Meadow Oak project
1,233.70
17593
Central Eyewcar - 13 pair safety glasses
157.00
17594
Walters Cabinet Shop - Hinges for Ntce. Bldg.
7.00
17595
Lindberg Paint - Sewer supplies
35.97
17596
Rick wolfsteller - Misc. mileage
31.00
17597 i
Payroll for June
TOTAL DISBURSEMENTS FOR JULY - 1903
25,964.83
$498,111.40
LI;UOP. FUND
/i1!GL'N?
CHECK
LIQUOR DISBURSEMEFITS FON JULY - 1983
i
State Capitol Credit Union - Payroll d,;d.
I :'.0.00
I 10800
Commissioner of Revenue - SWT - .lun,;
320.00
10801
MPI. State Treasurer - FICA - June
643.76
I 10802
Twin City Wine Co. - Liquor
1,277.71
I 10803
Griggs, Cooper s Co. - Liquor
2,929.26
, 10804
Wright County State Bank - PWT - June
612.90
I 10805
State Capitol Credit Union - Payroll dud.
20.00
10806
.-N. State Treasurer - PERA W/11
I 213.67
I 10807
1st Bank Mpls. - Interest on 76 I.iyuor Store Rev. Bond
2,815.00
10808
Coast to Coast - Misc. expense
2.77
10809
Banker's Life Ins. - Group Ins.
276.58
10810
Granite City Cash Register - Paper
53.97
{ 10811
7 Up Bottling - Misc. mdse.
413.80
10812
Viking Coca Cola - Misc. mdse.
829.50
10813
Invegren Ice Co. - Ice
319.95
10814
Jude Candy s Tobacco - Misc. mdse.
339.47
10815
Old Dutch Foods - Misc. mdse.
203.27
10816
Thorpe Dist. Co. - Beer
6,522.15
10817
Midland Beverage - Wine
56.25
10818
GrosnIcin Beverage - Boer
17,744.20
10819
wly Dist. Co. - Beer
104.90
10820
Dick Boverage - Ileo
4,491.99
10821
O.,L•Lheimer Dict. Co. - Beer
15,697.96
10822
F:cl Phillips s Sona - Ltguot
13,315.64
101
Griggs, Cooper s Co. - Liquor
2,902.20
104
Twin City Wine - Liquor
1,272.06
10825
Ftonticcllo Times - Adv. - 2 mo.
267.40
10826
Northern States Power - Utilitieu
628.87
10827
Yulak Sanitation - Contract payment
82.50
10828
SCPIi11RtI Trucking - F'reighL
52.87
1OB29
Liefort Trucking - Freight
338.17
10830
Bridgewater Telephone - Telephone
;4.39
10831
Payroll for June
i
TOTAL DISBURSEMENTS FUR JULY - 190.1
I