City Council Agenda Packet 07-24-1989AGENDA FOR THE MEETING OF THE CITY COUNCIL
Monday, July 24, 1989 - 7:00 p.m.
Mayor: Ren Maus
Council Members: Fran Fair, Warren Smith, Shirley Anderson, Dan Blonigen
1. Call to order.
2. Approval of minutes of the regular meeting held July 10, 1989.
3. Citizens comments/petitions, requests, and complaints.
4. Consideration of granting an increase in the individual pension for the
Volunteer Firefighter Relief Association members.
5. Consideration of final payment for Project 88-07 (Markling).
6. Consideration of strategy for development of marketing/promotional
materials.
7. Consideration of establishing policy on sale of Oakwood Industrial Park
Second Addition lots.
8. Consideration of authorization to pursue land negotiations with Bridge
Water Telephone Company.
9. Consideration of bills for the month of July.
10. Adjourn.
EI
MINUTES
REGULAR MEETING - MONTICELLO CITY COUNCIL
Monday, July 10, 1989 - 7:00 p.m.
Members Present: Ren Maus, Warren Smith, Shirley Anderson, Fran Fair,
Dan Blonigen
Members Absent: None
Approval of minutes.
Shirley Anderson requested that the final sentence of item $3 be
deleted. The sentence deleted read as follows: "It was the consensus of
Council that the 'No U-turn' sign would not be moved any farther down
Broadway, as doing so would not solve the problem." Anderson did not
necessarily agree with this consensus. Therefore, she requested the
sentence removed.
There being no further discussions, motion was made by Warren Smith,
seconded by Fran Fair, to approve the Council minutes of June 26, 1989,
as amended. Voting in favor: Warren Smith, Fran Fair, Shirley Anderson,
Warren Smith. Dan Blonigen abstained, as he was not present at the
June 26, 1989, meeting.
3. Citizens comments/petitions, requests, and complaints.
None forthcoming.
4. Consideration of resolutions awarding the sale of $260,000 G.O. taxable
tax increment bonds - 1989A, and $245,000 G.O. improvement bonds - 19898.
Jerry Shannon of Springsted, Inc., was present to outline the bid
tabulations for the respective bond issues as part of his review. He
noted that the City financial position is good, the A rating is in place,
and that the bids that were submitted reflect the recent reduction in
interest rates and are better than anticipated. Shannon recommended that
the City adopt a resolution awarding General Obligation Improvement Bond
Series 1989B to First Bank National Association at a net interest of
6.611 percent, and that the City award the $260,000 General Obligation
Taxable Tax Increment Bond Series 1989A to Miller Securities, Inc., at a
net interest rate of 8.87 percent.
After discussion, motion was made by Fran Fair, seconded by Warren Smith,
to adopt a resolution awarding Miller Securities, Inc., the $260,000 City
of Monticello General Obligation Taxable Tax Increment Bond Series
1989A. Motion carried unanimously. SEE RESOLUTION 89-21.
Motion was made by Fran Fair, seconded by Warren Smith, to adopt a
resolution awarding the $245,000 City of Monticello General Obligation
Improvement Bond Series 19898 to First Bank National Association. Motion
carried unanimously. SEE RESOLUTION 89-22.
Council Minutes - 7/10/89
5. Conditional use permit request to allow expansion of storage and sales
area associated with a landscape center in a B-4 zone. Applicant, Fair's
Garden Center.
Assistant Administrator O'Neill reviewed the various variance requests
associated with the expansion of Fair's Garden Center. O'Neill informed
Council that expansion of sales and storage areas as proposed by Fair
requires a conditional use permit. Prior to obtaining the conditional
use permit, a series of variances must be obtained by the applicant.
O'Neill went on to note that the Planning Commission has reviewed the
site plan, provided recommendations regarding the variances, and listed a
series of conditions that the applicant must meet in conjunction with his
conditional use permit. According to the variance process, Council at
this time may individually or as a group appeal the recommendations made
by the Planning Commission. If an appeal is forthcoming regarding an
individual variance, then the variance must be addressed at a subsequent
meeting of the City Council after proper public notice has been
provided. At this point in the meeting, O'Neill reviewed the variance
requests and noted the Planning Commission's rationale for the variance
requests that were approved. After O'Neill completed the review of the
variance requests and reconvendations made by the Planning Commission, he
asked if there were any variance recommendations made by the Planning
Commission that Council felt should be appealed.
Councilmember Blonigen appealed the decision of the Planning Commission
pertaining to the variance to the parking requirement. Blonigen
challenged the decision of the Planning Commission to approve an 8 -stall
variance to the parking requirement of 25 stalls. He also questioned the
method of calculating the number of stalls necessary. It was Blonigen's
view that the greenhouse area did not constitute a storage area but
rather a greenhouse should be considered a sales area. If one takes this
into account, the applicant would need 33 parking stalls rather than 25.
It was Blonigen's view that sufficient parking should be created for at
least 25 vehicles.
Blonigen also appealed the variance to the curb requirement as
recommended by the Planning Commission. It was Blonigen'a view that a
curb outlining the parking expansion area should be continued from the
Cedar Street entrance to Fair's Garden Center to the Broadway exit,
thereby framing the entire potential parking and drive area.
There were no objections from Council regarding curb variance number two
which allows the applicant to install a drive �`ea wilt iin t s s��J}4J S «•/
storage area without development of a curb. tet-eg�he �iiew
of the Planning Commission that placement of curb in this area is not
appropriate given the operation and function of the sales and storage
area.
There were no objections from Council regarding the Planning Commission's
approval of a variance which would allow development of a bituminous
drive without a curb. It was the finding of the Council and the Planning
Commission that the existing drainage pattern would be adversely impacted
by the presence of a curb in this area.
9
Council Minutes - 7/10/89
There were no objections from Council regarding Planning Commission
approval of variance C-1 which would allow development of a drivethrough
the nursery and sales area without hard surface. It was the finding of
the Planning Commission and the Council that the existing surface
consists of a material that is relatively dust free and is exposed to
consistent watering which reduces dust created by limited traffic and
wind. In addition, proper drainage has not been a problem in this area.
Granting a variance to the hard surface requirement through the nursery
and sales area is consistent with the intent of the Zoning Ordinance
according to Council.
Dan Blonigen appealed the Planning Commission recommendation that the
hard surface requirement be deferred at the Broadway access for three
years. It was the view of Blonigen that the bituminous or hard surface
material be placed in this area so as to reduce the problems associated
with dragging mud, rocks, etc., onto Broadway as vehicles exit the Garden
Center. It was Blonigen's view that this requirement not be deferred
pending further development of the Garden Center and that it was proper
to require this improvement at this time.
Dan Blonigen objected to the Planning Commission requirement that the
applicant pave the area formerly used as a private drive. It was
Blonigen's viewpoint that development of bituminous in this area is not
necessary, except in the area extending about 20-30 feet from the
existing private drive entrance onto Broadway.
There were no objections from Council regarding the variance to the
screening requirement in the area along the existing westerly wall of the
adjoining residential structure. Council agreed with the Planning
Commission's finding that a variance is appropriate in this case, as the
actual wall of the adjoining structure acts as a screen.
Dan Blonigen objected to the variance to the screening requirement
associated with screening of the existing rock storage bins. It was his
view that the bins, if left in this location, should be screened from
view from the road. Blonigen went on to note that the bins should not be
located in this particular area and that the development is better served
by placing the bins perpendicular to Broadway or in the rear of the
property rather than along Broadway.
At this point in the meeting, O'Neill outlined the conditions associated
with the conditional use request and reiterated that since there were
appeals to the Planning Commission's decisions regarding the variances, a
conditional use permit could not be granted at this time. However, he
did review the conditions that the Planning Commission and Revin Pair had
agreed upon. O'Neill also went on to note that Mr. Pair had submitted a
check in the amount of $10,000 to the City for placement in an escrow
account which could be used in the event that the improvements associated
with the conditional use permit were not completed on time. Following
are the conditions associated with the conditional use permit:
1. The groan floor area may be increase to approximately 300% of the
principal use.
Council Minutes - 7/10/89
2. An escrow account must be established by the City staff and
presented to the City Council and be submitted by the applicant
prior to the city Council consideration and be in an amount equal
to 1.5 times the dollar amount necessary to complete all of the
landscaping, screening, curbing, and hard surfacing as outlined
on the site plan and agreed to by the applicant.
3. The westerly driveway entrance be closed off with the existing
sales area material (patio blocks) to be located in this area to
block off this driveway entrance. (This area identified in
orange area on site plan.)
4. Applicant has 30 days to stripe the new four stall parking area
that fronts Broadway and must install required curb by
September 1, 1989. (This area identified in green area on site
plan.)
5. Applicant shall remove existing blacktop and create a green area
between the new four stall parking area and the Broadway
right -of- way by September 1, 1989.
6. Applicant shall apply a 3 -inch to 5 -inch surface of red limestone
to that area identified on the site plan as solid yellow. This
area to be maintained in a neat and driveable condition. This
material to be applied within 30 days of July 5, 1989.
7. That area identified with horizontal yellow lines on the site
plan shall receive a minimum of a 2 -inch bituminous hard surface
application within 3 years from the 10th of July, 1989.
8. Applicant to install a minimum of a 2 -inch bituminous hard
surface on the drive area identified on the site plan by the
yellow border. This improvement shall occur no later than
September 1, 1989.
9. Applicant shall install screening material along the perimeter of
the site in the form of a combination of 6' fence and/or planting
materials, with the exception of the variance area noted in red
on the site plan. This shall be accomplished by September 1,
1989.
10. Applicant shall install a split rail fence along the southern
boundary of the sales and storage area between the existing
owners house and to the southwest corner of the sales area also
identified in pink on the site plan. The fence material is to be
of a cedar hand split rail fencing material and shall be
installed by September 1, 1989.
11. Applicant shall install screening material along east and west
17 lineal foot ends of the existing rock bins noted in pink on
the site plan. Screening material shall consist of the same
materials as used on the entire southerly portion of the existing
Council Minutes - 7/10/89
rock bins or consist of cedar lattice material ora cedar opaque
fence material. Height of the screening material shall match the
neighs of the bins. This improvement to LK Cumijittei by
September 1, 1989.
Consideration of the conditional use permit was tabled until the variance
related issues have been resolved at a subsequent meeting of the City
Council.
Review of status report by engineer on water reservoir improvement
project.
Wolfsteller informed Council that since the beginning of the water
reservoir project, the Public Works Director and Water Superintendent had
been reviewing the plans and specifications. On November 17, 1989, John
Simola prepared a list of concerns and questions relating to the plans
and specifications, and he submitted them to OSM for comments.
Wolfsteller indicated to Council that OSM has never indicated which items
Simola prepared have been addressed in the final plans and
specifications. Wolfsteller was also concerned that OSM has not been
responding to the City's correspondence and that it appears that the
project may not be following the construction time table. Wolfsteller
noted his frustration over lack of communication and inadequate response
to City correspondence regarding this project.
Dan Kling of OSM was present to respond to the concerns submitted by
Wolfsteller. Regarding the comments made by the Public Works Director
pertaining to the plans and specifications, it was noted by Kling that
those comments were taken seriously and were added to the project
specifications. He did apologize for not communicating to the City that
the specifications were modified to reflect the input of the Public Works
Director.
Dan Kling also apologized for the poor communication with the City
regarding this project and noted that changes will be made to correct
this situation.
Kling noted that the welding crew will be working seven days per week in
order to bring the project closer to schedule and that it is likely that
the project will be completed on time. Dan Blonigen was concerned that
the strenuous seven days per week schedule for welders might cause high
fatigue and result in problems with welded joints. Dan Kling noted that
the welding is done with automatic welders and that all welds will be
inspected and certified only if they pass inspection.
Mayor Maus reminded Kling that any problems associated with the
inspection of the work done by the contractor should be reported promptly
to the City and that the City will not be paying any additional
inspection fees unless such fees could be completely justified.
0
Council Minutes - 7/10/89
Motion was made by Warren Smith, seconded by Fran Fair, to engage the
services of OSM in assisting the City with upgrading wells tl and #2 and
reservoir booster pumps it -d to perform at higher pressures. Hvtivu
carried unanimously.
8. Consideration of ordinance amendment regulating detached structure
(storage shed) construction standards.
Assistant Administrator O'Neill reviewed the proposed ordinance developed
in response to concerns brought forward by the Meadow Oaks neighborhood.
O'Neill went on to note that public complaints regarding storage sheds or
detached structures is not an every day problem. Although there are
problems, it appears that they can be handled on a complaint basis and
that staff is not proposing a permit process. He went on to note that if
storage shed related complaints do increase in the future, the City has
the option of establishing a permit process which could head off
complaints. At this time, however, it is probably more efficient for the
City to respond to this issue as complaints are presented by the public.
At this point in the meeting, O'Neill reviewed the language of the
ordinance and received comments from Council. It was recommended by Fran
Fair that the proposed ordinance be amended so as to apply to detached
structures existing before the adoption of this ordinance.
A general discussion ensued regarding the requirement that a rodent
barrier be installed with every accessory structure as proposed in the
ordinance. After discussion, it was the consensus of Council to require
that a rodent barrier be installed with every detached structure so as to
inhibit rodents from establishing quarters underneath storage sheds.
Motion was made by Fran Fair, seconded by Dan Blonigen, to approve the
ordinance as amended. Motion carried unanimously. SEE ORDINANCE
AMENDMENT NO. 178.
Consideration of ordinance amendment designed to expedite removal of
weeds and tall grasses.
Assistant Administrator O'Neill reviewed the proposed ordinance which was
developed in response to complaints submitted by the Meadow Oaks
neighborhood. O'Neill informed Council that staff recommended adoption
of the proposed ordinance amendment, as the new process will improve the
appearance of neighborhoods by reducing the duration of the weed and tall
grass violations. In addition, staff time necessary for repeat notices
will be eliminated, thus improving the efficiency of the weeds and tall
grasses removal process.
Ken Maus suggested that the original notice provided to violators should
be done by certified letters or if necessary, the notice should be hand
delivered by a Sheriff's Deputy. Maus suggested that the ordinance be
amended accordingly. Fran Fair was concerned about liabilities
Council Minutes - 1/10/89
\_ associated with removal of weeds and tall grasses. O'Neill responded by
saying that the notice to the property owner will be thorough and will
inform the violatur of an appeals process which the property owner car,
employ in the event there is a reason not to remve the weeds and
grasses.
After discussion, motion was made by Fran Fair, seconded by Ren Maus, to
approve the ordinance amendment with the inclusim of language that
requires the notice be in the form of a certified letter. voting in
favor: Fran Fair, Ren Maus, Shirley Anderson, Warren Smith. Opposed:
Dan Blon�igenn.. �SEE
ORDINANCE AMENDMENT NO. 179.
Jeft O,Neill
Assistant Administrator
9
Council Minutes - 7/10/89
7. Consideration of hiring an engineer for recommendations on upgrading
wells #1, #2, and reservoir booster pumps #1-4 to perform at higher
pressures.
Public Works Director, John Simola, through his memo to City Council,
recommended that the City hire Rieke, Carroll, Muller, b Associates to
assist the City in upgrading wells #1 and #2 and reservoir booster pumps
#1-4 to perform at higher pressures. It was Simola's view that hiring an
additional engineer would provide the City with a needed second opinion
on projects and not necessarily hire to replace our present engineer but
to utilize their services on some smaller projects. He also noted that
hiring an additional engineer may be appropriate since OSM has had some
problems in the past with accurate determination of pump discharge
pressures and pumping rates in both water and sewer systems. Simola
noted that he would like to give RCM an opportunity to work on this
smaller project. Simola was not present to review his memo, as he was on
vacation.
Dan Kling of OSM did not see any problems with the City having two
engineers, and he agreed that there have been problems with matching well
pumps and motors. He also noted that RCM is an excellent, able
competitor, and that the City is certainly justified in looking at
another engineer, as OSM has provided insufficient communication and has
basically provided a service level that would warrant the City looking at
an additional engineering firm. He also noted, however, that by hiring
an engineer, the liabilities to the City increase substantially, as there
is less accountability for problems when there is more than one engineer
involved in development and maintenance of the City system of utilities.
Mayor Maus noted that from a raw cost standpoint, the City has made
significant investments in development of information pertaining to our
system. Hiring an additional engineer would require that much of that
information be generated again, which would thus increase the cost to the
City. Roger Mack noted that he has not been able to talk to John Simola
about this issue. However, it was his view that the calculations
regarding the upgrading of wells #1 and #2 and reservoir booster
puffs 11-4 are fairly straight forward and that it is not likely that two
engineers will come up with two separate recommendations.
Ken Maus suggested that the City should continue to look at hiring an
additional engineers but in this particular situation, the work should go
to OSM, as OSM already has so much time into the project. Fran Fair
expressed her view that she is reluctant to not follow Simola's
recommendation and that the city should have a basis for comparing
engineering firms. Warren Smith concurred that the City should have
another engineer on hand. However, he was inclined to look at another
engineer for a different project. Shirley Anderson concurred that OSM
should remain as the lead engineer on this project which would provide
OSM the opportunity to improve its present image.
Council Agenda - 7/24/89
4. Consideration of granting an increase in the individual pension for the
Volunteer Firefighter Relief Association members. (R.W.)
A. REFERENCE AND BACKGROUND:
!lcmbers of the volunteer tire department will be attending the meeting to
request that the City Council increase the retirement benefit from
$19,500 to $21,500. This benefit is payable in a lump sum after 20 years
of service based on the requested increase of $100 per year of service to
$1,075. The Relief Association plans are referred to on an amount per
year of service, such as the $1,075 which is payable at this amount only
after 20 years of service, etc. I point this out as to avoid confusion,
as during the discussion, the terms may be used interchangeably.
The Relief Association was granted an increase in retirement benefits
last year to $19,500/$975 per year. In 1987, the Association received
$17,500/$875 per year, and in 1986 received an increase to $16,000/$800
per year. Prior to that, the last increase occurred in 1979 when the
retirement benefit was $10,000/$500 per year. The Association did
request an increase in 1982 to $14,000/$700 per year, but the Council at
that time indicated it would not consider any increase in benefits unless
the fund was self sufficient, i.e., assets were greater than their
accrued liability, and any increase would not result in a contribution
from the City property taxpayers. State Statutes allow the Association
to increase their benefits on their own only if their assets are greater
than their liabilities; otherwise, they must come before the City Council
for approval of any increase in benefits.
Prior to August of each year, the Relief Association is required to fill
out a financial schedule that computes the benefits that have accrued for
each fire department member based on years of active service at the
dollar amount established for each year of service. The financial
schedule includes the Relief Association's assets and liabilities, and
through calculations arrives at a deficit or surplus for supporting the
retirement benefits. In going through the department's financial
schedules, I calculated the benefits based on three different figures,
$1,000 per year of service, $1,050, and $1,075 per year. If the benefits
were increased from $975 per year to anything over $1,075 per year, the
Association would have a deficit; and according to the formula required,
the City would have to contribute tax support. In calculating the
benefits using a $100 increase over last year to $1,075, the calculations
do show the fund having a deficit of $74,116; but the fund would have
sufficient income to support this increase in benefits without requiring
City taxpayers support. The Association's income annuaTTy-consiets of
interest earnings on their investments (assets) along with State aid.
These two income sources are sufficient to not require City taxpayers'
support at.. the $1,075 per year level.
As I have indicated, the last couple of years when the Relief Association
requested their increases and benefits, the financial statements prepared
do not require City support, but the majority of the Relief Association's
income to based on State aid, which the City does not have control over.
Council Agenda - 7/24/89
If for some reason the State decides to cut State aid to local fire
departments, the City, after increasing any benefits, would be
responsible for supporting the pensions thereafter. Although I am not
aware of any anticipated cuts in the State aid program, there are
certainly no guarantees that this could not happen. A cut in the State
aid has never gotten to the legislators for approval, but I have heard
rumors that they have looked at this as a possible way of funding State
deficits rather than distributing the money to local Fire Relief
Associations. Since all volunteer Fire Department Relief Associations
rely on this type of revenue source to fund their per.sions, it would seem
that there would be quite an uprising by local fire departments if this
State aid was not given to support these pensions. In the past, this
question has been raised by the Council as to what would happen if the
State aid was cut; and the bottom line is, the City taxpayers would be
responsible for these pension benefit deficits. I only point this out to
let you know there are no guarantees that municipal support would not
ever be required; but at the present time, it seems highly unlikely.
As I indicated previously, in 1982 the City Council took the position
that they weren't in favor of granting pension increases to the fire
department members unless the fire department's income was self
sufficient and coul support the deficit without City taxpayers'
support. Over the past few years, all of the increases have been granted
under this policy in that the financial schedules do indicate that
sufficient income would be generated by the Relief Association's assets
to support their pensions. It probably makes more sense to annually
review the Association's assets and liabilities each year to determine
whether an increase is warranted rather than waiting three to five years
before an adjustment occurs. when long time spans occur between pension
increases, typically older fire department members nearing retirement
could be staying on the department waiting for an increase in benefits
before retiring; whereas, if it was adjusted annually, older members may
retire sooner, thus allowing new, younger members to be recruited. By
adjusting benefits annually, the incentive would be there for an
individual to retire at normal retirement age rather than waiting for a
big benefit increase.
B. ALTERNATIVE ACTIONS:
1. Grant an increase to $1,075 per year/521,500. This increase,
according to the Relief Association schedule, would not require a
City contribution and could be entirely funded through anticipated
State aide and other interest earnings on investments.
2. Do not grant an increase in benefits and only allow an increase to
occur if they have more assets than liabilities.
3. Grant an increase above the current $975 per year, but less than the
$1,075 requested.
Council Agenda - 1/24/89
Ir
C. STAFF REMMMENDATION:
Again, in reviewing the wsputatiuns supplied by the Relief Assucidtiun,
it appears that the State aid received by the fire department will
continue to provide sufficient income to support their requested increase
to $1,015 per year. Anything over this amount would require City support
through taxes. Based on this information, I have no objection to the
increase being granted as long as the City Council realizes that there
are no guarantees that State aid or investment earnings will continue at
the present level. I believe the idea of annually reviewing the
Association's liabilities and assets is a good idea and allowing
increases to be provided as long as tax levies are not required to
support the increase. Council, of course, can deny granting any increase
at this time and require the Association to only increase their benefits
when they have more assets than their liabilities. Even at the present
$975 per year , it would be a number of years before the Association could
increase their benefits on their own using this requirement.
D. SUPPORTING DATA:
Computation of benefits for each member at the $1,015 per year of
service.
L
C
ti
AR.^IE H. CARLSON
STATE AUDITOR
STATE OF MINNESOTA
OFFICE OF THE STATE AUDITOR
WITE 400
525 PARK STREET
SA2NT PAUL 55103
FILING INSTRUCTIONS
FOR
STATE FIRE AID YEAR 19 90
SCHEDULES I - I1 - III
2962551
Schedules I -II-III must be filed by relief associations paying lump sum
benefits. File a copy of this set of Schedules with your governing body by
Auoust 1, 1989 Keep a copy of them for the Office of the State Auditor which
{ will be sent later, along with your Relief Association Reoortinq Form for the
year ended December 31, 19$.9
FIRE/N.31
AN EQUAL OPPORTUNITY EMPLOYER
L7
SCHEDULES 2-tI-I22 FOR LUMP " PE#SION PLANS
STATE FIRE AID YEAR 1990
Ftreflgnters Relief Assoclatlan of Monticello County of Wright
SCl9712LE I
Ccaautaticn of tcneflt c' ra:llef association s;aclal fund (at S1.075 per year of service) for all mr=ers base:
on their years of Service as active fire department ssroers.-
1
F.D.
Entry
Name Age Date
I I.
G. Liefert I
1 5-63
12.
G. Jensen 1
1 7-66
# 3.
D. 8itzer 1
# 4-70
# A.
D. Kranz !
1 4-70
{ S.
W. Farnick I
1 6-72
{ 6.
T. Farnam #
+ 3-73
17.
W. Haaland 1
I 7-74
18. M. Flicker i 1 5-75
9. rw11 I
I 5-75
.D.
rttwe 1
t �-7A
1 24,725
W. (,p(,"a 1
1 5.?7
# 12.
M. Wallen I
1 5-77
123.
G. Datgligi.mer #
1 2-78
114. J. Wein 1
1 12-79
115.
M. Johnson #
I 9-80
126.
M. Theisen 1
1 5-82
7.
T. Lieferit 1
# 11-83
118.
B. ¢V19
1 15.351 1
29,
K. Stumpf I
# fi_AS
70. 0. Host I
110-95
2I.
T- Bremrr (
( t7 -AS
fA
f 17 70T
1 14
23.
M 111 IMA f
i 1-47
24.
1 •12`728
13
25.
1 14
I 12.728 I
35.
a
1 13
27.
n �r...nnl
# A.170
f 11
1 9.224 1
9
( 7.t59
1 10
1 8.170 1
30.
1
1
Total of Wer -ed mentions. If An•
10t41 of 4RM414 Installments. if env
Total of Far v "Sited oerslpns. If Anv
4 1989 5 ( 6 1990 7
To End of This Year j To End of Next Year
Years Active Accrued Tear. Active Accrues
Service Llamitity I Service Llamillty
27
1 29,025
1 28
1 30,100 1
23
1 24,725
1 24
1 25.800 1
20
1 21.500
1 21
1 22,575 1
20
1 21.500
1 21
1 22.575 1
18
1 18.254
1 19
1 19.823 1
17
1 16.770
1 18
1 18.254 1
15
1 14.018
1 16
1 15.351 1
tS
# 14.018
I 16
# 15.351 I
15
I 14 OtA
I 16
1 15,351
fA
f 17 70T
1 14
1 1g.(110 I
11
I ct.*fir
1 14
1 •12`728
13
i 11.503
1 14
I 12.728 I
12
1 10.343
1 13
1 11.503 1
in
# A.170
f 11
1 9.224 1
9
( 7.t59
1 10
1 8.170 1
8
I 6.193
1 9
1 7.159 1
6
1 4.408
1 7
1 5.289 1
6
1 4.408
1 7
1 5.289 1
5
1 1,191
1 4
1 1.408 1
4
1 "Aul
I 5
1 31
4
i 7 795
5
1 1,5j
7
I 7 i
# A
1 7 74M1 1
A. Accrued Liability Thru Nest Year 1990(tatal, column 7)
8. AC:.Ued Liability Thra This Year 1919 (total, Co11Wn 5)
T U14 ! 4-
i 7 Toa I
nd1 1 A
I 7 _j
5 TTT 1 T
7SS__
# 7
aha I T
i
t
I e 99T I
I I
#
I
� 1
# i
i I
f
II
......
#
298.230
270.324 �.......
270.324
C. Subtract Line 12 fres Lim A (normal Cost; oar hen and on Line i Sciedule 122)
Fractional yeefs of Service must be L111CUlAttd to nearest full year.
For lnstalimclt 114011114, enter Amount which will be payable after end of this year in Doth toluan S and 7.
J• Interest is to be 0414 on uapiid orisians, lad Interest for 1 year in Colusm 7.
:py of these uheaulea awe be pre:erted to the City Council before Aug t 1 each year.
v
SCHEDULE II
Projection of Relief Association special fund assets to end of this year, (December 31, 19e9)
Assets at January 1. 1989 (this year) 1. $ 179.997
Anticipated income to end of this year
'i
a) Minnesota State Aid $32,336
b) Receipts from local taxes
c) Interest an investments 15.000
d) Other income
Total of lines a -b -c -d - - - - - - - - - - - - - - - - - - - -- 2. S 47,336
Beginning assets plus estimated income for this year (LI + L2) 3. S 227,333
Estimated disbursements through end of this year
e) Pensions (Pitt (27 years) S 29.025
f) other benefits 1.500
g) MSFDA or VFBA dues, 1f any
h) Administrative and overhead 600
Total of Lines a -f -g -h - - - - - - - - - - - - - - - - - - - - - 4. $ 31,125
Projected assets at end of this year 12/31/89 (13-1.4) S. S 196.208
Calculation of average special fund income per member (other than interest or investment
income) `
State Aid Municipal Support 10". of surplus (1f any)
Last year 31.963
2 years ago 29.786
years ago 28.176
Totals 89.925 + +
Total 3 year income Sg9.q2sr 3 e $ 29.975 + 2a (no. of members) • 6. $ 1,070
CERTIFICATION OF SPECIAL FUND REOUIRE.MENTS
This information must be certified to the governing body of the municipality or inde,en-
dent nonprofit firefighting corporation by August 1, 1989
we, the officers of the Monticello Firefighters Relief Association, state that
the accompanying schedules nave oeen prepare* in accordance with the provisions of the
volunteer Firefighters Reiief Association Guidelines Act of 1971 (including M.S. 69.772) and
that the schedules are correct and complete to the best of our knowledge. The financial
requirements of the relief associations Special Fund for 1990 are $43,300.00
Check here it no municipal support required x
The average non -investment income per member of said special fund for the past 3 years was
$ 1.0170.00
5lgnacure or rresloent gate
ii,signature or becratary gate
�S1g•lature or treasurer
gate
M OULE III
C:Mtation of Financial Requirements for Next Year . 1990
Column A Column 8 Column C
1. Assets from Line 3,50edu2ell--------------------------5196,208
2. Accrued liability to end oT L1ls year (from Line 8, Samedule 1) - - - - - - - - - - 270,326
3. A) If Line 2 is more than Ltne 1, subtract Line I from Line 2. Deficit - - - - - 76,116
b) If Line 1 is core than Llu 2, subtract Line 2 frog Line 1. Surplus - - - - -
If surplus exists, enterl0% of surplus amount in
ColumnCandgotoLineI -------------------------------- - - - - --
AmortizatIGn of deficit (or deficits) incurred prior to end of last year (see note).
Column 1
Column 2
Corn 3
Year
Original
Amount Retired
Amount Left
Incurred
Deficit Amunt
In Prior Years
to Retire
1980
65.684
- 59.112
6,572
1986
39,285
- 11,787
. 27,498
1987
2,651
- 530
2,121
19Ag
23.896
- 2.390
- 21,506
4. Totals
73,819
57,697
131,516
-...... ...................x1011.....
13,152
S. Sumtract Column 3 total from tine 3(a). (If Column, 3 is equal to or greater than
Line 3(a), no new deficit exists- ) If Column 3 is less than Line 3(a), difference
is new deficit. Enter . -.. .......................... 16,419
Enter 1O%Ofthis new daflcit InColumn 8--------------------------- 1,642
6. Increase (from Line t,Scnedule1)-----------------------------27,906
7. Anticipated expenses Next Year, (other than pensions, or investments) 1989 esttoatas - -•- - 600
a. Anticipated income Nat Year 19 9Oeatisates
a) Minnesota Suts Aid •.-.. . . . . . . . . . . . . . . . . . . . . . . . 33,953
b) 5% interest on amount of Line 1 above ................... 9,810
e) Other inose (ds not Include local taxes or investment income) ...... .
Tout 8a.b+d---- - -------------------------------- - - - - -- 43,763
9. Total, Column 8 • • • . ... ............................... 43.300
10. total, Column C - - - - - � .. - - - - - - - - - - - - - - - - - - '? - - - - - - - - - - - - - - - - - 42&767
11. It Line 9 is more Nan Line 10, the difference is the amount of municipal support
required. Certify this amount to city Council before August 1 (bottom part of
Schedule 1I - Spectil fund Reolirements) - - - --- - - - - - - - - - - - - - -- - - -- -
12. If Line 10 is more Con Line1, no municipal support is required. Certify that fact 8 463 surplus
to council before August I. Council is permitted to provide funds In excess of
requirement.
Note: Deficits are gesenliy ratind in less than 10 years, because of increase in state aid, turnover gain and @armed
interest greater than SS. If desired, the amount in Column 2 my be Increased to that the total of Column 3 is eoual
to Lim 3(4). If more Con one deficit is being amortized (the la requires each deficit to be retired separately),
adjust Column 2 for Ne oldest deficit first. When Column 2 meals Column 1 for any deficit, that deficit has been
retired and may be removed from the amortization schedule. Whenever a New Deficit appears In Line 9, the original
swunt of such deficit must be added to the emortitation se.4edule the following year.
0
Council Agenda - 7/24/B9
i
�- 5. Consideration of final payment for Project 88-07 (Markling). W.S.)
A. REFERENCE AND dA(AGNUUMV:
This project consisted of sanitary sewer and water for an 8 -unit
townhouse project near the Monticello Country Club. In addition to the
townhouse project, sanitary sewer and water mains were extended to the
Monticello Country Club. The major portion of the project was completed
in late fall of 1988. Recently, Birchfield Construction of Hanover,
Minnesota, completed the restoration on the project; and the City
Engineer has recommended final payment. We are currently making some
last minute checks of the project in relation to operation of the
sanitary sewer and water system.
The original contract amount for this project with Birchfield
Construction of Hanover, Minnesota, was $47,694.50. The actual cost to
complete the project was 4.9/61.7y , leaving a balance due
Birchfield Construction of S C x H•0 I
B. ALTERNATIVE ACTIONS:
1. The first alternative is to authorize final payment on Project 88-07
to Birchfield Construction, Inc., of Hanover, Minnesota, in the
amount of
2. The second alternative is not to make final payment to Birchfield
Construction at this time. Since the work is complete, and our
inspections have revealed no deficiencies in the project, the City
has no reason to withhold final payment.
C. STAFF RECOMMENDATION:
It is the recommendation of the City Engineer and Public works Director
that the council authorize final payment to Birchfield Construction ab
outlined in alternative I1.
D. SUPPORTING DATA:
Nona.
-NOTE: Thaso blanks will bo fillad in by OSM at Monday avoning'e
mooting. •, l
4
Council Agenda - 7/24/89
6. Consideration of strategy for development of marketing/promotional
materials. W .O.)
A. REFERENCE AND BACKGROUND:
Promotional materials are not available, and a marketing strategy is not
in place to sufficiently advertise and promote available industrial and
commercial opportunities in Monticello.
Monticello has made major investments designed to encourage economic
development. Approximately 227 acres of vacant industrial land exist
within the city, which represents a significant private and public
investment in streets and utilities. The City has invested approximately
$150,000 in the Dundas Circle development for the purpose of attracting
industry. Significant commitments toward staff development have been
made for the purpose of establishing a strong economic development
effort. The Housing and Redevelopment Authority has expanded the tax
increment financing district and combined district finance plans to
provide flexibility in the use of tax increment financing as an economic
development tool. And finally, the City has created an Economic
Development Authority and a revolving loan program also designed to
encourage industrial/commercial growth within the community. These
efforts to make Monticello an attractive place for business have not been
complimented by a marketing strategy designed to capitalize on economic
development related investments.
The City also lacks promotional materials for distribution to the general
public. The inventory of the existing brochures has been exhausted, and
it is time to either revise and reprint our existing brochure or create a
new brochure in conjunction with an updated public information program.
PUBLIC INFORMATION PROGRAM GOALS
The existing marketing/public information program is deficient in terms
of providing information to businesses that might be interested in
relocating to Monticello but are not aware of the opportunities khat
Monticello provides. Those businesses that do contact Monticello
(walk-ins) for information about the community are provided accurate
information. However, information is not provided in an attractive and
consistent manner. Materials presented to businesses that inquire about
Monticello are comprised of a hodge podge of facts, figures, and maps
drawn from an assortment of sources. Although accurate, the materials
are not presented in a cohesive, highly understandable format.
Another area of public information deficiency pertains to information
provided to the general public regarding community and City services.
The existing supply of brochures is exhausted, and the format and
pictures of the existing brochure must be updated to reflect the recent
changes in the community. The time is right to coordinate development of
information materials provided to the general public with the development
of materials specifically geared to economic development. Staff has
worked an development of a proposed public information materials program
with the following goals in mind:
Council Agenda - 7/24/89
1. The promotional materials should be designed to be incorporated into
a cost effective outreach or marketing program, which results in bona
ride ousiness leads or prospects.
2. The program should include a follow-up brochure designed to provide
professional presentation to prospects.
3. Materials should be general enough to serve the information needs of
the general public as well as the business community.
PROPOSED MARKETING/PROMOTION MATERIAL DESIGN STRATEGY
Staff requests that Council consider staff suggestion to develop two
separate information pieces with a business reply card included with one
of the pieces. The first piece would consist of an attractively designed
brochure which would provide a brief overview of the community. This
brochure would be used in conjunction with target mailings and include a
business reply card.
The business reply card would be designed to provide companies the
opportunity to respond to the mailed brochure. Under this program,
direct mailings would be made to companies that might find Monticello as
a potential home. For instance, direct mailings could be made to
businesses that supply window companies with materials necessary for the
operation of the window company. Mailings could be made to businesses
that meet a certain profile that fits well within the Monticello business
environment. Mailings would not be made using the "shot -gun" approach.
Companies interested in Monticello would be asked to complete the
business reply card and thus provide the City with a lead to follow up
on.
Once a lead has been established, then City staff can contact the
prospect with a follow-up brochure designed to provide more detailed
information about the community. The brochure would be flexible enough
to allow insertion of specific information pertaining to the needs of the
prospect. This follow-up brochure would be a relatively expensive
information piece; however, fewer of these brochures would be printed.
This brochure could be also distributed to residents as they move into
the community.
ALTERNATIVES FOR ACHIEVING STRATEGY OR MODIFIED STRATEGY
Following are different methods that might be used in achieving the
strategy above. Also included are methods for achieving a modified
version of the strategy above.
tion 11. Under this option, the City staff designs and executes the
marketing/public information program. Staff would bo responsible for
providing data, photography, designing format, working with printer to
keyline materials, writing narrative descriptions, and coordinating
printing, etc. Under this option, City staff would likely utilize the
format of the existing brochure in development of the two information
pieces.
Council Agenda - 7/24/89
Option 02. A graphic artist, design/marketing consultant would be
employed to assist with design and execution of the program. Under this
scenerio, staff wuuiu be Veel+unaiuie oily iut Nruviuiny euYPott iu [fie
graphic artist by gathering data and providing input as necessary.
Option @3. The public information program above could be scaled back and
not include one of the brochures above; or the two brochures could be
combined into one information piece. A graphic artist could be employed
to complete the scaled back program.
option 1+4. This option simply calls for the updating of the existing
brochure.
B. ALTERNATIVE ACTIONS:
Council established a $20,000 budget for the purpose of development of a
City logo and promotional materials, including a video production.
Currently, approximately $16,000 remains in the budget.
1. Motion to direct Citi/ staff to a develop marketing/public information
program as described above.
Under this alternative, there is not a high likelihood that the
program will be completed on a timely basis. Development of the
information brochure has been languishing for a number of years to a
large degree because projects with higher priorities keep moving
ahead of development of this important program. There is a good
chance, unless Council makes this a high priority for staff, that
this item will continue to be placed on the side or back burner.
Although staff is not trained as graphic artists or marketing
experts, it is my view that we would be able to prepare the materials
associated with this program. The quality of the work, however,
would not match that of a graphic artist.
Implementation of this program would require a significant staff
investment in time. There is considerable doubt in my mind if staff
has the time to complete the project as noted above. In terms of
printing cost, it is likely that if staff develops the materials, the
printing coat will likely be around $6,000. This is slightly less
than what we would expect if a graphic artist completed the work, as
a staff prepared brochure might be simpler and use fewer colors.
2. Motion to authorize staff to solicit quotes from grayhic artists for
the purpose of development of a marketing/promotional material
program.
Under this alternative, it is very likely that the project will
actually be completed in a timely manner. Staff time necessary for
the completion of this project would be limited to the time necessary
to gather data and provide input as necessary.
Council Agenda - 7/24/89
It is staff's view that the effectiveness of the program or the
number of leads generated by the marketing effort will be greatest
under this scenerio, ds the cunsultdnC selected will likely be Well
versed in marketing strategy and economic development. The printing
cost associated with this program utilizing a graphic artist will
amount to approximately $8,500. Consultant fees will amount to
$7,500. These costs are estimated based on a proposal submitted by
Henning and Associates.
Selection of this alternative would exhaust the budget without
development of the video and thus represents a budget overrun. It is
staff's view that development of the marketing materials as described
outweighs the importance of developing a video production during this
budget year.
3. Motion to authorize staff to solicit quotes from graphic artists for
the purpose of implementing a reduced marketing/public information
program.
Under this scenerio, it is likely that the promotional materials will
be completed in a timely manner. By reducing the marketing effort or
by eliminating a target or mass mailing, we will reduce the
effectiveness of our advertising effort, which essentially represents
a minor change to the existing program. Staff time working on this
alternative will be minor. Printing costs and consulting fees would
be slashed in half relative to option A2.
4. Motion to direct staff to update the existing brochure.
Under this alternative, City staff would simply update the existing
brochure and maintain our public information program as it currently
exists. Staff has sufficient time to update and coordinate the
printing of the existing brochure. In terms of program
effectiveness, this option represents no change and will not improve
our present program of advertising existing economic development
opportunities. The cost to print the updated brochures is estimated
at $2,500. This, by far, is our least expensive alternative.
However, it also provides no potential for improving our present
marketing program.
C. STAFF RECOMMENDATION:
1t is with some hesitancy that City staff recommends alternative (2.
obviously, the relatively high cost of this alternative causes concern.
Although the cost is high relative to the other alternatives, this
alternative represents the best hope for implementing an effective
marketing program. Although City staff has the capability of
implementing the proposed program, it is our view that the work might not
be completed for some time and that the brochures might not be of
sufficient caliber.
8
Council Agenda - 7/24/89
�- Staff recognizes that the cost for this program is relatively high and
that Council may wish to back off a program that calls for two
lntormation pieces rather than one. Wuncii may also wish to mocify the
proposal by eliminating a direct mailing program. It is staff's view,
however, that the direct mailing component of the program is supportable
because the proposed marketing effort compliments existing economic
development related investments. It seems appropriate that if the City
is willing to spend significant funds in promoting economic development,
it should also take decisive steps toward marketing the c=unity. in
order for the economic development program in the community to be
successful, we need to be communicating the opportunities that we have
created here to businesses that might not otherwise know about
Monticello. The program as outlined will allow us to reach out and
effectively respond to businesses not otherwise aware of the Monticello
option.
Cost estimates associated with alternative y2 are derived from a proposal
submitted to the City by Henning and Associates. It is staff's
recommendation that the City solicit quotes from a few other firms for
the services required with alternative 02. If it is found that Henning
and Associates' quote is less or near quotes received from similar firms,
it is recommended that the City select Henning and Associates to complete
the marketing/promotional material development program. This
recommendation is based on the fact that Henning and Associates did
commendable work on the City logo and because Stephen Henning has
developed an important understanding of the community. Also, Henning and
Associates do have considerable experience in designing and promoting
municipal economic development advertising campaigns. Mr. Henning will
be in attendance to review some of the promotional materials he has
prepared for communities such as Coon Rapids and Columbia Heights.
D. SUPPORTING DATA:
Examples of work completed by Henning and Associates, and examples of
other community brochures will be available for Council review at the
meetingr Decision factor table is attached.
�l
DECISION FACTORS
OPTION
OPTION
OPTION
OPTION
ONE
TWO
THREE
FOUR
City
Marketing/
Reduce
No
Staff
Graphic
31r000sed
Chanqe
Develop
Artist
Program
Timliness of materials
Poor
Good
3ood
Good
Program Effectiveness
Better
Best
No change
No change
Staff Cost
Major
Minor
Ainor
Minor
Printing cost
$6,000
$8,500
$4.000
$2,500
Consultant's fees
$0
$7,500
$4.000
$0
Total cost
$6.000
$16.000
$8,0001
$2.500
D
Council Agenda - 7/24/89
7. Consideration of establishing policy on sale of Oakwood Industrial Park
Second Addition lots. (R.W.)
A. REFERENCE AND BACKGROUND:
A few years ago, the City acquired three lots within the Oakwood
Industrial Park from the Partnership in lieu of delinquent taxes and
assessments that had accumulated. Two of the lots have recently been
subdivided into Oakwood Industrial Park Second Addition, now consisting
of six smaller lots ranging in size from 1 to 2+ acres. With the recent
construction of a cul-de-sac to service these six individual lots last
year, the City now has these lots available for any prospective
industrial user.
Although the City has not had any firm proposals from prospective buyers
for these lots, 011ie continues to recommend these parcels when
appropriate for a smaller business not requiring five acres. A small
tool and dye company known as Certified Tool Cogmny, owned by Mr. Tim
Moriarity, has expressed interest in acquiring one of the lots since last
year. Being a small company, it doesn't appear that tax increment
financing will provide any benefit for this project, and as a result,
Mr. Moriarity is interested in possibly purchasing a lot and waiting a
year or so before he actually constructs a small 2,500 square foot block
building for his business. He has questioned whether the City would
consider selling a lot on a contract for deed rather than a cash basis,
and this is the subject of this agenda item.
Since the City is not normally in the real estate business, no policy has
been established as a guideline for City staff to use when considering
offers on City property. With these industrial park lots, I certainly do
not see any problem with selling a parcel on a contract for deed basis
provided a minimum down payment is received and an appropriate interest
rate is charged. As far as the real estate sale goes, the City would be
well protected under the contract for deed basis and may have an easier
time of selling the lots under this basis. Typically, when a project is
being proposed and the City is involved with tax increment financing for
the proposal, the City has a site plan which indicates the size of the
building and the type of construction to be expected. On the negative
side, if it's the City's intent to sell the property under the contract
for deed basis, some of this control is lost in that a firm site plan or
building permit may not be submitted until the future, and we may not
know exactly what type of business or industry would eventually build on
the property. The real question is, is it our intent to market the
property as quickly as possible with attractive terms, or retain
ownership until the City is satisfied with the industry and/or type of
building that would be constructed. It should be noted the City does
have minimum building standards which must be followed in the industrial
park, and even if the property was sold under a contract for deed basis,
any prospective buyer would have to meet these requirements. Although it
9 is certainly in the City's best interest to make sure that the first one
or two buildings located within this six lot subdivision are attractive
.a, and appropriate, we certainly don't want to make it too restrictive,
which may hinder our ever selling this property.
10
Council Agenda - 7/24/89
B. ALTERNATIVE ACTIONS:
1. The City could establish a policy of allowing City staff to negotiate
sales of industrial park lots on a contract for deed basis with a
minimum down payment requirement and interest rate. It would be my
recommendation that a down payment of at least 25 percent be
required; and under today's market conditions, a 9 percent interest
rate should be the minimum.
2. A policy could be established requiring full cash payment only. It
would appear that normally this would only be met if a project
involves City tax increment financing, at which time the City would
know in advance the type of structure and business that would be
located on the property.
3. A policy could allow contract for deed sales with minimum
requirements established in advance or covenants could be attached to
the property indicating minimum building standards we would expect
for this property.
C. SfAPP RECOMMENDATION:
with our large investment in this property, not only in the purchase of
the land but also the recent street improvements that were completed, it
is certainly in the City's best interest to see these properties develop
as soon as possible. Since the lots are smaller than the average within
the industrial park, smaller industries or businesses will be the target
for these properties; and in some cases, financing may be a problem if
the City requires cash for the property. I certainly do not oppose any
sale on a contract for deed basis but do recognize some staff members
concerns over selling these lots without any proposal or firm commitment
on the type of business or building structure that would be built. I
recognize that the first one or two buildings located on this subdivision
could reflect the caliber of future buildings which may hinder other
sales in the area, but also recognize that the City has minimum building
standards that apply to the balance of the industrial park which are no
different than for this property. As an investment, I certainly believe
it should be the City's desire to market the property as quickly as
possible to recapture our cost and believe that a contract for deed basis
would be appropriate.
D. SUPPORTING DATA:
None.
m
T
14,
Council Agenda - 7/14/89
8. Consideration of authorization to pursue land negotiations with Bridge
Water Telephone Company. (R.W. )
A. REFERENCE AND BACKGROUND:
Recently, the City staff and the RRA committee were informed of Bridge
Water Telephone Company's plans to alter their present cold storage
facility located on West County Road 39 across from our current
maintenance building property. Bridge Water Telephone had expressed an
interest in possibly upgrading their present cold storage metal building
and also expanding the facility to house indoors more of their telephone
equipment. Bridge Water's property is currently zoned PZM and is
considered a legal non -conforming use. But the facility would not be
able to be enlarged or modified without an ordinance amendment being
enacted to allow this expansion within our PZM zone.
In light of this possible expansion interest by Bridge Water Telephone
Company, the HRA, through 011ie, has made initial contact with Bridge
Water concerning a possible relocation of their facilities to a proper
zoning district such as the Oakwood Industrial Park property owned by the
City. Although the staff has made only initial inquiries, there may be
some interest on Bridge Water Telephone's part in the idea of relocating
their facility to the industrial park property. 011ie is in the process
of preparing a proposal to Bridge Water that would point out the benefits
of Bridgewater relocating to the industrial park and possible benefits
to the City of acquiring their present property. Bridge Water would have
more land available for expansion in the future, it would be in the
proper zoning district, while the City could obtain their property and
clean up a non—conforming use which would coincide with our Conprehensive
Plan.
The purpose of this agenda item is to receive input from the Council as
to whether the staff should continue to pursue negotiations with Bridge
Water concerning a land swap and/or encourage Bridge Water to consider
expansion of their facility in the industrial park. Should a land swap
occur, the City would have the benefit of controlling a present
non -conforming use to ensure that future development of this parcel
conforms to our present Zoning Ordinance. In addition, we would see
development starting to occur on one of the six iota we own in Oakwood
Second Addition.
B. ALTERNATIVE. ACTIONS:
1. If the Council feels the discussions with Bridge Water should
continue, the staff feels that a land swap may be an equal exchange
with each party receiving a realistic value. Council could direct
staff to continue negotiations with Bridge Water and report back to
the Council with a proposal that is agreeable to both the City and
Bridge water.
12
Council Agenda - 7/24/89
2. The second alternative would be to direct staff to encourage Bridge
Water to purchase land in the industrial park for their expansion and
let Sriage water maintain ownership of their present facility diuny
County Road 39. The present non -conforming use and structure would
remain and could be transferred to new ownership and remain
non -conforming in the future.
C. STAFF RECOMMENDATION:
Assuming that the City staff's discussions with Bridge water could result
in an equitable land swap or exchange, I believe the staff feels the City
would have an opportunity to acquire a present non -conforming use and
could direct the parcel to be developed in a conforming manner with the
present zoning district. The one -acre parcel on Golf Course Road could
eventually be suitable for single family residences or a smaller
multi -family structure that would meet the current PZM zoning district.
As a result, it is recommended that the Council authorize staff to
continue discussions and to report back to the Council on a possible
exchange in the future.
D. SUPPORTING DATA:
Copy of letter from City to Bridge Water; Tentative land exchange
proposal worksheet.
13
250 East Broadway
Monticello, MN 55362.9245
f1tne: (612) 295.2711
Metro: (612) 333-5739
Zno, eh Ma,
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Ilm Itlun�t:n
%ley AO-, n
Raman Smuh
Ano IX7 djnrl4r
dam: nA,rm.,,.,.e.
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Jhn \,nodi
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11Cre A" ,1kUk
July 24, 1989
Mr. Robert Rierson
Bridgewater Telephone Company
316 Pine Street
P.O. Box 298
Monticello, M 55362
Dear Mr. Rieraon:
The Monticello Housing and Redevelopment Authority (HRA)
was originally informed of Bridgewater Telephone Company's
plan to 'alter their present cold storage facility located
on West County Road 39 through the City's Building Inspector.
The HRA became interested in the development because the
p roject coincided with their objectives: L) enhances
continued consistency of the City's Comprehensive Plan,
2) demonstrates a long-term economic benefit to the
City, and 3) could promote additional desired "spin-off"
development.
In early JuLy, we discussed the possibility of relocating
Bridgewater'a cold storage facility to one of the City's
industrial lots and the potential use of Tax Increment
Financing (TIF) to assist with the write-down of the
land cost. However., the increment generated from the
project is substantially small and the suggestion was
Sade to swap lends. You indicated Bridgewater's main
objective to alter the present building was to improve
the aesthetic value.
Enclosed are excerpts from the Monticello Zoning Ordinance
which describe land use regulations pertaining to your
property located in the PZM zone. According to the
ordinance, the present use of the property as a site
for cold storage in a legal but non -conforming use.
Bridgewater Telephone Company is allowed to continue
to use the property in this manner indefinitely.
However, expansion or enlargement of structures intended
for use in conjunction with current operations is not
allowed under current law. In order for an expansion
to occur at this site an amendment to the ordinance
would be required which would allow the present use
(cold storalge) as a conditional use in the PZM sone.
Mr. Robert Rierson
July 24, 1989
Page 2
If such an amendment is developed, then a conditional use permit
must be obtained by Bridgewater in accordance with the new
amendment. if you are interested in proposing an amendment to
the ordinance, please contact Cary Anderson regarding application
materials. The fee for proposing an ordinance amendment
is $100.
Also, enclosed are brief general answers to the questions asked
at our July meeting which may vary upon site plan review, however,
this may assist clarification of some of the City Ordinance
requirements for construction In an I-2 zone.
It appears to me that Bridgewater Telephone Company has at least
two alternative site locations for their planned improvements.
The City of Monticello is interested In the "swap land" option
and if Bridgewater is agreeable, I suggest the two entitles
meet to continue discussions on this matter. 1 will contact
you after July 24. If you have any questions, please don't
hesitate to call me at 295-2711.
Thank you for your interest to cooperatively work together to
preserve Monticello as n first class community.
Respectfully,,
011ie Koropchak
Economic Development Director
Enclosures
cc: Rick Wolfsteller, City Administrator
Jeff O'Neill, Assistant City Administrator
Cary Anderson, Building Inspector
File
LAND EXCHANGE PROPOSAL
CITY OF MONTICELLO
on behalf of
BRIDGEWATER TELEPHONE COMPANY
ASSUMPT1uNS: Lot 6, niock 1, Oakwood industrial Park Second Addition
1.4898 acres or 64,895.68 square feet. Zoned 1-2.
Proposed 12,000 sq ft metal building (cold storage)
16 ft high sidewalls
Partial concrete floor
Present Site on West County Road 39, 1 acre or
43,560 sq ft, zoned PZM. Present building 1,800 sq ft.
BENEFITS BRIDGEWATER CITY
NONBENEFITS
ESTIMATED
MARKET VALUE
'89 Tax Book
PROJECT COST
a) Increased land square a) Utilization of city lots.
footage.
b) Allowable expansion in b) Coincides with City's
proper zone. Comprehensive Plan.
3) Land for future devel- c) Marketable land.
opment.
4) Increased fixed asset valuation
a) Relocation costs: a) Demolition and cleanup
pole racks and costs.
fence.
a) $59,700 (PZM Zone) n) $7,100 (.1088 psf)
Land - $47,760 ($1.10 psf)
Bldg - 11,940 ($6.61 psf)
LAND a) NSP Mnintennnce '89 F.MV
COMPARISONS $45.800 (PZM Zone)
Land - $9,400 (.1715 psf)
Bldg - $36,400 ($14.96 psf)
a) $23,816.22 (.3669 l)ef)
Land - $11,726.22
Assessments - $12.,090.00
a) NSP Purchase price (appraisal
$75,000
Land - $15.375 (.28 psf)
Bldg - $59.625 ($24.51 paf)
b) Larson Mfg - OIP
Land - $38,600 (.41psf)
RESALE VALUE. a) Adjoining Country Club
Manor per Gary Anderson
12.000 sq ft lot goes for
$13,000 ($1.08 psf)
CONCLUSION Suggest equal exchange or ownp of Innds with conditional
use that on the proposed facility's major exposure to
public right of way shall consist of no more than 501
metal exterior.
Equal price is $24,000 which is .55 psf for the Bridgewater
land, covers City's project cost, In .27 psf greater
than City is paying for NSP land across the road, and
resale of property could be profitable.
J
D
GENERAL FUND
AMOUNT
CHECK NC
CASH DISBURSEMENTS - JULY 1989
MN Dept. of Natural Resources - Snowmobile 6 Watercraft reg.
440.00
27103
Wright County State Bank - Purchase 3 C.D.'s
500,000.00
27104
Wright County State Bank - Investments
350,010.00
27105
Keith Trippe - Reimbursement from payroll deductions
41.74
27106
Void
-----
27107
Systems Service Co. - Professional services - Water Dept,
263.25
27108
Fair's Garden Center - Sod, trees, etc.
893.94
27109
Gary Anderson - Mileage expense
114.27
27110
Feedrite Controls - Water supplies
328.15
27111
Caldwell Tanks, Inc. - 800.000 Gallon Standpipe 6 Appt. work
16,909.62
27112
Richard Knutson, Inc. - Payment i3 - Watermain 6 Appt. work
31,999.58
27113
First National Bank - Purchase C.D.
100,000.00
27114
Quality Lawn Maintenance Co. - Mowing &I1 Or Qnor
550.00
27115
Void
------
27116
Road Rescue. Inc. - Pager case - Fire Dept.
48.24
27117
Principal Mutual Life Ins. Co. - Insurance premium
6,422.82
27118
George Poach - Council Chamber remodeling
450.00
27119
Continental Safety Equipment - Air packs, nose cups, etc. - Fire D,pt.
3,350.44
27120
Compulabel, Inc. - Labels - Recycling
48.64
27121
Marco Business Products - 2 adding machines and copy paper
414.00
27122
Holiday Gas - Gas - Fire Dept.
14.96
27123
Loch Jewelers - Engraving
10.00
27124
Corrow Sanitation - Monthly contract payment
7,751.10
27125
Jerry Hermes - Janitorial services at Library
227.50
27126
Y.M.C.A. of Mpls - Monthly contract payment
625.00
27127
Preusse Cleaning Service - Cleaning contract - City Hall 6 Fire He
.1 450.00
27128
Sears - Tree Trimmer
182.91
27129
MN. Dept, of Natural Resources - Snowmobile, watercraft 6 ATV rag.
387.00
27130
Patty Salswedel - Animal control contract 6 Adoptions 6 Supplies
473.00
27131
Diane Jacobson - Mileage expense
33.50
27132
Adopt -A -Pat, Inc. - Animal control
110.00
27133
Wilem Hayes - Info Center Salary
45.50
27134
Janette Leersen - Info Center Salary
122.20
27135
Water Products Co. - Water motors 6 supplies
624.52
27136
I.C.M.A. Retirement Corp. - Payroll deductions
568.88
27137
Rick Wolfsteller - Mileage allowance
300.00
27138
State Capitol Credit Union - Payroll deductions
70.04
27139
Jerry Olson - Temporary building inpeetor salary
150.00
27140
MN. Dept. of Natural Resources - Snowmobile 6 Watercraft rag.
265.00
27141
Wright County State Bank- FICA, Federal 6 Medicare W/H
5,458.64
27142
PERA - Payroll Deductions
1,588.72
27143
Patti Dsiekciowaki, Marcy Chock, Hope Palmquist - Recycling award
50.00
27144
Jennifer Walberg - Recycling sward
30.00
27145
Amber Hendrickson - Recycling award
20.00
27146
Norwest Investments - Computer payment for July
2.407.61
27147
PERA - Insurance premium
18.00
27148
State Treasurer - Building permit surcharge
793.44
27149
Moon Motors - Parts
7.90
27150
Martin's Farm Service - Lawn fertiliser
262.50
27151
Wright County Treasurer/Auditor - Sheriff's contract payment
12.049.14
27152
Teas Laboratory Chemical Corp. - Degreaser
765.67
27153
Maus Foods - Supplies
294.78
27154
Onann 11rotherw - Sand
314.76
77155
GENERAL FUND
AMOUNT
CHECK N,
CASH DISBURSEMENTS - JULY 1989
Unitog Rental - Uniform rental
163.96
27156
Monticello uffice rroducLs - office suppiies
420.41
27157
International Institute of Municipal Clerks - Membership dues
55.00
27158
Scherer Sanitation - Latrine rentals - Parks Dept.
62.00
27159
J. M. Oil Co. = Gas
11.20
27160
Barton Sand 6 Gravel Co. - Sand
11.75
27161
Adam's Pest Control - Pest Control at Library
44.00
27162
National Bushing S Parts Co. - Supplies
30.58
27163
Buffal Bituminous - Sand A gravel
231.44
27164
Harry's Auto Supply - Parts and supplies
232.39
27165
Copy Duplicating Co. - copy machine mtce at Library
36.00
27166
Companion Pets - Services at Library
77.97
27167
Pitney Bowes - Purchas postage machine
149.00
27168
Northern Oxygen Service - Supplies - Fire Depart.
12.30
27169
MTI Distributing - Cap screws - Street Dept.
32.00
27170
Unocal - Gas
91.97
27171
Local 1149 - Union Dues
144.00
27172
American National Bank S Trust - Bonds Due
260,215.76
27173
Norwest Bank Minnesota - Bonds Due
72,973.75
27174
First Trust Bank - Bonds Due
84,345.01
27175
Al Corrow - Reimbursement for weight slips - Garbage service
66.00
27176
Corrow Sanitation - Add'1 land fill charges
3,043.80
27177
Midwest Gas Co. - Utilities
56.75
27178
Jim Ennis Cabinets - Stand for Library 6 Desks for Council Chambers
1,629.00
27179
NuTEch Environmental Corp. -Vrr? Supplies
603.76
27 y
Professional Services Group - WWCP Monthly Contrac Payment
22,083.35
27�,,,
Bridgewater Telephone - Telephone Charges
1.333.65
27182
Monticello Times - Legal Publications
1,168.30
27183
Ruff Auto Parts - Junk Amnesty
1,220.00
27184
Water Products Co. - Meters, etc. for Water Dept.
1,450.86
27185
Coast to Coast - Supplies
292.06
27186
Communication Auditors - Repair Fire Dept. pagers
368.77
27187
Quality Lawn Mnintenace Co. - Moving
145.00
27188
Data Management Design. Inc. - Utility Systems Modifications
350.00
27189
Automation Supply - Computer Paper
142.50
27190
Simonson Lumber Co. - Lumber to remodel council chamber
367.57
27191
Purcell Plumbery - Supplies for parks
42.91
27192
Minnesota Book Store - Mechanical Code Book
13.16
27193
Monticello Fire Dept. - Firemen's Wages
2,157.76
27194
MN. Dept. of Natural Resources - Watercraft. Snowmobile 6 ATV.
307.00
27195
Patty Snlzwedel - Animal control 6 Adoptions
479.00
27196
Jerry Hermes - Janitorial Services - Library
227.50
27197
M.M. Pollution Control Agency- Permit Application
50.00
27199
Vcid
-----
27199
Commissioner of Revenue - Water Sales Tax
472.94
28200
NSP - Utilities
7,984,92
28201
Anoka County Social Services - Payroll deductions
210.16
28202
Petty Cash - Reimburse patty cash
48.25
28203
I.C.M.A. Retirement Corp. - Payroll deductions
568.88
28204
State Capitol Credit Union - Payroll deductions
70.04
28
Wright County Recorder - Recording fees
20.00
28. f
Wilma Hayes - info center salary
83.20
28207
Jennerte LeerRRen - Info conror salary
96.20
214208
GENERAL FUND AMOUNT CHECK NG
CASH DISBURSEMENTS - JULY 1989
Liquor Fund - Reimburse Liquor for interest
2.625.nn
2R2nq
Principal Mutual Life Ins. Co. - Insurance premium
6,860.54
28210
Orr-Schelen-Mayeron b Assoc. - Engineering fees and new maps
8,331.54
28211
Dahlgren, Shardlow 6 Uban - Professional services
312.90
28212
Smith b Hayes- Legal fees
1,607.30
28213
St. Cloud Appraisal Inc. - Assessment Analysis - Klucas Property
800.00
28214
011ie Koropchak - Mileage
11.75
28215
A T 6 T Info Systems - Fire Phone charges
3.96
28216
Schluender Const. - Digging on Mississippi Drive
385.00
28217
Share Corp. - Soap
278.54
28218
Mil. Conway Fire Safety - Skull Saver - Fire Dept.
73.55
28219
Roval Tire of Monticello - Repairs - Fire Dept.
98.74
28220
Richard Knutson, Inc. - Reimbursement for Sales Tax Refund
6,202.32
28221
Jon Sarff - Reimbursement for Sales Tax Refund
3,315.53
28222
Caldwell Tanks, Inc. - 800,000 Gallon Standpipe 6 Appt. work
39,839.58
28223
Richard Knutson, Inc. - Payment A4 - Watermain b Appt. work
1,484.37
28224
Buffalo Bituminous - Payment AI - Road Imp. Project 6 Appt. work
84,080.16
28225
Commissioner of Transportation - Signs - Celebrate MN.
320.00
28226
Commissioner of Revenue - MN. tax w/h - payroll
1,738.04
28227
Wright County State Bank - FICA, Federal 6 Medicare W/H
5,199.06
28228
PERA - PERA W/H
1,601.31
28229
Gruys, Johnson 6 Associates - June computer charges 6 1988 Audit
11,758.75
28230
GRDA Publications - Subscription - Bld. Inspections
57.50
28231
Copy Duplicating Products - Copy machine mcce. - Library
36.00
28232
June Payroll 31,690. 18
TOTAL CASH DISBURSEMENTS FOR JULY 1,723,962.36
C
LIQUCR rr11ND
CASH DISBURSEMENTS - JULY 1989
AMCUNT
CF_°CK
NO.
Ted Reimes - Bulbs
38.00
14524
Eagle Wine Co. - Wine
533.43
14525
Griggs, Cooper 6 Co. - Liquor
2,886.49
14526
Quality Wine 6 Spirits Co. - Liquor
1,252.50
14527
Ed Phillips 6 Sons Co. - Liquor
3.998.60
14528
Griggs, Cooper 6 Co. - Liquor
3,997.79
14529
Quality Wine 6 Spirits Co. - Liquor
1,242.13
14530
State Capitol Credit Union - Payroll Deductions
250.00
14531
Wright County State Bank - FICA, Federal 6 Medicare W/H
671.87
14532
PERA - Payroll Deductions
194.21
14533
Dahlheimer Disc. Co. - Beer 6 supplies
24,337.41
14534
Coast to Coast - Supplies
14.97
14535
Ron's Ice Co. - Ice
730.15
14536
Twin Cities Flag Source - Flag repairs
56.80
14537
Thorpe Dist. Co. - Beer
18,436.35
14538
Olson 6 Sons Electric - Repairs of equipment
125.62
14539
Viking Coca-Cola - Pop
594.25
14540
Day Dist. Co. - Misc. supplies
763.36
14541
Jude Candy 6 Tobacco - Misc. supplies
530.02
14542
Bernick's Pepsi Cola - Pop
447.75
14543
Seven-up Bottling Co. - Pop
152.50
14544
Monticello Printing - Printing supplies
36.00
14545
Kolles Sanitation - Garbage contract
141.00
14546
Monticello Times - Advertising
114.30
14547
Dick Beverage Co. - Beer
2,334.32
14548
Grosslein Beverage Inc. - Beer
16,263.20
14549
Bridgewater Telephone Co. - Phone Charges
72.80
14550
Liefert Trucking Co. - Freight Charges
587.56
14551
Foster Franzen Agency - Insurance premium
875.38
14552
NSP - Utilities
840.30
14553
K.MOM Radio - Advertising
150.00
14554
Johnson Brothers - Liquor
1,765.41
14555
Maus Foods - Supplies
32.08
14556
Shamrock ice Co. - Supplies
64.20
14557
MN. Bar Supply - Supplies
184.79
14558
Midwest Gas Co. - Utilities
7.98
14559
Griggs. Cooper 6 Co. - Liquor
2,582.20
14560
PERA - Insurance premium
9.00
14561
Ed Phillips 6 Sons Co. - Liquor
1,60L.66
14562
State Capitol Credit Union - Payroll deductions
250.00
14563
Griggs, Cooper 6 Co. - Liquor
2,742.84
14564
Ed Phillips 6 Sons Co. - Liquor
2,195.94
14565
Johnson Brothers Wholesale Co. - Liquor
1,940.58
14566
Quality Wine 6 Spirits Co. - Liquor
2,222.92
14567
Liefert Trucking - Freight Charges
86.70
14568
Principal Mutual Life Ins. Co. - Insurance premiums
728.18
14569
Commfssionsr of Revenue - Payroll taxes
251.78
14570
Wright County State Bank - FICA, Federal 6 Medicare W/H
601.95
14571
PERA - Payroll Deductions
195.33
14572
Eagle Wine Co. - Wine
47.97
14573
Gruys, Johnson a Associates - Computer charguu 6 1988 Aud1L chats-
2,:10.40
14574
Payroll for June
3.770.97
TOTAL. DISBURSEMENTS FOR JULY
106,161.54