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City Council Minutes 10-23-1989MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, October 23, 1989 - 7:00 p.m. Members Present: Fran Fair, Warren Smith, Ken Maus, Shirley Anderson, Dan Blonigen Members Absent: None 2. Approval of minutes. Motion was made by Shirley Anderson, seconded by Warren Smith to approve the meeting minutes of October 10, 1989, as presented. Motion carried unanimously. 3. Citizens coimnents/petitions, requests, and complaints. Brad and Cindy Fyle requested that Council consider granting them a conditional use permit that would allow them to operate a tri-plex in an R-2 zone. After discussion, it was determined that the matter should be referred to the Planning Comnission for review via the conditional use permitting process. Council reviewed a petition submitted by property owners near the Plaza Car Wash along South Highway 25 requesting the installation of a street light at the intersection of their private access approach to Highway 25. Councilmember Blonigen suggested that the City develop a policy regarding street light installation and that consideration of this matter should wait until the general City policy is adopted. Motion made by Dan Blonigen to table issue pending outcome of further study. Motion seconded by Shirley Anderson. Motion carried unanimously. Council was informed that the Evergreens subdivision has not proceeded because the developer had been unable to obtain necessary financing. The developer requests that the City consider installing a portion or all of the necessary improvements in assessing the costs back to the developer. Dan Blonigen noted that this method of financing the development of residential lots has backfired in the past. Mayor Maus agreed that the City should not get involved in this project without considerable money from the developer provided up front, thereby reducing the per lot assessment which would mitigate the financial risk to the City. After discussion, motion was made by Shirley Anderson and seconded by Dan Blonigen to table this matter pending development of a specific proposal for using the assessment process to assist the development of the Evergreen subdivision. Motion carried unanimously. 4. Public Hearing - Consideration of sanitary sewer extension on Oakwood s Drive between Chelsea Road and Dundas Road. t Mayor Maus opened the public hearing. John Simola explained that the project was initiated at an earlier Council ineeting at the request of Lee Parks, who is the owner of the old auction house on the west side of Oakwood Drive. Simola recomended that upon favorable support from those 1 Council Minutes - 10/23/89 benefiting property owners, the City Council could authorize the City Engineer to prepare plans and specifications but withhold advertisement for bids until the project can be incorporated with another utility project as an alternative to achieve the lowest possible cost. If, however, an urgent need is present for extension of the sewer utilities, then Council inay wish to go ahead with the project and not incorporate it with another City project. This would result in a slightly higher project cost. Members of the Council noted that one of the benefiting property owners (Stuart Hoglund) was not present for the public hearing and were, therefore, concerned that this individual did not support this project. Fran Fair noted that Council should get Mr. Hoglund's input prior to making a decision on this matter. After discussion, motion made by Shirley Anderson and seconded by Dan Blonigen to continue the public hearing and strive to get input from Stuart Hoglund regarding his level of support for the sanitary sewer extension on Oakwood Drive between Chelsea Road and Dundas Road. Motion carried unanimously. 5. Consideration of ordinance amendment to establish garbage/refuse service charge in accordance with recycling plan. John Simola explained that the ordinance amendment allows the City to follow its recycling plan and allows the City full flexibility in modifying or changing either the rates or the plan without having to modify the ordinance. Simola went on to note that the anti-scavaging portion of the ordinance is necessary to declare legal ownership of the recyclables once they are placed on the curb. The value of these recyclables offsets the recycling cost and once set at the curbside becomes the property of the City. Once they are picked up they become the property of our contractor. This has not been a significant problem for the City of Monticello, but it has occurred and Sheriff's deputies have been stymied by no appropriate place in the ordinance under which they could take action. Typically, the new ordinance provides for first offense as a petty misdemeanor and repeated offenses as a misdemeanor. After discussion, motion made by Fran Fair and seconded by Warren Smith to adopt the ordinance amendment and to adopt the garbage processing fee as presented. Motion carried unanimously. SEE ORDINANCE AMENDMENT #182. 6. Consideration of purchase of audio video equipment. Assistant Administrator O'Neill requested authorization to purchase a variety of audio video equipment utilized in the Council and Planning Comission decision making process. O'Neill outlined the quotes received from Aubols T.V. & Appliance. 7. 0 Council Minutes - 10/23/89 After discussion, motion made by Fran Fair and seconded by Warren Smith to purchase a VCR, caincorder, equipment table, and inike stand from Flicker's T.V. & Appliance. Staff to purchase tape recorder from Flicker's T.V. & Appliance contingent on additional research. Motion carried unanimously. Consideration of authorizing purchase of a telephone system for City Hall and the Maintenance Building. Administrator Wolfsteller explained that the major purpose for considering purchasing our telephone system is that currently the City is spending approximately $100 per month to lease equipment and telephones within City Hall. By owning our own system, the City should be able to save approximately this amount of money per month and apply it toward the purchase of our new state of the art electronic telephone system. In addition, many features are available with new electronic phone systems that could benefit City Hall, including options to allow off-site locations such as the maintenance building the ability to use our metro phone line and thus save some labor and add efficiency by not having the public works employees come to City Hall to use the phone. It also appears that with the new phone system we may be able to eliminate one or two telephone lines at City Hall by being able to combine phone numbers and uses and save additional monthly charges for these lines of approximately $40 per month per line. The potential $140 savings per month would be sufficient to cover the cost of purchasing our own equipment if the new system costs $7,500 and is amortized over a five year life. It is expected that a new phone system would last longer than 5 years when one considers that our present phone system has been in City Hall for 11 years already. Administrator Wolfsteller requested that Council authorize staff to acquire systematic cost not to exceed $7,500 to allow installation of an additional metro line estimated at a cost of $175 per month. Mayor Maus noted that the features included in the state of the art phone systems can be utilized to achieve the maximum capacity of the metro phone line, thereby forestalling the need to install a second metro phone line. Warren Smith supported continued research on this matter but suggested that Council decision regarding purchase of this equipment be delayed until staff has prepared its final recomendation on which system to purchase. It was the consensus of Council to table this matter pending development of a final staff recoiNnendation on which system will suit the City's needs in the most cost efficient manner. Consideration of abatement of dangerous buildings. Building Inspector Gary Anderson noted that there are two residential structures in the city that are vacant and in an extreme state of disrepair. 3 Council Minutes - 10/23/89 One property is located on Elin Street across froin the Legion Club. The other structure is located near the site of the proposed addition to the Monticello Mall. Both properties have windows and doors that are broken out and are, of course, accessible to children and rodents. In light of the recent inurder in the city of Monticello and the inanhunt that followed, the Wright County Sheriff's Department recommended that at a minimum the windows and doors should be boarded up. Gary Anderson noted, however, that the structures are beyond repair. It, therefore, may make sense to demolish the blighted structures. Administrator Wolfsteller noted that the City staff will work with the property owners cooperatively in an effort to get the owners to remove the structures. Wolfsteller asked Council if staff should take action if the property owners are unwilling to demolish the structures. After discussion, motion made by Shirley Anderson and seconded by Dan Blonigen to require that the subject structures be closed by boarding up the windows and doors; this to be done within the next two weeks. Furthermore, said structures should be removed by December 1, 1989. Motion carried unanimously. 9. Consideration of ordering four booster puinp control valves for the water reservoir. John Simola explained that the existing check valves in the booster pumps at the reservoir on Chelsea Road open immediately upon pump start and slain closed upon pump stop. This causes extreme water hammer and pressure fluctuation in and about the reservoir, which ultimately could affect the pressure throughout the city, as well as cause damage. Simola noted that the City needs to replace these valves with electronically controlled, hydraulically operated slow opening and slow closing check valves. In preparation for this purchase, the City requested that OSM include in the electronic control package for the water system mechanisms to operate these four new valves at the reservoir. Simola noted that we have obtained a quote for these units for costs of $2,441 per valve, for a total cost of $9,764, plus freight. After discussion, inotion made by Dan Blonigen, seconded by Warren Smith, to authorize purchase of the four Claval check valves from Northwestern Power and Equipment Company in St. Paul at a cost of $9,764, plus freight. Motion carried unanimously. 10. Consideration of approving amendment to labor agreement for additional groundskeeper maintenance position. Administrator Wolfsteller explained that during May of 1988, Tom Schumacher, the City's part-time permanent groundskeeper/building maintenance person, filed an application to be part of the union membership for the Local 49. Wolfsteller noted that although the City staff could not see benefit for this position being added to the labor agreement, the City has no choice in the matter since the Bureau of Mediation Services has determined that this position can be part of 4 Council Minutes - 10/23/89 our present labor agreement. Ironically, even if Mr. Shumacher now did not want to join the union, it is too late and the Local 49 would have to agree to eliminate this position from the bargaining unit, which would never happen. The labor agreement proposed is not detrimental to the City at this point and actually results in a cost savings to the City even with the addition of extra benefits such as the vacation and holidays. From staff standpoint, there does not appear to be any benefit to not approving the labor agreement and returning to the negotiating table, as it does not appear that we could end up with a better contract than what is being proposed. Ken Maus noted the need to develop a non-union workers policy which would allow employees to be under one personnel policy umbrella. Dan Blonigen noted that, in his view, the public works employees now part of the union would be better off if the union had not been established in Monticello. After discussion, motion made by Fran Fair and seconded by Warren Smith to approve the proposed amendment to the labor agreement including the groundskeeper/maintenance position as part of the union. Motion carried unanimously. 11. Review of engineering data related to the recent overlay project in Oakwood Industrial Park. Administrator Wolfsteller explained that at the recent public hearing concerning the assessment procedures used in the Oakwood Industrial Park overlay project, some property owners were contending that the City's intent of assessing half of the overlay was inappropriate because the project was initially designed as a 9 ton road, and that it was an engineering problem and should not have been assessed at all. In response to this position, City Engineer John Badalich prepared a letter which outlines the events that took place in 1977 and confirms that the road design originally placed within the Oakwood Industrial Park was meant to be a 7 ton design and not a 9 ton design. The original feasibility study for the Oakwood Industrial Park proposed sewer and water improvements along with storin sewer improvements and a permanent 9 ton road design with curb and gutter. Due to the high cost of the curb and gutter and storm sewer project, the bituminous paving was originally eliminated from the project and was intended to only have a gravel road along Chelsea Road and Thomas Park Drive. After the utility work was bid, the Council later authorized a change order which did include paving Chelsea Road to the reservoir site from County Road 117 and a portion of Thomas Park Drive. This change order was designed as a 7 ton project, as was the balance of any street construction done within the Oakwood Industrial Park. Wolfsteller went on to state that although this inforination is now presented after the assessment hearing, the Council did request that this information be researched and provided for review. Although the assessment roll has been adopted for the project, the Council always has the option to hold a reassessinent hearing should it find new information or costs that should have been assessed. Wolfsteller explained that although Council may have felt that they were treating Mississippi Drive 5 Council Minutes - 10/23/89 residents equal with Oakwood Industrial Park in that both received a 20% assessinent for their work, it actually turns out now that the Oakwood properties are paying $1.75 per front foot, whereas Mississippi Drive residents were charged $4.91 per foot. As you may recall, in discussing how the Mississippi Drive project should have been assessed, it was decided that the under drain system and the major street construction that was necessary should have been placed on ad valorem taxes and that we can now only charge Mississippi Drive for typical overlay costs. When this cost turned out to be less than 20% of the project cost, it was determined that the assessment had to be at least 200. Basically, by lowering the Oakwood Industrial Park assessment from 50o to 200, Council in effect has charged for the Industrial Park overlay at less than half of what the overlay was charged to the Mississippi Drive residents. Based on the information supplied by John Badalich, there is even rationale for charging 1000 of the overlay in Oakwood Industrial Park, as they technically never paid for a 9 ton road and this could have been considered an improvement rather than an overlay. Finally, Wolfsteller noted that staff is a little uncomfortable with the policy used in assessing the overlay for the Industrial Park and that Council will be looking at an overall assessment policy in the near future. In light of this, we wanted to make Council aware of the current inequity that resulted from lowering the Oakwood assessment to 20o and that they now are paying quite a bit less than Mississippi Drive residents. Dan Blonigen noted that the original road was designed for 7 ton capacity and that it was his recollection that when the project was undertaken, the affected property owners wanted the original 9 ton road reduced to the 7 ton. Fran Fair asked Dan Blonigen if he was sure that he had his facts straight. Dan Blonigen said "Yes.". Warren Smith asked "Why do the streets strengths vary in that area?" OSM Engineer, Dan Kling, noted that the street strength depends on the thickness of the asphalt combined with the quality of the road base. Both components of a street may vary throughout the length of the street. In this situation, portions of the roadway exceed the 7 ton specification. Dan Blonigen noted that there is a big difference between the downtown property owners and the industrial owners in terms of direct benefit created by improvement projects. It was his view that road improvements provide a greater direct benefit to industrial users than coimnercial users and, therefore, roads unproved in the industrial areas should be financed to a greater degree by the property owners. Blonigen reiterated that he is opposed to the previously adopted assessment roll which called for a 20/80 split of the industrial park overlay. Warren Smith noted that he would like to see efforts made to establish a policy for street assessments. 0 Council Minutes - 10/23/89 After discussion, motion made by Dan Blonigen and seconded by Shirley Anderson to call for a reassessment hearing to correct the assessment formula for Oakwood Industrial Park street construction and to return to the 50/50 split of project costs as originally agreed upon at the outset of the project. Voting in favor: Dan Blonigen, Shirley Anderson, Ken Maus. Opposed: Warren Smith, Fran Fair. SEE RESOLUTION 89-33. 12. Consideration of assigning costs to study feasibility of extending public improvements to the Marvin Road Highland Heights area and consider authorizing study contingent on financial contribution by developer. Assistant Administrator O'Neill explained that George Rivera requested that City Council direct the City Engineer to complete a feasibility study which would outline the costs of providing public service to the properties located along Marvin Road. O'Neill asked Council to review the feasibility study cost estimate and determine what portion of the cost should be paid by Rivera and what portion should be paid by the City based on relative benefit of any improvements in the area. O'Neill reported that staff recommends that a feasibility study be conducted for costs not to exceed $3,000 contingent on the developer paying 75% of initial cost, or $2,250. After discussion, motion made by Fran Fair and seconded by Shirley Anderson to direct OSM to complete a service area update and utility feasibility study for the subject area at a cost not to exceed $3,000 contingent on the developer paying 750 of initial costs, or $2,250. Motion carried unanimously. 13. Consideration of bills for the month of October. Motion made by Shirley Anderson and seconded by Dan Blonigen to pay the bills as presented. Motion carried unanimously. 14. Other matters. Assistant Administrator O'Neill informed Council that the City has been invited to participate in the Tram 250 Ride Across Minnesota. The Multiple Sclerosis Society is sponsoring the event in conjunction with the Celebrate Minnesota Program. It is expected that 1,500 bike riders from the Upper Midwest will participate in the event. Monticello participation to consist of providing food, entertainment, and overnight facilities for the cyclists. After discussion, motion made by Shirley Anderson and seconded by Warren Smith to participate in the Tram 250 Ride Across Minnesota and to direct staff to work with the Chamber of Commerce on this matter. Motion carried unanimously. Assistant Administrator O'Neill requested that Council adopt the official name of the transit system that will begin December 1, 1989. The name suggested by the Monticello Transportation Advisory Committee is "Monticello Heartland Express." Council adopted this naive by consensus. 7 Council Minutes - 10/23/89 Administrator Wolfsteller requested that Council establish a date for a budget workshop and public hearing. As a result of the discussion, the budget workshop was scheduled for 7:00 p.m., December 4, with the public hearing on the budget scheduled for 8:00 p.m., December 4. There being no further discussion, ineeting was adjourned. Jeff O'Neill Assistant Administrator ,-1