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City Council Minutes 11-27-1989MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 27, 1989 - 7:00 p.m. Members Present: Fran Fair, Warren Sinith, Ken Maus, Shirley Anderson, Dan Blonigen Members Absent: None 2. Approval of minutes. Warren Smith requested that itein #7 of the ininutes be amended to include the following sentence: Brad Fyle agreed that both lots would be used to accoi[unodate the proposed tri-plex. Motion was made by Fran Fair, seconded by Shirley Anderson, to approve the November 13, 1989, ineeting ininutes as amended. Motion carried unanimously. 3. Citizens coimnents, petitions, requests and complaints. None forthcoming. 4. Consideration of accepting park dedication fee - West Prairie Partners subdivision plat. Administrator Wolfsteller explained that the City's subdivision ordinance specifies that cash contributions made in lieu of land dedication for park purposes inay be determined by an appraisal of the property establishing the inarket value prior to any improvements. The developer is responsible for submitting an appraisal; and if the Council so elects, it can order an additional appraisal of its own. Wolfsteller went on to outline the formula that Mr. Metcalf used in establishing a proposed market value of $17,000 per acre. Wolfsteller explained that Mr. Metcalf based the value of the 2-1/2 acre parcel by subtracting the value of the two lots of the former Assembly of God Church property to arrive at a value of $77,000 for the Assembly of God Church, which was traded for the Baptist Church property. They also deducted the existing home that was sold for $60,000 leaving what they feel is the market value of the 2-1/2 acre parcel at $17,000. Wolfsteller suggested that Council could accept this formula and establish a park dedication fee at one-tenth the value of the raw land or $1,700, or Council could ask for a separate appraisal and, therefore, get a third party opinion regarding the value of this property. Dan Blonigen noted that on general principal we should be willing to seek an appraisal. Even though the cost of the appraisal is high relative to the park dedication fee, it is important that the park dedication fee reflect the true inarket value of the property. Blonigen went on to say that if you don't hold the line on the sinall items, they will come back to haunt you later. Shirley Anderson agreed that getting an appraisal in this situation is appropriate. Council Minutes - 11/27/89 Ken Maus noted that the figures that Metcalf and Larson provided the City in establishing their view of the value of the property are not arbitrary figures, and they reflect actual costs. Maus went on to note that this is a small item and is an example of the City just being difficult. Warren Smith agreed that by requiring an appraisal, the City is making a mountain out of a molehill. Rick Wolfsteller noted that there have been other situations where the City has not demanded an appraisal for purposes of establishing a park dedication fee. The only reason why an appraisal is suggested at this time is because of the somewhat complicated manner in which the market value of the property was established. Motion was made by Dan Blonigen and seconded by Shirley Anderson to seek an appraisal from an appraiser that is mutually agreed upon by the City and the developer for purposes of establishing a park dedication fee for the Prairie West Subdivision. During discussion, Ken Maus and Warren Smith both noted that requiring the appraisal is a waste of time and money and coimnon sense says accept the deal. Voting in favor: Fran Fair, Shirley Anderson, Dan Blonigen. Opposed: Ken Maus, Warren Smith. 5. Consideration of City participation in financing a portion of the Evergreens Subdivision development cost via the assessment process. Ken Maus reviewed the history behind the City's current policy of encouraging private developers to finance the development of private property for the purpose of developing residential lots. Maus noted that this policy may have resulted in part from recoimnendations made by the City's bond counsel. According to Maus, bond counsel was concerned that the City's bond rating might suffer if the City's debt became excessive due to financing of public improvement projects. Maus opened up the discussion to Council asking for input as to what extent the City should change its existing policy regarding financing of public improvements. Dan Blonigen noted that the risk associated with development should be borne by the developer and not by the City. Assistant Administrator O'Neill reported that the cities of Elk River and Buffalo both require a letter of credit in an amount equal to the cost of the public improvements. Once the public projects are completed, the cost of the improvements are assessed against the properties. As properties are sold and assessments paid, the letter of credit supplied by the developer is reduced in an amount equal to the sum of the assessment payments. This financing technique protects the City 100%, as the City can draw on the letter of credit if assessment payments are not made by the developer. O'Neill went on to note that all public improvements in Maple Grove are completed by the City for the purposes of assuring quality control. In addition, Maple Grove requires that 600 of the cost for the improvements are provided up front. The City then assesses the remaining 40% against the improved property. E Council Minutes - 11/27/89 At this point, a general discussion of the Evergreens subdivision ensued. John Simola explained that the Kjellberg East Mobile Home Park is utilizing a pond system that is too small, and the land area available is not sufficient to handle a properly sized pond. The potential ground water pollution problem created by this situation inight only be remedied if the City and Kjellberg work cooperatively toward a resolution. Ken Maus noted that the City gets into trouble when we run sewer and water trunk lines long distances. John Simola responded by saying that the lateral extension of sewer and water in this case is not a major trunk line but rather is a lateral extension from the existing systern and, therefore, is less costly than a trunk line. Rick Wolf steller explained that one of the main advantages for the City completing the public improvements is that the City has control over the quality of the development, and we have greater assurance that there will be no long-term maintenance problems if the City installs the streets and utilities. Council discussed the need for the type of housing that will be created by the Kjellberg development. Fran Fair and Dan Blonigen asked "How bad do we need first time home buyer housing?" Ken Maus explained that the nature of this development to some degree is regulated by the restrictive covenants associated with the development. Restrictive covenants include language that regulates house color and includes garage and landscaping requirements. Administrator O'Neill noted that the development area includes three power lines and a natural gas line, which precludes the use of the property for higher value housing. In addition, the land is not prime agricultural land. It may be that this land might best be suited for the type of development proposed. Warren Sinith suggested that the City might want to participate in this project only because of the associated Kjellberg East Park sewer problem. After discussion, motion was made by Fran Fair and seconded by Dan Blonigen to approve City utilization of the assessment process in financing 40% of the Evergreens Subdivision development cost contingent on the following: a. Sewer and water services shall be extended completely through Phase I and Phase II with streets, curb, and gutter installed with Phase I. b. Kjellberg East Mobile Home Park must be connected to the City sewer service at the southerly most Phase II manhole. c. Enlargement of the mobile home park will be allowed only after the sewer extension is complete and operational and in compliance with City specifications. In addition, street improvements must be complete and storm sewer plans approved and in place. 3 Council Minutes - 11/27/89 d. The formula used in providing credit to the East Park area assessment per the original developer agreement would remain. The original developer agreement stated that the area assessment for the Kjellberg East Mobile Home Park would be reduced an amount equal to the cost of extending utilities from Dundas to the development. Since Kjellberg will be paying 60a of this cost, it was concluded that this credit could remain. e. The area assessment formula associated with Phase I development shall be consistent with the original developer agreement. Under the original developer agreement, the lots with Phase I and II would be charged an added $200 hookup fee for sewer and water, and all properties in this area would pay a $4 per quarter surcharge on their water bill. These funds will be used for the future extension of trunk sewer and water to the area when it is needed. f. Kjellberg shall be responsible for all costs associated with the lift station and piping necessary to provide sewer service to the mobile home park. Development of this facility will meet City requirements. Motion carried unanimously. 6. Consideration of final payment on Project 89-1, Marvin Elwood Road extension in the Meadows. John Simola explained that the City of Monticello contracted with Channel Construction to extend Marvin Elwood Road as part of the Meadows improvement project. The estimated cost of the contract was $10,582. Final construction cost of the project is $10,582. The City to date has paid all but $1,000 of this amount. The work has been completed on the extension of Marvin Elwood Road, work has been satisfactory, and the City staff recomends final payment to Channel Construction. Final payment will be in the amount of $1,000 and is pending receipt of the proper lien waivers and the State of Minnesota forms. After discussion, motion was made by Dan Blonigen and seconded by Shirley Anderson to make final payment to Channel Construction in the amount of $1,000 pending receipt of lien waivers and State of Minnesota forms. Motion carried unanimously. 7. Consideration of resolutions ordering preparation of assessment roll and setting a public hearing on adoption of assessment roll on Marvin Elwood Road extension. After discussion, motion was made by Fran Fair and seconded by Warren Smith to adopt a resolution ordering the preparation of the assessment roll and a resolution setting the public hearing for the first meeting in January 1990. Motion carried unanimously. SEE RESOLUTION 89-36 AND RESOLUTION 89-37. 4 Council Minutes - 11/27/89 8. Consideration of accepting the improvements associated with the Meadows 2nd Addition. Assistant Administrator O'Neill reported that the City Engineer and Public Works Director have indicated that the work necessary to develop the ten new lots has been successfully completed except for minor details, which should be completed prior to formal acceptance and final payment. After discussion, motion was made by Warren Smith and seconded by Fran Fair to accept the Meadows 2nd Addition improvement subject to the following conditions which must be completed within 30 days: a. As built drawings showing the actual locations, etc., of the public improvements to be submitted to the City Engineer along with a certification from the developer's engineer that all improvements have been installed per the specifications. b. The developer's engineer shall submit to the City a detailed grading plan of Lot 1, Block 1, which would outline a plan for draining this lot to the northern Burlington Northern right-of-way. c. An escrow amount of $250 shall be established for the purpose of providing funds necessary to fully seed the street boulevards. Seeding of street boulevards must be completed by September 1, 1990. d. The warranty bond shall name the City of Monticello as the third party beneficiary of the warranty. e. The developer shall pay $2,612, which equals the City expenses associated with inspecting the improvement. Please note that these expenses were higher than originally anticipated because the developer's contractor failed to properly notify the City of work being done which necessitated additional time to track the project and stay on top of the work as it occurred. f. Receipt of lien waivers and State forms. Motion carried unanimously. 9. Consideration of replacing electric motor for deep well turbine pump in well #1. John Simola noted that approximately three years ago when the 60 h.p. motor for well #1 failed, he replaced it with a 75 h.p. motor as recoicunended by OSM. It was expected that the 75 h.p. motor would be able to handle the higher head pressures expected when the new water reservoir went on line. Simola went on to explain that, unfortunately, the sizing of the pump and discharge pressures at low tank level do not allow the motor to perform at the proper capacity. Therefore, Sirnola recoimnended that the City replace the 75 h.p. motor with a 100 h.p. unit. Ken Maus and Dan Blonigen noted some frustration regarding this issue. Dan Blonigen stated that he is getting tired of the resizing of pumps, etc. John Simola concurred but stated the larger motor appeared to be the best solution to the current predicament. 5 Council Agenda - 11/27/89 John also stated he would suicunarize the water improvements in the next agenda. After discussion, motion was made by Fran Fair and seconded by Shirley Anderson to authorize the purchase and installation of a 100 h.p. across the line start motor using an electronic soft start or reduce voltage started at an estimated cost of $5,000. Motion carried unanimously. 10. Consideration of amendments to snow plow/removal policy and adoption of revised snow plowing and removal plan. John Simola reviewed the amendinents to the snow plow/removal policy and asked for coimnents from Council. Shirley Anderson requested that the policy be amended by removing references to specific organizations that will receive the benefit of snow removal services. It was suggested that City action to remove snow from in front of private businesses be limited to those areas where these businesses were built and established prior to development of parking lots where parking is vital to business. Snow removal limited to such areas along Highway 75 and where snow removal is necessary to protect public safety. During the discussion, a number of coments were made regarding the City's snow removal policy. Dan Blonigen noted that the City should charge people for snow removal if snow removal is not done in the downtown area. Ken Maus noted that it is important that the City define clear criteria in establishing which businesses or institutions receive the benefit of snow removal. Dan Kling, City Engineer, stated that in some of the comunities he works with the decision to haul away snow is based on safety. When it is determined that snow must be removed from an area that has insufficient capacity to store the snow, the cost to remove the snow is billed back to the benefiting property owners. Dan Blonigen agreed that the cost to remove the snow should be billed back to the benefiting property owners. He asked, "Why should a homeowner have to remove snow and provide snow storage area, while a businessman receives the benefit of having the City remove snow that he is unable to store?" Ken Maus suggested that geographic location and history dictates and that not all City benefits can be provided equally throughout the coimnunity. Ken Maus noted the problem associated with City removal of parking lot snow only after the streets have been plowed. Although this is a good policy in terms of keeping the streets clear, many of the businesses suffer when the lots remain snow covered for longer periods of time. Maus suggested that before investing in additional manpower or additional equipment, the City should seriously investigate the possibility of having a private contractor remove snow from City parking lots. R Council Minutes - 11/27/89 John Simola explained that the City has hired one new person in the last ten years and that the City has the saine basic equipment that has been updated only. This has allowed the City to operate its snow removal process efficiently. He did note that it's not likely that we could speed up the time it takes to plow the streets at this time. Shirley Anderson expressed her view that the snow plowing service in Monticello compares very favorably to the service she has seen in other communities. After discussion, motion was made by Warren Sinith and seconded by Fran Fair to adopt the amended snow removal policy with the following changes: References to business and institution naines should be dropped froin the downtown area section of the policy on specific snow removal (hauling) areas. The policy should be amended to read as follows: And any other property with inadequate off-street parking along the four lane portion of County Road 75 when snow in the parking lane causes a public safety concern as determined by the Public Works Director and upon approval of the City Administrator. Motion passed unanimously. 11. Consideration of bills for the month of November. After discussion, inotion was inade by Warren Sinith and seconded by Fran Fair to approve the bills for the inonth of November as submitted. Motion carried unanimously. Other hatters. Ken Maus suggested that the City staff consider preparing quarterly reports for Council review. No decision was inade regarding this matter. Assistant Administrator O'Neill requested that Council schedule a special ineeting for the purpose of discussing computer system related issues. A special ineeting of the City Council was scheduled for 2:00 p.m., Friday, December 1, 1989. There being no further discussion, ineeting adjourned. Jeff O'Neill Assistant Administrator 7