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City Council Agenda Packet 07-30-1979 Special . . AGENDA SPECIAL MEETING - MONTICELLO CITY COUNCIL JUly 30, 1979 - 7:30 P.M. Mayor: Arve Grimsmo Councilmembers: Fran Fair, Ken Maus, Dan Blonigen, Phil White. Meeting to be taped. 1. Review of Industrial Cost Recovery and User Charges on Monticello's Wastewater Treatment Plant. 2. Presentation of a Film of a Community's Investment in its Waste- Water Treatment Plant. ~1 ~ 3. 4IIt 4. Review of Library Situation. Presentation by OSM of preliminary Figures on 1977-3 Street Improvement project. 4IIt . . . AGENDA SUPPLEMENT 1. Review of Industrial Cost Recovery and User Charges on Monticello's Wastewater Treatment Plant. Previously, the City Council has set up this special meeting to review the industrial cost recovery charge aspects of the City's current Step III application for updating its wastewater treatment plant with Wrightco Products, Inc. Jim Ridgeway, President of Wrightco Products, Inc., has been notified of this meeting and will be present Monday evening. Every member of the Council should have the Blue Report from OSM entitled "Industrial Cost Recovery and User Charge Systems for the City of Monticello, Minnesota". This report has previously also been sent to Wrightco Products for review. Also, enclosed please find a letter from John Badalich dated July 24, 1979, reviewing the industrial cost recovery charge and user charge specifically as it would apply to Wrightco Products. It should be noted that based on sa~ling previously done at Wrightco Products, the annual payment charge~ble to Wrightco Products would vary from $6,046 to $10,385. This is illustrated on Table 8. Additionally, according to our engineer's estimate on future increased flow for Wrightco Products during the life of: the City's updated treatment plant, the average annual payment would be '$23,592. In other words, Wrightco Products annual industrial cost reco~ery charge would be in the first range indicated if the present conditions remain essentially the same, but based on our engineer's estimates of increased volume but the same characteristics of their effluent, the annual payment could amount to $23,592. Obviously, there could be the possibility of Wrightco Products expanding their plant and increasing their volume, but improving the quality of effleunt too, but the table was presented for illustration purposes. In addition to the industrial cost recovery charge, Wrightco Products would be charged the user charge similar to every user of the sewer system in Monticello. According to the estimates of our engineer, this industrial user charge would amount to $32,039.90 (it should be noted that in the report there appears to be a calculation here which shows this figure to be $25,021.95). Utilizing the figures based on the sampling of Wrightco products, this could range in the area of $16,386.70 to $29,800.62. Our engineer's estimate again was based on increased flows and that's the reason why the figure is larger than the actual samples taken. . . . SPECIAL COUNCIL MTG. - 7/30/79 As part of the grant for updating this Wastewater Treatment Plant, the City of Monticello must receive a letter of intent from Wrightco Products as indicated on Page 4 of Mr. Badalich's letter. POSSIBLE ACTION: Review of Industrial Cost Recovery Charge and User Charge with Wrightco Products and request for letter of intent. REFERENCES: Blue industrial cost recovery and user charge system report previously sent out, and July 24, 1979 letter from John Badalich. 2. Presentation of a Film of a Community's Investment in its Wastewater Treatment Plant. John Simola, Public Works Director, will review the film entitled "An Investment to Protect", which is a film about the City of Hinsdale, Illinois wastewater treatment plant. The film itself is approximately 13 minutes, bring your own popcorn! POSSIBLE ACTION: No action is necessary, this will be just a review of the film. 3. Review of Library situation. As you are probably aware, the Monticello School District has approved the construction of a new office building on the block south of the current site of Oakwood School, and also the sell the Oakwood block where the School itself stands. Additionally, they indicated that they would like to cooperate with the City on possibly building a library on the same building with their administrative offices. It should be noted that a letter has been received on April 5, 1979 from the Assistant Attorney General's Office that was sent to the School District, indicating the following quotations: "Electors of the School District of Monticello must be given an opportunity to vote on the question of abandonment if one is to take place, and this has to be approved by 2/3's majority." Abandonment being - abandonment of the library. As a result, it would appear that some sort of referendum or clarification of that matter would have to take place before the City of Monticello would be able to take over the library. Additionally, as you are aware, there is also the question of the Memorial Fund that still has to be resolved. Additionally, I have talked to Dave Douglas and he indicated that the tax levy for the past two years for the Great River Regional Library System has been .67 mills. This would constitute approximately $22,000 for the City of Monticello. It would appear that according to the language in Minnesota Statutes 375.335 cities, in contracting counties for a regional library, may join in the regional library system by becoming parties to the agreement which established the regional library through actions of the library board. It would almost - 2 - . . . SPECIAL COUNCIL MTG. - 7/30/79 appear from this proV1s10n that a city would also have the right to divest itself of the regional library system if it so desired. This is not to suggest that the City of Monticello should divest itself from the Great River Regional Library System, but is only pointing out that fact that the City could do so if it wanted to. It would seem that this would be a serious question the City of Monticello might possibly be better off under the present regional library system, but it is presented for informa- tion purposes. Looking down the road somewhat, provided that the problems involving the referendum and memorial fund can be worked out and it is eventually agreed whereupon the City of Monticello will take over the responsibilities of the library, it would seem that this issue could be brought to a referendum in the City of Monticello. By that, I mean that the City of Monticello would have to borrow "x" amount of dollars to construct a new library, and this issue could be put on a referendum since the City of Monticello would most likely borrow money to do so. In effect, the people of Monti- cello would get the opportunity to vote whether they wanted the library system and pay for such a system through a referendum. Purpose of this entire matter being brought to the City Council is primarily for review, and also an advance preparation for the City's special meeting yet to be arranged in August with the School District concerning this issue. < ~'l ~~~~ \ ~\ POSSIBLE ACTION: No specific action is necessary. 4. Presentation by OSM of Preliminary Figures on 1977-3 Street Improvement project. John Badalich, of OSM, will present preliminary figures on the Street Improvement project, and I am certain there will be some questions Mr. Badalich will be asking the Council in order to make some decisions on the method of assessments. POSSIBLE ACTION: It would seem to me that once the Council has reviewed the preliminary figures with any revisions, it should direct the engineer to prepare the entire assessment roll on a preliminary basis for presentation to the City Council and the City Council could review the pre- liminary assessment rolls and call for the public hearing at a later date. - 3 -