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City Council Minutes 10-27-1986MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, October 27, 1986 - 7:30 p.m. Members Present: Arve Grimsmo, Fran Fair, Bill Fair, Jack Maxwell, Dan Blonigen. Members Absent: None. 2. Approval of Minutes. Motion was made by Bill Fair, seconded by Maxwell, and unanimously carried to approve the minutes of the regular meeting held October 14, 1986. 3. Citizens Comments. Mr. John Sandberg appeared before the Council to clarify some cost information that was presented at the League of Women Voters candidate forum. Mr. Sandberg noted that it was stated that the City Planner had been paid approximately $22,000-$24,000 for the recently completed Orderly Annexation Area Study, when the actual costs were approximately $27,000.00. Administrator Eidem confirmed that the actual cost paid to the City Planner was approximately $27,000.00 and that an additional $6,000.00 in expense has been incurred since the study was completed for additional costs incurred in implementing the annexation procedures. 4a. Consideration of Guaranteeing the Provision of Sanitary Sewer and Municipal Water to the Middle School Site. As part of the School District's plans to purchase 80 acres of land from Mr. Jim Boyle for the new middle school site, a purchase agreement requires that Mr. Boyle extend sanitary sewer and complete Chelsea Road extension from Oakwood Industrial Park to County Road 118 to service the parcel. Mr. Boyle's engineer, Bill Block, prepared plans and specifications for extending the sewer and constructing the road. Public Works Director, John Simola, along with the City's Consulting Engineers, John Badalich and Chuck Lepak, met with Mr. Block and the apparent low bidder on the construction project, L & G Rehbein, Inc., to review the proposed plans and specifications and the cost involved. The construction cost for the road improvements, along with the needed water and sewer improvements was estimated to cost $350,000.00, which includes all City anticipated administrative and legal cost. It was noted that the $350,000.00 estimate would be required to be placed in an escrow account held by the City for payment of the construction cost before any work would commence. Councilmember Fran Fair questioned the outcome of the recently adopted joint resolution request from the Township to allow for the immediate annexation of the school property and an additional 150 plus acres Council Minutes - 10/27/86 that directly relates to this planned improvement. Ms. Fair noted that if the Township does not go along with the joint resolution requesting immediate annexation of the school property, the City should enter into a separate agreement with the school indicating that sewer and water services would be supplied by the City for the school property, thus eliminating the School District from involvement in the annexation procedures. The City could then go on with its original intent to petition for annexation of the entire OAA as previously planned. Mayor Grimsmo noted that the Township delayed action until their next meeting in November regarding the joint resolution for immediate annexation. Councilman Blonigen indicated his opposition to the City establishing a policy whereby it would serve properties outside of the City limits with sewer and water, as he felt it will cause problems in the future and set a precedent requiring the City to supply utilities. Mr. Blonigen's main reason was that he felt properties outside the City would not be paying their fair share in keeping the utility systems upgraded since they are not part of the City tax base. After further discussion, motion was made by Fran Fair to enter into an agreement with the School District agreeing to supply sewer and water services to the school site regardless of the annexation question. This motion died for a lack of second. Mr. John Sandberg questioned the Council on how the City could be discussing the question of servicing the school with utilities, as it was not an agenda item. Administrator Eidem noted that the Council could, by motion, amend the agenda item to include an additional item if it so desired. As a result, motion was made by Fran Fair, seconded by Bill Fair, to amend the agenda items to add an additional item concerning the adoption of an agreement to serve the school property with sewer and water utilities. Voting in favor were Fran Fair, Bill Fair, Arve Grimsmo. Opposed: Jack Maxwell and Dan Blonigen. Having established the item as an additional agenda item for the meeting, Mr. Blonigen then noted that the proposed sewer and water policy as presented had not been discussed and again noted his opposition to establishing a policy that would possibly require the City to serve properties located outside of the City limits. Administrator Eidem noted that if it was the wish of the Council not to establish a sewer and water service policy, a two-party agreement between the City and the School only could be pursued that would spell out the exact cost involved, including hookup charges and user fees. It was noted that portions of the sewer and water policy regarding billing charges for user fees at 114 times the normal rates could be applied to an individual agreement between the School and the City, and that an agreement would end when annexation does occur. This would eliminate the establishment of a policy that may affect other property owners outside of the city limits. -2- Council Minutes - 10/27/86 Councilmember Maxwell expressed concerns mainly on the proposed extension of utilities to the school site and wanted confirmation that the entire cost of the project would be paid for by the developer and/or the School without City obligation. Again it was noted by the staff that the project would not commence until the entire amount of funds was placed in an escrow account. Again, John Sandberg requested that the Council delay action on any type of an agreement to service the School property with sewer and water to allow for further review of the sewer and water policy and/or an agreement. After further reviews of the subject, motion was made by Bill Fair, seconded by Fran Fair, to enter into a separate agreement between the City and the School agreeing to allow the proposed middle school site to hook up to City sewer and water at normal hookup rates plus City cost with the usage rates to be 114 times normal rates. Voting in favor was Bill Fair, Fran Fair, Arve Grimsmo. Opposed: Jack Maxwell, Dan Blonigen. 4b. Consideration of Approving Construction Plans and Specifications for the Extension of Sanitary Sewer and Chelsea Road from Oakwood Industrial Park to County Road 118. In regards to the plans and specifications presented for the extension of utilities to the school site, City Engineer, John Badalich, noted that in the future, additional hydrants will have to be added to the water main existing through Boyle's property at a time when future development occurs. As a result, motion was made by Fran Fair, seconded by Maxwell, to approve the plans and specifications as presented for extension of sanitary sewer and construction of Chelsea Road. Voting in favor was Arve Grimsmo, Fran Fair, Bill Fair, Jack Maxwell. Opposed: Dan Blonigen. 5. Consideration of Change Order No. 5 for 86-1 Project. As part of the 86-1 Interceptor Sewer Project, General Contractor, L & G Rehbein, was responsible for initial testing and evaluation of the 10 -inch force main located on Elm, Third, and Chestnut Streets, and the 6 -inch force main located near Ruff Auto Parts on Elm Street. Because the force mains failed their initial testing, additional work performed by the contractor after repairs were made amounted to $6,218.38, which was not part of the original contract. As a result, a motion was made by Maxwell, seconded by Bill Fair, and unanimously carried to approve Change Order No. 5 to L & G Rehbein in the amount of $6,218.38. 6. Consideration of Adopting a Joint Powers Agreement to Enter an Airport Commission. The Monticello Industrial Development Committee requested that the -3- Council Minutes - 10/27/86 City look into the possibility of expanding and/or construction of a new airport in the area. An ad hoc committee has previously been formed comprised of representatives from Big Lake and Monticello with an invitation extended to the City of Becker to participate. A joint powers agreement has now been prepared which would establish a joint airport commission for the express purpose of conducting the feasibility study and preliminary site selection for an airport. The members would consist of the Cities of Big Lake and Monticello, and an invitation would still be made for the City of Becker to join the commission. Motion was made by Maxwell, seconded by Blonigen, and unanimously carried to enter into a joint powers agreement for the purpose of conducting an airport study with surrounding jurisdictions. 7. Sketch Plan Review, Planned Unit Development - Lionel Kull and Steve Upgren, Applicants. Mr. Lionel Kull and Steve Upgren were present to present a proposed Planned Unit Development on 8 acres of land south of the Silver Fox Motel, which would contain eight 12 -unit apartment buildings for a total of 96 units. The developers presented the preliminary information for the purpose of seeking a general concept approval before further refinements to their proposal are made. Councilmember Blonigen questioned how this project would affect the number of multiple family units compared to single family units in the City. Mr. Blonigen noted that the percentage of multiple family units allowed in our Comprehensive Plan is 45% of the available single family unit lots; and at the current time, the City is almost at the 45% figure. Mr. Blonigen questioned whether the percentage allowable for multiple family units should include only rental units and not duplexes or townhouses which may be owner occupied. It was noted by Administrator Eidem that the percentage of multiple family units as compared to single family units in the Comprehensive Plan was established to control density and the resulting strain a higher density of apartments may cause on public utilities such as streets, sewer and water, and other facilities. Mr. Eidem noted that the Comprehensive Plan can be amended to increase this percentage, or the Council could decide that once the percentage is reached, a moratorium would be placed on future developments until more single family lots were available. In any case, the proposed PUD presented by Mr. Kull and Mr. Upgren would result in the percentages being exceeded, and the Council would have to consider increasing this percentage and also would be required to rezone the property from its current commercial B-3 zoning to R-3 to allow for residential apartments. Councilmembers Maxwell and Bill Fair felt the City should not dictate what type of housing occurs in the City, but rather should let the market decide how a property is developed. As a result, it appeared they would be in favor of changing the percentages to allow a development similar to the one being proposed. -4- Council Minutes - 10/27/86 As a result, motion was made by Maxwell, seconded by Fran Fair, and unanimously carried to approve the concept plan presented for a PUD for 96 apartment units. It was noted the concept approval only gives a direction to the developers to proceed with their planning and that additional public hearings will be necessary on not only the zoning question, but a Comprehensive Plan amendment to allow for more apartment dwellings. 8. Consideration of Bills for the Month of October. Motion was made by Blonigen, seconded by Maxwell, and unanimously carried to approve the bills for the month of October as presented. 00, Rick Wolfsteller Assistant Administrator -5-