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City Council Minutes 04-08-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 8, 1991 - 7:00 p.m. Members Present: Shirley Anderson, Dan Blonigen, Clint Herbst, Brad Fyle, Ken Maus Members Absent: None 2. Approval of minutes. After discussion, a motion was made by Dan Blonigen and seconded by Shirley Anderson to approve the meeting minutes of March 25, 1991, as presented. Voting in favor: Shirley Anderson, Dan Blonigen, Clint Herbst, Brad Fyle. Abstaining: Ken Maus. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Consideration of proposal to remodel old fire hall building into facility for Social Services and Foodshelf. Rick Wolfsteller reported that the committee charged with researching the proposal has held two meetings to review the proposal and receive input from City representatives along with input from the Jaycees, Lions, Foodshelf, and Social Services agencies. Wolfsteller reported that it was the consensus of the committee to develop the following remodeling program and arrangements. 1. The City would retain ownership of the building and still be responsible for exterior maintenance. 2. Proposal calls for the City maintaining the grounds, including snow removal and garbage removal. 3. The City would agree to enter into a lease arrangement with the Foodshelf and Christian Social Services for a period of ten years with a review after eight years for possible extension of the lease. The annual lease charge is proposed at $1 per year plus leasee being responsible for all utilities. 4. The Foodshelf and Christian Social Services would be required to provide liability insurance for their activities with the City named as additional insured and provide their own insurance coverage for their contents. Page 1 Council Minutes - 4/8/91 5. The Monticello Jaycees, along with other organizations, would commit to funding the improvements estimated at $36,000. Wes Olson of the Monticello Jaycees went on to review the plan in more detail. Council then went on to discuss the details of the arrangement. After discussion, a motion was made by Dan Blonigen and seconded by Brad Fyle to approve the subcommittee's proposal for remodeling and leasing the old fire hall to the Foodshelf and Christian Social Services. Final approval of the proposal is to occur with Council approval of agreements governing the use of the fire hall. Motion carried unanimously. 5. Consideration of granting seasonal sales permit--MartieIs Farm Service. Assistant Administrator O'Neill reported that the Planning Commission had recommended that City Council grant a seasonal sales permit to Martie's Farm Service, which would allow retail sale of items from a temporary tent structure placed on the property from April 15, 1991, to June 15, 1991. Mayor Maus noted that this item had been reviewed and approved by the Planning Commission. It was his view that this type of retail land use is appropriate at this location. Dan Blonigen concurred that Martie's Farm Service is in an appropriate location for the type of business activity that is conducted. A motion was made by Brad Fyle and seconded by Dan Blonigen to grant a seasonal sales permit to Martie's Farm Service. Motion carried unanimously. 6. Review operation of auto sales activity and determine if use represents an enlargement of non -conforming use. Applicant, Hoglund Transportation/94 Services. Assistant Administrator O'Neill reported that Hoglund Transportation/ 94 Services has been selling used vehicles from a grassy area along the Oakwood Drive side of their property. In response to this activity, staff requested that Hoglund apply for a conditional use permit, as it appeared to City staff that establishment of an auto sales lot represented a new use or at a minimum represented an enlargement of existing commercial use of the property. In response, Hoglund submitted a plan for providing improvements to the site. The Page 2 Council Minutes - 4/8/91 plan also outlined a manner of operation that would be consistent with conditional use requirements set forth by ordinance. O'Neill went on to report that the Planning Commission recommended a reversal of initial staff determination that the auto sales lot represents an enlargement of an existing use. Planning Commission determined that auto sales at this location on the property as proposed is merely a continuation of sales activity that existed prior to the inception of the ordinance; therefore, auto sales as proposed is a lawful non- conforming use. If one agrees with this conclusion, then a conditional use permit is not needed; and existing non- conforming unpaved parking and drive areas associated with the Hoglund Transportation business activity need not be upgraded. Council reviewed the proposed plan for establishment of an auto sales lot. It was Council's conclusion that the proposal represented an enlargement to an existing use; therefore, a conditional use permit is needed in order for the auto sales lot to continue. Jenny and Gordy Hoglund noted that their organization is willing and able to comply with all of the conditions noted by the ordinance with or without the need for a conditional use permit. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to grant variances to Section 3-5: 9 (K) of the Monticello Zoning Ordinance, which requires that all areas intended to be utilized for parking space and driveway shall be surfaced with material suitable to control dust, and grant a variance to Section 3-5: 9 (0), which requires that all open, off-street parking shall have a perimeter curb around the entire parking lot. Motion was based on the finding that the traffic over parking areas associated with the variance is minimal, and paving and curbing are not necessary to control dust or drainage; therefore, granting of the variance does not impair the intent of the ordinance. Furthermore, granting the variance will not be detrimental to the adjoining properties. Motion carried unanimously. Motion was then made by Shirley Anderson and seconded by Brad Fyle to grant a conditional use permit allowing auto sales activity on the Hoglund property subject to the following conditions: Page 3 Council Minutes - 4/8/91 1. The enclosed principal use is a minimum of 4,500 square feet, excluding the area used for mechanical repair and reconditioning. 2. Outside sales and display areas are fenced or screened from view of neighboring residential uses or an abutting "R" district in compliance with Chapter 31 Section 2 [G], of this ordinance (does not apply because residential use is actually on the site, not abutting "R" district). 3. All lighting shall be hooded and so directed that the light source shall not be visible from the public right-of-way or from neighboring residences and shall be in compliance with Chapter 3, Section 2 [H], of this ordinance. 4. The outside sales and display area shall be hard surfaced. 5. The outside sales and display area does not utilize parking spaces which are required for conformance with this ordinance. 6. Vehicular access points shall create a minimum of conflict with through traffic movement; shall comply with Chapter 31 Section 51 of this ordinance (parking design requirements); and shall be subject to the approval of the City Engineer (curbing must be installed). 7. There is a minimum lot area of twenty-two thousand five hundred (22,500) square feet and minimum lot dimensions of one hundred fifty ( 15 0 ) feet by one hundred thirty (130) feet. 8. A drainage system subject to the approval of the City Engineer shall be installed. 9. All signing shall be in compliance with Chapter 3, Section 9, of this ordinance. 10. The provisions of Chapter 22 of this ordinance are considered and satisfactorily met. 11. No more than ten cars may be parked for sale at any one point in time. Page 4 Council Minutes - 4/8/91 12. Four trees shall be planted east of the two garages on the site. 13. The conditional use permit requires common ownership of the property containing the office space and the site of the sales lot. 14. A culvert shall be installed under the drive leading to the Hoglund Transportation office. Said culvert shall have a minimum diameter of 15 inches. 15. The drive area in front of the bus storage facility shall be paved per the attached site plan by October 15, 1992. Motion was based on the finding that operation of the auto sales lot at this location under the conditions specified is consistent with the character of the area and will not tend to depreciate adjoining properties. Motion carried unanimously. 7. Consideration of authorization to purchase motor vehicle registrar computer software package. Assistant Administrator O'Neill reported that the original computer RFP prepared for the City of Monticello, which was initiated in 1986, included the provision for a deputy registrar package for motor vehicle and DNR registrations. The package prepared by the vendor in conjunction with the 1986 computer purchase was woefully inadequate, and the City elected not to implement this system. A new computer development plan, which included a proposal to replace the City's hardware and software, was approved by City Council on January 22, 1990. The plan included a provision for deputy registrar software at a cost of up to $800. The deputy registrar package was not purchased in 1990 due to several reasons. Upon investigation, there was not a package that met the City and state's requirements for the amount of money budgeted. Also, due to time constraints associated with implementation of finance applications, word processing, payroll, recycling, and utility billing programs, we were unable to implement additional deputy registrar software. Now that the major financial systems have been implemented, staff has the resources to install the deputy registrar program which, when completed, will result in a cost savings to the City due to increased efficiency and accuracy. Page 5 Council Minutes - 4/8/91 After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to approve the proposal to purchase Minnesota Motor Vehicle Registrar computer software at a cost of $3,000. Motion carried unanimously. 8. Consideration of purchasing a slide -in grass rig fire unit -- Monticello Fire Department. Rick Wolfsteller reported that as an add-on item at the last Council meeting, Council discussed the fire department's request to purchase a slide -in tank unit for fighting grass fires. On a tie vote, authorization was not granted to allow the purchase, and it was discussed whether the Township would actually be paying a larger share of this purchase since it would primarily be used in rural areas. Wolfsteller went on to note that the entire joint fire agreement has recently been reviewed and approved for a five- year period, which includes a formula for establishing each jurisdiction's share of the operating cost. Presently, Monticello Township contributes 37% of the total capital purchasing cost and operating cost annually toward the fire department budget. While some items are utilized more in the city and some are utilized more in the township, it may not be appropriate to single out only one item for special treatment in regard to the cost sharing formula. Wolfsteller went on to note that it would be a difficult problem to try and allocate all items and expenditures based on where the equipment is utilized. Unless the City Council would like to terminate the joint agreement and renegotiate the entire formula, the only decision should be whether this piece of equipment is actually needed by the fire department. Ken Maus and Shirley Anderson agreed that the contract is in place and that we should abide by it. Dan Blonigen stated that this unit will be used primarily in the township, and the City should not be paying a major portion of the cost to purchase it. Clint Herbst noted that this discussion should plant the seed for changes in the contract, which he felt is at this time a one-way street. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the purchase of a grass fire rig as proposed in the amount of $2,734.12 with cost allocation based on the present joint agreement. Motion carried unanimously. Page 6 Council Minutes - 4/8/91 9. Consideration of adopting policy on City Hall van use. Rick Wolfsteller reviewed the objective of the van use policy, which is to provide a guideline for use of the City Hall vehicle, enable the Building Inspector to have available a vehicle for performing duties of the Building Inspection and Civil Defense Departments, and also set procedures to allow the vehicle to be utilized by other staff members whenever feasible. Council reviewed the van policy; and after discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to adopt the proposed policy with the addition that the vehicle shall be available for use by City Hall staff and volunteer fire department officials only. Motion carried unanimously. 10. Review of City vehicle use. Rick Wolfsteller reported that this item concerns the use of the City vehicle by the Public Works Director for transportation between work and home. He reported that the practice of allowing the Public Works Director to utilize the City vehicle is to provide him with a radio, small tools, a fire extinguisher, an 8 -minute self contained breathing apparatus, traffic cones, and other necessary equipment for opening manholes and lift stations. This enables the Public Works Director to respond directly to emergencies rather than having to obtain a vehicle out of storage at the public works building, which could first require the moving of one or two other vehicles. The radio gives the Public Works Director direct contact with the field crews, especially in the wintertime. This enables the Public Works Director to respond to citizens' requests during off hours even if it was not necessarily an immediate emergency. Secondly, the use of the pickup is a direct benefit to the Public Works Director, as he does not have to provide his own vehicle to and from work; and initially, the $380 benefit did not need to be reported on his taxes. It was essentially tax free. Initially, emergencies, responses to citizens' requests, and use of the radio to contact field crews was approximately two times per month or more. Wolfsteller went on to say that since the practice of allowing the Public Works Director to use the City vehicle began, some changes have taken place. First, the number of emergency responses by the Public Works Director has decreased due to Page 7 Council Minutes - 4/8/91 improvements made to our infrastructure system such as the wastewater treatment plant, lift stations, and water system. Responses are now less than half of what they were in 1981. In addition, IRS regulations changed and require the reporting of personal use of an employer's vehicle to be reported as income on the employee's W-2 form at the end of the year. This is proper, as in most instances, private use of the company-owned vehicle is generally given in lieu of wages. For the past few years, the City has reported to the IRS additional income in the amount of $720 per year on the Public Works Director's W-2 form. Wolfsteller went on to remind Council that the Public Works Director was provided use of the City vehicle in lieu of salary increases in the past. If Council eliminates the practice of allowing the Public Works Director to take a vehicle home, then a salary adjustment should be considered. Brad Fyle noted that the original intent of having the vehicle available in case of emergencies is not as important since emergency situations are becoming infrequent. Fyle was not convinced that a City employee should be taking a City vehicle home. Clint Herbst stated that there are cost savings in having a City employee having immediate access to the vehicle. He doesn' t have to go to the garage to pick it up. The City does not have to house the vehicle. It doesn't make sense to be spending this much time on this item. John Simola reported that nine times during the year he needed the vehicle for emergency responses or for other responses to citizen requests for service. He also noted that he would have no problems at all if he did not have access to the vehicle as he now does as long as he is reimbursed for the loss of the benefit with an increase in salary. Shirley Anderson noted that the use of the vehicle by the Public Works Director should be part of the job description. Anderson went on to note that the number of times that the Public Works Director responds per year is not important. One big emergency situation where having use of the vehicle makes a difference justifies the present practice. Ken Maus noted that the practice of allowing the Public Works Director to drive the City vehicle to and from work has probably not cost the City a penny. The City has not had to house the vehicle, and past salary increases were reduced in exchange for providing the use of the vehicle. Council Minutes - 4/8/91 After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to continue the existing practice of allowing the Public Works Director use of the vehicle commuting to and from home and lunch and that the Public Works Director, when using his own vehicle on City business in the community, is not reimbursed for this expense. Voting in favor: Clint Herbst, Shirley Anderson, Dan Blonigen, Ken Maus. Opposed: Brad Fyle. 11. Consideration of adopting plan for extension of sewer and water utilities and development of roadways serving school district property. Assistant Administrator O'Neill outlined a plan for extending and financing utilities to the elementary school site. O'Neill noted that the plan results from discussions between City staff, the School Superintendent, and the developers of the property to the south of the school district site. O'Neill went on to note that the conservative nature of the plan resulted from the existence of a significant level of debt associated with previous improvement projects. O'Neill noted that the plan presented, if approved in concept form, will become the basis of the feasibility study and development agreement to be prepared if the school district bond issue is approved. O'Neill went on to detail the public utilities plan, which included the following components: Sanitary sewer extended along Fallon Avenue from Dundas at an approximate cost of $26,000 to be financed by assessments to the Farm Credit and school district properties. School district will pay an area assessment of $50,000, which is equal to $12,050 per acre based on a 40 -acre elementary school development area. Sewer trunk line installation to occur in the future with development of the Klein property. Water main service will be gained by extending water main from Dundas to the northern boundary of the elementary school site at a cost of approximately $22,000. This cost will be assessed evenly to the Farm Credit property and to the school district. The cost to extend the water main beyond the northwest boundary of the school site will be paid entirely by the school district with Page 9 Council Minutes - 4/8/91 reimbursements made to the school district when future users obtain access to the water main originally paid for by the school district. - Roadways will include a 40 -foot wide roadway constructed with rural design features and installed along the southern boundary of the school district property. The cost of this roadway is estimated at $224,000, not including grading and other subgrade preparation. This project will be conducted as a public improvement with 50% of the cost assessed to the school and 50% to the Farm Credit property. This assessment arrangement would require a major portion of the principal cost to be paid or guaranteed prior to start of construction, thereby eliminating risk associated with assessing roadway expenses against Farm Credit property. - The school district will develop a driveway extending from Chelsea Road in a southerly direction to the middle school site. This road will be installed and financed by the school district. In the event that this road becomes a through street and not used primarily for school related access, the City will accept this road as a dedicated right-of-way. The existing zoning designation of the Value Plus Homes site is agricultural and would remain unchanged until development of existing residential areas now served with sewer and water or until significant progress is made toward retirement of the various residential tax delinquent properties in the city. Rezoning of the school district property from agricultural to R-2 must also be achieved through cooperative planning efforts between the school district and City. O'Neill went on to review modifications that could be made to the plan in the event that Council elects to extend utilities to potential residential areas to the south of the school site. Shelly Johnson noted his support of the plan and that things have gone well up to this point. He went on to note that by the middle of September, he would like the rezoning and conditional use permit issues resolved and be in position to obtain a building permit. Page 10 Council Minutes - 4/8/91 Council reviewed the plan in detail. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to approve the concept plan for extending utilities to the school district property with said plan becoming the basis of future plan work. Motion carried unanimously. 12. Consideration of abating special assessment penalties and interest on 82-2 improvement project --Farm Credit Systems property. Rick Wolfsteller requested that Council consider reducing the special assessment balance against Farm Credit properties in exchange for immediate cash payment of the remaining assessment balance. Wolfsteller noted that the only assessments paid by the original owners, Jim Boyle and Dickman Knutson, have resulted from homes being built and sold; and as a result, a large outstanding assessment balance remains for the entire project in the amount of over $570,000. Farm Credit Systems, the mortgage holder on Mr. Boyle's property, recently foreclosed on the property and is now the owner. Since their foreclosure, Farm Credit has been attempting to market the property to developers without much success. Except for the recent sale of approximately 50 acres to the school district and a small acquisition by the City to supplement Remmele Engineering property, Farm Credit Systems has been unable to sell the balance of the property at this time. According to Farm Credit, it appears that the amount of outstanding assessments against the Meadow Oak residential parcels may be excessive relative to the estimated value of the property. Farm Credit has indicated that it may have an interest in paying off the entire assessments, including delinquents and future balances, if the City would reduce assessments by about $100,000. Wolfsteller noted that the penalties and interest that have accumulated on the delinquent assessments total approximately $88,375, which, if eliminated, could be sufficient to entice Farm Credit to consider paying off the entire assessment in one lump sum. Wolfsteller suggested that Council seriously consider reducing the assessment by $88,378 if Farm Credit would agree to pay off the assessment balances in full. Wolfsteller noted reasons why the City should consider reduction in the assessments. He noted that due to the distribution of the assessments against various outlots, it is likely that the City would stand to lose at least $88,000 just trying to market one of the outlots if we would wait for tax forfeiture Page 11 Council Minutes - 4/8/91 proceedings. The proposed reduction would allow the average cost per acre for assessments to be approximately $2,500 per acre, which would enable Farm Credit to market the property and still cover their mortgage cost. The City would be able to reimburse the bond funds that have had to support the debt payments for the past eight years and would make our balance sheet look better for bond rating purposes. Finally, under the proposal the City would receive ownership of Outlot A for park dedication purposes and would then not have to deal with each individual developer for park dedication purposes. Ken Maus noted his support of staff's recommendation and that as an alternative, the City may of fer to take Outlot I and use revenue from the sale of that parcel to pay the delinquent assessments. The remaining assessments against the other outlots would then be paid by Farm Credit. Shirley Anderson noted that economically this is a better approach, and she supports the elimination of penalties and interest if it will result in payment of the balance of the assessment. Paul Weingarden noted that reducing the assessment may require a re -assessment hearing. He cautioned that lowering the assessment may result in future requests by other land owners. Brad Fyle noted that he preferred the City avoid acquiring property and he, therefore, supports the proposal to reduce the assessment. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to authorize City staff to propose a reduction in special assessments against all land owned by Farm Credit Systems in the amount of $88,378 contingent upon Farm Credit paying off all the remaining assessment balances totaling $483,370 within 30 days, along with the deeding to the City of Outlot A for park dedication purposes. Motion carried unanimously. 13. Consideration of change order #1 and final payment for Project 88-05, 800,000 gallon water tank. John Simola reported that there are a few warranty items that need to be taken care of. Some rust has developed in the interior portion of the tank. This problem will be taken care of in May by Caldwell's subcontractor, Newman Painting. In addition, the drain from the valve pit near the tank has failed. The City has worked out an agreement with Caldwell whereby we do this warranty work and are paid by Caldwell. Page 12 14. 15. Council Minutes - 4/8/91 There are a few items left for the City to do, most of which monies were withheld from the contractor for completion. We have completed a tabulation of costs related to the purchase of the land and construction of the water tank. It is the recommendation of the Public Works Director and City Engineer that the Council authorize final payment to Caldwell Tanks as outlined under alternative #1. Council asked if there was any reason why the final payment should not be made to Caldwell Tanks. John Simola responded by saying that everything is in order. Motion was made by Shirley Anderson and seconded by Clint Herbst to approve change order #1 and final payment to Caldwell Tanks in the amount of a credit of $2,717.47. This brings the total payment to Caldwell in the amount of $305,208.53. Motion carried unanimously. Consideration of replacing chlorine scale in pump house #2. John Simola reported the chlorine scale, which is located in pump house #2 near the old fire hall, is 20 years old, and we refurbished the pump house and pump last year. The scale was in poor condition with a significant amount of corrosion. In preparation for its replacement, $1,500 was placed in the 1991 budget. The City obtained two quotes for the purchase of a new chlorine scale, one from Feedrite of Minneapolis for $1,268, the other from Henry & Associates of St. Cloud in the amount of $965. Henry & Associates is a new company, and it appears that they are selling a scale to the City for near cost to get some of our business. Simola recommended that the City Council authorize the purchase of the chlorine scale from Henry & Associates of St. Cloud. After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to purchase a Series 50-345 Wallace & Tiernan chlorine scale from Henry & Associates of St. Cloud, Minnesota, for $965. Motion carried unanimously. Consideration of modification of sick leave section of personnel policies and procedural manual. Rick Wolfsteller requested that the personnel policy be amended to allow employees to use the weekly disability Page 13 Council Minutes - 4/8/91 insurance benefits to cover the cost of non -reimbursed medical expenses resulting from non -job related sickness or injury for which the disability benefits are claimed. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to table this matter for further discussion. The item was tabled to the first meeting in June. Motion carried unanimously. 16. Consideration of request for one -day setup/3.2 beer license for Ducks Unlimited Banquet and one -day 3.2 beer license for July 7 Riverfest Celebration - Lions Club. Motion was made by Shirley Anderson and seconded by Clint Herbst to approve said license request. Motion carried unanimously. 17. Consideration of authorizing City Attorney to take legal action necessary to enforce the terms of Fair's Garden Center's conditional use permit. Assistant Administrator O'Neill reported that Fair's Garden Center was granted a conditional use permit in 1989 which allowed expansion of sales and storage areas. The conditional use permit outlined 14 conditions, one of which was a requirement that 24 parking stalls be available for employee and customer use. O'Neill noted that a number of the parking stalls are consistently being used for storage of landscaping equipment and inventory for sale. He went on to review a letter submitted by Kevin Fair to the City which noted that the use of the parking spaces is temporary, and they are being used for moving stock and setting up for spring. The letter went on to note that prior to the busy season of May 1, the garden center will have 24 spaces available for customers and employees. Dan Blonigen stated that the parking spaces need to be open for the public. If they are used for storage of materials, the customers will be parking in the street and on other private properties. Ken Maus noted that the parking problem is difficult to quantify. He questioned at what point should we step in. City Attorney, Paul Weingarden, responded by saying that conditional use permit requirements such as this one are difficult to enforce and that the act of compliance ends enforcement. He went on to note that in order to bring Page 14 Council Minutes - 4/8/91 effective enforcement action, City staff needs to further develop evidence of a violation of the conditional use permit and develop evidence of parking problems created by the violation. Brad Fyle suggested that citizens' complaints and demonstrated traffic hazards need to be created before further action is justified. Paul Weingarden informed Council that the current ordinance does not contain a provision for withdrawing a conditional use permit and that only provision for penalties is now provided. Weingarden noted that the City ordinance should be updated to include a provision for withdrawing conditional use permits if continual violations occur that create problems. Ken Maus suggested that the City compile further documentation which would include an outline of past violations to the conditional use permit and include documentation of parking problems. Maus noted that the City needs to position itself better if it intends on taking enforcement action. Dan Blonigen stated that there was not a single day last season where the garden center was in compliance with the parking requirement, and he suggested that it is not likely that Fair's Garden Center will comply with the parking requirements by May 1. Staff was directed to continue to monitor the situation pertaining to Fair's Garden Center's conditional use permit and to review other existing conditional use permits for similar violations and prepare a report. Further action regarding enforcement of the Fair's Garden Center conditional use permit is to be considered after May 1 if violations continue after this date. 18. At the close of the meeting, Mayor Maus read a proclamation proclaiming the week of April 8-12 as Building Safety Week in Monticello. There being no further discussion, the meeting was adjourned. Jeff O'Neill Assistant Administrator Page 15