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City Council Agenda Packet 10-13-2003 Special . . . AGENDA SPECIAL MEETING - MONTICF:LLO CITY COUNCIL Monday, October 13, 2003 - 5 p.m. Mayor: Brucc Thielen Council Members: Roger Carlson, Glen Posusta, Robbie Smith and Brian Stumpf 1. Call the special meeting to order. 2. Consideration of Resolution Petitioning the Minnesota Department of Administration for the Annexation of Certain Portions of Monticello Township to the City of Monticello Pursuant to Minnesota Statutes, Section 414.031 3. Adjourn. . . . 2. Consideration of resolution Petitioning: the Minnesota Department of Administration for the Annexation of Certain Portions of Monticello Township to the City of Monticello Pursuant to Minnesota Statutes, section 414.031. A. REFERENCE AND BACKGROUND: The City Council is asked to meet during a workshop session at 5 :00 PM on October 13 to discuss the potential adoption of the proposed resolution. The discussion at the workshop will be led by Bruce Thielen, Steve Grittman and Rick Wolfsteller and will include a review of annexation process history, current annexation process, review of planning related problems resulting from the current situation. Council is asked to define the proposed annexation boundaries at the workshop, then at the regular meeting consider adopting the resolution and associated contested case annexation boundary. Please review the following presentation outline along with the proposed resolution. At the workshop, map information will be available to assist the City Council in establishing a contested case annexation area if it so desires. Also included in the packet supplemental information relating to Decision Standards for Contested Annexations along with Statutory Criteria for Contested Annexations. finally, a flow chart is provided that identifies the contested case annexation process. Finally, a proposed list of guiding principals is provided which identifies the impact of annexation on Township parcels. H. AL TERNA TIVE ACTIONS: I. Motion to adopt said resolution including a boundary description as defined by the City Council at the meeting. Council also adopts guiding principals relating to treatment of area in the Township proposed for annexation to the City. 2. Motion to deny adoption of said resolution. Council should select this alternative if it prefers to annex land in 60 acre segments or less. Under this alternative the City Council provides stall with direction to initiate the contested case annexation process. c. STAFF RECOMMENDATION: As noted in the outline, the City Council has met with the 'rownship Supervisors and requested that the Township join the City in establishing a new orderly annexation area agreement so that the City could plan infrastructure and land uses accordingly. The Township has not responded atlirmatively towards efforts to work together so the City may be left with no alternative but to annex a defined planning area in order to obtain . . . land use control necessary for infrastructure planning. The City Administrator, therefore recommends alternative 1. It is impossible to properly plan for inevitable growth without establishment of a certain city growth area. Annexation of the area proposed will provide the City with assurance that investments made in oversizing to accommodate growth will be utilized at some point in the future and the potential problems associated with conflicting land uses can be avoided. D. SUPPORTING DATA: Presentation outline, Area maps provided at meeting, Resolution, proposed guiding principals affecting lands annexed to the city. Contested Case Annexation Criteria, Flow Chart. City Council Workshop "- Annexation Presentation Outline -- October 9, 2003 History . 1) MOM Agreement - 1972-2003 Establishment of Urbanization Area Joint Planning Board. Allows Confident Extension of Utilities. Annexation battles occured over the years. Very time consuming annexation process. Room full of files. Old MOAA areais now near "build-out" 2) State Statutes. Current process for annexatation 60 acre rule Annexation is easier - but there is no control over land development around City. Council appoints Stump and Thielen to explore options - meet with Township officials. 3) Joint Meeting with Township - Ideas Proposed by City. Reinstate MOM Discuss Consolidation Township indicates that they are initiating a planning effort - large lot development is a possibility. No response from Township regarding orderly annexation planning Township willing to follow State Statutes indefinitely at this point. II Current Situation/Options 1) Review Maps Current City Boundary Identify recent annexation proposals Pauman, Koch Family, Dane, Schluender Review long Range land Use Planning Area Boundary established in 2002. Growth rate projections - land absorbtion - timing of request relative to growth projections. . 2) Options for Establishing Planning Area -- 30 years after initial expansion boundary was determined. Stump, Thielen met with Chris Hood/Staff. MOAA - Not viable without Township participation. Consolidation plan - Not viable without Township participation. Annexations - via contested case. Establish new city boundaries that allow for a planned extension of utilities,ro III Why is it Necessary for the City to Have ability to Control Development Outside Borders? 1) land Use Planning. Avoid land use conflicts - preserve land for planned use. Industrial land - preserve until market demand develops. Avoid undesireable mix of land uses. Gravel Pit Cell Tower Feed lots Preserve Natural Resources for long term enjoyment by entire community Trail corridors Park areas Woodland Preservation Ag ricu Itu ra I . 2) Wastewater Treatment Plant/Sanitary Sewer System. . Ensure ability to apply capacity of existing $15.000,000 sewer plant and potential expansions to a specific area. Protect investment in oversizing thus ensuring ability to apply capacity of trunk sanitary sewer systems now in Enable planning for trunk system - pipe size and routes. Allow development of financial model supporting construction, utilization and funding of trunk system. Enable analysis of long term sewer plant expansions or secondary locations. Provision of options for serving existing non-sewered Township developments- Environmental protection. 3) Watermain Same issues as Sanitary Sewer system. Well field identification options Identification of routes for looping system. Proper location of Water Towers - assure full utilization in the future. 4) Streets Preservation of Land Needed for Future Interchange. Sufficient Right of Way needs to be identified to accomodate access to interchange and arterial roads to and fro Example: Fallon Avenue, 106th street. Proper planning of collector routes connecting and through developing areas. Establish ability to designate State Aid routes and collectors. 5) Storm Sewer Resolve jurisdictional conflicts regarding stormwater management/authority. Ditch 33. Solve flooding problem. New development south - Stormwater flowing away from river. City controls rate and volume. IV . Proposed Solution 1) Adoption of Resolution requesting contested case annexation. Establish planning control over logical expansion area Encourage Township to negtiate revised MOAA agreement. 2) Identify potential contested case area.. Council input Guiding principals Use realistic land absorbtion projections in establishing planning boundaries. Minimize financial impact on those affected --- Special taxing jurisdication - no tax base grab. Allow residential developments at proposed City edge to remain in Township. Solve problems - do not create problems with boundary adjustment. Update Planning Goals for growth area. Subdivision design goals to be determined. Transition to City should be seamless for rural areas. 3) City Councilmember response V Items needed that are associated with resolution . Legal description of proposed annexation area Population of City Population of Township. Estimated population of area proposed for annexation. Boundary Map City area Area proposed for annexation Identification of governing utins having jurisdiction over area proposed for annexation. Plat maps of annexation area. Filing fee Affidavit of service . . . DRAFT #2 - October 3, 2003 RESOLUTION NO. RESOLUTION OF THE CITY OF MONTICELLO PETITIONING THE MINNESOTA DEPARTMENT OF ADMINISTRATION FOR ANNEXATION OF CERTAIN PORTIONS OF MONTICELLO TOWNSHIP TO THE CITY OF MONTICELLO PURSUANT TO MINNESOTA STATUTES, SECTION 414.031 WHEREAS, the City of Monticello (the "City"), Wright County, Minnesota, abuts and is surrounded on three sides (west, south, and east) by Monticello Township (the "Township"), Wright County, Minnesota, and by the Mississippi River (north); and WHEREAS, the City and Township are located in a growth corridor along Minnesota Interstate Highway 94; and WHEREAS, the City and Township have and will likely continue to see significant urban or suburban growth pressure from both the Twin Cities and St. Cloud metropolitan areas; and WHEREAS, certain portions of the Township have been developed in an urban or suburban manner and other portions are expected to develop for residential, commercial, industrial, institutional or governmental purposes in close proximity to or abutting the City of Monticello; and WHEREAS, urban or suburban development pressure in the Township necessitates long- term planning to ensure that urban or suburban growth is controlled, planning and zoning are consistent with growth patterns, and available infrastructure is used efficiently and services are provided cost-effectively to Township areas surrounding the City as such areas grow; and WHEREAS, the City has made a substantial public investment in infrastructure to accommodate future growth around the City and seeks to use such investment for the betterment of the community and the protection of the environment as areas surrounding the City grow; and WHEREAS, the City has the professional staff and the capacity to provide municipal services to Township areas in need of such services; and WHEREAS, the area of the Township proposed to be annexed as described herein is urban or suburban in character or about to become so based on existing and anticipated residential, commercial and industrial development; and WHEREAS, extension of municipal sanitary sewer service, water service and other municipal services from the City to developed and developing areas, and the inclusion of a growth area with consistent planning and zoning to accommodate future growth, is necessary for the public, health, safety, and welfare of the residents of the Township and the City; and WHEREAS, extension of municipal sanitary sewer service, water service and other municipal services from the City and the annexation of the City's expected growth area is in the . . . best interests of the City, Township, and the property owners in the area proposed for annexation; and WHEREAS, the City has attempted to resolve the long-term growth and annexation issues with the Township by suggesting cooperative discussions regarding development of an orderly annexation agreement which would provide for planned growth, planned services, and planned annexations, but such suggestions have been met with opposition or without commitment from the Township; and WHEREAS, it is the intent and desire of the City to resolve these long-term growth, annexation and service issues for the betterment of the City/Township community by initiating proceedings for the annexation of certain areas of the Township, legally described herein, with the Minnesota Department of Administration Municipal Boundary Adjustments Office; and WHEREAS, the City Council ofthe City of Monticello fully supports the filing of this Resolution with the above-mentioned state agency for a hearing regarding the annexation of the areas of Monticello Township described herein to the City of Monticello. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF COUNCIL OF THE CITY OF MONTICELLO, WRIGHT COUNTY, MINNESOTA, THAT; 1. The Minnesota Department of Administration Municipal Boundary Adjustments Office, is hereby requested to hold a public hearing pursuant to Minnesota Statutes, Section 414.09, on the question of annexation of certain portions of Monticello Township, Wright County, Minnesota, legally described herein, to the City of Monticello, Wright County, Minnesota, pursuant to Minnesota Statutes, Section 414.031. 2. The subject area of the Township proposed for annexation to the City (hereinafter referred to as the "Subject Area") is legally described in Exhibit A, which is attached hereto and incorporated herein by reference. A map showing the Subject Area is attached hereto as Exhibit B and incorporated herein by reference. Plat maps for the Subject Area are attached hereto as Exhibit C. 3. The Subject Area is unincorporated and abuts the City on the City's westerly, southerly and easterly boundaries and none of the Subject Area is presently a part of any incorporated city or an area designated for orderly annexation. 4. The total acreage of the Subject Area is ~ acres. 5. The population of the City is~, and the population of the Township is 6. The following parties are entitled to notice pursuant to Minnesota Statutes, section 414.09; 2 . . . a. Monticello Township, as the township presently governing the area to be annexed and served. b. Wright County, as the county in which the area to be annexed and served is located. c. The Wright County Planning Commission and Monticello Township Planning Commission, as planning agencies with jurisdiction over the affected area. 7. City staff is hereby directed to file this Resolution with the Minnesota Department of Administration Municipal Boundary Adjustments Office for annexation of the Subject Area pursuant to Minnesota Statutes, Section 414.031. City staff is further directed to submit a copy of this resolution/petition to Monticello Township. Passed, adopted, and approved by the City Council of the City of Monticello, this _ day of ,2003. Attest: Approved: Rick Wolfsteller, City Administrator Bruce Thielen, Mayor 3 . EXHIBIT A Legal Description of Subject Area Proposed for Annexation to the City of Monticello . . 4 . EXHIBIT B Boundary Map Showing the Subject Area Proposed for Annexation to the City of Monticello . . 5 . . . EXHIBIT C Plat Maps for the Subject Area Proposed for Annexation to the City of Monticello 6 . . . Guiding Principals For Lands Annexed to The City 1. Establish special rural area tax rates to match service level provided. Rural resident tax rate to rei1eet service level provided so the rural resident tax rate should be similar to current Township rate. 2. Existing Agricultural uses allowed to continue under the City Agricultural Zoning District Regulations.. 3. No extension of sewer and water service to township subdivisions unless to solve environmental problems or unless requested by residents. 4. Land use planning/subdivision design in low density residential annexation area to be determined via future planning efforts. Que:> '" I 0,"" \ G..r Ie. ~<< ( 0 \ \ e c... ~ i c",,\ -: 70...... of S ( . i:' A I'f!.. 0... p~,t 6' ;;'1'""<' $"" L . Decision Standards for Contested Annexations Section 414.031 Approval standards Based upon the statutory factors listed in section 414.031, subd. 4, the Department of Administration or its designated decision-maker (ALJ), after hearing testimony, may order an annexation if: 1. It finds that the subject area is now, or is about to become, urban or suburban in character; or 2. It finds that municipal government in the area proposed for annexation is required to protect the public health, safety, and welfare; or 3. It finds that annexation would be in the best interest of the subject area. Denial standards The decision-maker must also apply the following additional standards when considering a contested annexation request: 1. The decision-maker shall deny the annexation if the increase in revenues for the annexing municipality bears no reasonable relation to the monetary value of benefits conferred upon the annexed area. 2. The decision-maker may deny the annexation if: a. Annexation to an adjacent municipality would better serve the interests of the residents of the property; or b. The remainder of the township would suffer undue hardship. . Statutory Criteria for Contested Annexations Section 414.031 Annexation criteria The Department of Administration or its designated decision-maker must consider evidence regarding the following criteria: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. . 14. Population, households, and growth of area; Quantity of land and natural physical features; Degree of contiguity of boundaries; Pattern of development, planning, and land uses and impact of proposed action; Present transportation network and potential transportation issues; Land use controls and comprehensive planning; Level of services and impact of proposed action on delivery; Existing or potential environmental problems and impact on those problems; Plans for providing needed government services; Fiscal impacts (including tax capacity, debt, and local tax rates); Effect of proposed action on adjacent school districts and communities; Adequacy of town government to deliver services to subject area; Analysis of whether government services can best be provided through the proposed action or another process; and In cases of partial township annexation, ability of remainder of town to continue or feasibility of another boundary adjustment procedure. . Annexation by Administrative Law Judge (ALJ) Order 414.031 Proceeding initiated by submitting any of the following to Dept. of Admin.: . Resolution of annexing city; . Resolution of annexing town; . Petition of 20% of property owners; or . Joint resolution of city and town Upon receipt of resolution, Dept. of Admin. sets a hearing date . If mediation fails to resolve dispute, ALl hears evidence and considers statutory criteria Approve ALJ may approve if: . area is urban or suburban; . annexation is necessary to protect public health, safety, and welfare; or . annexation is in best interest of area ALJ shall deny if: . the increase in revenues for the city bear no reasonable re- lationship to the value of benefits conferred upon the town ALl orders annexation . , ALJ may deny if: . annexation to an- other municipality would better serve the area; or . remainder of town would suffer undue hardship If city annexes an entire township, election of new municipal officers is required. If less than entire township annexed, ALl can require an election of municipal officers, if equitable. Prepared by Flaherty & Hood. PA . 444 Cedar Street. Suite 1200. Saint Paul. MN 15101 . 651-225-8840 . . . CONTESTED CASE ANNEXATION PROCESS Section 414.031 1) Initiating Process- City files petition with Department of Administration. The process is initiated by tiling a resolution/petition, adopted at a city council meeting, with the Minnesota Department of Administration. 2) Department of Administration sets matter on for hearing (30 to 60 days). Within 30 to 60 days after filing the City's resolution/petition, the Department of Administration will set the matter on for hearing and continue the matter indefinitely pending the outcome of voluntary settlement discussions and/or mediation. 3) Voluntary meetings with Township (60 days). After setting the matter on for hearing, the Department may order the parties to meet 3 times over the next 60 days voluntarily to see if the parties can reach an agreement on their own. The Department can also alternatively order the matter go right to mediation and forego the voluntary meetings. 4) Mediation (60 to 120 days). After setting the matter on for hearing, the Department of Administration will give the parties a list of mediators to select. Shortly thereafter, the parties will select a mediator, make contact with the mediator, and set a date f()r the first mediation session. Mediation is facilitated settlement discussions between the City and Township. The mediator, however, cannot force a settlement. The length of mediation will depend on whether progress is being made towards settlement. If progress is not being made, mediation will be terminated and the matter will be transferred to the Office of Administrative Hearings (OAll) for trial. 5) Contested-case hearing (3 to 5 days). If mediation fails to result in settlement, the matter will be transferred to the OAH for a trial-type hearing before an Administrative Law Judge (ALl). The ALl will hold a trial in accordance with the law, hear testimony, and accept evidence from both parties. 6) ALJ decision (90 days). After the hearing and the submission of closing briers by the parties, the ALl will weigh the evidence presented and make a decision on the question of annexation. The ALl has 90 days from the last day of hearing to render a decision on the matter. The ALl's decision is binding. 7) Contested annexation process now chart and ALl decision criteria. Handouts showing the annexation process as a !low chart and describing the factors the ALJ will consider and the standards the ALJ will apply in deciding a case are attached. 8) Appeal. Either party may appeal the final decision ofthe ALl. l'n:p"red by Flaherty & flood, PA . 444 Cedar Street Suite 1200, Saint Paul, MN 5510 I . (651) 225-8840 . Decision Standards for Contested Annexations - Section 414.031 Approval standards Based upon the statutory factors listed in section 414.031, subd. 4, the Department of Administration or its designated decision-maker (AU), after hearing testimony, may order an annexation if: 1. It finds that the subject area is now, or is about to become, urban or suburban in character; or 2. It finds that municipal government in the area proposed for annexation is required to protect the public health, safety, and welfare; or 3. It finds that annexation would be in the best interest of the subject area. Denial standards The decision-maker must also apply the following additional standards when considering a contested annexation request: I. The decision-maker shall deny the annexation if the increase in revenues for the annexing municipality bears no reasonable relation to the monetary value of benefits conferred upon the annexed area. 2. The decision-maker may deny the annexation if: a. Annexation to an adjacent municipality would better serve the interests of the residents of the property; or b. The remainder of the township would sutTer undue hardship. . Statutory Criteria for Contested Annexations - Section 414.031 Annexation criteria The Department of Administration or its designated decision-maker must consider evidence regarding the following criteria: 1. Population, households, and growth of area; 2. Quantity of land and natural physicalleatures; 3. Degree of contiguity of boundaries; 4. Pattern of development, planning, and land uses and impact of proposed action; 5. Present transportation network and potential transportation issues; 6. Land use controls and comprehensive planning; 7. Level of services and impact of proposed action on deli very; 8. Existing or potential environmental problems and impact on those problems; 9. Plans for providing needed government services; 10. Fiscal impacts (including tax capacity, debt, and local tax rates); II. Effect of proposed action on adjacent school districts and communities; 12. Adequacy of town government to deliver services to subject area; 13. Analysis ofwhcther government services can best be provided through the proposed action or another process; and 14. In cases of partial township annexation, ability of remainder of town to continue or feasibility of another boundary adjustment procedure. . Prepared by Haherty & Hood. PA. .444 Cedar Street, Suite 1200. Saint Paul. MN 5510 I . (651) 225.XX40