City Council Minutes 02-28-1994MINUTES
REGULAR. MEETING - MQNTICELL4 CITY COUNCIL
Monday, February 28, 1994 - 7 p.m.
Members Present: Ken Maus, Shirley Anderson, Brad Fyle, Clint Herbst, Patty
Olsen
Members Absent: None
2. Consideration of a royal of minutes of the re ular rneetin held
February 14, 1994.
After discussion, a motion was made by Brad Fyle and seconded by Shirley
Anderson to approve the meeting minutes as submitted. Motion carried
unanimously.
3. Citizens comments/ etitions re uests and cam hints.
Dave Anderson, representing Century 21 Realty, described difficulties with
removing snow from the sidewalk in front of this business along Highway
25. He noted that the snow on the sidewalk consists of an icy windrow
created by plows clearing State Hwy 25. The icy consistency of the snow
makes it difficult to remove. In addition, there is little room to place the
snow after it has been piled onto the sidewalk. Anderson asked if the City
would be willing to waive the requirement that the snow be removed within
48 hours as required by ordinance. He noted that the State Highway
Department clears the sidewalk within 3-4 days after a snowfall and he
wondered if the removal of snow by state crews would be sufficient.
John Simola, Public Works Director, informed Council that the State is not
required to clear the sidewalks. They can come as late as 5 days after a
snowfall. Most of the business owners along Highway 25 have been able to
comply with the snow removal requirement. Simola noted that removing
snow from the sidewalk to the extent of one shovel width would be sufficient
prior to the State coming in to remove the rest of the snow.
Mayor Maus informed Anderson that the staff and Council would look into
the matter further and respond accordingly.
4. Consideration of an amendment to the zoning maA which would change the
zonin district desi nation of a onion of Lot 4 Block 1 Laurin Hillside
Terrace Addition from R-3 multi~famil residential to PZM erformance
zone mixe ). App~ican,
,, ., t,.. Vaughn, Veit.
Assistant Administrator O'Neill reported that in conjunction with the
proposed re-establishment of a restaurant at the Sixth Street Annex,
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Vaughn Veit requests that the City allow rezoning of a portion of Lot 4,
Block 1, from its present zoning designation (R-3) to PZM. The rezoning is
needed to accommodate additional parking for a proposed restaurant at the
Sixth Street Annex. According to the city ordinance, an additional 56
parking stalls will be needed to accommodate the new restaurant facility.
There is not enough room on the Sixth Street Annex parcel for the 56
spaces; therefore, the spaces must be developed off site on an adjoining
parcel.
U'Neill reported that at a special meeting on February 22, the Planning
Commission reviewed the case and recommended that the rezoning allowing
parking area expansion be allowed to occur. The Planning Commission
recommended that the area rezoned be limited to the perimeter of the
parking lot expansion area. In addition, it was recommended that the lot
lines be adjusted so that the parking area would be combined with the Sixth
Street Annex property and taken away from Lot 4, Block 1.
Council discussion focused on site plan issues relating to parking. There
was a concern that restaurant customers would not park in the rear of the
facility as proposed under the site plan and, as a result, parking problems
would then be created in the front of the building and along Cedar Street.
Brad Fyle noted that we should be very careful not to approve a site plan or
rezoning that would result in on-street parking on Cedar Street. Ken Maus
noted that he has a problem forcing people to the rear of the facility. In
response, it was noted by Judy Leming that the rear of the facility would be
modified to include glass windows and double doors to encourage people to
use the rear entrance of the facility to enter the restaurant.
John Purmort, owner of the Depot in Elk River and owner of the proposed
restaurant, indicated that the restaurant includes on-sale liquor sales. He
noted that no minors are allowed in the restaurant after 9 p.m. without a
parent or guardian. The restaurant features a Ground Round type menu.
It will employ 3Q part-time residents. It is hoped that the restaurant will
become a gathering spot after sporting events. Purmort also noted, as he
has done in Elk River, that he plans on becoming involved in the
community and will be sponsoring various youth athletic programs.
After discussion, a motion was made by Brad Fyle and seconded by Ken
Maus to approve the rezoning request contingent on realignment of lot lines
which result in additional parking area being added to the Sixth Street
Annex. Motion based on information contained within the City Planner's
report and on the finding that the rezoning is consistent with the character
and geography of the area and is consistent with the comprehensive plan.
Voting in favor: Brad Fyle, Ken Maus, Shirley Anderson. Opposed: Clint
Herbst. Abstaining: Patty Olsen.
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Council Minutes - 2/2$/9
In citing his reasons for voting against the rezoning, Councilmember Herbst
noted the potential negative impact on the mall tenants that could be
created by parking conflicts between restaurant parking and retail shop
parking. Herbst also noted that the proposed parking area located toward
the rear of the facility will encroach an the residential zone to the rear and
could have a negative effect on the residential uses. The boundary of the
district as proposed will not be well defined and will result in intrusion into
the residential area, which is inconsistent with the comprehensive plan.
5. Consideration of amendment to a conditional use ermit which would allow
ex ansion of an existin restaurant in a PZM ( erforrnance zone mixed
zone. Applicant, Hillside Partnership.
This item was not addressed at this time due to denial of the previous item.
6. Consideration of ~rantin~ preliminary approval for issuing an on-sale liquor
license for restaurant in the Sixth Street Annex mall.
This item was not addressed due to denial of item #4.
At this point in time, Brad Fyle left the meeting.
7. Continuation of consideration of amendment to contract with D & K for
curb-side recyclin~ services.
John Simola reported that at the last meeting, Council discussed the
possibility of increasing the contract to D & K Recycling by $17 per ton to
recycle newspaper. According to Simola, Randy Linn from D & K has
indicated that it is difficult for the D & K firm to absorb such a significant
cost increase even on a short-term basis. Council chose to table action
pending gathering of additional information.
At the previous meeting, Council questioned whether the increase in cost for
recycling newspaper was offset by increases in revenue for other materials
such as aluminum. According to information provided to Council, revenue
from sale of other recyclied material has not offset the large increase in the
cost to recycle newspaper. Tn his recommendation, Simola noted that as the
Public Works Director, he does not like to see any cost increases; however,
it is in our best interest to work with D & K, as they provide a high level of
service to our community at an economical rate. He recommended that the
City Council amend the contract to compensate D & K for the increase in
the cost to dispose of newspapers stating that the increase will hopefully be
a temporary situation with the market for newspaper improving in the next
few months.
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After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to amend the current contract with D & K Refuse and
Recycling and pay an additional $17 a ton for recycling newspaper on a
temporary basis effective February 1, 1994. Motion carried unanimously
with Brad Fyle absent.
8. Consideration of reviewin ear-end li uor store financial statements.
City Administrator, Rick Wolfsteller, summarized the financial performance
of the liquor store as follows. For the year ending December 31, 1993, total
sales at the liquor store were down approximately $10,300 from the
previous year; however, cost of merchandise also dropped approximately
$20,000, resulting in an increase in gross profit over the previous year by
$10,000. With regard to general operating expenses, expenditures far 1993
showed an increase of $5,300 over 1992. The operating income For 7.993 was
approximately $4,700 higher than the operating income for 1992. Operating
income over expenses amounted to 10%. Total operating income for 1993
was $147,700.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to accept the financial report as presented. Motion carried
unanimously with Brad Fy1e absent.
9. Consideration of reviewing' sketch plans and authorizing' preparation_of
preliminary plat, Outlots C and D, Meadow Oak Estates.
Rick Wolfsteller reported that based on Council action at the previous
meeting, he met with the City Engineer and John Bergh of Loucks &
Associates to review Outlot C and D for the purpose of determining the best
development design far creating spacious residential building sites.
Wolfsteller noted that the proposal would be to create 30 residential lots
that are above-average in size. The layout minimizes the amount of grading
and tree removal and has flexibility built within it to enlarge some of the
lots.
Wolfsteller noted that by continuing with this project and controlling how
the development progresses, the City will experience a number of
advantages. The first one is that it will give us a better chance of
recapturing not only our initial investment in the land but give us the best
opportunity to pay ourselves for same of the lost penalties and interest that
has accumulated over time on this forfeited property. Wolfsteller noted that
the city would not be able to recover penalties and interest if the property
was sold in it present undeveloped condition. Tn analyzing the estimated
cost of improving and marketing the property, it appears very feasible to
not only recapture our initial cost but receive additional funds to pay for
some of the lost penalty and interest we've experienced. Based an estimates
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Council Minutes - 2/2$/94
by our City Engineer far completing street and utility improvements and
allowing for additional funds for grading and platting costs, along with funds
for landscaping, development of entry signs, and also assuming interest
holding casts, the City needs to average $22,000 to $23,000 per lot to cover all
anticipated costs. Due to the fact that the lots will be larger than most late
that are available today and by setting restrictive covenants, the city can be
assured that the homes developed will possess above average market values.
There shouldn't be a problem with the City commanding the type of prices
that will exceed the $22,000 to $23,000 cost to break even. Wolfsteller noted
that according to the existing market, it appears reasonable to expect that we
would be able to get as much as $2$,000 per lat.
Clint Herbst agreed that $28,000 appears to be a reasonable amount to
expect per lot.
Patty Olsen was concerned that all of the City's expenses relating to
development of the site are not included in the cost estimates. Olsen
mentioned that she preferred that the City place the property far sale on the
open market.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to accept the proposed layout as presented and authorize
preparation of a preliminary plat based on the concept design. Voting in
favor of the motion: Clint Herbst, Shirley Anderson, Ken Maus. Opposed:
Patty Olsen. Absent: Brad Fyle. SEE RESOLUTION 94-7A.
Shirley Anderson also noted that the property is for sale at any time and that
the City should consider an outright sale if the buyer guarantees
development of higher value homes and if a price is offered that equals the
initial debt against the property along with penalties and interest.
10.
construction ~r ~'g~.
Jahn Simola reported that on September 27, 1993, at the conclusion of the
public hearing for the alley improvement project in the downtown area, the
City Council voted to establish a committee for the purpose of preparing a
plan for reconstruction of the downtown alleys. At that time Council voted to
establish a committee but did not appoint a Council representative to the
committee. Apparently no one volunteered for the duty.
Council discussed the matter. After discussion, Shirley Anderson
volunteered to serve on the committee.
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11. Consideration of a resolution authorizin feasibilit stud and re oration
of laps for Cardinal Hills Phase N.
Assistant Administrator O'Neill reported that Value Plus developers are
requesting that the City complete public improvements associated with
development of phase IV of the Cardinal Hills subdivision. Development
financing and associated agreements will be nearly identical to the
agreements governing the previous three phases.
After discussion, a motion was made by Shirley Anderson and seconded by
Patty Olsen to adapt a resolution authorizing preparation of feasibility
study and plans and specifications for phase IV of Cardinal Hills residential
subdivision. Motion is contingent on developer providing $25,000 deposit
covering the cost of plans and specifications. Motion carried unanimously
with Brad Fyle absent. SEE RESOLUTION 94-7.
12. Consideration of treatin wastewater trucked in from the Creek Rid e
development in St. Michael.
John Simola reported that Tony Emmerich is developing a residential area
in the city of St. Michael known as Creek Ridge. The MPCA will not allow
any additional sewage from Creek Ridge to enter the City of St. Michael's
wastewater treatment facility, as it is currently at capacity. The City of St.
Michael is in the process of rebuilding their wastewater treatment plant to
increase capacity and should go on line with the expanded facility in early
1995. Emmerich has requested that the City of Monticello consider treating
the domestic sewage from Creek Ridge. Under Emmerich's proposal,
sewage would be trucked in to our wastewater treatment plant Monday
through Friday during regular business hours.
Simola reported that the current policy far serving residences outside the
city limits requires payment of a sanitary sewer fee three times the normal
fee . Simola noted that he could see no reason why the City couldn't assist
Mr. Emmerich in this case, since we do have the capacity available at the
wastewater treatment plant. We are currently talking to PSG to see if
there would be any additional unexpected casts on their part to handle the
waste.
After discussion, a motion was made by Clint Herbst and seconded by
Shirley Anderson to assist Emmerich in his St. Michael development and
employ the existing policy for charging non-residents to utilize the City's
wastewater treatment plant. Treatment of waste from Creep Ridge would
be allowed to occur until such time that St. Michael completes its
wastewater treatment plant expansion or such time that waste treatment
proves to create a problem at the City of Monticella's treatment plant.
Motion carried unanimously with Brad Fyle absent.
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Council Minutes - 2/28/94
At this point in the meeting, John Gries, representing the Hillside Partnership,
requested that the City Council consider approval of the conditional use permit
allowing expansion of the Hillside mall (item 5):
5. Consideration of amendment to a conditional use ermit which would allow
ex ansion of an existin restaurant in a PZM erformance zone mixed
zone. A licant Hillside Partnershi .
In his proposal, Gries suggested that the Hillside Partnership would be
willing to allow a portion of the Sixth Street Annex to remain vacant in
order to keep the parking stall requirement at a level that the site, as it
now exists, could accommodate. Gries suggested that by leaving 9,100 sq ft
of retail space vacant, the site as it now exists could accommodate the
restaurant use along with the existing uses on site. It was noted that this
alternative would allow the restaurant facility to be established, which
would result in a better understanding of parking demand and patterns.
This practical information regarding parking demand would be useful when
addressing fiill utilization of the structure at some point in the future.
Clint Herbst indicated that the alternative propased is a good solution as
long as the developer is willing to leave a portion of the building vacant.
Rick Wolfsteller was concerned that the short term solution as proposed will
not solve the problem and that it was unrealistic to expect that the
developer would be supportive of leaving 9,100 sq ft of building vacant far
any length of time. It is likely that as saon as a tenant is interested in
filling the space, another amendment request to the zoning ordinance will
be forthcoming.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to approve a conditional use permit allowing expansion at a
restaurant in a commercial mall in a PZM zone. Approval of the conditional
use permit subject to the following conditions:
1. 9,100 sq ft of space available for occupancy within the mall shall be
left vacant for the purpose of maintaining a parking demand that
matches the existing capacity of the parking lot.
2. To improve security and to create an appealing entrance point,
windows and double doors shall be installed in the rear of the
structure facing the parking area.
3. Additional lighting shall be provided in the. rear of the facility to
improve security.
4. Parking along the front of the building shall be limited to 15-minute
parking only and signed accordingly.
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Council Minutes - 2/28/94
5. All other conditions noted by ordinance and noted in previous
conditional use permits.
Motion to approve the conditional use permit based on the finding that the
expansion of the restaurant is incidental to the commercial use of the
structure and is acceptable in a PZM zone when operated in a commercial
mall setting. The operation of the restaurant, under conditions as noted,
will result in a use that is compatible with the area and will not result in a
depreciation of adjoining values. Voting in favor: Clint Herbst, Shirley
Anderson, Ken Maus. Abstaining: Patty Olsen. Absent: Brad Fyle.
Shirley Anderson was concerned that the absence of Brad Fyle would have
an impact on the validity of the vote and requested that staff research the
matter.
6. Consideration of ~'rantin~ nreliminarv annroval for issuing an on-sale liauor
license for restaurant in the Sixth Street Annex mall.
Rick Wolfsteller reported that John Purmort of Elk River will be the owner
of the restaurant proposed within the Sixth Street Annex. As part of the
operation, he is requesting an on-sale liquor license. Wolfsteller noted that
the sit-down restaurant proposed will have a sandwich menu and home-
baked pizza with a local sports motif. Purmort currently operates the
Sunshine Depot restaurant in Elk River that also has an on-sale license.
The operation has been in existence far 15 years; and according to the
background check completed, there appears to be no problem that would
prohibit Mr. Purmort from having an on-sale license in Monticello.
Wolfsteller noted that the purpose of Council action is to provide Purmort
with a preliminary idea as to potential of an approval of the liquor license.
Prior to formal approval, a public hearing will need to be conducted, which
is scheduled for the next meeting of the City Council.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to grant preliminary approval to issue an on-sale license to
Mr. Purmort contingent on successful completion of the public hearing
requirement. Furthermore, the investment of the building and lease
improvements meet minimum investment requirements ($200,000). Voting
in favor of the motion: Clint Herbst, Shirley Anderson, Ken Maus.
Abstaining: Patty Olsen. Absent: Brad Fyle.
13. Consideration of uudatin~ the utility billin system.
City staff requested that Council consider making an upgrade to the utility
billing system in the amount of $4,352 for the purpose of improving
response time and information accuracy.
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Council Minutes -2/28/94
After discussion, a motion was made by Clint Herbst and seconded by
Shirley Anderson to authorize improvements to the utility billing system at
a sum not to exceed $4,352. Motion carried unanimously with Brad Fyle
absent.
14. Consideration of urchasin Planfile s stem for ma stora e.
Karen Doty requested that Council authorize purchase of a new storage
system to upgrade the existing hanging file system. She noted the current
system has served its purpose of the last five years in helping organize and
store maps in an orderly fashion; however, because it's an open storage
system, the maps are not protected. In addition, the system requires that
many maps be clipped together so that if one map is needed, the entire
group of maps in that section must be taken apart in order to take the one
map needed, or the entire section of maps must be transported to the office
or meeting where the map is needed. The result is many maps being moved
around unnecessarily which results in damage to the maps. The system
itself is showing wear, as the knobs that tighten groups of maps into place
are breaking off, making it very difficult to remove and file maps.
Doty went on to propose a Planfile system that places maps in large "file
folders." Maps are stored vertically in an enclosed cabinet which contains
flexible canvass pocket bottoms that grip the folders to prevent the bottom
edge of drawings from curling.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to authorize staff to purchase a Planfile system from CET of
Minneapolis at a cost of $3,029.92. Motion carried unanimously with Brad
Fyle absent.
15. Consideration of special meeting or workshop for wastewater__treatment
plant expansion planning.
After discussion, a special meeting was scheduled far 2:30 p.m. on
March 11, 1994.
16. Consideration of annual Junk Amnesty Day on May 7, 1994.
After discussion, a motion was made by Clint Herbst and seconded by
Shirley Anderson to authorize City staff to hold the 7th Annual Junk
Amnesty Day on May 7, 1994. The 1994 amnesty day to not include
acceptance of fluorescent light bulbs and to include acceptance of demolition
materials with an accompanying charge. Motion carried unanimously with
Brad Fyle absent.
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17. Consideration of demolithin the Cole house near cit hall.
John Simola informed Council that it is clear that the cost to refurbish the
Cole house for rental is high, relative to the potential revenue that could be
obtained through renting the facility. In addition, more damage has been
done to the building and interior, and it is becoming a liability for the City.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to authorize staff to advertise for demolition removal of the
Cole house. Motion carried unanimously with Brad Fyle absent.
18. Consideration of replacement of 1978 International heavy duty snowplow
truck.
John Simola reported that the public works department is proposing to
replace the 1978 International snowplow truck. The truck is equipped with
a 6-yd dump box, asander, aside-mounted wing, and 11-ft front plow. Over
the past several years, it has broken down on numerous occasions and is no
longer reliable. Simola noted that the cost to replace the truck was
budgeted at $62,000 and approved for the 1994 budget.
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u
After discussion, a motion was made by Clint Herbst and seconded by Patty
Olsen to authorize advertisement for bids for a new heavy duty dump truck
with snowplow equipment, with the truck being bid separately from the
dump body and snow equipment. Motion carried unanimously with Brad
Fyle absent.
19. Consideration to adopt a resolution calling for a public hearing for
modification of Redevelo ment Plan for Redevelo ment Pro'ect No. 1
modification of TIF plans For TIF Districts No. 1-1 to 1-15, and the adoption
of the TIF plan for TIF District No. 1-16 (Polycast_Manufacturin~;2.
Ollie Koropchak reported that the TIF plan for Polycast includes
construction of a 16,640 sq ft metal office production facility on 4.4 acres of
industrial land in the Oakwood Industrial Park. The up-front TIF
assistance of $55,000 will write-down the land cast for the property.
Projected employment is 20. The minimum estimated market value for the
land and building is $400,000. Koropchak noted that copies of the TIF plan
were distributed to the school, county, and hospital district. The HRA will
hold a public hearing on the acquisition and disposition of the raw lands
and adopt a resolution relating thereto and adopt a resolution on the TIF
plan an March 2, 1994.
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Council Minutes - 2/28/94
After discussion, a motion was made by Clint Herbst and seconded by
Shirley Anderson to adopt a resolution calling for a public hearing on
March 14, 1994, for TIF District No. 1-16. Motion carried unanimously with
Brad Fyle absent. SEE RESOLUTION 94-3.
20. Consideration of a rovin a lication for arnblin license renewal -
Monticello Jayicees.
After discussion, a motion was made by Shirley Anderson and seconded by
Clint Herbst to accept the summary report presented by the Monticello
Jaycees and adopt the resolutions approving application for renewal of each
of the three gambling licenses for the Monticello Jaycees. Motion carried
unanimously with Brad Fyle absent.
SEE RESOLUTIONS 94-4, 94-5, AND 94-6.
21. Consideration of bills for the month of February.
After discussion, a motion was made by Clint Herbst and seconded by Patty
Olsen to approve payment of bills as submitted. Motion carried
unanimously with Brad Fyle absent.
22. Other matters.
A. Ollie Koropchak reported that a slight inconsistency exists between
the state funding program and the Greater Monticello Enterprise
Fund associated with the funding program supporting financing of a
piece of equipment that will be used at the Standard Iron site. She
noted that the state and CxMEF funds will be used jointly to fund
purchase of a major piece of equipment used by Standard Iron.
Under the state program, it is required that the term of the loan
must be 10 years, while the Greater Monticello Fund Guidelines state
that generally the term should be 7 years or for a period not
exceeding the life of the equipment. According to State rules, the
term of the loans must be the same. Koropchak asked Council if it
was comfortable with using GMEF funds for purchase of equipment
with a term of 10 years.
After discussion, a motion was made by Clint Herbst and seconded by
Shirley Anderson to allow a Greater Monticello Enterprise Fund loan
For equipment to be issued with a term period of 10 years. Motion
carried unanimously with Brad Fyle absent.
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B. City Council discussed the issue brought forward at the public
comments section of the meeting. It was the general consensus of the
City Council to maintain the existing policy that requires individual
property owners along Highway 25 to clear sidewalks. However, in
the case of Century 21 Realty, due to the limited snow storage area
and due to the fact that the State Highway Department clears the
area of snow within 5 days of a snowfall, it is not necessary that the
entire sidewalk be cleared within 24 hours. Removal of snow to the
extent of one shovel width is sufficient. This modified snow removal
requirement applies to Century 21 Realty only.
C. City Engineer, Bret Weiss, reviewed the status of the transportation
study. Council reviewed various roadway segments and intersections
and identified three critical problem areas that the study should focus
on. The three areas are as follows:
1. Development; of an interchange at County Road 118 and 94.
2. Improvement of traffic circulation in the area of Highway 25
and at the intersection of Highway 25 and Oakwood Drive and
Dundas Road and Highway 25..
3. Improvement of CSAH 75 and Hart Boulevard between the
high school and County Road 118.
There being no further discussion, the meeting was adjourned.
J eill
Assistant Administrator
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