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City Council Minutes 07-25-1994MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, July 2fi, 1994 - ? p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Patty Olsen, Warren Smith Members Absent: None 2. Approval of minutes. Warren Smith requested that the last paragraph of item #7 identify the historical significance behind changing the street name from Service Drive to Hart Boulevard. Smith also requested that item #$ be amended to show a 3 to 1 vote as follows: Warren Smith, Clint Herbst, Shirley Anderson voting in favor, Brad Fyle voting against, and Patty Olsen absent. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to approve the minutes of the regular meeting held July 11, 1994, with changes as noted. Voting in favor: Shirley Anderson, Brad Fyle, Clint Herbst, Warren Smith. Abstaining: Patty Olsen. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. I. Public Hearin --Consideration of im rovement to 7th Street between Pine Street and Cedar Street, City Proiect 94-03C. II. Consideration of thane order with Cardinal Hills IV ro'ect for im rovements to 7th Street and Cedar Street/Oakwood Drive reali ment Cit Proiect 94-03C. Mayor Fyle opened the public hearing. John Simola, Public Works Director, reported that the change order came in less than what was reported in the agenda item. Brad Fyle asked if AmericInn would be assessed eventually even though it is not located directly an 7th St. Rick Wolfsteller, City Administrator, noted that typically, only the property abutting the street pays an assessment. This case is unique because AmericInn has an easement over Taco Bell property for driveway access to the motel. O'Neill added that there is an agreement between AmericInn and Taco Bell governing joint use of the access that may address responsibilities far paying assessments. Page 1 Council Minutes - 7/25/94 No comments were forthcoming from the public. Mayor Fyle closed the public hearing. A motion was made by Shirley Anderson and seconded by Warren Smith to approve the change order for an increase of $42,804 and order the improvements to both Cedar Street and 7th Street. Motion carried unanimously. 5. Consideration of a variance request to allow a pylon sign to be erected above the 32-ft maximum height allowed. Applicant, SuperAmerica Group. Mayor Fyle stated that the Planning Commission approved the variance request to allow SuperAmerica to erect a pylon sign at a height of 55 ft, and the item has been appealed and brought to Council for review. Jeff O'Neill, Assistant Administrator, reviewed the variance request and noted that a similar request was made by Subway Shop in 1991 and that the Subway Shap request was denied based on the failure to demonstrate a hardship. Council is now asked to determine if a hardship exists that would justify the SuperAmerica sign height in excess of zoning ordinance maximums. If Council cannot find a unique situation or hardship but wishes to allow the higher sign, then it should consider amending the ordinance to allow higher signs. Tim Keane, counsel representing SuperAmerica, reviewed the background of the farmer Vance's Amoco site and the proposed redevelopment. SuperAmerica thought they had a pylon until Amoco hauled it off the site, which is what precipitated this request. He described the hardship as being created by topographic conditions, etc., and that SuperAmerica provides service to I-94 travelers. He noted that reasonable use of the property cannot be achieved without a pylon sign visible to freeway travelers. Keane then reviewed pictures of a balloon study, and also a picture of an existing SuperAmerica sign used in Vadnais Heights to show what the sign in Monticello would lank like. Weingarden asked if 5uperAmerica has already purchased the property. Keane responded that there is a purchase agreement but it hasn't closed yet, as it is contingent on approval of this variance request. Weingarden explained that SuperAmerica must show undue hardship, not econonuc, and asked Keane to give specific reasons why SuperAmerica can't make reasonable use of the property without approval of the variance. Keane reported that the site is for a business use that depends on freeway trafl"ic. Weingarden asked if they could explain why other Super.America stores without a high pylon sign have succeeded in other areas. Keane responded that other stores have a residential base in addition to the freeway exchange. The Monticello store does not have a residential base to support the store. Page 2 Council Minutes - 7/25/94 They are not on the "town" side of the freeway, which makes them uniquely dependent upon freeway traffic. Weingarden asked if they have done a study on Highway 25. Keane responded that they have not. Weingarden then explained to Council members that undue hardship must be shown and that if they choose to grant a variance, they should only grant the minimum necessary to permit reasonable use of the land. He stated he's not sure if the "town" side of the freeway is a valid hardship. Brad Fyle stated that he agreed with the "town" side hardship due to freeway traffic--32 ft is not visible. Clint Herbst asked where the balloon was located For the study. Keane stated it was located at the site of the former Amoco pylon sign. Herbst stated that SuperAmerica would be located right on the freeway. Subway is out from the freeway and they don't have a higher sign. The approach signs on the freeway tell where gas, food, etc., are located, and travelers would see everything once they exit to Highway 25; therefore, he doesn't agree with the need for a pylon sign in excess of the maximum allowed by ordinance. Shirley Anderson stated that the Council should either deny the request or change the ordinance to allow higher signs. Tim Keane stated that they won't challenge the Council's decision, they will just rethink the site. Weingarden stated that Council needs to be concerned about a deluge of requests from 15 other businesses for the same thing; what makes this request different? Keane responded by stating that the property is specifically designed to be a "freeway commercial service" site; without sign visibility from the freeway, it is not viable .for this purpose. Warren Smith asked what percent of business they anticipate from the freeway and what percent from town. Keane answered that they expect the majority of their business from the freeway. Weingarden then stated that he could help with preparation of findings if SuperAmerica doesn't need a decision tonight. Keane stated they don't need one tonight. A motion was made by Clint Herbst and seconded by Shirley Anderson to deny the variance request based an the finding that no unique situation or hardship exists to justify the variance. Warren Smith stated that he is in favor of granting the variance and will vote against the motion because he agrees with the topographic hardship, and it is consistent with the surrounding neighborhood. Patty Olsen agreed with Smith. Vating in favor of the motion; Clint Herbst, Shirley Anderson: Opposed: Warren Smith, Brad Fyle, Patty Olsen. Motion did not pass. Page 3 Council Minutes - 7/5/94 A motion was then made by Warren Smith and seconded by Patty Olsen to approve the variance request to allow a pylon sign to be erected to a height of 55 ft based on the following findings as prepared by the City Attorney and reviewed at the subsequent Council meeting: 1. The property in question is situated within the freeway bonus area and, in addition, is located adjacent to Highway I-94 in the Tri-Plaza subdivision. 2. The Tri-Plaza subdivision site is uniquely oriented toward high traffic volume/freeway based commercial activity requiring visible sign locations to be economically viable. 3. Such larger commercial operations which require heavy freeway traffic should be located adjacent to the freeway so as to prevent heavy traffic flow into the interior of the city. 4. The site elevation of the SuperAmerica parcel is lower than surrounding properties. 5. The placement of a sign visible to the traveling public on Highway I-94 should be high enough sa as to be visible at a point prior to the exit ramp to allow for safe vehicular traffic egress from Highway I-94. 6. SuperAmerica Group will suffer an undue hardship which denies the reasonable use of the land unless a variance to the sign regulations is permitted in this particular situation. Voting in favor: Warren Smith, Patty Olsen, Brad Fyle. Opposed: Clint Herbst, Shirley Anderson. Motion passed. City Attorney Weingarden noted that he would like Council to authorize him to prepare findings based on the discussion and points made tonight. A motion was made by Warren Smith and seconded by Patty Olsen to authorize City Attorney Paul Weingarden to prepare a statement of findings regarding approval of the variance. Motion carried unanimously. 6. Consideration of vacating a portion of former Trunk Highway 25 to SuperAmerica Group and vacate a portion of the old Cedar Street utility and drainaee easement. Jeff O'Neill, Assistant Administrator, reviewed the request by SuperAmerica to vacate a 15-ft strip of the d0-ft utility easement on the old Cedar Street and the entire section of former Highway 25. O'Neill noted that Council should Page 4 Council Minutes - 7/25/94 consider requiring SuperAmerica to enter into an agreement to accept future liability for costs associated with repairing or replacing private site improvements impacted by future city improvements. Brad Fyle asked if there are any utilities located in this area. O'Neill reported that there is a telephone line, and John Simola, Public Works Director, stated there is a water main stubbed in that direction. After discussion, a motion was made by Clint Herbst and seconded by Patty Olsen to approve vacating a 15-ft section of the old Cedar Street utility easement and to vacate the entire portion of the old Highway 25 right-of--way, and also to require SuperAmerica to enter into an agreement accepting future liability for future costs associated with repairing or replacing private site improvements impacted by future city improvements constructed in the remaining 45-ft easement area. Motion carried unanimously. SEE RESOLUTIONS 94-27A AND 94-27B. 7. Consideration of ado tin an ordinance licensin and re latin the sale of tobacco within the city of Monticello. Mayor Fyle reviewed the request that the City adapt an ordinance regulating the sale of tobacco within the city and asked if there was any discussion on this subject. Rick Wolfsteller, City Administrator, reported that a state law passed in 1990 outlined where cigarette vending machines could be located. Recently, Patrice Bogart appeared before Council requesting that an ordinance be established that would not only license cigarette vendors but also restrict where sales could occur and, hopefully, outlaw vending machines entirely. Two options have been put together, the first of which would require licensing the sale of tobacco with the possibility of losing the license if convicted of selling to minors. The second option would require licensing, reinforcement of state statutes on vending machines, and not allowing stores to have items easily accessible. To license tobacco sales just for the revenue doesn't do much good without enforcement in our ordinance, as there is no penalty stated in the statutes. Comments from the public included those from Glenn Nemec, who noted that if cigarette packs are stolen, this gives a minor his/her first taste and first nicotine. They would like a strong message sent to the youth. Patrice Bogart stated that tobacco companies pull advertising fees if items are not displayed. Jahn Young stated that a study was done with 16 year olds, and they found a 75% success rate for this age obtaining tobacco products. He also noted, however, that the Hi-Way Liquors establishment did comply with the law and did not sell tobacco products to minors. Emily Satterstrom also stated that it is very easy for young people to buy cigarettes. Page 5 Council Minutes - 7/25/94 Patty Olsen commented that she agreed with licensing but was concerned about hurting businesses. City Attorney Weingarden explained to Council that the seller is criminally liable for selling to minors, enforcement is up to the police, and the ordinance would create an economic detriment to the owner/seller far breaking the law. Warren Smith noted that maybe the Police Commission should discuss this topic at their August meeting. After further discussion, a motion was made by Clint Herbst and seconded by Patty Olsen to adopt an ordinance amendment licensing the sale of tobacco products, to clarify where vending machines will be allowed, and also to eliminate self-service sales. The annual fee for the license is set at $25. Voting in favor: Clint Herbst, Shirley Anderson, Patty Olsen, Warren Smith. Opposed: Brad Fyle, as he felt licensing only would be sufficient. SEE ORDINANCE AMENDMENT NO. 253. City Attorney Weingarden asked Council to set an effective date and noted that staff should notify businesses. A motion was made by Shirley Anderson and seconded by Patty Olsen to set January 1, 1995, as the date tobacco licensing will become effective. Motion carried unanimously. 8. Review of liquor store six month financial statement. Joe Hartman, Hi-Way Liquor Manager, was present to review the financial statement with Council. After discussion, it was the consensus of Council to accept the six-month report. Joe Hartman then explained that they are in need of expanding the cooler at the liquor store. Currently, the truck driver puts the beer in the back room because the cooler is full. After discussion, it was the consensus of Council that Hartman should get cost estimates and bring this item back to Council. 9. Consideration of installation of electrical um lockouts for rotection of the second sta a di ester at the Wastewater Treatment Plant WWTP . Jahn Simola, Public Works Director, explained the reason for designing an electrical lockout system for the second stage digester that wauld have to be physically overridden to pump sludge from the digester once the cover has been lowered. This would help eliminate air being accidentally drawn into the second stage digester, which would cause a more corrosive atmosphere inside Page 6 Council Minutes - 7/25/94 the tank and the possibility of a more volatile gas mixture. He noted that only one proposal was received for installation of the lockouts, which was from Olson & Sons Electric far $3,223.50. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to authorize Olson & Sons Electric to install the electrical pump lockouts for $3,223.50. Motion carried unanimously. 10. Consideration of aunroval of annual MPCA Wastewater Treatment Plant survey. Mayor Fyle stated that this survey was voluntarily completed last year also. Public Works Director Simola noted that the survey is mandatory this year. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the report as drafted. Motion carried unanimously. 11. Consideration of adopting a resolution of residential antidisplacement, relocation assistance and dis lacement minimization lan for Monticello. Ollie Koropchak, Economic Development Director, explained to Council that this item is a procedural requirement associated with applying for Community Development Block Grant funds to be used in conjunction with the H-Window Company expansion. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to adopt a resolution of residential antidisplacement, relocation assistance, and displacement minimization plan. Motion carried unanimously. SEE RESOLUTION 94-24. 12. Consideration of adopting a resolution of compliance with Federal _Housing and Urban Develo ment HUD re uirements. Economic Development Director Koropchak stated that this item is required as part of the process of applying for Community Development Block Grant funds to be used in conjunction with the H-Window Company expansion. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to adopt a resolution of compliances with Federal HUD' requirements. Motion carried unanimously. SEE RESOLUTION 94-25. 13. Consideration of approving an application for_a_gambling license at J.P.'s Annex--Monticello Lions Club. Shirley Anderson stated that there should be no problems here if there have been no problems anywhere else with gambling licenses held by the Lions Page 7 Council Minutes - 7/25/94 Club. Administrator Wolfsteller noted that the Lions have never had a gambling license in the city prior to this. Brad Fyle stated the Lions Club is committed to the city and sees no problem with the license. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to adopt a resolution approving issuance of a gambling license to the Monticello Lions Club. Motion carried unanimously. SEE RESOLUTION 94-26. 14. Cit_y_Council update--old fire hall renovation for Motor Vehicle Department. Shirley Anderson noted that she had received a phone call from someone concerned that people coming to the Help Center can be observed by people using the motor vehicle services. John Simola, Public Works Director, explained that the Help Center area within the building will nat be open to the public, only to motor vehicle employees. Staff is proposing to rough-in a kitchenette and restroom in conjunction with the remodeling because if the motor vehicle office ever moves back to city hall, we would complete the restroom and be able to rent the space. When the restroom is completed, the door used to access the Help Center restroom would then be closed off. Simola went on to say that they would like authorization to proceed with the remodeling project. Staff has received some bids, which need to be reviewed; however, staff is comfortable that the project will be between $25,800 to $30,000, without furniture. Brad Fyle asked if the counter space is separate ar included in that cost. Simola replied that it is separate. It includes everything except the counters and desks. The total cost of the project to date is $25,270. Gary Anderson, Building Official, stated that staff is estimating completion in four weeks but could be up to six weeks. Simola stated he would like a clarification from Council on installing the restroom. Ifmoney is available, should staffinstall the bathroom at this time? Shirley Anderson stated she thought the restroom should be put in now. Clint Herbst noted that since the existing Help Center is accessible to motor vehicle staff and is only 15 ft away from the motor vehicle office, staff should only rough-in the restroom at this time and finish it later when or if it is needed. Gary Anderson noted that the costs could be brought back to Council once they are all in. Administrator Rick Wolfsteller reported that the Social Services Board asked to meet with him once the costs are together. They are not in favor of the Page 8 Council Minutes - 7/25/94 general public using any part of the facility used primarily by the Help Center. Walfsteller also noted that we need to receive approval from the State of Minnesota to move the motor vehicle office. After discussion, it was the consensus of Council to move ahead with the remodeling once we have received authorization from the State of Minnesota and authorized that the restroom facility be roughed-in in anticipation of completion at a later date. 15. Consideration of a ointin a re lacement For Utilit Billin Clerk/Receptionist. Jeff O'Neill, Assistant Administrator, explained that the Utility Billing Clerk/Receptionist position left vacant by Wanda's appointment to another position within the City was posted internally, and staff received two applications for the position, one from Kelly Theis and one from Pat Kovich. Interviews were held today, and staff recommends appointing Pat Kovich to the position due to her accounting background, her past performance in working with the public, and she would present a positive image for the City. This would be a lateral move, and the probation period would be six months. After discussion, a motion was made by Patty Olsen and seconded by Shirley Anderson to appoint Pat Kovich to the Utility Billing Clerk/Receptionist position, and to hire two part-time employees from the current part-time motor vehicle applications to fill Pat's vacancy in the motor vehicle department. Motion carried unanimously. 16. Consideration of advertising in Fall Parade of Homes booklet--Subur_ban_ Northwest Builders Association. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to not advertise in the Fall Parade of Homes booklet. Motion carried unanimously. 19. Consideration of bills for the month of July. Warren Smith asked if check #36958, tree replacement, was for Dutch Elm and if so, for how many trees. Roger Mack, Street/Park Superintendent was not in attendance; however, Building Official Gary Anderson stated he thought it was the same as last year, maybe a little more. Jahn Simola noted that a fair amount was streetscape. Smith also inquired about check #36994, Aroplax. Rick Wolfsteller noted that it was apre-approved loan. Page 9 Council Minutes - 7/25/94 Shirley Anderson asked if the double billing shown on last month's list of bills was reimbursed. Wolfsteller noted it was not double-billed, just listed twice. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to approve the bills as submitted. Motion carried unanimously. 18. Cit Council U date--Meadow Oak storm sewer outlet. Bret Weiss, City Engineer, reviewed the status of this project and explained that no plans have been sent yet but will be available on Friday, with bids due on August 12. At this time, we have received no direct comitments from MN/DOT, Wright County, or Monticello Township regarding participation in the project. Brad Fyle noted he would like to see the project ga through as planned. Weiss stated he would like to have the Administrator send letters to the governing bodies and use the current estimates for their public hearings, as it is not necessary for them to wait for the bids to be returned in order to hold their hearings. Brad Fyle stated he would be willing to meet with the other governing bodies. Shirley Anderson stated that if she is available on the meeting date set, she will also attend. After discussion, it was the consensus of Council to have the City Administrator send a letter to MN/DOT, Wright County, and Monticello Township requesting that they complete the necessary public hearings so that they are able to offer comments to the Council an or before August 22, 1994. 19. Other matters. A. Consideration to adopt a resolution calling for a public hearing for the modification of the Redevelo ment Plan for Redevelo ment Project No. 1, modification of the TIF Plans for TIF District Nos. 1-1 to 1-16, and ado tion of the TIF Plan for TIF District No. 1-17 Fa -Mar . After discussion, a motion was made by Clint Herbst and seconded by Warren Smith to adopt a resolution calling for a public hearing for the modification of the Redevelopment Plan for Redevelopment Project No. 1, modification of the TIF Plans for TIF District Nos. 1-1 to 1-16, and adoption of the TIF Plan for TIF District No. 1-17 (Fay-Mar). Public hearing date is set for August $, 1994. Motion carried unanimously. SEE RESOLUTION 94-27. B. Mayor Fyle noted that he had received a copy of the Attorney General's Opinion stating that there was not a conflict of interest on Patty Olsen's Page 10 Council Minutes - 7/25/94 vote of the Emmerich rezoning issue. The City Administrator will forward a copy of the Attorney General's Opinion to Monticello Township. C. At this point in the meeting, Patty Olsen presented a letter of resignation to Council and staff effective immediately. She noted she will be putting a letter of explanation in the city newsletter. Mayor Fyle noted that Council would like to review the letter before it is printed in the newsletter. Then he thanked her for her service on the Council. At this time, Patty Olsen left the meeting. Mayor Fyle stated that we are now short a Council member and asked if there are any recommendations. Administrator Wolfsteller noted that this position will be on the ballot this fall to be filled until the end of the term. There will be four Council vacancies on the ballot this year. Mayor Fyle recommended that staff advertise in the newspaper For applications to fill the position. Shirley Anderson asked if it is possible to operate with only four Council members for the rest of the year. Wolfsteller replied that it is possible, but it could present problems an issues requiring 4/5 vote. After discussion, it was the consensus of Council to advertise for applications for the Council member position and bring this item back for consideration at the first Council meeting in August. D. Administrator Wolfsteller noted that there is a problem with cluster mailboxes in the Oak Ridge development. There must have been one damaged in the past, as the past ofl"ice does not want to provide the metal boxes anymore. Residents have been told to install their own box; however, cluster boxes are required by ordinance in new developments. Walfsteller asked for authorization to remind the post office that cluster boxes are required by ordinance. Warren Smith asked if we compensated for the damaged mailbox. John Simola responded that the cost of the mailbox was reimbursed, but labor and landscaping are not replaced. Smith suggested staff try and resolve it. After discussion, it was the consensus of Council that the City Administrator send a letter to the Monticello Postmaster stating that the City will be continuing their policy of cluster mailboxes in new residential subdivisions. Page 11 Council Minutes - 7/25/94 E. John Simola reviewed the Meadows ditch project, noting the material prices and engineering fees. The approximate total cast, including insurance, is $11,200. The budget included $10,000 for the project. Simola requested authorization to go ahead with the project. Brad Fyle asked if there are assessments with this project. Simola responded that if the project is around $10,000, there would be no assessments. After discussion, it was the consensus of Council to authorize staff to go ahead with the project as authorized previously. There being no further discussion, the meeting adjourned. U re Doty Office Manager J Page 12