City Council Minutes 10-13-2003 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, October 13, 2003 - 5 p.m.
Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen.
Members Absent: None.
Staff Present: Chris Hood, legal counsel, Steve Grittman, City Planner, Kevin Kawlewski,
City Engineer, Rick Wolfsteller, City Administrator, John Simola, Public
Works Director and 011ie Koropchak, Economic Development Director
1. Call the special meeting to order.
Mayor Thielen called the meeting to order and explained the purpose of the workshop meeting
was to discuss issues relating to growth.
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.
Mayor Thielen briefly summarized the Monticello Orderly Annexation Agreement which had
t governed the City's annexation practices for the past 30 years. With the orderly annexation
agreement no longer in effect, the City is currently processing annexation requests under state
statutes. In an effort to do long term planning, Bruce Thielen and Brian Stumpf were
appointed to work with staff and township officials to explore options that were available. On
August 25, 2003 there was a joint meeting of the City and Township officials regarding
annexation issues. A number of options were discussed but no conclusion was reached. City
Administrator, Rick Wolfsteller, wrote to the township requesting them to respond by
September 30, 2A if they were interested in continuing discussions on annexation options.
There was no response by the township by the September 30, 2003 deadline which prompted
the scheduling of this workshop meeting.
The Council reviewed a map showing the current city boundary in red and property owners
who had petitioned for annexation in blue. The yellow line represented the township border
and the green line represented the long term planning area for the Council to look at.
Presently the City contains approximately 4,700 acres. The long term planning area contains
approximately 11,000 acres. If the total area was annexed, the City's land area would be
approximately 15,700 acres. The township currently has about 31,000 acres and would drop
down to 20,000 acres if the entire long term planning area was annexed. Most of the property
in the long term planning area is undeveloped land.
Rick Wolfsteller stated that the future interchange at CSAH 18 and I-94 would impact growth
in the area. The City needs to look at how to plan for this area and to provide for the
infrastructure to handle that demand. Rick Wolfsteller indicated that the City's wastewater
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treatment plant even with an expansion would not be able to handle the additional 11,000
acres. It is estimated that with the expansion, the wastewater treatment plant could handle the
flows for a population of 25,000-30,000.
At the joint meeting with the township officials there was discussion on the land use plan for
the township with township officials indicating they would be looking at some larger lot
developments. This would impact the City's expansion and how they would plan for
infrastructure needs. With facilities like the wastewater treatment plant where there is an
investment of several million dollars it is important for the City to know what area they can
serve. If there is no joint agreement with the township how can the City ensure that there are
no roadblocks to development. Merger or consolidation would be one option. Designating an
area that could be annexed would allow property owners to know how their property could be
developed. Bruce Thielen said one question that would come up is how ag land coming into
the City would be taxed. The City could create different taxing districts based on services
provided. The property could be brought into the City incrementally but at the least the City
could plan their facilities. Bruce Thielen noted the governor is urging communities to be
creative in governing efficiently. The annexation of the long term growth area would allow
the City to plan for infrastructure, control green space and more effectively deal with issues
such as discharging to county ditch #33.
Robbie Smith asked about the interchange and also Fallon Avenue and pointed out that
County Road 37 could end up being a major road as far as traffic volume. There is long term
planning that needs to be addressed as far as transportation issues. Brian Stumpf commented
on the green boundary line of the long term planning area and questioned whether in setting
that boundary line the City had verified that no parcels were being split. He felt it was
important that property owners have their entire parcel either in the boundary area or entirely
outside it. The staff concurred that where possible it made sense to include entire parcels but
they cautioned against the having the line too fragmented. Chris Hood pointed out that the
south boundary of the long term annexation area ran along County Road 37 and it is common
to use roads as boundaries. Chris Hood felt the resolution could be amended to cover those
types of cases where there were split parcels. Chris Hood stated the issues to consider were:
1) Area of annexation to be considered. The city needs to look both immediate and long term.
Chris Hood noted currently around the metro area there has been a number of
merger/consolidations citing specifically St. Michael and Frankfort Township and St. Cloud
and St. Cloud township. Chris Hood said a merger between the City and township would be
best and if that could not be accomplished the contested annexation would be the best route.
Brian Stumpf questioned what would be the process if the City proposed to annex more than
the area in the long term planning area. Chris Hood stated that if the contested annexation
goes to a judge, the city would have to present evidence showing that the annexation meets
certain criteria. Chris Hood felt from a legal standpoint the best case would be for City to
annex the area set out. The contested annexation is the best option at this point. Bruce
Thielen noted that if the resolution is adopted a mediator would be selected to work with the
city and the township to mediate this issue. Brian Stumpf asked if the judge established the
boundary line could the city go outside this boundary line if a property owner petitioned for
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annexation. Chris Hood said they could using the same 60 acres process that is presently used
by the city.
Chris Hood summarized the process 1) determine land area; 2) adopt resolution at regular
council meeting 3) the department of administration would set a hearing usually within 30 to
60 days 4) hearing is continued to allow mediation which could last from 60-120 days. The
purpose of mediation is to work out a settlement agreement. Chris Hood noted contested
annexations are time consuming, expensive and divisive.
Chris Hood reviewed the decision standards and criteria for annexation. The judge has 90
days to make a decision after all the evidence has been presented. The judge can increase or
decrease the area covered in the annexation area. He noted at this point there are not a lot of
other options. Brian Stumpf asked who would be part of the mediation. Chris Hood
indicated that it would be one or two representatives from the city and the township, legal
counsel, planner and engineer. The mediator would be selected from a list supplied by the
state. The extension of sewer, water and street systems are necessary for development and
there needs to be assessment against the land improvement to get back a portion of the cost for
these improvements. As far as planning it works better to plan for an area before it develops
rather than after development starts to take place. He noted a PCA report that showed the cost
of providing sewer and water was less when it was installed prior to development rather than
retrofitting it.
Glen Posusta asked if this was typical or if the City was being too aggressive or not aggressive
enough? Chris Hood reviewed annexation contests that he was involved in and noted that
there really wasn't a pattern on annexation issues. Chris Hood said the line may shrink or
expand based on the mediation sessions with the township. Glen Posusta asked about
limiting the annexation area to the east and west along the river rather than gutting out the
middle of the township. Steve Grittman responded when they looked at the area they were
looking at it as far as infrastructure and transportation issues. For that reason they took the
growth area down to County Road 37 so they would not lose the transportation corridor.
Glen Posusta asked if all the area was annexed would the city be able to provide the services.
John Simola said they could contract for service such as snowplowing or handle it with part-
time employees but he felt they could provide services such as snowplowing for the growth
area.
Rick Wolfsteller stated that by setting up a rural service taxing designation those properties
receiving minimum service would probably end up with a tax rate very close to that of the
township's. Brian Stumpf asked about the chances of the city and township resolving it
without a mediator. Chris Hood indicated the chances are not good noting most of the cases
involving a mediator have been settled. Bruce Thielen stated adopting the resolution would
start the process for mediation and continued meetings with the township.
Chris Hood then reviewed the resolution with the Council. Bruce Thielen then asked if the
council was comfortable with the current boundary line. As far as procedure, Chris Hood
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stated the Council should adopt the resolution contingent upon staff developing a legal
description consistent with the map and submitting it to the state. John Simola asked if staff
would have time to review the map for split parcels and other concerns. Bruce Thielen stated
he was not willing to wait for staff to come up with a recommendation. Chris Hood said they
could call a special meeting if the council wanted to let staff review this. Steve Grittman
stated it was the staff's intent to leave the Tyler East and Riverside Acre out of the long term
planning area since they could be served off County Road 39. Bruce Thielen stated it made
no sense to leave Tyler East as an island surrounded by the City. Bruce Thielen stated if the
city includes the Dunes why not include Tyler East.
Brian Stumpf asked for verification that even though a boundary line is established the City
can consider annexation requests from property owners outside the area by petition. Roger
Fink from Woodside Properties spoke. His question is if the resolution moves forward and
the City submits the annexation resolution indicated, how would his property be handled. At
the present time the property is not adjacent to any city limit. Chris Hood responded that
annexation could take place by OAA agreement or going through the process the city is
looking at. In reviewing the property indicted by Mr. Fink the Council felt a 50' sliver should
be included in the green boundary area.
Roger Carlson echoed Brian Stumpf s comments that the City is forced to go forward with
this option at this time. The City has to plan for the future and if the City can save money by
properly planning infrastructure needs then it should be done. Establishing different taxing
districts based on services received will protect those properties coming in. Chris Hood stated
that after the matter comes to trial the fiscal impact of the annexation would have to be laid
out. Bruce Thielen suggested Chris Hood, Steve Grittman and staff come up with a white
paper that will address the concerns of resident who would be coming into the city. Glen
Posusta stated he didn't like the process as it felt like the City was going behind the townships
back. Since the City is ultimately going to have to meet with the township he would prefer
not to have to go this route. Chris Hood concurred but emphasized that this is the only route
that remains. Glen Posusta stated he felt the City was using a heavy hand. Roger Carlson
noted that lot of different options could come out of the mediation sessions. Bruce Thielen
stated that the Council by this resolution defines the process. He noted the resolution is on
the agenda for the regular meeting.
3. Adjourn
BRIAN STUMPF MOVED TO ADJOURN THE WORKSHOP AT 6:30 P.M. ROBBIE
SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
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Recording Secretary
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