City Council Minutes 09-23-2013MINUTES
REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, September 23, 2013 — 7 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
1. Call to Order and Pledge of Allegiance
Mayor Herbst called the meeting to order at 7:00 p.m. and declared a quorum present.
The Pledge of Allegiance was recited.
2A. Approval of Minutes — September 9, 2013 Special Meeting
TOM PERRAULT MOVED TO ACCEPT THE SEPTEMBER 9, 2013 SPECIAL
MEETING MINUTES AS PRESENTED. GLEN POSUSTA SECONDED THE
MOTION. MOTION CARRIED 5 -0.
213. Approval of Minutes — September 9, 2013 Regular Meeting
TOM PERRAULT MOVED TO ACCEPT THE SEPTEMBER 9, 2013 REGULAR
MEETING MINUTES AS CORRECTED. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED 5 -0.
3. Consideration of adding items to the agenda
No items were added to the agenda at this time.
4. Citizen comments, public service announcements
a. Citizen Comments: None
b. Public Service Announcements:
1) Fire Department Informational Meeting (9/30) — Matt Theisen reported
that there will an informational meeting on Monday, September 30th for
firefighters interested in joining the department. Those interested can fill
out an application at that time or stop at city hall to apply.
5. Consent Agenda:
A. Consideration of approving payment of bills for September 23rd. THIS ITEM
WAS REMOVED FROM THE CONSENT AGENDA.
B. Consideration of approving new hires and departures for City departments.
Recommendation: Ratify new hires and terminations for MCC and Parks.
City Council Meeting Minutes — September 23, 2013 Page 1
C. Consideration of adopting Resolution #2013 -073 accepting improvements and
approving final payment to Allied Blacktop for the 2013 Sealcoating
Improvements, City Project ZZZSEAL. THIS ITEM WAS REMOVED
FROM THE CONSENT AGENDA.
D. Consideration of accepting quotes and awarding a contract for replacing the
caulking in the below ground reservoir located at 207 Chelsea Road East.
Recommendation: Accept quotes and award contract to Sunrise Specialty
Contracting of Big Lake, MN in the amount of $4,340 for the caulking
replacement at the reservoir located at 207 Chelsea Road East.
E. Consideration of accepting quotes and awarding contract for construction of
building for Well #4 Conversion, City Project No. 12COO9. Recommendation:
Accept quotes and award contract to Structural Buildings of Becker, MN in the
amount of $41,602 for construction of a building to house Well #4 and a trailer
generator as part of Well #4 Conversion, City Project No. 12C009.
F. Consideration of accepting quotes and awarding contract for electrical work in
building for Well #4 Conversion, City Project No. 12C009. Recommendation:
Accept quotes and award contract to Wes Olson Electric of Monticello, MN in the
amount of $7,350 for electrical installation in the building to house Well #4 and
the trailer generator.
G. Consideration of adopting Resolution #2013 -074 stating intent to reimburse from
bond proceeds for the TH25 - CSAH75 Intersection Buildout, City Project No.
l 00009.. Recommendation: Adopt Resolution #2013 -074 declaring the official
intent to reimburse expenditures up to $500,000 from bond proceeds for
TH25 /CSAH75 Intersection Buildout, City Project No. 1 00009.
H. Consideration of adopting Resolution #2013 -075 and Resolution #2013 -076
approving CSAH 18 Pedestrian Bridge Maintenance Agreement and Limited Use
Permit. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA.
I. Consideration of approving the final settlement document for FiberNet bond
claims. Recommendation: Approve the final settlement document for FiberNet
bond claims.
J. Consideration of approving an agreement with TeleSphere Software, Inc. for
carrier access billing software (CABS) system services for FiberNet. THIS
ITEM WAS REMOVED FROM THE CONSENT AGENDA.
BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEMS A, C, H, AND J. TOM PERRAULT SECONDED THE
MOTION. MOTION CARRIED 5 -0.
City Council Meeting Minutes — September 23, 2013 Page 2
6. Consideration of items removed from the consent agenda for discussion
5A. Consideration of approving payment of bills for September 23rd
Glen Posusta questioned several of the card payments listed on the register. The city
pays $401.51 for eight biffs including one by the parks department building. Council
would like to see biffs eliminated from parks that already have restrooms (even with a
timer lock). Matt Theisen mentioned that the one at the parks department is used by
employees when they are working out back and for a backup as needed in other places.
Glen confirmed that the two elevator charges for $690 were not duplicates. Glen asked
about charges at Moon Motorsports for $1396.11, and it was explained those were for
transmission repairs on a ranger vehicle for the Fire Department. Glen Posusta asked for
more information on the payment of $4,086.28 to Northwest Associated Consultants for
work related to the telecommunications tower. Glen would like to see this extracted from
the payment until more of a breakdown can be provided.
GLEN POSUSTA MOVED TO APPROVE THE BILL REGISTERS, EXCLUDING
$4,086.28 TO NORTHWEST ASSOCIATED CONSULTANTS, FOR A TOTAL OF
$963,353.05. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5-
0.
5C Consideration of adopting Resolution #2013 -073 accepting improvements and
approving final payment to Allied Blacktop for the 2013 Sealcoating Improvements,
City Project ZZZSEAL
Glen Posusta would like to make sure that a fog seal is done over the chip seal in the
future. Clint Herbst noted that the fog seal on Meadow Oak Avenue was done as a test
project and they would like to see how it wears over winter. It was confirmed that the
total final payment includes the fog seal and chip seal.
GLEN POSUSTA MOVED TO ADOPT RESOLUTION #2013 -073 ACCEPTING
WORK AND APPROVING FINAL PAYMENT OF $83,796.10 TO ALLIED
BLACKTOP FOR THE 2013 SEALCOATING IMPROVEMENTS, CITY PROJECT
ZZZSEAL, CONTINGENT UPON PROVIDING THE REQUIRED DOCUMENTS.
BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 5 -0.
5H. Consideration of adopting Resolution #2013 -075 approving CSAH I8 pedestrian
bridge maintenance agreement and Resolution #2013 -076 approving limited use permit
for a recreational trail
Tom Perrault wanted to make sure Section 4.2 in the bridge maintenance agreement was
updated from Bruce Westby to a current name. Shibani confirmed that Jeff O'Neill's
name would be inserted before the agreement is signed.
TOM PERRAULT MOVED TO ADOPT RESOLUTION #2013 -075 APPROVING THE
CSAH 18 PEDESTRIAN BRIDGE MAINTENANCE AGREEMENT AND ADOPT
City Council Meeting Minutes — September 23, 2013 Page 3
RESOLUTION #2013 -076 APPROVING A LIMITED USE PERMIT FOR USE OF
RIGHT OF WAY FOR A NON - MOTORIZED RECREATIONAL TRAIL. LLOYD
HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0.
5J. Consideration of approving an agreement with TeleSphere Software, Inc. for
carrier access billing software (CABS) system services for FiberNet
Torn Perrault questioned the wording on page 10 in the agreement where it referenced the
state of Montana. Mark Pultusker noted that this is common in agreements with
companies from other states. Mark Pultusker stated that City Attorney Joel Jamnik has
reviewed this agreement.
TOM PERRAULT MOVED TO APPROVE THE AGREEMENT WITH TELESPHERE
SOFTWARE, INC TO PROVIDE CARRIER ACCESS BILLING SOFTWARE
SERVICES FOR FIBERNET AT A COST OF $600 PER MONTH PLUS AN
INSTALLATION FEE OF $2,400. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED 5 -0.
7. Continuation of Public Hearing - Consideration of adopting Resolution #2013 -071
approving an assessment roll to be certified for 2014 payable tax year for the 2012
Rural Road Improvements, City Project No. 12CO01
Shibani Bisson explained that this is a continued public hearing. Greg Olson, property
owner, had questioned a former escrow that was collected on property in Hunter's
Crossing and the possibility of applying that to his assessment. After the meeting,
Shibani Bisson met with him and they_discovered that the escrow did not apply to the
outlot that he had purchased. Shibani Bisson also noted that Shawn Weinand requested
that a $40,000 deposit he had made for a right turn lane be applied to his proposed
assessment. In the packet for Council, the $40,000 has been applied to Mr. Weinand's
assessment. Tom Perrault questioned whether any future assessment for the turn lane
could be applied to existing Autumn Ridge properties. It is not known whether a turn
lane would be built and any assessment would be applied to benefitting properties in
Autumn Ridge. This would be determined in a future developer's agreement.
Mayor Herbst asked for comments from the audience. As there were no comments,
Mayor Herbst closed the public hearing.
BRIAN STUMPF MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION
#2013 -071 APPROVING AN ASSESSMENT ROLL FOR THE 2012 RURAL ROAD
IMPROVEMENTS, CITY PROJECT NO. 12C001, TO BE CERTIFIED STARTING
WITH 2014 PAYABLE TAXES. GLEN POSUSTA SECONDED THE MOTION.
MOTION CARRIED 4 -1 WITH TOM PERRAULT VOTING IN OPPOSITION.
8. Public Hearing - Consideration of adopting Resolution #2013 -077 approving
vacation of drainage and utility easements between Lots 2 and 3, Block 1, Pineview
City Council Meeting Minutes — September 23, 2013 Page 4
Addition (155- 204- 001020 & 001030)) and approving administrative lot combination
for Lots 2 and 3. Applicants: Tom Holthaus, property ownerYKiellberg's Inc.
Angela Schumann presented this request for vacation of drainage and utility easements
and approval of an administrative lot combination. The property is currently owned by
Tom Holthaus and the co- petitioner is Kjellberg's Inc. The easements that are being
requested for vacation are over the lot line between Lots 2 and 3 of Block 1 of Pineview
Addition. These lots front Broadway and there is an existing access agreement requiring
shared driveways to reduce the number of accesses in this plat. Clint Herbst asked about
access for the undeveloped three lots. Angela Schumann explained that the combined
Lots 2 and 3 would share an existing access with Lot 4. Lot 1 and the outlot are not
buildable lots at this time. Clint Herbst also noted that combined lots could be assessed
for double lots in the future. Angela Schumann explained those items are referenced in
the resolution as a condition.
Mayor Herbst opened the public hearing. There were no comments so the public hearing
was closed.
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION
#2013 -077 APPROVING VACATION OF DRAINAGE AND UTILITY EASEMENTS
BETWEEN LOTS 2 AND 3. BLOCK 1, PINEVIEW ADDITION AND APPROVING
AN ADMINISTRATIVE LOT COMBINATION FOR LOTS 2 AND 3, SUBJECT TO
THE FOLLOWING CONDITIONS. BRIAN STUMPF SECONDED THE MOTION.
MOTION CARRIED 5 -0.
• Property owner shall provide a revised Certificate of Survey showing the reestablishment
of drainage and utility easements and showing the combined Lots 2 and 3, Block 1, Pine
View Addition.
• The property owner shall be required to cap water services per the recommendation of
the City Water Superintendent.
• The combined property shall be developed utilizing the existing shared access on Lots 3
and 4, Block 1, Pine View. No additional access shall be provided.
• The City shall continue to maintain the remaining drainage and utility easement on the
perimeter of the property.
• Ifprivate utilities exist within the easement area to be vacated, it will be the property
owner's responsibility to work with the private utilities to relocate their utilities.
• Property may be subject to double assessment for future road improvements, based on
original two lots.
9. Consideration of adopting Ordinance #583 amending the official zoning map from
B -4 (regional business) to R -4 (medium -high density residence) district for Lot 1,
Block 2, Riverview Square; and consideration of adopting Resolution #2013 -078
approving a Comprehensive Plan amendment for a change in land designation
from Places to Shop to Places to Live and supporting findings for approval of
rezoning. Applicant: IRET Properties
City Council Meeting Minutes — September 23, 2013 Page 5
Clint Herbst explained that this is not a public hearing but he will take public comments.
Persons speaking should be sure to sign in when they speak.
Angela Schumann introduced this request for rezoning and approval of a Comprehensive
Plan amendment. Angela Schumann provided a slide presentation which showed the
current zoning of B -4 and proposed zoning to R -4. Angela Schumann pointed out the
allowances in the zoning ordinance for R -4 properties, which is for multi - family housing.
The property proposed for rezoning is approximately 5 acres in size along County Road
39. Angela Schumann showed the surrounding land uses and zoning. Angela Schumann
talked about the review process used for this application. The Planning Commission has
discussed this at several meetings with continued hearings. The application went to the
DNR for review since the property is located in the Wild and Scenic District. The DNR
did not provide written comment on the land use request, but did indicate they have
questions on the amount of impervious surface and viewshed that would be involved with
such a development proposal. The Planning Commission originally tabled action in
August to hold a neighborhood meeting. In September, Planning Commission voted 3 -2
for denial of the rezoning based on findings that the land use as proposed was not
compatible with the surrounding neighborhood.
Angela Schumann summarized some of the issues that were addressed during the
Planning Commission hearing process.
• Allowable uses in the B -4 district versus the R -4 district
• Size — concern about overall height, which would probably generate a need for a
variance in the wild and scenic district
• view of river — not impacted according to studies
• R -4 zoning has higher performance standards for amenities
• Affect on property values - NAC has done some research and there are no studies
that show a decrease in property values for this type of housing.
• Storm water — application shows on -site ponding; stormwater plan will be
required for development of this type
• Traffic safety — only 1 accident, no red flags for studies in that area, traffic study
is planned as part of this project
• Development costs — applicant bears the costs
• Type of housing — market rate, no subsidized units
• School District — would be advantageous to the school to have additional students
Staff recommends that the Comprehensive Plan be amended to change this from "Places
to Shop" to "Places to Live" for a number of reasons: to create a balanced housing
supply, to offer a mixture of housing types and densities, and to increase housing choices
and affordability beyond the current rules and regulations. Staff also recommends
rezoning the property to R -4 (medium -high density residential) for a variety of reasons:
allows higher density with extensive design requirements and higher amenities, requires
CUP to control design standards, and improves inventory of multi - family housing stock.
City Council Meeting Minutes — September 23, 2013 Page 6
If Council approves the application for rezoning and Comp Plan amendment, the next
steps would include approval of CUP and variance for height and site plan review.
Brian Stumpf asked about setbacks for R -4 zoning. Angela Schumann explained how the
setbacks would be determined dependent upon the site plan and based upon Table 3 -9 of
the zoning ordinance. Brian Stumpf also asked about buffers for R -4 development.
Angela Schumann stated that is defined in the zoning ordinance which includes tree and
shrub buffers and could include fencing. Jeff O'Neill noted that the CUP could require
mitigation of setbacks and buffers in the site plan.
Clint Herbst asked if there were any residents that wanted to provide comments.
Richard Van Allen, 6448 River Mill Drive, spoke against the proposed rezoning stating
that he had purchased his property not expecting to have a large apartment building in the
vicinity. He also expressed concern about the traffic congestion and stormwater
drainage.
Dan Lemm, 8 Linn Street, feels that there is plenty of multi - family housing in Monticello
and there is more of a need for baby boomer housing. He would prefer that Council
review the full proposal before approving rezoning. Clint Herbst explained that the R -4
zoning district is geared for higher end multi - family housing and the proposal would be
refined based on the requirements in the zoning ordinance.
Jeff Swanson, 6220 Mill Run Rd, stated his concern with an application utilizing a new
zoning district and placing it next to R -1 housing. He feels that the height of the building
would be a deterrent in the area. He feels the vacant site would be a better fit for a strip
mall.
Clint Herbst explained that the city knew there was a need out there for R -4 zoning and
that is the reason the zoning ordinance was updated. As times change, so do the zoning
uses and requests. Jeff O'Neill pointed out several other changes that were made in the
zoning ordinance to accommodate property transitions and uses.
Maribel Cruz - Longley, 9831 Mill Court, spoke on behalf of her occupation as a realtor
and her concern about home sales in. the area being affected by a multi - family apartment
building. She talked to an appraiser who said there could be negative impacts when
located near an apartment complex.
Johnny Green, 9769 Mill Trail Lane, expressed his concern about the apartment building.
He was a previous apartment manager of 800 units in a cluster of buildings and
experienced some negative changes in some properties when the owners experienced
high vacancy rates and implemented subsidized rents. Brian Stumpf spoke about IRET
Properties and pointed out that the company deals in high -end properties. They are
known for their quality and well- maintained properties. Mr. Green expressed his concern
about putting a large apartment building in a residential area.
City Council Meeting Minutes — September 23, 2013 Page '7
Clint Herbst stated that part of the dilemma is whether to place an apartment building
next to residential versus placing commercial next to residential. Clint Herbst feels this
particular property is probably well- suited to R -4 zoning.
Paul Sterbuck, 9834 Mill Court, spoke about his concerns with the traffic on County
Road 39 and the water flow from the hill. He also said he lived next door to an apartment
building in Brooklyn Park and he lost money when he sold his house.
Larry Whittaker, 6195 River Mill Drive, feels that this is not a good improvement and
will increase costs for services for everyone. He is also concerned about possible future
improvements that might be needed for stormwater drainage. Clint Herbst noted that
there will be water control standards built into the site. Right now there are no controls
for the water flowing down the hill. This project would include improvements such as
ponds and storm drains needed for water control.
Mr. Whittaker questioned the ability to control costs for water and sewage treatment.
Glen Posusta pointed out that the city has an ongoing project at the wastewater treatment
facility that will handle future treatment needs.
Josh Blonigen, 9806 Hart Boulevard, indicated that he understands that there is definitely
a need for this type of apartment housing. However, he does not feel that the location is
well- suited for a large apartment building. He expressed a concern about the impact to
his property value and would like to see a large building like this be placed somewhere
else.
Wayne Elam, Commercial Realty Solutions, spoke on behalf of putting in a housing
project of this type that can provide labor to support future commercial development.
The property proposed for rezoning is not ideal for commercial. It is a good location for
multi - family housing and gives the city the flexibility to create an apartment building
with high end amenities. He did acknowledge that the traffic may be of some concern.
Andy Martin, IRET Properties, talked about their proposal for the property and what they
hope to achieve with this project. He indicated that this would not be suitable for Section
8 housing and would not revert from market rents to subsidized rents. He emphasized the
CUP process requires an input of funding from them to create a high -end project and they
would not forfeit their money for an inferior type of building. Andy talked about some of
the plans they envision for the apartment complex to create a truly desirable place to live.
In terms of demographics, this type of building would draw both young professionals and
baby boomers. Transitional locations like this property are desirable because they are
close to many services. Andy rebutted the comments about apartments in Robbinsdale
and Brooklyn Park, noting that those communities are not the most desirable for
apartments with high -end amenities. The apartment community that they are planning to
build would be comparable to quality apartment communities in suburbs like Plymouth or
Maple Grove.
City Council Meeting Minutes — September 23, 2013 Page 8
Glen Posusta asked about properties that IRET Properties have disposed of Andy said
those were in Fargo in an area that was overcrowded with apartments. They did not feel
they represented the quality in which IRET normally invests.
Brian Stumpf reiterated that IRET Properties builds high quality properties and he is
impressed with what they are proposing. However, he does not feel the building would
fit well at the location. He suggested that there may be better sites in the city. Clint
Herbst explained that Council should be looking at rezoning and not necessarily the
height of the building for this decision. If this property is suitable for R -4 multi - family
housing, then the rezoning may be appropriate.
Tom Perrault noted that he had talked to Andy Martin and took a tour of some of their
buildings. He has been in favor of this project but does have a concern about the
balconies that may be included in the apartment complex. Tom Perrault talked about
some of the uses that could be allowed on the property as it is currently zoned and feels
that some of the B -4 uses would not be desirable at that location. However, he thinks it
best to leave the zoning as B -4 at this time. Tom Perrault acknowledged that there is a
need for multi - family housing in Monticello.
Lloyd Hilgart offered several comments. He did a lot of research and noted that in
regard to traffic, use as R -4 would generate less traffic than B -4; in regard to property
values, two local appraisers did not see that such a development would adversely affect
property values; and in regard to crime, Lieutenant Dan Anselment said he did not
anticipate any negative effect from an apartment complex of this type. He did note that
he is not sure about the height of the building but that will be subject to further discussion
and is not part of the decision tonight. Lloyd also mentioned that his mother lives in a
similar building in Rogers and is very pleased with this type of apartment community.
Andy Martin was asked to talk about the height of the building. He explained that they
are working with the design of the building to see if they could bring it down to a 3 -story
building. They originally designed it as a 4 -story building to accommodate the needed
setbacks and buffering. He talked about the cost of building high -end apartments and the
need to have enough density to make the costs work. They are reconsidering the height
for two reasons: the opposition to the height and the location within the Wild and Scenic
designation. Glen Posusta asked about the possibility of lowering the first level
apartments. Andy explained that is not desirable in apartment housing and makes it more
difficult to deal with the underground parking.
Glen Posusta suggested that the rezoning should be approved tonight and then Council
can work out details with the developers during site design review.
Decision #1:
GLEN POSUSTA MOVED FOR ALTERNATIVE #1 TO ADOPT ORDINANCE NO.
583 REZONING FROM B -4 (REGIONAL BUSINESS) TO R -4 (MEDIUM -HIGH
DENSITY RESIDENTIAL), BASED ON THE FINDINGS FOR APPROVAL
IDENTIFIED IN DECISION #2. CLINT HERBST SECONDED THE MOTION.
City Council Meeting Minutes — September 23, 2013 Page 9
MOTION CARRIED 3 -2 WITH BRIAN STUMPF AND TOM PERRAULT VOTING
IN OPPOSITION.
Tom Perrault and Brian Stumpf stated their preference to keep the existing commercial
designation and that the scope of the R -4 zoning district is not appropriate for the subject
property.
Decision #2:
LLOYD HILGART MOVED FOR ALTERNATIVE #1 TO ADOPT RESOLUTION
#2013 -078 APPROVING THE COMPREHENSIVE PLAN AMENDMENT TO
RECLASS SUBJECT PROPERTY FROM "PLACES TO SHOP" TO "PLACES TO
LIVE" AND SUPPORTING THE FINDINGS FOR APPROVAL OF REZONING.
GLEN POSUSTA SECONDED THE MOTION. MOTION FAILED 3 -2 WITH BRIAN
STUMPF AND TOM PERRAULT VOTING IN OPPOSITION. (It was noted that a
Comp Plan amendment requires a super majority vote of approval.)
Angela Schumann explained that zoning district should match the land use specified in
the Comprehensive Plan. Since the Comp Plan amendment was not approved by a super
majority vote, the land use designation for the subject property remains as "Places to
Shop."
10. Added items
• Streetli ting - Ridgemont Apartments Brian Stumpf noted that Tom Moores
had brought to his attention that the street lighting is not adequate in that area
along Minnesota Street adjacent to the Ridgemont apartments. Council directed
staff to look into that.
11. Adjournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 9:24 P.M. TOM
PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman 84--1
Approved: October 14, 2013
Attest:
t dministrator
City Council Meeting Minutes — September 23, 2013 Page 10