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City Council Minutes 12-13-2004MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, December 13, 2004 - 7 p.m. Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen Member Absent: None 1. Call to Order and Pledge of Allegiance. Mayor Thielen called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2A. Approve minutes of November 22, 2004 regular Council meeting. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 22, 2004 REGULAR COUNCIL MEETING. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 211. Approve minutes of November 22, 2004 Workshop Meeting. Glen Posusta noted a correction on page specifying the value was $2,300,000. GLEN POSUSTA MOVED TO APPROVE THE MINUTES OF THE NOVEMBER 22, 2004 WORKSHOP MEETING WITH THE CORRECTION NOTED. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to the agenda. Bruce Thielen requested that an update on the Swan River Montessori School be added to the agenda. Rick Wolfsteller added authorizing a public hearing for the EAW relating to the CSAH 18/I-94 interchange (#5U). Jeff O'Neill asked that agenda item #10 be moved to the consent agenda. (#5V). Jeff O'Neill suggested that portions of agenda item #8 could be moved to the consent agenda. The Council determined to address all portions of agenda item #8 at one time so it was left as a regular item. Brian Stumpf asked if agenda item # 16 could be added to the consent agenda. Glen Posusta stated he had questions on that item and asked that it remain on the regular agenda. 4. Citizen comments, petitions, requests and complaints. Mayor Thielen explained the purpose of the citizen comments portion of the meeting. John Chadwick representing the Otter Creek Crossing development stated that there were several items relating to the development that needed clarification and asked that those be addressed. Mayor Thielen stated the clarification could be done when the agenda items relating to the Otter Creek development (# 11 and #12) were acted on. Council Minutes - 12/13/04 5. Consent agenda. A. Consideration of adoption of final levy and budget for 2005. Recommendation: Adopt a resolution setting the 2005 final budget and tax levy in the amount of $6,957,915. Resolution No. 2004-99. B. Consideration of authorizing preparation of feasibility report for School Boulevard from Deegan Avenue to the proposed Insignia Development. Recommendation: Authorize obtaining soil borings and preparation of a feasibility report for the extension of School Boulevard from Deegan Avenue to the proposed Insignia Development. Resolution No. 2004-100. C. Consideration of revised scope of 2005 Core Street Project No. 2005-01C and setting a public hearing date for proposed improvement. Recommendation: Accept the amended feasibility report and order a public hearing for the proposed improvement for January 10, 2005. D -a Consideration of authorizing feasibility studies for trunk storm sewer and utility improvements serving the proposed Hidden Forest and Sunset Ridge Developments. Recommendation: Authorize the preparation of a sanitary sewer and watermain study for the Hidden Forest development and Sunset Ridge Addition projects subject to the developer providing a $15,290 deposit to pay for the study. D -b Consideration of authorizing preparation of an EAW for Sunset Ridge and Hidden Forest Developments. Recommendation: Authorize the preparation of an EAW for the Hidden Forest development and the Sunset Ridge Addition project subject to the developer providing a $16,200 deposit to pay for the EAW. D -c Authorize the continuation of the County Ditch 33 study for outlet improvements needed for Monticello development. Recommendation: Authorize the continuation of the outlet study as part of the Hidden Forest and Sunset Ridge Addition projects. E. Consideration of fund transfers for 2004. Recommendation: Approve the transfers as recommended by the City Administrator. F. Consideration of approving Change Order No. 1 for Trinity Lutheran Church Improvements, Project No. 2004-34C. Recommendation: Approve Change Order No. 1 in the amount of $2,816.75 for Schluender Construction, Inc. for Trinity Lutheran Church Storm Sewer Improvement Project No. 2004-34C. G. Review of bids for third party transit services for Heartland Express. Recommendation: Move to authorize execution of the 2005 contract for 3rd party transportation provided services with Hoglund Transportation at $30.91 per hour subject to MnDOT approval of a hands-free dispatch system and subject to paying actual pass through expenses for fuel purchase. In the event that the hand -free system is not Council Minutes - 12/13/04 approved by MnDOT, Hoglund Transportation will provide dispatch services at $5.00 per hour additional cost. H. Consideration of review of bids on Fire Department Truck. Recommendation: Move to reject the tanker bids and authorize re -advertisement for bids for the new truck. I. Consideration of authorizing preparation of EAW for Insignia Development. Recommendation: Authorize the preparation of an EAW for the Insignia development project subject to the developer providing a $12,000 deposit to pay for the EAW. J. Consideration of calling for a public hearing for vacation of 3' of Wright Street right of way from East River Street to the Mississippi due to home encroachment. Recommendation: Call for a public hearing to be held on January 10, 2005 to consider the vacation of a portion of Wright Street from East River Street to the Mississippi. K. Consideration of acceptance of work and authorizing final payment on River Street Sanitary Sewer, Project No. 2003-1OC. Recommendation: Authorize final payment in the amount of $6,368.73 to G.L. Contracting, Inc. for the River Street Sanitary Sewer Replacement Project No. 2003 -IOC subject to receipt of required paper work and accept the project work. L. Consideration of approving 2005 liquor providers for MCC. Recommendation: Approve the following liquor providers for MCC for 2005: American Legion Post #260, Chin Yuen Restaurant, VFW Post #8731, Nature's Hideaway, Reichel's Catering Service, RJ's Sports Bar & Grill and Russell's of Course. M. Consideration of Negative Declaration of impact on EAW for Ryan Companies Development. Recommendation: Issue the Negative Declaration of Need for an Environmental Impact Statement (EIS) for the Monticello Retail Development site. N. Consideration of City maintaining public streets and utilities for the Sunset Ponds 1St Addition Development, Project No. 2003-15P. Recommendation: City accepts maintenance responsibilities of public streets and utilities within the Sunset Ponds 1St Addition contingent on roadways being swept and the right-of-way being cleared of debris for snow plowing operations. O. Consideration of accepting public streets and utilities for the Hillside Farms 1 St Addition Development, Project No. 2003-12P. Recommendation: Acceptance of the public streets and utilities with the exception of maintaining storm sewer and pumping the pond, subject to the contractor submitting the required paperwork. P. Consideration of City maintaining public streets and utilities for the Carlisle Village Development, Project No. 2004-16P. Recommendation: The City accepts maintenance responsibilities for streets in the Carlisle Village Development with the exception of roadway stubs without temporary cul-de-sacs, contingent on roadways being swept and Council Minutes - 12/13/04 the right-of-way being cleared of debris for snow plowing operations. Q. Consideration of accepting public streets and utilities for the Featherstone Development, Project No. 2003-03C. Recommendation: Accept the public streets and utilities for the Featherstone Development, Project No. 2003-03C subject to the contractor submitting the required paperwork. R. Consideration of City maintaining public streets and utilities for the Prairie Ponds Development, Project No. 2004-14P. Recommendation: The City accepts maintenance responsibilities of public streets and utilities with the exception of maintaining storm sewer to the pond and erosion control and contingent on roadways being swept and the right-of-way being cleared of debris for snow plowing operations. S. Consideration of City maintaining public utilities for the Parkside at Meadow Oak 2"d Addition development, Project No. 2003-08P. Recommendation: City accepts maintenance responsibilities for public utilities within the Parkside at Meadow Oak 2"d Addition. T. Consideration of a request to vacate and purchase a portion of unused West 7t' Street - Barry Fluth. Recommendation: Council authorize setting a public hearing for January 10, 2005 to consider the vacation of West 7t' Street lying southeast of Minnesota Street. U. Consideration of authorizing a public hearing for the Environmental Assessment regarding the CSAH 18/I-94 interchange. Recommendation: Set a public hearing for the Environmental Assessment regarding the interchange on I-94 at CSAH 18 for January 24, 2004 at 7 p.m. at the City Council meeting. V. Consideration of authorizing AVAR, utility studies and interchange analysis for Heritage Development (Silver Springs Golf Course) Sub -Items A,B,C (Was item # 10) A Approve scope of work, cost estimate and time line for the preparation of an Alternative Urban Areawide Review (AVAR) for Heritage Development/Silver Springs Golf Course Redevelopment. Recommendation: Approve the scope of work, time line and cost estimate for an AVAR for the Heritage Development/Silver Springs Golf Course Redevelopment project subject to the developer providing an $85,000 deposit to cover the cost of the AVAR. B Authorize the preparation of sanitary sewer and watermain study for the Heritage Development/Silver Springs Golf Course Redevelopment. Recommendation: Approve the scope of work and cost estimate for a sanitary sewer and watermain study for the Heritage Development/Silver Springs Golf Course Redevelopment project subject to the developer providing a $30,660 deposit to pay for the study. C Authorization to prepare preliminary layouts, interchange modification request from FHWA and Environmental Review for the proposed Orchard Road Interchange. 11 Council Minutes - 12/13/04 Recommendation: Approve the scope of work, time line and cost estimate for the Orchard Road interchange including: A. Preliminary layouts; B. Interchange modification request; C. Environmental Review Brian Stumpf asked for a clarification on 5C, Core Street Amended Report as to which option they would be utilizing. Bret Weiss stated that they didn't specify an alternative. Brian Stumpf asked that item 5C be pulled from the consent agenda and continued to the first meeting in January. BRIAN STUMPF MOVED TO HAVE ITEM 5C, CONSIDERATION OF REVISED SCOPE OF 2005 CORE STREET PROJECT, CONSIDERED AT THE JANUARY 10, 2005 MEETING. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Items 5B, 51), 5G and 5T were removed from the consent agenda for discussion. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH THE ADDITION OF ITEMS 5U AND 5V AND THE REMOVAL OF 513,51), 5G AND 5T. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent agenda for discussion. 5B -Feasibility Report School Boulevard from Deegan Avenue to the Insignia Development. Glen Posusta questioned why the study wasn't covering School Boulevard all the way to 90" Street. Bret Weiss indicated they had not had discussions with the developers in that area to determine their time frame for improvements. Glen Posusta suggested that the engineer meet with the developers and then determine if the project scope should be extended. GLEN POSUSTA MOVED TO AUTHORIZE THE PREPARATION OF A FEASIBILITY REPORT FOR SCHOOL BOULEVARD TO INSIGNIA DEVELOPMENT AND EXTENDING TO 90TH STREET CONTINGENT UPON THE INSIGNIA DEVELOPERS AGREEING TO IT. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 5Dc Continuation of County Ditch 33 Study - Glen Posusta questioned what the requirements are for studying Ditch 33 since there is another government entity involved. Bret Weiss said the County would like to see the City get his study done. Glen Posusta asked if the County had given the City Engineer some kind of direction on this. Bret Weiss said they had been working with the County on this as part of the Carlisle Village development and had worked with Kerry Saxton from the Water and Soils Conservation Office on this matter. Glen Posusta noted that the developments being discussed as part of this project were not yet in the City limits. Bret Weiss stated that some time ago the Council did give authority to start looking at relief for Ditch 33. Glen Posusta asked who would pay for this. Bret Weiss replied that was up to the Council. Previously it was considered as trunk storm sewer improvement. One option would have the developer cover the cost of the lateral pipe and the City cover the cost of 5 Council Minutes - 12/13/04 upsizing the pipe. ROGER CARLSON MOVED TO AUTHORIZE THE CONTINUATION OF THE OUTLET STUDY AS PART OF THE HIDDEN FOREST AND SUNSET RIDGE ADDITION PROJECTS. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 5G 2005 Heartland Express 3rd Party Transportation Contract Services - Robbie Smith questioned whether the City did the right thing back when they made the decision not to go with the River Rider system. Although the City may be obligated at this point to go with the contract, he suggested that the new Council may want to look at this again. Jeff O'Neill stated it would be difficult to transfer to River Rider at this point but agreed the Council could look at it for next year. Glen Posusta asked about hiring a full-time person. If the City does not hire a transportation person the state could terminate the contract and the City could lose its funding. If that happens there may not be the same level of service as there currently is. ROBBIE SMITH MOVED TO AUTHORIZE EXECUTION OF THE 2005 CONTRACT FOR 3RD PARTY TRANSPORTATION PROVIDER SERVICES WITH HOGLUND TRANSPORTATION AT $30.91 PER HOUR SUBJECT TO MNDOT APPROVAL OF A HANDS FREE DISPATCH SYSTEM AND SUBJECT TO PAYING ACTUAL PASS THROUGH EXPENSES FOR FUEL PURCHASE. IN THE EVENT THAT THE HAND FREE SYSTEM IS NOT APPROVED BY MNDOT, HOGLUND TRANSPORTATION WILL PROVIDE DISPATCH SERVICES AT $5.00 PER HOUR ADDITIONAL COST. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 5T Vacation of West 7' Street right-of-way: Brian Stumpf asked how many square feet was involved in the portion of right-of-way that was requested to be vacated. Rick Wolfsteller indicated that based on the maps the right-of-way appeared to be 80' in width. If the Council proceeds with the vacation of the right-of-way they would need to determine the exact square footage. He did feel there was sufficient footage to site a house on the area. Brian Stumpf had concerns about it because it was creating an odd shaped lot. He said the City has been working to square up lots in the old part of town and creating this lot would be contrary to that. Rick Wolfsteller said the right-of-way would not be used for street purposes and there are no utilities located in the right-of-way. The question is whether you want to create a separate buildable lot. Brian Stumpf asked that prior to the public hearing on the vacation the City should determine if there was sufficient square footage to meet ordinance requirements for a buildable lot. Brian Stumpf said he would like to see the adjacent property owners given the first option to purchase the right-of-way. Bruce Thielen suggested the item be tabled so additional research could be done. BRIAN STUMPF MOVED TO TABLE A REQUEST BY BARRY FLUTH TO VACATE AND PURCHASE A PORTION OF UNUSED WEST 7TH STREET. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. D Council Minutes - 12/13/04 7. Public Hearing - Consideration of appeal of the Planning Commission denial of a variance to the 30' rear yard setback for attached four unit townhome complex in an R-1 District. City Attorney, Tom Scott reported that a settlement had been reached. This item was originally placed on the agenda because of an appeal of the Planning Commission decision by Mike Schneider. The dispute is over what was the allowed setback for two of the buildings in this development. The question is whether the approved setback was 25' or 30'. The Planning Commission denied the variance request and the denial was appealed. Since that the time a settlement agreement has been reached with the affected property owners. The staff was presenting the settlement agreement to the Council for their approval. If the Council approves the agreement they are making a determination that the setback is 25 feet. Mike Schneider is releasing the City from any liability stemming from the stoppage of work. The property owners are accepting the current location of the building and are releasing the City from any liability. The City is not paying any money to any of the parties involved. Tom Scott recommended approval of the settlement agreement and felt it was a good way to resolve the issue. Brian Stumpf asked if this was a common practice used in clearing up a variance denial. Jeff O'Neill said the Zoning Administrator had made an initial determination that the setback was 30 feet and developer was aware that it was 30 feet. Tom Scott said he didn't view this as a variance issue but whether a 25' or 30' setback was approved.. The question was what was the setback that was approved in this case. Jeff O'Neill said the developer was informed that a 30' setback was required even though that was not what the developer showed on the plan. Glen Posusta felt the settlement was a good way to mitigate the damage. GLEN POSUSTA MOVED TO APPROVE THE SETTLEMENT AGREEMENT AND RELEASE DATED DECEMBER 13, 2004. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Roger Carlson asked about what happens in the future if the issue comes up again. Glen Posusta felt the legal costs involved in settling this would keep developers from dong this intentionally. Jeff O'Neill said $55,000,000 in construction was done in the City and this was the first time in 15 years that this problem occurred. 8. Consideration of accepting feasibility report for the CSAH 18/1-94 Interchange and setting public hearing on the feasibility report and layout; authorize land acquisition negotiation and condemnation and authorize preparation of plans and specifications for trunk sanitary sewer and authorize feasibility report for 7tn Street, Highland Way and South Frontage Road. Sub -Items A, B, C, D, E,F 8A. Accept feasibility study and order plans and specifications for the CSAH 18/I-94 interchange project. BRIAN STUMPF MOVED TO ACCEPT THE FEASIBILITY REPORT, ORDER PLANS 7 Council Minutes - 12/13/04 AND SPECIFICATIONS AND DIRECT THE CITY ENGINEER TO BRING BACK PROPOSED ASSESSMENT RATES FOR BENEFITTING PROPERTY OWNERS PRIOR TO PUBLIC HEARING PROPOSED FOR JANUARY 24, 2004. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8B. Authorize a public hearing for Municipal Consent regarding the interchange on I-94 at CSAH final layout. ROGER CARLSON MOVED TO AUTHORIZE A PUBLIC HEARING FOR MUNICIPAL CONSENT REGARDING THE INTERCHANGE ON I-94 AT CSAH 18 STAFF APPROVED LAYOUT FOR JANUARY 24, 2004 AT 7 PM. AT THE CITY COUNCIL MEETING. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8C. Consideration of a resolution authorizing negotiations and if necessary condemnation of land for public purposes (CSAH 18/I-94 Interchange and South Frontage Road Projects) Glen Posusta questioned if Meadow Oak Road is the same as the South Frontage Road. It was indicated it was. Glen Posusta stated that according to the map it appeared that road goes into Church property and he wondered if that was necessary and also wondered if the trees in that area were going to be removed. Bret Weiss stated that this was part of the agreement and that the majority of trees are on the Weinand property. The church has requested the City place the road along the property line. Glen Posusta asked if the church is going to be responsible for '/z the road. Bret Weiss said they have talked to the church and discussed options which the church was going to bring to their board. The engineer has not heard back from them yet. Robbie Smith noted the trees that are going to be removed act as a buffer and he was concerned about their removal. Bret Weiss stated they have talked to the church about maintaining a buffer. Bret Weiss stated the church is not entirely opposed to the road. BRIAN STUMPF MOVED TO ADOPT A RESOLUTION AUTHORIZING NEGOTIATIONS AND IF NECESSARY CONDEMNATION OF LAND FOR PUBLIC PURPOSES (CSAH 18/I-94 INTERCHANGE AND SOUTH FRONTAGE ROAD). GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8D Consideration of a resolution authorizing negotiations and if necessary condemnation of land for public purposes - (Territorial Road Extension) Glen Posusta asked how much negotiation has taken place with the church and what is the status. Bret Weiss said they have met with the church representatives who indicated they would be getting back in touch with him though they haven't yet. Glen Posusta questioned why there hadn't been more negotiations with the church prior to this juncture. He felt this was fairly late in the process to initiate negotiations. Bret Weiss said the City needed to get some appraisals on the property and that needed to be done before an offer could be made. Bruce Thielen added that while staff may have talked about this the Council did not give staff authority to initiate discussions until recently. Bret Weiss indicated that have also been in contact with Mr. Council Minutes - 12/13/04 Busch and John Simola has a talked to a property owner who presented another option that could be looked at. BRIAN STUMPF MOVED TO ADOPT A RESOLUTION AUTHORIZING NEGOTIATIONS AND IF NECESSARY CONDEMNATION OF LAND FOR PUBLIC PURPOSES (TERRITORIAL ROAD EXTENSION). ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. 8F Authorize preparation of a feasibility report for the construction of the South Frontage Road from Meadow Oak Avenue to CSAH 18 ROBBIE SMITH MOVED TO AUTHORIZE PREPARATION OF A FEASIBILITY REPORT FOR THE CONSTRUCTION OF THE SOUTH FRONTAGE ROAD FROM MEADOW OAK AVENUE TO CSAR 18. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8F 1 authorize preparation of a feasibility report for the extension of 7th Street from St. Henry's Church to CSAH 18 and construction of Hifzhland Way from 7 t Street to CSAH 75. Glen Posusta questioned the cost. Bret Weiss indicated the $79,000 was the estimated cost to complete plans and specifications. The cost of the feasibility report was estimated at $23,000 and will be paid for by the developer. ROBBIE SMITH MOVED TO AUTHORIZE OBTAINING SOIL BORINGS, SURVEY, AND PREPARATION OF A FEASIBILITY REPORT FOR THE EXTENSION OF 7TH STREET FROM ST. HENRY'S CHURCH TO CSAH 18 AND CONSTRUCTION OF HIGHLAND WAY FROM 7TH STREET TO CSAH 75 SUBJECT TO THE DEVELOPER PROVIDING A $23,000 DEPOSIT TO PAY FOR THE STUDY. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration of employee salary adjustment to reflect cost of living increase. City Administrator, Rick Wolfsteller, provided the background information on this item noting the City had surveyed other neighboring communities as well as checking the consumer price index. He stated this was not a change in individual job descriptions or wages but a means to keep salaries in line with market conditions. The Council was acting solely on a cost of living adjustment. Brian Stumpf stated that in 2003 and 2004 the City approved an increases that were slightly higher than the CPI. Glen Posusta commented that there were no actual figures as to what certain positions were paid. BRIAN STUMPF MOVED TO ESTABLISH A COST OF LIVING ADJUSTMENT OF 2.7% FOR 2005 FOR THE WAGE SCALES THAT WOULD APPLY FOR NON-UNION EMPLOYEES. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED G� Council Minutes - 12/13/04 WITH GLEN POSUSTA VOTING IN OPPOSITION. 10. Consideration of authorizing AVAR, utility studies and interchange analysis for Heritage Development (Silver Springs Golf Course) Sub -Items A,B,C Approved with consent agenda. 11. Consideration to approve a rezone of Otter Creek Business Campus Outlot H, Outlot E, Outlot B and Lot 1, Block 2 of Otter Creek Crossing from A -O (Agricultural/Open Space) to 11-A (Light Industrial)Applicant: City of Monticello, Otter Creek LLC. The proposed rezoning would bring the City land into the I-1 A zoning designation. It was noted that the rezoning applied only to the City owned land and did impact the land adjacent to the freeway which was previously rezoned to B-4 or Outlot F which would retain the AO classification. Bruce Thielen summarized discussion held by the Council at the workshop as it related to the rezoning of the Otter Creek plat. Part of the discussion centered around whether the industrial park could be considered as relocation site for the AVR Redi-mix plant and whether that use would be compatible with the IDC intended uses in the industrial park. Noting the position of the IDC, the Council felt there had to be some flexibility with the AVR relocation. When a decision is made on the AVR site, if it is to be relocated to the industrial park there would a separate rezoning done but it would not need not be done at this time. Robbie Smith stated that although no rezoning was being done at this time to accommodate the possible relocation of the AVR Redi-mix plant to that site, IDC and others should understand that there could be a rezoning to I-2 in the future. BRIAN STUMPF MOVED TO APPROVE THE REZONING TO I-1 A FOR OUTLOT H, OUTLOT E. OUTLOT B AND LOT 1, BLOCK 2 OF OTTER CREEK CROSSING BASED ON A FINDING THAT THIS DISTRICT IS COMPATIBLE WITH THE CITY'S LAND USE PLAN AND WOULD BE BEST SUITED TO FULFILL THE CITY'S INDUSTRIAL DEVELOPMENT OBJECTIVES AND WITH THE POSSIBILITY EXISTING THAT A PORTION COULD BE REZONED IN THE FUTURE TO I-2 AS A POSSIBLE RELOCATION SITE FOR AVR REDI-MIX. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 12. Consideration to authorize the City Attorney to prepare appropriate documents for Otter Creek Business Campus covenants. As part of this item, John Chadwick spoke to the Council about a few items remaining on the land acquisition. He noted the easement questions had been squared away. Sewer and water being brought to serve Outlot F is still a question. He would like to have sewer and water extended to the site with 18-24 months. John Chadwick said the City could charge him interest from the day the pipe arrived and added that the agreement does not provide for them to pay interest. 10 Council Minutes - 12/13/04 The alignment of pipe to serve this area was discussed. Glen Posusta stated that it appeared that the land could be serviced from the 90' Street line. Bret Weiss stated the lift station is going to be closer to County Road 39 than it is to this property. The question is who extends the pipe to the property line and who pays for it. The City would have to upfront the cost of extending the line through a large area to get it to his property. Glen Posusta asked where School Boulevard hits 90th Street. Bret Weiss indicated it was just before the Bondhus development. Glen Posusta questioned the time frame for serving annexed property. Rick Wolfsteller stated that if utilities are brought to the property line that meets the qualifications in the orderly annexation agreement. Rick Wolfsteller noted that these issues which are being brought up now were not part of the original purchase agreement and should not be part of the closing process. Rick Wolfsteller didn't feel this was any different than the City requiring the easements. Rick Wolfsteller stated the City has provided service when property owners have agreed to pay for it but he questioned whether the City should extend service lines without compensation. Bret Weiss stated a possible route to serve the property would be along the power line easement. Bret Weiss felt there could be a separate agreement prepared that would cover the issue of extension of service to the site and how it would be paid for. John Chadwick suggested striking the 24 month clause from the agreement and everything relating to extension of service. This will not be addressed as part of closing but will be covered in another agreement. BRIAN STUMPF MOVED TO DIRECT THE CITY ATTORNEY TO PREPARE RESTRICTIVE COVENANTS FOR RECORDING FOR THE CITY'S PORTION OF OTTER CREEK CROSSING RELATING TO: A) PROHIBITION AND DEFINITION OF OUTDOOR STORAGE, WITH ALLOWANCES FOR VEHICLE PARKING, TRASH HANDLING AND TRUCKING ACTIVITIES PER IDC RECOMMENDATION; B) REQUIREMENT FOR IRRIGATION OF LANDSCAPING AREAS BETWEEN THE BUILDING LINE AND THE STREET PER IDC RECOMMENDATION; C) PROHIBITION OF METAL EXTERIOR BUILDING MATERIALS WITH EXCEPTIONS FOR ARCHITECTURAL TREATMENTS ON ROOFS, DOORS, WINDOWS, OR SIMILAR ELEMENTS. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 13. Consideration of a preliminary plat and conditional use permit for development stage planned unit development for 47.65 acre commercial/retail development. Applicant: Ryan Companies. The Planning Commission reviewed the preliminary plat and conditional use permit for Ryan Companies at their December 6, 2004 meeting and recommended approval with a number of conditions. According to Jeff O'Neill most of the conditions noted have been resolved. One of the items remaining is Outlot D which is at the entrance into the development and its proposed use. It could be considered as public space and it is located along the pathway system. The question is who is responsible for paying for improvements related to it and who is responsible for maintaining it. Jeff O'Neill suggested the developer could provide funds for the City for improvements to the Outlot D in exchange for a larger pylon sign. The Council 11 Council Minutes - 12/13/04 questioned why the City would want to maintain the site and felt it should remain under the jurisdiction of the developer. Another is issue is building design standards and the developer indicated they are willing to work with staff on this. Another issue was the funding of stop lights on CSAH 75. Bret Weiss indicated that he wanted it shown on the site plan that a light was going to be placed there and the that item was included in a finance plan that the developer agreed to. Roger Carlson asked why the park would want to get involved in the development of a small lot that had a number of fairly steep slopes. Bruce Thielen said he would like to see the developer maintain the outlot. John Simola stated he was not aware that the City was in favor of maintaining the outlot. Jeff O'Neill said the Parks Commission Chair brought up the suggestion. Bruce Thielen suggested the developer make a presentation to the Parks Commission but the developer should maintain the site. Glen Posusta questioned whether the City should be considering a plan until there has been a resolution of the AVR issue. He felt the City might get in a bind by proceeding before the AVR piece is in place. City Attorney, Tom Scott said any resolution approving this was conditioned upon entering into a development agreement. BRUCE THIELEN MOVED TO APPROVE THE CONDITIONAL USE PERMIT FOR DEVELOPMENT STAGE PUD FOR RYAN COMPANIES BASED ON A FINDING THAT THE PROJECT MEETS THE GENERAL INTENT OF THE CITY'S PLANNING OBJECTIVES FOR THIS AREA INCLUDING THE REQUIREMENTS SET FORTH IN EXHIBIT Z INCLUDING REFERENCE TO THE REQUIREMENTS OF THE CITY ENGINEER'S REPORT AND SUBMISSION OF REVISED PLANS MEETING ALL CONDITIONS PRIOR TO FINAL APPROVAL AND ADDITIONAL REVIEW OF BUILDING PLANS BY BOTH PLANNING COMMISSION AND CITY COUNCIL. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. ROGER CARLSON MOVED TO APPROVE THE PRELIMINARY PLAT FOR RYAN COMPANIES BASED ON THE FINDING THAT THE PLAT PROVIDES FOR THE PROJECT AS REGULATED WITH THE CONDITIONS AS SPECIFIED IN EXHIBIT Z. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 14. Consideration of Alternate Site for New Water Tower Location John Simola provided background on the City's efforts thus far to select a site for the new one million gallon water tower. A number of sites in the plat of Jefferson Commons had been looked at. The original site met with opposition from residents in the abutting Groveland Development. Sites 2 and 4 which were also adjacent to residential developments were not given major consideration. At an earlier meeting the Council looked at site 3 which is south of School Boulevard and west of the theater. John Simola indicated the incoming Council had expressed their desire to have site 4 studied. Site 4 is adjacent to the mobile home park. Prior to the regular meeting the City held an informational meeting to present information about 12 Council Minutes - 12/13/04 proposed site 4. Bret Weiss reviewed the costs related to the proposed sites. Site 1, the original choice had an estimated cost of $672,228. Bret Weiss noted the land cost north of the power line was estimated at $6.50/ft and the area south of the power line was estimated at $4/ft. Site #3 is $889,000 and site #4 is $788,000. Bret Weiss felt the southerly option was the most cost effective. Brian Stumpf stated that as far as the fire department is concerned if the site for the fire hall/water tower is moved to the southerly portion of Jefferson Commons then it is an access concern for the fire department. They would have to go through the whole development with their fire equipment or to get to their equipment. Bret Weiss said site 3 and 4 were in close proximity to School Boulevard while the original site was closer to TH 25. Bret Weiss noted that a lot of the development was happening to the west, such as Insignia, Chadwick and Heritage. Brian Stumpf felt the proximity of site #1 allowed movement of equipment as quickly as possible. Fire Chief Scott Douglas stated that they may not know if they want to build a new station but it is important to set the land aside now. He felt the closer they could be to TH 25 the more efficient their response time would be. He point out a few minutes of time makes a significant difference in an emergency situation. Scott Douglas said if site #1 is off the table then site #3 would be the preferred site. Glen Posusta felt that while the site is a little further away they won't be going through many lights. Glen Posusta asked if the fire department is looking at building a new station or having a satellite station. Scott Douglas reiterated the need to have the site ready now regardless of when they build. Mark Rolfs From Bonestroo reported on the soil borings and the time frame for completing the project. He noted at site #3 there is thin layer of compressable clay down deep that could be a problem. Site #4 also has a layer of compressable clay which is thicker than site #3. He noted it proposed to approve the plans and specifications in February and bid the project in April. With that schedule no painting would be done on the tower until 2006. GLEN POSUSTA MOVED TO RELOCATE THE TOWER FROM THE PREVIOUSLY APPROVED SITE #3 (THE WEST OF THE THEATER) TO SITE #4 (NEAR THE KJELLBERG' S MOBILE HOME PARK TO SOUTH). Brian Stumpf suggested that the incoming Council provide their comments on this issue. Clint Herbst said the main concern is economics. Wayne Mayer said he would like to go to site #4 but he questioned if there was something in the soils that would need to be addressed before deciding on site #4 . Mark Rolfs said the potential for settlement exists. He felt they could drive a piling through the layer of soil and that would resolve the problem but he could not give an estimate of the cost at this time. Tom Perrault said when visiting the mobile home park, the residents were more concerned about getting city water than having a tower located adjacent to them. He indicated that the 13 Council Minutes - 12/13/04 Kjellbergs might not continue in use as a park. He would prefer to see something other than water tower be developed at site #3. Robbie Smith was against site #4 because he felt the City should find a neutral site. If the issue was solely economics then he felt site #1 would best. ROGER CARLSON SECONDED THE MOTION. UPON VOTE BEING TAKEN BRIAN STUMPF, BRUCE THIELEN AND ROBBIE SMITH VOTED AGAINST AND GLEN POSUSTA AND ROGER CARLSON VOTED IN FAVOR THEREOF. 15. Consideration of accepting feasibility report for the trunk sanitary sewer extension - SE Interceptor/Bondhus segment and order preparation of plans and specifications, Project No_ 2002-12C Bret Weiss provided background information. Mr. Bondhus had agreed to provide the easement. The pipe would go around the outside of his property, to St. Benedict's property and to the Ryan site to the south side of the freeway. There are three alternatives to look at: 1) extend 36" gravity flow sewer line. This would eliminate the reservoir lift station. Cost would be $1.5 million 2) Extend pipe along I-94 to the lift station site and put a stub in Fallon Avenue. Cost estimated at $1.5 million. 3) Go along the freeway and down Chelsea Road. Also estimated at $1.5 million. The project is a trunk improvement and could be covered by sanitary sewer trunk funds. Easements from Bondus, Ryan and Weinand will be in place but some other additional easements will be needed. Bret Weiss reviewed the time frame for completing the project.. John Simola noted that one of the alternatives involved moving of Chelsea Road and assessments for Fallon Avenue. In that case a public hearing would be required. Bret Weiss indicated if it was determined that this was the primary alternative then a public hearing will be scheduled. Glen Posusta asked how the City could justify assessment to property owners who have sewer and water. Bret Weiss responded that the assessments would be for streets improvements not sewer and water. Glen Posusta said Mr. Bondhus had contacted him and asked why this was needed at this point in time. Bondhus also questioned the proposed alignment of the pipe. Bondhus would give an easement to go through his property instead of zig zagging around it with the condition that the sewer not be built until there is a specific need. Glen Posusta asked why the City didn't go on the south side of the railroad tracks as opposed to the north side. Bret Weiss said they had discussions earlier with Mr. Bondhus and this is what they agreed to so they really didn't look at other options. John Simola challenged the statement questioning whether this project was needed. He indicated the sewage has been backing up in the Chelsea Road for some time. This information was confirmed by Matt Theisen, Sewer and Water Superintendent In addition the proposed Heritage Development and the industrial park will need to hook up to this line so it needs to be done at this time. BRIAN STUMPF MOVED TO ACCEPT THE FEASIBILITY REPORT AND ORDER PREPARATION OF PLANS AND SPECIFICATIONS FOR THE EXTENSION OF THE 14 Council Minutes - 12/13/04 TRUNK SANITARY SEWER AS PROPOSED. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. 16. Consideration of settlement proposal from LMCIT Insurance. Glen Posusta felt it was not the wisest thing for the City to go with the first offer from the insurance company and should make a counter offer. Rick Wolfsteller stated that is an option but pointed out that this is not the first offer from the insurance company. They had originally said they would not pay anything since the City was planning to demolish the property any way. He felt the insurance company would get an appraiser and pay based on the value established by the appraisal. He added that the LMCIT is set up by the League of Minnesota Cities to help cities keep insurance costs affordable. GLEN POSUSTA MOVED TO PROPOSE A ALTERNATE OFFER OF $50,000 TO THE INSURANCE COMPANY FOR SETTLEMENT ON THE CLAIM ON THE KRAMER HOUSE. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 17. Consideration of approving payment of bills for December Glen Posusta questioned the bills from Menard's and why these items couldn't be purchased locally. He also questioned the payment for yoga class and the detailing on the Dodge Caravan. He questioned the need for the feasibility study on the School Boulevard signal. Bret Weiss stated that the first step in a project is to always do a feasibility study and in this case the signal justification report is a requirement of MnDOT before the project could proceed. ROBBIE SMITH MOVED TO APPROVE PAYMENT OF THE BILLS. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Added Items: Swan River Montessori School - On November 22, 2004 the Council approved the concept for the school to occupy the old Methodist Church and authorized staff to move forward on negotiating a memorandum of understanding. Staff has met with representatives of the school regarding issues relating to the building. The City would be prepaying rent for the use of the facilities after 6 p.m during the week and full days on weekends. In turn the school would be reimbursing the MCC for use of MCC facilities for their students. It is estimated that there would be $63,000 reimbursement from the school for use of the MCC facilities and $10,000 in rental revenues generated by the church facility. Staff is continuing to work on the project. Bruce Thielen said the reason he asked for the update was that since the last meeting he had heard from a number of residents in the community so he is having second thoughts on his position on the school. He is adamant that the City doesn't lose the property and that now appears to be the case with the proposal that another entity needs to purchase the site since the charter school cannot. He is uncomfortable with the prepayment of the rent. If the school should close down Monticello taxpayers 15 Council Minutes - 12/13/04 will pick up the cost. BRUCE THIELEN MOVED TO RECONSIDER THE APPROVAL OF THE CONCEPT PLAN FOR SWAN RIVER MONTESSORI SCHOOLS USE OF THE METHODIST CHURCH. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. Mayor Thielen allowed those present to speak on the issue of the school. Liz Sell, 2523 Briar Oakes Boulevard stated this is not an area where the City should be involved. The City should not be involved with building schools and she stated the charter school will compete with the existing schol was not district and will impact the children. She was concerned about the lack of communication k someuestions such as: clear even among staff what the proposal was. She felt the City needed � act on fire department. Does the City need the rental space 2) How does it affect MCC use, 3) o� the site. Its proximity to Initially the City thought this was a true lease but now the school must the MCC makes it more valuable to the MCC. There is no other lot to replace it for expansionSince the school changed the terms of purposes. She felt the MCC has a greater need for the property. She emphasized her belief that it the proposal she felt the City had the right to reverse theirposition. was not the City's mission to build schools. Glen Posusta respondedsaying sa in the reason the MCC was built was to help downtown Monticello. He said the MCC was drivingsome of the commercial activity taking place in the area. He felt the would bring people le into the downtown area. Glen Posusta noted the school has guaranteed funds uds for a. three years and that 80% of the City's cost would be recouped in that time. He felt the city woschools in back 3-4 times the value of their investment. Glen Posusta said the City is not cello doenot. publicain but other communities have a choice when it comes to schools and Monti out that arks and recreation is part of the City's mission but building schools is not. felt the Liz Sell pointed P City is going to assist this school they should also assist the public school. Glen Poe time. Since If the C y g gwas money for the ice arena was like a grant since the only thing the City was e revenue his proposal the MCC expenses were in excess of $1 million the City should look at would generate. City Bruce Thielen stated the Cit has no money tied up in the church at this point. $150,000 will be needed to make the church a viable building. Funds for the building were received from Sunny Fresh. Jeff Burns, 1517 West River Street, stated when it was first proposed to move the church he didn't think it was a good idea. He feels the Montessori school was a good program but he didn't feet the tould hold City should subsidize the school without a referendum being held. He agreed that the city mission. onto the property and likewise agreed that subsidizing education was not part of t e ty is Isabelle Olson and C p P Chris Cooper representing the Swan River school spoke. Isabelle said the City ainst it. It is a question of choice. She noted they had approached the school district either for rt or a g l the school about reng p tin space from them. The Swan River school had no intention of building unt children. She turned them down. She said the school will bring in 40-60 people a day to pick nptheir der their choice. felt this was good for the children of Monticello. She urged the Council to rec 16 Council Minutes - 12/13/04 She said it is not a subsidized school but a business decision. Chris Cooper read a letter from Sunny Fresh dated June 22, 2004. She said that in this letter Sunny Fresh gave the $200,000 to the school for education purposes. She noted that $175,000 of the grant has been spent in an unsupervised manner resulting in a building with very little visible equity. This created the problem for them as they could not get financing for a building with no equity. Due to lack of oversight and accountability they had to come back to the City in a compromised position to try to determine how to make this proposal work. Bruce Thielen said having a choice of schools is great but the question is whether it is the City's role to subsidize schools. He brought the issue back up because he is not comfortable with the proposal. Glen Posusta said he was disappointed that Bruce Thielen didn't have the courage of his convictions Roger Carlson stated he is torn on this issue. He believes in opportunities for education but has questions whether the City should fund this. He is in favor of alternative education but he has a problem with City being involved in it. He tends to agree with the Mayor that things have changed and he is no longer comfortable with the proposal. Robbie Smith noted he has been against this proposal from the beginning. He too believes in choices and he does not question that the Montessori school is a good program but he can't support the City being involved in this kind of activity. BRUCE THIELEN MOVED TO DENY CONCEPT PLAN APPROVAL FOR THE SWAN RIVER SCHOOL AND TO HAVE STAFF CEASE NEGOTIATIONS WITH THE SCHOOL. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED WITH GLEN POSUSTA VOTING IN OPPOSITION. City Administrator, Rick Wolfsteller thanked the council member who are leaving for their years of service and stated he enjoyed working with them over the years. He hoped they would stay involved in the City. Brian Stumpf echoed the sentiments. 18. Adjourn. BRUCE THIELEN MOVED TO ADJOURN AT 10:20 P.M. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary °" 17