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City Council Minutes 04-14-2003MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL April 14, 2003 - 7 p.m. Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen. Members 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 March 24, 2003 regular Council meeting ROBBIE SMITH MOVED TO APPROVE THE MINUTES OF THE MARCH 24, 2003 REGULAR COUNCIL MEETING. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 2B. Approve minutes of March 24, 2003 special Council meeting. { ROGER CARLSON MOVED TO APPROVE THE MINUTES OF THE MARCH 24, 2003 SPECIAL COUNCIL MEETING. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of adding items to the agenda. City Administrator, Rick Wolfsteller indicated prior to the closing of the meeting he would like an indication of how many members of the Council would be attending the orientation session at the Wright County Courthouse on April 17, 2003. 4. Citizen comments/petitions, requests and complaints. Mayor Thielen explained the purpose and procedures of the citizens comments portion of the meeting. No one spoke under citizen input. 5. Consent agenda. A. Consideration of resolution approving renewal of charitable gambling license for American Legion Post #260. Recommendation: Approve renewal of charitable gambling license for American Legion Post #260. Resolution No. 2003-20. 1 Council Minutes - 4/14/03' B. Consideration of ratifying new hires as identified. Recommendation: Ratify the new hires as identified. C. Consideration of a request for a conditional use permit for concept stage planned unit development to construct office/retail building and parking. Applicant: Mike Cyr/MLC Building and Remodeling and Liberty Savings Bank. Recommendation: Approve concept stage PUD for a two -building commercial development known as Liberty Park based on a finding that the plan is consistent with the PZM zoning, with conditions that the applicant coordinate the driveway locations with other nearby development and that development stage PUD plans include building materials, landscaping, lighting plans and other standard PUD submission requirements. D. Consideration of amendments to the district boundary map identified in the Downtown Redevelopment Plan. Applicant: City of Monticello. Recommendation: Approve the amendments to the Downtown Revitalization District Boundary Map. E. Consideration of a request by Home Depot to allow a pylon sign in excess of the zoning requirements. Recommendation: Approve a taller and larger pylon sign for the Home Depot and Retail B complex based on the finding that the size of the parcel (38 acres) combined with the use of the PUD will allow the City to exchange approval of the taller sign for other sign restrictions that will result in a superior development including monument signage identifying individual tenants only. Sign restrictions include the following: 1. One pylon sign as requested in excess of code per 38 acre site. 2. Additional freestanding signs cannot exceed 17' in height and must be landscaped monument signs. F. Consideration of allowing a benefit/street dance at the west parking lot of the Community Center on Friday, May 2, 2003. Recommendation: Move to approve utilization of the Community Center site for a benefit/street dance on Friday, May 2, 2003 and associated beer sales license. G. Update on goal setting process - determine need to prioritize tasks prior to joint Monticello Local Government Meeting. Recommendation: Move to complete prioritization after the joint Monticello Local Government meeting. Glen Posusta request that items #5C and #5E be removed from the consent agenda for discussion. Mayor Thielen asked the reason for removing the items. Glen Posusta stated that he wanted clarification on how plan review and the permit process will be handled for #5C since a city staff member is personally involved in the development. Mayor Thielen suggested that since this related to a personnel issue #5C would be placed at the end of the agenda and #5E would be considered after approval of the consent agenda. Brian Stumpf indicated that this issue was raised at the pp g 2 Council Minutes - 4/14/03 Planning Commission meeting and the Planning Commission was assured that there was no conflict of interest. BRIAN STUMPF MOVED TO APPROVE THE CONSENT AGENDA WITH ITEM #5C BEING REMOVED TO THE END OF THE AGENDA AND ITEM #5E BEING REMOVED FOR FURTHER DISCUSSION. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration of items removed from the consent agenda for discussion. Item #5E related to the request of Home Depot for a pylon sign in excess of the ordinance requirements. Glen Posusta wanted to know where the City was with Home Depot's request and whether the City should consider a different type of sign ordinance for larger areas. Deputy City Administrator, Jeff O'Neill, reported that the Planning Commission supported the 60' sign based on their findings that the area in question was large and the developer had made concessions on other signage for the site. The Planning Commission also made a motion to hold a public hearing to look at the sign ordinance. The ordinance would set out some guidelines so that the signage would not have to be done as a PUD. Jeff O'Neill stated that the input received at the public hearing will be used to formulate the ordinance. Glen Posusta asked is the proposed ordinance would affect the Home Depot sign request. Jeff O'Neill stated that Council approval tonight would take care of the sign issue for Home Depot. BRIAN STUMPF MOVED TO APPROVE A TALLER AND LARGER PYLON SIGN FOR THE HOME DEPOT AND RETAIL B COMPLEX BASED UPON THE FINDING THAT THE SIZE OF THE PARCEL (38 ACRES) COMBINED WITH THE USE OF THE PUD WILL ALLOW THE CITY TO EXCHANGE APPROVAL OF THE TALLER SIGN FOR OTHER SIGN RESTRICTIONS THAT WILL RESULT IN A SUPERIOR DEVELOPMENT INCLUDING MONUMENT SIGNAGE IDENTIFYING INDIVIDUAL TENANTS ONLY. SIGN RESTRICTIONS INCLUDE THE FOLLOWING: 1) ONE PYLON SIGN AS REQUESTED IN EXCESS OF CODE PER 38 ACRE SITE; AND 2) ADDITIONAL FREESTANDING SIGNS CANNOT EXCEED 17' IN HEIGHT AND MUST BE LANDSCAPED MONUMENT SIGNS. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Public Hearing on Phase I of Core Street Reconstruction Program, Project No. 2002-14C. City Engineer, Bret Weiss, gave a presentation on the work proposed under this project. He noted that the City had discussed the project for a number of years. Many of the City's streets are over 25 years old and are in need of work. The Street Reconstruction program will be taking place over a number of years and the overall cost of the project is estimated at $12,000,000. Phase I is the area bounded by CSAH 75 on the north, TH 25 on the east, Elm Street on the west and 7"' Street on the south. Bret Weiss reviewed the water main facilities in the area noting which lines J Council Minutes - 4/14/03 were proposed to be replaced. He also explained the condition of the sewer lines in the area and the corrective work that would be needed on the sanitary sewer system. He showed a brief video of the televising of one of the sewer lines and explained how the televising reveals the condition of the line as far as cracks and dips. He noted that some of the pipe iii the Phase I area is clay pipe which is more susceptible to cracking. Bret Weiss then went on to explain the street work that would be done as part of the project. He noted that originally the streets in the area were constructed with 4"-5" of bituminous placed directly on the existing soils. There was no Class V base as there is in street construction today. The typical commercial street section is 40'-44' and the residential section is 30'-36' wide. A commercial section would have 4" of blacktop over 8" of Class V and a residential section would have 4" of pavement over 6" of Class V. Bret Weiss explained the reclamation process the City is proposing to use. He indicated that at this time it has not been determined whether the wear course would be applied this year or the following season. In Phase I Walnut Street, 6"' Street and a portion of Elm Street are state aid streets and state aids fiends could be utilized on this project.. The streets in this area are cracked and patched and there are places where the curb and gutter are in need of repair. The estimated cost for Phase I, if done in its entirety, is approximately $3,000,000 with $2,049,125 for the street work, $312,650 for sanitary sewer work; $418,000 for watermain improvements and $222,430 for storm sewer improvements. The area proposed for Phase I was split into two areas, north of the railroad tracks and south of the railroad tracks. Bret Weiss broke out the cost of the improvements for each area. If only Area 1-A was done at this time the estimated project cost would be $1,778,480. If only Area 1-B was done the estimated cost would be $1,252,760. Some storm sewer work is being proposed that would replace the 12" line on Locust Street and a storm sewer outlet for the apartments on Minnesota Street is also being proposed. A segment of sidewalk on 4"' Street between Maple Street and Elm Street is proposed to be added. Bret Weiss then covered funding sources that could be utilized to finance the street reconstruction project. He noted that State Aid funds could be used to cover some costs in addition to the proposed assessments against benefitting property owners. He stated although the City had discussed how the utility replacements costs could be handled they had not made a final decision whether the costs would be funded from the utility funds or through an utility assessment. Bret Weiss cautioned that the estimated assessment of $3,000/per residential unit or $70/ft. for non- residential property was preliminary. Final costs would not be known until the assessment hearing. Bret Weiss stated that if the Council authorizes preparation of plans and specifications at this meeting, they would try to have the plans and specifications back to the Council for their approval in May. It is hoped to award the bids in June and start construction in late June with an estimated completion date of November 1St. The assessment hearing for the project would be held in 2004 and the assessment would be certified for collection with the 2005 taxes. Bret Weiss summarized saying that the City had studied the best way to implement the program for reconstructing the City's M Council Minutes - 4/14/03 streets and they felt it was important to begin the reconstruction of the streets before the infrastructure was too far deteriorated to be restored. The City Engineer then responded to questions from the City Council. Mayor Thielen stated that the City has considered this program for some time and even though the City has set aside funds to cover some of the costs of the program it still requires assessment of benefitting property owners. Mayor Thielen also asked for clarification from the City Attorney about a member of the Council participating in the matter if he is one of the affected property owners. The City Attorney indicated that the Councilmember may participate in discussion but should not vote on the matter. Mayor Thielen then opened the public hearing. Rory Zitur, 354 West Broadway, asked why the townhouse developments and the City owned property were not being assessed. He asked how the $3,000/per residential unit and the $70/ft. for non-residential property were arrived at. He stated that the estimated assessment on this project for his property was over 12% of his assessed property value. He did not believe the reconstruction of the street would increase the value of his property by 12%. He felt the City should not push ahead with this project because of the bad economic times. He also questioned whether the economic woes of the state would affect the amount of state aid the City would receive. Bret Weiss responded that the townhouse developments would be assessed $70/ft. along their public street frontage but nothing for their internal streets which are private streets. He indicated that the City was already funding a large portion of the project cost and therefore no assessment was put against City owned property. The estimated assessment rates were based on benefit to the property. Bret Weiss indicated that many residential property have lower value than commercial property and cannot carry as high an assessment as commercial property. As far as state aid funds, Bret Weiss stated that the funds were 12% less this year but that is as far as it can be reduced. Rory Zitur questioned whether the City would be paying for the utility replacement costs. Bret Weiss indicated the decision ultimately will be made by the Council Usually replacement of utility lines were not assessed but replacement of services could be. Rory Zitur then asked if the City doesn't have to prove benefit in the amount of the assessment proposed. Bret Weiss responded that the property owner has to show proof that his property did not receive benefit. Public Works Director, John Simola, noted that currently city ordinance does state that the property owner pay for replacement of utilities. Brad Fyle, 501 West Third Street, stated that he was not for going ahead with the street project. He didn't feel there were that many cracks in the street that warranted replacement of the street and he didn't agree that the streets were at the end of their useful life. He also expressed concern that starting this project when the CSAH 75 was not yet completed was trying to do too much. He stated that there are other streets in the City in worse condition than the ones proposed to be covered under this project and he specifically cited River Street by Riverside Cemetery. He felt the City should hold off on the project for one more year. G Council Minutes - 4/14/03 Jeff Burns, Little Mountain Feed, 410 Maple Street, concurred with the comments of Brad Fyle. He felt with the numbers of streets torn up parts of Monticello would be impassable. He noted that with the war in Iraq and the budget concerns it would advisable to wait on this project. Bret Weiss responded that a pre -construction meeting on the CSAH 75 project is scheduled and it is estimated that the work on CSAH 75 should be done by June which would be before the Street Reconstruction project would be started. Bret Weiss stated that there should be no more than 4 weeks between when the road is cut up and when the blacktop is laid. He also stated that not all the streets in the project area would be done at the same time. The contractor would work in sections, completing an area before moving onto the next area. Mayor Thielen asked Rick Wolfsteller, the City Administrator, to comment on how the state budget woes impact on the City's budget. Rick Wolfsteller stated that the City sets a budget each year which includes capital expenditures. Since the City receives very little local government aid, the City's budget was not drastically affected by the loss of local government aid. Randy Ruff, from the former Ruff s Auto site, questioned that since the salvage yard facility was no longer there why was the property being assessed as commercial. He also questioned when the extension of 7" Street would take place since that would be beneficial to development in the area. He also stated there were some boundary line issues affecting his property that need to be clarified before development could take place. He also asked what the right-of-way width and paving width of the street would be and if state aid funds were available for Elm Street. John Simola responded that the right-of-way width is 66' and the paving width would be 36'-40'. Randy Ruff also asked how the property his parents own would be serviced with utilities and if the assessment for the project couldn't be extended from 10 to 15 years. Rick Wolfsteller stated that typically the assessments have been 10 years but if the Council extended the length of the term of the bonds issued to finance the improvements, it would be possible that the assessments could be extended. Bret Weiss stated that any property that was not specifically single family was assessed at the non- residential rate of $70/ft. Bret Weiss said although he was not aware of the boundary line issue he and John Simola would be willing to meet with Mr. Ruff to discuss the matter. Randy Ruff asked about the storm sewer work being proposed and how that would be assessed. Bret Weiss explained that some of the cost for the storm sewer would be picked up by the developers. It was pointed out that if the Ruff Auto site was developed, the stormwater pond on the Village Apartments site would have to be enlarged. Opal Stokes, 215 Locust Street, questioned the proposed storm sewer work. Bret Weiss indicated that the storm sewer work on Locust Street is to accommodate new business and will not be charged to the residents. Brian Stumpf asked Bret Weiss to address why River Street not being done at this time. Bret Weiss indicated that West River Street would involve a major sewer line replacement which would be very expensive. Council Minutes - 4/14/03 Mary King, 720 West 4"' Street, wanted to go on record as being against the project. She felt it was not a "needed" project but a "nice to do" project. She stated the project was not feasible and the City should wait with doing it. Mary King asked where the stewardship was on this. Mayor Thielen responded that City has talked about this project a long time. The City has been very sensitive to financial concerns of the residents but the City has to start at some point to address the infrastructure of the City and since this area had some of the oldest streets it was a logical place to start. He appreciates that people are stressed but the City has a duty to take care of the infrastructure of the City. Bret Weiss added that there is a point when the streets are so far gone they can't be reconstructed. He added that the Public Works Department has put a lot of time and money into repairing the streets to extend their useful life a little bit longer. John Simola stated that $16,000 had spent in the last two years for patching and repair work in that area and the street is so worn in places that there is nothing for the skin patches to adhere to. Continuing to patch is not a cost effective way of dealing with the deteriorating street. Harry Bebo of Harry Auto Supply, asked about the completion date of November 1St. He questioned why they couldn't start the project earlier. He also expressed concern about difficult access because of the street project costing him business. Bret Weiss responded that it was their intent that substantial completion of the project would be prior to November 1St. He added that the schools prefer to know at the beginning of a school year when roads will be different because of construction rather than having to make the change during the year. Mayor Thielen asked if the specifications can be written up in such a manner so that the contractor is not tearing up the streets willy-nilly. Bret Weiss indicated that it could be determined in the design process whether the streets would be done going north -south or east -west. Glen Posusta noted that 3rd Street West is used as the parade route for Riverfest so that would have to be worked around. John Weyrauch from Hope Evangelical Church, 501 & 513 4"' Street West questioned how the church property would be assessed. Bret Weiss stated that it would be assessed at the non- residential rate of $70/ft. Mr. Weyrauch indicated that the County had the property listed as residential. Another resident was worried about whether people could afford this project with the present economic conditions and he felt there needed to be a better maintenance program for the streets. Bret Weiss indicated that $3,000 was what they felt would be the higher amount as an assessment rate but added that bids have not been received yet. If the bids came in higher than expected, the Council has the option not to proceed with the project. Nate Rikansrud from Sunny Fresh Foods had several concerns: 1) Scheduling of traffic and how it will affect Sunny Fresh. They have 30 trailers a day coming into their site. Bret Weiss indicated that when they get into the construction sequence is set they could work on traffic scheduling. 2) The installation of an 8" water main. There currently is a 4" main to the building and the Greg Pauman from Sunny Fresh had indicated they would like more flow. 3) What would they expect the useful 7 Council Minutes - 4/14/03 life of the new streets to be and what steps would they take to make the road last longer. Bret Weiss stated that with proper maintenance they would hope to get a useful life of 30 years. 4) He noted that the interest rate proposed would be 2% above the bond interest rate and he wanted to know where that 2% goes. Rick Wolfsteller indicated that 2% was a cushion. Steve Bachler, 607 411' Street stated his belief that the City Engineer had a firm who was pushing to get the project done and he felt this was a conflict of interest. He asked if the Council had walked that road. He felt the few bad spots could be removed and the whole street didn't need to be reconstructed. Rory Zitur asked if Bret Weiss didn't get paid a percentage of the total project and therefore had more to gain from a larger project being done. Bret Weiss stated that engineering fees can be charged on hourly basis or a percentage of the project. Mayor Thielen stated it was the Council's job to determine the scope of a project and to make sure the prices don't get too high. Mayor Thielen then closed the public hearing. Brian Stumpf felt they should proceed with the project because it is something that has to be done. It will not make people happy but he felt the infrastructure has to be maintained. Glen Posusta stated that the project should be scaled back and split into two or three sections. He felt it would appeal more to the people if the project was on a smaller scale. He was also concerned about using all the street reconstruction fund money in the first phase. Bruce Thielen stated that he felt this would be an ongoing program and that it was very important for the project to get off on the right foot. He thought the area from CSAH 75 to the railroad tracks would be more manageable. Glen Posusta felt it would be better to do Area 1 B instead of Area IA. Brian Stumpf felt that 611' Street was really in need of work. John Simola spoke about the economies of scale that could be realized in doing both areas. Bret Weiss stated that if the Council scales back the project it will extend the program longer than the 7 years initially stated Robbie Smith asked if the City does 1 A or 1 B would the assessment stay the same. Bret Weiss stated the assuming the City is not going to increase the amount they levy for the street reconstruction fund, the assessment amount would not cover the cost of the project. Changing the assessment rate would impact how quickly the city can fix the streets. Bret Weiss felt there were utility improvements in both 1 A and 1 B that need to get done. Glen Posusta asked if the assessment rate would be the same in 2009 as in 2003. Bret Weiss explained that although a rate would be established it would be adjusted annually based on the construction price index. Bret Weiss also stated that any new improvement, not previously existing, like curb and gutter would be assessed fully to the benefitting property owners. Bret Weiss indicated that doing both 1 A and 1 B together would result in less disturbance since the contractor would only be in the area once. Whereas splitting the project into smaller segments makes the residents feel like there is always construction going on. Roger Carlson asked what the savings would be as far as economy of scale, would it be a 5% or 10% savings. Bret Weiss indicated that he couldn't give a percentage of savings. He noted that the plans and specifications could be set up where 1 A and 1 B are bid separately and then also bid as combined project. At E? Council Minutes - 4/14/03 �I theoint where the bids have been received the Council could then decide what the scope of the p p project would be. GLEN POSUSTA MOVED TO ACCEPT THE FEASIBILITY REPORT AND ORDER PREPARATION OF PLANS AND SPECIFICATIONS FOR AREA 1-B. Motion died for a lack of second. ROGER CARLSON MOVED TO ACCEPT THE FEASIBILITY REPORT AND ORDER PREPARATION OF PLANS AND SPECIFICATIONS FOR AREA 1-A, AREA 1-B AND THE COMBINED AREA. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Robbie Smith asked if was determine to do only area 1 A could the storm sewer work in 1 B be done as part of IA. Bret Weiss indicated it could. Rick Wolfsteller pointed out that the Council would have an opportunity to look at the plans and specifications before the project goes out for bids. 8. Public Hearing - Consideration of an ordinance annexing_ property into the City of Monticello (Wolters Property -Prairie Ponds). It was noted that the public hearing involves a 66' strip land whose ownership is in question. It was included in both the Prairie Ponds plat and the Groveland 4"' Addition plat. The County is saying the property has not been annexed even though the strip of land was included in the legal description for Groveland 4"' Addition which had been annexed into the City. The City Attorney recommended conducting the public hearing and approving the ordinance which would satisfy Wright County. Mayor Thielen opened the public hearing. No one spoke for or against the proposed annexation. Mayor Thielen then closed the public hearing. BRIAN STUMPF MOVED TO ADOPT THE ORDINANCE ANNEXING THE 66' STRIP OF LAND INTO THE CITY. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration of various utility fees and increasing fees to cover replacement in the future This item was tabled until the next meeting. 10. Approve payment of bills for April, 2003. ROBBIE SMITH MOVED TO APPROVE PAYMENT OF BILLS. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 9 Council Minutes - 4/14/03 11. Preliminary consideration of employment matter. The Mayor stated that the Council would be closing the meeting to consider a personnel issue. ROBBIE SMITH MOVED TO CLOSED THE MEETING. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. The Council Chambers was cleared at this time and the meeting closed. The Council meeting was reopened at 10:15 p.m. Mayor Thielen stated that the Council met in a closed session to discuss an personnel matter and he is a now looking for a motion to refer the employee matter to the City Administrator and the Deputy City Administrator for research and to come back to the City Council with a recommendation on appropriate action, if any is needed. BRIAN STUMPF MOVED TO REFER THE EMPLOYMENT MATTER DISCUSSED IN THE CLOSED SESSION TO THE CITY ADMINISTRATOR AND DEPUTY CITY ADMINISTRATOR WHO WILL RESEARCH THE MATTER AND REPORT BACK TO THE COUNCIL ON THE APPROPRIATE ACTION, IF ANY, THAT SHOULD BE TAKEN. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. The Council then considered item #5C from the consent agenda which was a conditional use permit for concept stage planned unit development to construct an office/retail building and parking. GLEN POSUSTA MOVED TO APPROVE CONCEPT STAGE PUD FOR A TWO BUILDING COMMERCIAL DEVELOPMENT KNOWN AS LIBERTY PARK BASED ON A FINDING THAT THE PLAN IS CONSISTENT WITH THE PZM ZONING AND WITH THE CONDITIONS THAT THE APPLICANT COORDINATE THE DRIVEWAY LOCATIONS WITH OTHER NEARBY DEVELOPMENT AND THAT DEVELOPMENT STAGE PUD PLANS INCLUDE BUILDING MATERIALS, LANDSCAPING, LIGHTING PLANS AND OTHER STANDARD PUD SUBMISSION REQUIREMENTS. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY Other Items: Rick Wolfsteller asked how many people would be attending the orientation session at Wright County on Thursday April 17, 2003 so that he could inform the County of the number attending. 12. Adjourn. BRIAN STUMPF MOVED TO ADJOURN AT 10:25 P.M. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 10