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City Council Minutes 10-10-1989MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Tuesday, October 10, 1989 - 7:00 p.m. Members Present: Fran Fair, Warren Sinith, Ken Maus, Shirley Anderson, Dan Blonigen Members Absent: None 2. Approval of minutes. Motion was made by Warren Smith, seconded by Shirley Anderson, to approve the minutes of the regular meeting held September 25, 1989. Voting in favor: Ken Maus, Warren Smith, Shirley Anderson, Dan Blonigen. Abstaining: Fran Fair, due to her absence at the last meeting. 4. Public hearing on the proposed assessment roll for 89-02 and 89-03 improvement projects (Mississippi Drive and Oakwood Industrial Park).AND 6. Consideration of adopting an assessment roll for certification to County Auditor. City Administrator Wolfsteller indicated that the Mississippi Drive reconstruction project and the Oakwood Industrial Park overlay project were both recently completed under budget. Both projects were between 16% and 20% under original estimates, and he noted that the assessment rolls were prepared based on previous Council direction of approximately 20o assessable to property owners along Mississippi Drive and 500 of the project cost assessable to the Oakwood Industrial property owners. It was also noted that the Oakwood Industrial Park overlay project was initiated by concerns of the Industrial Development Coimnittee to bring the roads up to 10 ton standards in an effort to help promote industrial usage within the park. Over the past few years, the industrial park roads have been posted at 7 ton limits, which necessitated the need for upgrading of the roads. The public hearing was then opened, and Dale Lungwitz, representing the Oakwood Industrial Partnership, questioned why the property owners should again pay for street improvements that they thought were originally designed to 9 tons. He noted that the partnership is still paying for assessments for the original improvement project and disagreed with the idea that the roads were purposely designed to 7 tons in order to not over burden the property owners previously and to allow for future development to occur before increasing the tonage to its proper road design. It was noted that the original feasibility study indicated a 9 -ton design was proposed and could not understand how a change was made to a lesser design without the partnership's knowledge. As a result, he felt a 50o assessment was inappropriate, and the Council should consider a lesser amount. 1 Council Minutes - 10/10/89 Pat Townsend, property owner along Thomas Park Drive, felt the road condition was adequate for his needs and did not feel he received a benefit, as his road was already designed to 9 tons and is now only a 10 -ton design. Jay Morrell, owner of M & P Transport, noted that the City's engineering test of the roads indicated that some areas were still 8 tons or better in design and failed to see how the road could increase in tonage if it was only designed at 7 tons previously. It was his opinion that the roads had to have been designed to a greater tonage originally; and as a result, did not feel that 50% was an appropriate assessment. He also requested that the industrial park be treated the same as the downtown retail district in that it is just as vital to the coimnunity in creating jobs and tax base and should also be treated the saine at a 20% assessment level similar to the downtown Streetscape Project assessment. Councilmember Blonigen indicated that it was his recollection that the industrial park was originally designed to only a 7 -ton road system with the idea of increasing the tonage later. As a result, he felt the 500 assessment was reasonable and should possibly have been even higher than that being proposed. He also requested additional information from the City Engineer on the design specifications to verify his recollection. In reviewing the plans available, Public Works Director, John Simola, noted that a smaller quantity of bituminous was planned for the Oakwood Industrial Park when compared to Lauring Lane and that Lauring Lane was designed for 7 tons. As a result, it seems to indicate that the Oakwood Industrial Park probably wasn't designed to more than 7 tons originally. The Council then discussed whether the assessment policies concerning overlay projects should be reviewed in the future, as it may be appropriate to treat all classes of property equal. The Council questioned the City Administrator as to what effect a change in the assessment roll to a 200 level would have on the City finances, and they were informed that the reduction in the assessment roll would have to be made up through additional tax levies. After further review and discussion, a motion was made by Warren Smith, seconded by Fran Fair, to adopt a resolution applying a 20% assessment factor for both the 89-02 and 89-03 improvement projects. Voting in favor: Fran Fair, Shirley Anderson, Ken Maus, Warren Smith. Opposed: Dan Blonigen. SEE RESOLUTION 89-28. 5. Public hearing on proposed assessment roll for delinquent charges. AND 7. Consideration of adopting an assessment roll for certification with the County Auditor covering delinquent charges. Annually, the City Council reviews the accounts receivable which are delinquent over 60 days and considers these charges at a public hearing for adoption as an assessment roll to be collected on the following year's taxes. Minnesota Statutes allow cities to collect delinquent charges by placing special assessments against property owners who receive the benefits. P) Council Minutes - 10/10/89 The public hearing was opened, and the Council heard convents froin Dick and Cathy Hoheisel who questioned why a $28.32 delinquent sewer and water bill should be their responsibility when the bill was incurred by a previous owner. It was explained that utility charges are the responsibility of the property owner and that the City has the choice of placing a special assessment against the property owner even though the present owner did not verify or check for existence of previous outstanding bills. After further discussion, motion was made by Shirley Anderson, seconded by Dan Blonigen, and unanimously carried to adopt the assessment roll as presented with the City Administrator checking with the City Attorney on the legalities of the delinquent bill questioned by the Hoheisels. SEE RESOLUTION 89-29. 8. Consideration of a simple subdivision request to allow two R-2 (single and two-family residential) lots to be resubdivided into two residential lots. A conditional use request to allow a 4-plex in an R-2 (single and two family residential) zone. A variance request to allow a resubdivided lot to have less than the minimum lot square footage to allow the existing residential structure to be converted into a 4-plex. Applicant, Brad and Cindy Fyle. Brad and Cindy Fyle requested permission to resubdivide two existing platted lots into two new lots with the same square footage as originally platted but with one of the lots having its frontage on Maple Street instead of Third Street. The two original lots had 10,890 square feet, and the new lots would also equal this square footage and required a variance from the City's requirement of newly platted lots having 12,000 square feet. The City staff and Planning Commission recoimnended that if the subdivision is approved, three conditions be attached that would require the plat to be recorded within 30 days, drainage and utility easements would have to be required on a separate recordable document, and that a separate document indicate that the newly created parcel along Maple Street does not have sewer and water and that the City would not be responsible for its installation. Motion was made by Blonigen, seconded by Shirley Anderson, and unanimously carried to approve the resubdivision contingent upon the three conditions being met as outlined above. The Council then reviewed the second part of the request concerning the conditional use permit to allow the existing home on one of the newly created parcels to be converted into a 4-plex dwelling. Current R-2 zoning regulations only allow for a duplex unless a conditional use perinit is granted. The existing structure would require between 16,000 square feet and 19,000 square feet of land area to allow for a 4-plex; and it was noted that the lot in question had only 10,890 square feet. As a result, a variance of between 6,000 square feet to 9,000 square feet would be necessary. 3 Council Minutes - 10/10/89 Brad Fyle indicated that he would like to request a tri-plex instead of a 4-plex, which would still require a variance of 4,000 square feet to 6,000 square feet on land area. In addition, the parking requirements would require six off-street parking spaces; and the proposal submitted by Mr. Fyle indicated that this could be met if the cars could back onto Third Street and be allowed to use a portion of the boulevard for parking requirements. The Council was also presented with a petition from neighborhood residents opposed to any variances being granted for a structure of more than two units, as they felt the land area was not sufficient and would cause traffic problems in a primarily single family neighborhood. Because of the large variances in square footage requirements that were necessary, motion was made by Shirley Anderson, seconded by Warren Smith, and unanimously carried to deny the request for a tri-plex and instructed the applicant to ineet the current zoning regulations for utilizing this structure. 9. Consideration of a variance request to allow an attached garage to be constructed within the front yard setback requirement. Applicant, Lawrence and Lynn Gantner. The applicant had originally appealed the denial of this variance from the Planning Commission level to the City Council but prior to the meeting requested that his variance appeal be withdrawn. 10. Consideration of a petition from residents of Meadow Oak for improvements in maintenance of Meadow Oak Park. In September, the Council was presented with a petition from residents of Meadow Oak Subdivision requesting City support of establishing a skating rink on the pond within the Meadow Oaks Subdivision. In addition, the petition requested the City Council to install a flood light on the skating rink and to also consider removing snow from the pathways within the park system during the winter. Public Works Director, John Simola, informed the Council that he had obtained quotes from Olson Electric for the installation of park lights along the trail system and to light the proposed skating area on the pond at a cost of approximately $6,500. He noted that this cost could be reduced by approximately $600 if some volunteer help could be obtained from the residents regarding the trenching of electrical cables for the lighting system. Mr. Simola also noted that the electrical cost for the proposed lighting system would be less than $200 per year if the City paid for the initial installation cost versus almost $1,100 per year if the system was installed by NSP. The staff noted that in checking with its liability insurance carrier, the City would be exposing itself to more liability by authorizing a skating rink on a natural pond and that the City should take extra precautions by possibly providing a rink attendant and/or proper signing 4 Council Minutes - 10/10/89 to warn citizens of the dangers. It was also recoimnended that the City could clean the trail system within the park leading to the rink but recoimnended that the City should not get involved in cleaning all of the trails within the park system. From a strictly liability standpoint, it was recoimnended by the staff that the Council may want to consider a skating rink within an area of the park not associated with the pond. After further review, motion was made by Fran Fair, seconded by Warren Smith, to authorize the installation of the lighting system as proposed and to authorize the skating rink to be constructed on the pond and directed the staff to clean the pathway leading to the pond when necessary or whenever the residents were unable to remove the snow themselves. Voting in favor: Fran Fair, Warren Smith, Ken Maus, Dan Blonigen. Opposed: Shirley Anderson, due to the concerns over liability. Staff was also instructed to obtain additional quotes and to negotiate the best price possible for this installation. 11. Consideration of modification to street lighting policy to include lighting cul-de-sacs and/or dead-end streets. Recently, the City received a petition from residents along a cul-de-sac requesting the installation of street lights at the end of cul-de-sacs. The City's current policy allows for the installation of street lights at intersections and at distances of approximately 700 feet apart. In reviewing all of the cul-de-sacs and dead-end streets in Monticello, the Public Works Director noted that an additional 32 street lights would be necessary if all of these locations were lit. The annual cost of operating all of these lights would amount to approximately $160 per year. If the City only installed lights on the 23 cul-de-sacs, the annual cost would be $4,112.40. Mr. Simola noted that the present policy of lighting intersections, inid-block points, and other areas for safety was established a number of years ago before the City had many cul-de-sacs. He suggested that a survey of cul-de-sac residents be done to see if there is a lot of interest in these areas receiving street lights. The Mayor agreed the survey would be appropriate, and it was the Council consensus that some cul-de-sacs may be long enough to require the policy to be changed. The Public Works Director also recomended that if the policy were to be amended, it could be done allowing for the installation of street lights within cul-de-sacs by petition only at this time. In light of the minimal cost that would be involved, motion was made by Fran Fair, seconded by Warren Smith, authorizing the installation of street lights within cul-de-sacs petitioned by 51% of the property owners along a particular area in question. Voting in favor: Fran Fair, Warren Smith, Ken Maus. Opposed: Dan Blonigen and Shirley Anderson. 5 Council Minutes - 10/10/89 12. Consideration of approval of Transportation Management Plan and budget. o0 13. Consideration of approval of resolution authorizing contract with State of Minnesota to provide public transportation service. The City staff in conjunction with the Monticello Transportation Advisory Coymnittee has prepared a management plan document that will be submitted to the State of Minnesota which outlines the Transportation Management Plan and annual budget for the operation of the bus system for Monticello. With State approval of the Transportation Management Plan, the City would be able to proceed with establishing a transportation system that would operate from 9:00 a.m, to 6:00 p.m. five days per week, excluding holidays, for Monticello residents. In addition, the service would provide one daily trip to the Nutrition Center in Big Lake and would also be available for service to the local airport. It was noted that the management plan annual budget would total $55,577 with approximately $12,000 to $14,000 being required from the City to support the system. The balance of the operating costs would be covered through State grants and revenues from the riders. The plan also includes a fare system that would be $1 per one-way trip when purchased individually and would allow for blocks of tickets to be sold at 10 for $7.50 or 50 for $.50 each. Motion was made by Fran Fair, seconded by Warren Smith, to adopt a resolution entering into a contract with the State of Minnesota to provide a public transportation service in the Monticello area. Voting in favor: Fran Fair, Warren Smith, Ken Maus, Shirley Anderson. Opposed: Dan Blonigen. SEE RESOLUTION 89-30. 14. Consideration of a contract with Hoglund Transportation for provision of public transportation service. With the approval of developing a transportation system for the Monticello area, Council reviewed a contract proposal with Hoglund Transportation which outlined the terins and conditions for having Hoglund Transportation provide the vehicle and drivers associated with the bus transportation system. The State of Minnesota has reviewed the contract proposal and did not have a problem with the City contracting for the transportation system equipment and personnel rather than the City acquiring its own bus system and employing its own drivers. As a result, a motion was made by Fran Fair, seconded by Warren Smith, authorizing a contract between the City of Monticello and Hoglund Transportation for the provision of operating the bus transportation system for one year for the City of Monticello. Voting in favor: Fran Fair, Warren Smith, Ken Maus, Shirley Anderson. Opposed: Dan Blonigen. 0 Council Minutes - 10/10/89 15. Consideration of adopting an agreement authorizing a contract with Township of Monticello outlining annexation process. The City Council reviewed a proposed joint resolution which outlined the understandings and agreements pertaining to land suitable for annexation and the criteria that would have to be met before future annexation occurred. It was noted that the joint agreement had been created through the cooperation of the OAA Board, City staff, and Tom Salkowski, the County Planner. The Township of Monticello has previously reviewed the document and adopted it in its present form. Some minor changes had been recoimnended by the City staff; and although it does not appear the Township opposes the changes, no formal action has been taken on the changes at this point. Mayor Maus, the City's OAA representative, explained that the intention of this joint agreement was to establish guidelines and criteria that would be necessary for land owners to meet before requesting annexation into the corporate city limits. With the recently adopted land use plan being approved by both jurisdictions, it was felt that a guideline/working document should be prepared to inform all parties of the requirements before annexation procedures could be initiated. Councilmember Fair indicated she was not ready to make a decision on a joint resolution without further study. As a result, a motion was made by Shirley Anderson, seconded by Fran Fair, and unanimously carried to table any action on the joint resolution regarding the annexation process to allow for further review of the document. 16. Consideration of adopting a resolution setting a public hearing date for the adoption of the development program for Development District #1 and for the adoption of the TIF Plan for TIF District #1-1. On September 29, 1989, the finance plan was submitted to the County and School District for their review concerning the proposed tax increment financing proposal associated with the 7th Street realignment cost for the proposed K -Mart addition to the mall. A formal public hearing is required for the development program and finance plan after a 30 -day notification to the other taxing jurisdictions. As a result, a motion was made by Warren Smith, seconded by Shirley Anderson, and unanimously carried to set the public hearing date for October 30 at 5:00 p.m. for the consideration of adopting the development program and tax increment finance plan for District #1-1. SEE RESOLUTION 89-31. 7 17. 18. Council Minutes - 10/10/89 Consideration of replacing underground heat pipes at the City's waste water treatment plant. Public Works Director, John Simola, reviewed with the Council the continuing problem the City is experiencing with leaks in the heat supply pipes running from the hot water boiler to various buildings at the waste water treatment plant. Previously, the City has made repairs to a portion of the heating system piping at a cost of approximately $10,000 and continual leaking is occurring to the point where the entire heat supply systems may have to be replaced. In 1988, the problems became so severe that some repairs had to be made with some heat being lost to the aeration complex. Because it appeared that testing of the copper couplings indicated that they may have been assembled without being soldered, the City Engineer has agreed to work with the City staff in completely redesigning the replacement of the heating pipes at no charge for design. Based on a recently completed design for a complete new system, the estimate for replacement totaled over $55,000, much higher than originally anticipated. In light of the recent cost estimate, it was recoimnended by the Public Works Director that the City wait at this time in regards to replacing the system and utilize temporary heating where necessary. It was noted that this additional time will be used for evaluating alternatives in an effort to get this cost lower. It was also noted by the Public Works Director that the prime contractor for the original construction project could not be held responsible for the faulty workmanship in that the one-year warranty date has elapsed; and it would be difficult for the City to recover any cost associated with this repair. It was the consensus of the Council to table any action on the heat pipe replacement until next year when more information is available. Consideration and/or hazards Monticello for of establishin us waste dispo a period of one year. moratorium on development of infectious 1 or incineration plants within the city of In recent weeks, the City staff has received two separate contacts from developers investigating the possibility of developing an infectious waste incinerator facility in the city of Monticello. The City staff was concerned that the City may not be prepared to properly address the land use issues involved with such a development and indicated that the present City Ordinances may be insufficient to properly zone or regulate the location of such a facility. Presently, incineration facilities are allowed as a conditional use in the I-2 zoning district, which could possibly pave the way for development of an infectious waste incineration plant anywhere within an I-2 zone. Because the staff has not had an opportunity to receive any public input on the development of such a facility or to examine the special impact such a facility may create on properties zoned heavy industrial, it was recoimnended that the Council establish a moratorium on Council Minutes - 10/10/89 development of an infectious and/or hazardous waste disposal or incinerator plant for one year to allow staff time to review with its planning and engineering consultants conditions that may be applicable for this type of operation. This would allow sufficient time for the staff to present a recommendation on proper land use controls that may be considered by the Council to protect the health, safety, and welfare of the citizens of Monticello. Motion was made by Shirley Anderson, seconded by Dan Blonigen, and unanimously carried to adopt a moratorium on the development of hazardous and/or infectious waste incineration and/or disposal sites for a period of one year to allow for proper land use controls to be developed. 19. Consideration of feasibility report on sewer extension along Chelsea Road. At a previous Council meeting, a property owner along County Road 117 between Chelsea Road and Dundas Road requested a cost estimate for connecting to the city sanitary sewer system. Public Works Director, John Simola, prepared an estimate of providing sanitary sewer to the parcel and estimated the cost of the project at $31,953.60. In reviewing the extension, it was noted that there may be a benefit of this sewer extension to more than one parcel along County Road 117; and it was suggested that a public hearing be held by the Council with all property owners potentially being assessed being notified of the improvement. Motion was made by Shirley Anderson, seconded by Dan Blonigen, and unanimously carried to adopt a resolution receiving the feasibility report and ordering a public hearing on the proposed sewer extension along County Road 117 between Chelsea Road and Dundas Road. SEE RESOLUTION 89-32. Rick Wolfsteyler City Administrator