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City Council Minutes 11-13-1989MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 13, 1989 - 7:00 p.m. Members Present: Fran Fair, Warren Smith, Ken Maus, Shirley Anderson, Dan Blonigen Members Absent: None 2. Approval of minutes. After discussion, motion made by Dan Blonigen and seconded by Shirley Anderson to approve the meeting minutes as presented. Motion carried unanimously. 3. Citizens convents, petitions, requests and complaints. None forthcoming. 4. Public hearing on the adoption of a supplemental assessment roll for the 89-03 improvement project (Oakwood Industrial Park overlay). And Consideration of adopting an assessment roll for certification to County Auditor. City Engineer John Badalich explained that the original bituminous paving within the Oakwood Industrial Park was always planned and designed for a 7 ton capacity. According to Badalich the original feasibility study was prepared by OSM covering sewer and water extensions within the Industrial Park along with bituminous paving, which included curb & gutter, and storm sewer improvements estimated at a total cost of $800,000. Those costs were reviewed at a public hearing on April 25, 1977, at which time the project was tabled and no action again was taken until May 9, 1977, at which time the Council ordered preparation of plans and specs for servicing Oakwood Industrial Park with water and sewer only, with bituminous paving, curb & gutter, and storm sewer improvements being deleted from the project. John Badalich went on to note that the records seem to indicate, and it was his recollection that development of the streets in this area would occur under a phased approach and the original bituminous overlay was designed for 7 ton capacity with the intent to install the additional bituminous at such time that the curb and gutter is installed. Dale Lungwitz stated that the Oakwood Industrial Partnership originally asked for a 9 ton road, not a 7 ton road. Dan Blonigen replied that "You thought you were getting a 9 ton road and you got a 7 ton road. If the City had insisted on a 9 ton road how much would you have spent extra for the 9 ton road. By putting a 7 ton road in at the start you ended up saving considerable money over the life of the original road." Jay Morrell noted that he would not have purchased the structure in the Industrial Park had he known that the roads were of a 7 ton design. He went on to request that the Council consider the same 80/20 split of expenses that was used in assessing the properties that benefited from the streetscape project. 5. Council Minutes - 11/13/89 Ken Maus noted that streetscape and industrial park roads cannot be fairly compared in terms of establishing assessment policy. Fran Fair stated that once the roads are installed they are there for everyone's use. After installation the roads should be the responsibility of the City and improvement costs associated with established roads should be paid for via ad velorum taxes. Dan Blonigen stated that he is not disputing that once a road is established that the City should pay its share to maintain it, however, this road is different. The improvement completed represents an upgrade, not maintenance. Ken Maus noted that when George Phillips requested to downgrade the original 1977 project there was no evidence indicating that the Partnership wanted to have the street portion of the project reduced from 9 ton to 7 ton. It appears then that it was very likely a City decision to downgrade the roads from 9 ton to 7 ton and it may have never been formally requested. Motion was made by Fran Fair to reaffirm the previous assessment formula which called for a 80o project cost paid for by the City and 20o by the benefiting property owners. Motion seconded by Warren Smith. Voting in favor: Fran Fair, Warren Smith, Ken Maus. Opposed: Shirley Anderson and Dan Blonigen. Motion carried. Continuation of public hearing for sanitary sewer extension on Oakwood Drive. This item was continued from the previous ineeting pending input froin Stuart Hoglund, who is the major benifiting property owner of the proposed project. A letter submitted by Mr. Hoglund indicated that he does not support the extension of sanitary sewer as proposed. Deferal of the assessment was discussed. However, no method of defering the Hoglund assessment was established. Rick Wolfsteller noted that the Comfort Inn is presently for sale and that transaction may impact the method by which the cost of the project would be assessed against the benefiting property owners. Since the terms of the transaction are not understood at this time, it might make sense to table the matter until all the potential affected property owners are talked to. Ken Maus and Fran Fair concurred that the City might want to postpone a decision on this matter until after the sale of the land. Motion made by Shirley Anderson and seconded by Fran Fair to postpone a decision on this matter to the first regular meeting in December. Motion carried unanimously. Motion made by Fran Fair and seconded by Dan Blonigen to allow Lee Parks to upgrade the private sanitary sewer by installing a holding tank if it is found that such an upgrade is absolutely necessary. Motion carried unanimously. 2 Council Minutes - 11/13/89 6. Review Pinewood Coimnunity Playground Plans, receive project update. Cheryl Fuller, representing the Pinewood Coimnunity Playground Organization, was present to provide Council with an update on the progress of the playground project. Fuller reviewed the preliminary design plan and requested input from Council. Fuller also noted to Council that Roger Mack will be serving on a coimnittee which will be reviewing the plans in further detail. Ken Maus asked if restroom facilities will be provided at the playground site. Cheryl Fuller responded by saying that a nearby restroom on the school site is available for use by individuals using the play structure. Ken Maus also suggested that the school district may wish to consider striping of the parking area associated with the play structure. After discussion, Ken Maus thanked Cheryl for the update and encouraged the playground comnittee to keep up the good work. 7. Consideration of a conditional use request to allow a tri-plex in an R-2 (single and two family residential) zone. Applicant: Brad & Cindy Fyle. Assistant Administrator O'Neill explained that Brad and Cindy Fyle requested a conditional use permit which would allow an existing house to be converted into a tri-plex. The property in which the property is located consists of 22,077 sq. ft. of area, which is more than the minimum amount of land necessary for a tri-plex. However, the site plan fails to utilize the full land area potential of the property in a manner that will minimize the negative impacts created by the tri-plex. O'Neill went on to note that at its regular meeting on November 7th, the Planning Comission conducted a public hearing and then recolmnended that Council deny the conditional use request, based on the fact that the site plan is to be designed in a manner that does not properly utilize the space available. In addition, the site plan is contrary to the City ordinance because the development is not consistent with the character of the neighborhood, the use will tend to depreciate the adjoining property and there is not a demonstrated need for the tri-plex. O'Neill went on to note that the Planning Coymnission did not close the door to an approval of this conditional use permit contingent on development of a new site plan which would call for two suitable, usable parking spaces developed in the rear of the property, with such spaces gaining street access directly onto Maple Street. Brad Fyle agreed that both lots would be used to accomodate the proposed tri-plex. After discussion, motion made by Warren Smith and seconded by Fran Fair to approve conditional use request to allow a tri-plex in the R-2 zone, subject to the following conditions: A. No more than 4 developed parking spaces allowed to front Third St., including the enclosed garage space. B. Garage openings must face Third St. 3 Council Minutes - 11/13/89 C. The driveway access to Third St. shall be no wider than 241. All yard area outside of the driveway shall be sodded so as to prevent utilization of green area as parking area. D. Curb cut and bituminous parking surface with access to Maple Street must be installed by June 1, 1990, and be sufficient to accomodate two vehicles. Prior to June 1, 1990, a temporary gravel surface in this area is allowable. E. No use of third unit is allowed until the curb cut and gravel surface is installed. Motion carried unanimously. 8. Consideration of permit which would allow development of a single mobile home site at the Westside Mobile Home Park in Monticello. Assistant Administrator O'Neill informed Council that Don Heikes has submitted a request to the city of Monticello which calls for development of a single mobile home site in addition to the 17 sites now existing at his mobile home park. O'Neill explained that Planning Coimnission conducted a public hearing regarding this matter and received testimony from Scott Hill and the Ceinetary Association. As a result of this testimony and input from staff, Planning Coimnission recommnended approval of a permit to add a single mobile hoine lot contingent on the developer fulfilling a number of conditions. Mr. Heikes stated that he intends on complying with all of the conditions listed. Ken Maus noted that Mr. Hill brought up other concerns that the City should be dealing with, such as the problem with unlicensed mobile homes in the mobile hoine park. Maus also suggested that a stop sign be installed at the entrance of the mobile home park per the suggestion made by Scott Hill. After discussion, motion was made to allow expansion of the West Side Park with the addition of a single mobile home site, subject to the following conditions: A. The mobile home site may be located no further than 300' from an existing fire hydrant. B. Bituminous driveway shall be installed to provide access to the mobile home expansion site. C. The trailer shall be installed on a concrete slab, as approved by the building inspector. D. Electric, phone, and cable line shall be installed underground. E. Storm shelter shall be provided at the lower level of the duplex which is maintained by the park caretaker living in the upper floor. The shelter shall have a sign placed above the door and all new tenants shall be inforined of the emergency shelter. 4 Council Minutes - 11/13/89 F. Expansion of the mobile home park in this area shall be limited to a single mobile home site. No further requests for additional mobile home sites shall be approved without meeting all of the park expansion requirements. G. Snow removal, grounds, and driveway maintenance, water and sewer maintenance will be performed by the owner/operator and/or his agent. H. A fence 6' in height shall be installed along the northern edge of the property. The fence shall be 6' high, and 900 opaque. This fence shall be installed from the cemetery side of the retaining wall. I. Developer shall install a retaining wall of sufficient height and strength to prevent erosion into the cemetery property. Motion carried unanimously. 9. Consideration of final plat approval for Prairie West subdivision. There being no appeals forthcoming by individuals or the City Council to the variance request associated with Lot 5, Block 1 plat, motion was made by Fran Fair, and seconded by Warren Smith to approve the final plat of the Prairie West subdivision. Voting in favor: Fran Fair, Ken Maus, Warren Smith, Shirley Anderson. Opposed: Dan Blonigen. 10. Simple subdivision request to allow a B-3 (highway business/commercial lot) to be subdivided into 2 coimnercial lots. Variance request to allow zero lot line setback requirement. Applicant: The Lincoln Companies. Assistant Administrator O'Neill informed Council that the Lincoln Companies, owners of the Monticello Mall are proposing a simple subdivision which would create a separate parcel on which the new K -Mart addition would be placed. The separate identity created by this subdivision would allow the developer to obtain the necessary financing for the K -Mart addition. In addition, the proposed subdivision will create a zero lot line between the new property and the existing wall of the mall. Therefore, a variance to the sideyard setback requirement is necessary. This proposal to create a zero lot line setback should not be a problem so long as the actual development occurs. After discussion, motion by Shirley Anderson and seconded by Dan Blonigen to approve the simple subdivision request to allow a B-3 (highway comnercial) lot to be subdivided into 2 commercial lots, subject to the following conditions: A. Developer shall provide easements necessary to accomodate the 7th St. right of way. Such easements would include both the curved or straight alignment. B. Recording of the subdivision cannot occur until such time that the actual structure is under development. 601 Council Minutes - 11/13/89 C. Further subdivision of this property must be accomplished via the platting process. Future plats created must incorporate all The Lincoln Companies property, including the mall and the property on which the mall addition will be located. Motion carried unanimously. No one appealed Planning Commission's approval of the variance request to allow zero lot line setback requirement. 11. Consideration of renewing the 1990 fire contract with the Silver Creek Township. Shirley Anderson noted that the dates noted in Article 8 need to be amended to reflect the contract terin. After discussion, inotion made by Dan Blonigen and seconded by Shirley Anderson to approve the fire protection agreement as outlinedand amended. Motion carried unanimously. 12. Consideration of approving on sale liquor license transfer for Comfort Inn. After discussion, inotion made by Warren Smith and seconded by Fran Fair to approve the liquor license application as submitted. 13. Consideration of renewing contract operation of city Wastewater Treatment Plant with Professional Services Group. John Siinola noted that it has been slightly over 3 years since Professional Services Group entered into partnership with the city of Monticello for contract operations of our Wastewater Treatment Plant. Simola went on to note the reasons why the privatization of the Wastewater Treatment Plant occurred. Those reasons are as follows: 1. Cost being incurred to (run the plant) at efficiencies much greater than that required by the discharge standards. 2. Lack of long term maintenance of plant equipment and facilities. 3. Staffing deficiences due to employee absences and request from treatment plant management for additional personnel. 4. Lack of adequate training of present staff. 5. Lack of proper sludge management techniques. 6. Improper operation of various plant equipment items which required an increase in gas and electrical consumption. 7. Improper management at the plant. 8. Poor record keeping practices. 9. Lack of comunication between plant and City Hall. 9 Council Meeting - 11/13/89 For the reasons stated above, the City entered into an agreement with PSG to operate the Wastewater Treatment Plant. Simola went on to outline the positive working relationship that has been established in the last three years. Simola completed his presentation by noting to Council that staff favors continued contract operations of the City's Wastewater Treatment Plant through private partnership with Professional Services Group. Although the city staff has been negotiating with Professional Services Group for several months, it was Simola's view that the contract before Council isthe best compromise the City is able to reach. The City could request further negotiations with PSG, however, it is not likely that further negotiations would result in significant benefits to the City. Dan Blonigen noted that under Article G, paragraph 7, point 4, PSG is in the driver's seat when it comes to defining the grounds for determination of the contract. The new grounds for termination consist of two serious performance related incidents within one 60 day period. Dan Blonigen was concerned that that the definintion of serious performance related incidents should be defined by the City and not by PSG. Representatives from PSG indicated that they would be more than willing to let Council determine which incidents are defined as serious. Representatives from PSG also noted that in spite of this language, the City has significant power and that the City must make a check to PSG once a month. If problems are not corrected, the City can simply withhold their payment to PSG. Ken Maus asked why the contract length did go from 3 years to 5 years. Dan Blonigen noted that he would favor a 3 year contract. PSG is performing well. They need not worry about the City continuing with them after year 3. Wolfsteller noted that a 5 year contract, if reasonable, will save the City the cost and time associated with the bidding process. Motion made by Dan Blonigen and seconded by Shirley Anderson to approve the new contract with Professional Services Group as presented to City Council for an initial annual amount of $324,070. Motion carried unanimously. 14. Consideration of odor control measures for the Wastewater Collection System and Wastewater Treatment Plant. John Simola explained that for some of our previous agenda items dealing with renewal of PSG's contract, staff has tried to explain the current odor control problems at the Wastewater Treatment Plant and how efforts to deal with the problem have been less than 100% successful. We have now received the report from Davis Processing Division, a representative for ODIFAS. Their report centers on odor control survey and recormnendations for an odor control program resulting for an inspection on October 12, 1989. In addition, we received the test results from samples taken in and about the collection system and treatment plant iimnediately following the original survey. Simola went on to present the information from the tests and outlined staff recomendation as follows. 7 Council Minutes - 11/13/89 It was the recomnendation of the Public Works Director that the Council authorize additional testing and installation of the pilot chemical feed system, which is an injection system in the collection system, with the assistance of PSG at a setup cost of $1000, plus a rental cost of $400 per month, plus chemicals as needed at $1.18 per gallon, plus additional testing as required. Estimated initial cost of this alternative is in the area of $3,000. Ken Maus asked, "If Sunny Fresh completes improvements to our specifications would this eliminate the problem?". John Simola noted that ironically, the changes made at Sunny Fresh may have actually increased the problem.. Ken also asked, "Should we consider assigning the cost to remedy industrial related sewer problems to industrial users?". Simola stated, "We may not be able to directly assess, but rates would effectively place the cost with hish users. Additional study will be done.". After further discussion, motion by Shirley Anderson and seconded by Dan Blonigen to install a test pilot chemical feed injection system at an estimated initial cost of $3,000. Motion carried unanimously. 15. Consideration of resolution adopting a proposed preliminary 1990 budget and setting a proposed tax levy. Ken Maus noted that this proposed tax levy is preliminary only and it is likely that there will be a few items trimmed from the budget. Motion to adopt a resolution setting a proposed levy of $2,778,506 made by Warren Smith, seconded by Dan Blonigen. Motion carried unanimously. SEE RESOLUTION 89-34. 16. Consideration of installing street light at private driveways requested by the Plaza Carwash on Highway 25. John Simola discussed the pros and cons of installing a street light at this location. After this review, Ken Maus noted that there might be a chance to correct the lighting problem by simply by reorienting the existing street lights and asking the Plaza Carwash to modify their light, also. Maus suggested that this alternative be attempted prior to installation of a new street light. Motion made by Fran Fair and seconded by Warren Smith to follow the suggestion made above by Ken Maus. Motion carried unanimously. 17. Consideration of hiring rink attendants for winter skating facilities. John Simola noted that after a fire at the Fourth Street warming house last winter North Star Risk Services, a risk assessment company who perforins loss control surveys for insurance companies, stated the City should install self extinguishing waste cans in our warming house. Additionally, they suggested that we post appropriate warning rules signs. Lastly, the North Star Services ask that we consider adult supervision for City rink areas during periods of peak use. This was again stressed in their October 6th letter regarding the pond skating. 8 18. 19. Council Minutes - 11/13/89 Simola went on to outline the proposed hours of peak use which would include weekdays from 4-9 p.m., Saturdays from 9 a.m, to 6 p.m., and Sundays froin 1 p.m. to 6 p.m.. This would total approximately 31 hours per facility, excluding holidays or Christmas vacation, which would bring the average hours per week during our overall season up to 35. The total estimated cost to provide rink attendants per the recomendation of North Star Risk Services amounts to $2,300. Ken Maus stated that he is concerned that the rinks are not getting used enough and that it might be difficult to justify hiring of a rink attendant if the rinks are not getting significant use. Ken Maus also noted that he would be in favor of establishing some rules as to when the rink attendant will be a the ice rink. For instance, we may want to close the rinks when the temperature drops below a certain temperature. Simola noted that he, along with the Park Superintendent and City Attorney, will be developing a list of ice rink rules of operation. After discussion motion made by Warren Smith and seconded by Dan Blonigen to provide rink attendants for the two warming houses during peak skating times, as outlined by the park superintendent and is recomended by North Star Services at an estimated cost of $1,148 per season, for a total cost of approximately $2,300. Motion carried unanimously. Consideration of setting a meeting for the purpose of establishing a 1990 salary wage policy for nonunion personnel. After discussion, motion made by Shirley Anderson, seconded by Fran Fair to set a meeting for said purpose at 6:30 p.m., December 4, 1989. Motion carried unanimously. Consideration of proposed supplement to cooperative construction agreement with MN -DOT for upgrading Hwy 25. John Simola explained that during the original upgrading of Highway 25, which took place several years ago, the State of Minnesota agreed to plant shrubs along the Hillside Cemetery to reduce maintenance and beautify the area. This planting was to be 100% State of Minnesota cost. When the original agreement came through, this was not the case and the agreement stated that it was at City cost. At that time the City was informed it would be impractical to amend the entire agreement and the State would follow up later with a supplemental agreement. After discussion, motion was made by Warren Smith and seconded by Shirley Anderson to authorize the proposed supplemental agreement transferring the responsibility of the cost of the shrubbery from the City to the State of Minnesota. Motion carried unanimously. SEE RES. 809-35. Staff informed Council that Mr. Eisele has asked the City to burn a residential structure located near the fire hall. Ken Maus noted that unless the fire department sees a training value, he suggested that the W Council Minutes - 11/13/89 City not get involved in burning this structure. Dan Blonigen also noted that safety is the main issue and that the property owner should compensate the City to cover the training expense. John Simola requested that the Council provide authorization to temporarily maintain the street right of way associated with the Meadows Second Addition and the Marvin Elwood Road extension. It was Simola's view that the improvements are nearly complete and that the City may at this time undertake plowing of streets and other general maintenance of the utilities until final approval in the near future. Motion made by Warren Smith and seconded by Fran Fair to authorize snow removal maintenance of Hedinan Lane and Marvin Elwood Road. Motion carried unanimously. There being no further discussion, meeting adjourned. G Jeff OlNeill Assistant Administrator 10