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City Council Agenda Packet 06-26-2000 . AGEN A REGlJLAR MEETING - MON ICELLO CITY COUNCIL Monday, June 26 2000 - 7 p.m. Mayor: Roger Belsaas Council Memhers: Clint Herbst, Brian Stumpf, R gel' Carlson, Bruce Thielen I. Call to order. 2. Approve minutes of regular council meetin ofJune 12,2000. 3. Consideration of adding items to the agend' . A. f~J..( c.e~""'4.(-t ~(y B. Co-- C rrz-- <;f cL.1~ c. W t Cf1-t I t!r1 J " Mjf" 4. Citizens comments/petitions, requests, and ,complaints. 5. Consent agenda. . '~ 0'<-' A. Consideration of authorizing annua fireworks expenditure for Riverfest celebration. l t~ B. Consideration of amendment to the Jnterim Use Permit allowing operation of the Alternative Learning Program in an I-I District; Consideration of an amendment to the Zoning Ordinance allowing p lblic and private educational institutions as a conditional use in the I-I District; a',d Consideration of an application for a conditional use permit allowing a p' blic institution to operate in an I -I District. Applicant: WAG Partnership/Alten ative Learning Program 6. Consideration of items removed from the c nsent agenda f()r discussion. 7. Consideration of resolution authorizing sal 0[$1,645,000 G.O. Improvement Bonds for 98-25C Project - Chelsea Road West. 8. Consideration of accepting the 1999 audit I' port. 9. Consideration of extension of 30" sewer 1'1' m County Road 75 through railroad. 10. Consideration of an amendment to the zoni g ordinance for auto sales in the B-3 District allowing for a principal building smaller th n 4,500 square feet. Applicant: Dunlo Motors. . 11. Consideration of an amendment to the con itional use permit for auto sales in a B-3 District issued to Dunlo Motors. . . . Agenda Monticello City Council June 26, 2000 Page Two 12. Consideration of payment of bills for June. 13. Adjourn . . . MINUTES REGULAR MEETING - MO TICELLO CITY COUNCIL Monday, June 1 ,2000 - 7 p.m. Members Present: Roger Belsaas, Roger arlson, Clint Herbst, Brian Stumpf and Bruce Thielen Members Absent: None Mayor Belsaas called the meeting to order at 7 p.m. 1d declared a quorum present. 2A. A rove minutes of Ma 22 2000 continue Board of Review. ROGER CARLSON MOVED TO APPROV TilE MINUTES OF TilE CONTINUED BOARD OF REVIEW MEETING OF MA Y 2,2000. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED lJNANIM USLY. ! 2B. A rove minutes ofMa 22 2000 re utar 'ouncil meetin 3. BRUCE THIELEN MOVED TO APPROVE! IlfE MINUTES OF THE MAY 22,2000 REGlJLAR COUNCIL MEETING. BRIAN 'TUMPF SECONDED Or! IE MOTION. MOTION CARRIED UNANIMOUSL Y. Consideration of addin ~ items to the a The landscape plan for Bridge Park and the n' }ise control ordinance were added to the agenda as discussion items. 4. Citizen eomments/ etitions re laints. John Kautza, 8548 Troy Marquette Drive ca e before the Council conccrning erosion and sediment control problems in the Wildwood idge Addition. He indicated that aftcr the recent rainfall the contractor pumped the runofTwat r and silt into the street to an unfinished pond leaving dirt and debris on the streets. He reported this to the City but noted it took several days bef()re the contractor madc any attempt to cle n up the streets and that the contractor never completely finished the clean up. Mr. Kautz anted to know what the City required in the way of erosion control and whether what had occurre at the site was in violation of the permit issued by the Pollution Control Agency. He also was c ncerned about the removal of the existing trees by the contractor. John Simola, Public Works Director summari ed the steps the City had taken upon leaming of the erosion problems. He indicated that prior 0 the City accepting the contractor's work on this project, the storm sewer and holding pond wh re the contractor had pumped the water would bc cleaned. He indicatcd that the City would bc 110nitoring both the contractors and home builders z Council minutes - 6/12/00 working in the area to make sure they arc con plying with City requirements regarding erosion control. Bruce Thielen noted that the City ha previously discussed a tree preservation policy and he felt a good enforceable tree preservati n policy should be considered again.. Clint Ilerbst asked whether there were provisions in the Ci y's erosion control policy that would allow tl)f imposition of fines if erosion control proccdu es were not followed. . Roman Brauch, 701 West River Street, came efore the Council on behalf of the American Legion. The Legion has placed flags on Bro dway and TH 25 at various times of the year such as MenlOrial Day, July 4111, Flag Day and Arm stice Day. The Legion was asking that the City staff take over the responsibility for the place lent of the approximately 25 flags. John Simola advised the Council that the poles on Broadw y were rusted out and should be replaced. The proposal would be for the Alnerican Legion t furnish the flags and to havc City stall put them up. BRUCE THIELEN MOVEn TO HAVE CIT STAFF WORK WITH TIlE AMERICAN LEGION ON PLACING "rI IE FLAGS. CLI T HERBST SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSL Y. 5. Consent Agenda . . A. Consideration of granting annual appr val for municipal liquor licenses. Recommendation: Approve the folio ing liquor licenses for one year effective 7/l/00 contingent upon receipt of appropriate certificates of insurance: Intoxicating Liquor On- Sale: Monticello Liquor, Inc.; Silver ox (Chin Yuen); Duane Lindenfelser dba River City Lanes; Comfort Inn/Days Inn; J. .'s Annex; Hawks Sports Bar; Monticello Country Club; Intoxicating Liquor n-Sale Sunday: Monticello Liquor, Inc.; Silver Fox; River City Lanes, VFW Club; A erican Legion Club; J.P. 's Annex; Hawks Sports Bar; Days Inn; Monticello Country Cllb; Non-Intoxicating Malt On-Sale: Rod and Gun; Pizza Factory, Monticello Men' . Softball Assn.; Lions (Riverfest); Lions (Street Fest); Non-Intoxicating Malt Off-So Ie: Monticello Liquor; Maus Foods; River Terrace; Tom Thumb; Holiday Stationstore; SlperAmerica; Avanti Petroleum (Mobil); Cub Foods, O'Ryans Conoco; Set-Up Lic nse: Rod and Gun, St. Henry's (Fall Festival); Club License: VFW; American Legi n. B. Consideration of resolution authorizin)" the issuance of a one day charitable gambling license for the Monticello Jaycees. Re 'ommendation: Adopt a resolution authorizing the State Gambling Control Board to issu a gambling license. Res. No. 2000-43. C. Consideration of authorizing Mcr cor tribution. Recommendation: Authorize the grant payment as budgeted in the amount 01 $25,000 to the MCP for the year 2000. D. Consideration of approving final paYI ent to Richard Knutson, Inc. for the 7th Street Project No. 98-12C. Recommendati n: Recommend approval of the final payment in the amount of $60, 1 04.45 to Richard Hutson, Inc. for 71h Street Extension, Project 2 z . . . Council minutes - 6/12/00 9R~ 12C contingent upon submittal b the contractor of all required forms and certification from the contractor's surety bond eo lpany E. Consideration of approving minor m difications to the final plat and consideration of approval of the development agreem nt governing the Groveland residential subdivision. Recommendation: Approve 111inor wdifieations to the final plat and to adopt the development agreement governing tl e Groveland residential subdivision. F. Consideration of request for a simple subdivision atTecting Lots II and 12, Block 2, Oakwood Industrial Park. Recomm 'ndation: Approve the simple subdivision affecting I,ots II and 12, Block 2,0 kwoodlndustrial Park by shifting the lot line 35 feet to the cast. G. Consideration of approving final pla~ and development agreement for the River Forest II I subdivision. Recommendation: Mo e to approve final plat and development agreement contingent upon recording of covenal ts that include the provision that the property owners are responsible for the maint nance of the entrance monuments. I I Brian Sturnpf requested that Item #7, Elm S~ 'eet Project, be added to the consent agenda. Clint Herbst requested that Item #5C be removed rom the consent agenda and Bruce Thielen requested that Item #5G be removed from th consent agenda. Rick Wolfsteller noted that Itemll5A also required Council discussion. BRUCE THIELEN MOVED TO APPROV . TIlE CONSENT AGENDA WITII TIlE REMOV AI, or ITEMS #5A, 5C AND 5G NO THE ADDITION OF ITEM #7, ELM STREET UTILITIES. CLINT HERBST SE ~()NDED TIlE MOTION. MOTION CARRIED UNANIMOUSL Y. 6. Consideration of items removed from the onsent a enda for discussion. Item #5A The clarification sought on the Ii uor license dealt with the one day license and whether it was the City's intent that this lice se was for beer only even though the state does allow a full liquor license. The consensus 0 the Council was that in issuing a one day liquor license the City was issuing the license tlW b er only. CLINT HERBST MOVED TO APPROVE' HE MUNICIPAL LIQUOR LICENSES AS LlSTl':!). BRIAN STUMPF SECONDED T E MOTION. MOTION CARRIED UNANIMOUSL Y. Item #5C Clint Herbst noted that in the fina cial report that accompanied the MCP's request for the matching contribution from the City, 't was stated that there were departures from generally accepted accounting principles an he felt that the City's contribution should be contingent upon the MCP's correcting their lI1ancial procedures to meet standard accounting principles. 'J L- . . . Council minutes - 6/12/00 CLINT HERBST MOVED TO AUTHORI E THE BUDGE'fED GRANT PAYMENT OF $25,000 TO '1'111,: MCP CONTINGENT UP )N 'TlIEIR COMPLIANCE WITH ACCEPTED ACCOUNTING PROCEDURES. ROGER :ARL,SON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Item #5G There was some discussion on th covenants for this development. It was noted that enforcement of the covenants placed on a d velopmentis a matter between the developer and the residents within the development. The City does not have authority to enforce the restrictive covenants. BRUCE THIELEN MOVED TO APPROV THE FINAL PLAT AND DEVELOPMENT AGREEMENT FOR RIVI':R fOREST II R SIDENTIAL SUBDIVISION CONTINGENT UPON RECORDING OF COVENANTS C )VERING THE RESPONSIBILITY OF THE MAINTENANCE OF THE ENTRANCE ONUMENTS. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UN NIMOUSLY. Res. No. 2000-44. I 7. Consideration of bids and award of contr ct re-bid of Elm Street Sewer and Water Pro 'ect No.2000-0SC. I I I Included in the consent agenda. Recomme' dation: Move to award the bid to Schluender Construction, Inc. in the amount of $31 ,731 00. Res. No. 2000-45. S. Item removed from agenda. 9. Consideration of diseussin amendments () transient merchant ordinance. The Council discussed the existing ordinanc governing transient merchants/peddlers and solicitors and possihle changes to the or inance. There was some concern that the existing ordinance should not be encouragin to transient merchants who come in and compete with merchants located in the City.IThe Council also discussed whether the fees and other requirements of the ordinance were re~ rictive enough. Currently the ordinance requires that the transient merchant get approval of tl e property owner and be located in an area where there is adequate parking. In addition there is a daily permit fee of $50 plus a $3.50 application fee. Under the current ordinance produce sta ds have a daily permit fee of $1 O/day. There was a review of the permitting proces' for civic groups and non-profit corporations under the ordinance. There was also discussion on whether the Community Center should consider a policy that would restrict the type of sales ctivity of the people who rent the facility. It was suggested that the small group for the Coml unity Center set up a policy f(x this type of activity. BRIAN STUMPF MOVED TO INCREASE THE FEES GOVERNING THE SALE OF FARM AND GARDEN PRODUCE UNDER THE RANSIENT MERCHANT ORDINANCE FROM $1 O/DA Y TO $50/DA Y EFFECTIVE IMM DIA TELY. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIM USL Y. 2 . . . 10. Council minutes - 6/12/00 Consideration of installation of street Ii t in Monticello Townshi at 97th Avenue NE and Gillard Avenue. The Council reviewed the options presented for lighting the intersection of97lh Avenue NE and Gillard Avenue NE. CLINT HERBST MOVL':D TO lIA VE THE CITY INSTALL A NEW LIGIIT POLE AND LIGHT ON THE WEST SIDE OF GILLAR A VENUE NEAR THE INTERSECTION WITH 97111 AVENUE IN TI IE CITY LIMITS AT CURRENT COST OF $11.75/PER MONTIl BRIAN STUMPF SECONDED TI IE MOTI N. MOTION CARRIED UNANIMOUSL Y. The Council discussed the landscape plan that was ~ Ibmitted for the Bridge Park area. 'The area of concern was the screening around the lift station an generator. Bruce Thielen expressed his concern about only using spruce trees for thc screening and It that somc upright arbor vitae would be better screening material. John Simola informed the Coun il that the funds for the landscaping cost would be coming from the sewer fund. The work is proposed to be done this week. I The Council briefly discussed the City's ordinance garding noise and whether it is adequate. It was felt that the Wright County Sheriff's Department w(~' enforcing this ordinance but if there was a concern I the Sheriff's Department should be contacted and th y could patrol the area where the noise problem . . IS occurrIng. 11. Approval of payment of bills for June. CLINT HERBST MOVED TO APPROVE A YMENT OF BILLS FOR JUNE. ROGER CARLSON SEC()NDED THE MOTION. OTION CARRIED UNANIMOUSL Y. 12. Adjourn BRIAN STUMPF MOVED TO ADJOURN T 8:10 P.M. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNA IMOUSL Y. .,.- Recording Secretary 5 l . . . SA. Council Agenda - 6/26/00 Consideration of authorizin J annual firewo ks ex enditure for Rivcrfest Celebration. (RW) A. REFERENCE AND BACKGROUND: As part of the 2000 budget, the liquor fund ha included $8,000 for the funding of the annual fireworks display as part of the Riveriest Cele ration, July 9th. lhe Council is asked to approve allocation of these funds for this expenditure. B. ALTERNATIVE ACTIONS: ! 1. Authorize the expenditure of $8,000 inlliQuor funds for the Riverfest fireworks display. 2. Do not authorize the expenditure for fi eworks. c. STAFF RI~COMMENDA TIONS: D. It is the recommendation of the City Administ ator that the expenditure he approved as originally hudgeted. lhe liquor fund has annually contri uted between $8,000-$10,000 towards this community celebration. SUPPORTING DATA: None City Council Agenda - 06-26-00 . 5.B. Consideration of an amendment to the nterim Use Permit allowin 0 eration of the Alternative Learnin Pro ram in an 1-1 District. Consideration of an amendment to the Zonin Ordinance allowin ublic nd rivate educational institutions as a conditional use in the I-I District. and onsideration of an a lication for a conditional use ermit allowin J a ubli institution to 0 crate in an I-I District. Applicant: WAG Partnership/ Alternat ve Learning Program. (JO) H. 1. . 2. '" .J. . A. REFERENCE AND 13ACKGROU D Attached is the staff report and "draft" PIa ning Commission meeting minutes from June I 6, 2000, relating to the requests above. A~ you will note, the Planning Commission recommended denial of the requests. The 'lPplieant respectfully requests that the City Council send this item back to the Plannin!' Commission f(lr further review. The applicant has additional information that !as not available to the Planning Commission, and therefore requests an additional oppor~ mity to review the matter with the Planning I Commission. . AL TERNA TIVE ACTIONS I I Motion to send the item back to th . Planning Commission for further review. I Motion to adopt recommendation a d tIndings presented by the Planning Commission. Motion to adopt another alternative identified in the stafT report to the Planning Commission. C. STAFF RECOMMENDATION The City Administrator recommends sendi g the item back to the Planning Commission which will allow the Planning Commissio to hear information not available at the time of the meeting which could affect the reCOI mendation. D. SUPPORTING DATA Planning Commission agenda packet and" raft" meeting minutes of June 6, 2000. . . . Planning Commission Agenda -06/06/00 8-10. Consideration of an amendment to an I terim Use Permit to ermit the ex ansion of a buildin in the 1-1 District. A Hcant: WAG Partnershi . (NAC) A. REFERENCE AND BACKGROl D: WAG Partnership, owner ofa building in t e Industrial Park, has been leasing their building to the Monticello School District f()[ use as n Alternative Learning Program classroom. The ALP now wishes to expand the building to allow for additional student capacity. The property is zoned I-I, Light I ndustrial. The -1 District was amended to accommodate schoo] facilities by Interim Use Permit (IUP) a fe years ago. Interim Uses are uses which arc intended ~ occupy property for a defined amount of time. after which the use will be discontinued an. the property will be put to a land use anticipated by the zoning ordinance and Comprehens] e Plan. A building expansion to accommodate an interim use raises an issue as to wheth r the interim use is most likely to be permanent. The applicant has not requested an extens on of the permit at this time, but such a request could reasonably be anticipated. The cxis ing interim use permit is in force until sometime in 200 I. It should be noted that the property owne~ does not necessarily need an interim use permit to expand the building. However, the exp: nsion of the school use triggers the need for the amendment. Ifthe City issues the permit mendment allowing the expansion, the applicant should be forewarned that there is no guar. ntee that the interim use perm it will be extended beyond its planned termination next yea. As a result, it is important that the building expansion is designed so as to easily acc mmodate occupancy by an industrial use. This condition was also enf()fced at the time 0 the original IlJP. If the City believes that the use is an accepable one in the Industrial District, it may be more appropriate to amend the zoning ordinanc to establish the use by Conditional Use Permit rather than Interim Use Permit. Thus, the " pplicant was also encouraged to apply i()f a text amendment and CUP in the 1-1 Distric. CUPs are permanent land uses and future termination and re-use arc therefore less of a concern. As with any Conditional Use Permit, any industrial property would be eligible. he City recently revised its ordinance to limit the location of institutional uses such as sc oo]s by establishing a PS, Public-Semi Public District. The issue at the time was to co trol the ability of institutional uses to consume industrial land. The City has greater d scretion in rezoning actions than it does with Conditional Use Permits. Regardless of the administrative route hosen, any approval of a permit to allow the expansion should be accompanied by a se ies of site improvements as if the use were to be permanent. A limited waiver of addition a site improvements had been granted due to what -1- sg . . . Planning Commission Agenda -06/06/00 was presumed to be the temporary nature fthe school's occupancy. The applicant should be prepared to construct the parking lot in c mpliance with all ordinance standards, including paving, perimeter concrete curb, and adeq late handicapped facilities. The Building Code requirements fix this occupancy should be. eriJied by the City Building OfficiaL and Water and Sewer connection fees should be brou ht up to date. I[the application proceeds as an amended Interim Use Permit, the applicah e conditions from the original permit (attached) should be incorporated into the extension. B. ALTERNATIVE ACTIONS Decision 1: Amendment to the existing nterim Use Permit to expand the building. 1. Motion to recommend approval oft e I UP amendment, contingent on the conditions listed in Exhibit Z, and the applica Ie conditions from the original permit attached as Exhibit Y. (j... i Motion to recommend denial of the UP amendment, based on a finding that the use is intended to be temporary and ex ansion of the building is inconsistent with that intent. I 3. Motion to tahle action on the IUP a endment, pending additional information. , i i Ifaction is taken under Decision 1, Decisioi1s 2 & 3 do not apply (moot). Decision 2: Amendment of the Zoning rdinance to change school facilities in the I-I District from Interim Uses t Conditional Uses. I. Motion to recommend approval of he Zoning Ordinance amendment, based on a finding that the school use is compat'ble with the activities in the Industrial District. 0J ! Motion to recommend denial of th Zoning Ordinance amendment, hased on a finding that the school use is not c mpatible with the activities in the Industrial District over the long term. .... .J. Motion to table action on the ordinan e amendment, pending additional information. Decision 3: Conditional Use Permit for s 'hool use in an I-I District. I. Motion to recommend approval of he Conditional Use Permit, contingent upon conditions listed in Exhibit Z, based n a fi.nding that the use will be compatible with the long term land Llses of the area i which is located. -2- 5\3 . 2. Motion to recommend denial of the ~onditional Use Permit, based on a finding that school uses should remain in the Pc' District as the ordinance currently requires. Planning Commission Agenda -06/06/00 3. Motion to table amendment of the zo ling ordinance, pending additional information. C. STAFF RECOMMENDATION Statl does not recommend approval of the UP expansion. The City previously elected to place such uses in the PS District to av id consumption of prime industrial land by institutional uses. Land along County Road 117 is in the heart of the City's industrial area, and with good access, should be considere an excellent location for an industrial tenant. If the City believes that expansion of the use is acceptable, it should consider adoption of the Conditional Use Permit as a permanent land lse. However, this action would have the same impact on industrial land use as the IUP.'taiT would recommend that the bctter solution would be to identify a location for the ALP hich can be establishedas a permanent use and which does not conflict with the industrial d 'velopment goals stated in the Comprehensive Plan. . Exhibit A - Site Plan & Aerial Vicw Exhibit Y - Previous fUP Conditions Exhibit Z - Proposed IUP/CUP Conditions . -3- c:? ,)0 8 ~ \ ... I I \ \ I "" I '\ c::i..... ".. yjC)l1'll::l~Q :!: .... lI) I::: ~ ll> Cl.I ll:J . lI.J ~ Q> ..... 0 1...1 ~'+-- ....""... -: .0 ll>..... ;:-,C)<O c:...... ......(;)...,...,llJO V) . 0 lI) ~ -q ~ l1'l llJ ..., n. (;)1ll1t ... :z.....1::: lI).c::: C') c::.....lll..... ~.c:::i:%~c:: . ~~ .....I:::o-,'b ..... A. 10 ..., Q:V):>"C:I l:JO t.:J ~lO.....t..lI) VlllJ5 "::C~ l.IJ.c:: .....bll..l.... Cjl-8l'<)o-,lI.JC:: 0)'-.1:..:2 '-.4.. '.", OLu t.:J I- ~~ ~ ~I- a: 00 V)~ ~ ~~ ~ ",",I- e l.I)~ ~~ b ~~ ~ ~2 ~ oo.oor Hinos f~ ~ ~ ~ ~ ~ ~ ~ ~ ~ h ~' ~ \). ~ ~,~ ',oJ ~ ~* \\~ ~ ~~ ~~ ~~ ~ ~~ ~ \) ~ ~ e \) \\ II -~ ~ ~~ ~ ~ ~ ~ .~ ~ ~ ~ " ~~ It ~ '\ ! H ~ . ~ ~~ ~ ~ ~ ~ ~ ~ ~ ,J ~ ~ \ ~ ~~ ~ ~ ~ '\ ~~ ~ '\ ~ ~ ~ ~ \ ~ \J ~ ~~ ~;J't ~ ~ '\ ~ &l ~ IZ ., 1\ '\ ~\ ~ \) . '\ ~~ ~ - 00 OOf -- I I Of I- I I ... --1. I I .,'/ I . ' e ~ Ie 0 ,;.f Pi t: ~ ~ ~ ~ . i 0' i . ..-.. ....,.. (5 B ) <6-10 b . . . MonticclJo Public Schools Turning Point ALP - Conditions ofInterim Use Permit (9-7-99) 1. The interim use permit will expi e on August 31, 2001. Extension ofthe use of thc subject property for publi school use beyond the termination date may only be alJowed by re-appli ation to the City. 2. The District agrees to expand th parking area at the direction of the City. The City will direct expanded pa king based on its observation of parking demand which may cause the us of on-street parking at any time. 3. The use of the subject property ill be during normal school hours only. 4. The granting of this interim use ermit shall not be effective until after inspection and approval of the b i1ding and property by the City Building Official. EXHIBIT Y SP. . '--" . . . CUP/fur Conditions for ALP i WAG Partnership Building 1. Construct the parking lot in compliance w'th all ordinance standards a. pavll1g b. perimeter concrete curb c. adequate handicapped facilities 2. The Building Code requirements f()[this oec lpancy arc verified by the City Building Official 3. Water and Sewer connection fees arc made current, per City Engineer. 4. Compliance with original IUP Conditions ( s applicable. 5. Compliance with landscaping standards. Exhibit Z - CUP/IUP Co ditions of Approval . --- ~ - .--- --.-- ~~--._. I"'"~""~ S.' ... \",/\ -. ..._""r . . . 8-10. DRA T Planning COlllmission Minutes - 6-6-00 Consideration of an amendment to an Interi 11 Use Permit to ermit the ex ansion of a buildin in the I-I District. A licant: WA 'J Partnershi . Steve Grittman provided the report regardin the applicant's request for an addition to their building. W ACT Partnership, owner of building in the Industrial Park, has been leasing their building to the Monticello Sch 01 District for use as an Alternative Learning Program classroom. The ALP now wishes t expand the building to allow for additional student capacity. The property is zoned I-I, Light Industrial. The I-I District was amended to accommodate school facilities b Interim Use Permit (IUP) a few years ago. Interim Uses are uses which are intended to ccupy property for a defined amount of time, after which the use will be discontinue and the property will be put to a land usc anticipated by the zoning ordinance and Con prehensive Plan. A building expansion to accommodate an interim use raises an issue i. s to whether the interim use is most likely to be permanent. The applicant has not request d an extension of the permit at this time, but such a request could reasonably be anticipate . The existing interim use permit is in force until sometime in 2001. If the City believes that the use is an accepta Ie one in the Industrial District, it may be more appropriate to amend the zoning ordina ce to establish the use by Conditional Use Permit rather than Interim Use Permit. Thus, the applicant was also encouraged to apply for a text amendment and CUP in the I-I Dist ict. CUPs arc permanent land uses and future termination and re-use are therefore les of a concern. As with any Conditional Use Permit, any industrial property would be ligible. The City recently revised its ordinance to limit the location of institutional uses such as schools by establishing a PS, Public-Semi Public District. The issue at the ime was to control the ability of institutional uses to consume industrial land. he City has greater discretion in rezoning -5- y-- -.' \-'. \/' ~ -....). . . . DRA"T actions than it does with Conditional Use Planning Commission Minutes - 6-6-00 Chair Frie opened the public hearing. Wa ne Hoglund, W AU Partnership, stated that everything seemed to be covered in the sta l report. There were no further comments. The public hearing was closed. The commissioners stated their feelings tly t the school is not the intent of this area and not consistent with the comprehensive pial. A safety issue was also brought up, although there have been no complaints with the sch 01 operating on this site and a previous car issue was resolved as well. Gene Garman, AI,P, states that cost is a factor here and that WAG has been very generous to them. He states that if the City puts them in a position to have to move, the ALP would probably old. Alternative sites were discussed such as th old Senior Center, but it was stated by Mr. Garman that their current site is ideal as it is a remote site. Fred Patch, Building Of1icial, also stated that there have never been any c )mplaints received of any kind regarding the ALP operating out of this site. Mr. Frie stated that the bottom line is that '. n addition to the building can be granted, but that a school is not suitable f<Jr this site. R bbie Smith stated his approval of the ALP and that being a remote sites is useful verSl s downtown. It was also noted that this is a privately owned building, paying taxes and leasing to the school. Gordon lloglund, WAG Partnership, stated that the SAC/WAC, trunk fees are heavier when a school is involved and therefore, if the City is not in ending to extend the IUP or make this a permanent use, they would not be as inclin d to add on to their building. Mr. Grittman noted in his report that staff does not recommend approval of the JUP expansion. The City previously elected to lace such uses in the PS District to avoid consumption of prime industrial land by in titutional uses. Land along County Road 117 is in the heart of the City's industrial area, nd with good access, should be considered an excellent location for an industrial tenant. f the City bel ieves that expansion of the use is acceptable, it should consider adoption oft e Conditional Use Permit as a permanent land use. However, this action would have the same impact on industrial land use as the IUP. Staff would recommend that the bette solution would be to identify a location few the ALP which can be established as a per anent use and which does not conflict with the industrial development goals stated in t e Comprehensive Plan. Decision 1: Amendment to the existing Interim Jse Permit to expand the building. A MOTION WAS MADE BY RODDIE S ITH TO RECOMMEND DENIAL OF THE IUP AMENDMENT, BASED ON A FIND NO THAT THE USE IS INTENDED TO BE -6- /"'''''''''. 5 \./1 ~.-.J . DR FT Planning Commission Minutes - 6-6~OO TEMPORARY AND EXPANSION OF TIlE BUILDING IS INCONSISTENT WIT I I THAT INTENT. RICHARD CARLSON SECONDED THE MOTION. Motion carried. Decision 2: Amendment of the Zoning )rdinance to change school facilities in the 1-1 District from Interim Uses 0 Conditional Uses. A MOTION WAS MADE I3Y ROBBIE SMITH TO RECOMMEND APPROVAL OF THE ZONING ORDINANCE AMENDM -:NT, BASED ON A FINDING THAT THE SCllOOL USE IS COMPATIBLE WITH TilE ACTIVITIES IN THE INDUSTRIAL DISTRICT. THERE WAS NO SECOND TO TI-IE MOTION. Motion failed. A MOTION WAS MADE I3Y ROY POPILEK TO RECOMMEND DENIAL OF THE ZONING ORDINANCE AMENDMENT, BASED ON A FINDING TIIAT TilE SCHOOL USE IS NOT COMPATIBLE 1'1'11 'fUE ACTIVITIES IN THE INDUSTRIAL DISTRICT OVER THE L )NG TERM. ROD DRAGSTEN SECONDED THE MOTION. Motion carried 4 to 1 wit Robbie Smith voting in opposition. Decision 3: Conditional Use Permit for school use in an 1-1 District. . Decision 3 is a moot decision. . -7- f"'-"'" L-.\ I"'~/ -) . . . 7. Council Agenda - 6/26/00 Consideration of a resolution authorizin sale of '1 645000 in G.O. 1m rovement Bonds for Pro.ect 98-25C-Chclsca Road Wcst/Grovcland Dcvelo ment. (RW) A. REFERENCE AND BACKGROUND: With the Chelsea Road and Groveland Pha e I development project well underway, the City Council is asked to begin the process f selling bonds to finance this improvement project. The total project cost, including 2 IVO indirect costs for engineering, legal and other bonding related costs, brings the esti ated total to $1,879,810. Since most of this project will be assessed to benefitting prop rty owners including the Oroveland residential phase I development along with other existing commercial propeliies such as D & D Bus, Gould Bros. and other benefitt ng property owners along the new Chelsea Road, the City will need to borrow funds fi r this project which will be repaid over approximately ten years. At this time, approximately $375,000 ofth total project cost will be the City's responsibility and will be paid from anum er of various sources including our trunk sewer, water and storm sewer funds along with ap roximately $180,000 that wi II need to be collected through ad valorem tax levies during the Ii ~ ofthe bond. After deducting the amounts that will be paid by the City from our trunk fun s, the amount we need to borrow is approximately $1,645,000. Mark Ruff and Rusty Fifefield of Ehlers an Associates, the City's bonding consultant on recent projects arc preparing the preliminay recommendations for this sale. On Monday night, the City Council should authorize th sale of these bonds which will actually take place some time in July with proceeds receivable y the City some time in August. Mr. Rusty FifeJield will present their recommendation' on other details of this bond sale on Monday. B. AL TERNATIVE ACTIONS: 1. Adopt the resolution authorizing the sale of$I,645,000 in 0.0. Improvement Bonds for the 98-25C Project as recommended by Ehlers and Associates. C. STAFF RECOMMENDATION: It is the recommendation of the City Admin strator that the bond sale process be authorized as recommended by Ehlers and Associates. Si lce this project is well underway, the City really has no choice but to find a mechanism to fi ance the improvement. D. SUPPORTING DATA: . . Copy of resolution Rccommendations from Ehlers and ssociates JUN, 21. 2000 4:34PM EHLERS & ASSOC, NO, 1801 P. 10 . Resolution No. Council Member introduced the f, Howing resolution and moved its adoption: Resolution Providin for the Sale of 51,645,000 General Obligation Imp ovcment Bonds, Series 20008 k WHEREAS, the City Council of me City of Montice 10, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $1,645,0 General Obligation Improvement Bonds, Series 2000B (the "'Bonds"), to finance the construction of various public improvements in the City; and B. WHEREAS, the City has retained Ehlers & Associa es, Inc., in Roscville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is the efore authorized to solicit proposals in accordance with Minnesota Stamtes, Section 475.60, Subdivisi n 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Co Dei) of City ofMonticeHo, Minnesota. as follows: I. Authorization: Findin~. The City Council hereby a morizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meetin!!:: PrODosal Ooeninll. The City Council shall meet at the time and place specified in the Tenns of Proposal for the purpose of considering sealed pro osals for, and awarding the sale oflhe Bonds. The City Administrator, or designee. shall open proposal at the time and place specified in such Tenns of Proposal. . 3. Tenos of PrODOSaJ. The terms and conditions of the onds and the sale thereof are fully set fonh in the Bond Sale Report and are hereby approved and mad a part hereof. 4. Official Statement. In connection with said sale, e officers or employees of the City are hereby authori~ to cooperate with Ehlers and participate . n the preparation of an official statement for the Bonds and to execute and deliver it on behalf of me ity upon its completion- The motion for the adoption of the foregoing resol tion was duly seconded by Council Member and, after full discussion ereor and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed an adopted. Dated this _ day of .2000. City A . nistrator . (SEAL) -, JUN. 21. 2000 4:33PM EHLERS & ASSOC. . BOND SAL REPORT NO. 1 80 1 P. 2 $1,645 000 General Obligation I provement Bonds, Series 2' OOB City of MonticeUo, Minnesota . June 26, 2000 . Ehlers & As oclates, Inc. l . . . JUN, 21.2000 4:33PM EHLERS & ASSOC, OVERVIEW NO, 1801 P. 3 This report describes the proposed plan for the City of Monticello (the UCity") to issue $1,645,000 General Obligation Impr ement Bonds. Series 2oo0B (the "Bonds"). This report has been prepared b Ehlers and Associates, in consultation with City Staff and bond counsel. This rep rt deals with: . Purpose and components of bond issue. · Structure. . Other considerations in issuing bonds. · Market conditions. · Issuing process. PURPOSE The $1,645,000 General Obligation Imp yement Bonds, Series 2000B are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, for the purpose of fmandng the City's public improvem nt projects identified as Project 98-25C. Finandng these projects requires a bo d issue in the amount of $1,645.000 consisting of the following sources and ses of funds: Sources $1.645.000 234.751 Par Amount of Bonds City Funds on Hand Total Sources Uses Total Project Costs Discount Allowance Capitalized Interest Finance Related Expenses T ota! Uses $1,791,991 23,000 42,360 22.400 Page 1 $1.879,751 $1,879,75 I '1 JUN, 21. 2000 4:33PM EHLERS & ASSOC. NO. 1801 P,4 . STRUCTURE AND REPAYMENT The Bonds are general obligations of the C ty of Monticello and as such are secured by a pledge of the City's full faith, credit, d taXing powers. It is the intent of the City to levy special assessments in the amo nt of $1,464,066. The assessments will be levied in 2000 for collection in 2001 ough 2010 with a rate of 6.75% applied to the outstanding balance. The remainin debt service will be paid from a tax levy. The projected debt service and flow of fun 5 can be found in Exhibit 1.00. The repayment schedule: has been sttuctur d to fit around the existing tax levies for debt service. Principal payments maturin in 2002 through 2011 are structured to meet special assessment revenue collections, including expected prepayments over the next three years of prepayments of the resi entia! portion of the project, to maintain level debt service payments of about $25, 00 per year. The Bonds will be sold July 10,2000 and b dated August 1,2000. The first interest paYment on the Bonds will be Febroary , 2001. and semiannually thereafter on August 1 and February 1. Principal on th Bonds will be due on February 1 in the years 2002 through 2011. . OTHER CONSIDERATIONS Following is a summary of key factors in e finance plan: . We recommend the following call feat re: Bonds maturing February 1, 2008 and thereafter will be subject to prepaYment at the discretion of the City on August 1, 2007. . Bidders on this issue may submit a id which contains a maturity schedule providing for any combination of se ial bonds and term bonds, subject to mandatory redemption. If the purcha er of the Bonds designates certain of the maturities as Term Bonds. subject 0 a mandatory call, the City will be responsible for providing a Notice of C 11 to holders of the Bonds at least 45 days prior to the call date. We can discuss .th you the option of retaining a paying agent to provide the proper call noti es to owners of the Bonds. Allowing potential purchasers the term bond op ion results in increased bidder interest in this issue and possible lower interest r tes. . Page I JUN. 21. 2000 4:33PM EHLERS & ASSOC. NO. 1801 P. 5 . . Because the City is not issuing more th n $5,000,000 in tax-exempt obligations during calendar year 2000, the debt 11 qualify for the small issuer exemption from arbitrage rebate. This exemption from rebate does not eliminate the need to comply with other arbitrage regula ions governing the investment of bond proceeds and debt service funds. The e requirements will be explained in the bond record book received following d sing. . We. anticipate that the City (in co bination with any subordinate taxing jurisdictions or debt issued in the City' name by 501(c)3 corporations) will not issue more than a total of $10,000,00 in tax-exempt debt during this calendar year. This will allow the Bonds to be d signated as bank qualified. Bank qualified status broadens the market and achi s lower interest rates. . The Bonds will be global book entry wit a bank designated as the paying agent. AJi "paperless" bonds, you will avoid the c sts of bond printing and annual registrar charges. The Payin& Agent will invoice you for the interest semi-annually and on an annual basis for the principal comin due. You will be charged only for paying agent/transfer agent services provided y the bank.. . Moody's Investors Service will be aske to rate this issue. The City currently has an "A3" rating on its outstanding gen ral obligation bonds. . . New regulations of the Securities and change Commission on the continuing disclosure of municipal securities appl to long-term securities with an aggregate principal amount of $1,000,000 or m reo Because the aggregate amount of this i sue is over $1,000,000 and the City has more than $10,000,000 in total muni ipal obligations outstanding. you will be obligated to comply with Full Continu Ong Disclosure requirements as required by paragraph (b)(5) of Rule 15c2-12 pro ulgated by the Securities and Exchange Commission under the Securities ange Act of 1934. You will be required to provide certain financial information and operating data relating to the City annuallY and to provide notices of the ccurrence of certain material eventS. The specific nature of the Undertaking, as ell as the information to be contained in the notices of material events will b set forth in the Continuing Disclosure Certificate that you will enter into at he time of closing for this issue. . Page 1 JUN. 21. 2000 4:34PM EHLERS & ASSOC. NU. I ti U I r. 0 You are responsible for reporting an of the material events listed below and in the Undertaking. . 1. 2. 3. 4. S. 6. 7. 8. 9. 10. 11. 12. 13. . Principal and interest paymen delinquencies; Non-payment related defaults Unscheduled draws on debt s rvice reserves reflecting financial difficulties; Unscheduled draws 01\ credit nhancem.ents reflecting financial difficulties; Substitution of credit of liqui 'ty providers, or their fallure to perform: Adverse tax opinions or even affecting the tax-exempt statuS of the securities; Modification to rights of hol ers of the Securities; Securities calls; Dcfeasances; Release, substitution or sale f property securing repayment of the Securities j Rating changes; Failure to provide annual fm. cial information as required; and Other material events. REFUNDING OpPORTUNITIES We have reviewed all outstanding indebt dness for the City and find that there are no immediate refunding opportunities fo the City at this time. We will continue to monitor the market and the call dates or the City and alert you to any future opportunities. . Pa e4 ~'7 JUN. 21. 2000 4:34PM EHLERS & ASSOC. NO. 1801 P. I . MARKET CONDITIONS The graph below shows the trends in the ond Buyer's 20~Year G.O. Index (BBI) since 1990. The Bond Buyer's 20~Year G. . Index (BBI) currently stands at 5.77%. Interest rates have followed an upward tre d over the past 12 months but remain moderate when viewed over the past decad (see chart below). TWENTY-YEAR BON BUYER INDEX 10-VEAR TEND 9.00 8.50 ' , , I ',/ 8.00 ., , . \ I ~ l' ." ',! . " . 'fI. 7.50 " , - 7.00 I: 6.50 cu e 6.00 :. 5.50 5.00 . 4.50. 4.00 ~ ~... Cb'" C?Jf?> q,tJ< QtO ct,Cb ~ . 2000 . P.a.g 5 -'-1 . . . JUN. 21.2000 4:34PM EHLERS & ASSOC. ISSUING PROCISS NO. 1801 P. 8 Following is a tentative schedule for the ste s in the issuing process, June 26, 2000 Week of June 26, 2000 Week of June 26, 2000 Week of July 3, 2000 July 10,2000 Week of July 31 (Est.) Cit Council adopts resolution calling for the ale of the Bonds Sub it draft Official Statement and rat' g materials to Moody's Investors Se . ce for credit rating Dis 'bute Official Statement Page 6 ~I ~JUN, 21. 2000 4:34PM EHLERS & ASSOC. NO. 1801 p, 9 = ~ ,. .c a 08~~~~~~gg8 0 0 O'!. ~ ";";0";"''''''''':'':'': 'Q" __NNNNNNNN "'" N .... Oo:tN"OiXl-.:l'(1')ON...... " 0'1 0"'" N<.O<.OmU') ""'co 0 O'lCONLt'lO",""O'lOO'l ['/'J ~ .,;.,;o.n",,,,,,,,,,":te 0 1:.... ...........NNNNNNN (J'l Z ... N ;:. ..... N ~t .:I_v ~ _J! cJ D.C c:: c:: c:l '" 1& vJ ,Q CLl "t:I iii o_""~""""""'\D""'''''N co ~ "u . I """ "' <nm "' 0 ::l ~ ~ .2 .. NOO'll,Q......r--NCO co 0 "t:I ~ ~ :IE ~gNv~r-:aidNt<i ~ c:: u U')CO "\DlrIlrI 0!t(1l ~ "" '> I.'" (1l(\l(\l................................ <II "" ..... 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MNNN........................... ..... ~ i N i;; 'S ui 0 i -N l'I')'<tU')\D"CC 0'10"'" ;;; 0 1~~O080800-~ ~ lD o 0 0000 U N~NNNNNNN...J 41 'E .c 41 ~ i5 "t:I E d: 0 ;;i ~ t"- o ..c o....Nm'<T8~"llOO'IO <II ~III -180800 08O~ ~ .9 .... u 0 000 0 00 - cp .. &NNNNNNNNNNN j a:; .";: cp u C cp >- 8 .. :;: . .... '" c CI )( t- O CI .. O'lg_Nl'I')'<tLt'l"O......OOa> ~ 01- ~J 0'1 080008080 Li.i . - ~0'l00 000 0 0 0 .....NNNNNNNNNN l5 ~~ u ~ .... z . Cl .... - U wa.. ._--/ C\t'l fund,ng \5) \G) \'1. + G) p.,d \/a\oretl\ 60nd \2) \'3) 1"run\<. stortl\ p.,tl\Ount \'\) p.,tl\Ol.lnt 1"rl.lnK se\fJer fund \-ev'1 proiect p.,ssessab\e sewer fund costs $'\35,993 $'\ ,645,059 $35,576 $64,45'\ $'\34,724 $'\ ,879,8'\0 $'\ ,509,066 Cl-IE\..SE'" RO"'O ",NO G O',/E\..",NO I'l-I",SE \ PROJEC1' 98.2SC COS'- SUt.IIt.II",R'l OR aONO S",\..E . Notes'. . . s ,..ito 28'/' indirect added alreadY, . d actu I bId p"ce .. " pro'\ec.t costs are 'oase on \<.doNlJn 0' "indirect costs ). .'" . t , a t"l"I ca\ 'ofea (see at",COed es",,,a e o,y . . I d Develop",ent (Residentl3l) IS vel'! 10e $292,435 In assess",ents 10' toe Groves::s",ents are assu",ed to be paid ove' \I"el" to be paid ",itoin 3 Y's. alance Ot' ags n"cels and ",ito toe uncertaInlY 01 ",oen n , . to" <<ect eXls In yO d n't develop, norlila\ '\ 0 ,/ears, sInce e, \ d \t \:De COlillilercia\ parce\S 0 \ a" 'oe e\Je ope . colillilerc\a\ pafce s iii , . d) "'ts '-NOn't 'oe paid aM \prepa\ . assesSlilel' . . . . . 8. Council Agenda - 6/26/00 Consideration of acce tin the 1999 audit e ort. (R W) A. REFERENCE AND BACKGROUND: Mr. Rick Borden of Gruys Borden Carlson A 'sociates will be present at the meeting Monday night to present a hrief overview of he 1999 audit report that has been recently completed by their firm. A copy of the report has heen included with t 1e agenda for Council review. I realize that this lengthy report may be hard f(Jr the Council to review and analyze in such a Sh0l1 period of time but the report needs to be accepted by the Cit Council prior to the end of June, as it has to be suhmitted to the state auditor hy June 30, 200 . After the brief presentation, if the Council fe Is they would like additional time to review the report, this item can again be scheduled at a f Iture council meeting for more discussion. In reviewing the preliminary draft copy with r. Borden, it appears that the City's finances arc in good shape with increasing fund balances i 1 most areas. Mr. Borden will review with the Council the financial condition of the City an highlight any specific points during his presentation. In the meantime, if anyone has. ny specific questions prior to Monday night, feel free to contact me or Mr. Borden at Gruy' Borden Carlson. B. AL TERNA TIVE ACTIONS: 1. The Council should accept the 1999 a dit report as presented so it may be submitted to the state auditor by the required June Oth deadline. C. SIJPPORTING DATA: Copy of the 1999 audit report. . . . 9. Council Meeting - 6/26/2000 Consideration of extension of trunk s nita sewer from the south side of CSAH 75 throu h the Bondhus Cor oration to t e south side ofthe Burlin ton Northern Sante Fe Railroad ril!ht of way. (1.S.) A. REFERENCE AND BACKGROUND: With the CSAlI 75 Improvement Project #98-1 C, the city installed a new large diameter trunk sanitary sewer from Hart Boulevard southerly acr ss CR 75 and terminated it just into the Bondhus property. Originally we intended to cross CR 75 perpendicular and then in the future run straight through the Hondhus Corporation project west of their current parking lot. During negotiations with Bondhus for the easem nt just to terminate this first section of sanitary sewer on his property, he requested that we cros CR 75 diagonally toward the west to give him more clearance for additional building constructi n in the future. This change was made after the project started and cost in cxcess of $20,000. With the Bondhus Corporation wanting to place additional fill on their property and the school requesting completion of the nature center/wet! nd ponding area, it became apparent that the additional fill placed on the I30ndhus property' Id the construction of the ponding area would conflict with our future plans to cross thc rest ofth Bondhus property with our trunk sanitary sewer. We informed the Hondhus Corporation and the s hool that we did not wish to allow the Bondhus Corporation to fill their property or complete the p nd until the trunk sewer was in place as it would be difIicult at best to protect the pond and the city could be faced with significant additional costs for excavation and restoration in the future. Mike Nielson began negotiations for an easemen to cross the remaining portion of the Hondhus property to the south side of the BNSF railroad. T e Bondhus Corporation again requested that the line be pushed further west to allow them more ro m for building construction in the future. This became somcwhat difficult for the city because he line actually has to go cast again bctl)fe it continues south crossing the rest of the Bondhus pr perty, church property and 1-94. Mike was able to negotiate an easement further to the west, how vel', this will increase our cost by an additional $60,000, just to get to the south side of the railroa right of way. During a stafl meeting regarding this project, it as a staff consensus that we should obtain the remaining easement from the Bondhus Corporatio and possibly the church going from the south side of the BNSF railroad right of way to 1-94 prio to proceeding with this project. The overhead view of this trunk sewer alignment is beginning t look like a snake trail. Mike Nielson is in the process of trying to negotiate that final easement. The estimated cost of construction to get through t e Bondhus Corporation property and cross the railroad at this time is $318,912. This does not in lude the construction of the pond nor complete restoration of all the Hondhus property disturbed by the CR 75 project. . . . Council Meeting - 6/26/2000 This extension of trunk sanitary sewer is part of group of comprehensive $3.5 million sanitary sewer projects outlined in the Comprehensive Sat itary Sewer Study in 1995 by OSM. This $3.5 million estimated cost did not include the work t be done in re-routing the Chestnut Street lift station and replacement of sanitary sewers on Fr nt Street, Linn Street and River Street, which would increase sanitary sewer expenditures to ove $4 million in 1995 dollars. Eventually this trunk sewer crossing the Bondhus roperty will continue to the south side of 1-94 where it will actually serve a great deal of the prop rty south ofI-94. The construction of this trunk is necessary to relieve the interceptor sewer along t e BNSF railroad tracks which was built in 1981 and 1986. Without this additional new trunk, for ex mple, the city could not develop the Chadwick property into an industrial park, nor could final d velopment of the property to the southeast be completed. Although this section of the trunk sewer would not have to be built this year or next, the timing of the restoration of the Bondhus Corporation property nd the pond construction for the school, as well as the ability to be able to obtain the easements t I' the sewer line prior to development of the properties makes the timing right for the eonstructi n of this section. There are adequate funds in the Sanitary Sewer Access Fund at this time to com Icte this construction. Most of our trunk funds, however, will run in the red for several years (as pe 1999 Trunk Fee Analysis Report by WSB) as we complete major sections of trunk sanitary sewer, ateI', and storm sewer necessary for the future development of the community. B. ALTERNATIVE ACTIONS: 1. The Lirst alternative would be to approve the feasibility and cost study for the extension of the trunk sewer from CR 75 to the south side fthe BNSF railroad and authorize preparation of plans and specs upon receipt of the eas ment from the Bondhus Corporation. This alternative would also require that we obtain the additional easements to go to 1-94 prior to this work being started. This would get the b II rolling on the project and allow the plans to be completed also for the pond on the school property as wcll. 2. The second alternative would be not to mov forward with this portion of the trunk sewer extension nor the pond on the school prop rty, nor to allow the filling of the Bondhus property at this time. 3. The third alternative would be to complcte t e pond and allow the filling of the Bondhus property and worry about the trunk sewcr ext nsion when thc need for the whole system is at hand. C. STAFF RECOMMENDATION: It is the recommendation of the City statTthat we build this section of the trunk sewer at this time prior to completion of the pond, filling of the Bondh s property and beic)fc future development of . . . Council Meeting - 6/26/2000 the Bondhus property itself. This line is needed t service property south ofI-94 and we cannot make use of our wastewater treatment plant facility to its fullest extent if we can't get the wastewater to it. The opportunity is here to get this portion built and get the necessary casements. Stafe however, felt that we should obtain the easemen s all the way to 1-94 so that wc do have an alignment f()r the future prior to completing this pr ~ect. Therefore, we recommend alternative #1. D. SUPPORTING DATA: Copy of map showing this section of the proj improvements south ofI-94. Copy of engineer's opi project. Copies of the 1995 Comprehensive Sanitar Analysis Report by WSB are available at city hall ct. Copy of map showing final proposed ion of probable cost f()r this proposed extension Sewer Study by OSM and the 1999 Trunk Fee r your revIew. . OPINION OF PRO BABLE COST City of Monticello Southeast Interceptor Sewer Extension (Bondhus Property & B I,JSF Railroad) WSB Project No. 1160~291 Date: 6/19/00 By: MJN \ I I UNIT I EST I EXTENDED ITEM DESCRIPTION I UNIT PRICE QTY PRICE 1 MOBILIZATION I L.S. $10,000.00 1 $ 10,000.00 2 CLEARING I L.S. $ 1,000.00 1 $ 1,000.00 ." 3 30" DIA CONCRETE PIPE ~ EPOXY COATED , L.F $ 200.00 190 $ 38,000 4 JACKED 42" DIA CASING PIPE : L.F $ 500.00 180 $ 90,000 5 30" - CARRIER PIPE L.F i$ 75.00 180 $ 13,500 6 I MANHOLE 84" I L.F $ 600.00 30 i$ 18,000 7 MANHOLE 48" i L.F $ 200.00 90 $ 18,000 8 DEWATERING , L.S. $ 35,000.00 1 i$ 35,000 9 RESTORATION (SEEDING ETC) I L.S. $ 3,000.00 1 $ 3,000 i , CONSTRUCTION COST = $ 226,500 10% CONTINGENCY = $ 22,650 SUB~TOTAL = $ 249,150 28% LEAF = $ 69,762 . 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(10) RErERENCE AND BACKGROUND City Council Agenda - 06-26-00 rdinance for auto sales in the B-3 District 500 s uare feet. A licant: Dunlo The Planning Commission has scheduled a sp eial meeting immediately prior to the City Council meeting to discuss the zoning ordinan e amendment necessary to allow Dunlo Motors to move to the old Wendy's site. Info mation regarding the request can be found in the attached information to the Planning Co mission. In summary, the City's zoning ordinance sets a threshold of 4,500 square feet as the minimum size f()r a structure associated with auto sales. The Wendy's buil ing is 2,950 square feet which is 6% of the total land area at the I acre site. The new 0 dinance if approved would reduce the building size threshold to 2,950 square feet. Using the Dunlo building to site area ratio as t e guide, the ordinance would also include a required ratio of building area to site area which would eliminate the possibility of a small building on a large parcel. On the positi e side, the new ordinance would enable a positive re-use of a now vacant building. Of c ncern is the potential of proliferation of used car dealerships operating out ofrelativcly small buildings. The redevelopment of the Ford and GM dealerships along with the n w development the Chrysler Dealership will make Monticello an inviting place for car 'hoppers and Llsed car dealerships. Reductions in the minimum standards will ma e it easier for Llsed car dealership to set up shop on the coat tails or the new stores. ..-.. ~ The Planning Commission recommendation w 11 be provided at the meeting. AL TERN A TIVE ACTION I. Motion to approve the zoning text ame dment as recommended by the Planning Commission allowing minimum size st ucture of2,950 square feet and a building to site area ratio of 6% based on the fin ing that the amendment is consistent with the comprehensive plan and consistent ith the characteristics of the B~3 District. This will be reported to the City Counc I at the meeting. 2. Motion to deny approval of the zoning ext amendment based on the findings that reduction in the building size requirem nts is not consistent with the Comprehensive plan and not in keeping with the character of the the B-3 district. 3. Motion to modify and approve the prop sed zoning ordinance amendment enabling development of the Dunlo De' lership is proposed. I City Council Agenda - 06-26-00 . STAFF RECOMMENDATION Staff prefers to sit on the fence. There is no doubt that regulation of used car dealerships is integral to the success of commercial are s. With the great investment in new car dealerships it is likely that we will see conti ued interest in used car dealerships which is not a bad thing unless a proliferation of use car lots and associated absorption of land eats away at the potential for development f tax base. Will this ordinance change result in such an occurrence? We just don't know It is up to the Planning Commission and City Council to determine if the ordinance mendment as proposed will be a step in the right or wrong direction. SUPPORTING DATA Information from Planning Commission M etings provided with agenda item 11. . . 2 . . . City Council Agenda -06/26/00 11. Consideration of a Conditional Use Permi allow in Auto Sales in a B-3 Zonin District. Applicant: Dunlo Motors. (NAC) A. REFERENCE AND BACKGROUN Dunlo Motors is requesting a Conditional Us Permit to operate an automobile sales facility on the property formerly occupied by Wendy' along Oakwood Drive. The existing building, currently vacant, consists of approximately ,950 square feet in area. The applicant indicates that they intend to retrofit the existing buildi. g for sales and service, maintaining the parking lot for customer parking and vehicle display The Zoning Ordinance lists a number of con itions attached to the consideration of auto sales in the B-3 District. All of the listed conditions would be complied with by the proposed use, pending discussions between property owner on landscaping design. The primary issue is with the building size requirement. The ordinance states a minimum sales and display office size for such uses of 4,500 square feet, exclusive offl or space devoted to mechanical repair. If the City Council approves the zoning text amendmen , this question becomes moot. The applicant has indicated that he will not move to the site i he has to expand the building to 4,500 sq. ft., therefore City Council need not address this equest if the associated ordinance amendment is not adopted. B. AL TERNATIVE ACTIONS 1. Motion to adopt recommendation b the Planning Commission to approve the CUP with conditions as noted in Exhibit . This alternative assumes that the Cit Council changed the ordinance. 2. Motion to recommend denial of the CUP, based on a findings that the use does not conform to the requirements of the Ordinance in regard to building size. 3. Motion to table action on the CUP, p nding additional information. C. STAff RECOMMENDATION Staff recommends approval if the City Coun 'il has amended the previous ordinance. D. SUPPORTING DATA Exhibit A - Conditions of Approval on Site Ian Planning Commission Minutes. Aerial photo. -1- i . DUNLO MOTORS INC Fax:6125333572 Jun 2 2000 8:57 P.Ol E -,( ~ ~ ~ ,. t A. ~ - - tte/}5P~ l'..{' Pe '!IiCO';' - . --/ . I f? 780 C #1 $0"'..1-., ~. Bo....."dar). QU~ U AREA ....; ;'" " r t' " ; ( ~ ~1;"11VV'llf"ji1; Olil~NT EJ lW&l!PlC! fl)~S?LAY I I I ~~C' · \,;..alu...fttr~ 4t.""i2J,r.A:'il"4. ~I(' ~4.. "'tt", H G;;..tST', ~ C, ~ Q,JB ~- 00-. o . .. .. "'" ^ A ... .... .. "" 11IIII n....... ~ .. ... ....ra.. .. ... .. .. #I....-"....J'II-.I ft...".....""tfIII.,.. ~ ~ " .. .. ... ... ~... 'n,h.',_, . .. DUNLO MOVORS MONTICELLO ->: -s -~ ~ OJ!EI GF&I\I ,/Jt2 '. . S' ~ SPACii I <..;.. ........' \'~ I f:... ; .~. . ..,..... ,. ;: 'j,~ .\.' :,' ,_c j ... I ~ Fl.Al.l ,CV.II~^-+ 'Viz..C " r ), l t.:;( I. 11 ~ {XiC<' I ru e red-,..tik.d I b\j.:~ 01'11'0 (""oI.l6~ I to l\o....v .... 1: #,ic .,r-,Oll. t... .... l'S i 'bvl SO. .. .. 5..' " , ' .. .. I. - ~. \~) ,...... ~ -, , . :..-.'" / ~C...-- ,~, · ~T1NG MH,,, AIiCESSEO <:AN OQWNUOHT ~ DI&nNG MH"e WAU.PAQ< FliMOUNTlOO TO 'NUT $ICli SiNaI...! MH1000. Z61"T r.tH ~ 1WIN M111000 - OM FT "'11 _ _1IM_~rss.!!!'~~~.~NllWITII_"'" - -~&~~:- I o 110 ~ ~\1blt A .smt?J{~ SCALE 100 . . . 5. Planning Commission Minutes - 5/2/00 Public Hearina - Consideration of a Condi ional Use Permit for Auto Sales and a variance to the minimum buildin size re uirements D r auto sales or an amendment to the minimum buildin size re uirements in a B-3 Zonin District. A licant: Dunlo Motors. Steve Grittman, City Planner, provided the staff report regarding the applicant's request for a Conditional Use Permit to operate an auto obile sales facility on the property formerly occupied by Wendy's along Oakwood Dri e. The existing building, currently vacant, consists of approximately 2,950 square fee in area. The applicant indicates that they intend to retrofit the existing building for sales, m intaining the parking lot for customer parking and vehicle display. The Zoning Ordinance lists a number of co ditions attached to the consideration of auto sales in the B-3 District. Almost all of the isted conditions would be complied with by the proposed use, with some discussion about I ndscaping and the parking and curbing along the west boundary. The primary issue is with t e building size requirement. The applicant would also add additional lighting and add ess the landscaping. Dunlo is looking at a display area to the west of the site and has i dicated they would like to defer final improvements of that boundary as they are orking with Peterson Ford on this issue. The applicant is pursuing a variance to this equirement, or the City's approval of an amendment to the Zoning Ordinance to 10 er the building size requirement to accommodate the proposed use. The applicant argues tha the access to the property resulting from the changes to the Highway 25/Interstate 94 int rchange area have made other uses, including the fast food restaurant use, no longer viabl . The alternative option requested by the app icant is an amendment reducing the floor area for auto sales facilities. Auto sales uses ca have a tendency to maximize paved open sales area, and minimize building area. The 4,50 square foot threshold in the ordinance is designed to encourage a greater proportion l' site utilization by building as opposed to open sales lot. In most cases, building size is dir ctly related to employment and property value. These are issues on which the City has focu ed its economic development activities in the past. Reducing the building size would app y throughout the B-3 District, and would tend to limit both employment and building valuati n. Chair Frie opened the Public Hearing. Roger Zahn, Attorney representing Oxboro evelopment, states the developers agreement with the project the applicant has applied fo . Oxboro is a partnership who has been selling off it's properties slowly over the pasts year, this particular site being one of them. The previous Wendy's was a tenant ofOxboro evelopment. He also stated that Wendy's had contacted them to locate back in Monticello at their previous site and negotiated with them, but with the access to the location the way it is they did not proceed with the purchase. He states that they have tried to get another fast food chain into this building to no avail. Mr. Zahn believes that there is reasonable hards ip in that this building cannot be used as its intended use as a fast food restaurant due to he access to this building. Andrew Duncanson, President of Dunlo Mo ors, gave a brief description of his business -2- Ii Planning Commission Minutes - 5/2/00 which has been in business for 16 years. e clarified that they are a sales company only, no servicing of autos, therefore the size of this building is suitable. He states they plan to do everything to make the site attractive, espe ially the south side. He would like to work with Dave Peterson Ford, but would comply on. is own ifneed be. Mr. Duncanson stated Dunlo Motores would generate approx $25,000 p r month in taxes. . Allan Wright, Realestate Broker from St. Cloud representing Oxboro Development stated the difficulty with putting in a fast food res aurant was the access problem. Molly Peterson, co-owner of Playhouse Ch Idcare Center and one of the owners of the adjacent properties, stated some of the con ems they have if a variance is granted. She states that there are a great number of fast fi od and auto sales facilities but they are the only licensed childcare center. She also remind d the commission of the concerns they had previously brought to their attention when t e Ford expansion occurred. She states they are surrounded on three sides now with auto de lers and if this variance is granted they will be surrounded on all four sides. They have co cerns with people walking around looking at the cars and the uneasy feelings they have bein a childcare provider with this increase in traffic. She states that the City would be creating a hardship for them if this variance is granted. She provided a letter stating concerns from pare ts if this variance is granted. Chair Frie addressed Ms. Peterson asking about the ho rs, which she stated are 6 a.m. to 6 p.m. and that there is a possibility for extended hours. C air Frie also asked about the Playhouse staff parking in the Wendy's site now and she st ted that it is their assumption that parcel is actually part of the Childcare Center prope y. Diane Mandel, co-owner of the Playhouse hildcare Center, addressed the Planning Commission sharing a letter stating conce s from a parent regarding health, safety and increasing pedestrian and vehicle traffic. S e stated they felt the children would be more susceptible for incidents to occur and does ot feel this is conducive to the Childcare site. Ms. Mandel stated they feel the City has a r sponsibility to these children. She also provided pictures of the current conditions ith the expansion of the Ford Auto. . Chair Frie closed the public hearing. Jeff O'Neill, Deputy City Administrator, pr vided an update on the Ford dealership stating that Ford did not go through the proper pro ess for their CUP, stating staff had asked Ford to revise their site plan before approval and un ortunately they did not get their revised site plan to the Planning Commission prior to th.s meeting. O'Neill state there are curbing and landscaping issues and that perhaps staff wi I request fencing. Chair Frie asked Molly Peterson if Steve Jo nson, Monticello Ford, had gotten together with the Playhouse Childcare Center to address t e previous issues with them and she stated he has had no contact with them. Robbie Smith asked about Ford using that s.te without a CUP and O'Neill stated that this is an issue and that when they requested a revi ed site plan it did not arrive until this week. Smith also stated that if DunIo Motors deci es to put a 4,500 sq. ft. building on that site they would be in compliance with City ordinanc , and Ms. Peterson stated that if that was the . -. --'- I I Planning Commission Minutes - 5/2/00 case they would deal with it, but it would e better that than the City granting a variance to them without the dealer demonstrating a h rdship in meeting the ordinance. Smith also stated he still is not happy with the Autom x issue or the Monticello Ford issue with their noncompliance with the City's conditions laced on them. . Rod Dragsten addressed the safety issue th t Playhouse is concerned with, noting that being in a B-3 zone there could be any type ofb siness that would create the same type of pedestrian/vehicle traffic. Dragsten also a ked if the City ordinance stated the number of cars allowed and Steve Grittman stated it d es not but the City could limit the number via a condition of a CUP. Popilek had questions on setbacks being to the west only and Grittman stated it appears there needs to be an additional strip of Ian scaping to the south. The display area did meet the required setbacks. It was also stated th t there would be access from the Playhouse to the car lot but that it would be buffered an suggested that the same condition would be placed on the south. The outdoor play are on the south side is strictly secluded to the back and is in use for at least 6 hours of the day. Ms. Peterson stated they would need landscaping along the north as well, which would be Dunlo' s south. The Planning Commission asked Dunlo M tors if the 4,500 sq. ft. condition is a viable option and they stated it is not. The comm ssioners asked Grittman if 4,500 sq. ft. requirement is consistent with other comm nities and he stated that it is a bit unusual, most of the ordinances require a minimum com ercial building size of 1,000 to 2,000 sq. ft., although some require additional square fo tage for auto service but not as large as 4,500 sq. ft. . Decision 1: Conditional Use Permit for uto Sales in a B-3 District ROD DRAGSTEN MOVED TO APPR VE THE CONDITIONAL USE PERMIT WITH CONDITIONS LISTED BELO , BASED ON FINDINGS THAT WITH LANDSCAPING, APPROPRIATE CU BING, AND OTHER CHANGES, THE SITE IS SUITED TO THE PROPOSED USE: Conditions: 1. Retain landscaped island north ofth building. 2. Install five foot wide landscaped gre n space along west and south boundary lines, in accordance with the Zoning Ordina ce requirements for parking areas and as approved by City staff. 3. Install continuous concrete curbing long the west side protecting the landscaping from the parking area. 4. Total refinishing/re-paving of the en ire parking lot. 5. Fencing installed on south side to bu fer "The Playhouse" from auto dealer on left side with a 6 foot fence as approved by City staff. 6. Compliance with 4,500 sq. ft. buiIdin regulation or adoption of/modification of an amendment to the Zoning Ordinanc reducing the building size. . DICK FRIE SECONDED THE MOTIO . MOTION CARRIED 3 TO 2 WITH -4 II ROBBIE SMITH AND ROY POPILEK VOTING IN OPPOSITION. Planning Commission Minutes - 5/2/00 Decision 2: Variance to Building Size fo Auto Sales in a B-3 District . ROBBIE SMITH MOVED TO DENY THE VARIANCE BASED ON A FINDING THA T THERE IS NO PHYSICAL HA DSHIP IN COMPLYING WITH THE ZONING ST ANDARDSFOR THE PR POSED USE. ROY POPILEK SECONDED THE MOTION. Motion carried 4 to 1 ith Rod Dragsten voting in opposition. Decision 3: Amendment to the Zoning 0 dinance Reducing the Building Size ROBBIE SMITH MOVED TO DENY A ENDMENT TO THE ZONING ORDINANCE REGARDING REQUI D BUILDING SIZE. THERE WAS NO SECOND TO THE MOTION. Motion id not prevail. RICHARD CARLSON MOVED TO TA LE ACTION ON THE AMENDMENT, PENDING ADDITIONAL INFORMA TON, NAMELY RESEARCHING EXISTING ORDINANCE AS IT RELATES TO BU LDING SIZE. ROD DRAGSTEN SECONDED THE MOTION. Motion c rried 4 to 1 with Robbie Smith voting in opposition. . . -5- II . . . Planning Commission Minutes - 6-6-00 6. Consideration of an amendment to the Con itional Use Permit conditions for Auto Sales in a B-3 District issued to Dunlo Motors. licant: Dunlo Motors. Steve Grittman provided the staff report re arding the Dunlo Motors request for an amendment to their approved Conditional se Permit to allow a reduction in the size of the existing landscaped island north of the xisting building and replacement of the required fence along the south boundary wi h a landscaped median. The original plan submission had proposed eliminating the n rth island altogether, replacing it with sales lot space. The staff report had recommend d retaining the island, a recommendation included in the CUP approval. With regard to the south boundary, concerns raised by the neighboring child care facility resulted in a ecommendation that a fence be installed. The applicant's wish is to replace the fence with a landscaped median to allow more efficient use of the parking and sales area. The island is currently in place, and is the p imary green space on the parcel together with the required perimeter landscaping. Any ch nge would reduce green area and affect traffic flow, although traffic is likely to be uch less of a concern for auto sales than it was for a fast food restaurant. The south boundary would increase landscaped green area, and would likely improve aesthetics in the ea. The child care operators had expressed concern with the condition of property adja ent to them. Chair Frie opened the public hearing. Andr w Duncanson, Dunlo Motors, addressed the commission noting his conversation with Je f O'Neill, Deputy City Admin, in that the need for a fence was not necessary and too ostly, stating Mr. O'Neill was in agreement on this item. This area was originally an egr ss lane and they are asking to modify. The public hearing was closed. There was iscussion regarding cutting down the green space but noting that the fence was an issue ith the childcare center area next door in regard to safety issues. Duncanson noted he did attempt on several occasions to call Ms. Peterson from the childcare center to discus this but was unable to reach her. The Playhouse stated the issue was more about t e fence protecting people from getting into the Childcare area. Ms. Mandel, Playhouse hildcare, was under the impression that it would be a privacy fence. Grittman stated e island should be reduced only enough for cars to get around it. The Planning Commis ion addressed Dave Peterson, Peterson Ford, concerning the 30 ft strip that Peterson own , who stated he has no intention of developing it, building on it or parking on it. Chair Frie advised that Peterson Ford would .., -J- \ \ Planning Commission Minutes - 6-6-00 . be liable for any instances that might occur on this 30 ft. strip of land. It was also discussed that a buffer to this area would n t buffer the childcare center from Peterson Ford. A MOTION WAS MADE BY ROBBIE S ITH TO RECOMMEND APPROY AL OF THE CUP AMENDMENT (a) REDUCIN THE SIZE OF THE EXISTING ISLAND JUST ENOUGH TO ALLOW TRAFFIC 0 CIRCULATE THROUGH THE AREA; (b) REQUIRING THE FENCE ALONG T E SOUTH BOUNDARY TO BE DETERMINED IN AGREEMENT WITH HE CITY, PETERSON FORD, DUNLO MOTORS AND THE PLAYHOUSE CHI DCARE CENTER. ROY POPILEK SECONDED THE MOTION. Motion carr ed. . . -4- 1\ !l1/qU/ $o~ P t((lelut:tl'Ov'l '-/1 6,...eA ~ f~l.( ~, "S v.. ... + el1'ouF. 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G I ,~,)\", Economic Develo ment Update by Ollie Koropc ak, Director June 22, 2000 Mayor's Bus Tour and Golf Outing - Held on June 14, approximately 35 individuals joined the Mayor on the bus tour which promoted available c mmercial and industrial sites for development with an emphasis on the southwest corridor. 25 in ividuals golfed in the Chamber sponsored golf outing. Guests received a City of Monticello mono rammed golf towel and golf tees. Guests appeared most interest in the potential of the city 0 . ng an industrial site and again questioned the probability of an interchange at County 39 W d 1-94. The City of Monticello's Community Profile updat is complete and available to businesses and individuals. All businesses and individuals who pr vided info were mailed a thank you and a copy of the profile. Additional data such as a repo on wage and jobs, TIP and GMEF Assistance Analysis, and annual gross retail sales 0 Monticello and Elk River were compiled. New marketing maps identifying industrial and co ercial sites were drafted by WSB, Inc. Information will be distributed to Council members. Amoco site - Brad JohnsonIBarry Pluth will present a conceptual plan for the Amoco site+ area at the July HRA meeting. Additionally, Dan Frie and effO'Neill were requested to work on the scattered housing program relative to its purpose/o "ective and funding. New prospects - Machine shop - 25,000-30,000 sq precast bldg, 4-5 acres, current 40 jobs addition of 6-1 0 more. Meeting June 23. Machine tool shop - 4,000 sq ft, 5 new jobs in 2 ye Production of packaging materials - 50,000 sq ft bui ding, 2001-2002 construction. Production of windows - 100,000 sq ft building Finally closed on the City and EDA loans for Twin ity Die Castings on June 8. The first draw of $174,000 from the State has been disbursed to TCD and the second draw of $294,000 has been requested. EDA $100,000 was disbursed June 8. P yback ofIoans begin July 1,2000.