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City Council Minutes 11-13-1990MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Tuesday, November 13, 1990 - 7:00 p.m. Members Present: Ken Maus, Fran Fair, Shirley Anderson, Dan Blonigen Members Absent: Warren Smith 2A. Approval of minutes. After discussion, motion was made by Dan Blonigen and seconded by Fran Fair to approve the minutes of the regular meeting held October 22, 1990. Motion carried unanimously. Motion was made by Dan Blonigen, seconded by Fran Fair, to approve the minutes of the special meeting held September 17 and continued to September 18, 1990. Voting in favor: Dan Blonigen, Fran Fair, Warren Smith, Ken Maus. Shirley Anderson abstained, as she was not able to attend the meeting. 3A. Citizens comments/petitions, requests, and complaints. Councilmember Anderson requested that staff look into development of an ordinance prohibiting trapping of wild animals in the city limits. Anderson went on to explain that a dog owned by a city resident had recently been caught in a trap set within the city limits along the Mississippi River. 1. Public hearing for assessment and adoption of assessment roll for sidewalk repair and replacement, Project 90SW-1. Mayor Maus opened the public hearing. John Simola reviewed the proposed assessment roll which called for assessing $7,174.80, which is proposed to be assessed to 24 benefiting properties. Simola also noted that there are some sidewalks that are still in need of repairs and it may not be possible now for some of those property owners to have their sidewalks repaired or removed this late in the season. A strategy for addressing the hazardous sidewalks that have not been removed should be developed. Ben Smith requested information regarding payment of the assessment. Rick Wolfsteller informed Mr. Smith that no interest will accrue if the assessment is paid within 30 days. At this point in the meeting, the public hearing was closed. Page 1 Council Minutes - 11/13/90 Motion was made by Fran Fair and seconded by Shirley Anderson to adopt a resolution adopting the assessment roll along with the credits to property owners as outlined by staff and not extend the time for sidewalk removal and instruct the public works department to obtain bids for removal of those sidewalks that are hazardous and remain unrepaired to be removed at the earliest date possible and so notify those property owners as outlined by city ordinance. Motion carried unanimously. SEE RESOLUTION 90-50. 2. Consideration of resolution adopting assessment roll - Seventh Street Improvement Project 90-02. Ken Maus opened the public hearing and noted that the assessment roll was well explained in the staff supplemental data. He went on to ask for questions and comments from the public regarding the proposed assessment roll. Debbie Kramer, representing Marvin Kramer, had questions regarding the terms of the slope easement that her father granted the City. Specifically, she had questions regarding the re-establishment of the driveway. She noted that the slope seemed quite extreme, and the resurfacing material did not meet expectations. In addition, she asked why the culvert was not replaced. Finally, she noted that a few trees had not been replaced. John Simola responded by saying that the City paid Kramer $200 for one of the trees that had to be removed with the project. The remaining trees impacted by the project were relocated to another portion of the property. The Kramer driveway was resurfaced with crushed rock and was actually improved with this project. The City could look at grading a more gradual slope if Kramer would provide additional easement area. In terms of the culvert that was not reinstated, the design of the storm drainage system did account for the modification to the driveway, and the structures installed will eliminate potential erosion and properly channel storm water run-off. Tom Brennan requested detailed explanation of the formula for deferral of the assessments against his property. Rick Wolfsteller informed Brennan that the payment of the assessment shall be deferred for a period of eight years or until the property is subdivided, platted, or utilizes sanitary sewer or water main improvements, whichever occurs first. When the deferral period ends, the original principal assessment shall be adjusted to coincide with the increases of the St. Paul/Minneapolis Construction Cost Index that occurred during the deferrment period. The adjustment shall be payable Page 2 Council Minutes - 11/13/90 in equal annual installments over a period of ten years, but in no case shall the last installment be later than 15 years after the levy of the original assessment. To each subsequent installment when due shall be added interest of 8.125% per annum on all unpaid assessments. Assistant Administrator O'Neill noted that this deferral applies to the storm water, sanitary sewer, and water main assessments and does not apply to the street assessment. O'Neill noted that the deferral did not apply to the street assessment because this property area benefited owned by Brennan that is improved through installation of the street does now possess a full complement of city services. The property that is receiving the deferral is not developable at this point because it has no improved street access. Debbie Kramer commented that it is her view that the assessment amount against the Kramer property exceeds the value added to the property by the improvement; therefore, she objected to the assessment in general. Mayor Maus closed the public hearing. Ken Maus noted that the decision to defer the Kramer/Brennan assessments associated with extending utilities from Minnesota Street to the freeway is contemplated for the following reasons: tax increment financing is available to finance the portion of the assessment to be deferred; the extension of sewer, water, and storm sewer facilities affecting Brennan and Kramer was completed in the long-term interest of the City; the short- term benefit to Kramer and Brennan is minimized because no street access is provided to the property benefiting from the sewer, water, and storm sewer improvements; the deferral includes terms that result in Kramer/Brennan paying the actual cost of water, sanitary sewer, and storm sewer improvements at such time that said improvements are actually utilized. After discussion, motion was made by Fran Fair, seconded by Dan Blonigen, to adopt the assessment roll as proposed. Motion carried unanimously. SEE RESOLUTION 90-51. 3. Update and review of assessor contract --Peggy Stencel. Peggy Stencel reported that all residential values will increase this year by 2%. She also noted that the sales ratio study she completed reveals that on the average the market value assessment for each residential property is at 91% of the average sale amount. She went on to state that the value of the new construction completed in Monticello in 1990 will be available by December 31, 1990. Page 3 Council Minutes - 11/13/90 It was the consensus of Council to continue with the present program utilizing Peggy Stencel's services. No action taken. 4. Consideration of simple subdivision request to subdivide an existing unplatted tract of residential land .into two unplatted tracts of residential land. Applicant, Robert and Betty Krautbauer. Assistant Administrator O'Neill described the proposal to subdivide the Krautbauer property into two unplatted tracts of residential land for the purpose of creating land necessary to develop a church facility. O'Neill noted that the Planning Commission had recommended approval of the subdivision subject to four conditions. Robert Krautbauer objected to the condition that he provide an easement through his remaining property that the church could use in connecting a private sewer line to the city lift station. After discussion, it was concluded that the private sewer line would be able to connect to the city lift station from a different direction without eliminating the possibility of future use of the lift station site as a residential lot. Motion was then made by Fran Fair, seconded by Shirley Anderson, to approve the simple subdivision request to subdivide an existing unplatted tract of residential land into two unplatted tracts of residential land with the following conditions: a. Within 30 days of the November 13 City Council meeting (on or before December 13, 1990), the following must occur: 1. A 12 -foot drainage and utility easement must be drafted and recorded around the outside perimeter of the 7 -acre portion to be subdivided. 2. There is no sewer service stub into this property off of East County Road 39, and the City is not responsible for the installation of sewer service to this property. 3. An agreement including Krautbauers, A Glorious Church, and the City must be established which Page 4 outlines the formula proceeds to finance against the original Motion carried unanimously. Council Minutes - 11/13/90 and method for use of the sale payment of assessment debt parcel. 5. Consideration of a conditional use permit which would allow operation of a church facility in an R-1 (single family residential) zone. Applicant, A Glorious Church. Assistant Administrator O'Neill informed Council that the Planning Commission has recommended approval of the conditional use permit subject to the following conditions: 1. Planning Commission review and approval of parking lot, landscaping, and screening plan; adequate screening of parking lot area from abutting residential uses; and landscaping must be provided. The screen must be at least six feet high and achieve 90% opacity. The screen may consist of either berm, solid fence, or landscape planting. Installation of the parking lot screen shall occur at such time that the adjoining residential property is eligible for issuance of a building permit. 2. City approval of drainage plan. 3. Planning Commission review and approval of landscaping plan. 4. Planning Commission review and approval of exterior treatment of structure to ensure compatibility with neighborhood. Steel exterior material shall be limited to one-half of the available wall surface unless otherwise approved by the Planning Commission. After discussion, motion was made by Fran Fair, seconded by Shirley Anderson, to approve the conditional use permit along with conditions noted based on the finding that church development as proposed with the conditions as attached is consistent with the comprehensive plan and is compatible with the existing and future character of the adjoining R-1 zone. Motion carried unanimously. Page 5 Council Minutes - 11/13/90 6. Consideration of preliminary plat request to replat portions of the Sandberg East residential subdivision. Applicant, John Sandberg. Assistant Administrator O'Neill reported that the proposed replat creates three outlots and 22 platted lots. All of the platted lots meet minimum requirements in terms of size and lot dimension; however, of the 22 platted lots created, 9 do not have immediate access to street frontage as required by ordinance. Instead of providing a bona fide usable street access, the plan provides for an adjoining outlot which someday will become one-half of a future street right-of-way. The other half will be supplied by the adjacent landowner in conjunction with further development of the area. John Sandberg noted that the adjoining property owner, Rod Norell, is in agreement with the planning arrangement as proposed. He also added that the Planning Commission supported the plat configuration so long as there is a method by which future property owners could be made aware that the lots platted without access to a public street are not buildable. Sandberg noted that the City Attorney has stated that restrictive covenants against each property that is unbuildable would absolve the City of any liability associated with these properties. It was his view that this information would diminish Planning Commission hesitancy to approve the preliminary plat. Sandberg also noted that the plat as proposed will serve to establish a pattern for future development that the adjoining property owner can follow. John Sandberg also informed Council that it was his intent to keep the lots that do not have access to public street for an indefinite period. He plans on developing them at such time that the adjoining property owner is ready to develop. Ken Maus noted that after discussing this item with John Sandberg, he feels more confident in the proposal to grant the variance and allow the subdivision to occur as proposed. A motion was then made by Fran Fair, seconded by Dan Blonigen, to grant approval to the preliminary replat of the Sandberg East subdivision and grant the variance to section 11-5-2 of the subdivision ordinance requiring that every lot must have a minimum frontage as required in the zoning ordinance on a City -approved street other than an alley. The variance is granted based on the finding that due to annexation and City extension of sewer and water, it became necessary to replat the property in order to achieve its best use. Due to the Page 6 Council Minutes - 11/13/90 dimension of the property, it is not possible to plat the site for its best present and future use without a variance to the street access requirement. Approval of the final plat is subject to the following conditions: a. Restrictive covenants shall be recorded outlining construction and building restrictions associated with Lot 3, Block 1; Lots 10-16, Block 2; and Lot 3, Block 3. b. Restrictive covenents shall be recorded against Outlots A and B which preserve both for use as street right-of-way in conjunction with future development of property now owned by Norell. C. Developers shall submit a complete grading and drainage plan. Plan shall include potential home locations. Plan shall be approved by the City Engineer prior to final plat approval. Motion carried unanimously. 7. Consideration of an ordinance amendment allowing a public sign in the form of a decorative banner to be displayed on public property. Assistant Administrator O'Neill reviewed the proposed amendment to the zoning ordinance which would allow banners that meet a public purpose criteria to be placed on City right-of-way for a period of one year with an annual review thereafter. Fran Fair recommended that the ordinance be slightly modified to allow banners to be hung from public buildings such as the senior citizen center, fire hall, hospital, and other City structures. It was her view that the placement of banners need not be limited to the thoroughfare areas. Dan Blonigen stated that he did not like the appearance of banners hung at tight intervals. He mentioned that the banners hung in the city of New Ulm do not look appealing. Fran Fair disagreed and thought the banners would beautify the community. Ken Maus noted that he likes the community atmosphere that the banners would create, and he also thinks that it is wise to require an annual review of the banner design and placement as provided for in the proposed ordinance. Page 7 M go Council Minutes - 11/13/90 Motion was made by Fran Fair, seconded by Ken Maus, to amend the sign section of the zoning ordinance as proposed. Dan Blonigen again stated that he is just not comfortable with placement of banners as proposed. He just doesn't want the banners. Voting in favor of the motion: Ken Maus, Fran Fair. Opposed: Shirley Anderson, Dan Blonigen. Ken Maus asked that the staff determine the method by which this ordinance amendment could be reconsidered and act accordingly to bring the matter back before the full Council. Consideration of liquor store financial report for the nine months ended September 30, 1990. Administrator Wolfsteller reported that based on the first nine months of operation, it appears that the liquor store will again show an increase in sales and net operating income at the end of the year. Typically, the fourth quarter is usually our best quarter, and it is anticipated that the operating income for the store will exceed $100,000 again. No action is necessary by the Council other than review and acceptance of the report as presented. Council reviewed and accepted the report. Consideration of replacement of Automatic Control Center at the Wastewater Treatment Plant. John Simola reviewed problems with the automatic control center at the wastewater treatment plant. Simola reviewed the history behind development of the existing control center and described the current problems. At this point, the control center cannot be depended on for providing effective control of the operation. Instead, at this time, operation at the wastewater treatment plant is being conducted by site, sound, and hand operation. Simola noted that this method of operating the treatment plant is not acceptable and that Council should consider authorizing City staff, PSG, and the City Engineer to work together to obtain proposals for a new control center to be retrofitted into the main control panel at the plant at the earliest possible date. Expected cost could range from an initial step of $15,000 to $45,000. Page 8 Council Minutes - 11/13/90 Mayor Maus noted that the City has little choice but to go ahead and obtain proposals for replacement of the main control center. After discussion, motion was made by Shirley Anderson, seconded by Dan Blonigen, to deem the current inoperability of the wastewater treatment plant control center as constituting an emergency situation and authorize City staff to obtain proposals for the replacement of the main control center, with those proposals to be reviewed at the November 26 meeting of the City Council or at a special Council meeting as needed. Motion carried unanimously. 10. Consideration of change order #1 for Project 90-04, Sandberg East utility improvements. John Simola reported that during installation of the water main on the west edge of the project on the Robert Krautbauer property, the groundwater table is higher than originally anticipated. Soil borings which were performed prior to the project presented at the specifications indicated that the groundwater was at or near the water main elevation. During an excavation, the contractor discovered the groundwater table to be at least 3-1/2 feet above the proposed pipe elevation which added to construction expenses. The contractor, Annandale Contracting, has requested a lump sum payment of $2,250 to cover his cost due to excessive dewatering. Simola went on to recommend that the City approve change order #1 for Project 90-04 as outlined. After discussion, motion was made by Fran Fair, seconded by Shirley Anderson, to approve change order #1 for Project 90-04 in the amount of $2,250 to cover the cost incurred by the contractor for excessive dewatering due to changed conditions at the site. Motion carried unanimously. 11. Consideration of final payment on Project 90-02, street and utility improvements for 7th Street and Minnesota Street. John Simola reported that R.L. Larson Excavating of St. Cloud has completed the work on 7th Street and Minnesota Street. The original contract amount for this project was $242,581. The total cost of the project, excluding change order #1, was $238,749, approximately $4,000 under estimated cost. By adding change #1, however, which included an addition of 8,782 sq ft of sidewalk, excavation of organic material or granular fill at Locust Street, and the sewer service Page 9 12. Council Minutes - 11/13/90 connection for K mart, the total cost of the project comes to $256,339. The contractor has already been paid $238,761; therefore, the final payment due is $17,578. Simola noted that it is the recommendation of the City Engineer and himself that the City Council authorize final payment to R.L. Larson Excavating of St. Cloud, Minnesota, in the amount of $17,578. City staff and City Engineer are well satisfied with the work performed by R.L. Larson Excavating and his subcontractors. After discussion, motion was made by Shirley Anderson, seconded by Dan Blonigen, to approve final payment as proposed. Motion carried unanimously. Consideration to amend Greater Monticello Enterprise Fund Guidelines. Ken Maus reviewed the proposed amendments to the Greater Monticello Enterprise Fund Guidelines and noted that the amendments were requested as a result of the decision to approve a loan application to the Monticello Theatre. 011ie Koropchak reported that the EDA desired to limit any amendments to the guidelines so as to allow flexibility in addressing future requests for loans. The EDA suggested that changes not be made to the guidelines in a manner that would limit future use of the funds for commercial use. Assistant Administrator O'Neill indicated that it was his understanding that the Council desired amendments to the policy that would reflect specific reasons why Council allowed GMEF funds to be used in conjunction with the theatre expansion. The loan for the theatre was approved only because it provided gap financing for a project that results in redevelopment of a blighted property. Removal of blight along with gap financing is to be established in the policy as a prerequisite for use of the fund for commercial development. After discussion, a motion was made by Fran Fair to amend the guidelines as submitted. Motion died for lack of a second. Dan Blonigen stated the work force and further action was remain unchanged. that this fund should be used to enlarge should be focused on job creation. No taken on this matter. The guidelines Page 10 Council Minutes - 11/13/90 13. Consideration of adoption of urbanization plan by joint resolution between the Town of Monticello and the City of Monticello. Ken Maus noted that City staff and Council have reviewed this document on many occasions. Council has indicated general support of the document in the past, and now it is time to consider formal adoption of the joint resolution. Motion was made by Dan Blonigen, seconded by Shirley Anderson, to adopt the urbanization plan by joint resolution between the Town of Monticello and the City of Monticello. Motion carried unanimously. SEE RESOLUTION 90-52. 14. Consideration of a petition for annexation of the West Kjellberq Mobile Home Park. 15. Council reviewed an annexation request submitted by Kent Kjellberq, owner and operator of Kjellberq West Mobile Home Park. Ken Maus noted that it is important that the City action on this matter be consistent with the urbanization plan recently adopted with the previous agenda item. Rick Wolfsteller stated that the City, along with the Township, needs assurances that if the property is annexed to the city that the sanitary sewer line connecting the mobile home park to the City's system be either installed or a financial guarantee must be in place that would result in hookup occurring within a short period of time. After discussion, a motion was made by Fran Fair, seconded by Shirley Anderson, to acknowledge the receipt of the petition and table any action at this time and forward the petition to the Township Board for their consideration and comments. Motion carried unanimously. Consideration of fund transfers for 1990. Administrator Wolfsteller reported that with the end of this year rapidly approaching, a few housekeeping items should be approved by Council concerning fund transfers to close out unneeded construction funds, bonds, and other transfers for the budget. Wolfsteller then outlined each transfer requested. After discussion, motion was made by Shirley Anderson, seconded by Dan Blonigen, to approve the transfers as recommended. Motion carried unanimously. Page 11 Council Minutes - 11/13/90 16. Consideration of setting a meeting for the purpose of establishing 1991 salary/wage policy for non-union personnel. Ken Maus recommended that a special meeting be established to set wage parameters. The meeting could be held right before the first meeting in December. After discussion, motion was made by Ken Maus, seconded by Fran Fair, to schedule a special meeting of the City Council to be conducted at 6:30 p.m., December 10, 1990. Motion carried unanimously. 17. Consideration of resolution authorizing execution of tax increment pledge agreements. Administrator Wolfsteller reported that as part of the recent tax increment bond sales approved for Tapper's, Inc., and Remmele Engineering, a pledge agreement between the City Council and the HRA is needed to allow for the tax increment revenue received annually to be transferred from the HRA to the department funds. Motion was made by Fran Fair, seconded by Shirley Anderson, to adopt the pledge agreement for the $305,000 G.O. tax increment bonds between the HRA and the City Council. Motion carried unanimously. SEE RESOLUTION 90-53. 18. Other matters. Brad Fyle and Clint Herbst were in attendance throughout the entire meeting. Mayor Maus welcomed Herbst and Fyle to the Council and informed them that City staff will be directed to prepare information that will assist them as they begin to serve on the City Council. As an agenda item at the next Council meeting, Council will be establishing a date for a special Council meeting at which time the City budget will be reviewed. There being no further discussion, the meeting was adjourned. Page 12 Je --b ' Ne i 11 Assistant Administrator Page 12