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City Council Minutes 11-12-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Tuesday, November 12, 1991 - 7:00 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Dan Blonigen Members Absent: None 2. Approval of minutes. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the minutes of the regular meeting held October 28, 1991. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Consideration of a request to rezone the easterly 9.7 acres of Auditors Subdivision, Lot 17, from B-3 (highway business) to a combination of PZM (performance zone mixed) and B-2 ( limited business). Applicant, Evangelical Covenant Church. Assistant Administrator O'Neill informed Council that the applicant for the rezoning requests that this item be postponed and considered at the next regular meeting of the City Council. Council then tabled the item. 5. Consideration of recommending approval of preliminar flat and final plat of the East View residential :subdivision. Applicant, Investors Together --Dean Hoglund and Ken Schwartz. Assistant Administrator O'Neill reviewed the East View plat proposal and informed Council that the preliminary plat of the subdivision has been recommended for approval by the Planning Commission, as the subdivision design meets the design requirements noted in the City's subdivision ordinance. O'Neill went on to note that the method for satisfying the park dedication requirement was the most controversial aspect of this plat when reviewed by the Planning Commission. O'Neill noted that the Planning Commission had concern about accepting the 2.8 -acre parcel of land between County Road 39 and the Mississippi River as park dedication because 1) the location of the park requires that neighborhood users cross a busy county road, 2 ) development of off-street parking will be difficult due to the low flood plain elevation of the proposed park land, and 3) the neighborhood needs may require Page 1 development of a standard park ballfields, etc. It will be of park at the site proposed. Council Minutes - 11/12/91 featuring playground equipment, impossible to develop this type In light of the problems above, the Planning Commission referred the matter to the Parks Commission. The Parks Commission reviewed the matter and was generally supportive of the concept of taking the land as park land; however, it was their view that the land should be under the domain of the Department of Natural Resources, and it should be the goal of the City to sell the land to the DNR and use the proceeds in payment of the cash requirement in lieu of dedication of land. After receiving the Parks Commission recommendation, the Planning Commission met again to discuss the topic. After considerable discussion, the Planning Commission recommended to the Council that Council approve the preliminary plat and accept Outlot B, not as a park dedication area but accept the outlot as land to be sold to the Department of Natural Resources. In addition to providing the land to the City for resale by the City, the developers must provide $3,500, or one-half the park dedication amount in the form of a letter of credit, to the City to be held for a period of 18 months during which time the City will negotiate with the DNR regarding the sale of the land. If the City is unable to sell the land, then the City can draw on the letter of credit. The recommendation proposes that the City and developers share the risk that the DNR will not buy the property for an amount equal to the park dedication fee. If the land is sold in excess of $7,000, then the City and the developer would split this amount. O'Neill noted that the developers support the Planning Commission's recommendation. Councilmember Blonigen didn't feel that the City would come close to getting $7,000 for the property; therefore, the City would not obtain the full $7,000 park dedication cash amount. He noted that the ordinance calls for the City obtaining usable land or money. This is not usable land, and the Planning Commission's recommendation will only give the City one-half of the money normally required with the plat. Ken Maus noted that people have tried to give the City swamp land for park land, but 2.8 acres of beautiful river front property is a long way from being swamp land. It's land that can be appreciated by the public, and the Planning Commission's recommendation is a reasonable compromise. Page 2 Council Minutes - 11/12/91 After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the preliminary and final plat of the East View residential subdivision subject to the following conditions: 1. County surveyor approval of the final plat. 2. Prior to placing City signatures on the final plat, the City must be provided a 100 -foot easement area across Outlot A for storm water drainage purposes as described in the preliminary plat. 3. In conjunction with final platting, the developer must prepare and record an access easement document affecting Lots 3 and 4. 4. Restrictive covenants must be recorded at the time of final platting. 5. Park Dedication Requirement. The City shall accept as park dedication a warranty deed to Outlot B along with a letter of credit in the amount of $3,500. The City shall make its best effort to sell Outlot B. In the event the selling price is less than $7,000, the City of Monticello will draw from the letter of credit an amount equal to one- half of the difference between the selling price of the land and the cash requirement of $7,000. In the event the selling price is equal to $7,000, the City shall return the $3,500 letter of credit to the developer. The City and developer shall evenly divide revenue obtained in the sale of Outlot B that exceeds $7,000. The City shall be solely responsible for determining the terms of sale of Outlot B. In the event the sale of Outlot B does not occur prior to expiration of the letter of credit, the City, at its discretion, may draw the full amount of the letter of credit or the City may request that the letter of credit be renewed. In the event the developer fails to renew the letter of credit as requested, the developer will be in default under its obligations, and the City shall be entitled to draw against said letter of credit for its entire stated amount. 6. Adjustments to final plat must be made as noted prior to City signatures. Page 3 Council Minutes - 11/12/91 In the motion, Fyle noted that under item #6, Outlot B is being accepted by the City in lieu of cash to be sold to another party and is not considered to be a land area dedicated for public use at this time. Voting in favor of the motion: Shirley Anderson, Brad Fyle, Ken Maus. Opposed: Dan Blonigen. Abstaining: Clint Herbst. 6. Consideration of a request to rezone a 7 -acre parcel described as Part of Lot 2, Section 18, Township 121, Range 24, Wright County, Minnesota, from AO (agricultural) zoning to R-1 single family) and R-2 (single and two-family) zoning. Applicants, Dean Hoglund and Ken Schwartz. O'Neill informed Council that the rezoning request proposes that four parcels earmarked for single family development as part of the East View subdivision be zoned for R-1 or single family uses. The zoning district designation is consistent with this type of land use and should, therefore, be approved. The balance of the property, or Outlot A, is proposed to be developed under the R-2 (single and two-family) designation, which allows for development of townhome units. The land area contained in Outlot A is large enough to allow for 24 individual housing units to be placed on the site. O'Neill noted that access to Outlot A will be provided by a single driveway access. An internal driveway system will be needed to develop and serve individual townhome units on the site. Maintenance of this internal driveway system will need to be done privately and will likely be controlled through a townhome association. At the time of development, Outlot A will need to be platted, at which time the City will require documentation that a townhome association is established along with documentation of proper access easements. O'Neill also noted that future development proposals at this site involving townhome development will be reviewed by the Planning Commission and City Council via the conditional use permit process. Ken Maus stated that the area is ideal for townhome development. He noted that there are very few townhome developments with a view of the river. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to recommend approval of the proposed rezoning request based on the finding that the proposal is consistent with the comprehensive plan, is consistent with the geography and character of the adjoining land, and the need Page 4 Council Minutes - 11/12/91 for the rezoning has been sufficiently demonstrated. Voting in favor of the motion: Shirley Anderson, Dan Blonigen, Brad Fyle, Ken Maus. Opposed: Brad Fyle. SEE ORDINANCE AMENDMENT NO. 215. 7. Consideration of approving Chamber Reimbursement Agreement for the Information Center improvements. Administrator Wolfsteller reported that the agreement as drafted should allow the Chamber the ability to reimburse the City for all of the improvement costs associated with upgrading the Information Center. The Chamber has agreed to be responsible for all of the improvement costs even if the Chamber chooses to relocate before the end of the 10 -year lease period. The City also has the right under this agreement to terminate the agreement after five years. This provision allows the City the opportunity to ask the Chamber to move if the City determines it has a better use for the property because of redevelopment or another public purpose. He noted that in all likelihood, there may not be any reason to terminate after five years, but it does give the City the option if necessary. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the Chamber Reimbursement Agreement for Information Center improvements. Motion carried unanimously. 8. Consideration of amending provisions within Cardinal Hills and Briar Oakes development agreements. Administrator Wolfsteller reported that because of last week's unexpected storm of the century, the construction of projects occurring with Cardinal Hills and Briar Oakes Estate developments have come to a halt. In both developments, sanitary sewer and water mains have been completed, but it does not appear feasible to continue construction of the bituminous paving within either development. The Cardinal Hills plat does have curb and gutter installed, and curbing was scheduled for last Friday but was terminated because of the snow storm. Wolfsteller reported that it was determined that the contractor could be responsible for additional costs associated with preparing the streets for paving next spring. This is their responsibility primarily because the project completion date was October 15, which means that the improvements actually should have been in place before the snow storm hit. The City is compelled to plow these streets Page 5 Council Minutes - 11/12/91 this winter because we allowed building permits to be issued, and it is likely that some of the homes will be occupied prior to completion of final paving. Wolfsteller went on to say that since it appears unlikely that the weather will allow any paving to be completed yet this fall, it seems reasonable to make an exception to our normal policy and allow occupancy to take place without the streets being completed. Actual paving may not be able to be completed until the end of May or early June next year. There could be as many as a dozen or more homes ready to be occupied by early next year. As long as the City is not responsible for any damage to the road base that may occur because of our plowing activities, City staff is comfortable with amending our development agreement. John Simola noted that the City met with the contractors and noted that we would do normal snowplowing but that's it. We will make our best efforts to keep the roads clear. He also noted that none of the utility structures or standpipes are sticking up above the road surface that could create a problem with snowplowing. Clint Herbst asked if we are setting a precedent by plowing the streets and allowing occupancy to occur prior to final completion of the streets. Shirley Anderson noted that this is certainly a unique situation created primarily by the snow storm. It was her view that the circumstances were a valid reason for varying from our City policy. Bret Weiss noted that in some cities, they actually wait a winter prior to placing bituminous surface over the road bed. This allows the roadbed to settle over the winter, which can ultimately lead to a firmer roadbed and a better, longer lasting roadway. Ken Maus noted that since other cities allow roads to be used prior to paving, it does not appear to be an exceedingly unusual situation and perhaps is an opportunity for the City to try something different. Furthermore, we certainly led the developers to believe that Monticello is willing to work with them in development of their residential developments. It was Ken's view that we should allow occupancy to take place, and the City should maintain the roadways through the winter. Page 6 Council Minutes - 11/12/91 After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to approve an amendment to the development agreements with Briar Oakes and Cardinal Hills developments allowing occupancy of homes issued building permits without the streets being completed. This amendment is subject to the following conditions: 1. Contractor shall be responsible for restoring the streets in the spring so that the curb and gutter and bituminous surface can be installed properly. 2. Any additional blading work for removal of contaminated material shall be at the contractor's expense. 3. The City expects that the prices as bid will be kept in place for the 1992 construction season. LaTour Construction Company understands that the warranty for the project does not begin for any portion of the individual projects until the entire project is accepted by the City. 4. LaTour Construction Company will lower any iron located on the gravel portion of the street as necessary to prevent damage during the winter snowplow season. 5. LaTour Construction Company will agree to cover the cost to repair possible damage to City equipment during snow clearing operations. 6. LaTour Construction Company shall have 48 hours to prepare any problems with the gravel streets. If the problem is not corrected in that time, the City reserves the right to repair the problem and bill LaTour for the cost. Motion carried unanimously. 9. Consideration of approving partial payment and accepting performance bond for fire hall painting contract --Lindberg & Associates. Administrator Wolfsteller informed Council that Lindberg & Associates did not complete the fire hall painting contract according to specifications, and Wolfsteller requested that Council consider accepting the work as it was performed or Page 7 Council Minutes - 11/12/91 require Lindberg to complete the project as specified, which would include removing all material on the east side and re -do the staining accordingly. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to approve a partial payment totaling $6,000, which is a $2,000 reduction from their contract, contingent on Lindberg providing a performance bond totaling an additional $2,800 to guarantee the east wall of the building is redone in the spring according to specifications if it needs to be redone at that time. Motion carried unanimously. 10. Consideration of bids for traffic signal at the intersection of CSAH 75, CSAH 39, and CR 118, and consideration of award. John Simola, Public Works Director, informed Council that the low bid has come in at $8,000 less than expected. This bid was submitted by Wright Electric in the amount of $60,950. It was John Simola's recommendation that the City award the bid to Wright Electric. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to award the CSAH 75, CSAR 39, and County Road 118 traffic signal Project No. 1991-4 to Wright Electric in the amount of $60,950. Motion carried unanimously. There being no further discussion, the meeting was adjourned. Jeff O'Neill Assistant Administrator omm