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City Council Minutes 11-25-1991MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, November 25, 1991 - 7:00 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Dan Blonigen Members Absent: None 2. Approval of minutes. Brad Fyle requested clarification to the conditions under which the City would amend the development agreement allowing occupancy of homes prior to the streets being completed. Following are the updated 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. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to approve the minutes of the meeting held November 12, 1991, with corrections made to item #8. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. Page 1 Council Minutes - 11/25/91 4. Public hearing on adoption of 1992 budget and consideration of a resolution setting the 1992 tax levy. Mayor Maus opened the public hearing on the 1992 budget and resulting tax levy. Glen Ertl, owner and operator of apartment units in the city, was present to discuss his concern that property taxes in the community are increasing faster than his ability to pay. He noted that apartment buildings are taxed at a very high rate. This comes at a time when vacancy rates are relatively high. He noted his concern that the cost to operate apartment buildings is becoming a losing proposition. Ken Maus thanked Earl for his comments and noted that the City's portion of the increase in the overall property tax is very small. Last year the City's increase was 4%, and the 1992 increase is proposed to be 1.5%. Maus also noted that the City portion of the total property tax bill is only 18% of the property tax. Maus went on to ask Earl if he intends on attending the budget hearings conducted by the school district and county to discuss his concerns over the property tax. Earl indicated that he will be attending those public hearings as well. At this point in the meeting, Ken Maus closed the public hearing. After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to adopt a resolution adopting the 1992 budget and setting the tax levy at the following sums for the respective purposes: REVENUE General $1,499,653 Library 29,236 OAA 30,625 HRA 13,075 Tree 27,375 Transportation 17,688 DEBT RETIREMENT Debt Service Fund 981,907 CAPITAL IMPROVEMENTS Capital Imp. Revolving 191,704 TOTAL TAX LEVY $2,791,263 Motion carried unanimously. Page 2 Council Minutes - 11/25/91 5. Consideration of a zoning ordinance amendment modifying the B-1 (neiqhborhood commercial) zoning district regulations by eliminating convenience store and laundromat uses as permitted uses and instead allowing said uses as conditional uses in the B-1 zone. Assistant Administrator O'Neill reviewed the history behind the development of the proposed ordinance amendment. He recalled that the Planning Commission had voted in October to recommend denial of the West Side Market's request to rezone the site from R-1 to B-1 zoning designation. The recommendation for denial was based on the finding that the rezoning would constitute spot zoning. In turn, on October 15, 1991, the City Council considered the rezoning request and developed an alternative which represents a compromise between the owner's desire to more freely use his land for commercial use and the desire of the local residents to limit the size of the operation. The idea, which is the basis of the proposed ordinance amendment, consists of amending the zoning ordinance by allowing convenience stores and laundromats to operate on a limited basis as a conditional use in the B-1 zone. O'Neill went on to describe the proposed ordinance amendment, which includes conditions under which a convenience store/laundromat could operate in a B-1 zone. O'Neill finished by saying that the amendment makes sense in that the B-1 zoning district as a neighborhood commercial zone and associated commercial activity is bound to create or result in conflicts between business and residential uses. The conditional use permit requirement for convenience store and laundromat uses as proposed serves to provide the City with the ability to manage and control such conflicts between residential and convenience store/laundromat uses. Council then discussed the proposed ordinance amendment. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to recommend approval of the zoning ordinance amendment including convenience stores and laundromat uses as conditional uses in the B-1 zone and adopt conditions as noted by the proposed ordinance with the inclusion of condition 13, which requires that only one gas dispenser is allowed per 400 sq ft of retail floor area, with total dispensers not to exceed four. Motion is based on the finding that allowing convenience stores to operate under the conditional use permit process in the B-1 zone can serve to protect the character of adjoining residential areas and thereby assist in maintaining residential property values. Voting in favor: Clint Herbst, Brad Fyle, Ken Maus, Shirley Anderson. Opposed: Dan Blonigen. SEE ORDINANCE AMENDMENT NO. 216. Page 3 Council Minutes - 11/25/91 6. Consideration of a request to rezone Lot 1, Block 4, River Terrace, also known as West Side Market, from R-1 (single family residential) zoning designation to B-1 (neighborhood business). Applicants, Tom Holthaus and Matt Holker. O'Neill noted that the City Council had tabled consideration of this rezoning request pending potential development of a conditional use permit allowing convenience stores and laundromats to operate as conditional uses in the B-1 zone. Now that consideration of this matter is complete, Council can now consider the matter of the actual rezoning of the West Side Market site. O'Neill went on to note that just because the Council provided for allowing convenience stores to operate as a conditional use in the B-1 zone, this does not mean that Council must automatically approve the West side Market rezoning request. Ken Maus stated that it was his view that the rezoning did make some sense. It was his hope that the conditional use permit placed enough restrictions on the property to allow the neighborhood to feel comfortable with the commercial operation and at the same time provide the property owners with the flexibility to maintain a high-grade business. Council discussed the matter at length. Candy Johnson spoke against the rezoning request. She noted that the Planning Commission had turned it down twice, the applicants knew the limitations of the property, the rezoning could be a foot in the door for other commercial rezoning requests, and the rezoning is not consistent with the surrounding neighborhood, as the business is met to draw people from a larger area. Johnson suggested that there is no demonstrated need for the rezoning, as there are 400 customers today, and the store can operate successfully without expansion. Assistant Administrator O'Neill noted that the City Council cannot legally base a rezoning decision on whether or not the applicants knew the limitations of the property, nor can it make a decision based on a fear that the rezoning would be a foot in the door for other rezoning requests. These are not valid criteria. The other reasons for denying rezoning as noted by Johnson are based on valid criteria when considering a rezoning request. Clint Herbst noted that he's concerned about the close proximity of the driveway access to the intersection of Otter Creek Road and Highway 75. It was his view that it is the responsibility of the property owner to correct this situation and that the City should not have to resort to development of a conditional use permit process that would provide leverage Page 4 Council Minutes - 11/25/91 to get the developer to move the access point as a condition of any expansion to the site. The owners of the West Side Market should move this access point on their own accord. Shirley Anderson noted she is torn on this issue, but she has to be more concerned for the homeowners. It was her opinion that the residential property neighboring the convenience store could be diminished by the store's expansion. This is one of the primary factors in considering a rezoning request. After discussion, a motion was made by Dan Blonigen to approve the request to rezone the West Side Market property from the R-1 zone to the B-1 zone. Motion died for lack of a second. A motion was made by Clint Herbst and seconded by Brad Fyle to deny the proposed rezoning request based on the finding that the original zoning map was correct in establishing an R-1 zoning designation at the site, rezoning the site to B-1 would amount to spot zoning, the geography and character of the adjoining area is residential in nature, and the presence of commercial activity and associated traffic at this location will tend to depreciate adjoining residential land values. Voting in favor: Ken Maus, Shirley Anderson, Brad Fyle, Clint Herbst. Opposed: Dan Blonigen. 7. 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 reported that at the October meeting of the Planning Commission, the Evangelical Covenant Church requested that the City rezone a 9.7 -acre parcel of land located at the northwest quadrant of the intersection of County Road 118 and Chelsea Road. The church requested that the site be rezoned from B-3 (highway commercial) to PZM (performance zone mixed). The Planning Commission held a public hearing on the matter and made the recommendation that the rezoning request be denied. The denial was based on the finding that although the proposed site would be an excellent location for a church, the need for the rezoning was not demonstrated, as there are other areas nearby where a church could be developed in accordance with the present zoning map. In addition, the commercial uses displaced by the church use could not be relocated without encroaching on residential areas. O'Neill reported that this rezoning request never went before the City Council because the church withdrew their request after Planning Commission denial. O'Neill went on to report that in response to the Planning Commission's decision, the church withdrew the original request and submitted a new modified rezoning request. The new proposal calls for subdividing the 9.7 -acre parcel into Page 5 Council Minutes - 11/25/91 two parcels, both of which remain under the ownership of the church. Development of the church would occur on a 5 -acre parcel located approximately 450 feet east of the intersection of Chelsea Road and County Road 118. The remaining parcel on the corner would be approximately 4.7 acres in size and would remain zoned for commercial use. O'Neill went on to note that in response to the new proposal, the Planning Commission again recommended denial based on the findings that commercial uses displaced by the church cannot be relocated nearby without encroachment on residential areas; development of a church imbedded between commercial and industrial uses is not desirable; the best use for the property is for commercial use because of proximity to the freeway and due to its separation from residential uses; the B-3 property remaining at the corner of 118 and Chelsea (4.7 acres) after the rezoning is an insufficient area to satisfy long-term demand for commercial land in the area; and the need for the rezoning has not been sufficiently demonstrated, as other land is available for this type of use. O'Neill went on to note that the Planning Commission's finding was based on information from the City Planner. The Planner indicated that the original area designated for commercial use, the Chelsea Corridor Planning Study (16.7 acres), is proper given the size of the residential and industrial areas located south of the freeway that will be served by this commercial district. Jim Haglund of the Evangelical Covenant Church was present to review his rezoning request in more detail. Haglund noted that the proposed location for the church is excellent because vehicular access to the site is good. In addition, locating a church in a commercial area is not quite as unusual as the Planning Commission might have thought. More and more, churches are located on the fringes or actually imbedded in commercial areas. Haglund noted that in Buffalo there is an Evangelical Covenant Church across from the medical building next to Walmart. In Maple Grove, there is a church next to a Super America. In addition, it was his view that placing a church next to the school facility also made sense. Finally, Haglund noted that from an economic standpoint, this is a fine location for the church because the site is prepared and ready for a church with utilities in place at this time. Mick Scott, the pastor of the Evangical Covenant Church, noted that Monticello was selected for the site of the church because it is conservative and progressive at the same time, there are other good churches in the community, and 40% of the population is non-churched. In many ways, the demographics make Monticello a good place to grow a church. Page 6 Council Minutes - 11/25/91 Ken Maus stated that he could see the church develop there; however, he would like to see more commercial area preserved than the 4.7 acres suggested. Brad Fyle also suggested that the commercial area should be preserved. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to deny the rezoning request based on the following findings: 1. Commercial uses displaced by the church cannot be relocated without encroachment on residential areas. 2. Development of a church imbedded between commercial and industrial uses is not desirable. 3. The best use for the property is for commercial use because of proximity to the freeway and due to its separation from residential uses. 4. The B-3 property remaining at the corner (4.7 acres) after the rezoning is insufficient to satisfy long-term demand for commercial land in the area. 5. The need for rezoning has not been sufficiently demonstrated, as other land is available for this type of use. Motion carried unanimously. At this point in the meeting, Council discussed a potential alternative site. It became the consensus of Council that Council would consider taking a fresh look at an alternative site approximately 200 feet west of the site proposed under the previous agenda item. This would create additional commercial area at the corner of Chelsea and 118. Shirley Anderson noted that she does not think that moving the church farther west on Chelsea is the answer. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to further study and consider a rezoning request submitted by the church which would essentially move the proposed church site 200 feet west on Chelsea thereby creating a commercial area at the corner of 118 and Chelsea of approximately 6.2 acres. Voting in favor: Dan Blonigen, Clint Herbst, Brad Fyle, Ken Maus. Opposed: Shirley Anderson. Page 7 0 Council Minutes - 11/25/91 Consideration of a replacement of power band saw for the public works shop. John Simola reported that the metal cutting band saw or power hack saw at the public works shop is a small, 4" x 6" non - precision home handyman type of saw. Simola asked that this unit be replaced with a larger 7" x 12" horizontal/vertical commercial type of saw capable of consistent accurate cuts. Such a saw would be a time saver in not having to cut the same piece of metal two or three times or doing extensive grinding to straighten out a crooked cut. In addition, it would give us much greater flexibility in having a larger capacity. In preparation for purchase of this item, we placed an amount of $1,700 in the 1991 budget based upon quotes we had obtained in the summer of 1990. Council discussed whether or not this type of saw is necessary. Shirley Anderson noted that it does not make sense to farm out work for others to do when it can be done more efficiently and less expensively in your own shop. It was her view that it makes sense to spend $2,000 to purchase the tool necessary to do the job efficiently. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to authorize the purchase of the Model 1500 Ellis saw from Gladwin for $2,295 after specific review and approval by Councilmember Blonigen. Voting in favor of the motion: Dan Blonigen, Shirley Anderson, Ken Maus, Clint Herbst. Opposed: Brad Fyle. Consideration of purchase of automatic control for water system using old tower. John Simola reported that when the new control system was built for the water system, it incorporated the ability to monitor pressure or tower levels at two different locations. one would be at the new water tank on top of the Monte Club Hill. The other would be at a downtown pressure zone for the old tower level. Now that the City has decided to keep the old tower and use it during emergency periods or for periods when the new tank is taken down for maintenance or repairs, we would like to have a new level sending unit installed at the old tower site downtown so that we may use all of the automatic functions of our new system with the old tower. In the 1992 budget, we placed an amount of $4,500 for necessary improvements to our system for automatic control of the old tower. We have a quote from Automatic Systems for the new control system at $3,592. The entire project should not exceed the budgeted amount. Page 8 Council Minutes - 11/25/91 The City Council discussed whether or not the automatic controls are absolutely necessary. John Simola noted that although the automatic control for the water system using the old tower will not be used more than two weeks per year, it takes advantage of the considerable investment the City made in developing its automatic system. Dan Blonigen asked how many man-hours would be tied up in checking the tower if the automatic control system was not in place. He noted that it might be less expensive to pay the extra man-hours than it would be to pay for the control system. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to authorize an expenditure of $4,500 to provide automatic control of the old tower when it is being used for emergencies or backup during maintenance or repairs to our new tank. Voting in favor: Brad Fyle, Shirley Anderson, Ken Maus, Clint Herbst. Opposed: Dan Blonigen. John Simola noted that the old water tower needs to be painted soon, and he suggested that a subcommittee be formed to establish the color scheme. It was noted by Ken Maus that perhaps the City would want to place its logo on the water tower. After discussion, it was the consensus of Council to establish a water tower painting committee. Shirley Anderson and Ken Maus volunteered to serve on the committee. 10. Consideration of purchasinq 79 extra 65 -gallon carts for the garbage program. John Simola recommended that the City Council authorize purchase of the additional 79 moca brown and black 65 -gallon carts from ABM Equipment and Supply, which would result in approximately an $800 savings to the City of Monticello. Should cart prices increase with future purchases, this would allow us to keep the current rates at $1.00/$1.25 per month for longer in the future. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to authorize the purchase of 79 extra 65 -gallon moca brown and black carts from ABM Equipment and Supply, Inc., from the Zarn distributor in Hopkins, Minnesota, at a cost of $44.75 or $3,535.25, with an estimated total savings to the City in the neighorhood of $800. Motion carried unanimously. Page 9 Council Minutes - 11/25/91 11. Consideration of a request for an extension of the completion _date for the sanitary sewer hookup of West Kjellbergs Mobile Home Park. Rick Wolfsteller reported that for almost a year, City staff has been working with Kent Kjellberg, owner of the West Kjellbergs Mobile Home Park, in regard to his request to hook the park to our sanitary sewer system. Earlier the City Council had adopted a resolution which accepted his petition for annexation of the west mobile home park whereby the City agreed, along with Monticello Township, to submit a joint resolution for annexation provided the sanitary sewer connection was completed by December 31, 1991. Mr. Kjellberg has not met the scheduled time lines for completion of the approved set of plans and specifications which were required by June 1. He only recently submitted his plans for review in late October, and they were woefully inadequate. As part of the joint annexation resolution whereby the City agreed to annex the property once it was connected to the city sewer, we also agreed to a number of concessions in an effort to make the sewer connection more feasible for Mr. Kjellberg. The normal hookup charge is based on an estimated $125 per mobile home rather than our normal $300 per unit charge. We agreed to finance the hookup charge over five years at 6.5%. These favorable terms were agreed upon realizing that the hookup charge would be in the neighborhood of $25,000. Since that time, it has become more apparent that the east mobile home park, which has been in the city since 1988, may not receive sanitary sewer in the foreseeable future. It may be time for the City to re-examine its position regarding annexation of the west mobile home park until such time as the east mobile home park is connected to city sewer. John Simola explained that there is absolutely no economic reason to promote annexation of the west park. Since Kjellberg did not meet the deadlines for connecting his sewer system, then the original west park agreement should be renegotiated. Ken Maus noted that we may also need to redefine the agreement governing the Evergreens development. After discussion, a motion was made by Shirley Anderson and seconded by Dan Blonigen to consider changing the terms and conditions of annexation and consider amending conditions associated with the hookup of the west mobile home park to be reconsidered after December 31, 1991, if the hookup is not completed. Motion carried unanimously. Page 10 Council Minutes - 11/25/91 A motion was made by Dan Blonigen and seconded by Shirley Anderson to direct staff to investigate the means by which the City can withdraw from the Evergreens development agreement established in 1988. Voting in favor: Dan Blonigen, Shirley Anderson, Ken Maus, Clint Herbst. Opposed: Brad Fyle. There being no further discussion, the meeting was adjourned. J ff O'Neill Assistant Administrator Page 11