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City Council Minutes 04-06-2007 Special (Annexation) Council Minutes: 4/6/07 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Friday, April 6, 2007 -1:00 p.m. Members Present: Wayne Mayer, Tom Perrault, Brian Stumpf and Susie Wojchouski. Members Absent: Clint Herbst Others Present: Chris Hood, legal counsel; Bret Weiss and Steve Ische from WSB & Associates, Inc.; Bruce Westby, City Engineer and Jeff O'Neill, City Administrator. 1. Call to Order. Acting Mayor Brian Stumpf called the special meeting to order at I :00 p.m. Introduction of staff and Council were made. Acting Mayor Stumpf then turned the meeting over to City Administrator, Jeff O'Neill. 2. Discussion of orooosed annexation a!!reement between Hi!! Lake Townshio and the City of Hi!! Lake and discussion of ootions for the City of Monticello to oreserve influence in the develooment on the south side of the river. Wayne Mayer stated that in talking to his contacts in the City of Big Lake, they were all aware ofthe special meeting that the City of Monticello was conducting relating to the proposed annexation between the City of Big Lake and Big Lake Township and they were concerned about the City of Monticello moving ahead with action on this matter. Jeff O'Neill briefly summarized the history of the proposed annexation noting that for several years Doug Erhammer and his development group have been looking to develop a 26 acre site in the area of the River Inn. The proposed development which includes the Calpas property is proposed for housing units and 8 commercial sites. In discussions with Big Lake, the response of Clint Herbst and former Councilmember, Glen Posusta was that development should not occur in this area for some period of time and that the City did not want to leap into annexation. Jeff O'Neill noted that the response did not necessarily reflect the opinions of the full Council. Recently a conditional use permit was granted for outside storage for a pipeline supplier, which prompted Clint Herbst to say the City may need to step in to keep that kind of development from occurring. The City wants a "go slow" approach to development. More recently discussions of an annexation proposal between the City of Big Lake and Big Township came up which raised concerns about development.. Jeff O'Neill submitted a drawing of the St. Cloud area which had a similar layout to Monticello with the river. He noted that it required major changes to the downtown area of St. Cloud to accommodate the traffic. At this time the City of Monticello has no plans in place to accommodate this kind of growth if the annexation takes place. Wayne Mayer said regardless of who develops this area, the burden would fall on the City of Monticello for the 1 Council Minutes: 4/6/07 roads. Jeff O'Neill stated the City of Big Lake felt that once transportation issues for the City of Big Lake were resolved then development should be allowed for this area. Bret Weiss didn't know how the proposed annexation would impact traffic since it is not known what is developing. He emphasized the City of Monticello is not taking land to develop it but taking land so that it can be developed at the appropriate time. This is not a land grab but a defensive mechanism. Chris Hood commented that the City is involved in a legal process. The orderly annexation allows certain things to happen. Once the annexation is approve, property, if requested by the owner, can be annexed within 30 days. To preserve the City of Monticello's legal rights to have a say in the planning for this area would require action such as filing a notice of intent. Ultimately the goal of the City of Monticello would be to enter into an agreement with the City of Big Lake and Big Lake Township on the long term development pattern. Big Lake wants to move forward with annexation and development. He felt development could be some time off because the City of Big Lake is looking at bringing infrastructure into this area. However, providing service will be an impetus for development. Once annexed by Big Lake, Monticello's boundaries are locked in. Chris Hood asked what the Council thought the City should look like in 20 years or so. The legal process of annexation by the City of Big Lake is forcing the City to go forward with a legal process that would slow the annexation and development process down. This legal process could extend for 12-14 months. This would keep Big Lake from proceeding with annexation and give time for planning to be done before development could occur. The City of Monticello would lose its legal rights if Big Lake moves forward with filing their orderly annexation. The State of Minnesota must approve the orderly annexation within 30 days. In filing a contested case, Monticello must give the township 30 days notice. Big Lake could be done with their annexation before the City could give proper notice to the township. To preserve the City's legal rights, the City would have to act today. Chris Hood felt unless the City maintains its bargaining strength the City has nothing to bring to the table to influence the development in the annexation area. 2 There are three options. I) Do nothing. Big Lake would move forward with their plan for annexation and establish land use for the annexed area. 2) Send Big Lake a letter telling them of the City of Monticello's concern and asking them not to move forward with the annexation agreement. There is no guarantee the City of Big Lake would comply with the City's request. If the annexation goes forward the City has no influence in the area. 3) The City of Monticello files an annexation petition with the state. The City files Notice of Intent to Annex and that happens before Big Lake's orderly annexation agreement takes place. Ultimately some kind of action has to be taken by the City of Monticello today. Chris Hood believes the area will develop but the question is under what entity's jurisdiction. He felt the area immediately across the river would develop within 2-5 years. A decision as far as Council action has to be made today. He indicated that the City of Big Lake did not include Monticello in any discussions relating to this area. The City has to comply with the legal procedures in order to preserve their rights. Chris Hood added that the City could always pull the contested case annexation resolution at a later date. Action would give Monticello bargaining power with the City of Big Lake, Big Lake Township and the developer. Wayne Mayer agreed with Brian Stumpfs comment that Monticello's history with annexation has not been rosy but Wayne Mayer felt across the river Monticello is dealing with a very different situation. Brian Stumpf felt it was a matter of perception. It will appear that Monticello is trying to grab the land rather than using the annexation as a method to force the Council Minutes: 4/6/07 other communities to the table to resolve planning issues. Bret Weiss said this is not a hostile annexation but a method to get items discussed. Chris Hood felt there needs to be a global planning on what is happening in the area. Without taking action to preserves the City's rights now the City has no leverage for future negotiations. Chris Hood suggested once the notice is signed the City should contact Big Lake to let them know that Monticello initiated the annexation petition to slow the development process down. The law is the law and this is how the City must proceed. Chris Hood said it is basically the same process as the City followed with Monticello Township in that the State will open the hearing and set up a mediation process. If the issues cannot be settled in mediation, Monticello would have to decide whether they would continue to pursue the contested case. . Wayne Mayer asked about the time line once the petition is filed. Once the petition is filed the State has 30-60 days to set up a hearing. Wayne Mayer asked how long mediation could go on. Chris Hood said 12 months. Bret Weiss said WSB & Associates did a study some time ago about extending utilities across the river. Erhammer had asked Bret Weiss to update the costs contained in the study. It was felt that Monticello could get services to this area sooner than the City of Big Lake. Brian Stumpf noted the offset to the cost of extending utilities would be the tax valuation when property develops. Brian Stumpf asked if Monticello will be responsible for traffic caused by the Highway 10 by-pass. Wayne Mayer said the City has to decide whether to take a proactive stance on this. The City of Monticello needs to have a vision. Bret Weiss felt the circumstances were different now than when Glen Posusta and Clint Herbst had discussions with the City of Big Lake. Bret Weiss reviewed the boundary options. Option A- The by-pass will be the separation between the area. They tried to stay out of the residential area. Option D - The difference between Option A and D is that D goes down to the river and takes in the residential property. Option B - Leaves the residential property out. Option C - This option involves the least amount of land area and covers the area of development between County Road 11 and TH 25 as commercial development. Option C is smaller and is more protectionist. This area is approximately 1000 acres as opposed to 1800 acres under other options. Chris Hood noted that the area in option C is the area that could most clearly be defined as urban or suburban in nature. Wayne Mayer asked if taking a larger area would invoke the ire of the City of Big Lake and Big Lake Township and bring them to the table sooner. Chris Hood felt 1000 acres would be a good sized annexation. Wayne Mayer asked if the area of Option #C would be sufficient to cover the cost of developing the infrastructure to serve the area. Bret Weiss said, based on $1.00/sq ft cost that the City used for the interchange, it should There was some discussion on the area designated as the preserve and whether that should be eliminated from the legal description for the annexation resolution. Brian Stumpf did not feel he was ready to continue with the legal process. He expressed his concern about changes other Councilmembers had made to the approved annexation agreement with Monticello Township. Brian Stumpf also had concerns about a joint planning board and whether that would be an effective means of establishing land use for the area. Chris Hood stated that ultimately the City is trying to get an agreement with the City of Big Lake on the phasing of 3 4 Council Minutes: 4/6/07 development. The City of Monticello can always withdraw their petition. Bret Weiss stated that people driving through this area do not want it to be worse in the future than what it is now. Wayne Mayer said if Big Lake does a plan which affects travel on the Monticello side of the river then that becomes the responsibility of the City of Monticello. Susie Wojchouski asked if the City knows that these issues have not been addressed by the City of Big Lake and Big Lake Township. Bret Weiss said there are very few cities that can stand up to developers. Cities cannot stand firm in telling developers the issues must be resolved before development takes place. Brian Stumpf didn't like the fact that a decision carrying major impact had to be made on such short notice. Brian Stumpf asked for comments from others on the Council. Tom Perrault asked who had control over County Road 11,50 and TH 25. Bret Weiss stated that basically the County and MnDOT only control access to the road not traffic volumes. MnDOT does not have funds to correct matters because oftraffic volumes. MnDOT will maintain but not expand the roadway because of increased use. Expansion would have to be done by the community. Tom Perrault also asked if it is cheaper for Monticello to supply services than Big Lake why hasn't the developer come to the City of Monticello. Jeff O'Neill said initially the City was not interested in providing services but this was before they studied the impact of traffic. Tom Perrault asked how much land would have to be developed to pay for services. It was thought it would cost $500,000 to $750,000 to provide utilities. Bret Weiss said the City would have to develop the land if annexed but could control when development takes place. Bret Weiss said the City has to protect the City's investment in the City's facilities. Bret Weiss said officials may have to take some grief in order to take steps for better planning. The Council by filing an annexation petition is acting in a defense mode for the City. Brian Stumpf said he does not want to go down that road. Chris Hood stated that the City does not have the same opportunity tomorrow that is has today so if they are to move forward it must happen today. Chris Hood stated he wanted to be very clear on the ramifications for the City without the annexation. He felt the City only had bargaining strength by filing the annexation petition. The annexation resolution would not be filed with the state until May 7, 2007. The notice of intent and the resolution would need to be approved today. Before the City can file the resolution of annexation you have to send notice of intent to the township by certified mail. The resolution would be held for thirty days and filed on May 7,2007. The resolution of annexation can be withdrawn at any time. Susie Wojchouski asked about the 40 acres that was proposed and why that was not the area proposed for annexation by Monticello's annexation petition. Chris Hood said it was in part strategic planning. Ifthe City asks for more the City can then give something back as a concession. The other concern would be that all the area around the 40 acres would be annexed which would effectively eliminate Monticello's input for planning for the area. Susie Wojchouski asked if some thing could be put in the letter of intent that would explain the City's rationale for their action. Chris Hood suggested that the City file the notice of intent as is and have the City Administrator contact the City of Big Lake and explain the rationale for the action. Bret Weiss suggested that part of the motion include contacting the City of Big Lake and asking for meeting immediately to discuss city action. Chris Hood agreed that could be part of the motion. Tom Perrault wished they had more knowledge of the content of discussions between Clint Herbst, Glen Posusta and the representatives from 5 Council Minutes: 4/6/07 Big Lake. Wayne Mayer felt it was unfortunate that the Council was placed in this position but he felt filing the notice of intent needed to be done as a defensive maneuver so that Monticello could make Big Lake understand the City's concerns and why Monticello felt this action had to be taken. Hopefully at some point the annexation petition could be pulled. He hoped that this would happen at a quicker pace than the process the City endured with Monticello Township. WAYNE MAYER MOVED TO PROCEED WITH ADOPTING THE RESOLUTION OF ANNEXATION AND FILING THE NOTICE OF INTENT TO ANNEX; TO HAVE LEGAL COUNSEL PRESENT AT THE COUNCIL MEETING ON APRIL 9, 2007 TO EXPLAIN THE BASIS FOR THE CITY'S ACTION AND CONTACT THE CITY OF BIG LAKE BY A FOLLOW UP LETTER AND PHONE CALL INVITING THEM TO THE APRIL 9, 2007 MEETING TO HEAR THE CITY'S POSITION WHICH IS THAT NOTICE OF INTENT TO ANNEX IS A DEFENSNE POSITION FOR THE CITY; AND THE LEGAL DESCRIPTION TO BE USED IN THE NOTICE OF INTENT IS THE AMENDED OPTION C IF IT IS VERIFIED THAT THE AREA IN QUESTION IS THE PRESERVE. SUSIE WOJCHOUSKI SECONDED THE MOTION WITH A QUESTION. THE QUESTION WAS WHETHER THE LANGUAGE RELATING TO THIS BEING A DEFENSIVE ACTION BY THE CITY COULD BE INCORPORATED INTO THE RESOLUTION. CHRIS HOOD RESPONDED THAT IT SHOULD BE IN THE LETTER TO THE CITY OF BIG LAKE NOT IN THE RESOLUTION OR NOTICE OF INTENT. CHRIS HOOD STATED THE RESOLUTION AND NTOICE OF INTENT ARE LEGAL DOCUMENTS AND THE CITY MUST STAY WITHIN THE CONFINES OF THE DOCUMENTS. THE RATIONALE FOR THE CITY'S ACTION SHOULD BE MADE OUTSIDE THESE LEGAL DOCUMENTS. UPON VOTE BEING TAKEN MOTION CARRIED 3-1 WITH BRIAN STUMPF VOTING IN OPPOSITION. SUSIE WOJCHOUSKI MOVED TO DRAFT A LETTER TO REQUEST A MEETING OF THE CITY OF MONTICELLO, THE CITY OF BIG LAKE AND BIG LAKE TOWNSHIP WITHIN TEN DAYS OR WITHIN A DATE TO BE MUTUALLY DETERMINED BY THE ENTITIES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Adiourn. SUSIE WOJCHOUSKI MOVED TO ADJOURN THE SPECIAL MEETING AT 2:20 P.M. WAYNE MAYER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. \)~ L\.A.C>S.SA-~ Recording Secretary