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City Council Minutes 04-08-2002MINUTES �. REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 8, 2002 - 7 p.m. Members Present: Roger Belsaas, Roger Carlson, Clint Herbst, Brian Stumpf and Bruce Thielen Members Absent: None 1. Call to Order and Pledge of Allegiance. Mayor Belsaas called the meeting to order at 7 p.m. and declared a quorum present. The Pledge of Allegiance was said. 2. Approye minutes of March 25, 2002 regular Council meeting. BRIAN STUMPF MOVED TO APPROVE THE MINUTES OF THE MARCH 25, 2002 COUNCIL MEETING WITH A CORRECTION ON PAGE FOUR SPECIFYING THAT THE INDIVIDUAL WAS RANDY RUFF NOT RON RUFF. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3. Consideration of addinLy items to the agenda. City Administrator, Rick Wolfsteller, asked that the Council select a date for a closed meeting to discuss MOAA litigation. The Council determined to meet in a closed session on April 22, 2002 at 6 p.m. Clint Herbst asked that the pavers on Walnut Street be added to the agenda. Roger Belsaas added a discussion of garbage/recycling pickup and Brian Stumpf added parking on Locust Street. 4. Citizens comments/petitions, requests and complaints None. Adam Hawkinson, the new Parks Superintendent was introduced to the Council. Milton Olson stated that he had talked to city staff and had received assurances that Marvin Road would remain open and he hoped he would be kept informed on future activities affecting Marvin Road. 1 Council Minutes - 4/8/02 5. Consent Agenda. A. Consideration of ratifying new hires for the Community Center. Recommendation: Ratify the hiring of the new employees for the Community Center as identified. B. Consideration of approving concept stage, development stage planned unit development; and consideration of approval of a conditional use permit allowing an auto body facility and associated storage. Applicant: Progressive Development and Construction Company/Shawn Weinand. Recommendation: Move to approve concept stage, development stage planned unit development; and consideration of approval of a conditional use permit allowing an auto body facility and associated storage. C. Consideration of granting a license to LSW Properties allowing private use of the Marvin Road right-of-way. Recommendation: Approve granting a license allowing private use of the Marvin Road right-of-way as identified on the site plan dated 2/21/02 contingent upon City Attorney review and approval of license document. D. Consideration of approving a one day charitable gambling license for the Monticello Country Club. Recommendation: Adopt a resolution authorizing the State Gambling Control Board to issue a one day gambling license for May 18, 2002 at the Monticello Country Club. Res. #2002-13. E. Consideration of "reestablishing" precinct boundaries following state redistricting. Recommendation: Adopt a resolution confirming the existing precinct boundaries for the City of Monticello. Res. #2002-15. F. Consideration of authorizing purchase of wine rack shelving for liquor store expansion. Recommendation: Authorize the purchase of thirteen 4' wine rack displays in the amount of $5,850. G. Consideration of a request for a conditional use permit for development stage planned unit development and preliminary plat approval allowing commercial condominiums in the I-1 A Zoning District. Applicant: Allied Properties & Management LLC Recommendation: Approve the planned unit development as submitted, subject to final review contingent upon staff review and approval of landscaping plan, lighting plan, grading and drainage plan and other engineering comments. H. Consideration of authorizing City Engineer to conduct feasibility study on extension of utilities to the proposed Bruggeman Homes site. Recommendation: Move to authorize completion of utility extension feasibility study to support development of the Bruggeman Homes project contingent upon the developer providing a deposit in amount equal to the estimated cost to complete the study. 2 Council Minutes - 4/8/02 I. Consideration of special home occupation permit allowing a salon in the R-2 residential district. Applicant: David Gassler. Recommendation: Move to approve the special home occupation permit for 6117 Mill Run Road with the findings that the business is consistent with the character of the neighborhood and will not result in depreciation of adjacent properties contingent upon the following: 1. The business is operated in an appointment only manner to limit the number of vehicles parked at the residence at the same time. Parking to be in resident's driveway only. 2. The applicant provides proper signage (identifying the name of the resident). 3. The hours of operation are limited to normal business hours such as weekdays from 8-5 and weekends 8-2. 4. Mandatory yearly review by city staff. 5. This to be a single chair operation only. Consideration of holding public hearing for CSAH 75 Improvements, Project No. 2000-16C. Recommendation: Move to order a public hearing for the CSAH 75 Improvements, Project No. 2000-16C for April 22, 2002 at the regular council meeting. Res. #2002-14. K. Consideration of accepting bids for sewer rehabilitation project (Part of Project No. 2000-16C, CSAH 75 Improvements). Recommendation: Recognize the bids and Lametti & Sons as the low bidder for repairing all three sewer lines for a total of $65,291 but to table award of the bid to Lametti & Sons until after the public hearing for the entire CSAH 75 Project which will be held on April 22, 2002. L. Consideration of approving Dundas Road property sale to Danner Trucking. Recommendation: Approve the establishment of $3.50/sq. ft. as the sale price amount for the 16,059 sq. ft. that is currently available for transfer to the Danners and future Cedar Street right-of-way at $2.60/sq. ft. estimated cost of $26,946 for a total sale price of $83,152. Mayor Belsaas clarified that action on item #5J was to include ordering and accepting feasibility report and design plans as well as setting a public hearing date for April 22, 2002 for the CSAH 75 improvements. Bruce Thielen asked that item 5K be removed from the consent agenda and be considered after the April 22, 2002 public hearing on the CSAR 75 improvements. Bruce Thielen asked that agenda item #9 be added to the consent agenda. CLINT HERBST MOVED TO APPROVE THE CONSENT AGENDA AS AMENDED. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Council Minutes - 4/8/02 6. Consideration of items removed from the consent agenda for discussion. None. 7. Consideration of supporting dcvcloDMent of ice arena facility via contribution of land and reduction in City fees. Deputy City Administrator, Jeff O'Neill provided background information on the agenda item and introduced Al Gagnon, Project Manager of The Point Group that is involved in spearheading the establishment of an ice arena in this area. Al Gagnon explained who comprises The Point Group and their purpose and goals. He likened The Point Group to a one stop shop to get an ice arena designed, built and financed. In the past most ice arenas were municipally financed while now there are more often instances of public/private options and he cited various options used by other communities to build ice facilities. The City of Monticello was being asked to consider donation of land, being a conduit for financing, such as tax exempt bonds and to consider a reduction or waiving of development fees. Jody Vlackovitch from the group spoke on the up front fund raising the group would have to do. The estimated cost for the proposed facility is in the $3,000,000 to $3,500,000 range. Of this $1,000,000 would be raised up front and long term notes would be used for the balance. Sale of ice time would be the primary revenue source and because ice time contracts are essential to the cash flow, the emphasis will be on getting the contracts for ice time in place. He noted that there is approximately 2000 hours of ice time that could be contracted out. Richard Miller from Wells Fargo addressed the financial implications for the City if the operation of the ice arena was not successful. Bruce Thielen stated his concern that if the City donates the land for an ice arena and the arena fails the land would end up in the hands of a private party. Richard Miller suggested that instead of donating the land the City might want to consider a longer term lease with a minimal lease amount noting that this was what was done with the Minnetonka ice arena. He also pointed out that the City would not necessarily have liability for the debt since in most cases the financial institutions holding the notes would get the facility back. He added that the financial institutions look carefully at the risks involved and consider not only the cost of constructing a facility but the cost to operate it as well. He indicated that at this point the group is seeking a sense of approval from the City Council as to the concept but that there was not enough information available to make a determination on the financial feasibility. Clint Herbst asked about other sites the group had considered. Al Gagnon noted that there were two sites available in Becker and a possible site in Clearwater. In Monticello the two preferred sites were the 7"' Street site and the high school site. Al Gagnon pointed out various nuances of the two sites and stated that the facility would be sited where it was most viable. Bruce Thielen felt siting the arena in the 7' Street area might provide the catalyst to get T" Street pushed through. Al Gagnon added that one of the positive aspects for the 7`" Street site was that there was adequate 11 Council Minutes - 4/8/02 space to accommodate future expansion to two rinks. Chuck Freiberg presented some preliminary sketches of the 7t" Street site and how the facility could be laid out to allow for future expansion. Clint Herbst felt that while the ice arena would be a nice facility to have in the city he was concerned about any hidden costs to the city. While the Council did not see a problem with utilizing either of the two suggested sites or with the City donating or leasing the land, there was some concern about a reduction or waiving of city fees. Clint Herbst asked that when they come back to the Council with the project that the group presents two scenarios; one with the City providing the land only and one with the City providing the land and reducing the development fees. Al Gagnon stated that this point they don't know what the development fees will total. Deputy City Administrator, Jeff O'Neill, indicated that most of the trunk fees are based on acreage but he did not know the acreage involved for the 7t" Street site. In discussion on reducing/waiving the development fees, it was felt that the City should have some kind of handle on the amount of the fees before the Council could make a determination on whether they could reduce or waive any portion of these fees. Roger Carlson felt that the higher quality the facility is the greater the likelihood the City would consider a reduction of fees. BRUCE THIELEN MOVED THAT THE CITY COUNCIL SUPPORT THE EFFORTS OF THE MONTICELLO YOUTH HOCKEY ASSOCIATION TO DEVELOP AN ICE ARENA WITH THE CITY LEASING OR DONATING THE LAND FOR THE 7 T1 STREET SITE WITH THE UNDERSTANDING THAT THE CITY COUNCIL AND CITY STAFF WILL WORK WITH THE GROUP ON THE NEGOTIATION OF DEVELOPMENT FEES. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Consideration of adopting amendments to the zoning Ordinance relating to single family residential lot and development standards. Applicant: City of Monticello. Steve Grittman, City Planner, made a presentation on the development standards for residential lots noting that the process of coming up with these standards has been going on since last fall. The development standards are a reflection of the City's attempt to encourage step up housing for the City. It was felt that the bulk of the housing being built in the City was entry level housing. In order to meet the goal of increasing the housing range, it was felt that new designations and revisions to the existing residential standards be made. It is proposed to have three zoning districts in place of the present R-1 District. The existing R-1 District would be modified with lot area and width being retained as it presently is but with changes in setbacks, house size, finished size, facade detail and roof pitch. The R-1 A designation would be for designated for areas with amenities such as water front or contain valuable natural features such as forests. R -IA district has a lot area of 16,000 sq. ft. and an average lot width of 90 feet. The house size in this district is 2,000 sq. ft. The R -2A district would allow the opportunity to construct small lot single family homes but keep certain standards as far as house size and design. The R-2 district would allow an increase in the single family density as trade off in other areas. Steve Grittman reviewed the standards for each district. Averaging of lot sizes and frontages would be allowed in the R-1 A and R -2A districts. It was felt 5 Council Minutes - 4/8/02 that the averaging would allow for the retention of unique natural areas. Steve Grittman then focused on some of the concerns raised at the meetings held on the design standards. Building Size: In the revised R-1 district the house size was increased to 2,000 sq. ft. with 1,050 sq. ft. of finished space. In the R-1 A district the house size and finished space was 2,000 sq. ft. Steve Grittman noted that this change did not generate a lot response from builders/developers at the meeting. There was some discussion on homes that could meet the 1,050 sq. ft. of finished space but not 2,000 sq. ft. in size. There was also a question on what was meant by "usable space" in the 30' setback. Since under the proposed standards lot sizes could be averaged, it was questioned whether house sizes could also be averaged. Steve Grittman stated that would be difficult to control. Unlike lot sizes, where at the time of platting it can be determined whether the average of all lots meet the design standards, with building sizes that would be more difficult because you are dealing with a number of builders and the house sizes would not be known until the building permit application was received. Jeff O'Neill noted that the three car garage and facade requirements of the interim ordinance were sacrificed for the 2,000 sq. ft. house size. Another concern was when the new standards would be put into effect. The Planning Commission felt the standards should be effective at a set date and not upon publication of the standards because they felt this would give those transactions in progress a chance to be completed before the new standards were imposed. The Council discussed the effective date and Bruce Thielen noted that regardless of what implementation date was set there would still be the possibility that some transactions would be in progress. Steve Grittman felt that two weeks was adequate time to complete transactions in progress and apply for a building permit but it would not provide a large time frame for new transactions to be initiated. One suggestion was that new standards be effective upon publication of the standards and the interim moratorium standards be kept in place until May 1, 2002 for those homes in the process. A letter from Ocello was read regarding the proposed design standards. Mayor Belsaas felt that if problems persist even with the new design standards in place, the Council could always ret eit issue. Clint Herbst stated that the lots impacted by unique circumstances such as the presence of power line could be considered separately with the Planning Commission considering a variance for those type of lots. Shawn Weinand of Ocello spoke on the design standards and the impact the adoption of these standards would have on the Groveland development, both the platted lots and those in the process of being platted. He indicated that the remaining 71 lots in the Groveland Addition are in the power line corridor. He questioned whether the new design standards would apply only to new plats or to all platted lots. He believed that applying the standards to already platted lots would be unfair. The Council although sympathetic to the concerns of the developers and builders felt that if lots could not meet the new standards because of unique circumstances such as a power line, then it should be a matter that is addressed by the variance process. It was asked whether applying the interim moratorium standards for those lot along the power line corridor would lessen the impact. Shawn Weinand felt that would be a good compromise. The Council discussed whether to set a time limit for the application of the interim moratorium standards or to allow a 0 V Council Minutes - 4/8/02 permanent exemption from the new design standards for already p p g Yplatted lots. Steve Grittman and Fred Patch felt a cut off date should be set for interim moratorium design standards. ROGER CARLSON MOVED TO ADOPT THE DESIGN STANDARDS PROPOSED FOR THE R-1, R-1 A AND R -2A DISTRICTS EFFECTIVE UPON PUBLICATION AND ANY LOTS PLATTED AS OF APRIL 8, 2002 WOULD HAVE THE REQUIREMENTS OF THE INTERIM MORATORIUM APPLIED. BRUCE THIELEN SECONDED THE MOTION. In further discussion the length of time the interim ordinance would apply was discussed and the Council concurred in setting a time limit. ROGER CARLSON AMENDED HIS MOTION TO HAVE THE REQUIREMENT OF THE INTERIM MORATORIUM APPLY TO PLATTED LOTS UNTIL AUGUST 1, 2002. BRUCE THIELEN SECONDED THE AMENDED MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration of order feasibility report, accepting feasibility report and authorizing .preparation of plans and specifications for Groveland 3r`' Addition, Project No. 2002-02C. Added to consent agenda. Added items: Trash pickup - Mayor Belsaas reported that he had received calls from residents that the garbage hauler was picking up the recycling material with the trash and then charging the property owner for an overage. The Public Works Director questioned whether the recycling items were in the recycling bins and questioned whether the hauler should be picking up any stuff for recycling that was not in the recycling bins. John Simola will check into it further. Mayor Belsaas suggested something in the next newsletter addressing the issue. Brian Stumpf stated he had discussed the issue of restricting parking on Locust Street with the City Engineer. Clint Herbst brought up the unfinished work with the pavers on the Walnut Street and the need to get the contractor back on the project to finish up the work. 10. Approve payment of bills for April. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS FOR APRIL. BRUCE THIELEN SECONDED THE MOTION. MOTION CARRIED. 7 Council Minutes - 4/8/02 11. Adjourn. BRUCE THIELEN MOVED TO ADJOURN AT 8:50 P.M. CLINT HERBST SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Recording Secretary 0