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City Council Minutes 10-24-1994 MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, October 24, 1994 - 7 p.m. Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Warren Smith, Dan Blonigen Members Absent: None 2. Apuroval of minutes of the regular meeting held October 1Q, _.1994. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to approve the minutes of the regular meeting held October 10, 1994, as submitted. Motion carried unanimously. 3. Consideration of adding items_to the agenda. City Engineer Bret Weiss noted that Council needs to adopt a resolution requesting approval from the Commissioner of Transportation for off-system expenditure of state aid funds. 1 It was the consensus of Council to add this item to the agenda at the end of the meeting. 4. Citizens comments/ etitions re uests and com laints. Bob Nelson, manager of the Marywood Apartments, asked Council to consider removing the "no parking" signs on one side of 7th Street in order to allow apartment dwellers to park on the street. He noted that many residents are using the apartment garages for storage and need to park their vehicles on the street. Assistant Administrator O'Neill noted that both sides of the street are needed for the bike path in order for bike riders to follow traffic laws, as it is against the law to ride a bike against traffiic. It was the view of Council that the public street should not be used for overflow parking created by use of garage stalls for storage. After discussion, it was the consensus of Council to direct staff to research possible solutions to the parking problem at the Marywood Apartments and bring this item back to Council as an agenda item at the next meeting. .,~ Page 1 Council Minutes - 10/24/94 5. Public Hearin --Ado tion of delin uent char es assessment roll and certification to_County-Auditor. Mayor Fyle opened the public hearing. There being no comment from the public, Mayor Fyle closed the public hearing. Council discussed the passibility of establishing a disconnect policy. City Administrator Wolfsteller suggested that, due to the manpower required in shutting the water off for delinquent accounts, Council may want to consider establishing a specific dollar amount in the policy. Once an account reaches that dollar amount, the City would then disconnect the water. It was the consensus of Council that this type of policy should be considered. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to adopt the delinquent charges assessment roll and certify the assessment roll to the County Auditor. SEE RESOLUTION 94-31. 6. Consideration of Wri ht Count Sheriff's re ort. Sheriff Don Hozempa presented Council with a summary of the number of calls for service, arrests, traffic, burglaries, and miscellaneous crimes for the city of Monticello. He noted that since the City incorporated 24-hour service from the Wright County Sheriffs Department, traffic speed has slowed resulting in a decreased number of traffic tickets issued. Hozempa reviewed the statistics noting that DWI's, burglaries, and thefts are declining, while criminal damage to property, assaults, and domestic calls have increased. In closing, Hozempa reported that crime is under control in the city of Monticello at this time and credited the City for being proactive and increasing law enforcement hours when needed. 7. Consideration of variance request allowing construction of storage building/~ara~e. Applicant, Jeff Michaelis/Riverside Oil. Assistant Administrator O'Neill reviewed the request to build a 26' x 12' temporary storage structure at the current bulk oil site on 5th Street, which would allow Michaelis to enclose his fuel transport truck. He noted that the proposed structure encroaches into the yard setback requirements, thereby requiring a variance; however, he also noted that the site is technically a nonconforming use, and the ordinance prohibits use intensification of a nonconforming site. Page 2 Council Minutes - 10/24/94 O'Neill went on to note that the Planning Commission reviewed the request at their October meeting and approved the variance request based on the finding that the structure would be temporary and would not be considered an intensification of the present use; however, the Planning Commission decision was appealed by the Monticello Public Works Director. Public Works Director Simola explained in his appeal that the request should be reconsidered because allowing this variance could set a precedent, and the BNR bulk site soils may be contaminated with petroleum products and could represent a threat to our main municipal water supply. Placement of the proposed building on this property could unreasonably delay cleanup and result in higher relocation costs for the owner if relocation is necessary. Simola also noted in his report that City staff has been working with BNR and the bulk plant operators for almost two years in an attempt to have a soil investigation performed at this site, and it was Simola's view that the investigation should be performed prior to any further building at this site. City Attorney Paul Weingarden explained that Michaelis must show an undue hardship without the proposed building and must show that he doesn't have reasonable use of his property if he is not granted the variance. It was Weingarden's concern that the Council would be faced with many other requests of this type if this variance is granted. He also noted that regardless of whether or not the proposed building is considered temporary, it would be an expansion of a nonconforming use. Michaelis responded that he has tried to relocate in the past but has been unable to find a site where the City allows a bulk plant. He also noted that the petrofund will soon no longer be available and that he is aware that he will have to move his business within approximately five years. Michaelis added that he would be willing to sign an agreement stipulating a time limit for his temporary building and other contingencies as required by Council. A suggestion was made that this request be tabled until more information from the soil investigation is available. City Attorney Weingarden noted that Council must make a decision on this matter within the time limits specified by ordinance unless the applicant agrees to waive the time limit. Jeff Michaelis then stated that he waives the right to a decision within the time frame specified by ordinance. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to table the variance request for 30 days in order to receive additional information regarding the possibility of soil contamination at the site. Motion carried unanimously. Page 3 Council Minutes - 10/24/94 8. Consideration of zoning ordinance amendments pertaining to the HIein --- --- Farms development proposal. Applicant, Tonv Emmerich/Dave HIein. Assistant Administrator O'Neill reported that this item was continued from the previous meeting of the City Council pending a closed Council meeting to discuss potential litigation on this issue. O'Neill noted that subsequent to the closed meeting held on October 20, a letter was received from Tony Emmerich stating that after reviewing the ordinance relating to PUD districts, it appeared that his development goals could be achieved under the R-PUD designation; therefore, he requested that his application be amended by removing R-2 and R-3 and replacing with R-PUD. City Attorney Paul Weingarden noted that this issue was discussed with Council in depth on October 20 and that the R-PUD seems to satisfy some of the objections made by Councilmember Blonigen to the rezoning request. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith, to approve the zoning ordinance amendment to rezone from an agricultural designation to a combination of R-1 and R-PUD zoning designations. Motion is based on the finding that the rezoning request is consistent with the comprehensive plan. Councilmember Herbst noted that he is opposed to this development at this time but will vote in favor of the motion in order for the Council to move on to other issues. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 261. 9. Consideration of a royal of reliminar lot -HIein Farms subdivision. A licant Ton Emmerich/David HIein. Assistant Administrator O'Neill reported that Council discussed this topic at the previous meeting but tabled the item pending a decision on the rezoning issue for this property. He noted that the utility plans must be approved by the City Engineer, and the City will need an agreement from the developer regarding acquisition of 16 acres of park land. O'Neill also stated that a finance plan supporting the sewer and water trunk system has not been finalized yet; however, expenses for the improvements will be handled the same as was done previously for School Boulevard, with SO°Io funded by the developer, and 20°10 funded by the City. The City would require some oversizing of the main, which would be captured with an area assessment charge far sanitary sewer and water mains. Whether the project will be developed privately or by the City has not yet been established. O'Neill went an to note that an environmental assessment worksheet must be completed, which will take approximately 45 days, and that approval of the plat must be contingent on receiving a negative declaration. Page 4 Council Minutes - 10/24/94 [] After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to approve the preliminary plat for the HIein Farms subdivision with the following contingencies: 1. Utility plans must be approved by the City Engineer. 2. Developer must make modifications as required by Council. 3. Developer must enter into a development agreement guaranteeing development of the park area south of School Boulevard. 4. Receipt of a negative declaration of environmental impact resulting from the EAW process. 5. Final plat must be approved by the County and affected oil and power companies. 6. Finalization of description of project phasing and associated financing. [] 7. All required berming to be completed and financed by the developer in conjunction with the initial development of the site. Motion carried unanimously. 10. Consideration of awardin bid for urchase of um er fire truck. City Administrator Rick Wolfsteller reported that in March of 1994, the Council authorized the Joint Fire Board to prepare plans and specifications for the purchase of a new pumper and rescue fire truck, and bids were received on Monday, October 17, 1994. Wolfsteller noted that the fire department received three bids for the new truck ranging in price from $223,521 to $256,967. An alternate was also requested for a rear suction option on the truck, and prices received added an additional $3,000 to $4,000 to the cost. The low bid was received from 3D Manufacturing Company of Shawano, Wisconsin, with an amount of $226,521, which includes the rear suction option. Wolfsteller went on to note that the Monticello Township Board will consider this award on Monday, November 7, and any decision by the Council will be subject to the Township Board's approval. He also noted that the Joint Fire Board has the option to pre-pay for the purchase of the fire truck and receive a discount of approximately 6.15%; however, Wolfsteller noted that he and the Township Board had concerns about Page 5 Council Minutes - 10/24/94 availability of funds for pre-payment, and it was the consensus of the Joint Fire Board to pay the required down payment, with the balance being paid upon delivery of the truck. After discussion, a motion was made by Warren Smith and seconded by Shirley Anderson to accept the law bid of $226,521 from 3D Manufacturing Company contingent upon receiving Monticello Township approval. Motion includes a down payment as required, with the balance being paid upon delivery of the truck. Motion carried unanimously. 11. Consideration of re nest for review of tobacco licensin ordinance. City Administrator Wolfsteller reviewed the tobacco ordinance as adopted by the Council in July 1994, which requires annual licenses from all retailers who sell tobacco products and eliminated customer access to cigarettes and tobacco products without the assistance of a store clerk. In addition, the ordinance restricts vending machine use by requiring that machines be operated by tokens or an electronic switch device by a store employee. The ordinance as adopted would become effective January 1, 1995. Wolfsteller went on to report that after adoption of the ordinance, the City notified all current vendors of cigarette products located within the city limits that anewly-adopted tobacco ordinance would take effect January 1. Since that time, Wolfsteller stated that he has received complaints from area retailers who have concerns about prohibiting self service access of cigarettes, and the retailers have requested a chance to express their concerns to the City Council. Dorothy Ritze, owner of the Total Mart convenience stores in Monticello, noted to Council that a major reason for adopting the tobacco ordinance seemed to be to help control theft; however, she stated that theft of tobacco products is not a problem, as displays are located in front of the cashier. She explained that tobacco sales are controlled by training employees and by counting the cigarettes in the display three times a day. Since retailers receive incentive money from tobacco manufacturers for displaying their product, the current ordinance eliminating self-service would result in a loss of income for retailers. Ritze Hated that if everyone works together, the goal of limiting access to tobacco products by minors can be accomplished. She requested that Council consider reinstating self-service of tobacco products by replacing the current language in Section 3-14-6D with language as written by the retailers and by requiring retailers to verify annually on their license that employees are trained regarding tobacco sales. The vending machine restrictions would remain the same. Page 6 Council Minutes - 10/24/94 Mike Carley, Manager of the Monticello Kmart, stated that Kmart receives approximately $400,000 in tobacco sales, and it is estimated by the corporation that it would cost approximately $25,000 for Kmart to conform to the present ordinance; therefore, Kmart would most likely discontinue cigarette sales if a compromise cannot be reached on the ordinance. Rick Pribyl, manager of Tom Thumb, and Tom Holthaus, owner of West Side Market, agreed with the concerns as noted by Dorothy Ritze. Patrice Bogart, education manager for the Monticello-Big Lake Community Hospital District, noted her appreciation for everything the merchants are doing to prevent the sale of tobacco products to minors, but she also noted her concern that if the ordinance is changed, retailers' efforts to prevent minors from obtaining cigarettes will lessen as time goes by. Jon Young of the Wright to the Heart of Health Coalition spoke against changing the ordinance. He reminded Council there was a 50% rate of success buying tobacco products in Monticello during the sting operation conducted by the Coalition last year. He also noted that Maus Foods discontinued self-service of tobacco products in 1992 due to theft. It was the view of Councilmember Blonigen that the sale of tobacco products is the responsibility of the store clerk and that teenagers will find a way to get cigarettes if they want them bad enough. Patrice Bogart responded by saying that it's the responsibility of adults to make it difficult for teenagers to make wrong choices. Councilmember Herbst noted that Bogart makes a good point that teens do make wrong decisions, whether they buy or steal cigarettes, and that we should help them make the right choices. Councilmember Smith agreed with the points made by Herbst but also noted that it was an oversight on Council's part to adopt the tobacco ordinance without taking into consideration the effect of the ordinance on the business community. Smith noted that perhaps a compromise could be reached and the ordinance reviewed again in the future. Councilmember Anderson agreed with the idea of reviewing tobacco sales in the future to see if the ordinance as proposed by retailers is working; however, Anderson noted that the language proposed by the retailers has not been reviewed by Council and requested that a vote be taken at the next meeting after Council has had a chance to review the final language. After discussion, a motion was made by Warren Smith and seconded by Dan Blonigen to agree to amend the ordinance as requested by the retailers, which will require all retailers to certify that employees have received training on laws pertaining to tobacco sales and will again allow self-service Page 7 Council Minutes - 10/24/94 of tobacco products that are in plain view of a responsible employee; however, final approval shall not be given to actually amend the ordinance until the proposed language is reviewed by Council. Voting in favor: Warren Smith, Dan Blonigen, Shirley Anderson, Brad Fyle. Opposed: Clint Herbst. 12. Consideration of offer to purchase Eastwood Knoll plat. City Administrator Wolfsteller reported that the offer to purchase the Eastwood Knoll property has been withdrawn; therefore, no action is required by Council. 13. Update on Gille property cleanup project. City Administrator Wolfsteller updated Council on the cleanup project of the former Gille Auto property site. He noted that the project is almost complete, and the property will soon be ready to market so that it can be put back an the tax rolls. Wolfsteller asked Council if they want to become the owner of the property and sell it themselves or let the County handle the sale as a tax forfeiture property. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to accept the property from the County and request the County Auditor to obtain a deed from the Department of Revenue sa that the City can continue with the process of marketing the property. At this point the City Attorney noted that deeding the property to the City should be contingent on receiving a report from the PCA that the site is clean. Councilmember Herbst then amended his motion to accept the property from the County contingent on receiving a report from the PCA that the site is clean, and then request the County Auditor to obtain a deed from the Department of Revenue. Shirley Anderson seconded the amended motion. Motion carried unanimously. 14. Consideration of final a ent to Gridor Construction for di ester cover-- Praiect 93-07C. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve final payment to Gridor Construction in the amount of $10,415.10 pending delivery of the required lien waivers and documentation. Motion carried unanimously. Page 8 Council Minutes - 10/24/94 15. Consideration of advertisement for bids for urchase of 125 kw emer enc generator. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith to authorize advertisement For bids for a new 125 kw emergency generator based upon the specifications for the last unit purchased in 1991. Motion carried unanimously. 16. Consideration of resolutions apurovin~ annexation o_f Krautbauer/Hawks Bar properties. Assistant Administrator O'Neill explained that, as part of the River Mill subdivision platting process, Council is asked to consider adopting the proposed resolutions accepting annexation of the Hawk's Bar and Robert Krautbauer properties. He noted that in order to meet the time frame for using tax increment financing, it's necessary to consider annexation of these properties contingent on approval of the River Mi11 final plat and completion of the development agreement. If the project does not materialize, the properties would not be annexed. O'Neill went on to note that on October 12, Monticello Township reviewed the development plan, agreed that the plan met the requirements of the urbanization plan, and voted to approve the annexation of these two properties. He stated that the Township also commented on concerns regarding the use of tax increment financing and the fact that there is no connection between Highway 75 and Highway 39 in the River Mill development; however, Township approval is not contingent on the City taking specific action to address the comments. Joe Abbot, owner of Hawk's Bar, stated that he has no problem with the subdivision plan but was concerned about the possibility of a median being installed by the County which would limit access to his bar by permitting right-in and right-out access only. He explained that if semi's are routed through the River Mill development to get to the bar, the neighborhood will be opposed to this location and he will eventually be pushed out of the area. Abbot noted that he preferred that signal lights be installed in this area rather than a median. Bret Weiss, City Engineer, explained that the County controls access to County Road 75 and that it is the County's decision as to when the median would be installed; however, he noted that the connection between Hart Boulevard and County Road 39 must be made prior to a median being placed on County Road 75. Weiss also reported that the County will not install signal lights at the Hawks' Bar location. Page 9 Council Minutes - 10/24/94 Abbot asked if he withdrew his petition for annexation to the city, would his access remain as it is. City Attorney Weingarden responded by saying that the access issue and annexation issue are separate. One issue does not affect the other, and the County will still decide when the median will be installed. Weingarden also noted that Hawk's Bar is presently considered a nonconforming use in the county. If the bar were to burn, Aboot would be unable to rebuild; however, the bar would have the potential to became a conforming use when annexed to the city. Mayor Fyle stated that he is not in favor of annexing only the Krautbauer property, as that would create an island of township property surrounded by the city limits. Assistant Administrator O'Neill informed Council that the urbanization plan with the Township states that establishment of isolated parcels should be avoided, but Council could annex the isolated parcel later under the urbanization agreement. It was also noted by O'Neill that Franklin Denn, Township Board Chair, felt that annexation of the Krautbauer property without the Abbot property would be consistent with the urbanization plan. The Township would not object to the Krautbauer annexation if Abbot were to withdraw his request. Councilmember Herbst suggested that perhaps the access to the River Mill development should be on County Road 39, which would eliminate increased traffic past Hawk's Bar and the median wouldn't need to be installed. At this point in the meeting, Joe Abbot withdrew his petition for annexation of the Hawk's Bar property. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to deny annexation of the Krautbauer property based an the finding that TIF shouldn't be used far this development. Blonigen noted that he would like to see both the Krautbauer and Hawk's Bar property be annexed at the same time, as he felt the R-2 area should be rezoned to R-1. At this point, Rick Sathre requested that Council table action in order to give the developer a chance to work out a compromise with Joe Abbot, as Rick Murray was unable to attend this meeting. Herbst noted that he not opposed to the concept for the area but is against the use of TIF to make improvements to the gravel pit. He also noted he preferred the R-PUD concept rather than the R-2 zoning. The City Attorney stated that the zoning of the River Mi11 subdivision has already been approved and complies with the comprehensive plan. He Page 10 Council Minutes - 10/24/94 noted that since Council has conceptually approved the use of TIF, to deny annexation based on a disagreement with the use of TIF would be a change in position and may result in consequences for the Council. Councilmember Anderson suggested that the item be tabled. VOTE ON THE MOTION TO DENY ANNEXATION: In favor: Dan Blonigen, Clint Herbst. Opposed: Shirley Anderson, Warren Smith, Brad Fyle. Motion failed. A motion was made by Shirley Anderson and seconded by Warren Smith to table action on annexation of the Robert Krautbauer property as requested by the developer until the first Council meeting in November. Voting in favor: Shirley Anderson, Warren Smith, Dan Blonigen, Brad Fyle. Opposed: Clint Herbst. Motion passed. 17. Consideration of ado tin buildin ins ection rocedures redefinin level of ins ectians and amendments to fee structure relatin to sin le fami housing construction. Assistant Administrator O'Neill explained that City staff has been analyzing current building inspection services in an effort to determine if efficiency could be improved by streamlining the process. During review of the building inspection process, staff realized that the fees charged by the City have not been reviewed for quite some time. O'Neill noted that after researching fees charged by other cities, it became apparent that an increase in fees charged by the City of Monticello is justified in order to keep pace with the rising cost to provide building inspection-related services and to provide revenue for future City expenses that are, in part, caused by the housing growth Monticello is experiencing. Council is asked to adopt the new building inspection procedures and consider making amendments to the fee structure relating to single family housing construction. Tom Halthaus of Value Plus Homes, Inc., requested a chance to review the information prior to Council adoption and asked that Council consider not making the fee changes effective immediately, as it would amount to thousands of dollars for Value Plus Homes. Because of the late hour, it was the consensus of Council to adopt the new forms and procedures for the building department, including collection of sewer and water access fees with the building permit, and to table discussion of increasing the fees until the next regular Council meeting. Page 11 Council Minutes - 10/24/94 18. Consideration of condemnation of two hazardous trees n_the_ci~of Monticello. Jahn Simola, Public Works Director, explained that the City Tree Inspector has noted the existence of two hazardous trees within the city. The first tree is located on the Chantelle Mitchell property at 206 East River Street, and the other is located east of the fire hall on the Robert Ameriks property. Bath property owners are hesitant to have the trees removed due to the cost. Simola noted that the City Attorney recommended that Council condemn the trees and order removal as allowed by the building code and city ordinances. After discussion, a motion was made by Warren Smith and seconded by Dan Blonigen to authorize condemnation and removal of the tree located east of the fire hall. Motion carried unanimously. 19. Consideration of a raval of bills for the month of October. After discussion, a motion was made by Shirley Anderson and seconded by Warren Smith, to approve the bills for the month of October as presented. Motion carried unanimously. 20. Other matters. A. City Engineer Bret Weiss requested that Council adopt a resolution requesting approval to use state aid funds for the pathway project (Project 93-OSC). He noted that plans and specifications are developed assuming that state aid funds will be used for a portion of the project. After discussion, a motion was made by Clint Herbst and seconded by Warren Smith to adopt a resolution requesting approval to use state aid funds for the pathway project. Motion carried unanimously. SEE RESOLUTION 9432. There being no further business, the meeting was adjourned. - ~.~ K r Daty Office Manager Page 12