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City Council Minutes 10-13-2003 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL Monday, October 13, 2003 - 5 p.m. Members Present: Roger Carlson, Glen Posusta, Robbie Smith, Brian Stumpf and Bruce Thielen. Members Absent: None. Staff Present: Chris Hood, legal counsel, Steve Grittman, City Planner, Kevin Kawlewski, City Engineer, Rick Wolfsteller, City Administrator, John Simola, Public Works Director and 011ie Koropchak, Economic Development Director 1. Call the special meeting to order. Mayor Thielen called the meeting to order and explained the purpose of the workshop meeting was to discuss issues relating to growth. 2. Consideration of Resolution Petitioning the Minnesota Department of Administration for the Annexation of Certain Portions of Monticello Township to the City of Monticello Pursuant to Minnesota Statutes, Section 414.031. Mayor Thielen briefly summarized the Monticello Orderly Annexation Agreement which had t governed the City's annexation practices for the past 30 years. With the orderly annexation agreement no longer in effect, the City is currently processing annexation requests under state statutes. In an effort to do long term planning, Bruce Thielen and Brian Stumpf were appointed to work with staff and township officials to explore options that were available. On August 25, 2003 there was a joint meeting of the City and Township officials regarding annexation issues. A number of options were discussed but no conclusion was reached. City Administrator, Rick Wolfsteller, wrote to the township requesting them to respond by September 30, 2A if they were interested in continuing discussions on annexation options. There was no response by the township by the September 30, 2003 deadline which prompted the scheduling of this workshop meeting. The Council reviewed a map showing the current city boundary in red and property owners who had petitioned for annexation in blue. The yellow line represented the township border and the green line represented the long term planning area for the Council to look at. Presently the City contains approximately 4,700 acres. The long term planning area contains approximately 11,000 acres. If the total area was annexed, the City's land area would be approximately 15,700 acres. The township currently has about 31,000 acres and would drop down to 20,000 acres if the entire long term planning area was annexed. Most of the property in the long term planning area is undeveloped land. Rick Wolfsteller stated that the future interchange at CSAH 18 and I-94 would impact growth in the area. The City needs to look at how to plan for this area and to provide for the infrastructure to handle that demand. Rick Wolfsteller indicated that the City's wastewater Special Council Meeting Minutes - 10/13/03 treatment plant even with an expansion would not be able to handle the additional 11,000 acres. It is estimated that with the expansion, the wastewater treatment plant could handle the flows for a population of 25,000-30,000. At the joint meeting with the township officials there was discussion on the land use plan for the township with township officials indicating they would be looking at some larger lot developments. This would impact the City's expansion and how they would plan for infrastructure needs. With facilities like the wastewater treatment plant where there is an investment of several million dollars it is important for the City to know what area they can serve. If there is no joint agreement with the township how can the City ensure that there are no roadblocks to development. Merger or consolidation would be one option. Designating an area that could be annexed would allow property owners to know how their property could be developed. Bruce Thielen said one question that would come up is how ag land coming into the City would be taxed. The City could create different taxing districts based on services provided. The property could be brought into the City incrementally but at the least the City could plan their facilities. Bruce Thielen noted the governor is urging communities to be creative in governing efficiently. The annexation of the long term growth area would allow the City to plan for infrastructure, control green space and more effectively deal with issues such as discharging to county ditch #33. Robbie Smith asked about the interchange and also Fallon Avenue and pointed out that County Road 37 could end up being a major road as far as traffic volume. There is long term planning that needs to be addressed as far as transportation issues. Brian Stumpf commented on the green boundary line of the long term planning area and questioned whether in setting that boundary line the City had verified that no parcels were being split. He felt it was important that property owners have their entire parcel either in the boundary area or entirely outside it. The staff concurred that where possible it made sense to include entire parcels but they cautioned against the having the line too fragmented. Chris Hood pointed out that the south boundary of the long term annexation area ran along County Road 37 and it is common to use roads as boundaries. Chris Hood felt the resolution could be amended to cover those types of cases where there were split parcels. Chris Hood stated the issues to consider were: 1) Area of annexation to be considered. The city needs to look both immediate and long term. Chris Hood noted currently around the metro area there has been a number of merger/consolidations citing specifically St. Michael and Frankfort Township and St. Cloud and St. Cloud township. Chris Hood said a merger between the City and township would be best and if that could not be accomplished the contested annexation would be the best route. Brian Stumpf questioned what would be the process if the City proposed to annex more than the area in the long term planning area. Chris Hood stated that if the contested annexation goes to a judge, the city would have to present evidence showing that the annexation meets certain criteria. Chris Hood felt from a legal standpoint the best case would be for City to annex the area set out. The contested annexation is the best option at this point. Bruce Thielen noted that if the resolution is adopted a mediator would be selected to work with the city and the township to mediate this issue. Brian Stumpf asked if the judge established the boundary line could the city go outside this boundary line if a property owner petitioned for 2 Special Council Meeting Minutes - 10/13/03 annexation. Chris Hood said they could using the same 60 acres process that is presently used by the city. Chris Hood summarized the process 1) determine land area; 2) adopt resolution at regular council meeting 3) the department of administration would set a hearing usually within 30 to 60 days 4) hearing is continued to allow mediation which could last from 60-120 days. The purpose of mediation is to work out a settlement agreement. Chris Hood noted contested annexations are time consuming, expensive and divisive. Chris Hood reviewed the decision standards and criteria for annexation. The judge has 90 days to make a decision after all the evidence has been presented. The judge can increase or decrease the area covered in the annexation area. He noted at this point there are not a lot of other options. Brian Stumpf asked who would be part of the mediation. Chris Hood indicated that it would be one or two representatives from the city and the township, legal counsel, planner and engineer. The mediator would be selected from a list supplied by the state. The extension of sewer, water and street systems are necessary for development and there needs to be assessment against the land improvement to get back a portion of the cost for these improvements. As far as planning it works better to plan for an area before it develops rather than after development starts to take place. He noted a PCA report that showed the cost of providing sewer and water was less when it was installed prior to development rather than retrofitting it. Glen Posusta asked if this was typical or if the City was being too aggressive or not aggressive enough? Chris Hood reviewed annexation contests that he was involved in and noted that there really wasn't a pattern on annexation issues. Chris Hood said the line may shrink or expand based on the mediation sessions with the township. Glen Posusta asked about limiting the annexation area to the east and west along the river rather than gutting out the middle of the township. Steve Grittman responded when they looked at the area they were looking at it as far as infrastructure and transportation issues. For that reason they took the growth area down to County Road 37 so they would not lose the transportation corridor. Glen Posusta asked if all the area was annexed would the city be able to provide the services. John Simola said they could contract for service such as snowplowing or handle it with part- time employees but he felt they could provide services such as snowplowing for the growth area. Rick Wolfsteller stated that by setting up a rural service taxing designation those properties receiving minimum service would probably end up with a tax rate very close to that of the township's. Brian Stumpf asked about the chances of the city and township resolving it without a mediator. Chris Hood indicated the chances are not good noting most of the cases involving a mediator have been settled. Bruce Thielen stated adopting the resolution would start the process for mediation and continued meetings with the township. Chris Hood then reviewed the resolution with the Council. Bruce Thielen then asked if the council was comfortable with the current boundary line. As far as procedure, Chris Hood Special Council Meeting Minutes - 10/13/03 stated the Council should adopt the resolution contingent upon staff developing a legal description consistent with the map and submitting it to the state. John Simola asked if staff would have time to review the map for split parcels and other concerns. Bruce Thielen stated he was not willing to wait for staff to come up with a recommendation. Chris Hood said they could call a special meeting if the council wanted to let staff review this. Steve Grittman stated it was the staff's intent to leave the Tyler East and Riverside Acre out of the long term planning area since they could be served off County Road 39. Bruce Thielen stated it made no sense to leave Tyler East as an island surrounded by the City. Bruce Thielen stated if the city includes the Dunes why not include Tyler East. Brian Stumpf asked for verification that even though a boundary line is established the City can consider annexation requests from property owners outside the area by petition. Roger Fink from Woodside Properties spoke. His question is if the resolution moves forward and the City submits the annexation resolution indicated, how would his property be handled. At the present time the property is not adjacent to any city limit. Chris Hood responded that annexation could take place by OAA agreement or going through the process the city is looking at. In reviewing the property indicted by Mr. Fink the Council felt a 50' sliver should be included in the green boundary area. Roger Carlson echoed Brian Stumpf s comments that the City is forced to go forward with this option at this time. The City has to plan for the future and if the City can save money by properly planning infrastructure needs then it should be done. Establishing different taxing districts based on services received will protect those properties coming in. Chris Hood stated that after the matter comes to trial the fiscal impact of the annexation would have to be laid out. Bruce Thielen suggested Chris Hood, Steve Grittman and staff come up with a white paper that will address the concerns of resident who would be coming into the city. Glen Posusta stated he didn't like the process as it felt like the City was going behind the townships back. Since the City is ultimately going to have to meet with the township he would prefer not to have to go this route. Chris Hood concurred but emphasized that this is the only route that remains. Glen Posusta stated he felt the City was using a heavy hand. Roger Carlson noted that lot of different options could come out of the mediation sessions. Bruce Thielen stated that the Council by this resolution defines the process. He noted the resolution is on the agenda for the regular meeting. 3. Adjourn BRIAN STUMPF MOVED TO ADJOURN THE WORKSHOP AT 6:30 P.M. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. r Recording Secretary 11