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City Council Minutes 05-26-1981MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL May 26, 1981 - 7:30 P. M. Members Present: Arve Grimsmo, Dan Blonigen, Phillip White, Fran Fair, Ken Maus. Members Absent: None 1. Consideration of Rezoning Lot 5 Except the Easterly 20 feet of Block 16, Lower Monticello, from R-1 to R-2 and a Variance from the Minimum Lot Size - Richard and Delores Guille. Mr. and Mrs. Richard Guille requested that their property located on East River Street across from Ellison Park be rezoned from R-1 (single family residential) to R-2 to allow the home to be rented out as a duplex. The particular lot and home in question has 9787=2 square feet of property and as a result, a variance was also requested from the minimum lot size requirements of 10,000 square feet for a duplex. The Guilles presently reside in the upper level of the dwelling and a relative of Mrs. Guille's resides in the lower level, but Mrs. Delores Guille indicated that they were planning on moving away from Monticello and felt that the property would be best suited as a rental dwelling rather than to sell it at the present time. Mr. Bill Sandberg, abutting property owner, expressed his opposition to the zoning request and also indicated to the council that he felt that when this home was orignally built in 1976 that it was apparent at that time that the home was planned to be used as a duplex since the stairway was not installed from the lower level to the upper level. The Planning Commission at their last meeting recommended that the rezoning request be denied based on the opposition from the neigh- bors and a petition received from the neighbors. Motion was made by White, seconded by Fair and unanimously carried to deny the rezoning request from R-1 to R-2 along with the vari- ance from the minimum lot size requirement. 2. Consideration of Rezoning a Portion of Country Club Manor From B-3 (Highway Business) to R-3 (Medium Density Residential) - Marvin George Builders. Mr. Marvin George requested that Outlot A of Country Club Manor be rezoned from B-3 to R-3 to allow for the development of a townhouse project he is considering. The property consisting of approximately 16 acres had been previously zoned R-1, single family residential, but was later rezoned to B-3 upon the request of the previous land owner, Mr. Howard Gillham. Mr. George now feels that this property - 1 - Council Minutes - 5/26/81 is not well suited for commercial development and requests that this property be rezoned to multiple family density property which he felt would be a good development for the area adjacent to the a freeway and abutting single family residential property. This medium density zoning would provide a buffer between the freeway and the present Country Club Manor single family homes. The Planning Commission recommended that this property be rezoned to multiple family zoning although two abutting property owners, Phyllis Ruff and Tim Genung felt that there were enough multiple family homes in Monticello and also Mrs. Ruff felt that with more residences' in the area, there may be more pressure on the salvage yard to be removed once the area is densely populated. Motion was made by Fair, seconded by Maus to rezone Outlot A of Country Club Manor from B-3 (commercial) to R-3 (multiple family residential) for the development of the 16 acres into a planned unit development consisting of 26 four unit dwellings. Voting in favor was: Fair, Maus, Grimsmo, and White. Opposed: Dan Blonigen. (See Ordinance Amendment 5/26/81 #99). 3. Consideration of a Conditional Use Permit for a Planned Residential Unit Development - Marvin George Builders. In reference to item #2, Marvin George Builders requested a con- ditional use permit for a planned unit development consisting of 26 four unit townhouses. The preliminary plan for the townhouses indicate that there would be six cul-de-sacs leading to the develop- ment and it was the concensus of the City Council not to favor accept- ing these cul-de-sacs as dedicated roads but rather the responsibilites of the development. The development plan also proposes that trees will be planted either along the freeway as a buffer or in a circular pattern around each six unit development area as a buffer. Some concerns were expressed by the council relative to whether there is already plenty of R-3 land available for development in the city and concerns whether this additional R-3 zoning for multiple town- houses is necessary under the current economic conditions. The conditional use permit request would only be for the general concept stage and the City Council would have to give approval on a step by step basis before any actual development would occur under this plan. Mr. Tim Genung and Phyllis Ruff both expressed opposition at the Planning Commission meeting to the conditional use permit for the townhouse development with their concerns being similiar to that of the rezoning request previously made. Motion was made by Fair, seconded by Maus to approve a conditional use permit for a residential planned unit development for Outlot A of Country Club Manor as proposed. Voting in favor: Fair, Grimsmo, White and Maus. Opposed: Blonigen. - 2 - Council Minutes - 5/26/81 4. Consideration of a Conditional Use Permit Request for a Residential Planned Unit - Linn Street Manor Townhouse Project. Mr. Ralph Munsterteiger requested a conditional use permit for the general concept stage of a planned unit development consisting of 7 four unit townhouses located east of the present Ridgemont Apart- ments. The general concept plan for this development proposes to extend Linn Street south from Sixth Street through the property to eventually tie into the proposed collector road which would be an extension of 7th Street. Once the general concept plan is accepted by the city, approval of the City Council would be required for each additional stage of the development once the plan is coor- dinated with the city planner, city engineer and city staff in regards to sewer and water locations, etc. At the public hearing held by the Planning Commission recently, no comments were heard on this development and as a result a motion was made by White, seconded by Blonigen and unanimously carried to approve a request for a conditional use permit for a residential planned unit development to be known as Linn Street Manor Townhouse Project. 5. Consideration of a Variance to Construct a Billboard - Blocher Outdoor Advertising. Blocher Outdoor Advertising was requesting a variance to allow the construction of a billboard of Lot 12, Block 2, Lauring Hillside Terrace, but prior to the meeting the request was with drawn by Mr. Blocher. 6. Consideration of a Simple Subdivision Request - John Sandberg. Mr. John Sandberg, representing the owner of Lot 6, Block 1 of Sandberg Riverside addition, requested a simple subdivison which would reduce the size of Lot 6 from 18,000 square feet to 12,000 square feet. The additional 6,000 square feet would be added to Lot 5 of Block 1, Sandberg Riverside addition. If this simple subdivision were to be approved, Lot 6, Block 1 would still meet the city's minimum lot size requirement of 12,000 square feet and additionally the set back for the existing home on Lot 6 would still be greater than the 10 foot requirements on the side yard, etc. Some concerns were expressed by council members regarding the eventual purpose and use of Lot 5 now that it was becoming quite large in size and as a result a motion was made by Blonigen, seconded by White to deny this subdivision request. Voting in favor of the denial was Blonigen and White. Opposed: Grimsmo, Maus and Fair. - 3 - Council Minutes - 5/26/81 A motion was then made by Maus, seconded by Fair to approve the simple subdivision request contingent upon granting and recording of new easements and vacation of existing easements at the expense of the property owners involved. Voting in favor of the motion was Grimsmo, Maus and Fair. Opposed: Blonigen and White. 7. Consideration of a Resolution Approving the Annexation of a 120 Acre Parcel Owned by Kent Kjellberg. Mr. Kent Kjellberg filed a petition for annexation with the city to annex a 120 acre parcel of land adjacent to the city. The parcel of land exists just south of the property owned by John Lundsten and is bounded on the west by Hwy 25 and the east by property owner Francis Klein. The property is presently located in the orderly annexation area and as part of this area the city itself cannot initiate annexation proceedings, but can adopt a resolution in support after a petition has been filed by the property owner with the city. Mr. Jim Metcalf, attorney representing Kent Kjellberg, indicated the primary reason for their annexation request was that any development of this property would probably require city services such as sewer and water and that they would rather be under the control of the city's ordinances in regard to development rather than through the county and township regulations. In addition, Mr. Metcalf indicated that one possible use of a portion of this property may be for the development of the Rivercrest Christian School which has indicated an interest in purchasing some of this property. Previously, the Christian School has had problems in ob- taining the necessary permits to build a school in the township and as a result have expressed interest in a portion of Mr. Kjellberg's property if it is annexed into the City of Monticello. Mr. Metcalf also indicated that if the city did not support the annexation of Mr. Kjellberg's property, Mr. Kjellberg would probably not pursue the request for annexation to the State Municipal Board for a determination since he would rather not fight both opposition from the township and the city in regard to annexation. The State Municipal Board has the final authority for determining whether the property is annexed into a city, but if both the city and the township are not in support of the proposed annexation, it is unlikely that the State Municipal Board would approve the annexa- tion without the city's support. Concerns were expressed by the council that there already may be plenty of land available for commercial, industrial and residential development within the city and that the annexation of this property may be premature in nature. As a result, no action was taken by the council in support of the annexation request at the present time. - 4 - Council Minutes - 5/26/81 8. Consideration of Obtaining Easement for Improvement Project on West River Street. As part of a recent request for sewer and water improvements along with street paving to serve Northern States Power's training facility located on West River Street, an easement was necessary either from Edgar Klucas or the Meadows Subdivision property for the extension of sewer and water improvements to serve NSP's property. Plans and specifications for this improvement project have been tabled until such time when an easement could be obtained for the extension of the services. Recently, Mr. Mel Wolters, owner of the Meadows Subdivision, has indicated that he would be willing to grant the City of Monticello the entire easement necessary for the extension of sewer and water to West River Street providing the following conditions were granted by the city: An award of $5,000.00 for easement rights. Deferral of the assessments to that portion of the Meadows Subdivision which would be served as a result of the extension of sewer and water to NSP that were not originally petitioned for by Mr. Wolters. The request for the deferral was for one year including interest. Although the entire easement would be obtained from Mr. Wolters, he also requested that Mr. Edgar Klucas would be treated fairly in regard to the proposed assessments on his property as a result of the improvements. It was recommended that any assessments as a result of the improve- ment project against Mr. Klucas's property be deferred with interest until such time as any portion of his property would be plotted or required to have sewer and water service according to city ordinances. At the time the land would be plotted or require services, the prin- cipal plus a--crued interest would run an additional ten years from the date of plotting. Mr. Jim Metcalf, representing Mr. Edgar Klucas, indicated that his client would not actually benefit from the deferral of assessments since he would already be eligible for the deferral under the green acre status of his property. Mr. Metcalf also felt that the amount of assessments proposed in the amount of $41,000.00 may be excessive in that the improvements would not increase the value of his property by $41,000.00. 5 - Council Minutes - 5/26/81 It was noted that any deferral of assessments or actual dollar amounts of assessmentsagainst the property would have to be determined at the assessment hearing and therefore, a motion was made by White, seconded by Blonigen and unanimously carried to authorize the city to obtain the necessary easement from Mel Wolters in the exchange for $5,000.00 and deferral of one year assessments on those lots affected by the second phase improve- ment project and to order final plans and specifications for the proposed sewer, water and street improvements to be known as 1981-1 Improvement Project to be approved by the City Council on June 8, 1981 and to advertise for bids returnable by June 19, 1981. (See Resolution 1981-1 #17 & #18). 9. Consideration of Approval for Plans and Specifications on Cedar Street Storm Sewer Improvement from Burlington Northern Railroad Tracks to East 7th Street. Previously, on March 23rd, 1981,a public hearing was held on the proposed storm -sewer improvement project along Cedar Street to eliminate potential drainage problems in this area. Development in the Lauring Hillside area along with the proposed Scotwood Motel has increased the water run off in this area and Mr. Wilbur Eck who lives adjacent to the railroad tracks has indicated that problems have existed near his home. At the March 23rd public hearing, the paving of Cedar Street, along with the extension of storm sewer pipe to service the V.F.W. Club were eliminated from the project. The total cost of the project is estimated to be $120,492.00 to be assessed to the abutting property owners benefiting from the improvement. Motion was made by Maus, seconded by White and unanimously carried to order the preparation of final plans and specifications for the improvement project to be known as 1981-2 Storm Sewer Improvement Project. In addition, a motion was made: by Phil White, seconded by Fair and unanimously carried to approve the final plans and specifications contingent upon approval of the plans and specifications by John Simola, Public Works Director, and to combine this project with the 1981-1 Improvement Project and to advertise for bids returnable by June 19, 1981. (See Resolution 1981 #19 & #20). - 6 - Council Minutes - 5/26/81 10. Consideration of a Resolution to Call for a Public Hearing In- creasing the Amount of Industrial Revenue Bond for the Scotwood Motel Project from $750,000.00 to $1,250,000.00. Mr. Geoffery Rogers of Miller and Schroeder Municipals, on behalf of the developers of the proposed Scotwood Motel requested that the city hold another public hearing on the consideration of increasing the amount of industrial revenue bonds previously approved from $750,000.00 to $1,250,000.00. According to Mr. Rogers, the cost of the proposed project has increased due to inflation and the developers are also proposing an additional 12 rooms to the 36 unit project making a total complex of 48 units. The bond council for the developers have indicated that a new public hearing date would have to be set prior to the approval of the new industrial bond amount. Motion was made by Fair, seconded by Maus to adopt a resolution for a public hearing on June 22, 1981 for the purpose of increasing the industrial revenue bonds for the development of the Scotwood Motel from $750,000.00 to $1,250,000.00. Voting in favor was Fair, Maus, Grimsmo, White. Opposed: Blonigen. (See Resolution 1981 #20A) 11. Consideration of Approval of Contract Between the City of Monticello and Gwen Bateman for Dog Patrol Service. Gwen Bateman's current contract with the city for providing dog patrol services expires May 31, 1981 and a new two year contract was proposed consisting of the following changes: Increasing the fee from $7.50 per hour effective June 1, 1981 to $8.25 per hour effective June 1, 1982. This would result in an approximate 11% increase the first year and a 100 increase the following year. A provision has been added to the contract where Gwen is authorized to pick up injured animals and if the owner cannot be found to have the animal euthanized if it is be- yond treatment. In regard to the new provision in the contract, it was recommended that the wording be changed to allow Gwen the authority to dispose of injured animals if the animal was untaged and the owner could not be found. Motion was made by Fair, seconded by Blonigen and unanimously carried to approve the new two year contract for dog catching services with Gwen Bateman as presented. (See Supplement 5/26/81 #1) . - 7 - Council Minutes - 5/26/81 12. Review of the Audit for the Year Ending December 31, 1980. Mr. Rick Borden, partner with Gruys, Johnson and Associates, re- viewed with the City Council the recently completed 1980 auit re- port. After the audit was reviewed by Mr. Borden with the council, motion was made by White, seconded by Blonigen and unanimously carried to accept the audit report for 1980 as presented. 13. Consideration of Widening West 7th Street Between Hwy 25 and Cedar Street. At the previous council meeting, additional information was requested by the council on the possibility of widening 7th Street between Hwy 25 and Cedar Street from 24 feet to either 34 feet or 40 feet to match Lauring Lane. John Simola, Public Works Director, reported to the council that it was estimated to cost approximately $7,000.00 to widen 7th Street from 24 feet to 34 feet or approximately $11,300.00 to widen the street to a 40 foot width to match Lauring Lane. Mr. Simola also noted that to widen the street to as much as 40 feet would require a retaining wall to be built along the north side of the street abutting the cemetery property to achieve a six foot shoulder. It was reported by the city engineer that the additional cost of a retaining wall depending on the type and design could be as much as $14,000.00 to $22,000.00 depending on whether it would be made of wood or concrete. Since this improvement project was not budgeted for in 1981 and funds may not be readily available for this project, it was the concensus of the council that this i -t --em could be budgeted for in 1982. It was noted at the present time that Perkins Restaurant will be requested to remove their landscape timbers located on the city right-of-way to make the street wider and alleviate traffic hazards. 14. Consideration of Appointment of Library Board. According to the recently enacted ordinance, the mayor recommended five members to be appointed to serve on the Library Board. Two of the members would hold office until December 31, 1981, two of the members would hold office until December 31, 1982, and one member's term would expire December 31, 1983. The individuals recommended are as follows: Loren Klein (3 years) Dr. Don Maus (2 years) Dr. Joel Erickson (1 year ) Mrs. Pat Schwarz (2 years) Erwin Kallin (1 year ) Council Minutes - 5/26/81 It was the concensus of the council that the newly appointed Library Board would work in an advisory capacity to the council in respect to the interior design along with selecting carpeting, shelving, and furnishings and fixtures for the new library. The council would have the final authority in despersing funds and selecting the options recommended by the committee. Motion was made by Fair, seconded by White and unanimously carried to appoint the above listed board members in terms as presented. 15. Consideration of Approval of Intoxicating Liquor, Non -Intoxicating Malt Liquor, Club Liquor and Set -Up Licenses. The current non -intoxicating on -sale liquor licenses, intoxicating on -sale liquor licenses, and non -intoxicating off -sale liquor licenses along with the set-up licenses and club licenses expire on June 30, 1981. The current fee for non -intoxicating on -sale malt liquor is presently $100.00 and it was recommended that this fee be increased to $200.00 annually. Also the intoxicating on -sale liquor licenses presently are $2500.00 annually and since there has been no increase in this fee since 1975, it was recommended that this fee be increased to $3,000.00 annually. A motion was made by Phil White, seconded by Blonigen and unanimously carried to increase the fees for these two license cata- gories as recommended. (See Ordinance Amendment 5/26/81 #100) Motion was made by White, seconded by Maus and unanimously carried to approve the following licenses to expire on June 30, 1982. A. Non -Intoxicating On -Sale Malt Liquor License (Fee $200) Friends Cafe Monticello Rod & Gun Club Pizza Factory Motion was made by White, seconded by Fair and unanimously carried to approve the following licenses until June 30, 1982. B. Intoxicatinq On -Sale Liquor License (Fee $3,000) Monticello Liquors, Inc. Silver Fox Motel Wayside Inn Joyner's Lane - 9 - *,_j Council Minutes - 5/26/81 Motion was made by White, seconded by Maus and unanimously carried to approve the following licenses that will expire June 30, 1982. C. Non -Intoxicating Off -Sale Malt Liquor License (Fee $30) Monticello Liquors, Inc. Ernie's Bait Shop Wayne's Red Owl Maus Foods River Terrace Trailer Park Store Tom Thumb Superette Wayside Inn B. J. Discount Market Holiday Station D. Set -Up License (Fee $200) Monticello Country Club E . Club License (Fee $200) American Legion Club V.F.W. Club 16. Consideration of a Variance for a Certificate of Occupancy - Reinert's Hillside Apartments. Reinert Construction Company, builders of the Reinert Hillside Terrace Apartments requested a certificate of occupancy for one townhouse unit to be occupied by one of their employees for security purposes. While this development is not fully completed, the developer would like to have a caretaker occupy one unit on site until construction of the entire project is completed. Motion was made by White, seconded by Fair and unanimously carried to approve the certificate of occupancy for the one townhouse unit to be occupied by an employee of Reinert Construction Company. It was noted by the building inspector that a complete schedule re- garding future completion and occupancy schedules will be worked out with Reinert Construction Company for the development. 17. Approval of Bills for May 1981 and Approval of Minutes. A motion was made by Maus and seconded by White and unanimously carried to approve the bills for May 1981 as presented and to approve the minutes of the regular meeting held May 11,1981 and the special meetings held May 4 and May 8, 1981. (See Supplement 5/26/81 #2) - 10 - Council Minutes - 5/26/81 18. Discussion on Improvements to Hart Boulevard - Monticello -Big Lake Hospital. As part of the recently started construction of the expansion of the parking lot south of the Monticello -Big Lake Hospital, the hospital has authorized the contractor to perform the street work along Hart Boulevard without the city's approval. The street work was being done by the hospital in an effort to reshape the road to match the newly constructed elevation of the parking lot but the city has currently stopped the contractor from preceding with additional work. It was the recommendation of the public works department that rather than have the street reshaped and sloped to match the existing parking lot that the entire street be brought up to city specifications in- cluding curb and gutter. The approximate length of the street improve- ment would be about 115 feet and it was recomended that the city share in the cost of repaving the north half of the street in the amount of 500 of the cost with the entire curb and gutter improvement being paid for by the hospital district. As a result, the hospital would be paying for both sides of the street as far as curb and gutter is concerned and the city would only be sharing in 50% of the cost of redoing the north half of the street for paving. Motion was made by White, seconded by Maus and unanimously carried to have the city engineer prepare plans and specifications for the street improvement with the approval of the City's Public Works Department requiring that curb and gutter be placed on both sides of Hart Boulevard with the city picking up 50% of the cost of paving the north half of the street section or approximately 25% of the total street paving cost. Meeting adjourned. Rick Wolfsteler Assistant Ad inistrator