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City Council Minutes 04-12-1993MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, April 12, 1993 - 7 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Patty Olsen Members Absent: None 2. Consideration of approval of minutes of the regular meeting held March 22, 1993. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the minutes as submitted. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Public Hearing --Consideration of adopting a resolution relating to the modification by the Housing and Redevelopment Authority (HRA) of the Redevelopment Plan for Redevelopment Project No. 1, the modification of plans for Tax Increment (TIF) Districts No. 1-1 through 1-14, and the establishment of Tax Increment Financing District No. 1-15, all located within Redevelopment Project No. 1. Economic Development Director, 011ie Koropchak, reviewed the Custom Canopy TIF program and detailed the pay-as-you-go formula. The public hearing was opened. There being no public comment, the public hearing was closed. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to adopt a resolution relating to modification by the HRA of the Redevelopment Plan relating to Redevelopment Project No. 1, the modification of TIF plans relating to TIF Districts No. 1-1 through 1-14, and the establishment of TIF District No. 1-15, all located within Redevelopment Project No. 1, and the approval and adoption of the TIF plans relating thereto. Motion carried unanimously. SEE RESOLUTION 93-12. Page 1 Council Minutes - 4/12/93 5. Consideration of Greater Monticello Enterprise Fund (GMEF) Loan No. 006 (Stephen P. and Joan M. Birkeland, Jr.) dba Custom Canopy, for compliance with GMEF Guidelines. 011ie Koropchak reported that the Economic Development Authority has recommended approval of issuance of an enterprise fund loan to Custom Canopy. Koropchak noted that the loan recommended for approval by the EDA is for $42,500 at a 4.51-/c fixed rate amortized over 20 years with a balloon payment in 5 years. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to approve GMEF Loan No. 006 for Stephen P. and Joan M. Birkeland, Jr., dba Custom Canopy, based on the finding that the loan is consistent with the GMEF Guidelines. Motion carried unanimously. 6. Consideration of authorization to transfer UDAG funds for Greater Monticello Enterprise Fund Loan No. 006 disbursement. 011ie Koropchak reported that liquor store funds available for the loan in conjunction with the GMEF program have been depleted due to the success of the program and due to use of liquor store funds for other purposes. Koropchak noted that an alternative source of funds, namely, funds available through the UDAG loan payback, is available for use in conjunction with the GMEF program. Koropchak stated that the UDAG payback balance as of January 31, 1993, is $77,780. The anticipated annual payback through January 2000 is $27,971. She went on to note that within the original UDAG grant application, the principal and interest loan payback was earmarked for economic development. Use of UDAG funds in conjunction with economic development revolving loan funds is, therefore, consistent with the purpose of the original UDAG grant. Ken Maus stated that it's good to see the grant money recycle and be used again in economic development efforts. After discussion, a motion was made by Shirley Anderson and seconded by Patty Olsen to transfer $42,500 from the UDAG fund to the Greater Monticello Enterprise Fund in conjunction with the approval of Loan No. 006. Motion carried unanimously. Page 2 Council Minutes - 4/12/93 7. Public hearing on improvement proiect 93-02C, Cardinal Hills 3rd Addition, and consideration of a resolution awarding project. John Simola reported that the project consists of utilities, street construction, drainage pond construction, and grading for a 50 -lot addition to the Cardinal Hills residential subdivision. Also incorporated with the project is about 1/4 mile of 8 -ft bituminous walkway located on the north side of School Boulevard. The engineer's estimate for construction cost was approximately $555,000. The City received 19 bids ranging from a low of $513,280 to a high of $793,739. The apparent low bidder is Ryan Contracting from Burnsville, Minnesota. Assistant Administrator O'Neill reviewed the design, location, and cost of the proposed pathways along the north side of School Boulevard and outlined a proposed formula for funding pathway development. Discussion regarding distribution of pathway cost ensued. No consensus was reached. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to award the project to the low bidder, Ryan Contracting of Burnsville, Minnesota, based upon a bid amount of $506,588, which includes construction of the segment of pathway leading from Eider Lane to Little Mountain School and does not include the pathway leading from Pelican Avenue to the Middle School. Motion carried unanimously. SEE RESOLUTION 93-13. 8. Consideration of approval of the final plat of Cardinal Hills residential subdivision. Assistant Administrator O'Neill reported that the final plat is consistent with the previously -approved preliminary plat; however, the City Engineer review has noted the need for additional utilities easement along the east side of Block 2, Lot 15, and 15 ft along the west side of Block 2, Lot 16. The engineer's review also outlined the need to enlarge the size of drainage easement areas. These changes affected Lots 1, 2, 10, 11, 12, 13, 14, 15, and 16, Block 2, and Lots 3, 4, and 5, Block 4. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to grant approval of the final plat of phase III of Cardinal Hills residential subdivision contingent on the following: 1. Execution of the development agreement, which includes the developer providing all financial securities associated therein; 2. Completion of modifications to the final plat as defined by the City Engineer. Motion carried unanimously. Page 3 Council Minutes - 4/12/93 9. Consideration of adoption of Cardinal Hills development agreement. Assistant Administrator O'Neill requested that Council consider adoption of the Cardinal Hills development agreement, which governs terms and conditions associated with installation of public improvements. O'Neill noted that the agreement governing phase III is very similar to the agreements that were approved with phases I and II; however, phase III requires that the developer provide a letter of credit to cover the cost of tree planting. In addition, the agreement includes a provision which requires that the developer provide the City with a letter of credit in an amount equal to do site grading, which is included with the public improvement project. The agreement requires that the developer pay the City for costs associated with site grading as the site grading bills come due. This letter of credit is necessary to guarantee this payment. Tom Holthaus, representing Value Plus Homes, Inc., of Monticello, indicated that he had no objections to the development agreement as written. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the development agreement governing terms and conditions associated with development of phase III of the Cardinal Hills residential subdivision. Motion carried unanimously. 10. Consideration of a resolution declaring intent to reimburse proiect cost through future bond sale. Rick Wolfsteller reported that the City should consider adopting the resolution stating that it may reimburse itself through a bond sale in the future. New IRS regulations require that this official resolution be approved if any expenditures are made for engineering or construction prior to an actual bond being sold. Wolfsteller went on to note that there is not an immediate need by the City to proceed with a bond sale prior to actual work commencing with Cardinal Hills. The City does have sufficient cash flow available to pay for some of the engineering cost and also some of the contract amounts before needing to involve Springsted, Inc., in selling a bond for this project. The City has up to a year after the project is completed to sell a bond if it wishes to reimburse itself for any costs associated with construction. Since the City does have funds available for allowing the project to start without an immediate bond sale, it may be beneficial to wait before involving Springsted and that there may be other projects that could be combined with one bond sale later on. For example, the Council may be in. the future looking Page 4 Council Minutes - 4/12/93 at an improvement project for storm sewer from Hart Boulevard to the Mississippi River in conjunction with the Monticello Clinic expansion. This project would qualify to be combined with the Cardinal Hills improvements under one bond issue, thus saving issuance cost. Since we can sell an improvement bond anytime within one year after completing a project, the timing will depend on whether other projects are in line to be constructed or depending on cash flow needs of the City. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to adopt a resolution indicating an intent to reimburse ourselves through C:Pfuture issue for the Cardinal Hills phase III improvement project. Motion carried unanimously. SEE RESOLUTION 93-14. 11. Consideration of a request to amend the Monticello Zoning Ordinance by rescinding Section 20-2 [C], which requires that planned unit development proposals must include an area of at least 3 contiguous acres. Steve Grittman of Northwest Associated Consultants noted that the zoning ordinance currently requires a minimum 3 -acre site for. PUD application. In his opinion, this standard is an antiquated one which no longer applies to contemporary development. A PUD, or planned unit development, should be able to stand on its own merits regardless of lot size, or it should not be approved. Many cities have acted to delete this requirement; therefore, he recommended that the 3 -acre threshold for PUD's be deleted. Ken Maus asked if eliminating the 3 -acre minimum would come back to haunt us. He was concerned that attempts to use the planned unit development concept as a method to circumvent the ordinance would be more likely to occur without the 3 -acre minimum. Brad Fyle expressed the same concern. Grittman reiterated that minimum lot size is not relevant to determining whether or not a planned unit development should be acceptable or not. A planned unit development must stand on its own merits. Benefits gained by allowing a planned unit development must exceed negative effects of granting variances to site plan performance standards. After discussion, a motion was made by Patty Olsen and seconded by Shirley Anderson to approve a request to amend the zoning ordinance by rescinding Section 20-2 [C], which requires that planned unit development proposals include an area of at least 3 contiguous acres. Voting in favor: Patty Olsen, Shirley Anderson, Ken Maus, Clint Herbst. Opposed: Brad Fyle. SEE ORDINANCE AMENDMENT NO. 237. Page 5 Council Minutes - 4/12/93 12. Consideration of a conditional use permit allowing a commercial PUD in a B-3 zone, and a variance request allowing pylon sign height in excess of 32 -ft maximum. Applicant, Taco Bell/Willard Murphy. Steve Grittman stated that a planned unit development is a process under which the City adopts a flexible approach to certain performance standards with the expectation that the resultant project will be more creative in its design and generally superior to that which could have been accomplished under the strict enforcement of the performance standards. In this case, he does not believe that the plan as submitted meets that expectation. A more thorough treatment of the AmericInn site should be accomplished, and the site plan should better integrate the uses than it does now. As designed, the two uses appear to ignore each other rather than act as a planned unit. If a site plan can be developed which more closely meets these objectives, then we believe the use of a PUD would be appropriate and approvable. Grittman went on to state that the request should be tabled pending a more enhanced site plan. With regard to the sign height variance, Grittman did not believe that a finding of hardship or uniqueness can be made. He recommended denial of the sign height variance and encouraged the applicant to pursue alternative identification methods if the 32 -ft height is deemed to be inadequate for its advertising purposes. City Council reviewed the site plan with the landscape architect in attendance and reviewed sign height issues. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to approve the conditional use permit allowing a commercial PUD in a B-3 zone contingent on development of a site plan that is creative in design and generally superior to that which could have been accomplished under strict enforcement of the performance standards as approved by the City Planner. Motion carried unanimously. A motion was made by Clint Herbst and seconded by Brad Fyle to approve the variance to the sign height maximum. The variance to the sign height maximum is deemed acceptable, as it would allow placement of a sign on an existing pylon, thereby reducing clutter created by the need to develop a new pylon; and the size of this sign as proposed is 97 sq ft, which is 103 sq ft less than the maximum sign area allowed on a separate pylon. The unique benefits derived from granting the variance serve to protect the intent of the ordinance governing sign height. Motion carried unanimously. Council Minutes - 4/12/93 13. Public Hearing --Consideration of vacating easement --Old Cedar Street right-of- way. Applicant, Taco Bell/Willard Murphy. Assistant Administrator O'Neill stated that the owner of the AmericInn property requested the City consider vacating a 1,500 sq ft portion of the Cedar Street right-of-way, which is necessary in order to allow placement of the Taco Bell facility as described in the site plan. O'Neill noted that according to John Simola, the City does not need the entire easement for utility purposes; however, Bridge Water Telephone Company does have a telephone line within 2 ft of the proposed east wall of the Taco Bell. Any motion to vacate the easement should be contingent on the applicant paying the cost to move the phone line to a better position along the remaining easement. O'Neill also noted that the City sold the original Cedar Street in 1981 at a price of $.39 per sq ft. The price was reduced due to the presence of the easements. O'Neill noted that the City may wish to request payment for the easement in light of the fact that the original selling price of the land was low due to its being encumbered. John Scherr, representing Willard Murphy, indicated that any formula used for establishing the price of the easement area should include a credit for that amount that Murphy has already paid for the land on which the easement is located. It was the consensus of Council to use the existing sale price of $.39 per sq ft and adjust this amount for inflation and use it as a credit against the price of the easement area. After discussion, a motion was made by Brad Fyle and seconded by Patty Olsen to approve vacation of 18 ft of the 40 -ft easement along the Cedar Street right-of-way contingent on the following: 1. Bridge Water Telephone relocation of the telephone line at the expense of the developer. 2. Cash payment to the City equal to $3 times the square footage of the easement vacation area (1,575) minus the original selling price of the easement area after adjustments for inflation. Page 7 Council Minutes - 4/12/93 3. Preparation of a document which makes the Taco Bell property owner responsible for paying all potential costs associated with repair or removal of driveway surfaces that would be necessary in the event repairs are needed to existing underground utility systems. Motion carried unanimously. 14. Consideration of public works phase II facility study and cost estimates. John Simola reported that in order for the City to proceed with development of phase II, we need to complete the phase II facility report and cost analysis. We must look at how the plan will integrate if broken into sections to allow us financial flexibility; therefore, he recommended that we move ahead with the feasibility study and cost analysis for phase II of the public works facility for a lump sum of $2,100. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to authorize a feasibility study and cost analysis for phase II of the public works facility at a lump sum cost of $2,100. Motion carried unanimously. 15. Consideration of preliminary approval of the replat of phase I of the Evergreens subdivision. Assistant Administrator O'Neill stated that the proposed replat modifies the plat approved in 1989 by removing six lots in order to provide room for the future extension of School Boulevard from the Kline property through to Highway 25. Once preliminary approval of the proposed replat is granted, City staff will be working with the City Attorney to develop an updated development agreement which would result in City acquisition of School Boulevard roadway easement. After discussion, a motion was made by Shirley Anderson and seconded by Patty Olsen to grant preliminary approval of the replat of phase I of the Evergreens. Motion carried unanimously. 16. Consideration of proposed budget for West Bridge Park warming house/restrooms and authorization to proceed. John Simola reported that at the previous meeting, Council authorized staff to work with TKDA to redesign portions of the proposed warming house in an effort to reduce cost. Council also authorized staff to act as the general contractor and obtain quotes for labor and materials for construction of the warming house. Page 8 Council Minutes - 4/12/93 The total estimated cost for all materials and outside labor amounts to $55422. The work to be performed by City staff includes project management and inspection, backfilling of footings, installation of sewer and water service pipes and compaction of service line trenches, pouring of exterior sidewalk around building, installation of tongue and groove paneling in warming room half walls and vaulted ceiling, painting of the exterior siding and soffits, doors, and interior ceilings, application of sealant to the burnished block, tongue and groove paneling and floors. Brad Fyle noted that the cost is now near budget, and a new facility is needed at Bridge Park; therefore, he supports authorization to proceed. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to construct the West Bridge Park warming house/restroom building based upon the estimated budget of $55,422. Voting in favor: Ken Maus, Shirley Anderson, Brad Fyle, Patty Olsen. Opposed: Clint Herbst. 17. Consideration of a request for (1) day setup/3.2 beer license for Ducks Unlimited Banquet and one (1) day 3.2 beer license for the July Riverfest celebration --Lions Club. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to grant the licenses as .requested. Motion carried unanimously. 18. Consideration of a resolution authorizing application for ISTEA enhancement funds. Assistant Administrator O'Neill informed Council that the Parks Commission requests that City Council consider adoption of a resolution supporting application for ISTEA (Intermodal Surface Transportation Enhancement Act) funds necessary to build an off-road pathway connecting Monticello in an east/west fashion along the CSAH 75 corridor. The application for federal funds available for pathway development has been designed in response to the citizen survey, which indicated the need for improved bike and path systems. The off-road path along CSAH 75 will allow safe pedestrian/bike access to the existing sidewalk grid system and provide safe access to important points of destination, which include the high school, downtown, Pinewood School, Magic Kingdom Playground, NSP ballfields, and Montissippi Park. Included in the grant application are limited plans for landscaping and pathway beautification. O'Neill noted that the total cost of the project is estimated at $283,579. The proposed resolution calls for a City contribution of 25% of the project cost, which is $95,064. Page 9 Council Minutes - 4/12/93 After discussion, a motion was made by Brad Fyle and seconded by Patty Olsen to adopt a resolution authorizing application for ISTEA enhancement funds. Motion carried unanimously. SEE RESOLUTION 93-15. 19. Consideration of a conditional use permit which would allow the expansion of an existing clinic building in a PZM (performance zone mixed) zone. Applicant, Monticello -Big Lake Community Hospital District. Assistant Administrator O'Neill reported that the Monticello -Big Lake Community Hospital District purchased the clinic building located directly east of the existing hospital. In conjunction with the purchase, the hospital district is proposing to nearly double the size of the existing facility. The clinic addition will mirror the existing building in appearance. In order to expand the clinic as proposed in a PZM zone, the hospital district must first obtain a conditional use permit. O'Neill went on to review the site plan in terms of its design and impact on the area. He reported that the number of parking stalls proposed with the clinic expansion meets the needs of the demand created by the clinic expansion; however, the site as a whole, including the nursing home and hospital, remains 45 stalls short of the minimum number of parking stalls required. Ken Maus noted that the clinic expansion and the potential for congregate senior housing in the area will result in increased traffic and parking demand in the area. In addition, use of River Street for vehicle and truck access to the nursing home parking and loading dock areas creates conflicts with residential uses along River Street. Maus emphasized the need to develop a long-term plan that would improve the traffic flow, parking, and general site organization. Brad Fyle concurred. He noted that an attempt should be made to provide direct access from Hart Boulevard to the nursing home without using River Street. After discussion, a motion was made by Brad Fyle, seconded by Clint Herbst, and unanimously carried to approve the conditional use permit allowing expansion of the clinic facility in a PZM zone subject to the following conditions: 1. Staff review and approval of detailed landscaping plans. 2. Staff review and approval of design and construction of screening fence. 3. Staff review and approval of grading and drainage plan. Page 10 Council Minutes - 4/12/93 4. Hospital district providing easements necessary to construct storm water facility. 5. Hospital district consideration of working jointly with the City to design a long-term plan that serves the needs of the hospital district while being sensitive to nearby residential neighborhood concerns. Barb Schwientek indicated that the hospital district is very interested in working with the City toward development of a long-term plan for development of the site and that she would work with City staff toward development of a unified plan. It was the consensus of Council to authorize City staff and Consulting Planner to work with the hospital district toward creating a development plan for the area. 20. Update on second stage digester inspection at the wastewater treatment plant, and consideration of authorization to remove steel cover. John Simola reported that during an inspection of a wastewater treatment plant digester, it was found that the digester cover was extremely rusty and corroded. Some pieces of steel had already fallen onto the floor of the digester tank, and other pieces of structural I-beam came off when touched. Simola went on to review possible reasons why the corrosion occurred and steps that can be taken to avoid the problem in the future. The City Engineer has recommended that the tank cover should be replaced and that it may not be practical to repair it. Simola noted to Council that it may be best at this time to obtain quotes for repair of the second stage digester cover and plan a thorough inspection of the first stage digester and sludge storage tank holding covers at the earliest possible time. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to determine if the cover can be repaired feasibly and to authorize staff to remove the cover at a cost of $7,400 and obtain quotes for repair. Motion carried unanimously. 21. Consideration of non -encroachment agreement with Federal Highway Administration for reconstruction of eastbound County Road 75. John Simola reported that Wright County is proposing to use federal funds for a portion of the reconstruction of eastbound County Road 75. Prior to release of funds, the Federal Highway Administration requires that the City and County sign a non -encroachment agreement regarding the use of signs, setting of speed limits, and parking restrictions on that section of highway improved Page 11 Council Minutes - 4/12/93 using federal funds. Simola noted that the encroachment agreement does not create restrictions that are more restrictive than that which the City already enforces; therefore, he recommended approval of the encroachment agreement. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to enter into an agreement with the Federal Highway Administration as proposed. Motion carried unanimously. 22. Consideration of advertising for bids for paint striping services. John Simola reported in response to Council's request, staff has looked into the possibility of contracting paint striping for crosswalks, curbs, and parking lots. He recommended that the City Council advertise for bids for all striping. After receipt of the bids, we can weigh the increase in cost against the benefits of freeing up a vehicle and an individual for other public works related duties. Council discussed the manner in which crosswalks are painted. Simola stated that currently crosswalks are painted in a block fashion. The City could reduce staff time by painting crosswalks in a striped fashion rather than the block fashion now used. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to continue to utilize City staff for painting crosswalks; however, staff should utilize the stripe method rather than the block method when painting crosswalks. Motion carried unanimously. 23. Consideration of modification of recycling plan as it pertains to recycling at apartments. John Simola reported that at the September 28, 1992, meeting, Council and staff discussed problems with recycling at apartments. Most of the problems noted were due to mixing of garbage with recyclables, mixing of various recyclables, and the amount of recyclables found in the dumpsters. Simola reported that the recycling committee suggested that apartments be charged for garbage service based upon an equal percentage of the number of times recyclables are improperly prepared or contaminated. Since there are four basic recyclables--cans, glass, paper, and plastic --and a minimum of six opportunities a quarter, an apartment building who has their recyclables properly sorted and not contaminated would receive 24 points, or 100% of the points available. They will, therefore, have 100% of their garbage bill abated. Ken Maus noted his concern that the City is bending over backwards for the apartment complexes and that perhaps the City should require that they pay for their total cost of garbage collection if they choose not to recycle. Page 12 Council Minutes - 4/12/93 John Simola noted that the recycling committee discussed two additional options for apartments. The committee felt that if each tenant had their own recycling bin, it might better remind the individuals of the need to properly prepare and segregate their recycling materials. We would recommend that the apartment owners purchase a 3 -bag single bin from the City of Monticello at cost. The recycling committee also requested a change to the overall recycling policy regarding exemptions from the recycling program for participants using our standard 3 -bin system. Exemptions are given to the elderly, handicapped, or others with disabilities. We also grant exemptions for extended vacancies. We have, however, in the past gotten requests for lifestyle exemptions from individuals who feel their lifestyle does not generate any recyclables in the home. Often these individuals indicate that they have very little or no garbage pickup also. It was the consensus of the committee that we grant a full exemption from the recycling program to anyone whose lifestyle did not produce recyclables or garbage, but we would also then stop City garbage service to the property. If the individual indicated that his lifestyle would produce less than 9 recyclable products every 3 months but still had some recyclable products, we would reduce the number of points for that individual. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to change the current recycling program and require that apartments recycle at each opportunity, and that that their garbage bill be based upon the percentage of the time that their recyclables are found to be improperly prepared, mixed, or contaminated with garbage. In addition, apartment complexes would be offered a 3 -bag single bin system as an option. The policy should be modified to read that lifestyle exemptions be granted where the individual homeowner produces no garbage. In turn, no City garbage service would be available and would have to be contracted out separately. Reduction in the number of points required for lifestyle exemptions could also be granted in cases where there is justifiable reason for earning fewer than 9 points in a quarter. Motion carried unanimously. 24. Consideration of Arbor Day proclamation and observance for Friday, April 30, 1993. A motion was made by Shirley Anderson and seconded by Clint Herbst to proclaim Friday, April 30, 1993, as Arbor Day and observe it by having a small tree planting ceremony in one of the parks. Motion carried unanimously. Page 13 Council Minutes - 4/12/93 25. Consideration of Building Safety Week proclamation, 4/12/93 to 4/16/93. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to proclaim the week of 4/12/93 to 4/16/93 as Building Safety Week. Motion carried unanimously. There being no further discussion, the meeting was adjourned. Jeff O'Neill Assistant Administrator Page 14