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City Council Minutes 08-23-1993MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, August 23, 1993 - 7 p.m. Members Present: Ken Maus, Shirley Anderson, Brad Fyle, Clint Herbst Members Absent: Patty Olsen 2. Consideration of approval of minutes of the regular meeting held August 9, 1993. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the meeting minutes as submitted. Motion carried unanimously with Patty Olsen absent. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Public Hearing --Consideration of a resolution accepting bids, awarding contract, and ordering construction of the Hart Boulevard storm sewer. Mayor Maus opened the public hearing. Assistant Administrator O'Neill described the project and outlined reasons why the construction of the Hart Boulevard storm sewer is being considered at this time. He noted that a public hearing on the improvement is necessary if the City is to assess any portion of the cost to benefiting property owners. Robert Jameson indicated that the storm sewer project provides no benefit to his property; therefore, he did not feel that he should be assessed any of the cost. Bret Weiss indicated that the additional storm sewer projects may need to be constructed at some time in the future; therefore, property owners assessed for the expense associated with the Hart Boulevard improvement may also be assessed for future projects. Charlie Pfeffer indicated his concern regarding repeat assessments. He requested that the City keep him informed of the potential of assessments or other charges so that he can make his financial plans accordingly. Brad Fyle indicated that the Hart Boulevard storm sewer project has been under discussion for quite a while. It has been held off as long as it could be. The proposed route to the river is the shortest and best route, the easements are in place, and it can be done in conjunction with the hospital district expansion; therefore, the project should be completed at this time. Page 1 Council Minutes - 8/23/93 Bill Malone concurred that it makes sense to do the project; however, he also noted that he did not have a drainage problem with his property and, therefore, did not feel he needed to pay an assessment. Ken Maus observed that it is difficult for property owners that do not have a water problem to understand why they need to contribute to the cost to correct a problem downstream. They have to realize, however, that water from their property has helped to create the storm water problem downstream and are, therefore, partly responsible for helping to pay for the cost to manage storm water. David Jameson indicated his concern regarding trees growing in a drainage ditch area adjacent to Territorial Road. Ken Maus noted that we don't want a ditch 33 situation; therefore, we need to keep that drainage area cleaned out. At this point in the meeting, the public hearing was closed. The City Engineer, Bret Weiss, noted that the bids have been tabulated and that LaTour Construction of Maple Lake had submitted the low bid in the amount of $134,881, which is $11,000 less than the estimated cost. Weiss went on to recommend that LaTour Construction be awarded the contract. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to adopt a resolution accepting bids, awarding contract, and ordering construction of the Hart Boulevard storm sewer. Motion carried unanimously with Patty Olsen absent. SEE RESOLUTION 93-27. 5. Public Hearing --Review concepts behind a potential ordinance amendment that will establish a storm water utility system. Mayor Maus opened the public hearing. Assistant Administrator O'Neill and City Engineer, Bret Weiss, provided a general description of the funding problems that the City faces with regard to financing storm sewer projects and went on to outline how a storm water utility system works. O'Neill noted that some of the positive aspects of the storm water utility are as follows: 1. Storm water utility collects funds for specific use (storm water projects) based on a flat rate (storm water produced by each property), and the fees are not related to property value or ability to pay. 2. Storm water utility will reduce the long-term reliance on NSF power plant tax revenue. Page 2 Council Minutes - 8/23/93 3. The storm water utility would utilize the City's existing utility billing system. 4. It allows the City to conduct smaller storm sewer projects without the need to go through the public improvement process, which requires public hearing notices, etc. 5. The storm water utility allows the City to collect revenue from schools and churches, neither of which pay taxes but generate storm water that needs to be controlled by city -built storm sewer structures. O'Neill went on to outline reasons why Council may not wish to go ahead with establishing a storm water utility. He noted that it's a regressive tax that is blind to one's ability to pay. 1. Lower value properties pay more as a share of their wealth. 2. The same amount of dollars charged per residence using a utility fee, you could raise significantly more money for storm sewer improvements using general taxation.. Scott Hill asked if this fee would be charged to every property in the city. Weiss indicated that, yes, it would be charged to all properties. Clint Herbst stated that he's not against the utility fee; however, he noted that when it comes to the industrial park, the City should contribute to paying for storm sewer projects because of the tax base that industry provides. Brad Fyle indicated that he's not convinced that a storm water utility is necessary. He noted that the formula for establishing each parcel's utility charge is quite complicated, and the staff time needed to implement the program makes it costly at the front end. It was his view that the present method of assessing storm water expenses and using general taxation to pay for that which cannot be assessed is working well enough; therefore, at this time he does not support establishing the storm water utility. The public hearing was closed. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to authorize City staff to continue research on the topic and present the item again to the Council at an upcoming meeting. Motion carried unanimously with Patty Olsen absent. Page 3 Council Minutes - 8/23/93 6. Public Hearing --Review feasibility study for alley improvements, and consideration of a resolution ordering improvements. John Simola reported that the City Council received petitions for an in- house feasibility study to determine the scope and costs of service improvements to alleys located in Blocks 34, 35, and 52. These alleys were last improved with the 74-1 improvement project. We have determined the scope of the repairs or improvements needed for the alleys, and the plans are mostly complete for those proposed improvements. Simola went on to review the proposed improvements in detail and explained that due to the busy construction season, he has had difficulty in obtaining quotes from contractors. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to authorize City staff to continue to seek quotes from contractors and to continue the public hearing to the regular meeting scheduled for September 27, at which time project costs will be reviewed if available. Motion carried unanimously with Patty Olsen absent. 7. Public Hearing --Consideration of construction of pond outlet for the long pond in Briar Oakes and consideration of a resolution authorizing construction. Ken Maus opened the public hearing. John Simola described the project. In his description, he noted that the ultimate storm sewer design for Briar Oakes includes interconnection of three ponds located in the subdivision, including an outlet from the northeast pond to the large Meadow Oak pond. During the first phase of construction of Briar Oakes storm sewer, the southeast pond and northeast pond were interconnected. Interconnection of the third pond and the outlet for the northeast pond to the Meadow Oak pond were to be completed with phase II. These ponds, in addition to handling the water from Briar Oakes, will also take in a portion of the storm water from the 4th Addition of Meadow Oak, Lots C and D owned by the City, a portion of township property, and the new Oak Ridge development. Simola noted that the portion proposed for construction at this time is construction of the pond outlet for the northeast pond connecting Briar Oakes to the Meadow Oak pond. Simola went on to review the funding program which includes assessments against Briar Oakes, Meadow Oak 4th Addition, Oak Ridge development, and City Lots C and D. Total project cost amounts to $9,874. Page 4 Council Minutes - 8/23/93 Finally, Simola recommended that the City Council authorize the project and order the improvement to be completed by a contractor that submits the lowest price. Discussion focused on the design of the storm sewer outlet. Brad Fyle and Clint Herbst suggested that the City consider utilizing PVC pipe rather than reinforced concrete pipe. Fyle indicated that he did not think reinforced concrete pipe was necessary because the storm sewer outlet will not be under a roadway. John Simola noted that the cost difference in materials is about $1,000; however, the labor involved in the project might offset the savings in the material savings. Simola recommended reinforced concrete pipe. The ramifications of failure are too great to risk using PVC. Bret Weiss concurred that reinforced concrete pipe is the best alternative because the pipe will be exposed to freeze and thaw cycles. He was not certain that PVC pipe would work well in such an environment. Council discussed the time line for development of the connection of the Meadow Oak pond to the river. Brad Fyle indicated that he was comfortable with the capacity remaining in the Meadow Oak pond. He did not feel that the Meadow Oak pond needed to be connected to the river prior to connecting the long pond to the Meadow Oak pond. The public hearing was closed. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to order the improvement as designed to be completed by the contractor submitting the lowest quote and direct City staff to check on the use of PVC pipe where appropriate. Motion carried unanimously with Patty Olsen absent. SEE RESOLUTION 93-28. 8. Consideration of a request for a conditional use permit which would allow expansion of a motor fuel convenience store in a B-3 zone, and consideration of a variance request to building and parking lot setback requirements, and consideration of a variance to the maximum curb cut width requirement. Applicant, Holidaystores. Assistant Administrator O'Neill informed City Council that Holidaystores requests a conditional use permit and variances in conjunction with redevelopment of their site. The redevelopment calls for demolishing the existing structure, which is 3,920 sq ft, and replacing it with a 4,450 sq ft structure. The structure would be placed on the northwest side of the site. Page 5 Council Minutes - 8/23/93 In addition, four additional twin pumps would be installed. The new plan also calls for development of a driveway access to Walnut Street in addition to the two existing driveways on 7th Street. O'Neill went on to outline the variance requests. Discussion focused on the proposed access to Walnut Street. John Simola and Roger Mack indicated that Walnut Street has been a problem area in the wintertime due to the steep grade and northern exposure. It is difficult to maintain this road in an ice -free condition. Representatives from Holidaystores stated that providing this access to the store via Walnut Street is vital to the plan. It was their view that the grade on Walnut Street was not significant enough to warrant closing off access to Walnut. However, they would be willing to improve the Walnut access driveway design. Clint Herbst indicated that he is not in favor of granting driveway access to Walnut Street. He was concerned about the hazard that could be created. Ken Maus suggested that they consider approving the plan subject to detailed review of the site elevations by the City Engineer. Bret Weiss noted that there may be a way to design the driveway and limit traffic movement so as to improve safety. After discussion, a motion was made Brad Fyle to approve the conditional modifications as follows: by Shirley Anderson and seconded by use permit subject to site plan A) The Walnut Street access shall be eliminated or modified at the recommendation of the City Engineer. This recommendation is to be developed after further detailed study of the site. B) Motion to approve the variance to the 5 -ft setback requirement on 7th Street. The unique topography of the site requires that the 5 -ft setback area be used for drive area in order to gain full use of the property. C) Install "no exit" signs at the easterly most access to the site off 7th Street. D) Re -orient the building to allow deliveries to be made by semi -trailer truck along the northern side of the property and remove parking spaces in this area. E) Motion to approve a 15 -ft variance to the front yard setback requirement on the Walnut Street side of the property. Due to the unique topography of the site, a variance is necessary in order to gain Page 6 Council Minutes - 8/23/93 full use of the property. Due to topography, the front yard setback area cannot be used for parking, and instead a portion of it may be used under this variance for the building site, which acts in part as a retaining wall. F) Motion to grant a variance to the curb cut requirement which would allow a 30 -ft curb cut rather than the required 24 -ft curb cut. A variance is necessary due to the close proximity of the drive access areas to the 7th Street/Highway 25 intersection. The additional 6 ft in curb cut width will expedite ingress and egress to the site, thereby improving traffic flow and safety on 7th Street. Voting in favor: Ken Maus, Shirley Anderson, Brad Fyle. Opposed: Clint Herbst. Absent: Patty Olsen. 9. Senior Citizen Center update - Pam Loidolt. Senior Citizen Center Coordinator, Pam Loidolt, provided an overview of programs provided by the Senior Center and outlined participation. She noted that the level of participation has increased significantly in the previous year. Budd Larson, representing the Senior Center Board, presented the City Council with a certificate of appreciation for support of services for the elderly. Mayor Maus thanked the senior representatives for the certificate and congratulated the Senior Citizen Center Coordinator for the level of senior services and the increase in participation. 10. Consideration to ratify the HRA's decision to assist the H -Window Company's expansion with surplus funds from TIF District #1-7. City Administrator, Rick Wolfsteller, reviewed the proposed level of TIF funding to support the H -Window Company expansion. Wolfsteller noted that the original TIF proposal, which was sent to Norway in June, outlined an annual pay-as-you-go TIF assistance of $20,000 over 8 years for a total of $160,000. Based on a recommendation made by the City's consultant, Business Development Services, the HRA understood that the City would fully recover the $160,000 assistance through the tax increment revenue generated by the new expansion. Unfortunately, on August 12, 1993, BDS informed the City that it would not be possible to capture the full amount because the associated plan for decertification and subsequent recertification under the expansion was not legal. Despite this problem, the HRA elected to endorse the originally - Page 7 Council Minutes - 8/23/93 promised $160,000 TIF assistance. Endorsement was supported by the knowledge that the original TIF district under which the current building operates has an approximate total surplus of $71,000. With the expansion of the facility, additional surplus will be collected before the TIF district expires. In other words, it is projected that the HRA will recover the $160,000 assistance solely through the duration of the existing H -Window TIF district. Ken Maus indicated his support of the TIF program. He noted that the H - Window Company is at a position in its development where it could move to another community. He noted that the expansion will create 60 new jobs and could lead to development of spin-off industries. Clint Herbst echoed support for the plan. He noted that H -Window is a proven company that provides good jobs, and he supports continued use of TIF to assist the company. Brad Fyle disagreed. He objected to continuing to assist H -Window Company. It was his view that it made sense to assist them at the start, but that the City should not provide TIF assistance to help with expansion. Shirley Anderson noted that H -Window is a growing business providing full- time jobs and good wages; therefore, she supports use of TIF as proposed. However, she did note her concern about the performance of Business Development Services with their original recommendation that proved to be inadvisable. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to ratify the HRA decision to assist the H -Window expansion with $160,000 surplus TIF funds from TIF District #1-7. Voting in favor: Ken Maus, Shirley Anderson, Clint Herbst. Opposed: Brad Fyle. Absent: Patty Olsen. 11. Consideration of adopting a resolution extending an agreement by the City to hold Lots 1-6, Block 1, Oakwood Industrial Park 2nd Addition, for the H - Window Company. In her memo to Council, 011ie Koropchak noted that the HRA has recommended that the City Council consider extending Resolution 93-5 which holds Lots 1, 2, and 3, and grants Right of First Refusal for Lots 4, 5, and 6, Block 1, Oakwood Industrial Park 2nd Addition, for the H -Window Company. This would allow the City Council, HRA, City staff, and H - Window management time to consider other options such as possible land Council Minutes - 8/23/93 swap, purchase, etc. The HRA felt the long-term potential of the H -Window as it relates to and benefits the city of Monticello was worth extending the time request. In addition, there has not been a significant interest from other parties in purchasing any of the properties proposed to be held. Brad Fyle indicated that the City should not be holding it. The lot should be placed on the market. He indicated that we've been holding the lots for some time, and we'd be doing this for several years. Ken Maus noted that we have had no significant interest in these lots for some time; therefore, it doesn't appear to be hurting the City to keep them available for H -Window. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to adopt a resolution agreeing to hold Lots 1, 2, and 3, Block 1, Oakwood Industrial Park 2nd Addition, for an additional time period expiring January 31, 1994, for the H -Window Company, and also providing a First Right of Refusal for Lots 4, 5, and 6, for the same period of time. Voting in favor: Ken Maus, Clint Herbst, Shirley Anderson. Opposed: Brad Fyle. Absent: Patty Olsen. SEE RESOLUTION 93-29. 12. Consideration of approval of the final plat of the Silver Fox subdivision. Assistant Administrator O'Neill noted that on September 14, 1992, City Council granted preliminary plat approval of the Silver Fox subdivision and noted a number of conditions that needed to be met prior to final plat approval. Such conditions included the developer providing a letter of credit in an amount necessary to complete grading and working with the adjoining property owner to come to an agreement on an overall plan for providing drainage and obtaining signatures on necessary agreements relating thereto. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to grant approval of the final plat of the Silver Fox subdivision. Motion carried unanimously with Patty Olsen absent. 13. Consideration of a resolution declaring intent to reimburse proiect costs through future bond sale - Project 93-06C, Hart Boulevard Storm Sewer. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to approve a resolution declaring intent to reimburse project costs through future bond sale --Project 93-06C, Hart Boulevard Storm Sewer. Motion carried unanimously with Patty Olsen absent. SEE RESOLUTION 93-30. Page 9 Council Minutes - 8/23/93 14. Consideration of bills for the month of August. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the bills as submitted. Motion carried unanimously with Patty Olsen absent. 15. Other matters. A. Assistant Administrator O'Neill presented a resolution calling for a public hearing on establishment of the Standard Iron tax increment financing district. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to adopt a resolution calling for a public hearing on the proposed modification by the Housing and Redevelopment Authority in and for the City of Monticello of the Redevelopment Plan for Redevelopment Project No. 1, the modification of tax increment financing plans for tax increment financing districts 1-1 through 1-12, and tax increment financing districts 1-14 through 1-15, and the adoption of the tax increment finance plan for local increment financing district 1-13, all located within Redevelopment Project No. 1. Public hearing to be conducted on September 27, 1993, at 7 p.m. at Monticello City Hall. Motion carried unanimously with Patty Olsen absent. SEE RESOLUTION 93-31. B. By consensus, City Council scheduled a special meeting for the purpose of reviewing the preliminary budget. The meeting is scheduled for Thursday, September 9, at 4:30 p.m. C. The City Council reviewed the status of the Gille Auto pollution site investigation work. It was the consensus of Council to direct City staff to determine to what extent any City or County expenses associated with cleanup can be recovered through the super fund and report back to Council accordingly. There being no further discussion, meeting was adjourned. Je 'Neill Assistant Administrator Page 10