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City Council Minutes 06-22-1992MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, June 22, 1992 - 7 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle Members Absent: Dan Blonigen 2. Approval of minutes. It was noted that item #7, paragraph #2, of the June 8, 1992, minutes should be amended by changing the 1992 to 1982. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the minutes of the regular meeting held June 8, 1992, as amended, and the special meeting held June 15, 1992. Motion carried unanimously. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Public hearing for Sidewalk Improvement Project 92-08SW. Mayor Maus opened the public hearing. No public comment on the project was forthcoming. The public hearing was closed. John Simola described the sidewalk improvement project. He noted that the project involves sidewalk along 1) the south side of Hillside Cemetery between Highway 25 and Cedar Street, 2) the east side of Cedar Street from 7th Street to the Cedar Crest Apartments, and 3 ) County Road 75 between the Monticello High School pedestrian crossing to the hospital. Notices were sent to affected property owners based upon a 25% assessment cost, which equals $4.27 per lineal foot of street frontage. Simola noted that the sidewalk bids came in approximately 7% lower than expected, which places our current estimate for assessments at approximately $3.97 per lineal foot. 5. Review of bids and consideration of award for Sidewalk Improvement Project 92-08SW. John Simola reported that the estimated cost of the project was $20,582 for contract work and $8,000 for work by the public works department bringing the total estimated project cost to $28,582. Simola noted that bids for the contracted portion of the work have been received; and based upon the bid tabulation, the low bidder is Schneider's Concrete Construction from Little Falls for a total bid of $18,553. Page 1 Council Minutes - 6/22/92 Simola recommended that the City Council award the project to Schneider's Concrete Construction for $18,553, which is $2,000 under estimate. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to award the sidewalk project to Schneider's Construction of Little Falls in the amount of $18,553. Voting in favor: Brad Fyle, Shirley Anderson, Ken Maus. Opposed: Brad Fyle. In opposing the motion, Brad Fyle noted that the sidewalk project should have been put on hold this year. 6. Consideration of a resolution authorizing and awarding the sale of $705,000 G.O. bonds, Series 1992A, for the Cardinal Hills second phase and School Boulevard improvement projects. A representative from Springsted, Inc., reviewed the bids on the sale of the $705,000 G.O. improvement bonds. He reported that nine financial institutions submitted bids, with the low bid coming from First Bank Systems Investment Services at a net interest rate of 5.2525% and a net interest cost of $228,027.08. Council was informed that Springsted recommends that the City award the bid to First Bank Investment Services, Inc. After discussion, a motion was made by Brad Fyle and seconded by Clint Herbst to adopt a resolution authorizing and awarding the sale of the $705,000 G.O. improvement bonds, Series 1992A, to First Bank Systems Investment Services, Inc. Motion carried unanimously. SEE RESOLUTION 92-17. 7. Consideration of accepting the 1992 Audit Report for the City of Monticello. Rick Borden and Kim Lillehaug of Gruys, Borden, Carlson & Associates provided a brief overview of the 1991 Audit Report. Ken Maus asked if the computer system can save auditing expenses by providing reports now compiled by the auditor. Rick Borden noted that the City computer operation is well organized and the improved maintenance of financial data and reporting has already created a savings for the City. He noted that it is possible to reduce the audit expense through creation of reports that now must be compiled by the auditor. Once these reports are designed, then the City could possibly save as much as $2,000 on audit expenses. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to accept the audit report as prepared. Motion carried unanimously. Page 2 Council Minutes - 6/22/92 8. Consideration of an ordinance amendment amending the zoning map by rezoning Thomas Park subdivision and adjacent unplatted parcel from B-2 (limited commercial) to I-1 (light industrial). Applicant, City of Monticello Planning Commission. Assistant Administrator O'Neill informed Council that the proposed rezoning is based on the request submitted by the owner of Monti Motors, Pat Townsend, and the owner of Hoglund Bus Company, Wayne Hoglund. Both expressed an interest in utilizing their property for sales and storage. In order for Hoglund and Townsend to lawfully use their property for outside sales and storage, they need a zoning ordinance amendment which would change the zoning designation from B-2 (limited commercial) to I-1 (light industrial). O'Neill went on to note that the Planning Commission recommended that the zoning ordinance amendment be approved because the proposed rezoning is consistent with the neighborhood. The new I-1 area would become a logical extension of the I-1 zoning district to the south. In addition, the proposed rezoning is consistent with the comprehensive plan, which shows commercial and light industrial development in this area. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to adopt an ordinance amendment approving the rezoning of the Thomas Park area from B-2 (limited commercial) to I-1 (light industrial). Motion is based on the finding that the proposed rezoning is consistent with the comprehensive plan, consistent with the geography and character of the area, and will not result in a depreciation of adjoining land values. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 228. 9. Consideration of a conditional use request to allow open and outdoor storage and open and outdoor sales as an accessory use in an I-1 (light industrial) zone. Location is Lot 1, Block 1, Thomas Park Addition in the city of Monticello. Applicant, Monticello Boat Works. AND A variance request to allow open and outdoor sales to be more than the maximum 30% of gross floor of the principal use. Applicant, Monticello Boat Works. Assistant Administrator O'Neill reviewed the Monti Boat Works site plan and the Planning Commission's recommendation regarding this topic. O'Neill reviewed the regulations that are defined by ordinance that must be met in order for the facility to legally operate: Page 3 Council Minutes - 6/22/92 1. The storage area must be fenced and screened from view of residential uses. This particular requirement does not apply, as the storage area is not in view of a residential district. 2. The storage must be screened from view from the public right-of-way. This can be accomplished by installing slats in the existing cyclone fence. 3. The storage sales area is grassed or surfaced to control dust. O'Neill noted that most of the storage area is grass covered; however, a portion of the property directly east of the drive area is gravel surfaced. O'Neill also noted that the site does not currently meet the tree planting requirement. In order to comply with the ordinance, it will be necessary for the operator to plant 11 trees on the site. Brad Fyle was concerned that the boat storage facility will not upgrade the area. He recommended that the amount of outside storage be reduced. Fyle also recommended that all areas outside of the fenced storage area be paved. Pat Townsend noted that the unpaved area has gravel on it, and dust has never been a problem. Ken Maus suggested that the gate to the storage area be moved to become aligned with the drive area, thereby limiting traffic on unpaved areas. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to grant the conditional use permit subject to the following conditions: 1. The site must operate in a manner consistent with the zoning ordinance. 2. 11 trees of a size consistent with code or 6 trees and landscape plantings must be planted. 3. No boat sales, service, or storage in stalls reserved for parking. 4. The parking lot shall be striped. 5. Short-term parking for repairs or sales in unscreened areas shall be allowed. Page 4 10. Council Minutes - 6/22/92 6. The entry gate to the storage area shall be moved to the west so as to be aligned with the paved drive area. Motion includes a variance to the requirement that the accessory outside service sales and equipment rental connected with the principal use is limited to 30% of the gross floor area of the principal use. Conditional use permit approval and variance approval are based on the finding that the proposed use is consistent with the zoning district in which it is located, and the use, if operated in a manner consistent with the conditional use permit terms, will not result in depreciation of adjoining land values. Voting in favor: Ken Maus, Shirley Anderson, Clint Herbst. Opposed: Brad Fyle. Consideration of approving preliminary plat of the Battle Rapids Subdivision. Applicant, Investors Together. Assistant Administrator O'Neill noted that City staff has reviewed the preliminary plat and found it to be consistent with city ordinance; however, there are a few issues that need to be addressed prior to final plat approval. The development plan calls for the phased development of four structures which include a total of 14 townhomes. In the initial phase, only one of the four structures will be constructed; however, retaining walls and all site grading will be completed with phase I. Phase I also includes development of only that portion of the drive area needed to serve the initial structure. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the preliminary plat contingent upon the following: 1. The preliminary plat should be amended to include comments made by the City Engineer in his letter of June 10, 1992. Final plat approval shall not be granted until this item is complete. 2. Final plat will be contingent on completion of a development agreement which would include the developer providing a performance bond in an amount equal to complete phase I site improvements as defined by the City Engineer. 3. Final plat approval will be contingent on preparation and recording of townhouse association bylaws. Bylaws must be consistent with the city ordinance governing planned unit development bylaws. Page 5 Council Minutes - 6/22/92 4. An easement allowing the owner of the adjacent property to the east to use the Battle Rapids drive area must be recorded along with the final plat. 5. Final plat approval is contingent on developer paying City expenses in excess of preliminary plat fee (amount not tabulated at this time). Motion carried unanimously. 11. Consideration of a variance request allowing development of a PUD containing an area of less than 3 acres. Applicant, Investors Together. O'Neill noted that townhomes developed in an R-2 zone must meet the requirements associated with a planned unit development. One of the requirements is that PUD sites must contain at least 3 acres. City Planner, David Licht, has recommended that the City grant a variance to this provision and also consider deleting this requirement from our ordinance. It is his view that a 3 -acre minimum is an unnecessary restriction. O'Neill noted that the Planning Commission had recommended that the City Council grant this variance. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to grant a variance which allows development of a PUD containing an area of less than 3 acres. Motion is based on the finding that the variance is necessary to allow the use of the land for townhome development under the provisions of the R-2 zoning district, and granting of the variance will not impair the intent of the ordinance. Motion carried unanimously. 12. Consideration of a conditional use permit request which would allow development of a townhome in an R-2 zone. Applicant, Investors Together. Assistant Administrator O'Neill noted that city ordinance requires that a conditional use permit be obtained before a townhouse development can occur in an R-2 zone. City ordinance states that a townhome development in an R-2 zone must meet the standards defined by the PUD requirement. O'Neill reviewed the regulations governing planned unit developments and reported that the site plan is consistent with the requirements. He did note, however, that there are certain issues that need to be addressed prior to approval of the final plat and conditional use permit. Council Minutes - 6/22/92 After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the conditional use permit application allowing a townhouse development in an R-2 zone. Motion is based on the f inding that a townhouse development at this location is consistent with the comprehensive plan and regulations governing planned unit developments. The development is consistent with the character and associated land use as identified in the R-2 zone. The development will have direct access to the county road; therefore, the traffic impact on adjoining R-1 uses will be minimized. Therefore, the development is consistent with the geography of the area. The need for this type of use has also been sufficiently demonstrated. The conditional use permit approval is subject to the same conditions associated with final plat approval and subject to conditions as outlined by the planned unit development requirements. Motion carried unanimously. 13. Consideration of a request to amend a condition of a previously -approved conditional use permit. Applicant, Hillside Partnership/Sixth Street Annex. Assistant Administrator O'Neill informed Council that the Planning Commission is doing additional research on the matter; therefore, they tabled making any recommendation to the City Council. According to the ordinance, the City Council must also table this matter pending the recommendation by the Planning Commission. 14. Consideration of a variance request to allow less than the minimum off-street parking spaces. Applicant, Hillside Partnership/Sixth Street Annex. Item tabled by Council. Page 7 Council Minutes - 6/22/92 15. Consideration of a zoning ordinance amendment which would allow certain commercial buildings located in a PZM zone to qualify to follow sign requirements pertaining to buildings in commercial zones. Applicant, Hillside Partnership. AND 16. Consideration of a conditional use request to allow a sign system for a building with 3 or more business uses but which, by generally understood and accepted definitions, is not considered a shopping center or shopping mall. Applicant, Hillside Partnership. AND 17. Consideration of a variance request to allow more than the 100 sq ft maximum wall sign square footage. Consideration of a variance request to allow more than the 25 sq ft maximum pylon sign square footage and to allow more than the maximum 16 -ft pylon sign height. Applicant, Hillside Partnership. Assistant Administrator O'Neill informed Council that the Sixth Street Annex is in the process of preparing a sign system to serve the facility. The sign system proposed is not consistent with the limitations imposed by the PZM zone. The applicant proposes a total wall sign area of 390 sq ft. The current ordinance limits wall sign area in the PZM zone to 100 sq ft. O'Neill noted that the Planning Commission recommended that an amendment to the zoning ordinance be drafted that would allow the Sixth Street Annex to qualify under the rules governing signs in the city commercial districts. This makes sense because the structure and associated use, although located in the PZM zone, which is a combination of commercial and residential, has strong ties to the neighboring B-3 zone. Using commercial zone sign requirements in this case would allow the Sixth Street Annex to have 300 sq ft of sign area or a pylon sign and 100 sq ft of sign area. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to adopt a zoning ordinance amendment allowing certain commercial buildings located in the PZM zone to qualify to follow sign requirements pertaining to buildings in the commercial zones. Motion is based on the finding that the PZM zone is a transition area between commercial and residential uses. Allowing intensification of sign systems in the PZM zone along the perimeter of commercial areas is consistent with the purpose and consistent with the geography and character of the area. The amendment as proposed will not result in proliferation of business signs within residential areas. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 230. Council then considered the conditional use permit request associated with the Sixth Street Annex sign system. Page 8 Council Minutes - 6/22/92 After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the conditional use permit request subject to revisions of the sign plan to meet the requirements of the ordinance. Motion is based on the finding that the sign system as proposed is consistent with requirements set forth by ordinance. The signs are generally oriented toward a commercial area; therefore, the sign system is consistent with the geography and character of the area. Motion carried unanimously. Council then discussed the variance request. Greg Mooney of 21st Century Builders indicated that the request for the pylon sign in addition to the wall signs has been withdrawn. He no longer felt that the pylon sign is needed in addition to the wall signs allowed by ordinance. Council discussion focused on whether or not to grant 90 additional square feet of sign area in addition to the 300 sq ft allowed by ordinance. Clint Herbst noted that by amending the ordinance, the City has already increased the allowable sign area from 100 sq ft to 300 sq ft. He felt that it is not necessary to grant an additional 90 sq ft. Ken Maus noted that 390 sq ft is not unreasonable. It was his view that the additional sign area might be critical to the success of the businesses located in the facility. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to deny the variance request which would allow a total sign area in excess of 300 sq ft. Motion is based on the finding that a unique circumstance or hardship has not been demonstrated; therefore, approving the variance would impair the intent of the ordinance. Voting in favor: Shirley Anderson, Clint Herbst, Brad Fyle. Opposed: Ken Maus. 20. Consideration of ratifying union contract renewal. Rick Wolfsteller, City Administrator, reported that the current two-year contract with six members of the public works department maintenance staff expired April 1, 1992. Since early spring, numerous negotiation sessions have taken place with the union representatives. Wolfsteller reported that the majority of the original union demands were dropped, and the discussion boiled down to the real issues --salaries and insurance benefits. Page 9 Council Minutes - 6/22/92 Wolfsteller noted that the union targeted the comparable worth report for determining their salary increase request, and the proposed salary schedule as part of the contract renewal is exactly the same as the comparable worth study proposed and adopted by the City Council in November. The second major issue defined in negotiations was the City's contribution toward health insurance coverage. Previous contract language has included a specified amount ($351.37) per month that the City would contribute toward health insurance coverage. In the past, we have agreed to increase the amount annually by $15 per month; and an increase provision stated that any insurance premium increased above $15 would be picked up by the City at a rate of 50%. Wolfsteller noted that he had proposed that the contract eliminate the automatic increase in the City's contribution annually and also eliminate the provision of the City agreeing to pick up 50% of the premium increases. Wolfsteller summarized the new contract by noting that the major change and advantage for the City in the proposed contract is that the union is agreeable to a longer step process for wage increases by following the comparable worth plan from 18 months to 4 1/2 years for new employees. The potential savings for the City could be to our advantage when new employees are hired or old employees are replaced. The City could save over $7,000 in wages during the first 4 1/2 years of employment. Also, the additional language allowing increases to be granted only upon satisfactory performance evaluation gives the City administration more ability to ensure that workers are performing adequately without receiving automatic increases. Wolfsteller noted that the union contract is almost identical to non-union personnel. Wolfsteller did mention his only concern of the contract is agreeing to provide increases in union health insurance if other City employees receive increases. But again, we've also eliminated a guaranteed increase of $15 per month and a provision picking up 50% of any additional premium increases. Ken Maus noted that reverting the step increase plan from the current union contract to the comparable worth plan will result in significant savings to the City in the future. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to approve the proposed union contract as submitted. Motion carried unanimously. Page 10 21. Council Minutes - 6/22/92 Consideration of final payment for signal system at CSAH 75, East County Road 39, and County Road 118. John Simola, Public Works Director, reported that the signal system on County Road 75 near Riverroad Plaza is now complete. Simola recommended that Council authorize final payment to Wright County Electric, Inc., of Plymouth, Minnesota, for the signal system in the amount of $18,357, which is $800 under budget. After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to authorize final payment to Wright County Electric of Plymouth, Minnesota. Motion carried unanimously. 22. Consideration of a conditional use permit which would allow construction of a public utility building in a PZM zone. Applicant, City of Monticello. Assistant Administrator O'Neill and Public Works Director Simola reviewed the proposed site plan and potential impacts on adjoining properties. Council discussion focused on the proposed evergreen screen planting along the western edge of the property. Public works staff was concerned that due to the confined area, the original proposed staggered planting of evergreens 10 ft apart might not be workable and could result in overcrowding and result in problems in maintaining the trees. After discussion, a motion was made by Shirley Anderson to accept the Planning Commission recommendation. Anderson withdrew the motion for lack of a second. After further discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve the conditional use permit subject to the following conditions: 1. Landscape planting for screening on the western boundary of property is to consist of a single row of evergreen trees to be located 10 ft apart along the entire length of the western boundary of the property. 2. A tree irrigation system shall be installed to irrigate trees planted along the western boundary of the property. 3. All outside storage areas perimeter and not screened by be screened via installation fence. Page 11 within security fence evergreen trees shall of slats in security Council Minutes - 6/22/92 4. Security lighting illuminating gas dispenser and storage areas shall be installed. 5. When the situation merits, action shall be taken to control dust generated by use of unpaved storage and drive areas. 6. Materials stored in storage bins shall be screened from view from the public right-of-way. The motion to approve the conditional use permit is based on the following findings: 1. The proposed conditional use permit is consistent with the purpose of the PZM district, which is to provide a land use transition between high density residential land uses and low intensity business land uses. The public utility building site plan, which includes extensive screening, landscaping, direct access to county and city state aid highways, and separation from R-1 and R-2 uses, is found to be consistent with the stated purpose of the PZM zone. 2. The present mix of uses in the PZM district at this location is compatible with the proposed conditional use, and the proposed conditional use is consistent with the geography and character of the area. 3. The proposed site is sufficiently separate from single family residential areas and is centrally located so as to provide ease of access to all areas of the city which will be serviced by the facility. 4. The conditional use proposed will not depreciate the area in which it is proposed, as it will be an improvement to what was once a permitted use, will enable the City to store vehicles which would otherwise remain outside, and will be aesthetically pleasing. 5. The use of the present site has grown so as to render the existing buildings inadequate for the stated purposes and, therefore, requires expansion. The need for a public works building in a city the size of Monticello is obvious. 6. The proposed conditional use is consistent with the comprehensive plan. Page 12 23. 24. Council Minutes - 6/22/92 7. The proposed site meets the requirements as outlined by city ordinance. Motion carried unanimously. Consideration of a variance to the curbing and hard surfacing requirement. Assistant Administrator O'Neill noted that the public utility expansion proposal is not completely consistent with the ordinance. Specifically, the employee parking area is not presently bounded by a curb, and it is not proposed that a curb be installed; therefore, a variance needs to be granted to allow this condition to exist. In addition, a variance is requested which would allow use of the outside storage/drive area without paving. A portion of the drive area will eventually be paved; however, it is not proposed that it be paved at this time because during phase II construction a portion of the paved area will need to be removed. O'Neill noted that on past occasions, the City has allowed other businesses to delay paving of certain areas in anticipation of later development. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to approve the variance request based on the finding that the proposed variance will not impair an adequate supply of light and air to adjacent property, will not unreasonably increase the congestion on a public street, will not increase the danger of fire or endanger the public safety, will not unreasonably diminish or impair established property values within the neighborhood, or in any other way be contrary to the intent of the ordinance. As a condition of the variance, the public works department is directed to be vigilant in maintaining the drive areas and shall apply water to the drive areas when necessary to control dust. Motion carried unanimously. Consideration of award of contract for public works facility, phase I. John Simola explained that at the June 8 regularly scheduled meeting, staff presented bid results for the public works facility, phase I, received on May 29. The building committee and the City Engineer recommend that the City Council award the project to the lowest responsible bidder, the Rochon Corporation, based upon the low base bid of $458,974.30, which includes the building; site work; west drive area; soil correction; add alternate #1, the radiant heating system at a cost of $31,300; and add alternate #2, the sign shop and storage mezzanine, at a cost of $20,600; for a total award of $510,874.30. Page 13 Council Minutes - 6/22/92 After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to award the contract for the new public works facility, phase I, to Rochon Corporation based upon the base bid and add alternates #1 and #2 for $510,874.30. Motion carried unanimously. 25. Consideration of offer to purchase future 7th Street right -of - way --Marvin Kramer property. This item was tabled because the appraisal assisting Council in making its decision was not available by meeting time. 26. Consideration of amending public nuisance ordinance. Rick Wolfsteller reported that in order for the County Attorney to continue prosecuting violators who refuse to cooperate with local officials, the County has asked that city ordinances regulating abandoned vehicles be consistent throughout the county. It is requested that written notices give the property owner 15 days to comply and correct the violation. Since our ordinance currently gives the property owner 10 days, the ordinance should be amended for only motor vehicle public nuisances allowing 15 days to comply. The 10 - day provision can remain as far as other public nuisance sections are concerned. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to adopt an ordinance amendment extending the time period for corrections of violations concerning junked automobiles and vehicles from 10 days to 15 days as requested by the County Attorney's office. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 229. 27. Consideration of bills for the month of June. A motion was made by Shirley Anderson and seconded by Clint Herbst to approve payment of bills as submitted. Motion carried unanimously. 28. Other matters. Rick Wolfsteller reviewed the current status of the Kjellberg West Mobile Home Park and requested that the Council give him further direction with regard to negotiating the terms and conditions associated with connecting the west park to the city sewer system. It was the consensus of Council that since Kjellberg did not act on previous commitments made by the City to Kjellberg regarding the hookup of his mobile home park to the city, and since said agreements expired long ago, it was the consensus of Council to completely renegotiate any terms and conditions associated with providing sewer service to the east and west Page 14 Council Minutes - 6/22/92 parks. It was also the consensus of Council that both the east park and the west park should be connected to the city system simultaneously. Wolfsteller noted that the PCA will be meeting with Kjellberg regarding this matter, and it is likely that the PCA will also require that both east and west parks be hooked up to the city. There being no further discussion, the meeting was adjourned. Jeff O'Neill Assistant Administrator Page 15