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City Council Minutes 07-13-1992MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, July 13, 1992 - 7 p.m. Members Present: Ken Maus, Shirley Anderson, Clint Herbst, Brad Fyle, Dan Blonigen Members Absent: None 2. Approval of minutes. Brad Fyle corrected item #5 of the June 22, 1992, minutes by noting that he voted in opposition to awarding sidewalk improvement project 92-08SW. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve the minutes of the regular meeting held June 22, 1992, as corrected. Voting in favor: Ken Maus, Brad Fyle, Shirley Anderson, Clint Herbst. Dan Blonigen abstained, as he did not attend the meeting of June 22, 1992. 3. Citizens comments/petitions, requests, and complaints. None forthcoming. 4. Consideration of a zoning ordinance amendment to home occupation regulations eliminating the requirement that no other than persons residing on the premises shall be employed. Applicant, Dave and Joan Thielman. Assistant Administrator O'Neill informed Council that the zoning ordinance amendment request stems from a home occupation permit application submitted by Dave and Joan Thielman. Thielmans have nearly completed their new home at 210 Jerry Liefert Drive and wish to engage in a home occupation at this location that would include hiring of one part-time employee. They hope to hire a second employee if the business grows. O'Neill noted that the Thielmans coordinate band tours and high school music festivals done entirely through the use of the telephone. No clients come to the office to conduct business. O'Neill noted that in order for the Thielmans to conduct the business as proposed, the city ordinance will need to be amended to allow employees to work at a home occupation. O'Neill reported that the Planning Commission reviewed the situation, and on a 3-2 vote recommended to deny approval of the zoning ordinance amendment based on the finding that allowing employees to work at the home is not consistent with Page 1 Council Minutes - 7/13/92 the comprehensive plan. Planning Commission was concerned that allowing employees at a home occupation, no matter how transparent to the neighborhood, could open the door to future home occupation activities utilizing employees that would operate in a manner that would have a negative impact on the residential character of a neighborhood. Dave Thielman provided a detailed review of his business and noted the circumstances leading to the request for the zoning ordinance amendment. Ken Maus noted that the city ordinance as it now exists does allow home occupations that may be less transparent to the neighborhood than the home occupation proposed by Thielmans. It was his view that the ordinance should provide for an exception that would allow an employee to work at the site if the presence of the home occupation in the neighborhood can remain transparent. George Brandon noted that businesses should remain in commercial areas. Allowing businesses to operate in residential areas in homes creates unfair competition with businesses that pay commercial taxes or pay rent to a landlord that pays commercial taxes. Brandon was also concerned about the difficulty in policing home occupations with employees. Clint Herbst recognized that Thielmans are good neighbors and will be an asset to the neighborhood; however, Herbst was concerned about setting a precedent. He was concerned that a different operator of a home occupation with employees might not be as neighborly. Shirley Anderson concurred with Clint Herbst's view. Dan Blonigen noted that the intent of the ordinance is to assure the neighborhood that the home occupation will not become a detriment. He was not sure if the ordinance as written accomplishes that intent. Brad Fyle noted that he would like to see a variance or an exception to allow the Thielmans to operate their home occupation as proposed with an employee. Assistant Administrator O'Neill noted that some cities use a two-tier approach when reviewing home occupation proposals. O'Neill suggested that the Council consider adopting an ordinance amendment that would provide a mechanism enabling the distinction between permitted home occupations and special home occupations. Home occupations that meet minimum Page 2 Council Minutes - 7/13/92 requirements (permitted home occupations) may be allowed through an administrative process. Home occupations that do not operate in a manner completely consistent with minimum requirements such as the Thielman home occupation would be allowed only after a determination is made by the Planning Commission and City Council via the public hearing process that the special home occupation operates in a manner that is consistent with the intent of the ordinance. Under the proposed zoning ordinance amendment, special home occupations would be reviewed on a case-by-case basis. Dick Frie stated that his home is next to the Thielman residence and that he sold the lot to the Thielmans fully aware of the home occupation. He noted that he would not have sold property to Thielmans if he thought the Thielman home occupation would diminish his property value. Frie stated his support for an amendment to the zoning ordinance which would allow flexibility in addressing home occupations that do not entirely meet the minimum requirements but operate in a manner that makes them transparent to the neighborhood. After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to call for a public hearing on development of an ordinance amendment updating regulations governing home occupations. Voting in favor: Brad Fyle, Dan Blonigen, Shirley Anderson, Ken Maus. Opposed: Clint Herbst. A motion was made by Dan Blonigen and seconded by Ken Maus to table consideration of an ordinance amendment to home occupation regulations eliminating the requirement that no other than those persons residing on the premises shall be employed. Motion carried unanimously. 5. Consideration of an offer to purchase future 7th Street right - of -way --Marvin Kramer property. In his written report to Council, Rick Wolfsteller, City Administrator, recommended that the City acquire the Marvin Kramer property. The appraisal now available keeps our cost under $150,000, and municipal state aid funds are available to reimburse us for this expense. Wolfsteller noted that if the City has to deal with another property owner in the future or go through condemnation when the road is needed, it is possible that the City could be paying much more than our net holding cost could be today. Ken Maus noted that the appraisal came in at a cost close to the amount that the City Council indicated that it was previously willing to pay for the property. Page 3 Council Minutes - 7/13/92 Clint Herbst agreed that the City should go ahead with this purchase. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to accept the appraisal and offer to purchase the property for $135,000 plus the City assuming $14,307 in assessments and agreed to pro -rate the real estate taxes for the balance of the year, August 1 through December 31. Motion carried unanimously. 6. Consideration of increasing police contract hours for 1993. In his report to Council, Wolfsteller noted that the Police Commission recently met with Sheriff Don Hozempa and Chief Deputy Don Lindell to discuss our current level of service provided under our police contract and to consider the need for increasing coverage in the future. The Police Commission was informed that in the past few years, calls for service throughout the day have increased significantly and response times have suffered during certain hours. After discussing the need for increased coverage within Monticello, the Commission recommended that the City Council increase the coverage level in 1993 to accommodate a 24 -hour - per -day coverage with an additional 8 hours for a second deputy on Fridays and Saturdays. Wolf steller noted that the additional coverage would allow the City to have a deputy on duty between the hours of 6 a.m. and 9:30 a.m. Presently, there is no consistent police presence in the community at this time. Wolf steller explained that the City has received inquiries and complaints regarding speed violators along Broadway during these hours. In addition, as the community keeps growing, crimes and calls for service will be increasing as they have in the recent past. Clint Herbst noted that the overall cost of providing police protection via the Sheriff's contract is getting close to a point where the City needs to be investigating the need to start our own police department. Brad Fyle was concerned about the cost. He noted that the City of Buffalo police fund is pushing $600,000 versus the proposed 1993 cost to the City of Monticello of $261,500. Lieutenant Lindell outlined the benefits of having 24-hour coverage. He stated that 24-hour coverage would give the City more flexibility in realigning some of the hours. In addition, response time and service during morning hours would Page 4 Council Minutes - 7/13/92 improve. Currently, all calls taken between 6 a.m. and 9:30 a.m. must be responded to by two cars roving in the county. These cars may at any particular time be quite some distance from the city. By increasing the hourly coverage to 24 hours, the City can be assured excellent response time to all calls any time of the day. After discussion, a motion was made by Shirley Anderson and seconded by Brad Fyle to approve increasing coverage to 24 hours per day and include a second deputy 8 hours per day on Fridays and Saturdays starting in 1993, increasing coverage from 7,321 hours to 9,176 hours, and increasing the 1993 budget by $52,867 over the present contract amount. Voting in favor: Ken Maus, Brad Fyle, Shirley Anderson. Opposed: Clint Herbst and Dan Blonigen. Blonigen and Herbst stated that the need has not been demonstrated sufficiently for the additional morning coverage. 7. Consideration of a request to amend a condition of a previously -approved conditional use permit. Applicant, Hillside Partnership/Sixth Street Annex. AND 8. Consideration of a variance request to allow less than the minimum off-street parking spaces. Applicant, Hillside Partnership/Sixth Street Annex. Assistant Administrator O'Neill reported that the Planning Commission reviewed the request submitted by Hillside Partnership which would allow a restaurant facility to be allowed in the Sixth Street Annex. O'Neill noted that the original conditional use permit did not allow a restaurant facility because the site plan did not contain enough parking spaces to satisfy the demand created by a restaurant facility. O'Neill noted that the Planning Commission finding was based on a report provided by the City Planner. O'Neill reported that the Planning Commission recommended that the Sixth Street Annex conditional use permit be amended to allow a restaurant contingent on the total restaurant square footage and associated parking not exceeding parking stall capacity. Amendments to the approved parking plan showing additional spaces shall not compromise screening requirements as identified in the approved landscaping plan. O'Neill noted that under this alternative, Annex is able to develop 10 more parking would then have enough parking spaces 1,900 sq ft restaurant. Page 5 if the Sixth Street spaces on site, it to accommodate a Council Minutes - 7/13/92 Clint Herbst noted that the popularity of restaurants is very unpredictable. It could occur that the parking demand for the restaurant will create a problem for parking in the rest of the development area. Herbst also noted that many of the parking spaces are located in the rear of the structure and are not easily accessible. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to deny approval of the amendment to the conditional use permit allowing a restaurant facility in the Sixth Street Annex. Motion is based on the finding that available parking at the site is insufficient due to the fact that the surplus parking spaces necessary to accommodate the restaurant are located in an area with poor accessibility to restaurant patrons. Voting in favor: Clint Herbst, Dan Blonigen, Shirley Anderson, Ken Maus. Opposed: Brad Fyle. 9. Consideration of redesign of Bridge Park restroom warming house building with the option for the City to be the general contractor for the project. John Simola, Public Works Director, reported that he met with Haymaker Construction, the architect, and with local contractors in an effort to outline a plan for completion of the Bridge Park restroom warming house in the most cost- effective manner. Simola recommended that the Public Works Director and Street/Park Superintendent be authorized to negotiate a design change with TKDA not to exceed $1,500 and to bid or quote out the individual portions of the work to local area contractors with City staff being the general contractor. Simola noted that he's confident that this would bring a package back to the City Council that would be within budget. Dan Blonigen objected to providing additional funds to the architect. It was his view that the City should cease working with an architect and hire a draftsman to complete any design changes. These design changes could then be reviewed by an architect. Ed Delaforest noted that a public building such as a warming house cannot be designed in this manner according to state statutes. State statutes require that the actual design work be either conducted by the architect or actually done under the supervision of an architect. Delaforest did not think that an architect would sign off on plans that were done by someone out of his direct supervision. Page 6 Council Minutes - 7/13/92 After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to place the West Bridge warming house project on hold until the first of the year and authorize City staff to request that TKDA redesign the warming house without the City paying additional design costs. Motion carried unanimously. 10. Consideration of final payment to Buffalo Bituminous for City Hall Parking Lot Project 92-01. John Simola reported that all of the work performed by Buffalo Bituminous is complete and acceptable, and it is recommended that the City Council authorize final payment. After discussion, a motion was made by Dan Blonigen and seconded by Clint Herbst to authorize final payment to Buffalo Bituminous for the city hall parking lot construction in the amount of $1,426.38 pending receipt of standard state forms and lien waivers. Motion carried unanimously. 11. Consideration of final payment to Olson & Sons Electric, Inc. , for City Hall Parking Lot Lighting Project 92-05. John Simola reported that the project is now complete with the exception of a small problem with one of the time clocks, which is anticipated to be corrected by the time of Monday evening's meeting. Simola went on to recommend that the City Council authorize final payment to Olson & Sons Electric for $1,993. After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to make final payment to Olson & Sons Electric for the City Hall Parking Lot Lighting Project 92-05 in the amount of $1,993. Motion carried unanimously. 12. Consideration of final payment to Electric Systems of Anoka, Inc., for Ballfield Lighting Project 92-01BFL. John Simola reported that the ballfield lighting project, which consisted of lighting one baseball field and one softball field at the City's fields near the NSP Training Center, is now complete. The lighting levels have been verified for the specification and found to be excellent. More than 50-60 games have been played or finished under the lights, and we all have received many compliments from local people as well as out-of-town visitors. Simola went on to recommend that final payment to Electric Systems of Anoka in the amount of $13,276 be made. Page 7 13. 14. Council Minutes - 7/13/92 After discussion, a motion was made by Clint Herbst and seconded by Shirley Anderson to authorize final payment to Electric Systems of Anoka, Inc., for $13,276.80 contingent upon delivery of as -built plans and appropriate lien waivers and state forms. Motion carried unanimously. Consideration of advertising for City Assessor services. In his report to Council, Rick Wolfsteller reported that since September 1989, the City has had a contract arrangement with Peggy Stencel to perform assessing duties for the City of Monticello. Peggy Stencel recently submitted her resignation as City Assessor; as a result, the City will have to seek the services of another assessor or attempt to utilize the County Assessor for city assessment work. Wolfsteller went on to recommend that the City request proposals from qualified individuals to perform part-time assessing functions. If after a few weeks of advertising we do not find a qualified individual, the City Council could then consider creating a job description for a full-time position that could include assessing duties and other zoning/ building inspection functions. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to authorize advertisement for services of a City Assessor and request proposals from individuals for a part-time contracting arrangement. Motion carried unanimously. Consideration of authorizing senior citizen building roof repairs. Rick Wolfsteller, in his report to Council, noted that City staff has been informed that the senior citizen building has been experiencing water leaks during rain storms. Wolfsteller went on to outline the options for repairing the roof. After discussion, a motion was made by Brad Fyle and seconded by Dan Blonigen to authorize the senior citizen building roof to be repaired by High Tech Roofing at a base bid amount of $1,416. Page 8 Council Minutes - 7/13/92 15. Consideration of providing the Value Plus developers with a trunk sewer fee credit in an amount equal to the added cost associated with constructing a deep sewer line capable of serving the area south of Cardinal Hills development area. Assistant Administrator O'Neill informed Council that the sanitary sewer system serving phase II of Cardinal Hills was designed to facilitate a street and utility connection point for future development of the area south of Cardinal Hills. This design required that the system be installed at a deeper elevation than what would be necessary if it had been designed to serve only phase II. Even though the deeper sewer design added $33,600 to the initial cost of the sewer line, it was selected because it would, in the long term, significantly reduce the cost to serve the area south of Cardinal Hills. The present development agreement governing the financing of Cardinal Hills improvements requires that the developer pay the oversizing cost via the assessment process. The developer is concerned about the prospect of financing the added cost associated with providing sewer access to another property. O'Neill reported that it is the recommendation of City staff that the sewer system be constructed as planned with the deeper design and that Council amend the development agreement by granting the Value Plus developers a trunk sewer fee credit in an amount equal to their added cost associated with the deep extension of the sewer line. This alternative is recommended because the deeper design is the least expensive option for providing trunk sewer service to points south of Cardinal Hills and results in the best ratio of land made developable versus cost, which creates the best potential for recovering trunk sewer expenses via revenue generated by trunk sewer fees. In addition, granting a credit against the developer's trunk sewer expense makes sense because the added cost to extend the deeper line is, in actuality, a trunk cost or an expense associated with providing sewer service to an area beyond lots improved by the sewer line. Finally, O'Neill noted that this alternative has no direct impact on the taxpayer. The actual up -front cost from the deeper line will be paid via the assessment against each lot built with phase II. In exchange, the City will be giving up short-term collection of trunk fees through phase II and part way into phase III. Long-term collection of the cost to extend the trunk line through phase II would then be recovered through trunk fees charged against new areas developed south of Cardinal Hills. Page 9 Council Minutes - 7/13/92 After discussion, a motion was made by Clint Herbst and seconded by Dan Blonigen to amend the development agreement governing phase II of the Cardinal Hills subdivision by granting the Value Plus developers a trunk sewer fee credit in an amount equal to the added cost associated with the deep extension of the sewer line ($33,600). Motion carried unanimously. 16. Consideration of adopting 1993 Monticello Heartland Express Management Plan and adopting a resolution entering into a contract with the State of Minnesota Department of Transportation to provide public transportation. Assistant Administrator O'Neill reviewed ridership and budget trends. He summarized the statistics by noting that the cost to operate the system has decreased while at the same time, fare revenue has decreased slightly. As a result, the cost to the City to operate the bus system in 1992 is projected to be $1,400 less than budget. O'Neill noted that the 1993 projected budget projects a total operations cost of $65,919, with revenue sources including $39,552 from the State of Minnesota, $9,591 from fare revenue, and $16,777 from the City. The 1993 proposed City contribution is $1,000 less than the contribution approved for 1992. Shirley Anderson noted that City staff has been able to reduce administrative expenses associated with this program through the use of a computerized reporting system and by allocating more of the time necessary to prepare the state reports to clerical staff. Ken Maus suggested that the Monticello Transportation Advisory Committee should focus harder on marketing the bus system. It was the consensus of Council that the advisory committee should also consider adjusting the fare schedule in an effort to increase the portion of the cost paid by bus riders. After discussion, a motion was made by Shirley Anderson and seconded by Clint Herbst to adopt the 1993 Monticello Heartland Express Management Plan and adopt a resolution entering into a contract with the State of Minnesota Department of Transportation to provide public transportation. Motion carried unanimously. SEE RESOLUTION 92-18. 17. Other matters. John Simola reported that the excavation work necessary to prepare the foundation for the public works facility is not progressing as expected due to the fact that the material Page 10 Council Minutes - 7/13/92 under the structure included more debris than expected. Due to this problem, there was a need to oversize the excavation area more than originally anticipated. In order to properly fill and compact the larger excavated area, the City will need to bring in 2,000 to 3,000 cubic yards more fill material. Solving the problem will add approximately $15,000 to the cost of the project. This should not, however, delay the project. Simola noted that the excavated material is being moved to a berm on Outlot A of Country Club Manor. The berm will be 40 ft wide and 6 ft high. Simola noted that the berm will be shaped properly, covered with topsoil, and seeded as quickly as possible. John Simola requested that Council consider a change order to the public works facility project that would allow installation of foam insulation versus bead insulation. Simola noted that the foam application will benefit the facility by providing approximately 30% more wall insulation than the styrafoam beads. The added cost will be $1,500. After discussion, a motion was made by Brad Fyle and seconded by Shirley Anderson to approve a change order allowing foam insulation to be installed at the public works facility versus bead insulation within the blocks. John Simola informed the City Council that the building contractor has offered to install a raked joint block instead of a concave joint block at an added cost of only $1,200. Simola noted that the raked joint block will provide added texture to the wall of the structure and would be for aesthetic reasons only. After discussion, a motion was made by Clint Herbst and seconded by Brad Fyle to adopt a change order authorizing installation of raked joint block if the price of the raked joint block application can be reduced to equal the cost of the concave joint scored block wall. Motion carried unanimously. There being no further business, the meeting was adjourned. Je if VNeill Assistant Administrator Page 11