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City Council Agenda Packet 01-27-2003 AGENDA REGULAR MEETING - MONTICELLO CITY COUNCIL Monday January 27, 2003 - 7 p.m. . Mayor: Bruce Thiclen Council Members: Brian Stumpr Roger Carlson, Glen Posusta 1. Call to order and Pledge of Allegiance 2. Approve minutes of January 13, 2003 regular Council meeting. 3. Consideration of adding items to the agenda. ~: [D,4 4ff't-'(f"'~'1t- (COIJ~l'~,f) 4. Citizens comments/petitions, requests, and complaints. 5. Consent agenda. A. Consideration of ratifying new hires as identi fied. . B. Consideration of renewal ofpcl\vn shop license for Waifs Pcl\\n Shop. 6. ~ Consideration of items removed from the consent agenda for discussion. 7. Public I tearing on adoption of delinqucnt utility accounts f\.)r third quarter 2002 and certification of amounts to Count\. I\) ~ . 1\(,lG) ()/ Consideration of appeal of Planning Commission decision to approve a \ariance request by TDS Telecom to rcduce the buffer yard setbacks. (7~tMy(h. i:" ,'tf'1.kP-? Tb D/L-1;if~;::J;) 9. Consideration of approving proposed purchase and lease agreements of e\:change of the library f~lcility and i\brquette Bank property. 10. Approve payment of bills for January 11. Adjourn . i"'~ . . . MINlJTI~S REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, .January 13,2003 - 7 p.m. Members Present: Roger Carlson, Glen Posusta, Brian Stumpf and Bruce Thielen. Melnbers Absent: None. City Administrator, Rick Wolfsteller, gave the oath of o1Tice to the new Mayor, Bruce Thielen, and to Councilmelnber Glen Posusta. 1. Call to Order and Pled1!e of Alle2iance. Mayor Thielen called the meeting to order and declared a quorum present. The Pledge of Allegiance was said. 2. Considerations of options for filling vacancy on Council. City Administrator, Rick Wolfsteller, reviewed the options for filling the balance of the council term that was held by Bruce Thielen. The Council could lnake an appointment from the other candidates who ran for office in the 2002 election. They could conduct a special election to fill the position or they could solicit interested individuals, conduct interviews and appoint someone from the list of applicants. Brian Stumpf felt that a selection should be made from the candidates who ran for office since they had shown their interest by running for the position. R.oger Carlson stated that many people who had interest the position did not run because of the large, number of candidates that were already in the race and by restricting the appointment to only those people who had run for of/ice the City would be eliminating a group who were interested in serving but did not run. Glen Posusta concurred with Brian Stumpf that one of the candidates who had run for o11ice should be considered. BRIAN STUMPF MOVED TO APPOINT THE THIRD HIGHEST VOTE GETTER IN THE 2002 ELECTION, TOM PEIZRAULT, '1"0 FILL TIlE BALANCE OF 'rilE COUNCIL TERM ()l<" BRUCE THIL':LEN. GLEN POSUSTA SECONDED THE MOTION. UPON VOTE BEING TAKEN, POSUS'I'A AND STUMPF VOTED IN FAVOR THEREOF AND CARLSON AND THIELEN VOTED AGAINST. City Administrator, Rick Wolfsteller advised that in the case of a tie vote, the Mayor cottld appoint an individual at his discretion to fill the vacant seat. Bruce Thielen stated that he wants to do the application process and not make an appointment at this meeting. He suggested that the City take applications to fill the vacant council position until 4:30 p.m. on January 31,2003. The Council will then rank the applicants and a speciallneeting will be set for Monday, February 10,2003 at5 p.m. for the Council to interview the top ranking applicants. . . . Council Minutes - 1/13/03 3. Approve minutes of the December 9, 2002 regular Council meeting. ROGER CARl ,SON MOVED TO APPROVE TIlE MINUTES OF TI-IE DECEMBER 9, 2002 REClULAR COUNCIL MEETING. BRIAN STUMPF SECONDED TlIE MOTION. MCrrlON CARRIl':I) UNANIMOUSLY. 4. Consideration of addin1! items to the agenda. Mayor Thielen added to the agenda: I) Acknowledgment orthe investigative report on Glerl Posusta's residency requirement; 2) Scheduling ofa meeting oflocal government units to discuss the budget deficit and its impact on the various units: 3) Set a workshop fl1r the Council to identify goals and establish priorities flX what the Council wants to accomplish; 4) Announce office hours for the Mayor andS) Update on the status of the library building. 5. Citizen comments/petitions, requests and complaints. Mayor 'fhielcn stated that the purpose of the citizen comments portion orthe meeting was to allow residents an opportunity to comment on items that were not on the agenda. I Ie stated that there would be a follow up staff report relating to any questions and issues brought up in this portion of the meeting. A. Rick Borden, city auditor, and Tom Koop. a representative from Larson Allen came bdl)l'e the Council to discuss recent changes that have occurred in the firm that had done the City's auditing for many years. Rick Borden stated that as, of January 1,2003 Gruys Borden and Carlson had merged with Larson Allen. Although the firm name has changed, the staff remains essentially intact and they will be keeping their onice location in Monticello. Rick Borden noted that with the changes taking place in auditing requirements such as GASH 34, there was a need for lllore specialized help. The rnerger with Larson Allen brings in this specialized help. B. Dick Frie, Planning Commission Chair, informed the Council that because of the large number of public hearings and lengthy agendas, the Planning Commission has changed the starting time for their meetings, which is normally the first Tuesday orthe monthhom 7 p.m. to 6 p.m. in an effort to adequately address all issues that come bdl)re the Planning Commission. c. Joan Larson, 11 Sandtrap Circle, questioned the Council's giving the land for the proposed ice facility. She stated that with the economy as it is, the City should look at generating SOlne revenue from this property rather than giving it away. Ms. Larson stated that revenue frorn the land could be used fl)r infrastructure improvements such as the extension of 7th Street. She specifically questioned whether the Council had voted to do so. Bruee 'fhielen slated that the Council had not voted 011 it but it was the consenslls orthe Council to provide 2 . . . Council Minutes - 1/13/OJ the land fl.lr the f~lCility. D. Christina Johnson Koshiol from the Briar Oakes area stated her interest in getting more involved in the community. She felt there was a need to get more information out to the public including agendas, minutes, etc. It was noted that the City's website was not current and Jeff O'Neill explained that the person who had rnaintained the City's website had left his position and the City had not yet JiIled the vacancy. 6. Consent Acenda. A. Consideration of approving new hires and departures for Community Center and Parks. Recommendation: Ratify the new hires as identified. B. Consideration of resolution authorizing mutual aid assistance. Recommendation: Adopt the resolution granting the City Administrator authority to provide emergency equipment and personnel to other jurisdictions as warranted. Res. No. 2003-1. C. Consideration of adopting increases to the development fee structure. Recommendation: Adopt the 2003 fee structure. D. Consideration of a request to amend the preliminary plat of Groveland Fourth Addition and rezone hom A-O (agriculture) to R-I (single tllmily residential) and B-2 (Business) Recommendation: 1) Rezoning ~ Approve the rezoning for Grovcland 4th Addition ii'om A~O to R I and .B-2 based on the finding that the rezoning is consistent )\lith the Comprehensive Land Use Plan and will accommodate orderly land use and transportation patterns in the area. 2) Approve preliminary plat for Groveland 4th Addition based on a nnding that the plat layout appears to renect the appropriate zoning standards with the condition that Lots 11-13, Block 6 and Lot 6, Block 5 are redesigned to avoid the sharply pointed rear yard design, the applicant supply a landscape plan in compliance with the buJTeryard standards and the revised R~ 1 plat regulations, and agreements/easements are in place allowing connection to the future alignment of School Boulevard. Ord Amd #384. E. Consideration of resolution authorizing feasibility study for Marvin Road sanitary sewer lift station and trunk improvements serving the Groveland Subdivision. Recommendation: Authorize completion of a feasibility study on trunk sanitary sewer improvements serving the Ci-rovcland subdivision. Res. No. 2003-5. F. Consideration of a conditional use permit PUD for development of a Home Depot located on Ceelar Street between Dundas Road and Chelsea Road. Applicant: Rirchland Development Co., John Lundsten, Jerry Mathwig, Lee Parks and 'rhe Home Depot. Recommendation: Approve the pun concept plan based on the finding that the PUD concept plan, with conditions is consistent with the City's Comprehensive Plan and is in '"l _J Council Minutcs - 1/13/03 . cOlnpliance with the City's Zoning Ordinance. Conditions of approval: I. A landscape plan is submitted tbat includcs screening of the loading area and rnechanical equiprm;nt li'om Cedar Street. 7 The outdoor scasonal sales area is acceptable but must meet landscaping and performance standards identified at development stage PUD. 3. Landscaped islands are added in li'ont of the entry vestibule and along the drive aisle adjacent to the neighboring retail site. 4. The entire parking and drive area is surrounded with curbing. 5. Incorrect properly lines arc eliminated li'orn the site plan to add clarity. 6. Ifphasing of the storm water detention pond is proposed, this is incorporated as part of the planning and would be subject to review and approval by the City Engineer. 7. The developcr submit a complete PUD development stage application in accordance with Chapter 20. Section 20-4[B]5 of the Zoning Ordinance requires that the development stage application be submitted within nine (9) months of the date ofconccpt plan approval. X. Comments fronl other City staff. . c. Consideration of authorization to submit an Environtncntal Assesstnent Worksheet to the I':nviromnental Quality Hoard for the I--Iome Depot/Retail I3 development. R('coJllln('ndation: Move to accept the Ilome Depot/Retail B Environmental Assessment Worksheet and authorize publication in the FQH Monitor. I-I. Consideration of approving joint resolution supporting annexation or 2 acre Richard Davidson parcel. Recommendation: Adopt the joint resolution supporting annexation of the Davidson parcel as proposed. Res. No. 2003-2 I. Consideration of approving joint resolution supporting annexation 01'55 acre Chadwick parcel. R(,collllll('lldation: Adopt the joint resolution supporting annexation of the Chadwick parcel. Res. No. 2003-3. J. Consideration of a resolution authorizing preparation of a feasibility study on construction of the Meadow Oaks Sanitary Sewer Bypass. R('commcndation: Authorize City Engineer to cotnplcte a feasibility study as proposed in the City Engineer's letter of January 10,2003. Res. No. 2003-6. K. Consideration to amend the Contract for Private Development by and among Front Porch LTD., the HRA and the City. R('commcndation: Move to amend the Contract for Private Developtnent by and among Front Porch Ltd., the lIRA and the City consistent with the HRA motion of January 8, 2003. . 4 . . . Council Minutes - 1/13/03 Brian Stumpf requested that item #6C be removed from the consent agenda fl.)r discussion. ROGER CARLSON MOVED TO APPROVE THE CONSENT AGENDA WlTHlTEM //6C BEING REMOVED, BRIAN STUMPF SECONDED THE MOTION, M(J'T'ION CARRIED UNANIMOUSL Y. 7. Consideration of items removed from the consent ~H!enda for discussion. Item #6C relates to an increase in the various fees the City charges and Rick Wolfsteller clarified that the fees were increased about 4% which was in keeping with what was done in the past. The only item that had a significant increase over 4lYo was the water meter fee. The City is requiring radio read meters for all new construction and will eventually retrofit all existing meters to be radio read. The cost for this type of meter is higher. Brian Stumpf felt the staff should survey other communities as to what they charge in fees to make sure the City is not out of line. BRIAN STUMPF MOVED TO APPROVE 'IlIL DEVELOPMENT FEES fOR 2003 AS RECOMMENDED WITH THE STAFF TO CONDUCT A SURVEY OF FEES CHARGED BY CHIIER COMMUNITIES. ROGER CARLSON SECONDED 'rI IE MOTION. MOTION CARRIED UNANIMOUSI,y. 8. Consideration of annual appointments for 2003. The Council reviewed the appointments for 2003. It was noted that the depository should be corrected to read Wells Fargo instead of Marque~te Bank, Bruce Thielen reviewed the appointment of Council representatives to various boards and noted that when an individual is appointed to Jill the vacant Counei I position, he/she will also be assigned to serve as I iaison to a board. ROGER CARLSON MOVED TO APPROVE THE FOLLOWING APPOINTMENTS: 2003 ANNUAL APPOINTMENTS Official Depositories: Wells Fargo - Monticello Chief Financial Officer - authorized to designate other depositories for investment purposes only. Newspaper: Monticello Times Health Officer: (1 year) River Place Physician Clinic 5 . . . Acting Maym': (1 year) Joint Commissions: Community Education Fire Board Attorney: Planner: Auditor: Recycling Committee: Engineer: Housing & Redevelopment Authority: (5-year staggered terms) Planning Commission: (Assuming 3-year staggered tenllS) Library Board: (3-year staggered) Economic Development Authority: (6-year staggered terms) Council representative to be announced Police Advisory Commission: (3-year staggered terms) Parks Commission: (3- year staggered tenl1s) Council Minutes - 1/13/03 Urian Stumpf To be announced Rick WolJsteller and Brian Stumpf Matt Braid Camphell Knutson Northwest Associated Consultants (Steve Grittlnan) Larson Allen & Associates (lien Posusta WSB & Associates NAME TERM EXPIRES 1. Steve Andrews I. 2. Dick Frie Rod Dragstcn I. Tom Parker Dawn Grossinger I I. 2. 1. 2. Brian Stump( Council Liz DeMarais 1. 2. Nancy McCaffrey I ,any Nolan 6 ] 2/2008 12/2005 12/2005 12/2005 12/2005 12/2008 12/2008 12/2005 12/2005 12/2005 12/2005 . . . Council Minutes - 1/ 13/03 DAT (Design Advisory Team) (2-year staggered terms) 1. 2. I~on Hoglund Roberta (Jerads 12/2004 12/2004 MCC Advisory Board (3-year staggered tenns) MCC established 9/11/00 and members 'lppointed 10/9/00. 1. 2. Richard Ouiek Bruce Thielen 12/2005 12/2005 Council liaison (ex-officio) appointments to City committees: 2003 Liaison Roger Carlson Brian Stumpf Bruce Thielen Brian StUlnpf Glen Posusta Bruce Thiclen HRA Planning Conlmission: Parks Conllnission: Police Commission: Library Board: MCC Advisory Board BRIAN STUMPf SECONDED TIlE MOTION. MUrlON CARRIED UNANIMOUSLY. 9. Consideration of approvin{! ioint resolution with Monticello 'fownship for annexation of Kicllber{!'s West Mobile Home Park. City Administrator, Rick Wol1"stelleL updated the Council on the status of the sewer connection for Kjellberg's West Mobile Home Park noting that service connection has been made. Monticello Township has approved the proposed annexation resolution. The only question was the number of units to be serviced. The development agreement of 1998 specified 200 units but it appears there may be one or two more units. BRIAN STUMPF MOVED TO APPROVE Tl-IE JOINT RESOLUTION FOR TilE ANNEXATION OF THE KJELLBERO.S WEST MOBILE IIOME PARK CONTINGFNT ON THE PA YMENT OF fEES FOR 200 OR 201 UNITS AT THE 1998 RATE. ROGER CARLSON SECONDED T'IIE MOTION. MOT'ION CARRIED UNANIMOUSLY. Other Items: Mayor Thielen acknowledged receipt of the investigative report Ii'om Levander, Gillen and Miller regarding the residency requirements for or/ice ancl that Glen Posusta met these requirements. Mayor Thielen then discussed setting a special meeting fe)l" the Council to discuss goals and priorities. Mayor Thielen stated that time and resources are limited so it is important do this type of planning. The 7 Council Minutcs - 1/13/03 . meeting was set for January 27,2003 at 5 p.m. Mayor 'fhielen announced that he will have office hours at the City Hall on the 2"d and 4th Mondays from 3 p.m. to 7 p.m. He can also be reached via e-mail at:bruce.thiclcn(~iki.monllcellQ.Jl~!llL.i City Administrator, Rick Wollsteller, updated the Council on the status of the library. The library is normally closed for some period over the holidays. Because of the proposed relocation to the new building, it was determined that the library would remain closed until they could mobr. The purchase documents have been sent to Wells Fargo but have not yet been returned. Once these documents have been received, the City will then work on the lease back arrangements. 10. Approve pavment of hills for .Januarv. BRIAN STUMPF MOVED TO APPROVE PA YMENT OF THE BILLS FOR JANlJARY. GLEN POSUSTA SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. ] L Adiourn. ROGER CARLSON MOVED TO ADJOURN AT 7:55 P.M. GLEN POSUSTA SECONDL:D THE MOTION. MOTION CARRIED UNANIMOUSLY. . Recording Secretary . 8 . . . SA. Council Agenda - 1/27/03 Consideration of approvinc: new hires and departures for Community Center and Parks. (RW) A. REFERENCE AND BACKGROUND: The Council is asked to ratify the hiring of new employees that have occurred recently in the Community Center and Parks Department. As you recall, it is recommended that the Council officially ratify the hiring of all new employees including part-time and seasonal workers. B. AL TF:RNATIVE ACTIONS: 1. Ratify the hiring oi'the part-time employees as identified on the attached list. C. SUPPORTING DATA: Lists of new employees. NEW EMPLOYEES . Name Title Department Hire Date Class Hedlund, Jason CW AU MCC 1/2/2003 part~time Lanners, Kaitlin Slide aU MCC 12/26/2002 part-time Larson, Anthony Winter park assist Parks 12/23/2002 temporary Peterson, Kristine Winter park assist Parks 12/23/2002 temporary Sonsteby, Sarah Ann Winter park assist Parks 12/26/2002 temporary Touhey, Douglas Winter park assist Parks 12/28/2002 temporary . TERMINATING EMPLOYEES Name Reason Department Last Day Class Belsaas, Roger vOluntary City Council 12/31/2002 Skillingstad, Ramon voluntary Liquor 12/31/2002 part-time . employee councillist.xls: 1/17/2003 5A . . . Council Agenda ~ 1/27/03 5B. Consideration of renewal of pawn shop license for Walt's Pawn Shop. (R W) A. l~EFERENCE AND BACKGROUND: The licensc J<Jr Walt's Pawn Shop expires in January. The license holder has paid the license fee for 2003 for the pawn shop at 149 West Broadway and the license bond is to be forwarded to the City shortly. The pawn shop license fee is currently $25/per year. B. ALTERNATIVE ACTIONS I. Approve the pawn shop license J<Jr Randel Thompson at 149 West Broadway contingent upon receipt of the license bond in the amount of $5,000. 2. Do not renew the license application. C. STAFF RECOMMENDATION: D. The license applieationis Jor an existing pawn shop and it is reconullcnded that the City Council approve the license contingent upon receipt of the license bond. SUPPORTING DATA: None. . . . City Council Agenda - 1/27/03 Add on City Council Agenda Item: 3A. Consideration of annual EDA appointment. (O.K.) A. Reference and hackground: ^t the EO^ meeting of December 16,2002, Commissioner Ken Maus elected to resign from the ED^ at the end of his term (December 2002) due to the lack of availability to attend meetings. The Commissioners suggested the two out-going Council members (Belsaas and Herbst) be asked to replace Maus to keep them involved In local government. ^t that time, I Ierbst felt he needed to step aside. I received a call from Herbst today and he expressed interest to serve on the EDA providing the seat had not been filled. Belsaas declined. If Belsaas and Herbst both declined, then the EO^ suggested to contact those individuals who ran for Council. Since this was the nrst suggestion of the EDA, the Council is asked to consider the appointment of Clint Herbst fix a 6-year term on the ED^ with an expiration date of December 2008. The appointment of Herbst provides experience and knowledge of ED^ policies and projects and is convenient with the scheduled ED^ meeting of January 29, 2003. B. Alternative Action: 1. ^ motion to appoint Clint Herbst as a commissioner of the EconOlnic Development Authority of the City of Monticello with an expiration date of December 2008. 2. A motion to direct the ^dministrator or Executive Director to proceed to solicit other candidates for appointment to the EDA. 3. ^ motion to table any action. C. Recommendation: The City Administrator and Executive Director recommend Alternative No.1 as this is consistent with the direction of the EDA. n. Supporting: Data: None. 1 Council Agenda - 1/27/03 . 7. Public Hearing-Consideration of a resolution adoptinl! proposed assessment roll for delinuuent utility bills and certification of assessment roll to County Auditor. (R W) A. REFERENCE AND BACKGROlJND: The City Council is again asked to adopt an assessment 1'011 for utility billing accounts which are delinquent more than 60 days and to certify the assessment roll to the County Auditor for collection on next year's real estate taxes. The delinquent utility accounts that arc included with the agenda are accounts that are at least 60 days past due and include all new delinquents li'om the last time we certified them. In addition to the delinquent amount, the Council also previously approved the establishment of an administrative fee of $50 per account that is added to each delinquent assessment. The amounts shown on the enclosed delinquent utilities list include the additional $50 administration fee for the preparation of the assessment roll. It is recoll1mended that the delinquent accounts be put on an assessment roll for certification at an interest rate of 6(% as allowed by state statute. As in the past, if any accounts arc paid within 30 days after the adoption of thc assessment roll, they can bc paid without the additional interest. After 3() days, payments will bc charged interest. B. -. J. , 2. C. ALTERNATIVE ACTIONS: Adopt the aSSCSSll1ent roll fl.)r the delinquent charges as presented. Based on public hearing input, adjust the assessment roll as required. STAFFRECOM M ENDA TION: It is staff recommendation that the Counci I adopt the assessment roll as presentcd. All of the accounts are at least 60 days past due ancl have been given proper notice or this assessment hearing and ample opportunity to pay the accounts in full. All utility accounts were notified that there would be an additional $50 administrative fee attachcd to each outstanding balance ifthc account was not paid by 4:30 p.m. on January 8, 2003. D. SUPPORTING DATA: Copy of resolution adopting assessment roll · Complete I isting of delinquent accounts to be certified. . . . . CITY OF MONTICELLO RESOLUTION NO. 2003~7 RESOLUTION ADOPTING ASSESSMENT ROLL FOR DELINQUENT UTILITY ACCOUNTS WIIERIi-.....15;, pursuant to proper notice duly given as required by law, the Council has Inet and heard and passed upon all objections to the proposed assessment for delinquent utility aeeotmt charges, NOT}r, TflER HFOR I,", BE IT RESOL VEL> flY THH CITY COUNCIL OF AI0N7'J('ELLO, kilN N ES'(n>l: 1. Such proposed assessment, a copy of which is attached hereto and made a part hereof: is hereby accepted and shall constitute the special assessments against the parcels named herein, and each tract ofland therein included is hereby found to be beneiitted by the assessment levied against it. 'I Such assessment shall be payable in one (I) annual installment payable on or beJ()IT the first Monday in January 2004 and shall bear interest at the rate of 6 percent per annunl Ji'om the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment hOln the date of this resolution until December 31, 2004. 3. The owner of the property so assessed may, at any time pt'ior to certification of the assessment to the county auditor, pay the whole of the assessment on such property with interest accrued to the date of payment to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution. 4. The City Administrator shall forthwith transmit a eertiiied duplicate of this assesslnent roll to the county auditor to be extended on the proper tax list of the county, and such assesslncnt shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council this 27th day of January, 2003. ATTEST: Bruce Thielen, Mayor -"'---.'---."-... -----."..-.-,... Rick Wolfsteller, City Administrator l . . ... , 1". ('\: ";' ) ...." .. \ ,.j ..~ '" '" I, ~g "ll " :'1 .c c, .S i\i " "",I " J..! !. ~ C.l.: '" I (J', il! ol o ;...J (1 ::-. 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III (II '1 [I DI 11,\ ~ \" ~ I(~ ,.l Y1 ~ D ,'., "" ., i"] '"~ CO " '" (") '" ~ U r,l c' Iv Fr r', Q :~ :,:r: ,. '""' ~ :::;: S f.-1 , ~ ,.'f. ;:; ,,, f~ n": ,,' U " ~< IIJ n 0) " '-,I '1: ~ >i: ;! !J:; 'M lJ ,I I/J ...-1 i'; {E " '""' ~ " " '" ['~ '""' ...l E-: ::) '.-j .." ,,' r1 " L ~ ~ (')1 ;....r '1' n ~~ (, E-< .% .~. ffi ", QI " 'd '~j ,:(, o. (J L~ ,.. H "" <I cr, "" .~1_ ," C< c< ("0"; (', ,.J.; CJ "- 0 ," ,,, (1) ,l j.! m m ..c: """ u Co' >. r'llo M I-I o IIj ('7\ Q ~I ,.. ~. , It \" " C! '.7; :~; r.." C, D ~ l~ " ~ ~~ "" ::3' ,or, " I. ]-, ~ M ,,, ::~ """ IT.I " ~ 9 '" ."-, 11~ o <" " '" n " . . . City Council Agenda - 01/27/03 8. Public Hearing: Consideration of an Appeal ofthe Planning Commissions decision to approve a variance to the buffer yard setback requirements alom! a portion of the easterly boundarv of the TDS Telecom faeilitv located at 316 Pine Street. Subject of the appeal is a 7' variance to the 15' buffer vard requirement. (.10) REFERENCE AND BACKGROUND The Planning Commission reviewed the variance request and approved it based on the findings identified under alternative 1 below. In response to this decision, the adjacent residential property owner (Richard Quick) is appealing the decision. City Council, acting as the Board of Appeals, is asked to review the findings by the Planning Commission, the suhsequent letter of appeal submitted hy Mr. Quick, along with the letter li"om Tom Ollig ofTDS and uphold or overturn the Planning COl1llnission's decision. Following is intlmnation provided to the Planning Commission along with new information provided by Quick and Ollig. 'IDS Telecom is seeking an expansion of its current J~lcility and parking lot along Trunk Highway 25 between 41h Street and 3rd Street. The property is currently developed with a huilding and a parking lot with street access to yd Strcet. The proposal would add a building cxpansion along 4th Street and expand the parking lot to the north of the existing building. The new parking lot would replace an existing lawn and sidewalk area. Because the property neighboring the parking lot is residential. a buJTeryard requirement would typically he imposed by the zoning ordinance. The buffer standards applying to these uses would be a width of 40 feet hom building to building, with a minimum planting area of JO feet in width. This buJTeryard would typically be shared "50-50" by adjoining properties. On the north side of the property, the applicant proposes no new buildings, but the parking lot is set back Jive feet from the property line (the minimum setback f()r parking lots). The applicant has proposed an extensive landscaping screen along the boundary line that exceeds the City's planting requirelllents for bufferyards, although the width oCthe area is narrower than standard. The applicant seeks a variance from that width. On the south side of the property (Quick Boundary) the applicant proposes development of an addition that would extend to within 23' - 4" of the boundary, which complies with the required building setback according to butTer yard standards. The curb edge for the drive area is proposed to extend to within 8'-1" of the property line which requires a 6'- I I" variance to the 15' buffer yard planting area. for variances, the applicant is required to demonstrate that a unique physical condition of the property exists that creates a hardship in complying with the strict standards of the ordinance. In this case, the standard would make it impossible to develop the parking lot, City Coul1ci I Agenda - 01/27/03 . and in Llct, would suggest the rell10val of some existing parking in this area. The lot in question is narrow and the applicant has taken significant Ineasures to mitigate the impacts of the expansion. Moreover, in the CCD District, the City's intcnt is to encourage maximization of the land use. ^s a result, the tests f(w variance appear to be met by this application, considering the size of the lot, the existing conditions on the lot, and the purpose of the eeD zoning district. Following is a summary of the Mr. Quick's items of concern, along with Mr. Ollig's responses. The letters arc also attached for your review. 1. Mr. Quick suggests that TDS should consider putting an additional story on the building to avoid the variance. Mr. Ollig indicates that the building is not structurally built to be able to add a second floor. 2. Mr. Quick is concerned about the tin1ely completion of the required buffer yard plantings. . Mr. Ollig has indicated a willingness to work with the two adjacent property owners regarding design and completion of bulTer yard fencing and landscaping. The City typically requires submittal of a landscape bond at the time that a building permit is issued. 'fhis requirernent helps to guarantee completion of required landscaping. ') -, . Mr. Quick is concerned about noise created by an existing generator which operates during emergencies and during testing. lie requests buffering or relocation of the generator. Similarly, he is concerned about the additional noise that will be generated from air conditioning and heating units which are being planned for the rooftop of the new addition. Both units will be close to thc Quick's bedroom. Mr. Ollig noted that TDS is looking at installation of a "Hospital Level Mu111er" which will reduce the cxhaust noise level and they will be directing the exhaust pipe away from the Quick residence. He notcd that the new air handling units will be quieter than the existing units and he suggested noise barricades be installed around the units as well. 4. Mr. Quick noted that the trash storage areas do not comply with City code because they are not completely enclosed. Mr. Ollig has indicated that he will develop the necessary trash enclosures. . 2 City Coune i I Agenda - 0 I /27/03 ALl~RNA TIV8 ACTIONS . 1. Motion to uphold variance to the buffer width standards granted by the Planning Con1l11ission, based on a finding that a hardship exists in complying with the typical standard, including width of the parcel, existing development, and purpose of the zoning district. Motion contingent on the f()llowing: A Development of a buffer yard planting plan rnutually agreed upon by TDS and adjoining neighbors. In the event mutual agreement docs not occur, the Planning Commission shall rule on the adequacy of the landscaping plan. The City shall require submittal of a landscaping bond based on the approved plan prior to issuance of the building permit f()r the addition. H. The existing generator shall be modified though installation of a Hospital Level Muffler and the exhaust shall be directed to the west away from the residential area. Measures must be taken to rnitigate sound Ii'OIn air handling units and shall be sufficient to suppress equipment sound to a level not to exceed ambient noise in the area. Such measures to i ncl ude installation of sound barriers. . C. Trash enclosures shall be installed per City code. 2. Motion to recommend denial of the variance, based on a linding that the applicant could comply with the standard by eliminating proposed parking 1'ron1 the plan. STAFF RFCOMMENDATION Staff reconunends that Council uphold the variance approval, based on the findings stated. It would appear to be counter to the intent of the CCD zoning district to require the wider landscaped yard in this case, particularly since the applicant has provided an extensive landscape planting in the available area. Additionally, it would appear that the concerns expressed by Mr. Quick can be resolved through cOInpletion of conditions A-C which further supports StafIrecommendation to uphold Planning COlnmission's variance approval. SUPPORTING DATA . Site Plan I.andscape Plan Building Plans Letter of Appeal hom Richard Quick Letter from Tom Olhg Planning Commission Minutes 3 ~ :. ;::"", ~ ,,~":l .t'.~::~ ..'. I':'t . "..:.":7 'l', : r.~ ,- '..,.... ...__ "".._..,_ v., . 003 Memo i..........-......,~....-~~~~.......,..,_~~..~.."~__,. .....~.... 1"01: fn:Mn; CC: DatB: _ ~7 ~L Monlicelo CIy Council (7 -1-J ~ Richard and Mary Jo Quick 'V ~ t..~~ Tom Ollig TOS January 15. 2003 Appeal of Planning Commission Decision of 1-7-2003- TDS variance request R. We live at 113 E 4th street which abuts the TDS property to the east. We are appealing the decision of the planning commission of 1f7l2oo3 which granted a variance to the buffer yard width standard with conditions. . This decision is appealed for the following reasons: 1. The CCD Pine District encourages two story buildings. If TOS were to put a second story on their existing building a variance would not be necessary. 2. There is no timeline for the condition of a signed agreement between TDS and us regarding the buffer yard plantings (and/or fencing which was discussed but fails to appear in the motion). We have also learned since the planning commission meeting that Mrs. Harstad 106 E. 3rd Street has expected a fence to be constructed between her property and the TDS parking lot off 3rd Street ever since that parking lot was constructed. That agreement also needs to be in writing. We appeal that these signed agreements be in place before building permits are issued. 3. It was our understanding that Mr. Ollig stated he would work with all of the affected neighbors concerning the buffering or relocation of the generator. We believe this condition should specify that the nei~bors (there are six residential homes on this block 33. and three more on the south side of 4 Street) as well as the city are informed and are in agreement with the generator plan before building permits are issued. We are also concerned about the additional noise that will be generated from air conditioning and heating units which are being planned for the rooftop of the new addition. If the variance Is allowed these units will be very dose to our bedroom. 4. The Monticello Downtown and Riveffront Revitalization Plan states '1"rash storage areas shall be completely enclosed and incorporated as a part of the building." Since TDS is adding on do they need to comply with this guideline? . ?)b . . . 316 Pine Street Monticello, MN 55362-0298 Telephone. 763-295-2974 FAX: 763-295-5974 In TELECOM To: Monticello City Council From: Tom OlIig, TDS TELECOM CC: Mr. & Mrs. Richard Quick Date: January 15, 2003 Re: Mr. Quicks letter of appeal to the TDS Variance Request Below are responses to the attached memo of appeal submitted to the Council by Mr. & Mrs. Quick dated January 15,2003. 1. The addition that TDS is planning onto the east side of it's existing office building is a single story structure. The addition is not structurally built to be able to add a second story. The existing building also is not structurally built to support a second floor. 2. I am sending today a letter (see attached) to the Quick's and Mrs. Harstad to arrange a meeting to discuss the buffer between our property and theirs. We will look at many options such as plants, shrubs, trees and fencing. It is the intention ofTDS to reach a fair agreement with our neighbors as soon as possible and place that agreement in writing. The issue with the existing parking lot and Mrs. Harstad's property and the construction of a fence was discussed with the former owner of the telephone company who did not inform us of those discussions. 3. Regarding the generator noise we are looking at the installation ofa "Hospital Level Muffler" this muffler will reduce the exhaust noise level 35 - 40 dB. We have a quote on the muffler and are working on a quote for installation. With the installation we will be directing the exhaust pipe to the west away from the Quicks residence. Regarding the rooftop air handling units the two large units that will be installed over the existing building are a quite line design and will replace the existing units. We are told that they will be considerably quieter than the present units on the roof. The units that will be installed on the addition area and over the old garage are a reduced noise design but we still may want to install noise barricades around these as well. 4. Regarding the "trash storage" plan I am not aware of this but will visit with the proper City employee to make sure we are in compliance before our construction is completed. oE . . ~ . bRJ\f\ MINUTES REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday - January 7,2003 7:00 P.M. Members: Council Liaison: Staff: Dick Frie, Robbie Smith, Richard Carlson, Rod Dragsten and Lloyd Hilgart To be appointed at the January 13,2003 City Council Meeting J elT O'N eill, Steve Grittman and Fred Patch 1. Call to order. Chair Frie called the meeting to order at 7:00 p.m. and declared a quorum. 2. Approval of the minutes of the reeular Planning Commission mcetine held December 3. 2002. A MOTION WAS MADE BY ROD DRAGSTEN TO APPROVE 'IlIE MINlJrES OF THE REOUL,AR PLANNING COMMISSION MEETING HELD DECEMBER 3, 2002. ROBBIE SMITH SECONDED TIlE MOTION. MOTION CARRIED UNANIMOUSI ,Yo 3. Considcration of adding items to the aeenda. Chair Frie advised ora letter received Crom Scott Douglas, Fire ChieC inviting them to attend a meeting to discuss issues with new developments in the City. Rod Dragsten asked for clarification regarding conunercial building facades in ceD. 'fhis was placed as agenda item 13. Chair Frie asked to discuss the Autumn Ridge development concerning standards previously approved by the Planning Commission. This was placed as agenda item 14. . Chair [<rie asked to discuss concerns regarding the number of public hearings placed on the agenda, as well as the possihility of rescheduling the February meeting due to conflicts. 'rhis was placed as agenda item 15. . . . 4. Citizens comments. None 5. Public Hearing: Considcration of a request for a variancc to thc buffcr yard width in the CCI) - Ccntral Community District. Auplicant: TDS Tclecom. Steve CJrittlnan provided the report advising of the request by TDS 'rclecom for a variance to the buffer yard widths in order to expand their building and parking lot. IIe advised in regard to landscaping, the plant counts proposed exceed the requirements of the ordinance. Due to the narrow lot, the ordinance standards would make it impossible to develop the parking 101. possibly having the applicant rell10ve existing parking. Therefore. the findings for hardships are met, considering the size of the lot, the existing conditions on the lot, and -1- ~ ~. the purpose of the CCD zoning district. . Chair Frie opened the public hearing. Tom ()Ilig, Manager ofTDS, Monticello, advised that he had met with the residents next to this property on E. 4lh Street, Mr. & Mrs. Quick, regarding proposed shruhbery to be planted and the possihility of installing a fence as well. Ollig advised the Quick's that as they go through the project. with no planting until Spring, they would at that time install plantings agreed upon with the residents. lie added that they would be in favor of putting something into writing if the Quick's desired. Fric asked about requesting that the applicant escrow money for landscaping as they would not be planting until Spring and O'Neill advised that this would happen via a landscape hond. Frie asked Ollig irthe Quick's were comfortable with what was being proposed and he stated that they had been in contact with them, but it is difficult to anticipate what the plantings will look like once installed. . Richard Quick, 113 E. 4lh Street, added that they met with Mr. Ollig on one occasion, at their initiative, and that it wasn't until they received the public hearing notice that they hecame aware of this request. I-Ie stated that the notice was vague and that he came to stalf on several occasions and did not feel he got a clear explanation. He was concerned with the request, although he did understand that this request may be granted. Quick also agreed with Ollig in getting something in writing. He also added that the consensus of the other neighbors was a concern regarding the noise rronl the generator at that site, adding that they did discuss this with Ollig as well. They had hoped that TDS would move the generator away from the residences. They will also at some time sit with the Mayor during an open Corum to discuss the zoning in that neighhorhood. lie does feel that things will work out, but would like to be more inf(Jrllled. Frie asked if they had approached the City or TDS previously regarding the noise concern and Quick stated they had, and that they had been sensitive to their issue. Quick felt that this Inay become more or a concern as the building expands, and Ollig added that at some point they Illay need to install a larger generator but not at this time. Frie added that this should be brought to staff s attention prior to the public hearing so that the concern could be addressed in the staff report. Kim Nelson, 112 E. 3rd Street, agreed with Quick on the noise concern. lie asked about the building addition and Ollig advised it would be one story and only as high as the highest part of the existing building. Nelson added that he is opposed to giving up any buller area and felt that if this happened, the applicant may eventually come back to them for additional property. . Chair Frie then closed the public hearing. It was noted that the new building would he similar in quality and style with the East side more decorative with brick and windows, the South side will mirror the architecture of the original building. Ollig added that due to the continued growth in this area, where the central office is located within the building, it cannot be expanded and therefore the need to relocate employees out of that area of the ') -L,- o ~ . building as it is illlpossiblc liJr them to go anywhere else. Ollig added that this will not create any more noise, no plans to change the generator at this time, but he did advise the Quick's that he would look into relocating the generator or llleasures to muffle the noise. I-Ie also stated that they could null and void their agreement with NSP where currently during peak hours they would shut down and use the generator. He did advise that testing of the generator is during the day and typically for several hours, however when thcy are asked to disconnect due to high peak tillles the generator could run f()r an entire day. Ollig advised that iCthey outgrow this building they would relocate employees as there is not ample parking for additional employees, nor has there been any discussion to expand at that site. The Quick's advised that vehicles arc not a problem. Grittman explained the request for the variance was for a reduction from 20' on either side to R' to the East on 41h Street and a reduction fronl 20' to 4' at the adjacent residential property to the East on ]rd Street. O'Neill advised that he had met with Mr. Quick and gave him a copy of the site plan, and clarified that the purpose of the public hearing notice is to notify neighboring property owners that there has been an application made. The property owner can then contact City Hall for specific details. O'Neill added that tbe DA T had met and made a recommendation to approve as well. . A MOTION WAS MADE HY ROD DRAGSTEN '1"0 RECOMMEND APPROVAL OF A VARIANCE TOri IE BUFFER YARD WIDTH FROM 20 FT. TO g FT. T'O THE EAST ON 4111 STREET, AND FROM 20 FT. TO 4 FT. AT THE ADJACENT RESIDENTIAL PR()Pl':RTY TO TIlE EAST ON 31w STR.EET, BASED ON A FINDING TtlAT A I IARDSHIP EXISTS IN COMPLYING WITI I TYPICAl, STANDARDS, INCLlJDING WIDTI I OF TilE PARCEL, EXISTING DEVELOPMENT, AND PURPOSr~ OF THE ZONING DISTRICT. MOTION TO INCLUDE CONDITION THAT AN AGREEMENT' BI.: SIGNED BETWEEN 'IDS 'rELECOM AND MR & MRS. QUICK, STATING 'fHE 8LJFl.'ER YARD PLANTINGS WILL HE MIFIlJALLY AGREED UPON AND MEET CITY CODE, AND '1'1 IE EXISTING GENERATOR HE EITHER RELOCATED OR BUFFI~RED. LLOYD HILGART SECONDI.:D THE MOTION. There \vas further discussion regarding the generator and it was advised by Tom Ollig that the only tinle it would run at night would be if there was no electricity or if they were contacted by NSP. Ollig again stated that the only other times it is run is during working hours, other than clllergencies. Quick added that they understand that this generator is necessary. TI IFRE BI~ING NO FURTHER DISCUSSION, MOTION CARRIED UNANIMOUSLY. . -3~ oy . . . Council Agenda - 1/27/03 9. Consideration of approvine proposed purchase and lease agreements of the exchanee of library faeility and Marquette Bank llnHlertv. (R W) A. RF:FF:RENCE AND BACKGROUND: As r noted at the last council meeting, our City Attorney had prepared purchased agreements and lease agreements to cover the proposed exchange of the former Marquette Bank Building f()J' the I ihrary property along with the purchase by the City of the separate vacant lot that was located west of the Marquette Bank {~lcility. These agreements had been prepared and suhmitted to Wells Fargo representatives for their review and acceptance. The purchase agreements regarding the exchange had used a price of $250,000 as the value of each propeliy being exchanged. A separate purchase agreement was prepared for the City to acquire the Marquette Bank facility and likewise, a purchase agreernent was created for Wells Fargo to acquire the library property. Generally speaking, the terms and conditions of each were identical. In addition to the two purchase agreements, a third agreement was prepared outlining the details of the City's acquisition of the vacant lot. Although an exact sales price has not been determined yet, it will be establ ished hased on an appraisal that is being completed, the parcel size is 18,645 sq. ft. and is estimated to he valued at somewhere around $75,000 to $100,000. An additional agreement had been prepared by the City Attorney to cover the City retaining use of the lihrary Llcility after the properties are officially exchanged to allow us sufficient time to relocate the library furniture and equipment and to demolish the library per our agreement. The linct! document that has not yet been submitted to Wells Fargo is a separate lease for the City to gain access to the Marquette Bank building prior to the actual closing taking place. This will allow us the opportunity to do some minor remodeling in the hank huilding making it usable f()J' the lihrary, and possihly even moving into the facility before the actual closing could be accomplished. The original letter of intent agreed to by Wells Fargo and the City indicated that we would be exchanging the library and bank buildings on an even up basis with the City agreeing to purchase the vacant lot at an appraised value and to be responsihle f(x demolition of the library facility. The purchase agreements were prepared with this understanding in mind and hoth the library sale agreement and the hank purchase agreement had standard language that indicated that taxes would be pro-rated to the date of closing and that the City would pay all outstanding special assessments that were levied against the library and bank would take care of any outstanding assessments levied against the bank facility. . . . Council Agenda - ] /27/03 ]n conversations with our City Attorney on Wednesday indications were that Wells Fargo had accepted the terms and conditions of the purchase agrcements and signed copies were to be expected soon. On Thursday morning, our City Attorney adviscd me that Wclls Fargo now wanted to make a change to the purchase agreement and require that the City assume all special assessments that had been placed on the Marquette Bank building totaling approximately $30,000. From our records, approxilnately $9,000 relates to Walnut Street ilnprovements that were levied a couple of years ago, the sidewalk, angle parking and other improvcments along with $20,000 plus that was assessed last fall for street lighting, sidewalk and brick pavcrs as part of the Walnut Street project. This requested change was not something that was ever discussed as part of the letter of understanding and it was assumed that exchange of properties would include each party paying its own assessnlent debt. Likewise, the City never actually assessed its own library property for any of the Walnut Street improvements as it was a city facility that would be paid by thc taxpaycrs anyway so assessing was just more work for city staff and county auditor. Had we known that the terms might havc been changed to have each party asslllne the outstanding assessment debt, we could have assessed our library f()r the Walnut Street improvements also. As of Thursday, this is the only item that I am aware of that was still in dispute. Council is asked to provide direction on how the City Attorney should proceed with execution of these purchase agreements and whether the City Council is acceptable to this change of understandiIH.!. bv assuming the estimated $30.000 assessment. Since this is a change to the ....... ,.,......., ....... original letter of understanding, Council approval would be needed flH' acceptance of the purchase agreements. B. ALTERNATIVE ACTIONS: I. Council could authorize execution of the purchase agreements as proposed by Wells Fargo with the City assuming the additio~ cost of the outstanding assesslnents in an atllOunt estimated at $30,000. G.. P" t V ~."--<.....-- ? The Council could agree to execute the purchase agreements as originally prepared by the City Attorney that would require Wells Fargo and the City to provide each property ti'ee of any special assessnlentliens in the exchange. 3. The Council could request that negotiations continue on final ternlS and conditions ofthe exchanges. 2 . . . Council Agenda - 1/27/03 c. STAFF RECOMMENDATION: It is the opinion of city staif that the purchase agreement and lease documents prepared by the City Attorney adequately rellected the conditions outl ined in the letter of understanding the parties had agreed to previously. Since the assumption of any outstanding special assessment had never been discussed during any of the negotiations, it did come as a surprise to city staff that this would be expected of the City as part of the exchange. At the time this item is being prepared for the council agenda, the staff has not had a chance to review fllrther options with the City Attorney nor has had any discussions with the appropriate Wells Fargo representatives to see if there is some negotiation possible. The administrator agrees that the original purchase agreement accurately reflected the original spirit of the exchange, but the Council will need to determine the final conditions of the swap. D. SUPPORTING DOCUMENTS: . Lease agreement Letter of intent of December 9, 2002 Note: Because the purchase agreements are quite lengthy, copies of separate agreements have not been included but are available at City Hall for review. ') ,) . . . L .e.,a >' f!., 8A-G~ "F P"'.f~"+ !)~ Mo 1-1' '" t J L,j,e"I't U#/II EXHIBIT B LEASE THIS LEASE (this "Lease") is made on this _ day of January, 2003 by WELLS FARGO BANK MINNESOTA, N.A. ("Landlord") and CITY OF MONTICELLO, a MiImesota municipal corporation ("Tenant"). 1. Agreement. Landlord leases the Premises (as that term is defined in paragraph 2) to Tenant, and Tenant leases the Premises from Landlord, according to this Lease. 2. Premises. The Premises are the land and the Building located on the land, situated in the City of Monticello, County of Wright, State of Minnesota, and legally described as follows: Lot 10, Block 17, Original Plat, except for the South 32 feet thereof; Lot 9, Block 17, Original Plat, except for the South 10 feet thereof; Lots 1 and 2 and the West half of Lot 3, Block 17, Original Plat, except that part to railroad company, and the South 10 feet of Lot 9, and the South 10 feet of the West half of Lot 8, and the South 32 feet of Lot 10. Also, those portions of Lots 1 and 2 and the West Half of Lot 3, Block 17, Townsite of Monticello aka City of Monticello, Wright County, Minnesota and that portion of vacated Walnut Street lying contiguous to and Westerly of the South 66.0 feet of said Lot 1 and lying Southwest of the following described line: Beginning at a point in the West line of said Lot 1 distant 66.0 feet Northerly of the Southwest comer thereof; thence Easterly parallel with the South line of said Block 17 to the intersection with a line drawn concentric and parallel with and distant 20.0 feet Northerly, as measured radially and at right angles from the centerline of the spur track, as originally located and constructed upon, over and across said Lots; thence Southeasterly along the last described concentric and parallel line to the East line of the West Half of said Lot 3 and there terminating. (hereinafter the "Premises"). The Premises includes the heating system, ventilating and air conditioning system, mechanical system, electrical system, and plumbing system serving the Premises. 3. Term. The term of this Lease shall be ninety (90) days, beginning on , 2003 (the "Commencement Date"), and expiring on 17 q . . . 2003 (the "hritial Term"). Tenant may renew this Lease and extend the hritial Term for an additional ninety (90) days (the "Extended Lease Term") by providing written notice to Landlord, not less than thirty (30) days in advance of the expiration date of the hritial Term. 4. Rent. (a) Base Rent. For the hritial Term, Tenant covenants and agrees to pay to Landlord rent in the amount of$1.00 (the "Base Rent") for the Premises. Base Rent is due by the first day of the hritial Term. Base Rent during the Extended Lease Term shall be paid at the time set forth herein and in the amount of$1.00. (b) Additional Rent. "Additional Rent" shall be defined as all other sums of money which shall become due from and payable by Tenant to Landlord for sums paid by Landlord or advanced by Landlord on behalf of Tenant pursuant to the terms of this Lease, including but not limited to, Taxes (as hereinafter defined). All amounts so paid or advanced by Landlord and all costs and expenses incurred by Landlord in connection with the performance of any obligations from the date of Landlord's payment of such amount or incurring of each such cost or expense until the date of full repayment by Tenant shall be payable on demand and constitute Additional Rent. If Tenant fails to pay when due amounts payable under this Lease or to perform any of its obligations under this Lease within the time permitted for its performance, and without waiving any of its rights under this Lease, Landlord may (but will not be required to) pay such amount or perform such obligation. (c) Obligation for Payment. The obligations of the Tenant to make the payments of Base Rent and Additional Rent and to perform and observe the other agreements on its part contained herein shall be absolute and unconditional and until such time as this Lease expires in accordance with its terms, Tenant (i) agrees to make all payments of Base Rent and Additional Rent 18 q . . . provided for in this Lease without claim of set off, deduction or abatement, (ii) will perform and observe all of its other agreements contained in this Lease, and (iii) except as provided in this Lease, will not terminate this Lease for any cause. Nothing contained herein shall be construed to release the Landlord from the performance of any of the agreements or obligations on its part contained in this Lease; and in the event the Landlord should fail to perform any such agreement on its part, the Tenant may institute such action against the Landlord as the Tenant may deem necessary, so long as no judgment or court order sought or obtained in such action shall interfere with the prompt and full payment of the Base Rent and Additional Rent as contemplated. 5. Taxes. (a) Obligation for Payment. Tenant shall pay as they become due all taxes (collectively the "Taxes"), including, without limitation, real estate and special assessments assessed, levied, certified, confirmed, or imposed during the term of this Lease, whether or not now customary or within the contemplation of Landlord and Tenant. (b) Taxes Pavable in Instalhnents. If, by law, any Taxes or special assessment may at the option of the Tenant be paid in installments (whether or not interest accrues on the unpaid balance of such Taxes) Tenant may exercise the option to pay the Taxes (and any accrued interest on the unpaid balance of such Taxes) in instalhnents and in such event Tenant will pay such instalhnents as they become due during the term of this Lease and before any fine, penalty, further interest or cost may be added to them. (c) Pavrnent of Tax bv Landlord. If Tenant fails to pay the Taxes and Tenant is not contesting said Taxes in accordance with paragraph (d) below, Landlord shall be entitled to, but not obligated to, pay such Taxes. If Landlord pays such Taxes, then Tenant shall pay Landlord as Additional Rent the amount that Landlord paid. 19 q . . . (d) Contesting Taxes. The Tenant may, at its expense and in its own name and on its own behalf, in good faith contest any such Taxes, assessments and other charges, and the event of any such contest may pennit that portion of the Taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom as is permitted by the laws of the State of Minnesota. 6. Utilities. Tenant will pay the appropriate suppliers for all water, gas, electricity, light, heat, telephone, power, and other utilities and communications services used by Tenant on the Premises during the term of this Lease, whether or not such services are billed directly to Tenant. Tenant will also procure, or cause to be procured, without cost to Landlord, any and all necessary permits, licenses, or other authorizations required for the lawful and proper installation and maintenance upon the Premises of wires, pipes, conduits, tubes, and other equipment and appliances for use in supplying any such service to and upon the Premises. 7. Insurance. (a) General Liabilitv. Tenant shall, at its sole expense, obtain and keep in force during the term of this Lease general liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000.00) for injury to or death of anyone person, for injury to or death of any number of persons in one occurrence, and for damage to property, insuring against any and all liability of Landlord and Tenant with respect to the Premises or arising out of the maintenance, use, or occupancy of the Premises. (b) Other Matters. All insurance required in this paragraph and all renewals thereof shall name Landlord (i) as loss payee, (ii) as Landlord, or (iii) as an additional insured and shall be issued by companies authorized to transact business in the State of Minnesota. All insurance policies will be subject to approval by Landlord and any lender as to form and substance, 20 C\ . . . will expressly provide that such policies will not be canceled, modified or altered without thirty (30) days prior written notice to Landlord, and will provide an endorsement that no act or omission of Tenant which would othenvise result in forfeiture or reduction of the insurance will affect or limit the obligation of the insurance company to pay to Landlord the amount of any loss sustained. Upon issuance each insurance policy or a duplicate or certificate of such policy will be delivered to Landlord and any lender whom Landlord designates. Original or copies of original policies (together with copies of the endorsements naming Landlord, and any others specified by Landlord, as additional insureds) and evidence of the payment of all premiums of such policies will be delivered to Landlord as soon as possible after Tenant's occupancy of the Premises begins and from time to time at least thirty (30) days prior to the expiration of the term of each such policy. All public liability and casualty policies maintained by Tenant will be written as primary policies, non- contributing with and not in excess of coverage that Landlord may carry. (c) Waiver of Subrogation. Landlord and Tenant waive all rights to recover against each other or against any occupant of the Premises, or against the public officials, officers, directors, shareholders, partners, joint venturers, employees, agents, customers, invitees, or business visitors of each of theirs or of any occupant of the Premises, for any loss or damage arising from any cause covered by any insurance required to be carried by each of them pursuant to this paragraph or any other insurance actually carried by each of them. 8. Use. Tenant shall use the Premises only for legal purposes. Tenant shall not store any flammable, explosive, toxic, hazardous (sanitation chemicals excepted), or dangerous materials on the Premises. 9. Compliance with Laws. Tenant's Obligations. Tenant will not use or occupy, or permit any portion of the Premises to be used or occupied: 21 ~ . . . (a) in violation of any law, ordinance, order, rule, regulation, certificate of occupancy, or other govennnental requirement; (b) for any disreputable business or purpose; or (c) in any manner or for any business or purpose that creates risks of fire or other hazards, or that would in any way violate, suspend, void, or increase the rate of fire or liability or any other insurance of any kind at any time carried by Landlord upon all or any part of the Premises or its contents. Tenant will comply with all laws, ordinances, orders, rules, regulations, and other govennnental requirements relating to the use, condition, or occupancy of the Premises, and all rules, orders, regulations, and requirements of the board of fire underwriters or insurance service office, or any other similar body, having jurisdiction over the Premises. 10. Assilffi111ent and Sublease. Intentionally left blank. 11. Signs. Tenant may install signs on the Premises in accordance with all federal, state and local statutes, laws, ordinances and codes. 12. Tenant's Demolition of Premises. During the Lease Term, Tenant shall demolish the Premises. Tenant may remove from the Premises any trade fixtures, equipment and movable furniture placed in the Premises by Tenant, whether or not such trade fixtures or equipment are fastened to the Building. The wrecking of any building or structure shall be complete and include the wrecking and removal of all foundations, footings, and floor slabs. All piping, heating plants, fuel storage tanks, appliances and other such debris shall be removed from the premises. The excavation remaining after the removal of the Premises shall be filled to the level of the surrounding grade with clean granular-type fill material. Said fill shall be compacted at an optimum moisture content to obtain proper compaction. Tenant shall remove all steps, stoops, private sidewalks, accessory buildings, and hard surface driveways unless such removal is 22 ~ . . . specifically exempted by Landlord. Further, Tenant shall provide a topping of soil of a sufficient depth and quality so as to enable ground cover to grow. 13. Condemnation. Intentionally deleted. 14. Subordination. (a) General. This Lease and Tenant's rights under this Lease are subject and subordinate to any ground lease or underlying lease, first mortgage, first deed of trust or other first lien encumbrance or indenture, together with any renewals, extensions, modifications, consolidations, and replacements of them, which now or at any subsequent time affect the Premises, any interest of Landlord in the Premises, or Landlord's interest in this Lease and the estate created by this Lease (except to the extent that any such instrument expressly provides that this Lease is superior to it). This provision will be self-operative and no further instrument of subordination will be required in order to effect it. Nevertheless, Tenant will execute, acknowledge and deliver to Landlord or any mortgagee such reasonable document as is necessary to confirm or effect any such subordination. If Tenant fails or refuses to execute, acknowledge, and deliver any such document within twenty (20) days after written demand, Landlord, its successors and assigns, will be entitled to execute, acknowledge, and deliver any such document on behalf of Tenant as Tenant's attorney-in-fact. Tenant constitutes and irrevocably appoints Landlord, its successors and assigns, as Tenant's attorney-in-fact to execute, acknowledge, and deliver on behalf of Tenant a document confirming such subordination (but not other matters). (b) Attornment. If any holder of any mortgage or other similar instrument described in paragraph 14(a) above succeeds to Landlord's interest in the Premises, Tenant will pay to it all rents subsequently payable under this Lease. Tenant will, upon request of anyone so 23 q . . . succeeding to the interest of Landlord, automatically become the Tenant of, and attorn to, such successor in interest without change in this Lease. Upon request by such successor in interest and without cost to Landlord or such successor in interest, Tenant will execute, acknowledge, and deliver an instnunent or instnunents confinning the attornment. The instrument of attornment will also provide that such successor in interest will not disturb Tenant in its use of the Premises in accordance with this Lease ("Non Disturbance Agreement"). If Tenant fails or refuses to execute, acknowledge, and deliver any such instnunent within twenty (20) days after written demand, such successor in interest will be entitled, as Tenant's attorney-in-fact, to execute, acknowledge and deliver on behalf of Tenant any document described in this paragraph. 15. Indemnification. Waiver and Release. (a) Indemnification. Tenant will indemnify and hold hannless Landlord from any and all demands, claims, causes of action, fines, penalties, damages (including consequential damages), losses, liabilities, judgments, and expenses (including, without limitation, attorneys' fees and court costs) incurred in connection with or arising from: (1) the use or occupancy of the Premises by Tenant or any person claiming under Tenant; (2) any activity, work, or thing, done or pennitted or suffered by Tenant in or about the Premises; (3) any acts, omissions, or negligence of Tenant or any person claiming under Tenant or the contractors, agents, employees, invitees, or visitors of Tenant or of any such person; 24 C\ . . . (4) any breach, violation, or nonperformance by Tenant or any person claiming under Tenant or the employees, agents, contractors, invitees, or visitors of Tenant, or of any such person of any term, covenant, or provision of this Lease or any law, ordinance, or governmental requirement of any kind; or (5) any injury or damage to the person, property, or business of Tenant, its employees, agents, contractors, invitees, visitors or any other person entering upon the Premises under the express or implied invitation of Ten ant. If any action or proceeding is brought against Landlord by reason of any such claim, Tenant, upon notice from Landlord, will defend the claim at Tenant's expense with counsel reasonably satisfactory to Landlord. (b) Waiver and Release. Tenant agrees that Landlord will not be liable for any loss, injury, death or damage (including consequential damages) the cause of which is beyond Landlord's control. Notwithstanding the foregoing, Landlord does not disclaim liability for, and Tenant's indemnification shall not be deemed to comprehend, liability for loss, injury or death, or damage arising from matters within the control of Landlord. 16. Covenant of Quiet Enioyment. So long as Tenant pays the rent and performs all of its obligations in this Lease, Tenant's possession of the Premises will not be disturbed by Landlord, or anyone claiming by, through or under Landlord. 17. Limitation on Tenant's Recourse. Tenant's sole recourse against Landlord, and any successor to the interest of Landlord in the Premises, is to the interest of Landlord, and any such successor, in the Premises. Tenant will not have any right to satisfY any judgment that it may have against Landlord, or any such successor, from any other assets of Landlord, or any such successor. The provisions of this paragraph are not intended to limit Tenant's right to seek injunctive relief or 25 C\ . . . specific performance, or Tenant's right to claim the proceeds of insurance (if any) specifically maintained by Landlord for Tenant's benefit. 18. Events of Default. The following occurrences are "Events of Default": (a) Tenant fails to pay rent whether Base Rent or Additional Rent within five (5) days after notice or demand from Landlord; (b) Tenant vacates or abandons the Premises without finishing the demolition to Landlord's satisfaction; or ( c) Tenant breaches any of the other agreements, terms, covenants, or conditions which this Lease requires Tenant to perform, and such breach continues for a period of thirty (30) days after notice by Landlord to Tenant or if such breach cannot reasonably be cured within thirty (30) days, then, if Tenant commences to cure within said thirty (30) days and thereafter diligently prosecutes the cure, Tenant shall have a reasonable time period to effect its cure. 19. Remedies. If anyone or more Events of Default occurs, then Landlord may give Tenant written notice of its intention either to terminate Tenant's right to possession without terminating this Lease or to terminate this Lease in either event on the date of such notice or on any later date specified in such notice, and thereupon, Tenant's right to possession of the Premises will cease on the date specified in the notice and if Landlord elects, this Lease will be terminated as if the date fixed in such notice were the end of the term of this Lease. An Event of Default does not relive the Tenant of its obligations to perform the Demolition of the Premises as set forth in paragraph 12 herein. 26 C\ . 20. Miscellaneous. (a) Holding Over. If Tenant remains in possession of the Premises after the end of this Lease, Tenant will occupy the Premises as a tenant from month-to-month, subject to all conditions, provisions, and obligations of this Lease in effect on the last day of the Term. (b) Estoppel Certificates. Within no more than twenty (20) days after written request by Landlord or Tenant, Landlord or Tenant whichever is applicable will execute, acknowledge and deliver to the party requesting the same a certificate stating: (1) that this Lease is unmodified and in full force and effect, or, if the Lease is modified, the way in which it is modified accompanied by a copy of the modification agreement; (2) the date to which rental and other sums payable under this Lease . have been paid; (3) that no notice has been received by Landlord or Tenant (whichever is applicable) of any default which has not been cured, or, if such a default has not been cured, what either Landlord or Tenant intends to do in order to effect the cure, and when it will do so; (4) that Tenant has accepted and occupied the Premises; (5) that Tenant has no claim or offset against Landlord (as to Tenant only); and (6) such other matters as may be reasonably requested by Landlord or Tenant. Any such certificate may be relied upon by any prospective purchaser of the Premises and any prospective mortgagee or beneficiary under any deed of trust or mortgage encumbering the . Premises. If Landlord or Tenant submits a completed certificate to the other, and if Landlord or 27 ~ . . . Tenant (whichever is applicable) fails to object to its contents within twenty (20) days after its receipt of the completed certificate, the matters stated in the certificate will conclusively be deemed to be correct. (c) No Waiver. No waiver of any condition or agreement in this Lease by either Landlord or Tenant will imply or constitute a further waiver by such party of the same or any other condition or agreement. No act or thing done by Landlord or Landlord's agents during the term of this Lease will be deemed an acceptance of a surrender of the Premises, and no agreement to accept such surrender will be valid unless in writing signed by Landlord. No payment by Tenant, or receipt from Landlord, of a lesser amount than the rent or other charges stipulated in this Lease will be deemed to be anything other than a payment on account of the earliest stipulated rent. No endorsement or statement on any check, or any letter accompanying any check or payment as rent will be deemed an accord and satisfaction. Landlord will accept such check for payment without prejudice to Landlord's right to recover the balance of such rent or to pursue any other remedy available to Landlord. (d) Authoritv of Tenant. Each of the persons executing this Lease on behalf of Tenant warrants to Landlord that Tenant has full right and authority to enter into this Lease, and that each and every person signing on behalf of Tenant is authorized to do so. Upon Landlord's request, Tenant will provide evidence satisfactory to Landlord confinning these representations. (e) Notices. Any notice, request, demand, consent, approval, or other communication required or pennitted under this Lease will be in writing and will be deemed to have been given: (1) when personally delivered; (2) when served pursuant to the Minnesota Rules of Civil Procedure; or 28 C\ . (3) on the second day after it is deposited in any depository regularly maintained by the United States postal service, postage prepaid, certified or registered mail, return receipt requested, addressed to: LANDLORD: Wells Fargo Properties, Inc. Attn: Harold P. Richey Wells Fargo Center Sixth & Marquette, 19th floor MAC #N9305-19B Minneapolis, MN 55479 Email: Harold.P.Richey@WellsFargo.com Telephone: 612-667-9104 Fax: 612-316-1212 TENANT: City of Monticello Attn: Rick W olfsteller, City Administrator 505 Walnut Street, Suite 1 Monticello, MN 55362-8831 Telephone: 763-295-2711 Fax: 763-295-4404 Either Landlord or Tenant may change its address or addresses for purposes of this paragraph by . giving ten (10) days prior notice according to this paragraph. (t) Binding Effect. This Lease will inure to the benefit of, and will be binding upon, Landlord's successors and assigns. (g) Severability. If any term or provision of this Lease, or the application thereof to any person or circumstance, shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. (h) Entire Agreement. This Lease sets forth all the covenants, pronnses, agreements, conditions and understandings between Landlord and Tenant concerning the Premises . and there are no covenants, promises, agreements, conditions or understandings, either oral or 29 C\ . . . written, between them other than as herein set forth. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant unless reduced to writing and signed by them. (i) Governing Law. This Lease shall be governed exclusively by the provisions hereof, and by the laws of the State of Minnesota as the same may from time to time exist. Landlord and Tenant have executed this Lease as of the date set forth herein. LANDLORD: WELLS FARGO BANK MINNESOTA, N.A. By Its TENANT: CITY OF MONTICELLO By: Bruce Thielen, Mayor By: Rick Wolfsteller, City Administrator 30 C\. Dc:ccmpe1:-J, 2002 MONTICELW J\-fr~1 Lllldguist P~dcrJt Wells Fargo B,.:J;1-k 407 Pine Street Monticello, Jv[}\j" 55362 M ; ^",,.... iF-.s Cl :r- A -,,-,./1 ,." '-. --. Re: Monticello Library and Marquette Bank Property Exchange Letter of Intent Dear Ivlr. Lindquist: In accordance with our recent discussions concerning an exchange of properties between the City of Monticello and Wells Fargo, this letter is intended to outline om general understill1ding of the term;; and conditions relatiJ,ig'to an exchange oftl?c Monticello Library l:milding and: r,elated p[Ql?~rty for the Marquette B~nk bl.1ilding facility and property. 'This, letter of understanding is om Jetter of intent to: complete the prop'erty exchange 'substantlally ~pon the following terms: ' . Property Exchan2es The City will exchange the lihrary building for the Marquette Bank buildinf;. The property included in the library site would exclude the triangular area located south of Wells Fargo's proposed drive tluough entrance from Walnut Street, that area also known as future public parking area for Towne Centre development. Property to be included at the Marquette Bank site would include aU d:~veloped parking areas as they now exist. Exact legal descriptions to be determined and negotiated as part of final purchase agreement dOCllment. PaJrking lot development in Wells Fare:o/Librarv site block City of Monticello will assume all responsibility for development and construction of public parking faci::ity in partnership with Towne Centre development on propertyexcluded from exchange. ,The approximate area would contain 44 parking spaces as shown on Wells Fargo site development plat dated July 30, :~002. Transfer o{p~-opcrtvad iaccllt to nresen't dri~'e throul!h Jacilitv.. ' City, agrees to ;include,as paIl .of this , ,'" ,.' ,. ' ' I \ . exchange ,that parcel'9fproperty adjacent to the Wells Fargo drive,t)ll",C'l~gl! fapility and,Burl~ngton Northern R~ilro~d right-of-;w8Y , ' ; ,,', ','", , ' ., :', ' ' , ;, ' 1 . Marquette Bank vacant lot purchase. The City of Monticello agrees to purchase the approximate 18,000 sq. ft plus vacant parcel adjacent to tbe Marquette Bank building at a fair market value to be determined by both parties. Monticello City Hall, 505 Walnut Street, Suite 1, Monticello, MN 55362-8&31 . (763);~95-2711 . Fax; (763) 295-4404- Office of Public Works, 909 Golf Course Rd., Monticello, MN 55362. (763) 295-:\170. Fax: (763) 271.3272 '.1; ;, ' q _.uu r~A O~~ 001 u~L~ 1"'V..."11.L..1""'..... A ..1...........1. .........L..... ~""--.... . Mr. Tom Lindquist December 3,2002 Page Two Library Demolition. As part of the property exchange, the City of Monticello agrees to demoli 5h and remove the existing library structure from the property at city expei1se. Time frame for demolition removal to be determined by prior of execution of purchase agreement. BuRldim! Requirements. As part ofthe property exchange, neither party is required to construct any minimum improvements 'on the properties cxch,mged, including elimination of any requirement for Wells Fargo or other developer to construct a retail or office complex along Walnut Street on the former library site. Furniture and Fixtures. The City proposes that the exchm1ge include all interior furnishings, furniture, office equipment and office partition systems from the Marquette Bank building, except for that equipment specifically used for banking operations. This letter of understanding is a summary of the general conditions the City of Monticello would be agreeable to for a property exchange to occur. Establishment of a clm:ing date and defining procec.ures for relocation of library property, demolition and removal time lines would still need to be estabHshed. Upon acceptance of the general terms and conditions of the property exchange by Wells Fargo, the City will . prepare a purchase agreement outlining the details for your approvaL . This letter of intent is my understanding of the conditions and terms that may be acceptable to both parties in completing this property exchange. This letter is not intended to constitute a legally binding contract, but it is the City's intent to complete negotiations with Wells Fargo as soon as possible if the general terms m-e acceptable to you. Since an exchange of this type would require the library to relocate to rIle Marquette Bank facility prior to demolition occurring, time is of the essence. Please indicate your acceptance of these general term:, and conditions by having the appropriate individual execute a copy of tIllS tetter and retunllng the same to me. Upon receipt of the executed copy, the City will prepare a draft of a pu rchase and sale agreement VI,ith accordance with the above terl11S, Yours truly, CZ ;;).TICELLO Rick WOlfstell~ City Administrator . RWdg cc: Fred Patch, Building Official Mayor m1d Council Agreed ai1d accepted this t ...f/~ day of ,1Je--i?e.(J ~ f2~-IL,.n its l D 6 C- .,2002 by .~__-~- ~~ q '" . Additional Information on Library/Bank Building Exchange - Vacant Land Appraisal (RW) As part of the library/bank building exchange, the City will be buying the vacant property east of the bank building at a price to be determined by an appraisal. I received a copy of the appraisal today that placed the estimated value at $5/sq. ft. or $93,500 for the 18,645 sq. ft. parcel. Assuming a decision is made on finalizing a purchase agreement offer with Wells Fargo, the Council may want to also agree with the appraised value of $93,500 and make that offer part of the purchase agreement approval. A full copy of the appraisal is available for review at City Hall. . . Frtm: Fax To: Rick Wolf.teller . . . Dale: 1/26/03 Time: 12:44:40 PM k'age 2 at 44 LIMITED RESTRICTED USE MARKET VALUE APPRAISAL OF ALMOST 2 CITY lOTS AT THE SE CORNER OF lOCUST STREET & W 6TH STREET ABUTTING AND TO THE WEST OF WEllS FARGO BANK DOWNTOWN MONTICEllO, MINNESOTA FOR MR. FRED PATCH THE CITY OF MONTICEllO BY JULIE JEFFREY -SCHWARTZ LAKE STATE REALTY SERVICES, INC. DECEMBER 2002 Frorn: Fax To: Rick Wolfstdler Date: 1/26/03 Time: 12:49:02 PM Page 6 of 44 . January 27,2003 Mr. Fred Patch The City of Monticello 505 Walnut Street #1 Monticello, MN 55362 RE: Limited Restricted Use Market Value Appraisal of: Almost 2 City Lots at the SE Corner of Locust Street & W 6th Street Abutting and to the West of Wells Fargo Bank Downtown Monticello, Minnesota Dear Mr. Patch: . Pursuant to your request, I have personally inspected and prepared a limited restricted use market value appraisal for the above referenced property. The appraisal estimates the current market value of the fee simple interest in the described real estate, subject to the certification, definitions, and the assumptions and limiting conditions as stated within this appraisal. After careful consideration of the all pertinent factors influencing market value, it is my opinion that the subject property has a market value in fee simple estate as of December 12, 2002 (the date of inspection) of: NINETY-THREE THOUSAND FIVE-HUNDRED DOLLARS. . . $93,500 The attached report describes the methods and reasoning used in the analyses, as well as the data gathered during the investigation of the property and marketplace. This appraisal report has been completed in conformance with the current version of the Uniform Standards of Professional Appraisal Practice (USPAP) of the American Appraisal Institute; the aee appraisal guidelines dated August 9, 1990; requirements as set forth in 12 CFR Part 323, and "Appraisals" as published in the Federal Register, and as amended from time to time. Please feel free to contact me if you have any questions regarding this report. Thank you for the opportunity to assist you in this valuation matter. Respectfully Submitted, Julie Jeffrey-Schwartz, Certified General Appraiser . Minn. #: 4002423; Wise. #482; Mich. #12-01-005363; Ohio #423328 4 ....~