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City Council Minutes 05-08-1989MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL Monday, May 8, 1989 - 7:30 p.m. Members Present: Ken Maus, Fran Fair, Shirley Anderson, Warren Smith, Dan Blonigen. Members Absent: None. 2. Approval of minutes. Motion was made by Fran Fair, seconded by Warren Smith, and unanimously carried, to approve the minutes of the regular meeting held April 24, 1989. 3. Citizens comments/petitions, requests and complaints. None forthcoming. 4. Public hearing on the re -assessment of the 81-1 Improvement Project.: Edgar roject- Edgar Klucas and Dan Frie. City Administrator Wolfsteller outlined potential methods that could be employed to establish an assessment amount for this project that was completed in 1981. Wolfsteller reviewed three options which included 1) assessing the cost based on the original project cost, 2) assessing cost based on the present cost to complete the same improvement, and 3) assess an amount equal to the original cost plus the 13 percent interest rate that would have accumulated for the 7-1/2 years since the project was completed. In his summary, Wolfsteller reminded Council that the assessment amount must not exceed the benefit created by the improvements to the property. After discussion, it was the general consensus of Council to hire an appraiser to evaluate the degree of benefit afforded to the subject properties as a result of the installation of public utilities. Jim Metcalf, representing Edgar Klucas, submitted a letter to the City which outlined formal written objection to the amount of the proposed assessment. He went on to note that the City had conducted an assessment hearing when the project was completed. His client would have had at that time the opportunity to respond to the proposal to charge interest on unpaid assessment amounts. It was Metcalf's assertion that it would not be proper for the City to charge interest on unpaid cost accumulating since 1981, as the property owner in 1981 was not given the opportunity to pay the assessment at the time that the project was completed, nor was he given the opportunity to object to the assessment. After discussion, motion was made by Fran Fair to order an appraisal of properties benefited by Project 81-1 and continue the public hearing until the City Council meeting scheduled for June 12, 1989. Motion was seconded by Warren Smith and carried unanimously. 1 Council Minutes - 5/8/89 5. Consider a rezoning request to rezone residential unplatted property from R-3 (medium density residential) to PZM (performance zone mixed). Applicant, J & K Properties. At this point in the meeting, Ken Maus relinquished his position as Mayor and passed the gavel to Fran Fair. Maus then abstained from commenting on this particular issue as the Mayor/Councilmember. Assistant Administrator O'Neill reviewed the proposal to rezone an area approximately equal in size to one block located directly east of the Maus Foods store from R-3 to PZM zoning. O'Neill indicated to Council that the proposal to rezone this property from R-3 to PZM provides the landowner with flexibility in developing this area as either residential usage or commercial retail usage. He went on to note that the purpose of the PZM or performance zoning district is to allow for development flexibility and special design control within sensitive areas of the city due to environmental or physical limitations. The performance zoning district also attempts to create a reasonable balance between the interest of the property owner in freely developing his property and at the same time protect the interest of surrounding properties. Fran Fair asked if this rezoning request would create more land available for multi -family housing developments. Gary Anderson responded by saying that the present zoning already allows multi -family development to occur, whereas, the proposed PZM zone would provide the opportunity for retail establishment as well as multi -family development. Therefore, this rezoning actually decreases the possibility of development of multi -family housing in this area. After discussion, motion was made by Dan Blonigen to approve the proposed rezoning of subject parcel from R-3 to PZM zoning, with the motion to approve being based on the finding that the proposal is 1) consistent with the Comprehensive Plan, 2) compatible with geographic area and character of adjoining land, 3) the rezoning will not tend to depreciate the area in which it is proposed, and 4) the need for the proposed rezoning has been sufficiently demonstrated. Motion was seconded by Shirley Anderson and carried unanimously. SEE AMENDMENT No. 175E 6. Consideration of a preliminary plat request for a proposed new residential subdivision plat. Applicant, West Prairie Partners. Assistant Administrator O'Neill reviewed the proposed preliminary plat and went on to inform Council that the Planning Commission had recommended approval of this plat based on the understanding that the plat met all requirements of the City Zoning and Subdivision Ordinance. A problem was discovered with this plat when Council was informed that one of the lot's front footage at the setback line is insufficient relative to the City Ordinance. It was noted that Lot 5 possesses a lot width of 32 feet at the building setback line, which is less than the 56 -foot minimum required by ordinance. Staff apologized for the late notice of this particular problem. At this point, Council reviewed 2 Council Minutes - 5/8/89 the inconsistency between the plat and the Zoning Ordinance and determined that in this case a variance would be appropriate, as the City has allowed shorter property width in circumstances where there is a limited development area to work with. Requiring the 56 -foot property width at setback line would reduce the number of lots that could be created from seven to six. It was the view of the Council that the impact of requiring adherence to this section of the ordinance in this case would represent an unreasonable restriction on the use of the land and that a variance would be appropriate in this case. After discussion, motion was made by Dan Blonigen, seconded by Shirley Anderson, to approve the preliminary plat of Prairie West. Motion passed unanimously. In another matter relating to this development, the developers requested that the City allow the City Engineer to prepare plans and specifications for this development with payment being made directly to the City Engineer from the developers. This practice would allow the developers to save the cost of two engineering firms preparing and reviewing plans and specifications for the necessary public improvements associated with Prairie West. After discussion, motion was made by Dan Blonigen, seconded by Warren Smith, to grant permission to OSM to work for the developers of Prairie West. Motion passed unanimously. 7. Consideration of approving declaration of protective covenants and restrictions of the Evergreens. Assistant Administrator O'Neill reviewed those items within the protective covenants of the Evergreens that are not otherwise covered by City Ordinances. Those restrictions include 1) the covenants limit the number of cars on each property to four, 2) all lots abutting the mobile home park shall have attached garages, 3) no earth homes shall be permitted, 4) all houses shall have attached or detached garages shingled and sided the same as the house, 5) exterior colors of homes shall be limited to pastels and earth tones, 6) lawn establishment required within one year of occupancy, and 7) no motor vehicles shall be kept or stored upon the premises except those that are being driven and currently licensed or registered. A discussion then ensued regarding the enforceability of the protective covenants. It was Dan Blonigen's concern that the City will be saddled with enforcing these covenants. Blonigen noted that the covenants should be consistent with City Ordinances and that the rules that apply to new developments should apply to the entire city. Brad Larson, representing Kent Kjellberg, informed Council that the presence of the protective covenants can act as a marketing tool and can provide the homeowner with assurances that, if necessary, he can take civil action against individuals within the development that are not in C Council Minutes - 5/8/89 compliance with the covenants. He went on to note that the City can more effectively assure compliance with the restrictions listed if such restrictions are incorporated into the City Ordinances. Fran Fair indicated support for establishing ordinance amendments that would address some of the problems that the restrictive covenants attempt to address. However, in lieu of those ordinances at this time, it was her view that it is appropriate to approve the suggested restrictive covenants. After discussion, motion by Fran Fair, seconded by Shirley Anderson, to approve the declaration of protective covenants and restrictions of the Evergreens. Motion carried unanimously. Councilmember Anderson requested that staff make sure that the covenants are properly recorded prior to sale of any of the lots associated with phase I of the Evergreens. It was noted by staff that it is the responsibility of the developer to record the covenants and that staff will certainly make sure that this is done. In addition, the City has in its possession an executed copy of the covenants; and if the developer does not record the document, the City can act to do so. 8. Consideration of adopting Evergreens Development Agreement. Assistant Administrator O'Neill briefly reviewed the developer agreement and informed Council that Kent Kjellberg is selling the Evergreens development to Wally Anderson of ARADCO. O'Neill went on to review the background of the developer and informed Council that Anderson has completed several successful developments in the metropolitan area. John Badalich also noted that Wally Anderson is a reputable developer that his company has worked with on numerous occasions. Staff recommended adoption of the development agreement, as the agreement provides the City with protection against some of the problems recently experienced with other developments completed by private developers. Fran Fair reviewed the resume of Wally Anderson and noted her support of the development agreement, especially in light of the positive track record of the buyer of the development. After discussion, motion was made by Warren Smith, seconded by Shirley Anderson, to adopt the Evergreens Development Agreement. Motion carried unanimously. 9. Consideration of final plat approval of phase I of the Evergreens subdivision. Applicant, Kent Kjellberg. Assistant Administrator O'Neill informed Council that the final plat is ready for approval subject to successful completion of the environmental assessment worksheet review process and subject to minor modifications of the easement lines pending completion of plans and specifications for the public improvements necessary with phase I. 4 10. 11. Council Minutes - 5/8/89 After discussion, motion was made by Shirley Anderson, seconded by Fran Fair, to approve the final plat of phase I of the Evergreens subdivision subject to successful completion of environmental assessment worksheet review process and subject to necessary modifications of easement lines associated with preparation of final plans for phase I public improvements. Motion carried unanimously. Consideration of rezoning agricultural land to residential and commercial usage - Evergreens development. Assistant Administrator reported that as part of the final approval process of this subdivision, the land subdivided must be rezoned from the present agricultural classification to a combination of residential and/or business zoning classifications. Planning Commission recommended that the entire residential area encompassed by the Evergreens be rezoned from agricultural status to R-1. He went on to inform Council that Planning Commission had also called for rezoning Outlots A and B from agricultural to B-3 zoning. It was O'Neill's concern that the decision to rezone Outlots A and B from agricultural to business highway rezoning might not be appropriate given language contained in the Comprehensive Plan. O'Neill then suggested that Council table this matter, as this particular rezoning request is not critical to the successful development of the Evergreens subdivision. After discussion, motion was made by Fran Fair, seconded by Shirley Anderson, to approve the rezoning of the area encompassed by phases I-V of the Evergreens subdivision. Motion carried unanimously. Motion made by Fran Fair, seconded by Shirley Anderson, to table rezoning of Outlots A and B pending further review by the Planning Commission. Motion carried unanimously. SEE ORDINANCE AMENDMENT NO. 175A. Consideration of ordering publication of notice of environmental assessment worksheet comment period. Motion made by Warren Smith, seconded by Dan Blonigen, to order publication of notice of environmental assessment worksheet comment period for the Evergreens development and declare Monticello as the responsible governmental unit. Motion carried unanimously. 12. Consideration of adoptin Agreement and considerat Mobile Home Park. Kjellberg Mobile Home Park East Development n of approving expansion of the Kjellberg East O'Neill informed Council that the Kjellberg East Mobile Home Park Development Agreement and the Evergreens Development Agreement are connected and that it is appropriate at this time to adopt the mobile home park development agreement, as Council has adopted the Evergreens Development Agreement. 9 Council Minutes - 5/8/89 John Simola noted a problem in Article Three of the Mobile Home Park Developer Agreement which states that the east park sewer access charge and water access charge shall be $225 per mobile home pad. Simola noted that the access charge should include only the charge for sewer service and that the proposal to include water in this access charge is not appropriate. Brad Larson indicated that he would amend the language of the developer agreement to include a requirement that Kjellberg will pay the then prevailing fee for access to the city water system at such time that the developer desires access to city water. O'Neill also informed Council that Mr. Kjellberg requests permission to expand the mobile home park, as plans are in place for extension of the lateral connection from the southerly most point of phase I to the mobile home park. O'Neill noted that it would be premature to allow expansion of the park based on plans only and that expansion would only be appropriate when the actual connection to the city system is in place. Furthermore, the City has received no approvals from the PCA stating that the existing treatment system is adequate to handle additional sewage. Therefore, staff recommends that the expansion of the mobile home park not be allowed until the proper approvals are gained from the Pollution Control Agency or until such time that the park is actually hooked into city services. Motion made by Shirley Anderson, seconded by Dan Blonigen, to adopt Kjellberg's Mobile Home Park East Developer Agreement and deny plans to expand Mobile Home Park East. Council to consider allowing expansion when appropriate approvals are in place. Motion carried unanimously. 13. Review and discuss plan of action designed to address concerns of Meadow Oak residents. Assistant Administrator O'Neill informed Council that City staff, along with Ken Maus, met with Dickman Knutson and his son to discuss problems highlighted by Meadow Oak residents. O'Neill outlined the general plan of action developed at the meeting in response to the problems submitted by Meadow Oak area residents. Council was informed that Mr. Knutson has agreed to record the covenants against the 35 or so remaining lots in the development area and that the covenants may be slightly modified to incorporate restrictions that the City Council requested but were never incorporated into the latest unrecorded version of the covenants. Finally, he informed Council that a meeting has been planned for Wednesday, May 17, at 6:30 p.m., at which time area residents of Meadow Oaks will be invited to discuss the covenants and other public nuisance related problems with City staff and Dickman Knutson. Fran Fair suggested that rewriting the covenants may be the wrong approach to resolving the problems in the area and that the City might be better off establishing ordinances in lieu of protective covenants. Rhonda Thielen and her husband, Bruce, asked who is going to pay to record the covenants that should have been recorded in the first place. Mayor Maus indicated that this is an issue that could be addressed at the meeting with Dickman Knutson scheduled for the 17th of May. M Council Minutes - 5/8/89 Rhonda Thielen indicated to Council that she does not have a problem with the small recreation vehicles and boats parked in front lawns. However, she feels strongly that an ordinance amendment is necessary that would limit the size of recreation vehicles being parked in driveways. It was her view that the RV's represent a safety hazard for individuals attempting to back out of driveways adjacent to driveways that contain large recreation vehicles that obstruct site lines. It was the general consensus of Council that Council will review potential ordinance amendments after the meeting of Friday, May 19, with Meadow Oak area residents. A special workshop was established for May 19 at 1:00 p.m. at which time Council will discuss potential development of public nuisance related ordinances. 14. Consideration of approval of contract with Polka Dot Recycling for curb -side recycling in the city of Monticello. Motion by Shirley Anderson, seconded by Warren Smith, to approve the contract for Polka Dot Recycling for the initial period of 36 months. Motion carried unanimously. 15. Consideration of change order #2 for Project 88-01C, Pumphouse #3. John Simola informed Council that on July 25, 1988, upon reviewing the plans for pumphouse #3, Minnesota Department of Health requested specific changes in the design of the building and equipment. On September 14, 1988, OSM drafted a letter to Richmar Construction, Inc., requesting proposals for a change order, including the work outlined by the Minnesota Department of Health. Richmar Construction responded on September 30, 1988, with a proposal for five changes and a more economical type of fan for the chlorine room. The net effect of all the changes is a credit of $111 for these items. After discussion, a motion was made by Fran Fair, seconded by Shirley Anderson, to approve change order #2 for a credit of $111. Motion carried unanimously. 16. Consideration of Council support requesting the Department of Revenue hold a public hearing on a proposed rule change concerning valuation and assessments of electric utility companies. City Administrator Wolfsteller informed Council that he is aware of a Department of Revenue proposed rule adoption that will affect the valuation and assessment of electric, gas distribution, and pipeline companies, including the NSP plant in Monticello. He noted that although none of the governing bodies such as school districts, local government units, or county governments, were notified by the Department of Revenue of this proposed change in their rules, these modifications proposed by the Department of Revenue could affect the valuation of the power plants and resulting tax revenues from them. The proposed rules would automatically go into effect without a public hearing unless at least 25 people submit a written request for a public hearing. Wolfsteller 7 17. 18. 19. Council Minutes - 5/8/89 recommended that Council request the Department of Revenue hold a public hearing; and once it's determined what effect this rule change would have, the Council may want to consider even appropriating some funds for supporting a lobbyist to fight any change that would materially affect Monticello's tax base. After discussion, motion was made by Warren Smith, seconded by Fran Fair, to request that the Department of Revenue hold a public hearing on any rule change that would affect the valuation and assessment of NSP and authorize the Mayor and the City Administrator to request the same in writing. Motion carried unanimously. Consideration of one -day gambling license application - Monticello Lions Club - July 2 celebration. Motion by Dan Blonigen, seconded by Shirley Anderson, to grant a one -day gambling license application to Monticello Lions Club for the July 2 celebration. Motion carried unanimously. Motion by Shirley Anderson, seconded by Warren Smith, to allow the Lions Club exclusive use of Ellison Park on July 2, 1989. Motion carried unanimously. Consideration of authorizing purchase of replacement motive water pump for equalization basin. Public Works Director Simola informed Council that the motive water pump in the EQ basin mixes the waste water in the tank to get a homogenous mass in the case of pH and high BOD loads, as well as assisting in odor control in some aspects. Normally, the EQ basin is not used 100 percent of the time, and the pump should last a long time. When the City operated the plant, however, our operators used the EQ basin as an activated sludge aeration tank, and the pump was used extensively. This may have caused is premature failure. Simola recommended that Council authorize replacement of the motive water pump at a cost of $2,534. Motion was made by Fran Fair, seconded by Dan Blonigen, to authorize replacement of the motive water pump from Waldor Pump of Minneapolis for a cost of $2,534. Motion carried unanimously. Consideration of awarding Project 89-1 to Channel Construction for the improvement of Marvin Elwood Road extension and discussion of potentia assessment method. Administrator Wolfsteller informed Council that the 89-1 Project involves development of an extension of Marvin Elwood Road on a corner property and that it has been City policy in the past to assess property owners of corner lots only the cost of development of roadway on one side of the property. In this situation, if the property owners are assessed the full cost of this particular roadway, the cost to develop the roadway would outweigh the benefit to the property; and therefore, the roadway might not be constructed. Council may wish to consider paying a portion 20. 21. 22. 23. Council Minutes - 5/8/89 of the assessment cost, as the extension of the roadway does benefit the area residents in the development and the extension does provide for easier and more efficient snow removal in the area. Motion was made by Warren Smith, seconded by Fran Fair, and carried unanimously to contribute toward the cost to development of the extension of Marvin Elwood Road and to limit the financial exposure of the developer of phase I of the Meadows Second Addition to $8,500. Consideration of adopting Meadows and Meadows Second Addition Developer Agreement. Assistant Administrator O'Neill informed Council that the final draft of the developer agreement was not available at this time, and the developer and City staff request that Council table this matter until the next regularly scheduled meeting. Motion made by Warren Smith, seconded by Fran Fair, to table adoption of Meadows and Meadows Second Addition Developer Agreement pending further Council review at the next regularly scheduled meeting of the Monticello City Council. Motion carried unanimously. Consideration of granting final plat approval - Meadows Second Addition. Applicant, value Plus Homes. Assistant Administrator O'Neill reported that the developer had made the adjustments to the preliminary plat as requested by Council and that the final plat is ready for Council approval. Motion was made by Warren Smith, seconded by Shirley Anderson, to grant final approval of the final plat of the Meadows Second Addition. Motion carried unanimously. Public Hearing - Consideration of vacating streets and utility and drainage easements. O'Neill informed Council that upon acceptance of the final plat, Council needs to vacate the streets and utility and drainage easements associated with the original plat of the Meadows. Motion was made by Warren Smith, seconded by Shirley Anderson, to vacate streets and utility and drainage easements associated with the original plat of the Meadows. Motion carried unanimously. Consideration of townhouse association to own and maintain sanitary sewer main. Gary Anderson reported to Council that staff recommends extension of the existing sanitary sewer main to the northerly portion of the lot containing the Fairway Court Townhouse units. Extension of this main will allow the developer to avoid a spaghetti -like maze of water and 7 Council Minutes - 5/8/89 sewer utilities running to each of the townhouse units. It is proposed that the extension include the sewer main only and would not include extension of the water main. The water lines would include six individual water lines run to each of the six townhouse units. Under this scenerio, the Townhouse Association would be responsible for maintaining the sanitary sewer main placed on the property. Dan Blonigen requested that the Townhouse Association ownership of the water main be recorded on the deed to protect the City against potential responsibilities associated with the sewer main on townhouse property. After discussion, motion was made by Dan Blonigen, seconded by Shirley Anderson, to approve Townhouse Association ownership and maintenance of a sanitary sewer main with the stipulation that the Association will record responsibilities associated with this main on individual deeds. Motion carried unanimously. 24. Other Matters. Rick Wolfsteller reviewed his efforts to get the most mileage possible out of the existing copier systems. He went on to review the continuing problems that staff has had with the existing machines and recommended that Council allocate a minimum of $8,500 to purchase new equipment. After discussion, motion by Fran Fair, seconded by Shirley Anderson, to authorize City staff to purchase a copy machine with capabilities sufficient to handle City needs. Mayor Maus is asked to review purchase prior to finalization. Motion carried unanimously. Jeff O'Neill Assistant Administrator 10