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City Council Minutes 10-27-1980MINUTES REGULAR MEETING - MONTICELLO CITY COUNCIL October 27, 1980 - 7:30 P.M. Members Present: Arve Grimsmo, Dan Blonigen, Fran Fair, Ken Maus, Phil White. Members Absent: None 1. Public Hearing on Variance for Proposed Two 18 -Unit Apartment Buildings and a Conditional Use Permit - Lot 5, Block 1, Lauring Hillside Terrace - Terry Mick and Ery Radunz. Mr. Terry Mick and Ery Radunz, partners, requested a conditional use permit to develop two 18 -unit apartment buildings on Lot 5, Block 1, Lauring Hillside Terrace. In addition to the Conditional Use Permit, which was necessary for any apartment project over 12 units, the applicants also requested variances on the following: A. Lot Size - According to Monticello Ordinance, Lot area for this develop- ment should be 95,000 square feet, whereas, 81,600 sq. ft. is being proposed, and as a result, the land requirement is 14% short of what it should be. B. Square Footage Requirement - Efficiency Unit - The efficiency unit proposed in each complex is 360 square feet, whereas, the ordinance requires efficiency units to be 500 sq. ft. C. A variance from the ordinance provision that requires that in an R-3 zone, all rear parking lot setbacks be 15'. The applicants propose their rear parking lot to be set back 5' since the rearyard setback abuts up against the railroad tracks, which they felt would be still a good buffer zone between their property and the abutting R-2 zone to the north. It was noted that at the public hearing held at the Planning Commission recently, there were no objections to the two 18 -unit apartment buildings as such, but a letter was received from Mr. & Mrs. Lyle Klatt indicating they had objections to the variances from the minimum lot size and also from the rear setback requirements. The developers indicated that this project would not be subsidized by Federal funds, and would be built with conventional funds, and would be rented at market rates. The Planning Commission at their last meeting recommended approval of both the conditional use permit and the variances requested. Reason for their approval for the variances was that they felt the Burlington Northern Railroad tracks would provide an adequate buffer zone between the subject property and the neighboring residential property to allow a 5' parking lot setback; and also felt the efficiency units could be approved in light Council Minutes - 10/27/80 of the fact that all the remaining units more than exceeded the City's minimum requirements. Additionally, the variance on the square footage requirement was recommended for approval in light of the fact that additional land costs might discourage conventional financing and this is one of the few conventionally -financed apartment projects to be proposed in Monticello in quite a while. Motion was therefore made by Fran Fair, seconded by Dan Blonigen and unanimously carried to approve the conditional use permit for the two 18 -unit apartment buildings on Lot 5, Block 1, Lauring Hillside Terrace and also to approve the three variances requested in regards to lot size, efficiency unit size, and rear setback on the parking lot. 2. Public Hearing - Variance Request to Construct a Garage Greater in Size than 1,000 Square Feet in an R-1 Zone and Simple Subdivision for Lots 13 2, 3, 4 & 5 of the Barbur Addition - Chuck Stumpf. Mr. Chuck Stumpf requested a simple subdivision of the above listed lots to make a lot of 80' wide by 353 feet deep for the purpose of building a 3,000 square foot storage garage for his semi trucks. As part of his request to build a 40' x 75' garage, a variance would be required in that anytime a garage over 1,000 sq.ft. is proposed in an R-1 zone, a variance would be necessary. At the Planning Commission meeting, some concern was expressed whether this would be an expansion of the present salvage yard business located adjacent to this property, but the Planning Commission recommended approval of the variance request and simple subdivision provided Mr. Stumpf used the building strictly for his own personal vehicle storage, rather than any expansion of the present salvage yard business. Motion was made by Ken Maus, seconded by Phil White and unanimously carried to grant the variance to allow a 3,000 sq.ft. garage to be built in a residential area, and also to approve the simple subdivision contingent upon receiving specific and accurate surveys which could be recorded by the County Recorder's office, and also contingent upon the building being used strictly for his personal vehicle storage only. 3. Public Hearing - Consideration of a Variance Request - Dave Sieckert. Mr. Dave Sieckert, who is proposing to buy the Gary Corrow home located directly west of the Silver Fox Inn, proposes to use the existing barn located on the property as an informal meeting place for the youth of Monticello. Mr. Sieckert plans to remodel the facilities to include a lounge, kitchen and bathrooms, as well as space for recreational uses such a ping pong, badminton, basketball, etc., and as a result, a variance was requested to allow this remodeling to take place without requiring hardsurfacing and curbing of the parking area. Mr. Sieckert indicated that - 2 - Council Minutes - 10/27/80 there would be no charge for any of the food items served or any fees to use the facilities, and his intention was to strictly provide a facility for the youth of Monticello to use to provide activities for them. The Planning Commission, at their last meeting, recommended that a two- year variance from h ardsurfacing requirements be granted to Mr. Sieckert at which time it could be reviewed again to see how it was working out. Motion was made by Dan Blonigen, seconded by Phil White and unanimously carried to approve the variance to eliminate blacktopping and curbing requirements for up to two years, at which time it would have to be reviewed by the Council again. 4. Consideration of a Rezoning Request - Lots 9 & 10, Block 4, Lower Monti- cello - Vic Hellman. Mr. Vic Hellman, who is proposing to purchase the home on Lots 9 & 10, Block 4, Lower Monticello, requested that this property be rezoned from R-1 (single family) to R-2 (single & two-family residential). His request was being made so that the now unoccupied single family home could be converted and remodeled into a duplex. The existing dwelling has been vacant for some time, and has been main- tained in somewhat less than desirable conditions, and Mr. Hellman indi- cates that by granting a rezoning for duplexes, he would be able to im- prove the interior of the property so that it could be brought up to current building codes. Concern was also expressed by the Council that if the property was updated, it was hopeful that the exterior of the building would also be improved for appearance sake. Motion was made by Fran Fair, seconded by Dan Blonigen and unanimously carried to approve the rezoning of Lots 9 & 10, Block 4, Lower Monticello from R-1 to R-2. (See Ordinance Amendment 10/27/80 #87). 5. Consideration of Rezoning Lot 1, Block 2, Proposed Riverwood Estates - Kermit Lindberg. Mr. Kermit Lindberg requested that the newly created Lot 1, Block 2, the proposed Riverwood Estates Plat, be rezoned from R-1 (single family) to B-3 (Highway Business). Mr. Lindberg felt that this newly created lot which exists between Dino's Other World and the Monticello Treatment Plant would be more suited to commercial business than single family residential. Motion was made by Ken Maus, seconded by Fran Fair and unanimously carried to approve the rezoning of Lot 1, Block 2, proposed Riverwood Estates, con- tingent upon the final plat for Riverwood Estates being approved. (See Ordinance Amendment 10/27/80 #88). - 3 - Council Minutes - 10/27/80 6. Consideration of Approval of Parking for Sam Peraro's Downtown Complex Southeast of the Intersection of Highway 25 and County Road 75. At the August 25, 1980 Council Meeting, approval was given Mr. Peraro for the necessary parking requirements for his new building, based on an 8,400 square foot office/retail complex, but since that time, Mr. Peraro has indicated that a pizza place would be part of the building. A restaurant requires more parking spaces than an office or retail complex, and as such, Mr. Peraro is requesting that the additional parking require- ments be approved for his building. Originally, the Council approved the parking requirements for an office/retail complex, which would be primarily daily daytime use, to use the lot directly south of his proposed building. The new proposed uses of the building including the pizza place according to the City's ordinance, would require 63 parking spaces, with Mr. Peraro providing 8 spaces on site, or a net requirement of an additional 55 spaces needed. Since the pizza restaurant is proposed to be open only from 4:00 P.M. in the afternoon, of the total 63 gross spaces needed, 30 would be considered a daytime use for the office area, etc., with 33 spaces being required in the evening. This item was referred to the City of Monticello's Industrial Development Committee on Parking, and they recommended that although the total require- ment is in excess of the original plans approved by the City Council on August 25, 1980, the actual needs at any one time, that is, the 22 addi- tional spaces provided off property would be needed during the day and 25 spaces during the evening, is less than the 32 spaces previously required considering an office/retail complex. The Business & Industrial Committee also noted that once the approximately 50 commuters in the Security Federal parking lot are moved to the new commuter parking lot, space should be available for the office use and restaurant use. Surveys taken on September 11, 1980 and October 16, 1980 indicated that there would be approximately 50 available spaces in the evening since the commuters are already out and the requirement of the restaurant would only be approximately 25 spaces. Mr. Peraro indicated that he did not feel the additional parking require- ments would pose any problem on the City owned lots, since one of his tennants proposed for the office complex, Fingerhut, Inc., is already presently using this parking lot for their employees at their present location. In addition, he felt the nighttime use of the parking lot would present no problem since on weekends and evenings, these lots are pretty much vacant. Motion was made by Ken Maus, seconded by Fran Fair to approve the parking requirements for Mr. Peraro's office/retail/restaurant complex requiring 63 spaces with 8 provided on site, or a net requirement of 55 additional spaces, contingent upon Mr. Peraro providing a legal agreement indicating that the pizza factory would not be open until 4:00 P.M. It was noted that the additional parking of 55 spaces would be assessed to Mr. Peraro under the downtown parking improvement project of 1974. Voting in favor: Ken Maus, Fran Fair, Arve Grimsmo. Opposed: Dan Blonigen and Phil White. - 4 - Council Minutes - 10/27/80 7. Consideration of Approval of Request for a Permit for a Banner on West Broadway - Monticello Chapter, American Field Service. The Monticello Chapter of the American Field Service requested a permit to hang a banner across West Broadway from Seitz Hardware to Monticello Floral Shop. This banner would advertise a spaghetti supper, and would be displayed approximately November 6 - 13, 1980. The Council noted that some of the banners recently installed in this location have either come down partly or come loose, and suggested that the City possibly make sure in the future that banners are constructed that would remain in their proper locations. One suggestion was that the City purchase banner material itself, and possibly rent these items to organizations that request banners. It was felt this would be one way of controlling the type of banner that was installed, since the City could own the actual sign itself. It was also noted by the Public Works Director that when future banners are installed, the City should have the name of at least one person to contact who would be responsible for maintaining the sign should the sign start to come down. Motion was made by Dan Blonigen, seconded by Phil White and unanimously carried to approve the request of the AFS to place a banner across West Broadway from November 6 - 13, 1980. In addition, a motion was made by Ken Maus, seconded by Phil White and unanimously carried to have the City Administrator check in to the possi- bility of the City purchasing materials for a standard type banner, possible deposit requirements for the permit, and legalities of the City actually owning the sign. 8. Consideration of Option Agreement with David Kranz for Extension of Lease of Portion of Senior Citizens Center. Mr. Dave Kranz, who presently is renting a portion of the Senior Citizens Center for his printing business, requested that the council consider extending his lease agreement until December 1, 1987. Mr. Kranz currently has a lease from the City to use this 1,200 sq.ft. area of the Senior Citizens Center until December 1, 1982, but is requesting that some indication be given that he would be able to remain at this location for a longer period of time if necessary. Mr. Kranz informed the Council that he is considering purchasing the Harry Swanberg residence on a life/estate basis, and the reason for requesting the option agreement is to at least assure himself of a business establishment in the interim. Since his purchase of this property on a life/estate basis, he, at the present time, doesn't have any idea when he would be able to move into his new location, and felt that a longer term lease would at least guarantee him a spot. - 5 - City Council - 10/27/80 One of the concerns expressed by the Council in agreeing to a lease past December 1, 1982, was that the Senior Citizens Center could possibly use the space itself for expansion purposes. The Council indicated that it would not be agreeable to extending the lease for an additional five years past 1982, as it was extremely difficult for the City to anticipate its Senior Citizens Center requirements that far in the future. Based on this, a motion was made by Ken Maus, seconded by Phil White and unanimously carried, to give Mr. Kranz a two-year lease option from December 1, 1982 until December 1, 1984, at the rate of $300 rental fee per month, with either party having the right to terminate the lease agreement with 6 -months written notice. 9. Consideration of Conversion of Manual Accounting System to Computer Processing. Recently, quotes were received from three computer processing firms for the purpose of providing City accounting records on computer processing. The proposal was to provide the present City accounting records and finan- cial reporting systems on computer processing, and the proposals received were as follows: Gruys, Johnson & Associates - $375 - 400 per month Tabulating Service Bureau of St. Paul - $400 - 420 per month Delano Computer Service of Delano - $550 per month It was pointed out by the City Administrator that various alternatives for computer processing was checked out, and the possibilities included the City actually purchasing its own computer system, or having the processing done by other computer firms. It was felt that at the present time it would not be cost-effective for the City to actually expend approximately $30,000 for its own equipment, but would be better to go on a month-to-month basis with an outside processing firm to see how the system would work. It was noted that Gruys, Johnson & Associates, the low quote received, is also the City's auditing firm and it was felt that since they have worked with the City of Monticello over the past 20 years, they have a familiarity with the City of Monticello's present accounting system. It was noted that although the proposals would presently only involve the accounting records of the City, Gruys, Johnson has the capability of putting the City's utility billings on computer in the future if the City desired. Motion was made by Fran Fair, seconded by Ken Maus and unanimously carried to approve conversion of the City of Monticello's manual accounting and financial system to computer processing and acceptance of the proposal of Gruys, Johnson & Associates in the approximate amount of $375 - 400 per month, with the conversion to be on a month-to-month basis. - 6 - City Council - 10/27/80 10. Consideration of the Final Plat for The Brothers Subdivision. John Badalich, City Engineer, had reviewed the final subdivision plat for The Brothers, which was situated just south of The Meadown Subdivision and west of Balboul Estates. This plat consisted of 8 lots that are zoned R-2 and one lot which is zoned R-3. Motion was made by Dan Blonigen, seconded by Ken Maus and unanimously carried to approve the final plat as presented and approved by the City Engineer. 11. Consideration of Award of Contract on Storm Water Ponding Improvement Project - West River Street. At the City Council's October 6, 1980 meeting, John Badalich, City Engineer, was authorized to obtain quotations on the installation of culverts for Lots 2, 3, 4 & 5, Block 1, Ritze Manor, and also a quotation on a 24" culvert to be placed on Hilltop Drive to allow for proper drainage in that area. Mr. Badalich indicated that four contractors were sent plans requesting bids, but only one bid was received from Brenteson Construction Company of Big Lake in the amount of $7,730.80. Mr. Badalich's original estimate was approximately $6,200. In addition to these culverts located along West River Street, the Council also reviewed the drainage problems existing on the west side of Otter Creek Road between Sandy Lane and Otter Creek. Although the culvert along Sandy Lane and also in front of Rick Wolfsteller's house is also inade- quate for proper drainage, it was decided that this area would not be looked at this fall, but possibly next year. In addition, the Council discussed whether only one or two of the culverts along West River Street should be replaced this fall in an effort to see if this would alleviate the problem without installing all five new culverts as recommended by the engineer. The reason for this was that apparently one or two of the culverts are way under sized, and possibly just replacing these two culverts may eliminate the present drainage problems in Ritze Manor. Discussion by the Council concerned whether the City should order the materials for these two driveways and hire Brenteson's backhoe equipment on an hourly basis to do the installation. It was felt this would be a much cheaper way of proceeding this fall, and next spring, the area could be reviewed to see if any other action was necessary. As a result, a motion was made by Phil White, seconded by Dan Blonigen and unanimously carried to reject the bids received for the improvement on West River Street. In addition, a motion was made by Phil White, seconded by Fran Fair and unanimously carried to negotiate a price with Brenteson Construction Company for use of their backhoe equipment for the purpose of replacing the two undersized driveway culverts in Ritze Manor, with the City being the general contractor and ordering the materials that were necessary. - 7 - Council Minutes - 10/27/80 12. Consideration of Adoption of a Resolution Accepting Grant Offer from the State of Minnesota for Step III Construction Funds of $829,860. Motion was made by Phil White, seconded by Fran Fair and unanimously carried to adopt a resolution accepting the grant offer from the State of Minnesota in the amount of $839,860 for the State of Minnesota's 15% share of the total estimated project cost of $5,532,400 for the improvement of the wastewater treatment facility. (See Resolution 1980 #27). 13. Consideration of Establishing Special Meeting for the Canvassing Board on November 5th or 6th, 1980. Motion was made by Phil White, seconded by Fran Fair and unanimously carried to set November 10, 1980 as the date the canvassing board for the City election of November 4, 1980 would be held. 14. Consideration of Authorizing City Administrator to work with the Joint Fire Board in Proposing Fire Contracts with the Townships of Silver Creek and Otsego. The present contracts with Otsego and Silver Creek Townships for fire protection are up for renewal on January 1, 1981, and it was recommended by the City Administrator that the City Administrator work with the joint fire board in recommending any changes for the new contracts. In the past, the fire contracts with both Silver Creek and Otsego Town- ships have been based on a stand-by charge of $300 per year, plus an hourly rate for each fire. It was recommended that possible changes be made in future fire contracts in that possibly a different method be used in determining how much each township be charged for fire protection. One method noted was that possibly each township could be charged for fire protection based on their assessed valuation of all the property in each township. This method would attempt to average the percent of usage of a fire department with the percent of assessed value protected. Motion was made by Fran Fair, seconded by Phil White and unanimously carried to request that the joint fire board review with the City Administrator possible modifications on the Fire District's contracts with the Townships of Otsego and Silver Creek for future years. Any recommendations would then be brought back to the Council for their approval. 15. Approval of Bills for October, 1980, and Approval of Council Minutes. Motion was made by Phil White, seconded by Ken Maus and unanimously carried to approve the bills for the month of October, 1980, as presented, and the minutes of the regular Council meetings held September 22, 1980 and October 6, 1980. (See Supplement 10/27/80 #1). - 8 - Council Minutes - 10/27/80 16. Discussion on Lighting at the Proposed Commuter Parking Lot. John Badalich, City Engineer, reviewed with the Council a meeting he had with NSP representatives regarding lighting the proposed commuter parking lot at the interchange of I-94 and Highway 25. It was Northern States Power Company's recommendation that the City consider owning the lighting system in the commuter parking lot which would enable the City to control the time the lights are actually on, which would result in a much lower monthly charge based on electricity used. It was noted by NSP representatives that the savings in utility cost would offset in future years the cost to the City of installing the lighting system. The lighting system as proposed would have three lighting standards with six lights at an estimated cost of between $6,000 - 8,000 to the City. Motion was made by Dan Blonigen, seconded by Fran Fair and unanimously carried to authorize the public works department to proceed with the development of the commuter parking lot and the installation of lighting in the lot, per the recommendations of the City Engineer. It was noted that NSP would sell the transformer and poles to the City, as needed, and that the City would request bids for the electrical installation and hookup, including lights. Meeting adjourned. Rick Wolfste er, Asst. Admin' trator, RW/ns - 9 -