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02-12-07 CCOTSEGO CITY COUNCIL MEETING OTSEGO CITY HALL FEBRUARY 12, 2007 6:30 PM 1. Mayor Larry Fournier will call the meeting to order. Mayor Fournier called the meeting to order at 6:30 PM. Roll Call: Mayor Larry Fournier; Councilmembers: Vern Heidner, Jessica Stockamp, Mark Thorsted and Tom Darkenwald. Staff: Judy Hudson, Clerk/Zoning Administrator; Andy MacArthur, City Attorney; Daniel Licht, City Planner; Ron Wagner, City Engineer; Gary Groen, Finance Director and Brad Belair, Public Works Director. Pledge of Allegiance: Mayor Fournier led in the Pledge of Allegiance. 2. Consider agenda approval. Mayor Fournier requested to move Item right after Consent Agenda. 5.2. to Item 7.0 and move Item 8.4. to CM Heidner motioned adoption of agenda as amended. Seconded by CM Stockamp. All in favor. Motion carried. 3. Consider the following minutes 3.1. January 22, 2007 City Council Meeting CM Heidner motioned adoption. Seconded by CM Stockamp. All in favor. Motion carried. 3.2. January 29, 2007 City Council Budget Workshop. CM Stockamp motioned adoption. Seconded by CM Heidner. All in favor. Motion carried. 4. Oren Forum: (5 minute limit) Ben Bastyr, 87th requested time under Item 8.4. Butch Belair, Eagle Trucking, requested the City Council table the application until a further date to give him time to follow up on. Andy MacArthur reviewed the timelines under which the City Council is required to act. Mr. MacArthur said there is sufficient time to allow the City Council to table the application to the meeting on February 26, 2007. Nancy Fehn, 83rd Street, understood from the Planning Commission meeting that there would be no new information allowed after the Public Hearing was closed and if Eagle Trucking is requesting to table why we would allow this to take place. Mr. MacArthur said that the Public Hearing has been closed and if Eagle Trucking came up for a different plan, the revised plan would be subject to a new application process. Mr. MacArthur said that it is an applicant's right to request a tabling of their proposal. The City Council may allow limited additional comments from the applicant and interested parties but no new evidence can be submitted. Chris Wilson, Odean, Otsego Heritage Commission, we have a unique window of opportunity to publish a book, have had an offer to help on this book, and would like to keep profits for heritage commission. She asked for money to publish book. Gary Groen indicated that the Heritage Preservation Commission currently has $500 in budget. CM Stockamp motion to approve expenditure of $900 to print the books. Seconded by CM Heidner. Out of CC Contingency Fund, return the $900 and keep the rest in Heritage Preservation. All in favor. Motion carried. 5. Consent Agenda. _(Non -controversial items) 5.1. Approve Claims List.. 5.3. Approve Pay Request No.9 to KUE Contractors in the amount of $446,184.00 for Otsego Public Works Facility. 5.4. Approve Resolution No.2007-06 Budget Amendments. 5.5. Approve Pay Request to Bonestroo in the amount of $19,214.14 for WWTF West and East. 5.6. Approve Resolution No.2007-07 Adopting Minimum Sewer Rate. 5.7. Approve Final Pay Estimate (#1) to Infratech in the amount of $9289.88 for Sanitary Sewer Cleaning. 5.8. Approve Final Pay Estimate (#4) to Dave Perkins Contracting, Inc. in the amount of $64,888.15 for TH101, CSAH 37 and CSAH 42 Water and Sewer ]ackings. 5.9. Approve Final Pay Estimate (#9) to LaTour Construction Inc. in the amount of $15,177.05 for West Trunk Watermain, Sanitary Sewer and Access Road. CM Heidner motioned to adopt the Consent Agenda except for Item 5.2. as this was removed for discussion. Seconded by Mayor Fournier. All in favor. Motion carried. 8.4. Proposed Pouliot Mining Permit Mayor Fournier moved Item 8.4 up for discussion and said that the City Council has a request to table from the applicant. Mr. MacArthur reviewed the timelines for City Council action established by Minnesota Statues and Minnesota Rules on the CUP application and EAW petition. Mr. MacArthur said that there is time in the review process to allow the application to be tabled until the meeting on February 26, 2007. CM Heidner stated he was concerned with reason for tabling the application. Daniel Licht responded that an applicant has a right to advocate the request before the City Council and to address the recommendations of the Planning Commission. A City will typically defer to an applicant's rights to due process and fair consideration of the request. Mr. Licht said that a second reason to table is that the City Council does not have draft minutes from the Planning Commission on February 5, 2007 to review which should be available for review if the City Council is likely to act to deny the application. Mr. MacArthur added that denying the application creates potential for legal action against the City and wants the record to show that applicant has been given every opportunity. CM Heidner noted that City Council agenda packets are prepared the Thursday prior to the meeting date and any information provided by the applicant would be included. Mr. Licht said that City Council agenda packets are typically available by 3:00 PM on the Thursday afternoon prior to the meeting. Ben Bastyr, EAW petitioner's representative stated that there has been appropriate time to consider the application and that the applicant should have been prepared. Mr. Bastyr said that there is not a need to prepare a new plan nor is it justified. Any new plan would be subject to the same arguments raised during the public hearing regarding inconsistency with the Comprehensive Plan. Mr. Bastyr said the application should not be tabled. CM Thorsted motioned to table consideration of the application to the City Council meeting on February 26, 2007. Seconded by Mayor Fournier. Voting For the Motion: Mayor Fournier and CM Thorsted. Voting Against the Motion: CM Heidner, CM Stockamp and CM Darkenwald. Motion failed three (3) to one (2). Mr. Licht presented the Planner's Report and summary of the public hearing and recommendations of the Planning Commission. Ron Wagner addressed the additional engineering issues related to wetland impacts, stormwater drainage and ground water impacts. Mr. Butch Belair restated his request to table the application to a future meeting. Mayor Fournier responded that a motion to table the application failed and so the City Council will discuss the application tonight. Mr. Butch Belair said the biggest issue is use of Mason Avenue as a haul route. If the use is approved, the City has the ability to regulate the number of trucks and operation on City streets. Mr. Butch Belair added that other development in the area adds traffic on these streets. These trucks are not regulated beyond existing traffic laws. Approval of the use would be great benefit to the City in 2 this regard because of proximity of the gravel and sand source. Mr. Butch Belair said that the City can control issues over speed and dust and restated an offer to have a meeting with City every week to address any concerns. Mr. Butch Belau asked the City Council to approve this as he feels they will comply wkh every condition. Mr. Licht stated that the main issue for the Planning Commission recommending denial is that the streets are inadequate because of shoulders and ditch slopes that do not meet City and MNDoT standards and the type of vehicle and volume of traffic generated by the proposed use on these streets. CM Heidner asked what the cost would be to upgrade 80"' Street, Marlowe Avenue, 83rd Street and Mason Avenue to City specifications, not including right- of-way acquisition. Mr. Wagner replied that construction would cost approximately $420,000 with an addition $200,000 estimated for right-of-way. CM Heidner asked if these numbers included overlay of the streets after closure of the use. Mr. Wagner said that it would be an additional $161,000. CM Heidner asked if the applicant or City staff had explored an overland haul route directly to CSAH 39. Mr. Wagner said that City staff did not pursue this but it was discussed in staff meetings with the applicant and the names of the property owners the haul route would have to cross were provided. CM Thorsted asked what the area of the subject site is. Mr. Licht responded the property is approximately 100 acres in area. Mayor Fournier asked if the gravel on the subject site is likely to be needed for development. Mr. Wagner responded that gravel is a regional resource needed for building streets and that when this area is developed, the material could be used to build streets as a cost savings for a developer. CM Thorsted asked about the need to grade the abutting school district property. Mr. Licht said that approval of a grading plan for development of the school property is a City Council decision and is typically considered as part of the zoning and subdivision approval process. Mr. Licht added that City staff believes the school district property would also need to be excavated to allow for the development of school facilities. Mayor Fournier asked when City staff estimates that area streets would be upgraded. Mr. Wagner responded that existing Mason Avenue functions , a collector street but when MacIver Avenue is constructed between 8& S and CSAH 39 it will assume that function in the area and Mason Avenue will j " be a local street. Mr. Wagner added that 85th street will be a future ea -west 3 collector street between CSAH 19 and Nashua Avenue. Mr. Licht said that construction of these future collector streets is developer driven. Mayor Fournier asked how many years before this area will have urban development. Mr. Licht said that based on current growth rates and City service capacities, City staff would anticipated 10 to 15 years before extension of utilities. Development of a school would likely require extension of utilities sized only for that site prior to utilities being extended to serve the overall area. CM Darkenwald asked for clarification regarding extension of MacIver Avenue north of 80"' Street to CSAH 39 and what will become of Mason Avenue. Mr. Wagner said that MacIver Avenue is to be the future collector street for the area. After MacIver Avenue is completed, Mason Avenue will likely be designated as a local street on the Transportation Plan. Mr. Licht added that the location of Mason Avenue may be changed in the future as development occurs. CM Heidner stated that he is reconsidering tabling the application. CM Heidner said that the City Council has never turned down an applicant's request to table an application and he is concerned about not giving full rights to an applicant. CM Heidner said that he is concerned about the submission of new information as the public hearing is closed and asked Mr. Butch Belair what kind of information would be presented if the request were tabled. Mr. Butch Belair said that the request to table has to do with discussions with the school district regarding the school district's interest in the subject site. Mr. MacArthur said that the applicant is allowed to make a presentation based on information given at hearing but that any new plan would have to go back to the Planning Commission. Mr. MacArthur said that the City is trying to be fair to applicant and give them opportunity present their request. Mr. MacArthur said that the issue the City Council must consider is whether the applicant has met requirements for the conditional use permit. Mr. Licht said that if the City Council denies the application, the Zoning Ordinance does not allow the applicant to submit the same application for one year unless approved by the City Council. If the City Council tables the application and the applicant presents a new plan in advance of the City Council meeting on February 26, 2007, City staff would ask the applicant to withdraw the current request and initiate a new application process. In requesting the application be tabled, the applicant is allowed only to address issues specifically raised at the public hearing. CM Heidner said that he is still concerned about the new information being submitted. Mr. Licht said that given applicant's request to table, they may look at the situation and decide to withdraw. 4 Mr. MacArthur said that there is also a petition for an EAW to be prepared. If the application is withdrawn, no action on the EAW petition is required but the request for an EAW would remain in effect for one year for a similar project on the same site. Randy Pouliot, property owner, said that they were contacted by the School District Superintendent about purchasing their land and there is a chance to discuss an overland haul route. Mr. Licht said that amending the grading plan to include any additional area would require a new application but that adding the overland haul route would not. CM Heidner said that rather than being finished graded for housing the site would be finished grading for high school. Mr. Licht said that CM Heidner was correct and that expansion of the grading area to include the school district property would likely be over threshold for a mandatory EAW to be prepared. Mr. Pouliot said that they hope to have something concluded with the School District in two weeks. If they can reach an agreement with the school that would give an opportunity to establish an overland haul route. CM Heidner said that the Planning Commission's findings for denial were that the proposed haul roads are not adequate which the applicant is attempting to address. Mr. MacArthur recommended that any proposal to use an overland haul route should be referred back to the Planning Commission. Mr. Licht said that the applicant was advised by City staff prior to application regarding potential issues regarding use of existing streets for haul routes. So as to allow the applicant every opportunity to address the Planning Commission recommendations, City staff recommends tabling the application to February 26, 2007. CM Darkenwald asked what controls the City would have to ensure that conditions related to dust, noise and other potential impacts addressed by the applicant are complied with. Mr. Wagner replied that if the operator doesn't meet requirements outlined in the CUP, the operation can be halted until the situation is corrected. Mr. Licht added that provision of dust control is specially addressed by City regulations and can be enforced by City staff. Mr. MacArthur said that a condition of approval would be for the applicant to enter into a written agreement that would address enforcement and administration of the permit approvals. CM Darkenwald asked about the width of the existing streets to accommodate passing traffic. Mr. Wagner said that the drive lanes on the streets meet MNDoT and City specifications which allows for approximately 1.5 feet between passing 5 large vehicles. Mr. Licht stated that the recommendation for denial from Planning Commission was specific to the construction of the existing shoulders and slope of ditches and not lane widths or corner radius. CM Darkenwald asked about potential water contamination on site from oil or fuel spills. Mr. Wagner said that the excavation stops at certain elevations because the soils type changes. Mr. Wagner said that there will be no fueling station onsite and there is only potential for minor spills typical of construction sites, which is not a significant issue. CM Thorsted asked for a description of the on-site crusher. Mr. Wagner described the equipment and its operation. Mr. Wagner said the applicant states that the crusher would likely only be in use approximately two weeks per year. CM Heidner said that he is inclined to vote to deny the request, but is concerned that the applicant is asking to table. CM Heidner says he has no problem with tabling if it is understood that any new information requires the application to be referred back to the Planning Commission. CM Heidner noted that a motion to reconsider a tabling motion must be made by one of the members on the prevailing side of the previous motion that failed. Mr. MacArthur said that the only information that could be presented would be information that they are arguing they have met applicable conditions for approval. City staff will review any submission prior to the City Council meeting on February 26, 2007 and advise as to whether the City Council should consider it. CM Darkenwald said that the applicant was made aware of safety concerns and those issues haven't been addressed by applicant. CM Darkenwald asked if the request is denied, can the City Council waive the one year prohibition on submission of the same request. Mr. MacArthur said that the City Council may accept a new application by a 4/5 vote. CM Darkenwald asked the applicant why the haul route issues were not addressed. Mr. Butch Belair said that the issues with the haul routes were addressed by slowing speeds to 40 MPH, dust control, holding weekly meetings with the City and agreeing to overlay the street after closure. Mr. Butch Belair said that Mason Avenue can't be widened as the right-of-way is not wide enough. Mr. Licht said that issues with the haul roads were discussed at initial staff level meetings with the applicant and they were advised that City staff would recommend conditions intended to mitigate street safety issues. Mr. MacArthur said that City staff is recommending tabling the application to allow the applicant the opportunity to demonstrate if they meet the conditions 6 for approval of a CUP. Denial of the application exposes the City to potential litigation and City staff advises that all efforts to afford the applicant due process be provided. CM Heidner said that in view of the recommendations of City staff regarding processing the application and the applicant's right to due process, the City Council needs need to allow applicant to exhaust all opportunities to present their request. Motion by CM Heidner to reconsider the motion to table the application. Motion failed for lack of a second. CM Heidner noted that the City Council has findings -of -fact drafted by City staff to consider for denial of the application included as part of the City Planner's memorandum dated 7 February 2007. Mr. MacArthur said that the applicant may withdraw the application prior to action by the City Council. Mr. MacArthur said that withdrawing the application now would not make any future application subject to the restriction on new applications being submitted for one year. Mr. Licht said that any proposal to expand the grading use to the adjacent property would likely require an EAW to be prepared and be considered a new application requiring a new public hearing process. Issues raised in considering this application would obviously be raised as part of any future application, but the City Council would not have established specific findings effecting future applications if the current application is withdrawn. Mr. Butch Belair said that timing for approval of the use is critical as any delay may interfere with a school being developed on the abutting property. City staff explained that any significant change to the plans now would likely require a new application regardless of the City Council's action at the meeting tonight. Mr. Butch Belair requested to withdraw application at this time. Mr. MacArthur advised the City Council that the withdrawal should be in writing and requested a short recess in order to receive the request from the applicant. Mayor Fournier recessed the meeting. Mayor Fournier reconvened the meeting. Mr. MacArthur advised the City Council that the applicant had submitted a written notice that they withdraw the application. Mr. MacArthur said that the City Council needs to take no further action regarding the CUP. 7 Mr. Licht said that the City Council needs to approve a motion to take no action on the EAW petition as the application has been withdrawn. The petition for an EAW will remain in effect for one year and applies to any similar project on the same property. Mayor Fournier motioned to take no action regarding the petition for an EAW related to the project as the project has been withdrawn and directed the City Planner to provide notice to the EQB, EAW petitioner's representative and applicant. Seconded by CM Heidner. All in favor. Motion carried. 6. Old Business. 61 Change Orders and Update for East Wastewater Treatment Plant. Karen Cavett, Bonestroo, went over Change Orders 7 and 8. CM Heidner motioned to accept Change Orders 7 and S. Seconded by CM Thorsted. All in favor. Motion carried. Ms. Cavatt also said they are having problems with electrical interference at the West Treatment Plant and need to pull all four existing cables, then shield and separate them at a cost of $12,342. The contractor said he won't exceed this amount. The Council directed Karen to continue negotiations with the contractor. She also recommended automating the sludge loading stand at the West Plant the same as the East Plant for $3,656. Mayor Fournier motioned to approve the upgrade of an Automatic Sludge Loading Stand for $3,656. Seconded by CM Heidner. All in favor. Motin carried. 7. Public Works. 5.2. Approve Pay Request No.5 to Knife River Corporation in the amount of $270,007.42 for Park Improvements. Brad Belair has gone over this pay request with the engineer and recommends payment. CM Stockamp motioned to approve Pay Request No. 5 to Knife River Corporation for $270,007.42. Seconded by CM Thorsted. All in favor. Motion carried. 8. Dan Licht, City Planner. 8.1. Final Plat River Pointe 4"' Add, Dan Licht presented the Planner's Report. Ron Wagner went over his engineering items. Christine Cook, applicant, agreed with the conditions and is willing to work with staff to resolve those issues. Mayor Fournier motioned to approve the Final Plat subject to the conditions listed in the Findings of Fact. Seconded by CM Heidner. All in favor. Motion carried. 8.2. Final Plat Wildflower Meadows. 8 Dan Licht presented the Planner's Report. Ron went over the engineering items. Shane Chatleain, Rottlund, stated they agree with the conditions. CM Heidner motioned to approve the Final Plat for Wildflower Meadows subject to the 13 conditions listed in the findings of fact. Seconded by CM Thorsted. Voting For the motion: CM Heidner, CM Stockamp and CM Thorsted. Abstained: Mayor Fournier and CM Darkenwald. Motion carried. 8.3. EDCO Site and Building Plan Review. Dan Licht presented the Planner's Report. Ron went over the Engineering Report. CM Heidner motioned to approve site and building plans for an office/warehouse building located on Lot 3, Block 1, Otsego Commercial Park, subject to the 12 conditions listed in the Findings of Fact. Seconded by CM Stockamp. All in favor. Motion carried. 8.5. Proposed Rental Housing Policy. Dan Licht presented the Planner's Report. The Council would like "water closet" changed to toilet. CM Heidner motioned to adopt Ordinance 2007-01 with wording changes. Seconded by CM Darkenwald. All in favor. Motion carried. 8.6. Wright CounU Land Use Plan. Dan presented the Planner's Report. CM Heidner motioned to authorize Mayor Fournier to sign the letter to Wright County as drafted by the City Planner. Seconded by CM Stockamp. All in favor. Motion carried. 9. Ron Wagner, City Engineer. 9.1. Set Public Hearing for I-94 West Industrial Park Assessments, CM Heidner motioned to adopt Resolution 2007-09 setting a Public Hearing on Proposed Assessment for the Otsego I-94 West Industrial Park for March 26, 2007, 6 PM. Seconded by CM Thorsted. All in favor. Motion carried. 9.2. Discussion of Otsego Creek -Residents Request for Additional Trees. Ron Wagner said the residents have requested additional trees and he made the following recommendation: Empty lots - No trees Lots with homes, but no occupancy - 2 trees Lots with occupied homes - 4 trees Mr. Wagner estimates the cost at $30,000. CM Heidner motioned to authorize the purchase of additional trees for the Otsego Creek Project as recommended by the City Engineer for the area between the West Treatment Plant and lander Avenue. Seconded by CM Thorsted. All in favor. Motion carried. Z 10. Andrew MacArthur, City Attorney. PUBLIC HEARING: 10.1. Lennar Cor ration: A. Partial Vacation of existing ingress & egress easement lying within the Plats of Riverplace 1s� and Riverplace 3rd Addn. Andy MacArthur went over the request for the partial vacation. Judy Hudson attested that the proper noticing, posting and publishing was completed. Mayor Fournier opened the Public Hearing at 10:10 PM. Russ Brey, 5623 Radford, said his house backs up to pond that is near the former entrance. There is a culvert there and he is wondering if it will be removed so he could plant trees. Ron Wagner explained there will still be a drainage and utility easement and he doesn't want to change any elevation because of the utilities that are there. The Council directed the City Engineer to conduct a site inspection. Hearing no other public comments, Mayor Fournier closed the Public Hearing at 10:20 PM. CM Heidner motioned to adopt Resolution 2007-08 approving vacation of Ingress and Egress easement as set for the in Document No. 659295 at the office of the Wright County Recorder's Office dated October 20, 1998 and reserving the City of Otsego a Utility Easement affecting the recorded plats of River Place Second Addition and Riverplace Third Addition and for staff to send a letter to all residents bordering this easement explaining what can and what can not be done on this easement. Seconded by CM Stockamp. All in favor. Motion carried. 11. Council Items. 11.1. Consideration of additional Wright County Patrol Hours Gary Groen said the 2007 Budget provides for 8 additional hours of patrol starting July 1, 2007. CM Stockamp motioned to approve the additional eight hours of patrol coverage starting July 1, 2007. Seconded my CM Heidner. All in favor. Motion carried. CM Stockamp motioned to appoint Denise Andrusko to the Police Commission and Linda Lewis as alternate starting immediately. Seconded by CM Heidner. All in favor. Motion carried. 12. Mike Robertson, City Administrator. 12 .1. Revised I-94 Memorandum of Understanding. CM Darkenwald motioned to table to the next City Council Meeting. Seconded by CM Stockamp. All in favor. Motion carried. 12.2. I-94 Resolution of Supggrt 10 CM Heidner motioned to table to the next City Council Meeting. Seconded by CM Darkenwald. All in favor. Motion carried. 14. Adjourn by 10 PM. CM Stockamp motioned to adjourn. Seconded by CM Darkenwald. All in favor. Motion carried. Meeting adjourned at 10:28 PM. Mayor Larry Fournier ATTEST: Judy Hudson, Clerk/Zoning Admin. 11