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02-12-96 CCCITY OF OTSEGO WRIGHT COUNTY, MINNESOTA CITY COUNCIL MEETING 6:30 PM COUNCIL CHAMBERS OTSEGO CITY HALL FEBRUARY 12, 1996 1. Mayor will call me . ing to order. Mayor Norman F. Freske called the February 12, 1996 City Council Meeting to order at 6:30 PM. Roll Call: Mayor Norman F. Freske; Councilmembers: Suzanne Ackerman, Larry Fournier, Vern Heidner. Absent: Councilmember Ron Black Staff: Andy MacArthur, City Attorney; Bob Kirmis, Assistant Planner; Larry Koshak, City Engineer; Elaine Beatty, City Clerk/Zoning Administrator; Phyllis Cokley, Director of Business/Finance; Judy Hudson, Deputy Clerk; Carol Olson, Secretary. 2. Consider Agenda Approval Mayor Freske requested the additions of: Item 10.4a. Appoint subcommittee for Personnel Review. Item 10.1. Sewer Study Update CM Fournier requested the additions of: Item 10.4b. Consider Mayor Freske appointing a subcommittee for Proposed Home Extended Business. CM Heidner requested the additions of: Item 10.4c. Review Category Page of Facility Use Guide CM Fournier motioned approval of the February 12, 1996 City Council Agenda as amended. Seconded by CM Heidner. All in favor. Motion carried. 3. Consider Minutes A. Januar; 11, 1996 Workshop CM Fournier motioned to adopt the January 11, 19% City Council Special Workshop Minutes. Seconded by CM Heidner. All in favor. Motion carried. B. January 25, 1996 Workshop CM Fournier motioned to adopt the January 25, 1996 City Council Special Workshop Minutes. Seconded by Mayor Freske. All in favor. Motion carried. C. January 22, 1996 City Council CM Heidner noted a correction of his objection to the motion regarding the ISTEA Grant on Page 8, Item 10.2, stating his objection was the commitment to spending money for 4 to 5 years. CM Fournier motioned to adopt the January 22, 1996 City Council Minutes as amended. Seconded by CM Ackerman. All in favor. Motion carried. Otsego City Council Meeting of February 12, 1996, cont'd. Page 2. There were none. 5. Open Forum Dave Foley, resident of Island View Estates, inquired about the possibility of the minutes and noticing published in the Monticello Times since they do not receive the Elk River Star News. Mayor Freske explained that the City designated the Elk River Star News as their official newspaper. He also said if publishing was to be in the Monticello Times then the City would also have to do publishing in the Crow River News since a lot of residents only receive that newspaper. The cost of publishing runs around $10,000 a year and would be too expensive to do publishing to other newspapers. CM Fournier explained that residents not receiving the Elk River Star News may subscribed at a special reduced rate offered to residents of Otsego. CM Heidner motioned to accept the Consent Agenda. Seconded by CM Ackerman. All in favor. Motion carried. 7.1. Chris B clow sketch plan for PID 118-010-001010 Mr. Bob Kirmis referred to the attached sketch plan. The proposal is for dividing a 35 acre parcel of land overlaying the original town site plat. Rezoning would be from A-1 to a PUD, if the City chooses that method of processing and a replat and subdivision of the property. He said the Planning Commission had two areas of discussion: 1. Processing - two options: A. PUD B. Rezoning to R-3 (Moving the Immediate Service Line) 2. Sketch Plan included several lots less than the required 150 foot frontage. The Planning Commission was concerned over this but there was no firm direction. Otsego City Council Meeting of February 12, 1996, cont'd. Page 3. CM Heidner stated he is definitely not in favor of changing the Immediate Service Area Line and feels a PUD is appropriate. He also stated he is not in favor of lots less than 150 feet in width. He asked the City Attorney if the developer rights are only on the northern most part of the property. Andy MacArthur stated his position is that there are no development rights except for the Northern part. In reviewing the plan, there is development all around this piece of property and therefore this would not be piece meal developing. Mayor Freske agreed with going with a PUD and lots should be the required width. CM Fournier agreed with the in -fill of the area and lots should be kept at 150 feet of width. He disagreed with the PUD, stating that should only be used for special circumstances, and should go with the R-3 Zoning. Mr. MacArthur agreed a PUD should be used for extraordinary circumstances and doesn't see the technical requirements for a PUD in this situation. CM Ackerman stated she would like to see larger lots. The Council discussed the rationale of the R-3 Zoning. These would be one acre lots abutting larger lots to the East and abutting land that is in the Immediate Service Area. There was discussion of requiring this project to have larger lots therefore, being compatible with the abutting property. Chris Bulow stated having one acre lots is proper. Soil conditions are good in this area and lots will support septics for many years. With water and sewer, 62 lots would be available. Allowing this project would benefit the City's Watershed District with the $30,000 fee. Mr. Bulow said widening the lots, he would lose 3 or 4 lots and before doing that he would put in a short cul-de-sac. Larry Koshak would like to eliminate the cul-de-sac. He suggested considering the lot width at the set back line. He also suggesting moving the front set back line further back, feeling this would look better and wouldn't be wasting the depth of the lots. Mr. Kirmis said this could be achieved through a PUD but cautioned this would be setting a precedent and suggested amending the ordinance. Mr. Bulow's rationale for the smaller lot fronts is because of the type of houses that will be built on these lots, even with 150 ft of frontage the lot wouldn't be able to be subdivided. CM Heidner said he would support lots less than 150 feet in width if he knew a snowplow couldn't turn around on the cul-de-sac and asked to see a sketch plan. He doesn't support moving the Immediate Service Area Line. He would support a PUD because of the in -fill area is there and there are some development rights. CM Fournier said when the formal request is received, they can redefine to make this work. Otsego City Council Meeting of February 12, 19%, cont'd. Page 4. Mr. Kirmis reported the developer, Neil Perlich, has expressed a desire for low/medium density development and a golf course on 335 acres. The intent is to service the development with a package treatment plant. The developer is trying to get the general intention from the City whether this land use is acceptable in the proposed location. The tentative plan calls for a 190 acre golf course with 200 residential homes. Mr. Kirmis went over NAC's Report dated February 8, 1996. If the attached Resolution is approved it would amend the City's Comprehensive Plan as follows: 1. Expand the Immediate Urban Service Area boundary to include the subject property. 2. Change the suggested land use upon the subject property from Agricultural and Low Density Residential to Low Density Residential. Mr. Kirmis pointed out the Comprehensive Plan gives direction to both support and discourage the land use. To encourage this use: 1. Promotion of variety of housing units in the City. With package treatment plant would allow smaller units 2. Environmental quality issues with location of treatment plant could potentially serve existing development like Island View and Riverwood if environmental problems would occur To discourage this use: 1. Protection of Ag Land 2. Expansion of Immediate Service Area is not continuous with the development core. The Planning Commission recommended approval of the Comprehensive Plan Amendment. They recommended low density development and opposed medium density. They also approved this conditioned upon the project approval and no adverse environmental impacts. Mayor Freske stated medium density should be included. He referred to the Majestic Oaks Development, which he believes was well done including upscale town homes. CM Fournier said when this was discussed at the Planning Commission it was their understanding that this would be single family housing. He also said it is difficult to approve without seeing the plans. Otsego City Council Meeting of February 12,19%, cont'd. Page 5. Mr. Kirmis noted that what is being done is creating a basis for possible rezoning of the property. The City will be able to make a finding to say it is consistent with the Land Use Plan and that a lot of work will need to be accomplished. CM Heidner asked for the background for the neighbors opposition. The staff responded they were concern with the smaller urban type of lots. They also said the developer does not plan on developing 12,000 square foot lots. Mayor Freske directed the Council that the developer needs a indication from them. CM Heidner referred to a letter dated January 28, 1996 from Neil Perlich regarding the franchising the treatment plant. Mayor Freske said the developer would like to know if the City, when other areas hook up, would become involved. Andy MacArthur said discussion regarding the franchise is premature at this time. Larry Koshak said the interpretation of the scenario is that they would build a treatment plant, have the planning ability to expand it should there be petitions from other areas to hook up, then the City would be involved. CM Heidner asked even if the plant only services this development and Riverwood, wouldn't he still need a franchise. Mr. Koshak said no. Mr. Perlich said he understands the City won't share in the cost. They will need to know if its makes sense to design, construct and maintain this operation. The Council and staff did further discussion regarding this issue and decided a special workshop meeting should be scheduled. Mr. Kirmis and Mr. Koshak suggested to add a condition to the amendment regarding the resolution of issues regarding the sewer and water. CM Fournier motioned to accept the Planning Commission recommendation subject to the condition a resolution of issues related to development of adequate sewer and water issues in a manner acceptable to the City. Seconded by CM Heidner. All in favor. Motion carried. (Discussion occurred between the motion being made and the actual vote) CM Fournier stated in approving this it will get a proposal before us as it is difficult to approve this without seeing plans. Mr. Perlich said they will get a package together. They need to get through a few hurdles up front. They are waiting on the MPCA to find out what type of plant they will allow. B. Change }ropos .d land use from AG to low/med. density Residential Mayor Freske asked for clarification for low density. Mr. Kirmis said the medium density term would allow triplexes up to 6 dwelling homes. Low density refers to one or 2 dwelling homes. Otsego City Council Meeting of February 12,1996, cont'd. Page 6. CM Heidner thought that maybe in this area, there are places for the location of 5 or 6 larger quad type dwellings. If it would be done correctly, there shouldn't be a problem with that but he was concerned with the developer being able to increasing that number. Mr. Kirmis explained as the process continues, one of the issues will be if higher density is appropriate. CM Heidner motioned to accept the Planning Commission recommendation to amend the Land Use Plan from AG to low density residential use. Seconded by CM Fournier. All in favor. Motion carried. (Discussion occurred between the motion being made and the actual vote) CM Fournier stated the City can redefine as they go along, everything is subject to approval of project. Bob Kirmis said by stipulating low density you are saying you don't want anything less than two units. CM Heidner agreed but with the understanding that as the project goes along, it could always be changed. Mr. Kirmis replied you can change and could address through a PUD. Mayor Freske requested a City Council Workshop. CM Fournier motioned to set Thursday, February 22, 1996, 7 PM, for a City Council Workshop and the City Attorney, City Engineer and City Planner attending for purpose of discussing the issues of a package sewer plant. All in favor. Motion carried. (Discussion occurred between the motion being made and the actual vote) Discussion: Staff is to call Councilmember Ron Black and developer Neil Perlich and inform them of this workshop. Bob Kirmis was asked if there were any questions regarding Item 10.1: The outline of a step by step process for planning and development of the Southwest area of the City by the City Planner and Engineer. They will put together background information for Comprehensive Plan Amendment regarding this area for land availability and financial return on land uses. Basically, investigate some of these issues and get some facts down on paper before pursuing any action. Phyllis Cokley reported the budget included Planner's fees for changing the Comprehensive Plan but none for Engineer's fees. CM Fournier motioned to direct the City Planner to give additional information needed and the estimated cost of assembly of background information and for the City Engineer to give information for a Waste Water Treatment and Water Facilities. This is for the Southwest Corner of the City and North of 94 to 70th Street of the City. Both the Planner and Engineer should prepare an estimate of City of Otsego City Council Meeting of February 12,1996, cont'd. Page 7. costs for the Reports for the next City Council Meeting. Seconded by CM Ackerman. All in favor. Motion carried. 9.1. Review of SF -869 Bill Regarding Feedlot; There was discussion regarding language in a pending Legislative Bill. Andy MacArthur understands the language regarding any setbacks established would also apply for residential built from a Feedlot. CM Heidner said the Bill passed the Senate Environmental Research Committee and is going for a full vote on the Senate Floor. Mayor Freske said he is going to talk to Senator Berg. Mr. MacArthur said he talked to Lynn Hays, Farmers Legal Action, and he said the position of the Association of Townships and Counties was confusing. 8.2_ Update of L.ef-Co regardingAppeal on the Feedlot issue- Mr. ssueMr. MacArthur has met twice with Lef-co's attorney and they have gone over all of the City's documents. The initial hearing won't be for another month. 9.1. Review Feasibility Study for Otsego Creek Project Larry Koshak made revisions to the Feasibility Study and presented the study to the City Council. (attached) The Council and Engineer went over the costs as outlined in the Feasibility Study. Mr. Koshak also talked to the County regarding various methods of handling the levy. The County suggested to handle similar to the fire service levy. Determining the taxing method was determined by parcel size and impervious surface. The levy is adjusted every year. Andy MacArthur said the Statutes says the amount must be an equitable portion and it appears to be equitable and within a range for anyone not to contest. Floyd Goenner asked about the length of levy. Mr. Koshak went over different lengths and costs as outlined in the Study. There was discussion on removing the $6,000 amount designated for Obstruction Removal which could be performed as a Sentence to Serve Project. After discussion the Council felt they should leave this amount in the project cost. Otsego City Council Meeting of February 12, 19%, cont'd. Page 8. CM Heidner questioned Mr. Koshak on the Engineering Fees of $16,942. Mr. Koshak explained that these fees also come from the initial stream study required by the DNR and previous work done before the study was ordered, Floyd Goenner questioned the project's cost and Mr. Koshak offered to provide him with a listing of all the invoices. Phyllis Cokley asked for direction from the City Council as to where will this money come from and how will it be paid for. CM Fournier suggested a bond and also suggested bringing in some professional financial adviser. Phyllis said she is trying to set up a meeting with the EDA and EDAAC to meet some financial advisors. 9.2. MSA 1996 Funding_Review (Possible Workshop date on same) The Council decided to have this added to the Agenda of their February 22, 1996 Workshop meeting. 9 Set Public Works Sub -Committee Meeting Will schedule a meeting for a Thursday. Striping: The City Engineer discussed the streets that needed striping. He needs to respond to the County by February 16, 1996. CM Heidner suggested holding off for one year since lead paint can't be used anymore and give time for the manufacture to improve the paint. CM Fournier motioned that the striping should be done if it has been budgeted for 1996. The roads are 85th Street, from Page Avenue to CSAR 42 and Odean Avenue from CSAH 37 to CSAH 42. Seconded by Ackerman. All in favor. Motion carried. 9.4. Consider Establishing corridor for future County Road (across Larry Koshak reported that the County Engineer's have, in their County Transportation Plan, located a potential County Road from Hennepin County 30 North on Naber Avenue in Frankfort to Nashua Avenue in Otsego. Mr. Koshak recommends a general route be established by working with Frankfort and the County. This is a long term project, however, protecting a corridor should be considered at this time. CM Fournier motioned to support establishing this corridor (from Hennepin County 30 directly north on Naber Avenue in Frankfort to Nashua Avenue in Otsego). Seconded by CM Heidner. All in favor. Motion carried. (Discussion occurred between the motion being made and the actual vote) Discussion: CM Heidner asked if there would be changes to the Comprehensive Plan or just a letter sent to the County in support of this. Mr. Koshak said the letter would be the Otsego City Council Meeting of February 12, 1996, cont'd. Page 9. initial step but eventually someone would sit down with the County Engineer to plan the corridor and then take action to protect the corridor by amending the Comprehensive Plan. This wouldn't happened until next year at the soonest. In the mean time he suggested we watch the one per forty splits. None. CM Heidner motioned to have Kevin Kielb from Hakanson Anderson meet with Pat Sawatzke and Kerry Saxton at Otsego City Hall at a mutual agreed date. Seconded by Mayor Freske. All in favor. Motion carried. (Discussion occurred between the motion being made and the actual vote.) CM Heidner will attend the meeting on February 14 or 15. 10.3. Closed Session for purpose of litigation strategy Since the City Attorney was not in attendance at the time this Item came up in the meeting there was no Closed Session. 10.4_ Any other Council business 10.4.a. Set employee reviews. Mayor Freske stated that Elaine Beatty will do reviews for Judy Hudson and Carol Olson. Dave Chase will do an reviewal for Duane Fielder. Mayor Freske appointed a subcommittee of CM Black and himself to do the reviews for the Department Heads - Elaine Beatty, Phyllis Cokley and Dave Chase. CM Fournier objected. He wants the whole Council involved with the Department Heads. CM Fournier motioned to have the entire City Council do the employee reviews for Elaine Beatty, Dave Chase and Phyllis Cokley. Seconded by CM Ackerman. Voting For: CM Ackerman, CM Fournier, CM Heidner. Voting Against: Mayor Freske Motion carried three (3) to one (1). (Discussion occurred between the motion being made and the actual vote) Discussion: CM Heidner asked about the other employees reviews. Mayor Freske said Dave Chase will review Kenny Shierts and Judy Hudson will do reviews for the Building Supervisors. Otsego City Council Meeting of February 12, 1996, cont'd. Page 10. A brief update of the Sewer Meeting was given. A copy of the minutes along with information from Bonestroo will be passed out to all Councilmembers. This was requested to be on the next City Council's Agenda. 10.4.3 City Hall Facility_ CM Heidner and Judy Hudson will work on the Category Page clarifying some groups. 10-4-b- Subcommittee for }posed Home Extended Business CM Ackerman and CM Heidner were previously appointed. 10.5_ City Clerk's update Elaine Beatty received notice from the County regarding Otsego's Board of Review. CM Heidner motioned to set April 25, 1996, 7 PM for Board of Review. Seconded by CM Ackerman. All in favor. Motion carried. Elaine also suggested a "Legal Seminar" for all of the commissions. This would be similar to the one held directed at planning issues. The Council asked Elaine to check with the League of Cities. She also reported there is a video on "Robert's Rule of Order" available for $48.00. She felt this would contained good information for all commissions. Mayor Freske said he will check on this. Regarding the letter from Rick Wolfsteller, City of Monticello: This letter was sent alerting the City there is a problem with the number of false alarms but not to take any action at this time. Mr. Wolfsteller also said there would be no problem for Otsego to contract with their animal control person. CM Fournier requested staff to check with the Monticello Times on Public Notice pricing. Mayor Freske said he is against this, pointing out that most of Otsego's residents are just fortunate to receive the Elk River Star News free. The City is already paying $10,000 for publishing fees. CM Fournier motioned to approve the Claims List as presented. Seconded by CM Heidner. All in favor. Motion carried. (Discussion occurred between the motion being made and the actual vote) Discussion: CM Heidner asked about the claim for Carol Olson. Phyllis Cokley said this was reimbursement from her cafeteria plan. Otsego City Council Meeting of February 12, 1996, cont'd. Page 11. CM Fournier motioned to adjourn. Seconded by CM Heidner. All in favor. Motion carried. i Mayor Norman F. Freske Attest: Elaine Beatty, City Clerk/z g Administrator 0i, , A , " �-,J Reco a by: J dy Hudson, Deputy Clerk