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07-08-96 CCCITY OF OTSEGO WRIGHT COUNTY, MINNESOTA CITY COUNCIL MEETING 6:30 PM COUNCIL CHAMBERS OTSEGO CITY HALL JULY 8, 1996 1 Mayor Norman F Freske will call meeting to order: Mayor Freske called the July 8, 1996 City Council Meeting to order at 6:30 PM. ROLL CALL: Mayor, Norman F. Freske; Councilmembers; Ron Black, Larry Fournier, Vern Heidner, Suzanne Ackerman. Staff: Larry Koshak, City Engineer; Andrew MacArthur, City Attorney; Bob Kirmis, Assistant City Planner; Elaine Beatty, City Clerk/Zoning Administrator; Phyllis Cokley, Business/Finance Director; Carol Olson, Secretary. 2. Consider Agenda Approval: CM Fournier added discussion of Firearms Ordinance under Agenda Item number 8.3. CM Fournier motioned to adopt Agenda as amended. Seconded by CM Heidner. All in favor. Motion carried. 3. Consider Minutes: 3.1. June 24, 1996 - City Council Minutes CM Heidner motioned to approve. CM Ackerman seconded. All in favor. Motion carried. June 24, 1996 - Closed Meeting for litigation purposes CM Fournier motioned to adopt. CM Heidner seconded. All in favor. Motion carried. 4. Special Presentations: 4.1. Debbie Carron - Re* Official Appreciation Day Declaration: Debbie Carron, Parks and Recreation Commissioner; representing the Park Board, requested that July 13, be marked as an official Appreciation Day and become the first of an annual event. This would be for all residents, volunteers and recognition for the park. Darlene Solberg distributed buttons (1st Annual Otsego Community Appreciation Day Otsego Prairie Park July 13, 1996) The buttons are available for $1.00. CM Black motioned that the City declare July 13 as Community Appreciation Day. Seconded by CM Ackerman. All in favor. Motion carried. 4.2. Tim Smith - for Richard and Patty LeFebvre - Re: Party Room. Tim Smith appeared before the City Council representing Richard & Patty Lefebvre regarding a building addition. Lefebvres are in Commercial/Industrial Zoning. The party house is on their personal homestead and has been there since 1974-1975. Otsego City Council Meeting of July 8, 1996 cont'd Page 2 The addition does include a bathroom and a utility room, but no sleeping quarters. The remodeling is being done for handicap accessibility. Mr. Kirmis - The property is zoned commercial in that district. A single family dwelling is considered a non -conforming use. Concept is to eventually terminate these uses and convert them to whatever the underlying zoning may be. Further investment is discouraged and a public hearing would be necessary for expansion of a non -conforming use. Mayor Freske - handicap accessibility is an issue. Vern Heidner - concerned with bathroom and kitchen type facilities -second dwelling Ron Black - Felt that at such time Mr. & Mrs. Lefebvre no longer reside on the property all residential uses cease. Mr. Kirmis noted that a possible agreement could be made. Andrew Mac Arthur - not to have a commercial use and address second dwelling issue. CM Black motioned staff to work out an agreement. Seconded by CM Fournier. All in favor. Motion carried. 4.3. Ted Fiel&s information on sanitary sewer* A. Resolution Accepting Feasibility Report B. Discussion of Land, Legal and Engineering recommendations and Community Meeting date. Ted Fields, Project Manager for the Waste Water Treatment Plant Study, Bonestroo Rosene Anderlik & Associates -Three things: 1. Formal resolution is needed for MPGA. 2. Payment needed for additional meetings (5hours) 3. Where does study go from here. Ted Fields stated that first the Resolution needed to be addressed. Also he asked for any questions regarding the plan. Mayor Freske stated that the resolution is for adopting the facilities plan containing a recommendation for a joint treatment facility to serve the three communities of Otsego, Dayton, and Frankfort. Larry Fournier questioned title Resolution Adopting Facilities Plan. How does that bind us to the project. Ted Fields - the resolution is essentially saying that you intend to proceed with the project as described in the facility plan, however that doesn't bind or commit you to do that exact project. There are conditions that may come up later changing size or site of the project. The MPCA would like to know that the Otsego City Council is committed to the project. All they would like to have is authorization that we had this discussion tonight and the Council approves submitting it. Otsego City Council Meeting of July 8, 1996 cont'd Page 3 Vern Heidner - concerned with moving to fast right now with annexation proceedings. Not for spending additional money now by sending this to MPCA and not sure that this is the best treatment plant for the City at this time. Mayor Freske - we planned to have a meeting with residents once the completed study was received. Suzanne Ackerman - uncomfortable regarding site right now. Larry Fournier agreed with colleagues to wait and have community information meetings. Get background history, why it is needed, and see how it helps the City. Ted Fields - typically what happens is the plan is submitted with the resolution, there are conditions where the plan is modified slightly. MPCA knows that might happen. In this particular case, there is a chance that the project could be downsized because one of the service areas withdraws. The important part of the facility plan is the recommendation, meaning this is the type of plant we want to build, this is roughly the cost, and this is the service area it will have. If the facility plan along with the funding application were to be submitted approval from MPCA would be needed. In a sense to say this is a project worth funding. If Frankfort was not included in the project there would be about a 5% cost reduction. Cost adjustments to the project would be minor. Vern Heidner - when sewer is put in municipal water would make sense at the same time. At this point in time we need to find out what all the costs are going to be and if there is bonding for water. Ron Black - All we are saying is at this point is that the study has been done, we have received it and now we want their input. Vern Heidner read page 46 of the Wastewater Treatment Facilities Plan under Approval of Facilities Plan. If we are not sure we are going to build this plant, why are we going to submit it to the MPCA. Larry Fournier - Lets put this off till the issue of Frankfort is cleared up. Then look at the report, review it, and readjust figures. Mayor Freske - We all feel we should meet with the residents. Sending the resolution would not stop our meetings. Originally we said we would meet with residents when we received the Wastewater Treatment Plan. We approved the original concept of the plan a year ago now we are changing in the middle of the stream. Ron Black - We have to take this one step at a time. I'm interested in what's good for Otsego. I believe the document should be submitted to the MPCA for their reaction and have that piece of information for the public also. The first question asked will be has the MPCA looked at this. CM Black moved that the resolution be adopted. Seconded by Mayor Freske. Discussion between the motion and the actual vote: Vern Heidner - My understanding is that this was a feasibility study. Why are we treating this different then any feasibility study. Ted Fields - MPCA wants to see the resolution before they start the review process of a plan they want to feel that City Council is committed to moving ahead with a project. Otsego City Council Meeting of July 8, 1996 cont'd Page 4 I don't want you to think that you are committed to numbers and exact costs because those are just the kind of things that get modified after facility plans are submitted. They want to know that Otsego City Council or task force is committed to building a project. Vern Heidner - there is your answer right there. Ron Black - One last comment. This strikes me as an instant replay of the third industrial site fiasco. When it comes time to make a minor decision, we don't support it anymore. If this City Council is committed to the Commercial/Industrial tax base, then we have to move forward. Sending this to the MPCA isn't going to stop us from having community meetings. All it does is move the process forward. It has taken one and a half (1 - 1/2) years to take it this far. 101 will be done this fall. Are we going to sit on our hands and watch the train go by. We've seen an unwillingness to make a commitment and it is a tragic mistake. Vern Heidner- I'm all for commercial development of certain areas. Most wastewater treatment plants are paid for by Res. not Commercial/Industrial users. The brunt of the cost is paid for by connection fees. Larry Fournier - I want the best and most accurate plan we can submit. Mayor Freske - We have a motion and a second. All those in favor vote by saying aye. CM Black motioned to adopt the resolution. Seconded by Mayor Freske. Motion was defeated three to two with CM Black and Mayor Freske voting in favor and CM Heidner, CM Ackerman, CM Fournier voting against adoption. Ted Fields - The letter dated July 2, 1996 requested compensation for an additional five (5) hours. Tom Noyes attended a special meeting for two and a half (2 1/2) hours and then the two and a half (2 1/2) hours for tonight's meeting. These were not included in the scope of basic services. Mayor Freske - I have no objection to charges for the June 17, 1996 meeting. That was an additional meeting. Ron Black - has no objections to the June 17 meeting, but tonight's meeting is a presentation of the plan and I do have a problem with it. CM Black motioned to compensate Bonestroo Rosene Anderlik & Assoc. for annexation meeting (2 1/2 hours). Seconded by CM Fournier. All in favor. Motion carried. Discussion held between the motion and actual vote: Vern Heidner -Someone needs to look at the scope document. Recommended that staff check into it. Ron Black asked what kind of direction does the council want to give to the Sewer Sub- committee. Larry Fournier - I would ask that we have several community information meetings at different times so that gives more residents an opportunity to attend. Meetings that would describe the project, how it originated, and why the city needs the project. Have these meetings once we have more data. (more information regarding Frankfort, and costs for water, etc.) Otsego City Council Meeting of July 8, 1996 cont'd Page 5 Ron Black - the sewer sub -committee has some specific tasks that were assigned regarding law firms, engineering firms, willingness of landowners to enter discussion of sewer project. If the City of Otsego is withdrawing from any further discussion on the sewer project we better notify the other communities. If motion is defeated I would like to know why City Council is hesitant to send this study to St. Paul. Money is already spent. We have an obligation to Dayton and Frankfort. CM Black motioned to inform Dayton and Frankfort that Otsego City Council is withdrawing from this study. Seconded by Mayor Freske. Motion failed tree to two with CM Black and Mayor Freske voting in favor. CM Ackerman, CM Fournier, CM Heidner voting against. Discussion between the motion and the actual vote: Vern Heidner -At this point in time we need to have these public meetings and find out what the residents want and determine that before we hire another Engineering Firm and another legal firm. Holding off is not withdrawing. Ted Fields - In terms of the purpose of the facilities Plan that is not an issue. The MPCA is not going to be concerned about whether water is going to be in the project. There is a schedule concern, Oct. 1,1996 is the date we want everything on the facilities plan into the MPCA and their preliminary approval of it. We want this project to be eligible for funding under the State revolving loan program and another grant program that exists. October one is the deadline for being eligible for construction funds in the next time period. There are some things that need to be done before October first in addition to just this resolution in getting the Facilities Plan approved. The first step is the Resolution. Mayor Freske asked when is the next date. Ted Fields answered every six months. There are ways to appeal that and get some variance in an intermediate time period. It involves more work to do that. The facility plan can take thirty to sixty days to approve. Environmental impact assessment etc. Things need to be done. Last process can only be done when you have finalized a site. 4A. Phyllis Cokley, Finance Director: Consider Resolution Awarding the Sale of $655,000. General Obligation Improvement Bonds, Series 1996A; Fixing Their Form and Specifications, Directing Their Execution and Delivery, and Providing for Their Payment. Phyllis Cokley introduced Mr. Paul Donna, Public Finance Advisor, Springsted. Paul Donna - The Resolution is for consideration authorizing the sale of $655,000 General Obligation Improvement Bonds, Series 1996 A. Proceeds to fund Mississippi Shores, and Island View Estates street improvement projects. Debt service to be paid through special assessments against benefited properties to be filed this fall. Otsego City Council Meeting of July 8, 1996 cont'd Page 6 On June 10, 1996 City Council authorized bonds to be brought to market. Mr. Donna went over the Standard & Poor's bond rating report and bid results on the bond issue. Springsted recommends accepting the bids and award the bonds to Dain Bosworth. CM Black motioned to adopt the resolution awarding the sale of $655,000 General Obligation Improvement Bonds Series 1996A to Dain Bosworth. CM Ackerman seconded. All in favor. Motion carried. 5. OPEN FORUM: Wally Odell - Commended City Council for action taken concerning sewer study. January 24, 1996 the EDA directed the EDAAC to study the feasibility of the sewer project upon the receipt of the feasibility report from the engineering firm. At that time it was indicated that the report would be ready in a two month period. The EDA also asked for financial feasibility of the sewer plant and type of entity that should be adopted for Otsego's participation in the plant as well as other issues related to the project. Since then the sub -committee of the EDAAC has not had a chance to take an in depth look to deal with the charge from the EDA. Now we will have a chance to do that. I would like to point out that this is a most important decision the City has faced. Otsego's commitment to this project is over six million dollars. There are serious concerns that should be addressed. Mayor Freske - For clarification the City Council directed the EDAAC to look at the financial end of the project only and not the study of sewer and how it will be operated. At the last EDAAC meeting an engineer was brought in. Mayor Freske asked the Council what their understanding was of the direction given to the EDAAC regarding the sewer study. Vern Heidner - I felt it was to look at the financial aspects and how it could be paid for and if it financially works in that area. Rod Bengston 14340 89th Street NE Regarding speed limit on Co.37 changed to O'Dean. Law states that you have to have more than a quarter of a mile of one hundred and fifty foot lots. The limit is fifty five (55) and it can be posted. 6. CONSENT AGENDA (Non -controversial items): 6.1. Consider Resolution Declaring the Official Intent of the City of Otsego to Reimburse Certain Expenditures From the Proceeds of Bonds to be Issued by the City 6.2. Consider Setting City Council Workshop dates to review a proposed Capital Improvement Program and the 1997 proposed budget. CM Black motioned to accept Consent Agenda. CM Ackerman seconded. All in favor. Motion carried. Otsego City Council Meeting of July 8, 1996 cont'd Page 7 7.BOB KIRMIS, ASST. CITY PLANNER• 7.1. Paul Levenson and Jerome M and Lynn R Grote request for the following: I. A Comprehensive Plan Amendment to the land use plan from Agricultural to Low Density Residential 2. Rezoning from A-1 to R-3 Mr. Kirmis - went over NAC report regarding request for Comprehensive Plan Amendment and Rezoning from A-1 to R-3. The Planning Commission voiced concerns of the request being premature in nature and that the land does not currently lie within a sanitary sewer service district. Should the Council approve this NAC recommended a commitment to include the land in an area where sanitary sewer service would be provided. The Planning Commission on a split vote recommended a denial of the request as premature development. Paul Levenson - This area isn't agricultural in nature. Started out as five acre lots. The division of the property by Mn/DOT makes it more feasible to have large lot residential. This is what the area is best suited for and it falls into setback requirements. One acre minimum is what we are looking for. My intention is to centrally locate one residence on just under two acres. Mr. Kirmis - the intent of the urban service area boundary is to identify areas where further intensity of development and increased services are appropriate. The ideal would be to establish immediate and urban areas then amend Land Use Plan. Staff recommends establishing areas for sanitary sewer and land use. CM Black motioned to adopt the Planning Commissions recommendation to deny request. CM Heidner seconded. CM Black, CM Heidner, CM Ackerman voted in favor with Mayor Freske and CM Fournier opposed. Motion carried to adopt Planning Commissions recommendation to deny the request. 7.2. Discussion of Sign Ordinance and possible changes to same Mr. Kirmis - Regarding Memo dated 6-24-96, the City had directed NAC to examine the requirements of neighboring city sign regulations. Staff feels the City's freestanding business sign requirements are reasonable and are in line with most area communities. NAC could support an amendment to increase the current 20 foot height requirement standard to maximum building height imposed in applicable zoning district. CM Fournier motioned to send to Planning Commission for review and comment. CM Ackerman seconded. All in favor. Motion carried. Discussion held between motion and the actual vote: Vern Heidner - would like input from Planning Commission. Larry Fournier - would like to hear what their comments are about business identification signs only. Mayor Freske - for clarification, this is along the I-94 corridor not other parts of the City. None Otsego City Council Meeting of July 8, 1996 cont'd Page 8 8. ANDY MAC ARTHUR, CITY ATTORNEY - 8.1. Discussion and update of John L.eFebvre easement final agreement Mr. MacArthur - we needed to move ahead for bike trail federal ISTEA SP217-090-01. He and Mr. Koshak had discussions with Mn/DOT regarding July 1, 1996 deadline. Road certificate #1, follows the federal guide lines for relocation act. Property needed to be acquired and recorded by July 1, 1996. Mr. Tardy agreed to accept road certificate #2, which means that property negotiations are on going. Mr. Lefebvre signed the letter of intent. Appraisal of property is being done per state and federal guidelines. Mr. MacArthur and Mr. Koshak will proceed with finalizing these transactions within two weeks to close the deal. Vern Heidner - would this then take care of easement issue. Mr. MacArthur - If the city sells the property, the easement ceases. John Lefebvre wants access to property. (see attached) Larry Fournier - for clarification - If we didn't acquire the land, what would we have lost in grant money. Mr. Koshak - answered one hundred and eighty thousand dollars. ($180,000.00) That is part of the project cost and we would have had to have a surveyed description of property anyway. Plans in by Septemberl, so project is ready to go, bids taken late fall so the project can be accomplished in 1997. 8.2. L.EFCO update (Closed Meeting) (See Item #10.6 ) 8.3. Any other Legal Business Amended agenda item - Firearms Ordinance Larry Fournier - call from John Lenz (northwest corner) requesting to be taken out of the no discharge zone. Ron Black stated that the public needs to have some notice that this sort of request is being considered. Also there should be something in writing on file. CM Black motioned to have Firearms Ordinance item at July 22, 1996 City Council Meeting. CM Ackerman seconded. All in favor. Motion carried. 9. Larry Koshak, City En-* r: 9.1. Update on currentproj .r se A. Mississippi Shores (Overlay) Mr. Koshak went over project update on Mississippi Shores. The overlay portion is completed and the work by the contractors was excellent. B. Island View Estates (Bituminous Project) Island View Estates is forty per cent (40%) completed. Pipe culverts have been installed. Subgrade corrections and preparations have been completed on 97th Street, Kalenda Ave. and Kahler Ave. (from CSAH39 to south of 99th Street) People have been very patient. Recent rains have slowed the project. Looking at gravel and top soil in two weeks. Otsego City Council Meeting of July 8, 199t cont'd Page 9 9.2. Any other Engineering Business or updates Mr. Koshak stated that the developers agreement with LinBar will be completed tomorrow. Get easement required to construct small pond and contractor in there to finish work. Have talked to the Kolles and basically agreed to conditions. Rivers Glen, George Van Tatenhove Developers Agreement is also tomorrow. Sorenson Ridge and Heritage Plains are paved ready in a week or two to open up. Larry Koshak - prepairing a feasibility report for 85th Street and the stormwater drainage area. It is a large project and recommends having a workshop when 80% of report is completed. (first part of August) Mr. Koshak is also working with Phyllis Cokley, on Public Works budget. 10. COUNCIL ITEMS - 10 -1. T .M10.1. Consider Settlement Agreement with Frankfort/St Michael/Albertville Mayor Freske stated that the City of Albertville met Monday night approved an agreement and the City St. Michael and the Township of Frankfort have met tonight and the signed agreement was then brought to Otsego. The Mayor thanked the sub -committee for a good job and asked for their comments. Larry Fournier - The sub -committee had to renagotiate to reach an agreement. Feel we got the best agreement that we could. The borders will put all annexation issues to rest. We gained more than we gave up in land size and residents and we improved our tax base. Recommended that City Council approve the agreement. Vern Heidner - We gained more territory and the people that wanted to stay in Otsego will remain in Otsego and those wanting to leave got to leave. Felt it was an exceptible agreement. Mayor Freske - Satisfied with tax dollars and hoped it would finalize annexation requests. CM Heidner motioned the Mayor sign the settlement agreement with St. Michael, Albertville and Otsego. CM Ackerman Seconded. CM Fournier, Mayor Freske voted in favor. CM Black opposed. Motion carried four to one. Discussion between the motion and the actual vote. Richard Nichols, Planning Commissioner - questioned the exhibit. Ron Black - This is not the exhibit that is attached to agreement. Elaine Beatty went over map and explained the portion that Albertville would get and also what Otsego would get. There was a typographical area by our attorney that was changed to the right description and initialed by our attorney. Ron Black - Two points that I would like to make. One - I object strenuously, this piece of paper is not the same as those attached to document. Two - The public has had absolutely no input into this and for those reasons I can not support this agreement. Otsego City Council Meeting of July 8, 1996 cont'd Page 10 Larry Fournier explained that the residents brought the petition in and he viewed that as public input. Also he asked if our attorney Jerry VonKorff agreed with the agreement. As I see it the agreement is correct. Vern Heidner stated that at the last meeting we were prepared to give Albertville the Triangle. Asked how that changed. Larry Fournier explained that Elaine Beatty, Suzanne Ackerman and himself went to a meeting called by St. Michael. They said they would take the triangle, but wanted those petitioning too. Elaine Beatty - we came to the table with what the Otsego City Council had decided on. They said they absolutely could not agree to that. They felt they had to have where the petitions were to the north. In trying to get this accomplished, we told them that if they were to take that area, we could not give up all of the triangle. They also wanted the tree farm and we said no, as that is our access to the freeway. Therefore we negotiated. Vern Heidner - added that part of the agreement was to stop annexations. 10.2. Consider joining Minnesota Chamber of Commerce Mayor Freske read information regarding joining the Minnesota Chamber of Commerce and asked for the wish of the Council. Vern Heidner stated that it appeared that it would benefit our businesses the most and businesses can join if they wish. CM Heidner motioned to decline joining the Minnesota Chamber of Commerce at this time. CM Ackerman seconded. All in favor. Motion carried. 10.3. Any other Council Business A. Set date for Feedlot Ordinance Workshop Meeting date is set for July 23, 1996 at 6:30 CM Fournier motioned to set Tuesday, July 23, 1996 at 6:30 as date for the Feedlot Ordinance Workshop Meeting. CM Black seconded. All in favor. Motion carried. 10.4. City Clerk's Update Nothing. 10.5. Consider Claims List for Approval CM Black motioned to approve claims list. CM Heidner seconded. All in favor. Motion carried. Otsego City Council Meeting of July 8, 1996 cont'd Page 11 10.6. L.EFCO (Closed Meeting see 8.2 above) Five minute break - Closed Meeting regarding Lefco 10.7 Adjourn by 10:00 PM. Regular City Council Meeting Adjourned at 8:50 PM. VAAA4Mayo , an reske Atte v Elaine Beatty, City Clerk/Zoning Admin's ator Recorded by: Carol A. Olson, Secretary City Seal