Regular Meeting No. 3 – February 4, 2002

No one wished to be heard during the Open Comment Period.

President Hunziker acknowledged the deaths of Ali Hazama, former Mayor Chuck Hazama’s wife, and James Powers, former Councilmember.

Wishing to be heard was Paul Dahl. Mr. Dahl will be running for Congress in the First District. He said that if elected, he will seek federal funding for a DM&E bypass around the City of Rochester.

President John Hunziker called the meeting to order at 7:00 P.M. with the following members present: Councilmembers Mack Evans, Dennis Hanson, Marcia Marcoux, Jean McConnell, David Senjem, Walter Stobaugh. Absent: None.

Councilmember Marcoux left the meeting.

Councilmembers Senjem moved, Stobaugh seconded, to direct staff to prepare the necessary agreements with the developer of the Thein Estate property for the extension of sanitary sewer located in the N1/2, Section 8 Marion Township. Ayes (6), Nays (0). Motion carried.

Councilmembers Hanson moved, Evans seconded, to approve the following consent agenda items.

Approved the minutes of the January 23, 2002, council meeting.

Approved the following licenses and miscellaneous activities:

John Adams PTSA – Bingo – March 15, 2002 (requested waiver of 30-day waiting period)

National Regap Network, Inc. – Raffle at Collins Feed & Seed Center – February 26, 2002 (requested waiver of 30-day waiting period)

St. John Church & School – Raffle – May 10, 2002 (requested waiver of 30-day waiting period)

Rochester Archery Club – Raffle at Graham Arena – March 30, 2002 (requested waiver of 30-day waiting period)

Walleye Searchers of Minnesota, Inc. – Raffle at Elks Lodge – March 18, 2002

New Life Worship Center – Run for Veterans – May 18, 2002

Med-City Marathon – Road Race for Conoco Kids Classic – May 26, 2002

Adopted Resolution No. 062-02 approving the contract dated November 16, 2001, between the City of Rochester on behalf of Swing Street and the Grand Lodge of Minnesota.

Adopted Resolution No. 063-02 amending the River’s Edge Purchase Agreement to facilitate construction of the project in the 1300 block of North Broadway as follows:

Amend Paragraph 4 to delete the reference to the Minnesota Housing Finance Agency financing commitment, and

Amend Paragraph 7 to read…"Buyer shall begin construction of the rental housing project by no later than July 1, 2002, and shall complete construction within one year".

Approved Accounts Payable in the amount of $20,176,333.28.

Adopted Resolution No. 064-02 approving the reorganization of the Park and Recreation Department combining seven divisions into four divisions.

Adopted Resolution No. 065-02 approving the TH63/North Willow Creek Layout Plan as submitted by the Minnesota Commissioner of Transportation and approval to enter into a Professional Services Agreement with Yaggy Colby Associates to revise the Official Street Map No. 12 to be consistent with the adopted plan.

See at end of D Items.

Adopted Resolution No. 066-02 accepting the periodic structural engineering condition survey report of the Civic Center and 3^rd Street Ramps prepared by Buildings Consultant Group and authorize the execution of a Professional Services Agreement with BCG of Minneapolis for detailed construction plans and specifications and perform project inspections for the recommended maintenance and modifications.

Approved the City assuming responsibility for four decorative pedestrian street lights on the south side of 4^th Street S.E., immediately east of Broadway.

See at end of D Items.

Adopted Resolution No. 067-02 authorizing execution of a City/Owner Contract between Guyer’s Builders Express and SL Contracting for Project No. J-9874 "Storm Sewer Relocation to Serve Guyer’s Builders Express (Lot 1, Block 2, Fred Schuster Industrial Park)".

Adopted Resolution No. 068-02 accepting voluntary participation by Bishop Properties for the proposed Southridge Subdivision in the City’s Regional Storm Water Management Plan.

Adopted Resolution No. 069-02 accepting voluntary participation by Christ Community Church of the Christian and Missionary Alliance property in the City’s Regional Storm Water Management Plan.

Adopted Resolution No. 070-02 approving execution of a City/Owner Contract with B & H Development and Friedrich Construction for Project No. J-9810 "Basic Construction in Circle 19 Plaza Second Subdivision".

Adopted Resolution No. 071-02 accepting the Feasibility Report and setting a Project Hearing for Project No. M-10 (J-9750) "Sanitary Sewer and Watermain Extension to Serve the Rose Haven Subdivision Area".

Adopted Resolution No. 072-02 accepting the Feasibility Report and setting a Project Hearing for Project No. M1-06 (J-9793) "Sanitary Sewer and Watermain Extension to Serve the Sunnydale Subdivision Area".

Ayes (6), Nays (0). Motion carried.

Terry Adkins, City Attorney, stated that the City staff efforts over the past four years to negotiate with the DM&E for a crossing permit for 16^th Avenue N.W. goes against everything that the railroad president mentioned last week in the newspaper when he said the that the railroad always works out with cities crossings. It was quoted that the president said "I don’t understand why there wasn’t a real attempt to work it out but we are going to defend it and defend it vigorously". Mr. Adkins noted that at least for four years City staff has been working with the railroad to reach an agreement.

Councilmember McConnell asked if we lost the monies that we have invested in the 16^th Avenue N.W. project to date. Richard Freese, Public Works Director, said that over the past four years DM&E has provided the information that the City needed including the cost of the permit. They have just recently indicated that they would be going to litigation to settle the matter. The State allows for the Commissioner of Transportation to conduct a hearing in the matter. MnDOT has been working with the City on the 16^th Avenue access.

Councilmembers McConnell moved, Stobaugh seconded, to adopt Resolution No. 073-02 authorizing submission of a petition, on behalf of the City, to MnDOT Commissioner of Transportation requesting that the Commissioner notice and conduct a hearing and issue an order to determine this matter of the 16^th Avenue N.W. railroad crossing of the DM&E railroad pursuant to State Statute and Minnesota Rules. Discussion.

Councilmember Senjem asked if MnDOT would be drawn into a partnership with the City and maybe even a lawsuit. Terry Adkins said that if MnDOT grants the permit, such a scenario would be possible.

Ayes (6), Nays (0). Motion carried.

Gary Neumann, Assistant City Administrator, suggested two changes in the suggested priorities for the TH 52 Parkway. He suggested that item no. 7 (2" Retaining Wall Treatment) and item no. 8 (Perimeter Fencing) be reversed. He said that given the cost constraints on the project it would be easier to include the perimeter fencing rather than the retaining wall treatment. Mr. Neumann also recommended that no action be taken on requested action item no. 6 because at this time the City is still in negotiations as to what are the City’s obligations and what items will be paid for.

Adopted Resolution No. 074-02 adopting the ADRC Executive Summary dated October 2001 and endorse the incorporation of the design concepts presented in the Executive Summary as the framework for the Aesthetic Design Guide for the TH52 project; adopting the TH52 Rochester Aesthetic Design Guide incorporating the ADRC Executive Summary; requesting that MnDOT provide for a high level of Quality Control and Quality Assurance in the TH52 Design Build Project RFP/Contract Documents, etc.; endorsing a separate design – bid- build approach to the implementation of the recommended landscape elements of the TH 52 Project; and adopting the prioritized list of Aesthetic Design Elements. Discussion.

Councilmember Evans noted that he would be voting against the resolution. He said that he is concerned about where the monies will be found to fund the

maintenance fund for the aesthetic projects.

Ayes (5), Nays (1). Motion carried. Councilmember Evans voted nay.

A Hearing on Zoning of 55^th Street Estates Subdivision – Special District and R-1.

Wishing to be heard was Marla Berg, 5900 Manor Court N.W. She noted that the neighborhood agrees with the staff recommendations for the project. One of the concerns that she did express was "R-1 creep"; i.e., that one or more lots are R-1 and the remaining lots in the special district. At some point in the future special district lots could request R-1. The neighbors are not in favor of the "creep" zoning aspect. In the special district, there could be a one-time lot split if someone desired. She said that the neighbors were in approval with the Holden and Theobald properties being zoned R-1 as they bordered R-1 property.

Wishing to be heard was DeLaine Holden, 5908 Chateau Drive. Mr. Holden said he would like his property rezoned as R-1; it borders the North Park Subdivision. He also stated that all persons should be able to choose how they wanted their individual properties zoned.

Wishing to be heard was Isabel Theobald, 3416 Villa Road N.W. She noted that at the Planning and Zoning meeting, it was agreed that the Holden and Theobald properties would remain at R-1.

Wishing to be heard was Ron Amdahl, 5808 Manor Court N.W. Mr. Amdahl requested that his lot be R-1 designation because of the unusual nature of the configuration of the lot. He noted that he is bordered on three sides of this property by roads. Mr. Amdahl would like to retain the corner of the property where his house sits and the opposite corner where a woodshop has been constructed. His plan would be to divide the remaining lot into two additional lots to sell. He asked that approval be given because just one additional lot would not pay for the cost of the city utilities that may be added to his property at a future date.

Richard Freese, Public Works Director, noted that Mr. Amdahl, if he signs an agreement under the Water Quality Program, would never pay more than $25,000 for utilities around his entire lot regardless of the front footage of the lot. If the lot is

split, the new owner would pay additional monies under the program but Mr. Amdahl would not be responsible for those charges.

Wishing to be heard was Bob Ronningen, 5617 Villa Road N.W. Mr. Ronningen noted that he bought his property 15 years ago to have a large lot. He said that he could live with one split permitted under the special district designation but, with the exception of the Holden and Theobald properties as R-1, he did not want the possibility of a R-1 domino effect.

Wishing to be heard was Don Koster, 5810 Manor Court N.W. Mr. Koster said that the idea of the special district was not about money but about preserving the neighborhood. He said that his family moved to the area to have a large lot with minimal and slow traffic to allow for the safety of his family. He also noted that 21 out of 25 persons chose the special district.

Wishing to be heard was Linda Fess, 5809 Chateau Road N.W. She noted agreement with the last two speakers saying that they wished to remain as large lots.

Wishing to be heard was Darold Baumgard, 6000 Countryview Court N.W., wanting to maintain the current large lots in the special district.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Don Amdahl, 5808 Manor Court N.W., told the Council again that he would not be able to survive if he was allowed only one lot to be split from his property and asked that they make his property R-1.

Mr. Freese again noted to Mr. Amdahl that the maximum that he would pay for utilities to his entire property would be $25,000. This applies to all existing, not new, lots. This same criteria would apply to all homeowners in the special district. It was also pointed out that because a few of the lots are sloped, those owners probably could not split their property at all.

Councilmembers Senjem moved, McConnell seconded, to approve the 55^th Street Estates Special District with the staff recommendations and instructed the City Attorney to prepare the required ordinance for adoption. Ayes (6), Nays (0). Motion carried.

A Hearing on Land Use Plan Amendment #01-07 by RC Properties to amend the land use plan designation from low density residential to medium density residential on property located west of St. Bridge Road S.E., east of TH 63 and south of the future 48^th Street S.E.

Wishing to be heard was Bill Anderson, Yaggy-Colby, representing the developer. Mr. Anderson was available for questions from the Council.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmembers Hanson moved, Evans seconded, to adopt Resolution No. 075-02 approving Land Use Plan Amendment #01-07 by RC Properties. Ayes (6), Nays (0). Motion carried.

Councilmember Hanson left the meeting.

A Hearing on Zoning District Amendment #01-17 by RC Properties to amend the zoning district from R-2 to R-3 on property located west of St. Bridge Road S.E., east of TH 63 and south of the future 48^th Street S.E.

Having no one wishing to be heard, President Hunziker closed the hearing.

Councilmembers Stobaugh moved, Evans seconded, to approve Zoning District Amendment #01-17 by RC Properties and instructed the City Attorney to prepare the required ordinance for adoption. Ayes (5), Nays (0). Motion carried.

Councilmember Hanson returned.

A Hearing on General Development Plan #169 by RC Properties on property located west of St. Bridge Road S.E., east of TH 63 and south of the future 48^th Street S.E.

Wishing to be heard was Bill Anderson, Yaggy-Colby Associates, representing the developer. He noted agreement with the conditions but asked to make comments on item #7 on the Environmental Assessment Worksheet (EAW). He said that the adjacent property to the north will be commercial both having an EAW requirement. The project bringing sewer to the discussed parcel will be required to have an EAW as well because of the capacity of the sewer. Since the parcel in discussion will have its own access from St. Bridget’s Road, the developers do not believe another EAW is warranted. They are asking that the condition be waived.

Mitzi Baker, Planning Department, said that an EAW will be required under State rules. She said that the GDP would be viewed as a connection action that would require an EAW to be completed. Ms. Baker said that when an overall development area is taken as a plan for development and then separate them into separate general development plans that cannot be a means for bypassing an EAW.

Terry Adkins, City Attorney, suggested that condition #7 be amended by adding the words"unless the Environmental Quality Board indicates in writing that an EAW is not required for this property". Bill Anderson from Yaggy-Colby Associates said that an amendment would be acceptable.

Wishing to be heard was Ken Boyer, 5300 TH63 South. Mr. Boyer said that he owns property adjoining the highway to the south. The property owners of the development have discussed moving the roadway coming into his property to the east which would make it very difficult to get to his house because of a deep ravine. He asked if the proposed north/south road is to be extended. To move his

driveway to the east would required approximately $25,000 to build a roadway plus take down a barn and shed.

Bill Anderson, Yaggy-Colby Associates, said that the proposed road was to provide access to the property to the east as well as the north and allow for future construction and development.

It was noted that Mr. Boyer will need to be granted access and compensation for loss of access by TH63 at the time of reconstruction of the TH63 project.

Wishing to be heard was Rick Lane, owner of Cycle City next to TH63. He noted his entrance was to the south along the frontage road. The proposed north-south roadway would come out close to his property.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmember Hanson moved, McConnell seconded, to approve General Development Plan #169 by RC Properties with seven conditions and with the added condition on #7 that an EAW would be required unless the Environmental Quality Board indicates in writing that an EAW is not required for this property knowning that Mr. Boyer will be compensated by MnDOT for access to his property and instructed the City Attorney to prepare Findings of Fact, Conclusions of Law, and Order. Discussion.

Councilmembers Senjem moved, Stobaugh seconded, to reopen the hearing and continue the meeting to the next Council meeting. Ayes (3), Nays (3). Motion failed. Councilmembers Evans, Hanson and McConnell voted nay.

The question was called on the original motion. Ayes (4), Nays (2). Motion carried. Councilmembers Senjem and Stobaugh voted nay.

A Hearing on Zoning District Amendment #01-18 by Arcon Development to rezone from R-1 to R-2 on property located along the west side of 18^th Avenue N.W., north of the Volunteers of America Development and Hunter Hills and east of 24^th Avenue N.W.

Wishing to be heard was Bill Anderson, Yaggy-Colby Associates, representing the developer. He noted agreement with the staff comments.

Wishing to be heard was Larry Frank, Arcon Development. He stated that the Volunteers of America were not notified of the neighborhood meeting in error but that they showed up to voice their concerns. He noted that single family homes will be on the west side of the development with Townhomes on the east.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmembers Senjem moved, Stobaugh seconded, to approve Zoning District Amendment #01-18 by Arcon Development with the staff findings and instructed the

City Attorney to prepare the required ordinance for adoption. Ayes (6), Nays (0). Motion carried.

A Hearing on General Development Plan #170 by Arcon Development to be known as the "Shih Property" located along the west side of 18^th Avenue N.W., north of the Volunteers of America Development and Hunter Hills and east of 24^th Avenue N.W.

Wishing to be heard was Bill Anderson, Yaggy-Colby, representing the developer and available for questions from the Council.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmembers McConnell moved, Evans seconded, to approve General Development Plan #170 by Arcon Development to be known as the "Shih Property" with seven conditions. Ayes (6), Nays (0). Motion carried.

A Hearing on Zoning District Amendment #01-19 by Freedom Development and Consulting, LLC to zone land from the H district to the R-2 district located east of 40^th Avenue S.E., south of Highway 14 East.

Wishing to be heard was Dave Bell, Freedom Development and Consulting. Mr. Bell’s comments concerned Item E-8 as well. He noted that in meeting with MnDOT, no second access to the north onto Highway 14 East will be permitted by the Cocker property. MnDOT will be doing away with the secondary road that now exists in the future; it is also where the roadway goes down from four lanes to two lanes and the traffic becomes greater. Mr. Bell asked about condition #4 concerning 1200 car trips. The entire 40-subdivision has 1410 car trips maximum. Without the second exit they will be short on the car trips. In the future, an exit will be to the east. A cul-de-sac will be near the Ganske and Smith properties but the road could be extended to the south for extended development. The stormwater runoff has been a concern. The intent has been to do a regional pond for drainage. Water running from this subdivision flows into the township properties; i.e., liability concerns.

Wishing to be heard was Marv Sawyer, Rochester. Mr. Sawyer is currently purchasing property north of Ridgeview Estates. He asked if access can be gained through this subdivision since MnDOT will probably not grant direct access to Highway 14 East. He was asked to meet with Public Works and Planning Staff to further clarification on this point.

Wishing to be heard was Connie Smith, 4214 Eastwood Road S.E. She was concerned with the water retention and drainage question. She noted that they are the lowest point. Ms. Smith also asked for a more definite date on the development of Eastwood Road; she was concerned with the school buses coming down the road with ice and snow present.

Wishing to be heard was Jim Baier, 2620 Brookwood Court S.E., Eyota. Mr. Baier is the newest member of the Marion Township Board. He said that his purpose of

attending was to keep communication lines open between the township and the city.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmembers Hanson moved, Stobaugh seconded, to approve Zoning District Amendment #01-19 by Freedom Development and Consulting, LLC and instructed the City Attorney to prepare the required ordinance for adoption. Ayes (6), Nays (0). Motion carried.

A Hearing on General Development Plan #173 by Freedom Development and Consulting, LLC to be known as Ridgewood and Zoning District Amendment #01-19 located east of 40^th Avenue S.E., south of Highway 14 East.

Wishing to be heard was Dave Bell, Freedom Development. Mr. Bell noted agreement with the recommended conditions.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmembers Evans moved, Stobaugh seconded, to approve General Development Plan #173 by Freedom Development and Consulting, LLC with eight conditions. Ayes (6), Nays (0). Motion carried.

A Hearing on Preliminary Plat #01-52 by Payne Company to be known as Century Hills Sixth located east of Century Hills Drive N.E., south of 21^st Street N.E. and north of Oakview Drive N.E. and approval of a Design Modification.

Wishing to be heard was Bill Anderson, Yaggy-Colby Associates. He noted agreement with the conditions. He said that condition #1B would be eliminated if the Design Modification is approved because it is the mid-block connection. In answer to a question about the condition of the haul road, Mr. Anderson said that it is gravel now and would stay that way because the property on one side of the road is not Payne property. If the property is sold, the water line could proceed; a sanitary sewer line would need to be adjusted before the road can be built.

The Council expressed concern is that the road is not maintained in any type of travelable condition.

Richard Freese, Public Works Director, said that the neighbors were under the impression that the haul road would be developed rather than a temporary road. It was provided to meet the intent of the ordinance as a secondary access primarily for the convenience of the property owners to the north so that all the construction traffic would use it instead of the subdivision road. Mr. Freese suggested that perhaps the Council revise the conditions to improve the purpose of the road and make it a condition of the approval of the preliminary plat.

Having no one further wishing to be heard, President Hunziker closed the hearing.

Councilmembers Evans moved, Stobaugh seconded, to reopen the hearing and continue to February 20, 2002, to consider the condition "the existing secondary access must be improved to an all-weather road condition and maintained to a public road standard." Discussion.

Councilmember Evans withdrew his motion to continue, Stobaugh second withdrawn.

Councilmembers Evans moved, Stobaugh seconded, to approve Preliminary Plat #01-52 by Payne Company to be known as Century Hills Sixth with three conditions and adding condition #4 to state "the existing secondary access must be improved to an all-weather road condition and maintained to a public road standard", approving the Design Modification and instructed the City Attorney to prepare Findings of Fact, Conclusions of Law, and Order. Ayes (6), Nays (0). Motion carried.

An Ordinance Creating and Enacting Chapter 64G, and Amending and Reenacting Section 60.327 of the Rochester Code of Ordinances, Relating to the Establishment of the 55^th Street Estates Special District, was given a first reading.

An Ordinance Rezoning Certain Property From the R-2 District to the R-3 District, and Amending Ordinance No. 2785, Known as the Zoning Ordinance and Land Development Manual of the City of Rochester, Minnesota, was given a first reading. (West of St. Bridget Road SE, East of Highway 63, South of the future 48^th Street SE)

An Ordinance Rezoning Certain Property From the R-1 District to the R-2 District, and Amending Ordinance No. 2785, Known as the Zoning Ordinance and Land Development Manual of the City of Rochester, Minnesota, was given a first reading. (West side of 18^th Avenue NW, North of Volunteers of America Development and Hunter Hills, East of 24^th Avenue NW)

An Ordinance Rezoning Certain Property From the H District to the R-2 District, and Amending Ordinance No. 2785, Known as the Zoning Ordinance and Land Development Manual of the City of Rochester, Minnesota, was given a first reading. (East of 40^th Avenue SE, South of Highway 14)

An Ordinance Rezoning Certain Property From the R-1 District to the R-1X District, and Amending Ordinance No. 2785, Known as the Zoning Ordinance and Land Development Manual of the City of Rochester, Minnesota, was given a second reading. Councilmembers Senjem moved, Stobaugh seconded, to adopt the Ordinance as read. Ayes (6), Nays (0). Motion carried. (West of Woodland Drive SW, north of Salem Road SW, south of Baihly Woodland 7^th Subdivision, Baihly Hills Drive SW and Bell Oaks Lane SW)

An Ordinance Annexing to the City of Rochester Approximately 41.93 Acres of Land Located In a Part of the East Half of the Southwest Quarter of Section 4, Township 106 North, Range 13 West, Olmsted County, Minnesota, was given a second reading. Councilmembers Stobaugh moved, Evans seconded, to adopt the Ordinance as read. Ayes (6), Nays (0). Motion carried. (south of Highway 14, east of 40^th Avenue SE and the Valley Side Estates Development)

Having no further business, Councilmembers Senjem moved, Hanson seconded, to adjourn the meeting. Ayes (6), Nays (0). Motion carried.

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City Clerk