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HomeMy WebLinkAbout09/21/1994 Council Minutes1 1 1 CLOSED COUNCIL SESSION CITY OF LINO LAKES COUNCIL MINUTES /la -4' SEPTEMBER 21, 1994 DATE TIME STARTED TIME ENDED MEMBERS PRESENT: MEMBERS ABSENT September 21, 1994 6:00 P.M. 7:15 P.M. Reinert, Neal, Kuether, Elliott, Bergeson None Staff members present: City Administrator, Randy Schumacher; Consulting Planner, Al Brixius; City Attorney, Bill Hawkins; Jim Golembeck, Attorney from the League of Minnesota Insurance Trust and Clerk -Treasurer Marilyn Anderson. The purpose of the closed session was to discuss a proposed settlement with the Reshanau Park Estates Homeowner's Association (RPEHA) . Mr. Schumacher noted that staff had been directed to meet with some residents on Reshanau Lake and give them the status of the litigation and get feedback for the City Council. George Lindy and Pat Smith met with Mr. Brixius, Mr. Hawkins and Mr. Schumacher last week. The proposal for a settlement was explained to Mr. Smith and Mr. Lindy. The advantages and disadvantages of the proposal were discussed and issues were outlined. Mr. Lindy then met with seven (7) or eight (8) other lake residents and presented the settlement proposal to them. The result was that the lake residents said that they feel that the City Council is "letting them down". They thought the majority of the court work was completed so why settle now. Mr. Hawkins said in his opinion the case can be settled on the terms that were discussed at the last closed Council session. His impression of the lake residents is that they do not care if there is a boat launch on the outlots. It is no longer a boat launch issue but a personality issue. Two (2) groups of lake residents are fighting and the developer is covering the cost for one group and the City is covering the cost for the other group. Mr. Hawkins said that Mr. Lindy told the lake residents the City's side of the issue and the residents response was, "the City is selling us out". Mr. Brixius explained that the lake residents perceive that the PAGE 1 - CLOSED COUNCIL SESSION SEPTEMBER 21, 1994 RPEHA violated the City ordinances and now the City is going to "buckle under". Emotions are running high. Mayor Reinert asked if anyone had talked to the RPEHA representatives. Mr. Hawkins said no, only their attorney. Mayor Reinert said it is his opinion that a violation occurred. He asked if the boat launch could be removed and then proceed from that point. Mr. Brixius said he felt that the RPEHA would remove the boat launch, however, if they do, they will expect good faith from the City Council. Mr. Hawkins said that the boat launch is no longer an issue with the lake residents. However, if the RPEHA is willing to remove the boat launch, they will want some assurance that they can launch boats on a limited basis. Council Member Bergeson said it appeared to him that the RPEHA wants assurance from the City Council that they will have usage of the outlots including the boat launch. Mr. Hawkins explained that staff must submit a response to the RPEHA's original proposal and that the response must included a boat launch. Mr. Hawkins explained that a closed Planning and Zoning Board meeting has been scheduled for Friday, September 23, 1994 to review the proposed settlement agreement. He explained that the litigation can be settled but there will be a public outcry. Mr. Hawkins also noted that when he met with Mr. Smith and Mr. Lindy, they proposed that when the matter goes before the Planning and Zoning Board and the City Council, conditions be set such as; 1) the boat launch has to be removed, 2) Mr. Schaps cannot participate in the Planning and Zoning process but will be able to sit in the audience, 3) Kerry Ostergren cannot participate in the process, and 4) the City Council must "live by" the Planning and Zoning Board recommendation. Mayor Reinert said he understood condition No. 3 but recommended that all of the other radical persons on both sides of the issue should also be excluded from the process. Council Member Elliott said that if the City Council can save tax payers dollars by participating in a settlement, then the City Council should be able to "take the heat" during the public portion of the process. Council Member Kuether said she did not like her tax dollars paying for this issue. Council Member Bergeson asked how much it would cost to go to court. Mr. Golembeck explained approximately $12,000.00. Mayor Reinert asked how should the City deal with the violation. Mr. Brixius explained that the City has dealt with it, an injunction was requested although it was denied. Mr. Hawkins PAGE 2 1 1 1 1 CLOSED COUNCIL SESSION SEPTEMBER 21, 1994 explained that the City started action and now the City must come up with a reasonable solution as to what is the best use of the property. Mayor Reinert said that the City has been in court because of other ordinance violations. Council Member Kuether said the City has also negotiated other violation disputes. Mayor Reinert asked how the ordinance violation could be corrected. Mr. Golembeck explained that the matter can be corrected by having the RPEHA apply for a PDO zoning for the outlots. Mayor Reinert said that if the City Council says "OK you have violated the City Code but we will allow you to correct the violation by applying for a PDO", it would open the door for other property owners to violate the law and then ask the City Council to accommodate them. Mr. Hawkins explained that the City must allow some reasonable use of the outlots. They are not buildable and the RPEHA request is a reasonable use. Mr. Hawkins said that on the surface it may appear that the City is capitulating, however that is only a perception. Council Member Elliott said she felt that the City is enforcing the City ordinances by requiring that the boat launch be removed prior to their request for a PDO. Council Member Kuether was concerned because this was not handled at the time the final plat was approved. Mr. Brixius gave a brief background on the final plat and read a portion of the minutes. Council Member Kuether noted that the City was given a copy of the association documents and asked if the boat launch was mentioned in those papers. Mr. Hawkins said he reviewed that document and explained what it contained. Council Member Bergeson said he felt that if the RPEHA removed the boat launch and would go through the process to get a PDO and the PDO is approved by the Planning and Zoning Board and the City Council, one group will be satisfied. However if the Planning and Zoning Board denies the PDO and the City Council is on record as saying they will abide by the Planning and Zoning Board recommendation, we will be in court. Mr. Hawkins explained that the RPEHA will not forego their court date. He said it does not make sense to go through the rezoning process if the boat launch will ultimately be denied. Council Member Bergeson noted that there is some talk that the RPEHA is out of energy and money. Mr. Golembeck said he talked to Mr. Gorowski this morning and the association has attempted to assess the members for legal costs. This action did not work, however, in January the RPEHA will have additional money. PAGE 3 /cam - L CLOSED COUNCIL SESSION SEPTEMBER 21, 1994 Council Member Kuether asked if the City asks the RPEHA to go through the process and the rezoning is denied, what does this say to the courts. Mr. Golembeck said that it probably will not have much of an effect. Council Member Bergeson asked what the City's chances are in court. Mr. Golembeck said that nobody knows. He explained that up to now, the judges have been very hard on the City and very sympathetic to the RPEHA. Mr. Golembeck noted that if the matter goes to court and the City loses, the judge could order that a permit be granted. He noted that win or lose, the City will be required to do something. Mr. Hawkins said that he would send the settlement proposal prepared by staff to the RPEHA tomorrow. If the proposal is approved, the matter could go to the Planning and Zoning Board in October for a public hearing and could come to the City Council at the end of October. The matter could be closed. Mr. Brixius explained that once the settlement proposal is released to the RPEHA, the document will become a public document. Mayor Reinert asked each Council Member to give their opinion regarding the settlement document. Council Member Kuether and Elliott said that the City should try to settle the matter. Council Member Bergeson said he was uncomfortable with the undefined term, "some assurance", and felt it could be misinterpreted. He said generally when something comes from the Planning and Zoning Board with a recommendation, a reason is needed to vote against the recommendation. Council Member Bergeson said that there should be a reason not to take the recommendation of the Planning and Zoning Board. Mayor Reinert noted that the Planning and Zoning Board is only a recommending body and they usually give reasons for their recommendations. He said he did not want to vote against the Planning and Zoning Board recommendations. Mayor Reinert felt that the PDO needed to be very explicit. Mr. Brixius said that it would include graphic illustrations, and a contract for development which will be recorded. It will also contain limited monitoring of the rules governing the use of the outlots. Again Mr. Hawkins explained that if the City Council cannot give some assurance that there will be a boat launch, the matter will go to trial. Mayor Reinert said he felt that the RPEHA will not approve the proposal for settlement prepared by staff. Mr. Brixius said he felt that there would be additional negotiation of the terms. Mayor Reinert asked Council Member Bergeson if he was satisfied that the City Council would approve the Planning and Zoning Boards PAGE 4 1 CLOSED COUNCIL SESSION SEPTEMBER 21, 1994 recommendation no matter what it is. Council Member Bergeson said yes, but they need to do their homework. Council Member Neal said he would not support a negotiated settlement. Mr. Hawkins will present the proposal to the RPEHA before it is presented to the Planning and Zoning Board. The meeting adjourned at 7:15 P.M. These minutes were considered, corrected and approved at a regular Council meeting held on June 12, 1995. )(O Marilyn . Anderson, Clerk -Treasurer ----7 Mayor PAGE 5 Vernon F. Reinert,