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10/07/1997 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING Tuesday October 7, 1997 5:45 p.m. Municipal Center Lunchroom I. ROLL CALL & ADOPTION OF AGENDA II. VISITORS TO BE HEARD III. DISCUSS PLACEMENT OF BUS BENCHES ON PUBLIC BOULEVARDS IV. EXECUTIVE SESSION V. OTHER BUSINESS VI. ADJOURNMENT MEMO — city of eagan TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: OCTOBER 3,1997 &SUBJECT: SPECIAL CITY COUNCIL MEETING/OCTOBER 7,1997 A Special City Council meeting was scheduled for Tuesday, October 7, 1997 at 5:45 p.m. in the Municipal Center lunchroom. The purpose of the meeting is twofold: 1) discuss placement of bus benches on public boulevards and 2) hold an executive session for the purpose of reviewing pending litigation. A light dinner will be available. Placement of Bus Benches on Public Boulevards At the April 1, 1997 Special City Council meeting, the City Administrator was given direction to review bus bench policies in other communities and the draft ordinance of the MVTA and report back to the City Council at a future work session. Location, maintenance and advertising are the main issues that were stated by the City Administrator at that work session regarding bus benches. Mayor Egan asked staff to review the legislative authority relating to First Amendment rights, health and safety and governance of setbacks as a part of the bus bench policy review. This item was considered for the fall docket at the goals meeting held with the City Council during June. Enclosed on page _.3 is a copy of the minutes from the April 1 Special City Council meeting regarding the bus bench policy discussion. Also enclosed on pages 4 through is a copy of a memo from City Planner Tyree that includes her research as requested y the City Council. The City Attorney will be present for this discussion ' and can provide input relative to Mayor Egan's questions concerning legislative authority related to First Amendment rights, health and safety and governance of setbacks. ACTION TO BE CONSIDERED: To provide direction to the City Administrator regarding: 1) a final policy and appropriate ordinance revision to allow for bus benches on public boulevards with certain conditions or 2) the removal of bus benches from boulevard properties. Before direction is ratified by the City Council. it would be appropriate that staff meet with the bus bench companies to share the intended public policy regarding bus benches on public boulevards. Executive Session The City Council will adjourn from special workshop into executive session for the purpose of reviewing matters of pending litigation with the City Attorney. Enclosed without page number is a copy of a memorandum from the City Attorney explaining the Commissioners' award on the City of Eagan vs Carl Richard Olson condemnation. As a reminder. the Olson property is located north and adjacent to the Eagan Promenade Shopping Center. Other Business There are no other items for consideration. /S! Thomas L. Hedges City Administrator Special City Council Meeting Minutes April 1,1997/Page 2 BUS 'BENCH POLICY 00101 City Administrator Hedges stated that a new company, National Courtesy Bench, has recently placed bus benches along various collector roads throughout the community. He stated that some members of the City Council and staff have received complaints about the apparent proliferation of bus benches and have expressed issues ranging from the advertising that occurs on the bunches, the location of benches which Is often misleading to the public. He stated that residents assume that where a bus bench exists there Is a bus stop which Is not always the case. The City Administrator stated that staff is looking for direction as to whether an ordinance should be given consideration for the regulation of bus benches as It pertains to location, maintenance and advertising. Audrey Schwartz stated that U.S. Bench Company first placed benches in the City at locations where there were no busses. She stated that for the most part that company has relocated the benches and cooperates with the MVTA for advertising their bus services. City Councilmember Biomquist suggested that the City give consideration to a bus bench policy for reasons stated by the City Administrator and that information be compiled from other cities who have adopted policies before any further consideration is given by the City Council. City Counclimember Masin stated that the MVTA has a draft ordinance which will be provided to the City for review and consideration. Planner Tyree stated that it would be helpful to add the regulation of bus benches to the zoning ordinance. She further stated that location, maintenance and advertising are the main issues as stated by the City Administrator. Mayor Egan asked that staff review the legislative authority relating to first amendment rights, health and safety, and governance of setbacks. He stated that these are questions the City Administrator may want to raise with the City Attorney's office. Mayor Egan thanked staff for raising the Issues relative to the need for addressing a bus bench policy and provided direction to the City Administrator to review bus bench policies of other communities and the draft ordinance of the MVTA and report back to the City Council at a future work session. MWA BUDGET City Counclimember Masin presented a document that Includes assumptions for creating the 1997 MVTA operating budget. She further stated that this document is a guideline for spending. City Councilmember Masin further stated that because the city of Rosemount did not join the other five cities In assuming the levy for transit tax, the MVTA still must approach the Met Council for the Rosemount allocation. City Counclimember Awada continued to express concern about the amount of public subsidy and frustration that the money could be used for other services or less taxes. She stated that she has a philosophical difference about the $2 million Eagan pays for services, stating that those dollars could be better used. Mayor Egan expressed some concern that limited input Is going into the development of the MVTA budget which is an S8 million operating budget or half of the City of Eagan's budget. He stated that cities should have more detail, similar to the City of Eagan budget format. City Councilmember Masin commented on the MVTA strategic plan stating that It would be helpful to have a more diverse makeup from other cities as the MVTA develops the budget and other policies. After further discussion and a response to questions by the Assistant to the Executive Director Audrey Schwartz, Mayor Egan thanked City Counciimember Masin, who chairs the MVTA and Audrey Schwartz for their input and response to questions regarding the budget and various MVTA operations. CODE ENFORCEMENT POLICY City Administrator Hedges stated that the planning division has written a policy regarding code enforcement that clarifies sections of the City Code as to how the City should handle systematic inspections. The purpose of the policy is to provide staff with direction and an expectation for the community that all properties will be Inspected every 1 - 3 years and that violations will be Identified. The City Administrator stated that there are several chapters In the City Code including Chapters 4, 9, 10 and 11, that require an ongoing City Code compliance through systematic inspections of properties. Mayor Egan stated that he MEMORANDUM TO: Mike Ridley, Senior Planner FROM: Shannon Tyree, Planner DATE: September 24, 1997 RE: Bus Benches INTRODUCTION city of eagan Courtesy bus benches are not identified in the City Code. The benches have been located here, according to one bench company, since the 1960's. Earlier this year a noticeable amount of benches began appearing in the community. The bench company, National Courtesy bench contacted the City about locating benches and was told the City Code does not address bench placement in the City, but to contact the Minnesota Valley Transit Authority (MVTA) to ensure placement on a current bus route. During that time the City was involved with the 11VTA in reviewing a bus bench agreement that encompassed all of the member cities. It was apparent that due to the differing zoning codes with each of the six cities, one universal bench agreement was not feasible. The Technical Work Group members recommended to the Board that a bench agreement should be left up to each of the cities individual zoning codes to enforce. During the same time, the City received several complaints about the "proliferation of benches and their advertising". Other complaints -%vere received from potential advertisers wondering hovv one bench company could charge less for a site than another. Finally, a complaint was received from a bench company complaining that another bench company had come to town. The City Council, at its April 1. 1997 workshop meeting, requested staff to prepare an analysis of enforcement of bus benches in the City- of Eagan to go back to Council this fall. Since that time staff has been reviewing the Eagan City Code as well as state regulations and Dakota County- regulations on its right-of-way, and other communities bus bench policies and ordinances concerning bus and courtesy benches. `f 4� STATUS The City of Eagan has approximately 85 benches along various routes (see map). U.S Bench has 62 benches, 25 of the benches are donated to MVTA for its advertising and are not income producing benches and National Courtesy Bench has 23 benches. Forty-two benches, nearly half, appear to be located within Dakota County right-of-way. In addition to the City never issuing permits for the benches or the advertising, the county has never issued permits either. State Statute According to state statute, there are three systems that a city can use to regulate bus benches, permits, licenses and franchises. According to the state "Benches may be placed and maintained within the limits of any street or highway when a license, permit or franchise is first obtained from the street authority. Advertising may be permitted if authorized by the license, permit, or franchise." Dakota CountN- Dave Zeck, Dakota County Highway Department, informed the City that bus benches "can be permitted" by permit, however, they cannot have any advertising and must be located within the "clear zone". This clear zone represents an area approximately 18' from the painted edge of the, travel lane or face of the curb. Most County roads in Eagan carry more than 6000 vehicles per day, have a 45 -mph speed limit, and a 6" curb. When all of those variables are present, the clear zone is 28'. This does not leave much room for a bench. The County has never issued a bus bench permit, and in fact does not have a specific bus bench permit form. Mr. Zeck stated that all of the bus benches on county roads are in violation and could be removed. According to the county, the reasons for not actively pursuing removing the benches are due to limited staff, the large number of signs, and its priority status. EAGAN CITY CODE While not specific, existing City Code regulations prohibit bus benches and the associated advertising in the City's right-of-way. Benches Regarding benches, City Code Chapter 11.10 Subd.9 Structures in Public Right of Way states: "No buildings, structures or uses may be located in or on any public lands or rights-of-way without approval by the Council." Therefore the existing benches in the City are all in non-compliance with the City code. I Signa, Regarding signage, City Code Chapter 4.20 Subd. 4 A. Off -Premises Sighs states: "No off - premise signs shall be permitted in any zone within the City except as permitted under subdivision 4 hereof. Subdivision 4 refers to a table where 14 billboard signs have been identified. Therefore all existing bench signage is in violation of the City Code. OPTIONS The City may regulate location. quantity, and signage. The following methods may be used to facilitate an enforceable system. Permit Svstem Using a permit system, the City issues a permit to a bench company for each bench and its advertising space. with a limit on the number of permits. The City also regulates the location. size. maintenance, advertising content, and other aspects of the benches through performance standards. Advantages of using a permit process are: The permits could be processed in the same manner as sign permitting.. and staff time would appear to be less than through the licensing or franchising system. ?, Permitting allows the City to keep accurate documentation of where the benches are and when the), were approved. 1 Permits are issued on a first come. first serve basis until all of the permits allowed have been issued. There is not a need for a competitive bid process to select the permit holders; however all of the permits could go to one company. Issues involved in the permitting process: 1. Any fee associated with the permit process would only be as high as needed for the City to administer the process. It is not intended to be a source of revenue for the City. 2. A sign company intending to place benches on a County Road would be required to follow the procedures of the County for placing a bench on its right-of'.vay. The issue would be the potential lack of coordination between the County and the City in issuing permits where it has jurisdiction. However with the current attitude of the County_ it appears that no permits may be issued on County Roads. D �q. Licensing Process Under a licensing system, the City would issue a license to a bench company or companies to place s specified number of benches in the community, using the same type of regulations that would be developed under a permit system. The bench company may then locate the benches along the bus routes, in compliance with location and placement regulations. Advantages of this system are that the City would only issue one license per company, reducing staff time and records. The company would also be required to deal with the County for approval of any benches along any County Roads. Again the City would not be required to use a competitive bid process to select the licensee. One or more licenses can be granted on a first come, first serve basis to all companies that apply and meet City requirements. Potential disadvantages to the licensing system are that the City would be required to do a background investigation on companies that apply. The City can require an application fee to cover this cost. Similar to the permit process the City may only charge a fee enough to cover the cost of the application. No additional revenue may be generated from the licenses. It should be noted with both the permit process and the license system that 42 of the benches are located on County Roads. So when trying to calculate an annual fee per year those benches would generate, County benches would not be figured in that equation. Franchise syst It is possible to use a franchise system for bus benches. This requires the City to enter into an exclusive agreement with a single bench provider, using a competitive bid process. Terms and responsibilities of the agreement are included into a written agreement. After researching the metro area to learn how other communities handle its benches, it appears that none of the metropolitan communities use a franchise system. Minneapolis and St. Paul use this procedure for its bus shelters only, not benches. The system is more complicated and the potential revenue from the benches is quite low. According to U.S. Bench the average advertising price per bench per month is $38.00. For U.S. Bench that amount totals $1,406.00/month (37 benches x $38.00 = $1,406.00) Annually that figure is $16,872. National Courtesy Bench's average price/bench is $42.00. This equates to an annual figure of $11,592.00. Combines the total for both companies is $28,464.00. The staff time to administer this system would most likely use any potential revenue due to the small amount in Eagan. IMPLEMENTATION Amendments to the zoning code would be required allowing the use and the structure in a public right-of-way as way. The sign code would need to be amended to allow for additional off- 4 premise signage from that listed as Table A which is referenced in Chapter 4 Subd. 4.13.1. that depicts location, size, and surfaces of billboards. The amendment process requires public hearing by the Planning Commission and adoption by the City Council. New administrative procedures would be necessary to provide for the accurate filing, tracking and mapping. Developing the Ordinance Prior to the amendments it would be necessary to establish the proper performance standards enforceable in the City Code. If the City chooses to allow benches by permit, license, or franchise, performance standards should be in place for the applicant to meet. Performance standards include things like setbacks from streets, number of benches allowed on routes, size. height and length of bench, and construction of a concrete pad for the bench to be placed on, etc... Other requirements that could be enforced by the City would be proof of insurance for each bench and a requirement that a bond be put up for the benches. Both companies with benches in Eagan, U.S. Bench R National Courtesy_ Bench informed me that they currently_ cam. at least one million dollars of insurance per bench. Anal sis Benches are allowed in other communities through a variety of processes. Attached are a couple of examples of bench ordinances. Most appear to be through an annual permit process. For instance, in Bloomington the fee is 560.00 for the first bench and 10.00 for all additional benches. The permit is valid for one year and evaluated the neat year to ensure the bench is located on a proper route. Advertising is permitted. St. Louis Park has identified 50 locations throughout its community to allow benches. The benches are renewed annually through license process. Woodbury alloys benches to be located in its right-of-way. However, no advertising is permitted and the bench becomes property of the City. There are currently no benches in Woodbury. They do not have any permit, license or franchise process set up. Nor do they define benches. Plymouth regulates benches through a permit process and limits the total amount within the City to 50. The fee is S25 for the initial permit and S25 for any subsequent renewal. The City of Burnsville, which has 65 benches, is in the process of making the necessary zoning code amendments. which would allow benches through a licensing procedure. The public hearing for those amendments will occur this October. Each City has varying degrees of performance standards for permitted square feet of advertising signage, sometimes depending on what zoning district the bench is in (less in residential, more in commercial). Summar, The City may regulate uses and signage in its right-of-way. The Council can choose to allow benches through a permit, license, or franchise. An annual fee can be established per bench or an annual percentage from the franchise. Currently, benches are not permitted in the right-of-way. Off-site signage is only permitted as part of the "billboard" signage strictly regulated at locations defined in the City Code. The City has the ability through its current regulations to eliminate the benches and the advertising. MEMORANDUM TO: Tom Hedges, City Administrator FROM: Jim Sheldon, City Attorney DATE: September 29, 1997 RE: City of Eagan v. Carl Richard Olson, et al. City Project No. 694 Court File No. 19 -CX -96-7917 Our File No. 206-13462 I am enclosing the award of Commissioners in the above -referenced matter. You recall that the landowners were seeking nearly 1.4 million dollars in compensation whereas the City was offering $163,000.00. The Commissioners awarded at total of $437,100.00 which includes $387,400.00 for permanent easements, $33,900.00 as temporary easements, $15,300.00 as severance and $500.00 for the appraisal fee. Given the huge disparity in the positions of the parties, we believe that a reduction of almost $900,000.00 from the amount that the landowners were demanding is a favorable result. Each party has 40 days from the date the report was filed with the District Court to file an appeal. If one party appeals the other party has until the 50th day from the date of filing to determine whether to appeal. Our office will do an in depth analysis of the Commissioner's award so that we can discuss this more fully with you at a later time. If you have any questions, please feel free to contact me. JFS/wkt cc: Gene VanOverbeke, City Clerk Tom Colbert, Director of Public Works Mike Dougherty, City Attorney TheRealEstate Marketplace Terry Kallin •L'rox® Certified Reetdenttal Specialtet • Graduate, REAii'OR.S® Institute 110 Duck Pond Drive. West Saint Paul, MN 55118 i + SSP 2 9 ST Phone: (612) 450-7569 �!IW7L i� September 26, 1997 Mr. Robert Bauer Attorney At Law 7300 West 147th St., Suite 600 Apple Valley, MN 55124 Mr. Larry Martin Attorney At Law 1500 Norwest Financial Center 7900 Xerxes Avenue South Bloomington, MN 55431 RE: City of Eagan v. Carl Richard Olson, et. al. Court File No. 19 -CX -96-7917 City Project No. 694 Gentlemen: A copy of the "Report of Commissioners" in the above referenced matter, recorded with the Dakota County District Court on September 26, 1997, is enclosed. Sincerely, T �allin erry © Ott: Q TheRealEstate MarketPiace Terry Kallin • REAL-roRe certified Residential Specialist • Graduate, REALTORS® Institute 110 Duck Pond Drive. West Saint Paul. MN 55118 Phone: (612) 450-7569 September 26, 1997 Mr. Robert Bauer Attorney At Law 7300 West 147th St., Suite 600 Apple Valley, MN 55124 RE: City of Eagan v. Carl Richard Olson, et. all. Court File No. 19 -CX -96-7917 Your File No. 206-13462 City Project No. 694 Dear Mr. Bauer: This is to summarize our days as commissioner's in the above referenced matter, in addition to those stated on the "Report of Commissioners". Sept. 3, 1997 - Reviewed briefs received from attorneys. Sept. 17, 22, 23, 1997 - Commissioner deliberations Sept.24, 1997 -Final conclusions & award signing. As chairman, I am also filing for 2 additional days, including the date the award was filed in Dakota County, September 26, 1997. Sincerely, Terry Kallin STATE OF MINNESOTA COUNTY OF DAKOTA City of Eagan, a Minnesota municipal corporation, Petitioner, V. Carl Richard Olson; Richard T. Burger; Walbon Partnership, a Minnesota general partnership; Lexington/Eagan Limited Partnership, a Minnesota Limited Partnership; Bank Midwest, N.A.; Stanley 0. Ketcham; June R. Ketcham; Donald J. Michaletz; John Doe and Mary Roe. Respondents. TO THE COURT: Case Type 2. Condemnation DISTRICT COURT FIRST JUDICIAL DISTRICT COURT FILE NO.: 19 -CX -96-7917 REPORT OF COMMISSIONERS FOR RESPONDENTS, CARL RICHARD OLSON AND RICHARD T. BURGER The undersigned commissioners appointed by this Court in the above -entitled matter by Order of the Court dated July 10, 1996, do hereby report as follows: That we met at the time and place appointed by the Court therefore, to -wit, in the office of the Clerk. of District Court, at the Dakota County Government Center, 1560 West Highway 55 Hastings, Minnesota 55033, on July 22, 1996, and each took the oath prescribed by law. 2. That thereafter upon .giving due notice to all persons who had appeared in the within matter, we met at the site of the property being condemned, on February 24, 1997. 3. We heard all persons interested who appeared and asked to be heard at a Commissioner's hearings on July 14, 15, 21, 22 and August 12, 1997, at the Municipal Center in the City of Eagan, County of Dakota, State of Minnesota. Page 2/ REPORT OF COMMISSIONERS FOR RESPONDENTS, CARL RICHARD OLSON AND RICHARD T. BURGER 4. We have appraised the value of the land so proposed to be taken, and the damages sustained by the Respondent by reason of the taking thereof, and the same are as follows: Carl Richard Olson and Richard T. Burger: Damages for land taken: Permanent Easements Temporary Easements Severance Appraisal Fee TOTAL AWARD: $ ,3FZ yao $ ac $ ; 'z $ 500.00 $ X37/00 5. We fiirther report that in the performance of our duties as Commissioners, we were each occupied as follows: Terry Kallin - /3 days at $150.00 per day; miles at $.31 cents per mile and total amount due of -5 -$ oz. 9S . James Metzen - days at $150.00 per day; 7/ G miles at $.31 cents per mile and total amount due of $ 7 o RobertMcKenzie - // days at $150.00 per day; miles at $.31 cents per mile and total amount due of $ Dated: Z4 , 1997. Terry KallipV Social Security No. 473-46-4154 Xetzen S ial Security No. Z17Z " d • yl/�� Robert McKenzie Social Security N 4/7Z 0,6