2015-09-15 Council minutesCITY OF MENDOTA HEIGHTS
D.AKOTA COUNTY
STATE OF MI]�NESOTA
Minutes of the Regular Meeting
Held Tuesday, Septeinber 15, 2015
Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota
Heights, Minnesota was heid at 8:00 p.m. at City Hall, 1101 Victoria Cuive, Mendota Heights,
Minnesota.
CALL TO ORDER
Mayor Krebsbach calied the meeting to order at 8:00 p.in. talcing note that the start time was later due to
recognition of Rosh Hashanah. Also present were Councilmembers Duggan, Povolny, Petschel, and
Norton.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Krebsbach presented the agenda for adoption. Councilmember Povolny moved adoption of the
agenda.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and
approval. Councilmember Norton moved approval of the consent calendar as presented and
authorization for execution of any necessary documents contained therein, pulling items i) Approval of
Revised Resolution 2015-50, modifying the original conditions of approval for a lot split and variance at
650 North Freeway Road.
a. Approval of September 1, 2015 City Council Minutes
b. Approval of September l, 2015 City Council Woricshop Minutes
c. Approval of August Building Activity Report
d. Approval of Personnel Action Report
e. Authorization to Execute Purchase Order for Professional Services to Provide Land Survey and
Geotechnical Services for the Mendota Road Neighborhood Improvements Project
f. Approval of Resolution 2015-70, Amendment to Building Permit Fee Schedule for Projects in
Excess of $1 Million
g. Authorization of a Purchase Order to Replace the Hocicey Rinlc Boards at Wentworth Parlc
September I5, 2015 Meizdota Heights Ciry Council Page 1
h. Approval of Bourn Lane Property Cleanup
i. Approval of Revised Resolution 2015-50 Modifying Original Conditions of Approval
j. Approval of Claims List
lc. Approval of Contractor List
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0 �
PULLED CONSENT AGENDA ITEM
I) APPROVAL OF REVISED RESOLUTION 2015-50
MODIFYING ORIGINAL CONDITIONS OF APPROVAL
Planner Nolan Wall explained that Resolution 2015-50, in support of a lot split and variance at 650
North Freeway Road, was approved at the July 7t�' City Councii meeting. One of the conditions in that
resolution required the proposed garage addition to be completed prior to the lot being split. The
applicant is now requesting a revised condition that wouid ailow construction of the proposed garage
addition on the existing parcel and construction of the dwelling on the newly created parcel to occur
simultaneously. Staff has proposed a inodified condition that they feei allows reasonable flexibility in
the construction schedule and the recording process and still accomplishes the intent of the original
condition, which was to ensure that the proposed garage is constructed in compliance with their original
approvai.
Councilinembers aslced what would happen if the garage is never finished. Wali stated the Certificate of
Occupancy would be wit�held until the project was finished.
Councilmember Duggan moved to adopt the revised RESOLUTION 2015-50 APPROVING A LOT
SPLIT AND VARIANCE AT 650 NORTH FREEWAY ROAD.
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
There were no public comments.
PRESENTATIONS
A) DAKOTA COUNTY UPDATE ON HIGHWAY 110 PEDESTRIAN CROSSING
Public Worlcs Director/City Engineer John Mazzitello explained that as part of the Mendota-Lebanon
Hills Greenway Master Plan, Dakota County received a grant through the Metropolitan Council to
construct a pedestrian crossing at Highway 110. He introduced Dalcota County Project Manager Mr.
Jacob Rezac to explain the options being reviewed for the separated grade trail crossing.
Septenzber 15, 201 S Me��dota Heights City Council 1'age 2
N1r. Rezac gave a brief background on the project and reviewed the options that have been developed to
date. At this time, Dakota County is going through an analysis of each option to select a preferred
aligrunent location and a preferred crossing type.
The county has developed three possible alignments for the trail crossing.
The western alignnlent crossing, which is located near the intersection of Highway 110 and Dodd Road,
would cross at a 90-degree angle to Highway 110 and utilize an existing trail easement. This particular
crossing would be fairly Iow cost because of the 90-degree angle and the low amount of earthworlc
involved. This would be a box culvert or tunnel option (approximately 200 feet long). This option
would provide good connections to existing and future trails and is the lowest estimated cost option. It
would require acquisition of part of the McDonald's property and wouid have drainage and utility
impacts.
A similar option would be located just to the east of the intersection but the alignment would be skewed
from Highway 110. It would utilize the existing easements and require property acquisition from
McDonald's. The trail connection points are the same. Tlus option would have lower base const�uction
costs, and reduce the drainage and utility impacts, and also provide for good connections to existing
trails. This option would have more design options available, which could be more costly but are safer
for pedestrians.
A third option would utilize a parcel that is owned by the Dodge Nature Center but is encumbered by a
MiiDOT easement. This option would not require any additional property acquisition and would have
less drainage and utility impacts. This option is located to the east of the Dodd/Hwy 110 intersection,
near Oak Street, and would offer more design choice flexibility. This option could provide the highest
base construction costs.
Counciimembers aslced questions with regard to each option.
An open house will be scheduled in mid-October so residents can review the options, aslc questions, and
provide feedbacic. All comments or concerns would be given to Dalcota County for consideration.
NEW AND UNFINISHED BUSINESS
A) ADOPTION OF OMNIBUS AGREEMENT BETWEEN THE CITY OF MENDOTA HEIGHTS
AND THE BOARD OF WATER COMMISSIONERS FOR THE CITY OF SAlNT PAUL
Mayor Krebsbach requested that the Council vote on this item at the October 6, 2015 Council meeting.
This would give Councilmembers tiine to gather additional infonnation.
Public Works Director John Mazzitello gave a sum�naiy of the existing agreement with St. Paul
Regional Water Service and a summary of the proposed agreement.
The City of Mendota Heights has been under a contract with St. Paul Regional Water Service (SPWC)
since 1995 and this agreeinent is set to expire at the end of the 2015. With existing agreement, the City
of Mendota Heights owns the water distribution system, the hydrants, and the water tower itself.
Septenzber 1 S, 2015 tLte�zdota Heights Ciry Counci! Page 3
The city contracts with St. Paul Regional Water Service to provide the water to residents, and provide
for emergency repairs to the system, inspection or completion of new replacement projects, and provide
bills to the customers. M.endota Heights is responsible for routine maintenance, rehabilitation, and
replacement of system components to include capital improveinents.
Because of this arrangement, St. Paul Regional Water Seivice charges Mendota Heights custolners a rate
20% higher than residents of the city of St. Paul and some other municipal partners. This surcharge
money is used to fund their services in the way of emergency repairs, inspections, etc. The City of
Mendota Heights also charges a 10% surcharge to gain revenue in the water utility fund, which is used
for maintenance activities as well as rehabilitation and replacement projects.
The Council has been me�eting with St. Paul Regional Water Service regarding a new agreement.
Through discussions, a draft agreement is outlined below. Residents and businesses would not see any
difference in their level of service.
• Mendota Heights would deed ownership of the water distribution system to St. Paul Regional
Water Service.
• City of Mendota Heights wouid be able to enter into a separate agreement with the other
municipal partners to obtain one of two seats on the Board of Water Commissioners
s St. Paul Regional Water would be responsible for all routine inaintenance, emergency repairs,
and capital improvements.
s Mendota Heights would be responsible for painting the fire hydrants and malcing any
adjustments to the water system that are not part of a St. Paul Regional Water plan (i.e. needing
to replace valve cover castings for a mill and overlay project).
o St. Paul Regional Water Service and Mendota Heights would be required to review capital
projects at least once per year to coordinate their execution and time frames.
s The 20% surcharge currently charged to Mendota Heights' customers would be scaled bacic over
a seven-year period, with the seventh year being no suxcharge.
• Mendota Heights would retain ownership of the land that the water tower sits on; St. Pau1
Regional Water Service would own the tower itself. Mendota Heights would grant an access
easement agreement over city property to access the water tower for maintenance. St. Paul
Regional Water Service would allow Mendota Heights to continue to store material in the water
tower. Also, as part of this agreement, no exterior modifications or alterations to the water tower
would be completed without the prior permission of the City of Mendota Heights.
• The City of Mendota Heights would collect 100% of the cell tower revenue fiom the water tower
for the first six years. After six years, the revenue would be divided 50/50.
s St. Paul Regional Water Service would complete all quarterly billing.
• Mendota Heights would be responsible for adjustments to the system (i.e. water casting).
• The City of Mendota Heights would not be billed for water consumed for fire response or fire
training. �
• Mendota Heights, if it chooses, can terininate this agreeinent and regain ownerslup of the water
distribution system. The City would reimburse St. Paul Regional Water Service for the
depreciated cost of capital improvements made to the system that are not listed in Exhibits A-D.
The City of Mendota Heights would be reimbursed any fiulds collected by St. Paul Regional
Water Service but not expended on capital improvements for those assets listed in Exhibits A-D.
September I S, 2015 t�tendota Heights City Cozuzcil Page 4
Mr. Matt Anfang, President of the Board of Water Coxnmissioners, and Mr. Dave Wagner, Engineering
Manager, were available to answer questions from the Council.
Councilmember Povolny explained he is not comfoi-table witlz the agreement and his reasons for not
supporting this initiative; however, he has no complaints on the quality of service provided.
Mayor Krebsbach recommended that language be included in Article IV, stating that the City of
Mendota Heights has the first right of refusal to buy back the system if it is ever sold for any reason.
She aslced about language in Article II and what happens to the easement at the tower site should St.
Paul Regional Water Service sell the utility. In Article III Section 2, she aslced what the payment for
adjustments to the depths of any deficient mains identified in Exhibit B is for. Mr. Wagner explained
that this cost would be paid for by the surcharge fee inciuded on the bills.
Councilmeinber Duggan aslced about Ai�ticle V Section 9, tlle inspection of house plumbing connections
and the fees for these inspections. Public Worlcs Director Mazzitello stated the inspections are for the
service lines that connect the property to the main. This will be clarified in the agreement.
Councilmember Duggan questioned language in Articie X, first paragraph "the preservation, regulation,
and protection of its water supply, including water waste, water conservation, sprinlding restrictions, and
water use for air conditioning equipment". Mazzitello stated this means that St. Paul Regional Water
Service can enforce conservation rules or water restrictions it feels are necessary. Regarding Articie XI,
Councilmember Duggan questioned if hydrant spacing was determined by St. Paul Regional Water
Services. Mr. Wagner stated fihat any changes to the placement existing of hydrants or additional
hydrants will be paid for by the City of Mendota Heights. He referred to Exhibit G which is attached to
the agreement. Councilm�mber Duggan aslced about Article XIII Section 5, how is the depreciation
value determined. This information will be forwarded to the city staff.
Councilmember Povolny questioned the map showing cast iron pipes in the area. Mr. Anfang displayed
a map of the entire St. Paul Regional Water Service area which showed a ranlcing of the water mains and
how lilcely they are to fail. Mr. Wagner stated the map was based on a recent study where the water
mains were ranlced based on a number of criteria.
Councilmember Duggan noted the very small number of coinplaints received by St. Paul Regional
Water Service and the w�nderful quality of the water.
Mayor Krebsbach requested that answers to any questions, or language that needs to be clarified in the
agreement, be provided to Councilinembers before the October 6 ineeting.
Councilinember Duggan moved to table the ADOPTION OF OMNIBUS AGR.EEMENT BETWEEN
THE CITY OF MENDOTA HEIGHTS AND THE BOARD OF WATER COMMISSIONERS FOR
THE CITY OF SAINT PAUL to the October 6, 2015 City Council Meeting.
Councilmember Petschel seconded the motion
Ayes: 5
Nays: 0
Septenzber I S, 2015 Mendota Heights City Council Page 5
B) RESOLUTIONS 2015-71, 2015-72, 2015-73 CERTIFICATION OF THE PRELIMINARY 2016
TAX LEVY AND BUDGET
Finance Director Kristen Schabacicer explained that staff began worlcing on the 2016 preliminary budget
in July 2015 and workshops were heid with the City Council in August and September 2015. Different
than previous years, the department heads prepared improvement pacicages for the Council's
consideration. Most of these requests were for capital equipment and some requests for additional
services. Half of the improvement pacicages are included in the 2016 preliminary budget.
Adjustments have been made to the preliminary budget:
• Tuition requests capped at $3,000 for 2016
• City contribution to firefighter pension a.inounts was increased to $3,000 per firefighter per year
• In 2015 there was a police patrol position that was included in the budget; however, that position
was not included in the 2016 preliminary budget
• A request for a 2.5 ton dump trucic for the street departinellt is included with equipment
certificates to be issued this fall, to be included with the bond for the street improvements. That
bond request wiil come to the Council at the next meeting.
• The budget includes an increase in worlcers compensation and a 2% cost of living increase for
employees
• The City's contribution towards employee health insurance remained at the same level.
Director Schabacicer explained that the 2016 preliminary levy represents a 5.95% increase from 2015,
approximately $416,000 more. Inciuded in the pacicet is an analysis for what the residents would see as
far as their portion of the City's property taY with this levy. A home valued at $500,000 for 2016 would
see an increase in the city portion of their property t�es of approxiinately $93.00. A home valued at
$225,000 in 2016 would see an increase in the city portion of their property taxes of approximately
$42.00.
Counciimember Povolny noted that this is only the city tax and does not include the county, t11e schooi
district, or any other taxing entity.
Director Schabacicer explained that once the preliminary levy is approved, it would be certified to
Dalcota County. After that point, the levy cannot be increased, however, it could be decreased if the
Council desired.
Mayor Krebsbach noted that this is a very tight budget and even at a less than 6% levy increase, things
have had to be cut out. The City has decided to not hire an additional police officer. She noted the City
will see over $7 million; however, according to information which had been received from Dalcota
County, there is another $1.8 million that comes out of tlze City's t�es that the City does not see. This
amount goes into the state fiscal disparities fund.
Mayor Krebsbach stated that one of the reasons the Council is considering the transfer of the water
system is because if there should be a major brealcage, the City does not have a large reserve to go to.
The reserve has been lcept at 75% to lceep a high bond rating. She noted that a worlcshop will be held
later this year to loolc at the City's revenue sources and what types of expenses can be pulled bacic on.
Septenzber I5, 201 S Me�zdota Heights City Coa�ncil Page 6
Councilmembers aslced questions regarding the `Fiscal Disparities Contribution'. City Administrator
Marlc McNeill explained that some cities are required to pay into the fiscal disparities fund. He stated
that Mayor Krebsbach is recommending to the state representatives that a cap be put on the fiscal
disparities amount for cities with a population under 15,000.
Councilmember Povolny moved to adopt RESOLUTIONS 2015-71, 2015-72, 2015-73,
CERTIFICATION OF THE PRELIMINARY 2016 TAX LEVY AND BUDGET.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
C) ORDINANCE 477 CONCERNING TRADE SCHOOL DEFINITION,
PLANNING CASE 2015-14
Planner Nolan Wall explained that the City is considering an amendment to Title 12, Chapter 1, Article
B, Section 2 of the City Code, concerning the definition of a trade school. The City has been approached
with several requests to establish difFerent types of educational facilities within the industrial district. To
ciarify the city's interpretation of the existing definition, this amendment is being proposed.
The original definition in the code read: TRADE SCHOOL: An educational institution, either private or
public, which offers classes and training to full and/or pa.rt time students including, but not limited to,
technical, mechanical, services and computing fieids.
The proposed amendment to the definition, as it was sent to the Plarv�ing Commission, read: TRADE
SCHOOL: A� privatelv-owned post-secondarX slcill-based educational institution, ��i������=o�.�e—e�
�t�l-i�tE which ofFers el�se� completion programs that issue certificates diplomas and de�rees; and
certified training to full and/or part time students including, but not limited to, technical, mechanical,
services and computing fields.
The Planning Commission recommended the definition read as follows: TRADE SCHOOL: A� post_
secondar� slcill-based educational institution, ��+'��r „�;�r�+� ^r_�u�.i�, which offers completion pro�rams
that issue certificates, de�rees, or ��«�=a certified training to fuil and/or part time students
;�,a;,,n� �,,,, �.,,+,;,.,,;+oa +„� such as those in technical, mechanical, seivices and computing fields.
Mayor Krebsbach expressed her desire to remove `Trade Sc11oo1' as a definition and permitted use in the
Industrial District. City Attorney Tom Lehmann noted that to Inalce such a substantive change to the
Ordinance would require �that it go back to the Planning Colnmission.
Mayor Krebsbach moved to adopt the amended definition as it was originally presented to the Planning
Commission.
Councilmember Norton seconded the motion.
Councilmembers aslced for an explanation of the nuances of the Planning Commission in malcing their
amendments to the suggested definition. Planner Wall stated the Planning Commission felt that both
public and private post-secondaly schools should be included in the definition since that language is in
the current ordinance. �
September I5, 2015 Mendota Heights City Coa�ncil Page 7
After continued discussion regarding the motion on the table, Councilmember Norton withdrew his
second of the motion.
Councilmember Norton moved to approve ORDINANCE 477, AN ORDINANCE AMENDING TITLE
12-1B-2 OF THE CITY CODE CONCERNING TRA.DE SCHOOLS with the definition as proposed by
the Planning Commission.
Councilmember Petschel seconded the motion.
Mayor Krebsbach noted that she would not vote in favor of this motion and requested that in the City's
planning process they loolc at removing `Trade Schools' as a peimitted use in the Industrial District.
Councilmember Duggan suggested removing the term `completion' and the term `services' from the
ordinance. Councilmember Norton amended his motion to include removing the word "completion"
from the definition; Councilmember Petschel seconded the amended motion.
Ayes: 4
Nays: 1 (Krebsbach)
D) ORDINANCE 485 CONCERNiNG ALTERNATIVE ENERGY SYSTEMS,
PLANNING CASE 2015-34
Planner Nolan Wall explained that the City was considering amendments to Title 12, Chapter 1, Axticles
B, D, and E of the City Code concerning alternative energy systems. Currently there are no standards in
piace for aiternative energy systems in the Code. Ordinance 485 would create a new section in the Code
and provide standards for solar energy systems. Additional sections could then be added as necessary in
the future to address ground source heat pumps, wind energy systems, and any other technology that
arises in the future. The intention now is to only deal with solar energy systems.
The proposed ordinance would ensure that consistent standards a.re in place to encourage sustainable
practices that staff feels do not have any adverse impacts on the community. The Planning Commission
recommended approval of Ordinance 485; however, they were unsure if the proposed use should be
considered a permitted use or a conditional use.
Planner Wa11 briefly highlighted the proposed sta.ndards.
Councilmembers aslced questions regarding the different types of solar systezns and solar gardens. They
discussed that this should be a conditional use (requires public notice and requires a public hearing) for
now.
Councilmember Duggan moved to adopt ORDINANCE NO. 485 AMENDING TITLE 12, CHAPTER
l, ARTICLES B, D, & E OF THE CITY CODE CONCERNING ALTERNATIVE ENERGY
SYSTEMS with the additional language that this be a conditional use.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
September I5, 201 S Mendota Heights Ciry Coa�nci! 1'age 8
COMMUNITY ANNOUNCEMENTS
Assistant to the City Administrator Tamara Schutta made the following announcernents:
• The fall edition of the Heights Highlights has been delivered to residents.
o Picicleball courts are now ready to use. Residents can request use of the city's racquets and balis
from the city hall.
• The 2015 Halloween Bonfire is scheduled for October 31 at 7:00 pm. Information will be posted
on the City's website. Brush wili be collected through October 29 for the bonfire.
• A neighborhood meeting is scheduled for September 28 at 6:30 pm at City Hall to tallc about the
2016 Mendota Road and Warrior Drive sireet reconstruction project.
e Lilydale is having their Sth Annual Lily Daze Festival on September 20 at Lilydale City Haii
• Residents can recycle computers, paint, batteries, coffee malcers, and other items on Saturday,
October 3 at the Burnsville Maintenance Facility at no cost.
COUNCIL COMMENTS
Councilmember Norton wished a Happy New Year to the Jewish residents.
Councilmember Duggan noted a photograph he brought in of the 175t" �uiiversary of St. Peters Chuxch.
He also expressed congratulations to the City of Eagan on the Vilcing's acquisition of land in their area.
Traffic on Dodd Road and Highway 149 is anticipated to be significant and the City of Mendota Heights
should have some input in how the traffic would be handled.
Mayor Krebsbach noted' the passing of Thelma Hunter, a long-term Mendota Heights resident and
patron of the arts.
.:__� �1i��1
Councilmember Duggan moved to adjourn.
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0 �
Mayor Krebsbach adjourned the meeting at 10:26 p.m.
�� .. � � � � ��
S dra �rebsbach
Mayor
ATTEST:
Lorri Smith
City Clerlc
Septernber I5, 201 S Mendota Heights City Coaincil Page 9