2015-10-20 Council minutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, October 20, 2015
Pursuant to due call and notice thereof, the regulaa� meeting of the City Council, City of Mendota
Heights, Minnesota was held at 7:00 p.m. at City Ha11, 1101 Victoria Curve, Mendota Heights,
Minnesota.
CALL TO ORDER
Mayor Krebsbach called the meeting to order at 7:00 p.in. The following members were present:
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 and noted that Chief of Police Michael
Aschenbrener izad requested an item be added. Councilmember Petschei lnoved to add this item under
New and Unfinished Business as 9c. Out of State Training Request for MAAG Training.
Cousicilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and
approval. Couilcilmember Povolny moved approval of the consent calendar as presented and
authorization for execution of any necessary documents contained therein.
a. Approval of September 15, 2015 City Council Minutes as amended
b. Approval of October 6, 2015 City Council Closed Session Minutes
c. Approval of October 6, 2015 City Council Minutes
d. Adoption of Resolution 2015-80 Support of Dakota County Draft 2016-2020 Capital Improvement
Plan (CIP)
e. Authorization to Seelc Professional Services for the Revision of the City's Local Surface Water
Management Plan (LSWMP)
f. Approval of 2016 Insurance Renewal and Election to Not Waive Statutory Tort Limits
g. Approval of Septeinber Building Activity Report
h. Approvai of Claims List
i. Approval of Contractor List
October 20, 201 S Mendota Heights City Council Page 1
Councilmember Norton seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
There were no public coinments.
PRESENTATIONS
A) AIRPORT RELATIONS COMMISSION WORK PLAN UPDATE
Airport Relations Commission Chair David Sloan introduced the members of the Airport Relations
Cominission: Bill Dunn and Arvid Sharma. The Commission presented their 2015 accompiishments and
aiso the meinbers assignments.
Councilmembers had questions regarding the statistical methods and how the data is used, additional
spealcers or tours that toolc place, and if the Cornmission meetings are open to the public.
Councilmember Petschel noted that she believes one of the things the City really needs to do next year,
sometime after January l, is to have Elaine Bucicner, Federal Aviation Administration (FAA) Air Traffic
Control (ATC) Manager and Dana Neison, Manager - Noise, Environment & Planning come to the City
and participate in a well publicized open-house to answer questions and address concerns from the
residents.
Councilmember Duggan moved to commend the Aiiport Relations Commission for their diligence, for
the `behind the scenes' work that they do, and their advocacy on behalf of the residents of City of
Mendota Heights.
Counciimember Petschel seconded the motion.
Ayes: 5
Nays: 0
The Airport Relations Commission meets on the second Wednesday of each month at 7:00 p.m. in the
small conference room. However, the meeting in November will be rescheduled due to the Veterans Day
holiday. Typically, the Commission does not meet in Deceinber.
PUBLIC HEARING
A) RESOLUTION 2015-81 ADOPTING ASSESSMENTS FOR VICTORIA ROAD SOUTH
RECONSTRUCTION
Assistant City Engineer Ryan Ruzelc explained that City Council approved the reconstruction of Victoria
Road as a 2015 project. The project had been behind schedule, is currently in catch-up mode, and it is
anticipated to be completed yet tlus fall.
October 20, 2015 Mendota Heights Ci.ry Counci! Page 2
The area of Victoria Road that was reconshucted this yea.r was
Avenue. The area consists of single-family and multi-family units.
budget. The total construction costs for the Victoria Road South
indirect costs, is approximately $1,900,000. This includes 25% for
and finance. Funding sources for the project are proposed as foilows:
$335,850 through special assessments
$751,000 from City bonding
$500,000 from Municipal State Aid account
$333,997 from Stormwater Utility fund
from Marie Avenue to Lexington
It was noted that the project is on
Reconstruction project, including
legal, engineering, administration,
The City's assessment policy is to assess 50% of the assessable cost to the benefitting property owners.
The City will be fiulding the storm sewer, trail, and other appurtenant worlc improvements at 100%.
According to the City's assesslnent policy, the assessment for this project would llave equaled $16,706.
However, staff is proposing to cap the assessments for single-family homes at $8,950 and multi-unit
homes at $6,500. An appraisal was completed that conferred with the proposed assessments on this
proj ect.
Councilmember Duggan moved to open the public hearing.
Councilmember Petschel•seconded the motion.
Ayes: 5
Nays: 0
There are a number of properties that are contesting the assessments as proposed. Written objections to
the proposed assessments have been received from: Mr. Bruce Russell, 1823 Victoria Road South;
Allan Isaacs, 1831 Victoria Road South; Dennis Stern, 1837 Victoria Road South; Gunnar Larson, 1817
Victoria Road South.
Also, a letter contesting �he proposed assessments has been received from Larlcin Hoffinan Attorneys,
representing the foilowing 20 property owners: Russell LaPlante, 1810 Victoria Road South; Jodell T.
Vidas, 1812 Victoria Road South; Mary Weinberger, 1814 Victoria Road South; Miles H and Alleen
A. Snyder, 1900 Victoria Road South, Unit A; Barbara A. Coughlan, 1900 Victoria Road South, Unit
B; Sheila M. Fitzgerald, 1900 Victoria Road South, Unit C; Fredricic R. Wysolci and Kathleen A.
Whaley, 1900 Victoria Road South, Unit D; Karen E. Moss, 1900 Victoria Road South, Unit E; Ronald
J. Larson, 1900 Victoria Road South, Unit F; Danel and Mary Raines, 1900 Victoria Road South, Unit
G; Norine O'Brien, 1900 Victoria Road South, Unit I; Mary K. Orme, 1900 Victoria Road South, Unit
J; Louise A. Rev Tst Eggleton
1900 Victoria Road South, Unit L; Sheila A. Culligan, 1900 Victoria Road South, Unit M; Patrice C.
Walsh, 1900 Victoria Road South, Unit N; Charlotte D. Damian, 1900 Victoria Road South, Unit 0;
Robert C. and Yvonne M. Momsen, 1900 Victoria Road South, Unit P; Bradley L. Beatty, 1900
Victoria Road South, Unit Q; Thomas John Trust AG Virnig (Thomas Virnig) Carole Le Trust Agre
Virnig (Carole Virnig) 1900 Victoria Road South, Unit R; Karen E. Jacobson, 1900 Victoria Road
South, Unit K.
These two letters will become part of this public record.
October 20, 2015 Mendota Heights Czry Council Page 3
Comments from the audience included:
Mr. Biuce Russell, 1823 Victoria Road South, noted that he was spealcing for himself and other property
owners including Allan Isaacs (1831 Victoria Road South), Dennis Stern (1837 Victoria Road South),
and Gunnar Larson (181'7 Victoria Road South). He referred to the assessment roll for the Victoria Road
South reconstruction project. He spoke about prior assessments paid by these four properties for the
Rolling Green Addition which was $10,803 per parcel. He stated that only these four properties are
being aslced to pay for major rebuilds to city roads twice. They were assessed a total of $10,803 with the
Rolling Green Addition and now it is proposed that they be assessed an additional $8,950 for the
Victoria Road South project. He aslced for a reduction in the assessments for these four properties to the
rehabilitation rates of $3,850 to bring their total assessments in line with the other properties in the
Victoria Road South project.
Assistant Engineer Ruzek located the four properties on the map and explained that they were platted
with the Rolling Green Addition. The developer at that time laid out the lots and assessed everyone in
the Rolling Green plat an equal amount — approxiinately $10,000. In 2014, the City rehabilitated
Rolling Green Curve and the assessment for this project was $3,850. The four properties in the Rolling
Green plat who have access onto Victoria Road are proposed to be assessed the full amount for the
Victoria Road South project.
To clarify, Mayor Krebsbach noted that the previous assessment being referred to was when the
neighborhood was being built — in the 1980's. There have been no other assessments until the one under
consideration this evening.
Additional lengthy discussions toolc place regarding what is and what is not assessed during a street
reconstruction and the materials used for sewer and gutter, sanitary sewer, and water mains.
Mr. Rob Stefonowicz, an attorney with Larlcin Hoffman Attorneys, representing 20 property owners
highlighted a few points on their objections:
p His clients would not garner an immediate benefit to their property of increasing value by $6,500
• The appraisal report the City is relying on is severely flawed
• Assessments applied to neighboring properties are more in line with what his clients feel is fair
and equitable
In response to Mayor Krebsbach request, Attorney Lehma.nn explained what a`special assessment' is.
Ms. Mary Stern, 1837 Victoria South, asked why they had to have their curb and gutter torn out and
replaced. Assistant Engineer Ruzelc replied that not the entire horseshow had culb and gutter. The best
solution was to remove what was there, replace it all to be consistent in grading and drainage.
Councilmeinber Norton moved to close the public hearing.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
October 20, 2015 Mendota Heights City Cou�zcil 1'age 4
City Attorney Lehmann added that the Council now has the flexibility to adopt the assessment or
change/amend the assessment amounts with regards to the issues presented. Public Worlcs Director/City
Engineer Mazzitello, in response to a question raised by Councilmember Petschel, noted that the amount
owed to the contractor for the project is fixed by the contract. If any of the proposed assessments were
reduced, that portion of the project costs would be covered by the City's share of municipal bonds.
Mayor Krebsbach, in response to the three issues raised cominented:
1. The homes assess.ed in the 1980's — there is always an assessment sitting out there when a lot is
purchased. This particular developer put the assessment into the purchase pacicage.
2. The neighborhood that was referred to by Attorney Stefonowicz was a rehabilitation project —
not a reconstruction project. Also, Victoria Road South was an open ditch road and there is a
definite difference in value and aesthetics between a paved road without curb and gutter and a
paved road that includes curb and gutter.
3. She would be more inclined to consider a reduction in assessment for the homes that had curb
and gutter replaced due to consistency with the new rather than a replacement of damaged curb
and gutter.
Councilmember Norton moved to adopt RESOLUTION 2015-81 ADOPTING AND CONFIRMING
ASSESSMENTS FOR THE VICTORIA ROAD SOUTH NEIGHBORHOOD IMl'ROVEMENTS
(PROJECT #201308a).
Councilmember Petschel seconded the motion.
Councilmember Duggan pointed out:
1. That staff has not given any indication how effective the cuxb and gutter was before the
replacement versus the requireinent for a new one
2. He would be uncomfortable giving fuli consideration to the prior assessment imposed in the
1980's as roads deteriorate over time and it's been over 30 years
3. In regards to the speciai assessment not being of benefit to the properties, they have a point as
they only have one entrance. However, they still have to use the main roads to get to that
entrance.
Councilmember Norton calied the question, which therefore required the vote.
Ayes: 5
Nays: 0
Mayor Krebsbach commented that the difference between the assessed amount and what was intended
as an offer by the property owners is too wide of a discrepancy for her to support.
NEW AND UNFINISHED BUSINESS
A) AUTHORIZE PREPAItATION OF A FTNANCIAL MANAGEMENT PLAN
City Administrator Mark McNei11 explained that one of the items discussed in preparation of the 2016
budget was to compiete a study of the City's long ter�n finances, both strategically and comprehensively.
Mendota Heights is justifiably proud of its AAA bond rating that is due in part to some conservative
October 20, 201 S Mendota Heights Ciry Council Page 5
spending patterns that has been a tradition and also the fact that there is a strong General Fund reserve.
However, it should be made certain that it is sustainable in the long term.
Finance Director Kristen Schabacker and City Administrator McNeill spolce with Ehlers and Company,
the City's financial advisor, about completing a financial management plan for the Cifiy. To complete
this plan, they would look at a number of items, including existing debt, anticipated capital expenditures,
future debt, t� base growth, and anticipated future operating expenses. In the end, the City would have
a 10-year budget and capital improvement plan with a funding strategy. This is also something that
bond-rating agencies would view favorably.
The proposed cost from Ehlers to complete this financial management plan is $10,000. City
Administrator McNeill spolce with Finance Director Schabacicer about her ability to do some of this
worlc, and she would certainly be involved very heavily with this. They both feel that this would be very
advantageous to have an outside agency look at this to ensure that the things the City has been doing
over the years are correct and, if not, they would come in with other recommendations.
Councilmember Petschel voiced her 100% support of tlus action.
Sefore malcing his motion, Councilmember Duggan explained that this proposal costs a lot less money
than hiring a Communityand Economic Development staff and director.
Councilmember Duggan moved to authorize Ehlers and Company to prepale a Financial Management
Plan for the City of Mendota Heights, at a cost not to exceed $10,000.
Councilmember Norton seconded the motion.
Mayor Krebsbach commented that it's time for the City to talce a comprehensive loolc at the different
revenue opportunities.
Councilmember Norton made note of the aging infrastructure of the City, the Police Station, the Fire
Hall, and a number of projects where parts are aging that the City needs to talce a loolc at how they
would fund those things going forward.
Ayes: 5
Nays: 0
B) MOTION TO RESCIND OCTOBER 6, 2015 DECISION ON WATER SERVICE AGREEMENT
— REQUESTED BY COUNCILMEMSER ULTAN DUGGAN
City Attorney Tom Lehmann explained that a motion to rescind is a recognized motion used to talce a
second loolc at an item that was previously voted on. It requires a majority vote to rescind the previous
inotion. If it passes, then it is lilce the deliberations are starting over with regards to the item being
decided.
In this case, a motion was made and seconded with regards to the St. Paul Water Contract. A
councilmember has now aslced to have it rescinded.
October 20, 201 S Mendota Heights City Council Page 6
Councilmember Duggan moved to rescind the October 6, 2015 decision on the water service agreeinent,
which was to not approve the transferring of the City of Mendota Height's water seivice infrastructure to
St. Paul Regional Water Service.
Councilmember Petschel seconded the motion.
Ayes: 3 (Duggan, Norton, Petschel)
Nays: 2 (Povolny, Krebsbach)
Councilmember Duggan cormnented that the reason he moved to rescind is that, after the last voting,
Councilinember Norton had mentioned that he could have gone either way in the discussion and he
believes others could feel that way as weil. He stated that, per his calculations, the City would save
approximately $1.6M that would go a long way towards some of the improvements that have been put
ofF. He noted other financial considerations and items in the proposed contract that would be very
beneficial and advantageous for the City.
Mayor Krebsbach noted the strength of the buy-bacic clause is the reason she supports the contract and
has been interested in that section. She had an opportunity since the last meeting to get additional
needed clarification on the buy-back timeline. She also aslced for confirmation that the City would have
first opportunity to buy-bacic shouid the SPRWS be sold or dissolved.
Extensive handouts which had been created by staff were distributed. These detailed the potential
savings, both short and long-terrn, as a result of the transfer.
Councihnember Povohry suggested the City reseasch hiring a contractor to repair brolcen mains and
purchase the water wholesale.
Lengthy discussions continued on the perceived benefits and perceived harms of agreeing to the
proposed contract, both for the City of Mendota Heights and for St. Paul Regional Water System — short
term and long term.
In response to a comment made that St. Paul Regional Water System wants the City of Mendota Heights
infrastructure and it is believed that they would be willing to reopen discussions in 6 months to a year
from now should the City change its mind, Engineer Mazzitello stated that SPRWS has indicated to him
that this is tlie Councii's last chance for an acquisition agreement. If the City comes bacic in a year and
decides to have SPRWS purchase the infrastructure, it is off of the table.
If no action is talcen tonight on the acquisition agreement, the retail agreement that is cui�rently in piace
will get a short extension and SPRWS would begin negotiating with the City on a new retail agreement.
Councilmember Duggan moved to approve the OMNIBUS AGREEMENT BETWEEN THE CITY OF
MENDOTA HEIGHTS 'AND THE BOARD OF WATER COMMISSIONERS OF THE CITY OF
SAINT PAUL.
Councilmember Petschel seconded the motion.
Ayes: 4(Duggan, Norton, Petschel, Krebsbach)
Nays: 1 (Povolny)
October 20, 201 S Mendota Heig/�ts City Coznzcil 1'age �
C) APPROVE OUT OF STATE TR.AVEL REQUEST FOR POLICE DEPARTMENT
Cluef of Police Michael Aschenbrener requested approval for travel expenses for two police o�cers to
assist the Mutual Aid Assistance Group (MAAG) training at Fort McCoy in Sparta, WI. The MAA.G
t�aining itself is included in the membership dues, lodging and meals are also included. The only
expense to the City wouid be mileage and fuel, estimated to be $103.77.
Councilmember Duggan moved to authorize staff to attend the training as representatives of the City of
Mendota Heights Police Department.
Councilmember Norton seconded the motion.
Ayes: 5
Nays: 0
COMMUNITY ANNOUNCEMENTS
Assistant to the City Administrator Tamara Schutta made the foilowing announcements:
• Open House scheduled for October 21 at Henry Sibley High School from 5-7:00 pm regarding
discussion on the Mendota-Lebanon Hilis Greenway Highway 110 Crossing Project.
• On October 24 the Mendota Heights Police Officers will be participating in a Special Olympics
event from 11 - 3:00 pm and 4— 8:00 pm as wait staff at Red Robin in Apple Va11ey. Ali tips will
be donated to Special Olympics.
• The Halloween Bonfire is scheduled for October 31 at Mendota Plaza from 7-9:00 pm.
Residents can drop off brush from October 24 through October 29.
• The firefighters are out selling dance ticicets. The dance will talce place on November 13 at the
Mall of America Hilton fiom 8:00 pm to 12:00 am.
s Fresh `n Natural food store has opened at Mendota Plaza.
COUNCIL COMMENTS
Councilmember Duggan expressed his thanics to the Council for going along with him in rescinding the
decision made at the last Council meeting. There was good discussion, everyone was able to express his
or her feelings, and gain a better understanding of the issue.
Councilmember Norton, on behalf of the City, expressed sylnpathy for the loss of Aiticen County
Deputy Steven Sandberg, who was shot on October 19, 2015.
Councilmember Petschel shared something she saw at a four-way stop. It was a sign posted under the
regular stop sign that said "Drive as if your children live here". She aslced if this could be something
that the City could do on• some of the more rislcy intersections — lilce Decorah. City Engineer Mazzitello
replied that he would look into this.
October 20, 2015 Mendota Heights City Coauzcil 1'age 8
Mayor Krebsbach acknowledged the passing of three Mendota Heights residents; John and Carolyn
Cochran, and State Senator Stanton. She also noted that there is a forum for school board candidates on
Thursday, October 22, at City Hall beginning at 7:00 pm.
Mayor Krebsbach encouraged residents to bring their children to the Halloween Bonfire.
Councilmember Duggan aslced for an update on the off-leash dog area. He aslced if it being used by the
residents and their dogs? City Administrator McNeill reported the area has been open for two weeks and
there have been few comments.
It was noted that the next meeting for the Airport Relations Commission will be held on November 10,
due to the Veteran's Day holiday. It was also noted that the next City Council meeting on Noveinber 3`d
will start at 8:00 p.m. due to the school board election.
.� � •
Councilmember Duggan moved to adjow7i.
Councilmember Petschel•seconded the motion.
Ayes: 5
Nays: 0
Mayor Krebsbach adjourned the meeting at 9:40 p.m.
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Sandra Krebsbach
Mayor
ATTEST:
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Lorri Smith
City Clerlc
Octobe�• 20, 2015 Mendota Heights City Coa�ncil Page 9