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2017-07-18 Council MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, July 18, 2017 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Garlock called the meeting to order at 7:00 p.m. Councilmembers Miller, Petschel, Duggan, and Paper were also present. PLEDGE OF ALLEGIANCE Council, the audience, and staff recited the Pledge of Allegiance. MOMENT OF SILENCE — IN MEMORY OF OFFICER SCOTT PATRICK Mayor Garlock read a brief statement regarding Officer Scott Patrick and how he lost his life in the line of duty on July 30, 2014. The Council, staff, and the audience observed a moment of silence in memory of Officer Scott Patrick, Badge #2231. AGENDA ADOPTION Mayor Garlock presented the agenda for adoption. Councilmember Duggan moved adoption of the revised agenda. Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Mayor Garlock presented the consent calendar and explained the procedure for discussion and approval. Councilmember Petschel moved approval of the consent calendar as presented and authorization for execution of any necessary documents contained therein. Councilor Duggan requested the pulling items A) Approval of July 5, 2017 City Council Minutes, D) Approval of Temporary Liquor License for Holy Family Maronite Church, and F) Approve Private Water Main Agreement for the Mendota Plaza Expansion. July 18, 2017 A�endota Hetghts City Councrl Page 1 of 18 6.a Pulled for Separate Consideration 6.b Approval of July 5, 2017 Council Work Session Minutes 6.c Approval of Council meeting start time for August 1, 2017 and November 7, 2017 6.d Pulled for Separate Consideration 6.e Approval of Amendment to the City Administrator Employment Agreement 6.f Pulled for Separate Consideration 6.g Accept Notice of Retirement of Mike Maczko, and Authorize Staff to Begin Recruitment of a Maintenance III Worker within Public Works 6.h Approval of Par 3 Golf Course Maintenance Worker Lead Position, Seasonal Pay Matrix Amendment and D 6.i Acknowledge Fire Synopsis Report 6.j Approval of Claims List Councilmember Miller seconded the motion. Ayes: 5 Nays: 0 PULLED CONSENT AGENDA ITEM A) APPROVAL OF JULY 5, 2017 CITY COLJNCIL MINUTES Councilmember Duggan, referencing the section of the minutes relating to the Mendota Plaza Planned Unit Development, asked if the Paster Properties had been informed about the concern in relation to the vehicles and the loading dock for the upcoming changes to the South Plaza Drive area. City Administrator Mark McNeill replied that staff was not certain that Paster Properties had been specifically notified is unlcnown. He said that staff will ensure that they are made aware. Councilmember Duggan moved to approve the July 5, 2017 City Council Minutes Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 D) APPROVAL OF TEMPORARY LIQUOR LICENSE FOR HOLY FAMILY MARONITE CHURCH Councilmember Duggan expressed his desire to alert the new Police Chief to previous parking issues which had been experienced previously had during this event. Councilmember Petschel moved to approve a Temporary On-Sa1e Liquor license for Holy Family Maronite Catholic Church for September 8-10, 2017, and also for the use of the City Ha11 parking lot for overflow parking. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 July I8, 2017 Mendota Heights Ciry Cou��cil Page 2 of 18 F) APPROVE PRIVATE WATER MA1N AGREEMENT FOR THE MENDOTA PLAZA EXPANSION Councilmember Duggan, referencing the top of page 3 of the agreement, noted that he was amused by the word "burdened" but had no suggestions for changing it. However, this was followed by ". .. contained a perpetual easement ..." and he was unsure if `contained' should be changed to `contains'. Councilmember Petschel replied that she read this and felt that it should remain as past tense. She believes that the tense was referring to the original water agreement, which St. Paul Regional Water Services wishes to terminate and replace with the new agreement. Councilmember Duggan disagreed; however, if the Council believed it to be alright then he would go with it. Councilmember Duggan then referenced the first paragraph on page 5 of the agreement, which read, "In the event of nonpayment by an Owner, the Board reserves the right to deny service to any Parcel owned by the non-paying Owner". He stated that he is uncomfortable with the `deny service to any Parcel owned by the non-paying Owner" as it implies that any other property owned by the non-payer could be denied service. Mr. McNeill replied that there are four parcels covered by the same agreement and he was certain that was what the intent had been. He suggested that the sentence be changed to read "any Parcel in Mendota Heights." He also noted that this was not a document that the City authored, this was from the St. Paul Regional Water System and that their board had approved this language. ]He said that if the City were to make modifications to the agreement, it would have to go back to the SPRWS board. Councilmember Duggan suggested that the changes be made `subject to the approval of the St. Paul Regional Water System'. Councilmember Petschel expressed her disagreement saying that the parcel has four pieces and to her the intent was very clear that they would shut off the water that was on those four parcels. She then asked City Attorney Tom Lehmann for his opinion. Counsel Lehmann stated that his interpretation was that when they talk about `owner' it is as set forth in the very first page and it defined who the owners were; specifically four owners as set forth — Mendota Mall Associates — WAG, LLC ("Owner 1"), Mendota Mall Associates, LLC ("Owner 2"), Mendota Mall Associates — Outlots, LLC ("Owner 3"), and Mendota Plaza Apartments, LLC ("Owner 4"). Therefore, when it spoke about shutting off water service to the owners, it is defined within the four corners of this document as those four. He said that if the concern was that it could be interpreted broadly, if someone decided to pursue it, any ambiguity would be resolved against the draft or, in this case, the Board of Water Commissioners for the City of St. Paul. However, to him, it was pretty clear that it was talking about `owners' being those four parties with regards to this private water main agreement. He agreed that the point could be construed broadly; however, in this case it was pretty well laid out who those owners are. Councilmember Duggan pointed out that the agreement reads `by the non-paying owner', one possibly of four. He questioned if this could possibly include that `owner's' home. Counsel Lehmann replied that this agreement is specifically limited to the owners for those properties. The agreement lays out that "Owner 1" owns and then it gives the property's legal description [which was omitted from the City Council packet]. He said that it defined pretty clearly who these owners were. If one of these owners failed to pay, the SPRWS would have the right to deny service to them. July 18, 2017 Me�Zdota Heiglats City Council Page 3 of 18 Councilmember Duggan then asked if the proper term should be `deny service to the Parcel owned by the non-paying Owner." Counsel Lehmann replied that this would make the agreement clearer; however, he did not feel that the Council needed to go to that extent. The concern would be that if this document has to go back for the revisions to be accepted, then it would have to come back to the Council for approval. Councilmember Duggan disagreed that it would have to come back to the Council. Again, Councilmember Petschel expressed her disagreement by stating that, as Counsel Lehmann explained, the four owning entities have been described in detail in the opening part of the document. She said that clearly this document only referred to those parcels, and she would hate to have to send this document back to the Water Board, then to have it come back to the Council. The Plaza Development would be delayed by changing what seemed to be an unnecessary change in a document where the language has already been approved by both parties. Councilmember Duggan asked Councilmember Petschel if she disagreed when it says `reserves the right to deny service to any Parcel owned by the non-paying Owner'. Councilmember Petschel replied that this was very clear to her because the Owners and the Parcels were spelled out in the opening part of the contract. Councilmember Duggan disagreed as this specifically said `non-paying Owner' — singular of those four —`any Parcel owned'; deleting the word any and replacing it with the word "the" would solve the problem. Councilmember Petschel disagreed that there was a problem. Mayor Garlock asked City Attorney Tom Lehmann for clarification that he saw no issue with the language contained in the agreement. Counsel Lehmann replied that he saw no problems; however, he could see where Councilmember Duggan was coming from. But looking at the four corners of this document, he felt that it was pretty well spelled out which parcels were set forth in this document and it was known who the owners were. Mayor Garlock noted that the Council listened to Councilmember Duggan's concerns, and the legal counsel said that it would probably not be a problem down the road. Mayor Garlock moved to approve the Private Water Main Agreement for the Mendota Plaza Expansion and authorizing the Mayor and City Administrator to execute the document. Councilmember Petschel seconded the motion. Ayes: 4 Nays: 1 (Duggan) PUBLIC COMMENTS There were no public comments PRESENTATIONS No items scheduled July 18, 2017 Me�zdota Heiglits City Couizcal Page 4 of 18 PUBLIC HEARING A) RESOLUTION 2017-56 APPROVING MUNICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHABILITATION PROJECT - CONTINUATION Public Works Director Ryan Ruzek introduced Ms. Molly Kline, Area Engineer from the Minnesota Department of Transportation (MnDOT) and stated that MnDOT was seeking municipal consent regarding right-of-way acquisitions that are outside of the existing MnDOT right-of-way. Mr. Ruzek said that there are a number of properties which needed some storm sewer replacement, as well as clean up some old plat files. He also noted that this is a continuation of the public hearing that occurred on June 20, 2017 and; therefore, once Ms. Kline had made her presentation, the Council would need to reopen the public hearing and address comments from the public. Notices had been sent to the affected property owners prior to this current meeting. Ms. Kline went through the June 20th presentation. She said that MnDOT has a project on State Trunk Highway 149 (Dodd Road) from George Street to I-494 for the summer of 2018. It is an estimated $7.8 million project, and includes a trail segment that the City has estimated; it could potentially be tied to this project. The estimate would change if the trail is not included in the project. The project includes pavement resurfacing, ADA improvements at the intersections, drainage improvements (including ditch grading and pipe replacement), signal replacements, turn lane construction, and the removal of ash trees throughout the corridor. The project is anticipated to occur in the spring through fall of 2018. In Mendota Heights, the drainage replacement would require short-term closures. MNDOT is working with city staff as to when to incorporate those road closures and what the detour routes should be. They anticipate either night closures or weekend closures; however, the anticipation is not to have peak time impacts to the traveling public. There would also be a very short-term turn lane closure on I-494 while they incorporate that turn lane construction. MnDOT has identified 13 parcels where they need to purchase right-of-way; one on Highway 13, and twelve on Highway 149. She shared images of the affected parcels and explained the need for the purchases. Mayor Garlock moved to reopen the pubiic hearing. Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 Ms. Amy Nelson-Sander, 1119 Delaware Avenue, stated that her property is on the corner of Dodd Road and Delaware Avenue. She was contacted by MnDOT the preceding day and received some clarification, but not a lot. She noted that there are three very laxge trees that, which she has been told are the oldest in Dakota County. She expressed concern that these trees would be removed as part of this project. Ms. Kline stated that she currently does not have the information on those trees but she would contact Ms. Nelson-Sander. July 1$ 2017 tllen�dota Heights City Cou�2cil Page 5 of 18 Mr. Eric Sander, 1119 Delaware Avenue, expressed his concern about drainage along the right-of-way and if it were to be carved back it would expose that area to additional erosion. Ms. Kline agreed to contact Mr. Sander as well. Seeing no one else coming forward, Councilmember Petschel moved to close the public hearing. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 Mr. Ruzek explained that the Council has three resolutions to consider; one for approval of the Municipal Consent, one for denial of the Municipal Consent, and the other for waiving Municipal Consent. He also noted that the Council has 90 days until official action needs to be taken if the Council would like to verify with the property owners who had concerns, before moving forward with one of the resolutions. Councilmember Duggan asked what would happen if MnDOT was not able to resolve the situation at 1119 Delaware to the owners' satisfaction? Mr. Ruzek replied that MnDOT could choose to not make improvements in that area, which would risk failures to the existing storm sewer infrastructure. He did explain that MnDOT has come out with its "90% complete" plans. and he was unaware of any tree removals along that area. However, they would be replacing the existing bituminous curb with a concrete curb and gutter. It did not appear to increase the footprint of Dodd Road in that area. Any disturbed areas would be re-vegetated. Councilmember Petschel asked now that the Council has become aware of the residents' concern, if there was anything in the engineering of this project that could assist them in their current erosion concerns? Ms. Kline replied that they would need to take a look at what is going on there today. However, the project is coming in the very near future, and one last summer of the current conditions might not necessitate any action on their part. MNDOT could look at it and make sure that they would be making it better instead of worse. Councilmember Petschel moved to adopt RESOLUTION 2017-56, RESOLUTION APPROVING 1VIL7NICIPAL CONSENT FOR THE MNDOT HIGHWAY 149 (DODD ROAD) REHABILITATION PROJECT, subject to MnDOT and the property owners at 1119 Delaware Avenue satisfactorily resolving the identified issues. Counsel Lehmann said that from the procedural statutory position, the issue is whether the Council would either approve or not approve it. It could not approve it with conditions, as if those are not resolved, the City must do a formal denial. By not doing anything it becomes effective. Councilmember Duggan suggested that this item be held over to the first meeting in August for the decision, giving MnDOT time to meet with the Sanders and address their concerns. Councilmember Duggan moved to hold this item over to the first meeting in August. Councilmember Miller seconded the motion Ayes: 5 Nays: 0 July I8, 2017 Mendata Heights Ciry Council Page 6 of 18 NEW AND UNFINISHED BUSINESS A) WELCOMING CITY POLICY DISCUSSION City Administrator Mark McNeill stated that several weeks ago, some Mendota Heights residents approached a couple members of the Council and wanted to talk about things relating to immigration, but also practices and policies of Mendota Heights, speciiically the Police Department, relating to such things as nationality, age, gender, disability, and other factors. Informal discussions have taken place; however, it would be appropriate to have the Police Chief talk about what Mendota Heights has as its current policies and procedures. Police Chief Kelly McCarthy gave a brief outline on what the current practices and policies are: • Unconditional respect for all members of the community • The police department does not inquire or investigate issues of immigration status This has been the past practice of the Mendota Heights Police Department and was codified into policy in July of this year. The policy was developed by Lexipol, a nation-wide provider of risk management policies. Before implementation of this policy, officers and members of the community had an opportunity to weigh in on the content of the policy to ensure it was consistent with community standards. The resulting affirms that the police department will not inquire as to the immigration status of any of the citizens. Councilmember Duggan asked if this policy works for the City. Chief McCarthy replied that, as discussed, she was very comfortable with this statement and the policies as it relates to the checking of immigration status. She believes that it is important that the citizens know that the police department not only `talks the talk, but they walk the walk'. She was not terribly comfortable expounding on anything other than the immigration policy or the department's role in enforcing federal immigration law. Certainly, the MHPD obeys all federal and state regulations as they relate to the characteristics listed in the policy; however, she has not had the opportunities to seek input from members of these affected communities to ensure that they are in agreement with it. For example, she said that the needs of the immigration population are very different than the needs of the Asian population as a whole. She wanted to make sure that the department is respectful to all communities and that each one of them gets the time that they deserve. Councilmember Duggan then stated that if the Council were to affirm the current local police policies and practices, those could always be modified later to give consideration to some of the thoughts in the document. Mr. McNeill replied that he was unaware if all of the Councilmembers have had the opportunity to see or review the written policy. The recommendation was not necessarily to adopt this that evening. The preparations made for this evening were to talk about what the current practices are. The Chief has also indicated that staff wants to ensure that if it is something that is going to be adopted, that it meets the needs of those who they intended it to benefit from it. Councilmember Duggan asked if it would be appropriate to have the document read aloud as part of this presentation. Mayor Garlock provided permission for the document to be read. July 18, 2017 Mendota Heights City Council Page 7 of I S Mr. Robin Ehrlich, who lives on Gryc Court, came forward and noted that he was probably the instigator of this topic at this meeting. He explained that shortly after the election there were concerns about legal and illegal immigrants, and immigration status. The Cities of Minneapolis and St. Paul came out with statements of how they dealt with undocumented immigrants. He had sent an email to Councilmembers Duggan and Petschel, as he knows them. After emails back and forth, his email was sent to Chief McCarthy. She came back with what he considered to be a very positive email. As a result, Chief McCarthy and he — along with a few other people — had some meetings to discuss the exact policy that could be put into place. His hope was that this document could be adopted by Mendota Heights as its official policy. He said that it could be published on the Mendota Heights website, and that it could be published in the Mendota Highlights to make it clear to everyone what the policy is in Mendota Heights. If this was not publically made available, the people who might be affected by it would not know about it. He offered to have it translated into Spanish or other languages, and have it posted at the schools and other places where it would be appropriate. Councilmember Petschel expressed her appreciation to Mr. Ehrlich for bringing this forward. She also noted that she believed the concern from Chief McCarthy is that the ordinance came from Lexipol and she would like to leave the ordinance as it is. She would not be that comfortable with the Council re- doing the wording. However, the concern raised by Mr. Ehrlich related to getting a message out on what is the policy in the ordinance, and for the police department and the Dakota County Sheriff's Ofiice. She asked if Mr. Ehrlich would be willing to work with Chief McCarthy on something that could be written and posted. Mr. Ehrlich stated that he was more than willing to work with Chief McCarthy. Councilmember Duggan suggested that the Council: 1. Express appreciation to the people who have worked on this — Mr. Ehrlich, Chief McCarthy, Counsel Lehmann, etc. who have supported and worked on this since December/January 2. Note the recommendation of the Police Chief and Administrator McNeill to continue with the City's existing policies and practices 3. Have Mr. Ehrlich and Chief McCarthy work together to put together a document, get if approved by all of the necessary parties, and bring it back to the Council — probably in August or September. That could then put it into the Heights Highlights and the website Mayor Garlock noted the actual recommendation of the Police Chief and the City Administrator was to continue with the City's existing policies and practices. These policies and practices have been in place for a long time and the City of Mendota Heights has always treated people in accordance with those policies and practices. The City is not an extension of immigration. The City has a long history of `doing the j ob right' . Councilmember Paper stated that the policy is that the City does not ask, it is open, and they don't dig. He then asked what was it that the City is seeking to do differently. Chief McCarthy replied that the only thing she is uncomfortable with is the inclusion of anything other than immigration status in the first paragraph of the policy. She suggested that the first paragraph be removed, which was OK with Mr. Ehrlich. She made this suggestion only because she wanted to be respectful of all of the other populations that are mentioned in the first paragraph. July 18, 2017 Mendota Heights City Councal Page 8 of 18 Councilmember Duggan moved to adopt the document created by Mr. Ehrlich with the removal of the first paragraph as suggested by Chief McCarthy. Councilmember Miller seconded the motion. Upon request, a written copy of the policy was given to Councilmember Paper so he could read it. Chief McCarthy also stated that a copy would be provided to the remainder of the Council. Ayes: 5 Nays: 0 B) RESOLUTION 2017-55 APPOlNT CANDIDATE TO FILL A VACANCY ON THE PLANNING COMMISSION City Administrator Mark McNeill that a resignation from a Planning Commissioner had been received, leaving a vacancy on the Planning Commission. Staff advertised and received seven well qualified applicants, one of whom subsequently withdrew. The Council interviewed the remaining six candidates the preceding night. By consensus, it was agreed that the appointment should go to Mr. John Mazzitello, the former Public Works Director of Mendota Heights. Councilmember Duggan moved to Adopt Resolution 2017-55 A RESOLUTION APPOINTING MR. JOHN MAZZITELLO TO FILL A VACANCY ON THE PLANNING COMMISSION Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 Councilmember Duggan noted for the record that it was a unanimous decision on the part of the Council. He also noted that the City of Mendota Heights is blessed with a plethora of great people who come forward, are subjected to, and burdened with questions from the Council as they try to serve the City. C) AWARD CONTRACT FOR FRIENDLY HILLS WARMING HOUSE CONSTRUCTION City Administrator Mark McNeill explained that at the last Council meeting the Councilmembers heard that staff had received two quotes for the demolition and the replacement of the warming house at Friendly Hills. Because of the size of the contract, staff had recommended that additional quotes be solicited. The two previous bidders were informed and given the opportunity to retain, withdraw, or change their existing quotes. Four additional contractors were contacted and staff received one additional quote. Of the two previous bidders, one increased its bid; the other reduced its bid. In the end, staff considered three bids. The lowest of those was received from Kirchner Contracting, Inc. at $38,120. Councilmember Petschel moved to award a contract to Kirschner Contracting, Inc. to demolish and replace the warming house at Friendly Hills Park at a total cost of $38,120. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 July I8, 2017 Mendota Heigl2ts City Council Page 9 of I8 D) UPDATE TO DAKOTA COUNTY BROADBAND 1NITIATIVE — CRAIG EBELING AND LISA ALFSON City Administrator Mark McNeill explained that more than three years, the City has had work being done by the Dakota County CDA on connecting Dakota County cities to fiber optic. The two individuals who have been working on that came forward to provide an update; Ms. Lisa Alfson of Dakota County CDA and Craig Ebeling, Consutant to the CDA. Ms. Alfson noted that she has been working on this project with Mr. Ebeling for three years. The Dakota County CDA is known for affordable housing and redevelopment efforts; however, they also have Economic Development Authority power, which is why they have gotten into this broadband effort. Ms. Alfson shared a brief history of the initiative: • Build an enhanced/ consolidated network to make government operations more efficient by using existing publicly owned fiber assets — the "I-Net" • Supplement the I-Net to create an enhanced network making the system available for commerce — the "GNet" • Implement a JPA governance model governed by Dakota County and Cities Governments • Implement a wholesale, open access, multi-service business C-Net model — government does not offer any direct retail business or residential services • Make it possible for more network and Internet Service Providers to come into the market • Working together, a"Systems Plan" spelling out how these goals can be met has been prepared Mr. Ebeling shared the Diagram of a Modern Broadband Network, which had been shared previously during this initiative. He described a core network, co-location facilities or nodes, and laterals, drops , and networks. Mr. Ebeling then shared an image of the Dakota County I-Net Schematic, which showed what now exists in Dakota County. He stated that the most important thing for Mendota Heights was to provide a more resilient redundant system. He displayed maps, diagrams, and images showing the physical layout of how the system would work; the locations of the nodes; how the City of Mendota Heights would be served by two core nodes; and the route that would be followed to get to the two core nodes were shared. He said that the C-Net uses mostly existing infrastructure, but allows the governments in the County to capitalize by using the assets. This allows internet service providers in the County to provide better service for the businesses. An image of the Dakota County C-Net Schematic was shown and explained. The I-Net and the C-Net use some, but not all of the same facilities. They do require some supplementing to create a`commercial class network'. He then shared an image of the layout of the C-Net throughout the county. He said that the initial estimated cost for the I-Net is approximately $1.6 million, which was reduced from an earlier estimate of $3 million. July 18, 2017 Mendota Heights City Council Page 10 of 18 Ebeling discussed funding options. He said that initial capital costs for the I-Net could be shared as follows: • Cities would pay the cost of their switches, optics, and costs relating to furnishing an appropriate location for the equipment • Cities would pay their proportionate share of splicing and other construction related costs • Cities would pay for any member's needed lateral fiber optic cable up to 2,000 feet • Dakota County pays for lateral iiber optic cable installations of longer than 2,000 feet • Dakota County pays costs related to the core nodes (a significant amount of the total $1.6 million cost) It has been proposed that the needed one-time capital cost in Mendota Heights (approx. $340,000) for the C-Net would be funded by the Dakota County Community Development Agency. The agency has agreed to consider this but no final approval has of yet been made. Councilmember Duggan asked if there was any urgency, and what this would mean to the City of Mendota Heights? Mr. Ebeling replied that this is the way the Systems Plan is prepared. What is being asked of the cities at the present time is to consider the Systems Plan. There is not any drop dead date on this; the only thing that he wants the Cities to do is to move this along--they believe there are advantages to everyone in having the system implemented and having the consortium in place. It would also create opportunities for a better system for the cities and for, potentially, economic development. There is no outside entity that is pushing anyone to get this done. Councilmember Duggan, referencing the fact that Scott County is already using a system like this, asked if there was a way to receive the information as to what exactly that system may be. Mr. Ebeling replied that their system has been studied extensively as part of this initiative. Councilmember Duggan asked if that information would help the City get a better understanding or grasp of the costs. Mr. Ebeling replied in the affirmative and noted that there was a lot more data to be shared yet this evening. What he really wanted to emphasize is that the engineers they have hired have studied Scott County and hundreds of examples from across the country. All of that information is embodied in the Systems Plan and the answers to what would be obtained and what amounts would have to be paid have already been established. It would also show what the benefits would be to Mendota Heights. Mr. Ebeling continued by stating that once they own something, it has to be operated. This is a significant concern because their engineers estimate that this consolidated system throughout the county would cost about $540,000 a year to operate. The operational costs are proposed to be shared as follows: Operational costs shared based on a series of distribution parameters; in general, the members who own larger portions of the infrastructure will be a proportionately larger share of the operational costs. Assets are being inventoried to provide a basis for this sharing. More inventory work remains. Members will be adding to the system in the future, increasing their share of the total assets managed by the consortium. Thus, it is envisioned that the cost s�iaring proportions will be updated each year. Jaily 18, 2017 Mendota Heights Ci.ty Coulzcil Page 11 of 18 This is not meant to compete with the companies which provide direct service to retail customers or new internet service providers. This is intended to make sure that the governments are well served within the County, and that new internet service providers would provide better, faster, cheaper systems to existing and potentially new businesses. However, the efficiencies would mean that some revenue would be generated. Revenues would be shared based on three cost sharing principles: 45% would go to individual city members who sponsor the C-Net implementation within their city limits 50% of the revenue will go to those members who have provided and will be providing the infrastructure necessary to make the I-Net and C-Net functional. 5% will go to a"pool" to be shared by all members in proportion to their population. Mr. Ebeling stated before that it is difficult to know how quickly and to what extent the system would start to be used by ISP's; however, they had to have some numbers to be able demonstrate how the formulas work. He then shared an example of a suininary spreadsheet: • Of the $1.6 million initial capital project related to the I-Net, the Mendota Heights share is estimated to be $93,682 • Mendota Heights share of the annual $540,000 operational costs would be estimated at $6,753 • If the revenue generated in the County is estimated to be $390,000, Mendota Heights would share approximately $11,000 Councilmember Duggan asked for an explanation of the differences in relation to costs versus the size of the cities listed on the example and asked if there was a formula. Mr. Ebeling replied that the amount of initial capital costs are a function of how much fiber the City owns, and how much fiber is needed to serve the first core needs of the City. In the Mendota Heights case, there are a couple of pretty long runs that needs to be done to make sure a good system is in place. The first one, connecting the Public Works facility, is approximately 1.25 miles long. Most other cities do not have laterals that long to install. This is an example of where the 2,000 foot rule came from. He reviewed the advantages of investing in the I-Net and the C-Net. Councilmember Duggan asked if the businesses would be charged for accessing or being part of the system. Mr. Ebeling replied that the machinery on this goes something like this: • The ISP's would come to the consortium and that they have some customers that we would like to have circuit of a given capacity • The Joint Powers Agency would have a pre-price for that • The ISP would then approach the business and with a service proposal and pricing. Councilmember Duggan asked if those businesses could go and find a private supplier of these same services. Mr. Ebeling replied that the only public part of this is the fact that the consortium would have this network; this network would be available to any private supplier. The retail businesses are not going to do business with the government; Dakota County would not be in competition with any the private sector. However, this is being thought of as an infrastructure improvement. No retail customer would do July 18, 2017 Me�2dota Heights City Council Page 12 of 18 business with either the City or the consortium. However, the business could do business with an ISP that is doing business with the City or the consortium. Mr. Ebeling stated that a decision is at hand. The Systems Plan is completed and now it is being brought before the Council with the question of whether or not the City is still interested. If the City is still interested, then is it willing to sit down and work with the other cities to finalize the actual agreement to create this entity? The goal is to be operational in 2018. Councilmember Petschel asked for clarification that for the City to get into the system would cost approximately $100,000; and the desire is to have this system operational by 2018 means it would be incumbent upon the City to budget $100,000 pretty rapidly. Mr. Ebeling replied that there are lists of things that are in this document; the Systems Plan is 143 pages long with another 100 pages of appendices. He said that the Dakota County CDA would help with financing on that; so the cost could be spread over a few years — it would not be free, but with interest. City Administrator Mark McNeill stated that one of the recommendations that staff has is that the Telecommunications Fund has a balance of approximately $265,000, and would be a logical source of funding which would not impact the levy. Councilmember Petschel stated that this would take a significant period of time to build that fund — it is something that the City would have sit down and look at as a group — taking money from here or there to make it work because their budget is so small — that $100,000 is like another police officer. It would also be another percent in the levy. Mr. Ebeling stated again that this is not something for which the City would receive a bill, unless the City wants to. It would be possible for the City to execute an agreement with the Dakota County SCA to spread those costs out over a period of years. Mr. Ebeling concluded by stating his hope that the City would take this under consideration and that it would continue to be involved in the discussion. He believes that the System Plan is as fair as they know how to make it; there has been thousands of hours of effort put into it, involving a lot of Mendota Heights staff as well in the formulation of these principles. E) AUTHORIZE AWARD OF CONTRACT FOR FIRE STATION FIBER OPTIC EXTENSION Assistant City Administrator Cheryl Jacobson explained that this item specifically relates to the Fire Department and connecting the Department to Dakota County fiber. She shared a map showing the Fire Station and where the existing Dakota County fiber is located. The request is to award a contract for the installation of conduit fiber optic, as well as the purchase of switches necessary for the fire station to connect to that existing Dakota County iiber. It was somewhat related to the topic about which Mr. Ebeling was speaking in the previous discussion-- it is not part of the gap project that has been identified in the Systems Plan, because of the fiber already existing there, and there is the ability to tap into it. July 18, 2017 Mendota Heights Ciry Council Page 13 of 18 Staff has been working with LOGIS, which put together a Request for Quotations (RFQ) for the installation of conduits and fiber optic cable to City Hall, the Fire Department, and Public Worlcs buildings with the purpose of connecting all three buildings to the Dakota County fiber ring or I-Net. That was approved at the June 6, 2017 City Council meeting. LOGIS released and received three quotes and they recommended that the City award the contract to Comlink. Their proposal was $10,962 to connect it to the fire station building. The high bid which was received was $17,112. She said that LOGIS has fully vetted Comlink and has worked with them before; Comlink is a state-approved vendor. In addition to the materials and installation of the fiber connection by the vendor, LOGIS would need to update their switches that are already located at the fire station. LOGIS has submitted a cost proposal in the amount of $6,000. That brought the total for this project to $16,962. Councilmember Miller asked if any future changes to the Fire Station would have any impact on the line that would then be in place. Ms. Jacobson replied in the affirmative, and added that how much would be determined at the time that it was demolished or rebuilt. Staff would account for the placement of that fiber. Councilmember Duggan noted that the proposal mentioned that funds would be available from the Cable Fund to cover costs. He then asked if the City actually had a Cable Fund. Administrator McNeill replied that this was actually referring to the Telecommunications Fund; the City has been getting a percentage from cable subscribers that has been going into that fund; the current balance of which is approximately $265,000. Councilmember Duggan then asked what this proposal would do for the City that is currently not being done. Ms. Jacobson replied that a couple of the benefits would be that the Fire Station itself would have connectivity to Dakota County fiber. If the connection to Dakota County fiber did not occur, that would significantly alter how the City would design the Wi-Fi access within the fire station. In order to re- design without fiber connection and continue with the connection that is currently in place, staff would need an additional appliance that would cost approximately the same as the installation of the fiber connection itself. That Wi-Fi access re-design is important from a systems and operational standpoint, and brings many benefits to fire services and operations. Councilmember Duggan asked if speed of response be one of the benefits. Ms. Jacobson replied that her understanding is that the Fire Department's mapping is still in a book. Perhaps, if they were able to improve connectivity for the fire station with faster connections and faster speeds, they may be able to take advantage of Wi-Fi on-line, and use "cloud-based" sources for mapping purposes. Councilmember Miller confirmed that assumption. Councilmember Duggan moved to award the contract for purchase and installation of conduits and fiber optic cable to Comlink in the amount of $10,962; to approve the purchase of switches by LOGIS in the amount of $6,000; and to approve LOGIS as the project manager for the completion of the Fire Department fiber connection project. July 18, 2017 Mendota Heiglzts City Council Page 14 of 18 Councilmember Duggan asked who from the Fire Department would work with the LOGIS representative. Ms. Jacobson replied that currently the Fire Department has a technology committee established and that she, along with the representative from LOGIS, has met with them and would continue that conversation and updating via that group. Mayor Garlock seconded the motion Ayes: 5 Nays: 0 F) AUTHORIZE THE RELEASE OF REQUEST OF QUOTATIONS FOR FIBER 1NSTALLATION AND CONNECTIONS AT CITY HALL AND PUBLIC WORKS BUILDINGS TO THE DAKOTA COUNTY FIBER RING Assistant City Administrator Cheryl Jacobson explained that this request had been brought to the Council at the June 6, 2017 Council meeting, where the Council approved the release of the Request for Quotations. The reason for this request for approval again was to update and release a Request for Quotations on a modified project; including both the connections to the backbone of the fiber highway and then the lateral connections to Public Works and to City Hall. The existing fiber network is located approximately 1.5 miles away, so this Request for Quotations revision focuses on that stretch of fiber. The original Request for Quotations was approved at the June 6, 2017 meeting, based on information that was available at the time and written to speciiications that were had at the time. LOGIS, acting as the project manager, did release and received three price quotes for this specified work. In the meantime, staff continued to work on conversations with Dakota County Information Technology staff. Administrator McNeill and Ms. Jacobson met with Dakota County Information Technology staff and those discussions resulted in a verbal agreement on the terms of timing and financing this connection of the fiber highway. Right now, the arrangement would be a two-thirds/one-third split, with the County paying two-thirds of the cost as well as provide the materials, and the City would be responsible for remaining one-third. She said that this had not been placed in writing — it is a verbal agreement based on discussions with the County Administrator. The original RFQ had it set up differently. It established that backbone piece of the fiber, and the lateral connection. The fire station was taken care of because that already existed. Staff is requesting that Council authorize the release of three updated Request for Quotations, as follows: 1. For the installation of conduit and fiber optic to connect to the Dakota County fiber ring 2. To complete a lateral connection from Dakota County fiber to City Hall 3. To complete a lateral connection from Dakota County to the Public Works building The reason for the request to re-release the RFQ is because of the additional or supplemental information available, to include Dakota County's specifications, and to divide out the labor and materials costs differently. July 18, 2017 Merzdota Heights City Council Page 15 of 18 Councilmember Duggan asked for confirmation that there are no dollars involved with the Council approving the release of these three RFQ's. Ms. Jacobson confirmed that there are no dollars involved at this time. Councilmember Petschel asked if any of this would be a part of the $93,000 to $96,000 estimate that is coming from Dakota County for the City to buy in to become part of the great system. Would the City be accomplishing anything as regards to addressing that? Ms. Jacobson replied in the afiirmative and explained that would be RFQ number 1. Councilmember Petschel noted that if this does eventually go through, then the City has essentially bought into the greater project without going through a incredibly laborious process. If the JPA goes ahead, the City has already made a significant stride towards becoming part of that greater process. Mr. Craig Ebeling, the consultant from the previous discussion, replied that in order to get that redundancy, there is another element not in Mendota Heights — the fiber would actually go down Mendota Heights Road, crosses over, and goes into Eagan. Councilmember Petschel noted that when she looked at the original plan and where the hook ups would be, irrespective to redundancy done down Mendota Heights Road, this is a significant step towards becoming part of the bigger network. Ms. Jacobson confirmed that this was true. It filled that gap piece but also would fill a need for the City. Councilmember Petschel stated that she knows, particularly in City Ha11 and in the Police Department, they are frequently dealing with transferring items of data that are so large and is taking so long to download, that this would be a tremendous source of efficiency for both City Hall and the Police Department. Ms. Jacobson confirmed. Councilmember Duggan asked whether the City would need to coordinate more with MnDOT in relation to future road construction, as they would be digging to put iiber in. Ms. Jacobson replied that the project manager LOGIS is very familiar with working with MnDOT in trying to even maximize when road construction is happening. Dakota County has also coordinated road construction projects in order to simultaneously get the fiber in the ground at the same time. Councilmember Duggan moved to authorize the Request for Quotation for the installation of conduit and fiber optic to connect to the Dakota County fiber ring; to authorize the Request for Quotation to complete a lateral connection from Dakota County fiber to City Hall; and to authorize the Request for Quotation to complete a lateral connection from Dakota County fiber to the Public Works building Mayor Garlock seconded the motion. Councilmember Paper asked about the depth of the fiber. Mr. Ebeling replied that it varies, but it is usually around 24 — 36 inches deep and is in conduit. This would be on the east side of Lexington. Ayes: 5 Nays: 0 COMMITNITY ANNOUNCEMENTS City Administrator Mark McNeill made the following announcements: July 18, 2017 Mendota Heights City Council Page 16 of 18 • Night to Unite is scheduled for August 1, 2017. If residents have a party that they would like to have someone from the City attend, they should call the Police Department to be put on the list. • The City Council Meeting on Tuesday, August l, 2017 will start at 8:00 p.m. rather than the usual 7:00 p.m. COUNCIL COMMENTS Councilmember Petschel pointed out the scarf she was wearing as being created by Mr. Jimmy Reagan, who lives in Mendota Heights and is challenged with autism. He has found art as his voice, has become an international known artist, and his art has been turned into various pieces that can be purchased. A certain percentage of the proceeds will go to the Ann Connelly Memorial Cancer Research Fund. She also noted that she has had some calls regarding the F-16's jet iighters flying over the City. They have been part of a regional strategic training program that the Air Force has been doing. She believed that the maneuvers are over. Mayor Garlock informed residents of a Fallen Ofiicer Motorcycle Ride on Saturday, July 22, 2017 at the South St. Paul VFW, starting at 9:00 AM. They will start at the location where Officer Scott Patrick was shot and killed, go to the cemetery, and then to other locations. This will also include a fund raiser for fallen officers. Councilmember Miller added to the Mayor's comments, saying that in light of Officer Scott Patrick's remembrance, everyone is reminded of the risks and importance of the job of being a Police Officer, in Mendota Heights, in the County, in the State, and throughout the Country. He asked that the next time a Peace Officer is seen, that people thank them. Councilmember Paper expressed his appreciation to Mr. Mike Maczko for his 34 years of service to the City — he said that he Mr. Maczko mowed a lot of grass, plowed a lot of snow, and dumped a lot of water in the ice arenas, worked nights and weekends, and a lot of time working to make the community the community that it is. He congratulated him on his retirement. Councilmember Duggan reminded residents of "Music in the Park" scheduled for Wednesday, June 19. The entertainer scheduled is a Pat Donahue who has been featured as one of the lead musicians with Garrison Keeler and Prairie Home Companion. He also reminded everyone that the businesses in Mendota Heights, with all of the interruptions on Highway 110 and Dodd Road, desperately need patronage and dollars to keep going. He echoed the comments and sentiments expressed about Police Officers. He said that the same could be said about the Fire Fighters. ADJOURN Councilmember Petschel moved to adjourn. Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 July 18, 2017 Rlendota Heiglzts Ci .ty Cou�7cil Page 17 of 18 Mayor Garlock adjourned the meeting at 9:01 p.m. Neil Garlock Mayor . / I ' ��., � � Lorri Smith City Clerk July 18, 2017 Me�Zdota Herghts City Council Page 18 of 18