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2017-10-30 Council Special MeetingCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Special Meeting Held Tuesday, October 30, 2017 Pursuant to due call and notice, 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 Paper and Petschel were also present. Councilmember Duggan arrived at 7:05 p.m. Councilmember Miller was absent. PUBLIC HEARING A) RESOLUTION 2017-92, ADOPTING AND CONFIRMING ASSESSMENTS FOR THE MENDOTA HEIGHTS ROAD AND KENSINGTON STREET IMPROVEMENTS Chad Davidson, representing Stantec, presented the resolution adopting assessments for the Mendota Heights Road and Kensington Street improvements project. Mr. Davidson reviewed the scope of the project, the costs of the project, the funding sources and the assessment calculations. It was noted that the interest rate of the assessments was set at 2% above the interest on the bonds sold for the project. Councilmember Petschel moved to open the public hearing. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 (Absent: Miller) Mr. Greg Quail, 963 Wagon Wheel, stated concerns he had about the timing of the traffic signals at the intersections of Mendota Heights Road/Dodd Road and Lexington Avenue/Highway 110. It was noted that MnDOT controls the signals and will be updating the signal at Mendota Heights Road and Dodd Road in the future. Ed Wing, 2591 Heritage Drive, asked that the sound in the room be increased. Mayor Garlock moved to close the public hearing. Councilmember Duggan seconded the motion Ayes: 4 Nays: 0 (Absent: Miller) Councilmember Duggan asked if the proposed deferrals should be noted in this resolution. Administrator McNeill stated that the resolution should reflect all assessments to be levied. October 30, 2017 Mendota Heights City Council Page 1 of 4 Councilmember Petschel moved to adopt RESOLUTION 2017-92, ADOPTING AND CONFIRMING ASSESSMENTS FOR THE MENDOTA HEIGHTS ROAD AND KENSINGTON STREET IMPROVEMENTS. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 (Absent: Miller) NEW AND UNFINISHED BUSINESS A) AUTHORIZING SIGN REPLACEMENT FOR THE MENDOTA HEIGHTS ROAD AND KENSINGTON STREET IMPROVEMENTS Chad Davidson presented a request to authorize signage replacement in conjunction with the Mendota Heights Road and Kensington Street improvement project. The signs are in need of replacement due to their diminishing reflectivity and legibility. It was noted that street signs are typically replaced in conjunction with street reconstruction or rehabilitation projects to be compliant with state and federal regulations. Staff requested proposals from two signage companies. The lower quote received was from Advantage Signs and Graphics, Inc. at a price of $18,432.89. Upon a question from Councilmember Paper, Mr. Davidson stated that cost for signage replacement was included in the cost of the street project. Councilmember Petschel moved to AUTHORIZING SIGN REPLACEMENT FOR THE NIENDOTA HEIGHTS ROAD AND KENSINGTON STREET IMPROVEMENTS. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 (Absent: Miller) (B) RESOLUTION 2017-93, DEFERRING THE SANITARY SEWER ASSESSMENT FOR 2535 CONDON COURT City Administrator Mark McNeill presented Resolution 2017-93, deferring the sanitary sewer assessment at 2535 Condon Court for the Mendota Heights Road and Kensington Street improvement project. The property is unable to connect to sanitary sewer at this time. It is proposed to defer this assessment for one year, or until the property owner is able to connect to sanitary sewer. Councilmember Petschel moved to approve RESOLUTION 2017-93, DEFERRING THE ASSESSMENT FOR SANITARY SEWER FOR PROPERTY LOCATED AT 2535 CONDON COURT FOR THE MENDOTA HEIGHTS ROAD & KENSINGTON STREET IMPROVEMENT FOR ONE YEAR. Councilmember Duggan seconded the motion. Ayes: 4 Nays: 0 (Absent: Miller) Octobe�• 30, 2017 Mendota Heights City Council Page 2 of 4 (C) RESOLUTION 2017-94, DEFERRING THE STREET ASSESSMENT FOR 2455 VISITATION DRIVE City Administrator Mark McNeill presented Resolution 2017-94, deferring the street assessment at 2455 Visitation Drive for the Mendota Heights Road and Kensington Street improvement project. State statute allows residents to defer special assessments for undeveloped property. The City can determine if an assessment will accrue interest, set the associated interest rate, and determine if the interest is due annually or at the time of payment. The request from Monastery of the Visitation is requesting that two parcels be deferred. The parcel located to the south of Mendota Heights Road is undeveloped at this time. Deferment of the assessment would be in compliance with state statutes. The interest on the assessment would continue to accrue during the deferment period. The parcel to the north of Mendota Heights Road is mostly undeveloped, with the exception of a small portion of a parking lot along Visitation Drive and the southern half of the soccer field. Generally, an assessment of this nature would meet state requirements. Councilmember Petschel questioned how frequently an undeveloped parcel is deferred. City Attorney Tom Lehmann stated that it is not uncommon in other cities, however, Mendota Heights does not have many undeveloped parcels remaining. Mr. Lehmann stated that the assessment does need to be paid at some point in time and that the City could choose to defer only the principal amount or the principal and interest amounts. He stated that when an undeveloped parcel of land receives a deferment, it is assumed that the property will be developed at some point in the future. Councilmember Petschel stated this is very unusual and she is struggling with this deferment since she knows the property will never be developed. She asked what the impact is on the City if these two parcels were deferred. Mr. McNeill stated that if the interest were paid annually by the property owner, then it would be less of a burden on the City. Councilmember Paper stated that he does not see a hardship and cannot find a reason to approve the deferment since the property owner has no intent to develop the property. Councilmember Duggan moved to approve Resolution 2017-94, Deferring Street Assessment For 2455 Visitation Drive For The North And The South Parcels, Deferring The Principal and the Interest Payments For 10 Years. The motion died for lack of a second. Council member Petschel moved to approve RESOLUTION 2017-94, DEFERRING THE STREET ASSESSMENT FOR 2455 VISITATION DRIVE FOR THE SOUTH PARCEL ONLY, DEFERRING ONLY THE PRINCIPAL PAYMENT FOR 10 YEARS, WITH THE 1NTEREST TO BE PAID ANNLJALLY. The motion was seconded by Councilmember Duggan. Ayes: 4 Nays: 0 (Absent: Miller) October- 3Q 2017 Mendota Heights City Council Page 3 of 4 • � • �► Mayor Garlock stated that the Council would be holding a closed session meeting immediately after the adjournment of this meeting. Following the closed session, the Council would be going back into open session to hold a work session meeting to discuss a joint facilities partnership. Councilmember Duggan moved to adjourn the meeting. Mayor Garlock seconded the motion. Ayes: 4 Nays: 0 (Absent: Miller) Mayor Garlock adjourned the meeting at 7:50 p.m. ���-�� Neil Garlock Mayor ATTEST: . Lorri Smith City Clerk October 30, 2017 Mendota Heights Ciiy Council Page 4 of 4