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2019-08-20 Council MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, August 20, 2019 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 7:10 p.m. Councilors Duggan, Paper, Miller, and Petschel were also present. PLEDGE OF ALLEGIANCE Council, the audience, and staff recited the Pledge of Allegiance. AGENDA ADOPTION Mayor Garlock presented the agenda for adoption. Councilor Petschel moved adoption of the agenda. Councilor Miller seconded the motion. Ayes: 5 Nays: 0 PRESENTATIONS A) UPDATE ON FIRE STATION EXPANSION/REMODEL BY PAUL OBERHAUS, CPMI Mr. Paul Oberhaus, Construction Manager for the Fire Station project, provided an update on the progress made at the site. They have erected the masonry that forms the new apparatus bay as well as the mezzanine above. It is hoped that the metal stud exterior walls will be started next week. The challenge now is to continue pushing the enclosure of the building, as well as getting the underground utilities and stormwater management system in place. Then, the first course of asphalt could be put down before winter. The project is slightly behind schedule. The crew is moving forward and hopefully if they get good weather, they can get the building up out of the ground. Councilor Paper asked Mr. Oberhaus to address the flag pole. Mr. Oberhaus replied by saying that the contractor was required to pull the flag pole, remove the concrete from the flag pole and to salvage the pole. During the operation of him removing the flag pole, he decided to take the top of the flag pole off. The crew has that in their possession and are working on a solution to fix it before it is put back into place. CONSENT CALENDAR Mayor Garlock presented the consent calendar. Councilor Petschel moved approval as presented and authorization for execution of any necessary documents, pulling item c.) Acknowledge the June 11, 2019 Parks and Recreation Commission Meeting Minutes. a. Approval of August 7, 2019 City Council Minutes b. Approval of August 13, 2019 Council Work Session Minutes c. Acknowledge the June 11, 2019 Parks and Recreation Commission Meeting Minutes d. Approve Resolution 2019- 58 Declaring Certain Fire Equipment To Be Surplus, and Authorizing Donation to the MN Fire Engine Club e. Acknowledge June 2019 Par 3 Financial Report f. Acknowledge Building Activity Report g. Approval of June 2019 Treasurer's Report h. Approval of Claims List Councilor Miller seconded the motion. Ayes: 5 Nays: 0 PULLED CONSENT AGENDA ITEMS C) ACKNOWLEDGE THE JUNE 11, 2019 PARKS AND RECREATION COMMISSION MEETING MINUTES Councilor Duggan expressed his appreciation to the Parks and Recreation Commission for the detailed meeting minutes as it gives him a better sense of what their proposals and recommendations are. Councilor Duggan moved to acknowledge the June 11, 2019 Parks and Recreation Commission Meeting Minutes. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS No one from the public wished to be heard. PUBLIC HEARINGS No items scheduled. August 20, 2019 Mendota Heights City Council Page 2 of 7 NEW AND UNFINISHED BUSINESS A) APPROVE PURCHASE AGREEMENT BETWEEN MH DEVELOPMENT, LLC (GRAND REAL ESTATE ADVISORS) AND CITY OF MENDOTA HEIGHTS FOR THE CITY OWNED VILLAGE LOTS City Administrator Mark McNeill explained that this is the next step in the development of the vacant Village lots. He stated that in March 2019, the Council approved the Request for Proposals to be sent out for the development of this property (approximately 2.67 acres). The RFP was sent to approximately 45 parties that staff felt might be interested. Five development proposals were received back. In May 2019, the City Council had a workshop meeting where the five development proposals were reviewed, and the list was narrowed to two finalists. In June 2019, each of the finalists gave a presentation to the Council in a closed session meeting. At the regular City Council meeting that same evening, the City Council directed staff to negotiate with Grand Real Estate Advisors for the sale of the lots. Staff highlighted the key points of the purchase agreement: • The Buyer is agreeable to purchase the city -owned properties for $1.1 M, with a $10,000 earnest money deposit • They would build a 3 -story 42 -unit building for residents 55 years of age and over o With an approximately 4,000 square foot restaurant attached to the building o An approximately 2,000 square foot `co -working' space o Underground parking o Surface parking o Trail connection o Landscaping o Green space They are looking to close on the property by March 31, 2020, giving them the time to get the necessary approvals. There is also a code issue that need to be addressed regarding the restaurant serving alcohol because the establishment would be located within 725 feet of a church. The purchase agreement provides language that they understand that there is a neighboring Homeowners Association (HOA). They have met with the HOA to see if there is anything that can be done in terms of efficiencies or cost sharing. They are agreeing to negotiate that in good faith, but that does not affect this purchase agreement. Councilor Duggan asked to hear from the applicants on what their viewpoints are, particularly about the 725 -foot distance in relation to the alcohol in the restaurant. Mr. Judd Fenlon, representing Grand Real Estate Advisors, LLC, stated that they are very excited about this project and they are working with Pope Architects. They have met with city staff as well as the homeowners association and feel good about the way those discussions have progressed. They have talked to staff about requirements related to the liquor license and the restaurant operator has been involved in those discussion. They understand than an amendment to City Code is required. August 20, 2019 Mendota Heights City Council Page 3 of 7 Councilor Duggan asked if the liquor establishment distance restriction is a city ordinance or is it a state statute. City Administrator Mark McNeill replied that it is a city provision that requires the lot that the liquor establishment is located on to be located at least 725 feet from the nearest part of the church building. This is less than 300-400 feet. He said that the distance restriction is something that the city can change. City Attorney Andrew Pratt stated that since this is a code provision located in the general code and not the zoning code, a variance is not applicable in this situation. Variances are for zoning/land use decisions. In this situation, it is a business and license regulation in the business part of the code. Councilor Petschel pointed out that this was a challenge very recently in the City of St. Paul due to the fact that downtown St. Paul has become loaded with Charter Schools. She said that there was a provision in the St. Paul City Code that barred the school being too close to where alcohol is being sold. She believed that this would be something that Mendota Heights could deal with, and it would not be an obstacle. Councilor Duggan was in agreement with Councilor Petschel's comments. He asked if anyone knew how far away Mendoberri Cafe & Wine Bar was from the church, or had it not been asked at that time. Councilor Petschel stated that this is something that the city can remediate. Councilor Paper asked what types of land would be available around other religious institutions that would require a distance setback of 725 feet. If the city were to change that restrictions, what would they be opening up as issues? Counsel Pratt reinforced the point that a variance is individual to a specific property — whereas this restriction is a code requirement and it has to be uniform to all property. It cannot favor one application for a liquor license over another. Councilor Miller asked what the impetus was behind this policy in the first place. Councilor Petschel noted that there was a period of time where drinking was considered scandalous and no one wanted drinking located near where people were going to church. Councilor Miller asked if anyone has reached out to the church and ask them for their thoughts on this. Mr. McNeill replied that the church has not been contacted; however, if Council decided to move ahead there would be a public hearing and they would certainly be invited. Councilor Miller suggested that the church be contacted so they can be part of this discussion. It would be better to ask than to make a gross generalization of what might be good for the city. Councilor Petschel stated that she was not willing to back away from an approved purchase agreement based on something that is on the books that is within the Council's prevue to modify. Councilor Duggan agreed, however, he asked for clarification that the restriction is just churches or does that include schools. Mr. McNeill replied that there is a requirement on schools and that is 1,000 feet from a school. Councilor Duggan noted that he supports the approval of this purchase agreement and moving forward with modifying the code. Mayor Garlock voiced is approval as well. August 20, 2019 Mendota Heights City Council Page 4 of 7 Councilor Paper asked why the developer was being given until the end of March 2020 to secure the rights to develop the site and complete the environmental review of the land, title review, and other contingencies. It seems like a long period of time. Mr. Fenlon replied that they have worked with their architect and contractor and spoke with city staff about how long the process would take; March 2020 was the schedule they felt they could meet. Councilor Paper asked if there was a way to tighten up this timeframe. Mr. Fenlon replied that they anticipate beginning construction in April; they plan to submit for full building permits by the beginning of March. Councilor Paper, in reference to the good faith with the HOA, asked how that could be defined. Attorney Pratt replied that one of the issues that they discussed with the developer, and the developers had their own discussions, was this issue with the HOA and the financial participation. For the document under consideration, it is simply to enter into a binding agreement that could be revoked or one party would be able to back out. The second document to come to the Council is the Development Agreement, which will go into these issues in a little bit more detail. Mr. Pratt continued that the city is just selling this property, the city is not necessarily going to be intimately involved with some of the details with relationship with the HOA and the developer. When it is put into the Purchase Agreement it is just a heads up to the developer that there is a request by the HOA, there is a long standing history there, and there are financial requirements that they would like to see — that is the beginning of the good faith effort and for the developer to have those conversations. The language in Section 20 (b) of the Purchase Agreement is not necessarily something that is binding — it is really hard to do that at this stage. The city will hold the developer to certain standards and those will be in the Development Agreement. Mr. Fenlon agreed that getting more definitive right now would be difficult. Councilor Paper asked again if there was any way to move the timeline up from the March 31, 2020 date. Mr. McNeill replied that there are the entitlements and approvals to be gone through, and part of that would be the issue of alcohol licenses and their proximity to churches. If the parties can move it more quickly, that would be desirable. Staff is comfortable with the March 31, 2020 date. Councilor Duggan moved to approve the Purchase Agreement between MH Development LLC and the City of Mendota Heights. Councilor Petschel seconded the motion. Ayes: 4 Nays: 1 (Miller) Councilor Petschel asked for a consensus to give direction to Council to look at the ordinance that is currently restricting the liquor license and to work on language and solutions to that going forward, the potential impacts, and engage churches in the conversations, etc. August 20, 2019 Mendota Heights City Council Page 5 of 7 B) RESOLUTION 2019-60 APPROVE PLANS AND AUTHORIZE AN ADVERTISEMENT FOR BIDS ON THE 2019 STORM SEWER IMPROVEMENT PROJECT Public Works Director Ryan Ruzek explained that this past spring, staff received a number of calls about drainage concerns. There are seven sites in this request where staff had met with residents, and staff agreed that there were drainage concerns and improvements that might be made. The improvements are in all areas of the city. Mr. Ruzek provided a summary of the requested/planned improvements, showing the locations on a map of the city. Staff is looking to put this project out to bid with a bid opening date on September 11, 2019, with an award date of September 17, 2019. The preliminary estimate had been $130,000, but a more updated estimate for the improvements was just under $175,000. Councilor Duggan asked for a maximum figure that staff would be willing to accept. Mr. Ruzek replied that he would be comfortable with a range near $150,000. He believed more than this would be exceeding what the industry should be paying now for this type of improvement. Councilor Duggan asked if the actual bids came in higher than the $150,000 would staff only do part of the project. Mr. Ruzek replied that they would plug the unit prices that were submitted in the contract and see where the discrepancies were; then they would make a recommendation to Council at the September 17, 2019 meeting as to whether to proceed with the project in its entirety or only complete certain areas. Councilor Miller asked if costs come in at more than expected, does staff have the sites ranked in terms of priority. Mr. Ruzek replied that they could easily make that determination. Councilor Paper noted that on site #7 staff talked about removing the pavement and raising the grade. He then asked if they could just put another layer of asphalt on. Mr. Ruzek replied that it would be possible; however, he was thinking that they may want to raise it a little bit more than that. Councilor Petschel moved to adopt RESOLUTION 2019-60 APPROVING FINAL PLANS AND SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2019 STORM SEWER IMPROVEMENTS (PROJECT #201905). Councilor Miller seconded the motion. Ayes: 5 Nays: 0 COMMUNITY ANNOUNCEMENTS City Administrator Mark McNeill announced that movie night at Mendakota Park will be September 7. He informed the Council that a new sign with information on the pollinator friendly plantings, has been installed near the front entrance to City Hall. The groundcover by the solar panels is transitioning to prairie restoration. It will take a couple of years before it is complete in this transition.. August 20, 2019 Mendota Heights City Council Page 6 of 7 COUNCIL COMMENTS Councilor Petschel addressed an issue she had this week with door-to-door vendors. She reminded everyone that this is against city ordinances for very good reasons. She encouraged residents to call 9-1- 1 if they have a peddlers at their front door attempting to sell items. Mayor Garlock stated that he attended an event in West St. Paul regarding the personnel from the National Guard Armory for Appreciation Day — with approximately 140 National Guard personnel and dependents there. Councilor Miller expressed his appreciation to Councilor Petschel for bringing up the door-to-door vendor issue. His mother was a victim of a scam perpetrated by a local asphalt company. He expressed appreciation to everyone who came out and attended the Fire Department and Police Department Golf Event. He expressed his thanks to Recreation Program Coordinator Meredith Lawrence and Officer Renteria for all of the time and energy they put into organizing this event. Councilor Paper stated that ISD 197 will be holding a ribbon cutting/dedication event for the new athletic field on September 5, 2019 at Henry Sibley High School at 4:30 p.m. There will be a soccer match to open the facility. It has now been named "Warrior Field". The scoreboard was set in place the previous day. Councilor Duggan stated that the golf event on Sunday was a great community event. He expressed appreciation to Recreation Program Coordinator Meredith Lawrence for the work she put into it. He also expressed appreciation to the residents for maintaining their properties and keeping the city looking beautiful. He encouraged everyone to support the local businesses. ADJOURN Councilor Petschel moved to adjourn. Councilor Duggan seconded the motion. Ayes: 5 Nays: 0 Mayor Garlock adjourned the meeting at 8:11 p.m. Neil Garlock Mayor ATT j Lorri Smith City Clerk August 20, 2019 Mendota Heights City Council Page 7 of 7