2019-09-17 Council MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, September 17, 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 7:00 p.m. Councilors Duggan, Paper, and Petschel were also
present. Councilor Miller was absent.
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 Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
PRESENTATIONS
UPDATE ON FIRE STATION EXPANSION/REMODEL BY PAUL OBERHAUS, CPMI
Mr. Paul Oberhaus provided an update on the fire station expansion and remodel. He explained that the
summer has been very wet, which is impeding the progress. They are optimistic that they will get back on
schedule. Approximately 90% of the concrete masonry walls are built and about 85% of the special metal
stud walls framed, which is the perimeter of the building. The iron workers are on site.
Next week they hope to start completing the underground if the site remains dry.
CONSENT CALENDAR
Mayor Garlock presented the consent calendar and explained the procedure for discussion and approval.
Councilor Petschel moved approval of the consent calendar as presented, pulling items c.) Acknowledge
July Par 3 Financial Report and h.) Approve Professional Services Change Order for the Town
CenterNillage of Mendota Heights Boulder Retaining Wall Improvements.
a. Approval of September 3, 2019 City Council Minutes
b. Approval of September 10, 2019 Council Work Session Minutes
c. Acknowledge July Par 3 Financial Report
d. Approve Grading Permit for St. Thomas Academy Baseball Field Improvements
e. Approve Resolution 2019-65 Calling for a Public Hearing on Mendota Heights Industrial Park
Easement Vacation
f. Accepting Wetland Delineation Report at 1178 Northland Drive
g. Authorize the Recruitment of a Public Works Maintenance Worker
h. Approve Professional Services Change Order for the Town Center/Village of Mendota Heights
Boulder Retaining Wall Improvements
i. Approve Building Activity Report
j. Approval of Claims List
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
PULLED CONSENT AGENDA ITEMS
C) ACKNOWLEDGE JULY PAR 3 FINANCIAL REPORT
Councilor Duggan noted that the Par 3 has made a profit this summer. He commended Recreation Program
Coordinator Meredith Lawrence for keeping the Par 3 on track.
Councilor Duggan moved to acknowledge the July Par 3 Financial Report.
Mayor Garlock seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
H) APPROVE PROFESSIONAL SERVICES CHANGE ORDER FOR THE TOWN
CENTER/VILLAGE OF MENDOTA HEIGHTS BOULDER RETAINING WALL IMPROVEMENTS
Councilor Duggan asked for clarification on this change order, noting that the new costs are estimated at
a 23% increase which is significant. He questioned the unforeseen conditions and inclusion of additional
tasks noted in the memo. Public Works Director Ryan Ruzek explained the unforeseen conditions was a
typo and that should be stricken from the memo. The additional work was the addition of the retaining
wall on the Victoria and Walsh Lane, which was not included in the original scope of the project.
Councilor Duggan asked about the additional time at an estimated amount of $16,453. Mr. Ruzek replied
that is for the work on the retaining wall at Victoria and Walsh that was not in the original scope of the
project and the inspection of additional walls at The Village site due to The Village HOA's concerns. That
was determined to be on private property and the HOA may be making those improvements.
Councilor Duggan asked if the HOA would be billed for the inspection work. Mr. Ruzek replied that the
city would not bill them for that, however, they will be taking on additional costs with the improvements
to their own wall.
September 17, 2019 Mendota Heights City Council Page 2 of 9
Councilor Duggan moved to authorize a Professional Services Contract Change Order for the Town
Center/Village of Mendota Heights Boulder Retaining Wall Improvement Project.
Mayor Garlock seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
PUBLIC COMMENTS
No one from the public wished to be heard.
No items scheduled.
PUBLIC HEARING
NEW AND UNFINISHED BUSINESS
A) ADOPTING PRELIMINARY BUDGET AND LEVY
Finance Director Kristen Schabacker explained that the Council has held two work sessions to discuss
the proposed budget and levy for 2020. The action before the Council is to approve the preliminary
budget and levy so it can be certified to Dakota County.
Ms. Schabacker shared that the proposed levy for 2020 is $10,121,786, representing a 7.28% increase
over 2019. The budget for all funds is $16,636,927. The taxable market value for the city is
approximately $2.3 billion, representing an increase of 8.89% over 2019. The 2019 city tax rate was
39.294, and the proposed 2020 tax rate is 38.544.
The average residential home value increase is approximately 7.39% for 2020. The median home value
in Mendota Heights is approximately $408,407. A home valued at the median will be paying $1,618 for
city property tax; last year the median home value was $380,000 and would have paid $1,538 — the
average increase is 5.17% or $80/year.
Included in the preliminary budget is one park maintenance worker, one office assistant position for
Parks & Recreation and Administration, the workers compensation cost increase of $46,500, the fire
fighters pension contribution increase of $18,000, a cost of living adjustment for employees, and the
health insurance contribution which increases the City's contribution by 10%.
Capital items to be paid for out of the fund balance or from special funds include a Mack truck for the
Street Department, a 3/4 ton pickup truck for Public Works, an asphalt hot box trailer, planning costs
associated with a Natural Resources Plan, a sprayer for the Streets/Par 3, a backstop at Friendly Hills
Park, a Par 3 greens mower, and a jetter truck for the Sewer Department.
She noted that the individual department budgets for 2020 are proposed to increase as follows:
• Police Department — 6.15%
• Administration — 3.49 %
• Elections —125 %
September 17, 2019 Mendota Heights City Council Page 3 of 9
• Engineering – 5.86%
• Recreation – 20.72%
• PW -Parks --.5%
• Street Department – 7.93%
• Fire Department – 7.9%
• Code Enforcement – flat
• Community Development -13.46%
• IT –15.44%
• Planning/Recycling/Council – 8.85%
The total General Fund budget increase is proposed to be 6.43%.
The budgeted revenues are projected to be:
• Tax Levy – up 7.4%
• Licenses / permits – up slightly
• Fines – adjusted to more actual numbers
• Charges for services – down slightly
• Intergovernmental revenue – up 7.6%
• Miscellaneous revenue – remaining flat
Ms. Schabacker said this is a balanced budget so the revenues are also projected to increase by 6.43%
The levy percent changes are projected as:
• General Fund – up 7.4%
• Office Assistant position—increase by $55,000
• Legal/Contingency/Emergency Preparedness – remained the same
• Fire Relief – up by $18,000
• Infrastructure/Facility Reserve – reduced to $0 with the understanding that once The Village lots
were sold those reserve funds would be replenished
• Fire Station Bonds – higher by $103,611
• Special Levies – relatively flat
• Street Light District – 0% change
Total Preliminary Tax Levy – up 7.28%.
Ms. Schabacker explained that once the Preliminary Tax Levy is adopted, it cannot be increased but it
can be decreased before the final budget and levy are adopted in December 2019. At the December 3,
2019, City Council Meeting, a public meeting will be held concerning the budget. The final levy and
budget would be certified to Dakota County prior to December 30, 2019.
Upon a question from Councilor Duggan, Ms. Schabacker replied that Emergency Preparedness is a
smaller budget and that is what the city uses to pay for siren maintenance. The Equipment Reserve is an
account that can be used to pay for equipment expenditures as opposed to bonding for them. City
Administrator Mark McNeill also replied that typically these are savings accounts, especially for
equipment. The intent is that these would be built up over time so that in the future the city would not
have to sell bonds to purchase larger pieces of equipment.
September 17, 2019 Mendota Heights City Council Page 4 of 9
Councilor Duggan then asked for confirmation that as the funds become available from sale of The
Village lots, they would restore the funds in these accounts. That was affirmed.
Councilor Paper asked if the sewer jetter truck was part of the list of the capital items to be purchased in
2020. Ms. Schabacker confirmed that it would be purchased and paid for out of the Sewer/Utility Fund.
Councilor Duggan asked how the budget could be lowered going into next year. Mr. McNeill replied
that there are discretionary items like the office assistant position. There are not a lot of other
discretionary types of spending being proposed. The majority of the budget increases are from the
increased cost of insurances and employee cost of living.
Councilor Duggan asked if there would be any savings going to half-day Fridays [topic later on the
agenda] and if that was reflected in the budget. Mr. McNeill replied that there would not be any savings
as the City still has to heat and cool the building. The City does not pay overtime for people to stay later,
so closing early is revenue neutral.
Councilor Petschel made the observation that this is not the first time the Council has reviewed this
budget. The Council reviewed the budget line by line. Fortunately, because the city has a balanced
budget and the Council has tried to keep it as lean as possible, many large capital purchases have been
paid for from the savings, rather than bonding for them. There are positive times coming once the city
gets the Par 3 bonds paid off. She is hoping that, once the fire station becomes a permanent part of the
budget's bottom line, the only significant changes in the budget would be insurance and cost of living.
Mayor Garlock noted that the city still was not certain on the employee health insurance increase. Ms.
Schabacker confirmed that that is another option that may show a reduction.
Councilor Duggan commended Ms. Schabacker on her work, as she is primarily the finance department
and puts in many hours.
Mayor Garlock moved to adopt RESOLUTION 2019-66 APPROVING PROPOSED 2019 TAX LEVY
COLLECTIBLE IN 2020.
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
Councilor Petschel moved to adopt RESOLUTION 2019-67 ADOPTING THE 2020 PRELIMINARY
BUDGET.
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
Councilor Duggan moved to adopt RESOLUTION 2019-68 APPROVING THE FINAL 2019 TAX
LEVY FOR SPECIAL TAXING DISTRICT NO. 1 COLLECTIBLE IN 2020.
September 17, 2019 Mendota Heights City Council Page 5 of 9
Mayor Garlock seconded the motion
Ayes: 4
Nays: 0
Absent: 1 (Miller)
B) RESOLUTION 2019-69 PROVIDING FOR THE SALE OF
$3,195,000 GENERAL OBLIGATION BONDS, SERIES 2019B
Finance Director Kristen Schabacker explained this request was to approve the sale of bonds to finance
the 2019 Wesley Street Improvement Project, the Village Wall Improvements, and the refunding of the
2010 and 2011 Bond Issues in the amount of $3,195,000. The refunding issues account for $1,865,000
of the bonds to be issued, for a savings of $81,800.
Councilor Petschel moved to adopt RESOLUTION 2091-69 PROVIDING FOR THE SALE OF
$3,195,000 GENERAL OBLICATION BONDS, SERIES 2019B.
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
C) RESOLUTION 2019-64 APPROVING FINAL PLAT OF SWEENEY ADDITION
Community Development Director Tim Benetti explained that Mr. Edward Sweeney was seeking final
plat approval for "Sweeney Addition", a new three lot subdivision located at the northeast corner of
Wentworth Avenue and Wachtler Avenue. He shared an image of the subject property, which is just
over three acres in size.
Dakota County reviewed this plat and recommended the following conditions of approval:
i.) Developer will provide 40 -ft. right-of-way dedication along Wentworth and Wachtler Avenues;
ii.) Lots 1 and 3 will each be approved with a 30 -foot wide, shared (dual) driveway access opening
onto Wentworth Avenue, while the existing driveway serving 770 Wentworth Drive (Lot 2) will
be considered a temporary access until such time when Lot 2 is split or subdivided in the future.
iii.)The two new lots created by any split of Lot 2 must tie into the shared driveway accesses
provided for Lots 1 and 3.
iv.) Developer shall restrict access along all of CR 8, except for the two 30 -foot access openings
along the new right of way line. A temporary access permit with the County would be required to
allow the existing driveway, which would expire only if Lot 2 is split again into two lots. A quit
claim deed to Dakota County for restricted access is required with the recording of the plat.
v.) No work shall commence in the County right of way until a permit is obtained from the County
Transportation Department and no permit will be issued until the plat has been filed with the
County Recorder's Office.
These conditions, as well as the original conditions in the original preliminary plat, have all been
incorporated into this final plat resolution of approval.
Councilor Duggan asked if there are `partial access points' similar to this, located elsewhere in the city.
Mr. Benetti replied that there are a number of shared driveways; however, they are not of this caliber.
September 17, 2019 Mendota Heights City Council Page 6 of 9
Staff requested this separation of access points to provide allowance for snow or grass removal but
mainly because of drainage issues between the properties. Councilor Duggan asked for further
clarification on the driveway locations, which Mr. Benetti provided.
Councilor Paper asked if the only difference now from what they approved previously was the driveway
access. Mr. Benetti replied there was also a decrease in the width of the right of way dedication from 50
feet to 40 feet.
Councilor Petschel moved to adopt RESOLUTION 2019-64 APPROVING THE FINAL PLAT
(SUBDIVISION) OF "SWEENEY ADDITION" LOCATED AT 777 WENTWORTH AVENUE
(PLANNING CASE NO. 2019-17).
Councilor Paper seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
D) RESOLUTION 2019-70 ACCEPT BIDS AND AWARD CONTRACT FOR
THE 2019 STORM SEWER IMPROVEMENTS PROJECT
Public Works Director Ryan Ruzek explained that the Council was asked to approve the acceptance of
bids and awarding a contract for the 2019 Storm Sewer Improvement Project. The City received seven
bids which were opened on September 11, 2019. The low bidder was Alcon Construction Corp. out of
Rochester, MN. Based on work they have done, it appears that they will be able to complete this project.
Their low bid of $226,717.90 was higher than the Engineer's Estimate of $201,158.50; however, staff
recommended moving forward with this project.
Councilor Duggan asked if there have been any projects in the recent past that have come in under
budget. Mr. Ruzek replied that The Village Retaining Wall Project came in under budget. In the last two
years, it has been the norm that the city estimate has been low. Mr. Ruzek also stated that based on
discussions with other cities, it seemed like projects that got out early this year received some standard
pricing. Staff is looking to get the Marie Avenue project out to bid in mid-February or early -March.
Councilor Paper asked if there was a reason to wait until mid-February to seek bids on the Marie
Avenue project. Mr. Ruzek replied that they have not completed the design on it; however, he could
contact the consultant and see what their recommendation would be.
Councilor Petschel noted that everything on the `summary of improvements' for the storm sewer
improvements needs to be done; completing these will go a long way to addressing some of the more
egregious situations.
Mayor Garlock moved to adopt "RESOLUTION 2091-70 ACCEPTING BIDS AND AWARD
CONTRACT FOR THE 2019 STORM SEWER IMPROVEMENT PROJECT.
Councilor Duggan seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
September 17, 2019 Mendota Heights City Council Page 7 of 9
E) CITY HALL HOURS
City Administrator Mark McNeill explained that on April 27, 2019 the Council approved summer
operating hours at City Hall. The hours have been 7:00 a.m. to 4:30 p.m. Monday through Thursday, and
from 7:00 a.m. to 11:30 a.m. on Friday. City Hall was then closed on Friday afternoons. It was noted
that the City has not received any negative feedback from the public regarding the closure on Friday
afternoons, and from a staff perspective, the changed hours were well received. It was the intention to
return to regular hours in October 2019; however, staff was now requesting Council approve extending
the revised hours for another year to see how it would work over the winter.
These adjusted hours would only be for City Hall. The Police and Public Works departments would not
be affected.
Councilor Duggan suggested that a larger sign be installed on the front door explaining that the Police
Department is in the lower level and stating the hours they are open. Mr. McNeill agreed.
Councilor Petschel asked that the Council review these hours in one year, and she asked that a date be
set for that review. Mr. McNeill proposed September 2020. She also suggested that staff keep track of
all feedback received over the winter. Mr. McNeill stated that if staff or the City Council finds that there
are issues, more immediate changes to the hours could always be discussed.
Staff received consensus from the Council authorizing the City Hall hours of operation from 7:00 a.m. to
4:30 p.m. Monday through Thursday, and 7:00 a.m. to 11:30 a.m. on Friday, through the end of
September 2020.
COMMUNITY ANNOUNCEMENTS
City Administrator Mark McNeill announced that the Par 3 is still open and fall rates have been
implemented. He reminded residents to check the city's website for registration for the field trips over
MEA week. Gymnastics will be starting in December, and registration is online. The Glow Dash was
scheduled for September 21St
Fire Safety Week is October 6-12, 2019. The Fire Department will host an Open House at Mendakota
Park on October 12 due to the fire station being under construction.
The next three regular City Council meetings will be held on Wednesdays (October 2, October 16,
November 6).
COUNCIL COMMENTS
Councilor Petschel recognized City Administrator Mark McNeill for currently being the President of the
Board of Directors for Metro Cities. Mr. McNeill is also the Executive Committee Chair for the Dakota
County Communication Center, and is on the League of Minnesota Cities Board of Directors.
Mayor Garlock reminded everyone to register for the Warrior 5K being held on September 28"'. This is a
fund raiser for their foundation.
September 17, 2019 Mendota Heights City Council Page 8 of 9
Councilor Paper reminded residents of the Homecoming Parade being held on September 20, starting in
West St. Paul at Heritage Middle School going to the Henry Sibley High School for a 7:00 p.m. football
game.
Councilor Duggan stated his experience has been that by attending meetings with these various
organizations (i.e. League of MN Cities, Metro Cities, Dakota County), one can learn a lot about what is
going on in other cities, and you can bring ideas back to your own city. He complimented the people
running the soccer league this fall and stated that the condition of the fields is fine.
FTU Iroil]R-2
Councilor Duggan moved to adjourn.
Councilor Paper seconded the motion.
Ayes: 4
Nays: 0
Absent: 1 (Miller)
Mayor Garlock adjourned the meeting at 7:55 p.m.
Neil Garlock
Mayor
ATTEST•
Lorri Smith
City Clerk
September 17, 2019 Mendota Heights City Council Page 9 of 9