2019-11-19 Council MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, November 19, 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, 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
UPDATE ON FIRE STATION EXPANSION/REMODEL BY PAUL OBERHAUS, CPMI
Mr. Paul Oberhaus provided an update on the fire station expansion and remodeling project. He explained
that they made progress this month. The stormwater retention system is in place, they have installed the
storm sewer going out to Dodd Road, and the site has been graded and Class 5 material is down. The base
course for asphalt and curb has been put down. Unfortunately, they did not get the asphalt down and curb
in because of the cold weather. With the Class 5 material in place, they can at least drive over it. They
hope to get the asphalt down and curbs in early next spring.
The crew will be starting the roofing. The masons are working. Heaters will be set up on the inside of
the building to facilitate drying out the site. The in -floor heat and the slabs will be laid. Then the plumbers
and electricians will come in.
He commented that the delays caused by Xcel not getting the primary power relocated in a timely fashion,
plus the wet weather, pushed the project further into the cold season. That resulted in the mason's having
to put the poly on the scaffolding and to have to use propane heaters to keep the place warm while they
laid the brick. He is going to negotiate with the masonry contractor since some of the delay was caused
by the block they delivered was incorrect. The cost of running the heaters on the interior of the building
is something that they expected and the cost of that was in the budget.
Councilor Paper asked what the current timeframe is now. Mr. Oberhaus replied that the timeframe shows
completing the addition to the building in late March and then the remodeling work will begin.
CONSENT CALENDAR
Mayor Garlock presented the consent calendar and explained the procedure for approval. Councilor
Petschel moved approval of the consent calendar as presented, pulling items g.) Ordinance 548
Concerning Rental Housing, h.) Resolution 2019-88 Provide for Second Supplemental Indenture of Trust -
Multifamily Housing Revenue Bonds (Lexington Heights Apartments), Series 2013, and o.) Accept
Firefighter Retirement.
a. Approve November 6, 2019 City Council Minutes
b. Acknowledge September 10, 2019 Parks and Recreation Commission Meeting Minutes
c. Acknowledge September 25, 2019 Parks and Recreations Commission Tour Minutes
d. Acknowledge September 18, 2019 Airport Relations Commission Meeting Minutes
e. Acknowledge September 2019 Par 3 Financial Report
f. Approve Resolution 2019-87 Designate Polling Locations for 2020 Elections
g. Approve Ordinance 548 Amend City Code Section 3-5 Concerning Rental Housing
h. Approve Resolution 2019-88 Providing for the Second Supplemental Indenture of Trust Related to
Multifamily Housing Revenue Bonds (Lexington Heights Apartments Project), Series 2013 and
Authorizing the Execution of Documents Related Thereto
i. Approve Resolution 2019-93 Renew the Emergency Management Joint Powers Agreement With
Dakota County
j. Approve Resolution 2019-90 Approving a Permit to Dakota County for a Rain Garden
k. Supporting the EAB Community Forest Grant Applications — Amended Memo
1. Approve Resolution 2019-96 Accepting a Donation
m. Approve Resolution 2019-94 Certifying Delinquent Sewer Accounts
n. Approve Resolution 2019-95 Certifying Delinquent Water Accounts
o. Accept Firefighter Retirement
p. Acknowledge October 2019 Building Activity Report
q. Approve Claims List
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
November 19, 2019 Mendota Heights City Council Page 2 of 7
PULLED CONSENT AGENDA ITEMS
G) ORDINANCE 548 AMEND CODE SECTION 3-5 CONCERNING RENTAL HOUSING
Councilor Duggan noted that he was unsure what the impact would be for the city. He suggested this be
discussed in a work session to figure out what it is the city wants to do. The biggest thing to him was that
the city did not want to get into licensing because they were not sure what the impacts would be.
Councilor Petschel reminded everyone that the city's concerns go back to issues on Vicki Lane. The city
tweaked the nuisance ordinance and passed the rental inspection ordinance knowing that they would not
inspect the interiors; however, property owners had to register their rental properties and there would be
a walk -around inspection of the exterior. The intent was not to have an interior inspection, it was an
exterior inspection and identification of rental property.
Councilor Petschel moved to table ORDINANCE 548 AMENDING CITY CODE TITLE 3, CHAPTER
5 CONCERNING RENTAL HOUSING to a Council work session meeting.
Councilor Duggan seconded the motion.
Ayes: 5
Nays: 0
H) APPROVE RESOLUTION 2019-88 PROVIDING FOR THE SECOND SUPPLEMENTAL
INDENTURE OF TRUST RELATED TO MULTIFAMILY HOUSING REVENUE BONDS
(LEXINGTON HEIGHTS APARTMENTS PROJECT), SERIES 2013 AND AUTHORIZING THE
EXECUTION OF DOCUMENTS RELATED THERETO
Councilor Duggan recalled something similar to this on a past agenda. He questioned the cost, if any, to
the city, and questioned the staff time and legal time involved.
Councilor Petschel stated that her understanding was that the financing of the Lexington Heights
Apartments was accomplished through bonding for which the city was the conduit. With any change to
those bonds, the city would have to be notified and there would be no cost to the city.
City Administrator Mark McNeill replied that the city charges a $1,500 application fee.
Ms. Catherine Courtney with Briggs & Morgan, the bond counsel firm, explained that in 2013, there was
a refunding and a refinancing which the City Council approved. Last year, they asked for amendments,
which were technical in nature related to the Tax Cuts and Jobs Act. This year, the borrower and Wells
Fargo are asking again for some technical amendments that will have a minor effect on the interest rate.
Because it is a conduit, they had to ask for the Council's approval, and there is no obligation to the city.
Councilor Duggan moved to adopt RESOLUTION 2019-88 PROVIDING FOR THE SECOND
SUPPLEMENTAL INDENTURE OF TRUST RELATED TO MULTIFAMILY HOUSING REVENUE
REFUNDING BONDS (LEXINGTON HEIGHTS APARTMENTS PROJECT), SERIES 2013 AND
AUTHORIZING THE EXECUTION OF DOCUMENTS RELATED THERETO.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
November 19, 2019 Mendota Heights City Council Page 3 of 7
O) ACCEPT FIREFIGHTER RETIREMENT
Councilor Miller acknowledged Mr. John Mendez for his service to the City. He stated that John was a
very welcoming member of the fire community.
Councilor Petschel moved to accept, with regret, the retirement of John Mendez as a Firefighter.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
There were no public comments.
PUBLIC HEARING
No public hearings were scheduled.
NEW AND UNFINISHED BUSINESS
A) RESOLUTION 2019-92 STORM SEWER RATE ADJUSTMENT
Public Works Director Ryan Ruzek explained that during the spring audit, it was identified that utility
funds should have a larger balance. The goal is to have this fund, and the sanitary sewer fund, be self -
funding. The city uses the storm sewer utility fund for maintenance of the stormwater system, pond
dredging, pond inlets/outlets, catch basins, and recently the stormwater extensions. There will be some
stream bank stabilization projects in the future.
He explained that the current quarterly rate for storm sewer is $12 per quarter for a residential property.
Staff is proposing a $3 increase to the storm water utility fee for a single-family residential home. The
businesses and industrial fees will remain the same. The golf courses and cemeteries are proposed to
increase from $12/acre to $15/acre and institutional from $42/acre to $45/acre.
These proposed adjustments would increase payments to this account by approximately $50,000/year.
Councilor Duggan asked for the definition of institutions. Mr. Ruzek replied that institutions would
include the school district and churches. Councilor Duggan then commented that this would be an
approximate 7% increase. Whereas residential is a 25% increase. He asked if the increase is comparable
to previous increases. Mr. Ruzek replied that there have been several increases to the storm water utility
fund.
November 19, 2019 Mendota Heights City Council Page 4 of 7
Councilor Duggan asked if there have been any expenses in the last couple of years that staff did not
anticipate. Mr. Ruzek replied that, in general, costs for construction have increased. The city is currently
doing some storm sewer extensions in locations around the city. That project had been estimated to be
approximately $180,000; however, the low bid came in at $225,000. Staff is seeing a major uptick in
construction costs.
Councilor Duggan moved to adopt RESOLUTION 2019 - 92 AUTHORIZING STORM WATER
UTILITY RATES BEGINNING IN THE FIRST QUARTER OF 2020.
Mayor Garlock seconded the motion.
Ayes: 5
Nays: 0
B) RESOLUTION 2019-91 SANITARY SEWER RATE ADJUSTMENT
Public Works Director Ryan Ruzek explained that, like the storm sewer utility rate, the city looks to
have a self -funding sanitary sewer utility fund. The fund is currently low. A number of preventative
maintenance projects have been completed, including sewer lining and televising and cleaning. It is
being proposed to do a replacement of a portion of the city's sewer interceptor, north of Ridge Place.
The city is currently charging $78.45 per quarter for a single-family residential home, which includes 20
units of water. A unit of water is equal to 748 gallons. For any units over 20, the city charges an
additional fee of $2.80 per unit.
Commercial rates are charged based on their water meter size entering the building. Staff is proposing to
hold those charges flat.
The city received a nominal 1.77% increase through the Metropolitan Council (Met Council)
Environmental Services, who handles the city's sanitary sewage treatment. Staff is proposing to increase
the rate by approximately 5% to basically help build a balance in the fund.
It is proposed to increase the residential rate to $83.75 per quarter. The per unit rate for over the 20 -unit
limit is proposed to be increased to $3.50 per unit.
Councilor Miller asked what contributed to the increase in water flow. Mr. Ruzek replied that he would
expect that it is due to the water table being high. In addition, the city has some sanitary sewers that run
adjacent to creeks, and with them flowing full, there could be water making it into some manholes.
Councilor Duggan clarified that the charge will go to $3.50 for units over the 20 -unit limit. Mr. Ruzek
confirmed. Councilor Duggan asked how that compares to what other communities charge. Mr. Ruzek
replied that Mendota Heights was substantially lower. Councilor Duggan then asked if there had been
many complaints from residents when the rates were increased in the past. Mr. Ruzek replied that most
complaints come from single -occupant homeowners. The last increase was in February 2018.
November 19, 2019 Mendota Heights City Council Page 5 of 7
Councilor Petschel noted that it was important for the residents to understand that part of this bill is
being imposed upon the city by the Met Council. The city has no control over that.
Discussions continued around the possibility of creating a two-tier billing system based on usage rather
than a flat rate that includes 20 units of water.
Mayor Garlock moved to adopt RESOLUTION 2019-91 AUTHORIZING SANITARY SEWER
USAGE RATES BEGINNING IN THE FIRST QUARTER OF 2020.
Councilor Miller seconded the motion.
Ayes: 5
Nays: 0
COMMUNITY ANNOUNCEMENTS
City Administrator Mark McNeill announced that the following recreational activities are open for
registration on the city's website: Winter Break Field Trips; Flag Football Camp; Orbit Earth Expo;
Gymnastics. He stated the city is still looking for an ice skate instructor and warming house attendants.
Mr. McNeill asked the Councilors if they would be available at 6:30 p.m. on December 3rd, just before the
next regular Council meeting, to hold a Closed Session meeting regarding the city's labor process. The
Councilors were in agreement.
He also suggested a work session to discuss rental housing sometime the first week of January 2020.
COUNCIL COMMENTS
Councilor Duggan wished everyone a very happy and healthy Thanksgiving.
Councilor Paper wished good luck to the St. Thomas Academy Cadets at the State Tournament. He wished
everyone Happy Thanksgiving. He reminded residents that the month of November is also known as
`Movember', bringing awareness to men's health.
Councilor Miller reminded everyone to be aware that the ice is not safe to walk on at this time of year. He
asked residents for diligence when shoveling snow away from the fire hydrants.
Mayor Garlock reminded everyone that the winter parking ban is now in place.
Councilor Petschel recognized Visitation School for winning their 7th straight swimming and diving state
championship. She requested that the city send a letter on behalf of the council congratulating them on
their achievement.
November 19, 2019 tllendota Heights City Council Page 6 of 7
ADJOURN
Councilor Paper moved to adjourn.
Councilor Petschel seconded the motion.
Ayes: 5
Nays: 0
Mayor Garlock adjourned the meeting at 7:47 p.m.
Neil Garlock
Mayor
ATTEST:
Lorri Smith
City Clerk
November 19, 2019 Mendota Heights City Council Page 7 of 7