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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