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2020-01-07 Council Minutes - Closed Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, January 7, 2020 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, Miller, Paper 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. City Administrator Mark McNeill requested to add Item 1013. Adjourn to Closed Session of the City Council, for the purpose of property acquisition, as permitted by Minnesota Statutes, Section 13D.05, Subdivision 3(c)(3). Councilor Duggan moved adoption of the agenda as amended. Councilor Miller seconded the motion. Ayes: 5 Nays: 0 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) Designate the Official Newspaper for 2020, d) Designate the Acting Mayor for 2020, and 1) Approval of Claims List. a. Approval of December 17, 2019 City Council Minutes b. Acknowledge the November 26, 2019 Planning Commission Minutes c. Designate the Official Newspaper for 2020 d. Designate the Acting Mayor for 2020 e. Approve 2020 Financial Items, Resolution 2020-01 Establishing 2020 City Depositories of Funds, Resolution 2020-02 Accepting Pledged Securities for 2020, and Authorize Finance Director to Execute Electronic Payments and Prepay Claims f. Approve Contract with TimeSaver Off site Secretarial, Inc. g. Accept Firefighter Resignation h. Accept Police Sergeant Resignation and Authorize the Internal Promotional and Police Officer Recruitment Process i. Acknowledge November 2019 Fire Synopsis j. Approve the Amended Building Activity Report for November 2019 k. Approve the Building Activity Report for December 2019 1. Approval of Claims List m. Authorize Purchase of Pothole Asphalt Trailer Councilor Miller seconded the motion. Ayes: 5 Nays: 0 PULLED CONSENT AGENDA ITEMS C) DESIGNATE THE OFFICIAL NEWSPAPER FOR 2020 Councilor Duggan noted that the Star Tribune has a larger reading area compared to the Pioneer Press. He stated that the Pioneer Press is being recommended but wondered if there should be a discussion because of the larger readership of the Star Tribune. Councilor Petschel believed that the circulation in Mendota Heights is larger for the Pioneer Press. She commented that the Pioneer Press has been used in the past and it has been a good tool. She recommended the City remaining with the Pioneer Press. Mayor Garlock stated that he would agree as the quote for the Pioneer Press seems more reasonable. Councilor Petschel moved to designate the Pioneer Press as the official newspaper of the City for 2020. Councilor Miller seconded the motion. Ayes: 5 Nays: 0 D) DESIGNATE THE ACTING MAYOR Councilor Duggan stated that he has always felt that this is an important position, even though the Mayor is rarely absent. He stated that he agrees with the appointment of Councilor Paper. Councilor Duggan moved to designate Councilor Joel Paper as the Acting Mayor for 2020. Councilor Miller seconded the motion. Ayes: 5 Nays: 0 L) APPROVAL OF CLAIMS LIST Councilor Duggan referenced the payment to the Department of Labor and Industry, and asked for information on the surcharges. January 7, 2020 Mendota Heights City Council Page 2 of 12 Finance Director Kristin Schabacker explained that those surcharges are paid on building permits. She explained that the City collects that charge and passes it on to the State of Minnesota as required. Councilor Duggan referenced the payment to Great River Greening and asked if this work is completed on a rotational basis. Public Works Director Ryan Ruzek reviewed the parks that have been worked on for invasive species removal. He stated that the Natural Resources Plan update will help to prioritize the areas for invasive species removal in the future. Councilor Duggan moved to approve the claims list. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS Thomas Smith, Hampshire Drive, referenced comments made at the December 19th Planning Commission meeting. He stated that Planning Commissioner Mazzitello suggested that the floor area ratio is out of date and inappropriate. Mr. Smith pointed out that the City has a quality industrial park because of the conservative floor area ratio. He stated that Mr. Mazzitello expressed regret that the applicant, Metro Self - Storage, has spent so long attempting to gain approval to build a self -storage unit in the Industrial District. He believed that to be pandering to the developer. He stated that Mr. Mazzitello's comments were a direct insult to the other members of the Commission and stated that he does not deserve reappointment. Steve Nelson, 1220 Sylvandale Road, stated that he has lived in Mendota Heights for 10 years and has a small stake in a case that will be discussed tonight. He stated that he is community focused and a locally based individual. He noted that comments at the podium at previous meetings have been dominated by a loud few that state they represent the community, which is not the truth. He stated that he has spoken to a number of his neighbors and they are excited about the self -storage project. It is a business they will use and it will generate additional tax dollars. He believes that Metro Storage, the applicant, has already articulated how the first-class operation would be run. He stated that the speakers stated that when googling storage units there are hundreds of negative comments. He noted that he completed a google search and found no such comments. He stated that he was bothered that such false information was presented with such authority. PUBLIC HEARING Community Development Director Tim Benetti explained that the Council was being asked to consider Resolution 2020-03 Approving a Critical Area Permit and Wetlands Permit for 774 Sibley Memorial Highway (Matt and Jeanne Kenevan). He noted that the applicants would be constructing an in -ground swimming pool and provided background information on the property. He displayed the site plan and noted that the existing shed would be required to be moved outside of the easement area. He noted that the bluff lines and heavily wooded areas would not be disturbed. He reviewed the analysis completed by staff and any applicable conditions that would be recommended. January 7, 2020 Mendota Heights City Council Page 3 of 12 Councilor Petschel referenced recommended condition #4 which states that draining water from the pool shall be directed onto the owner's property only, and shall not drain directly into the nearby bluff impact zone, bluff area, or creek/wetland system. She asked where that drainage would flow to. Community Development Director Tim Benetti explained that if any backflushing or drainage is done, the water would flow into the swale, through the front yard and towards the roadway. He stated that this pool is proposed to be more of a kept system, rather than a system that requires drainage or flushing. Councilor Miller asked about the potential pitfalls that could occur in the unlikely event that the pool would need to be drained, as this would be saline water. Community Development Director Tim Benetti stated that with the distance the pool is from the bluff line and channel way, any saline water should have zero impact if it were to reach those areas. Councilor Miller asked when the shed on the property would be moved. Community Development Director Tim Benetti commented that staff would recommend requiring that action to be completed by the end of the pool construction. Public Works Director Ryan Ruzek commented that the structure is a chicken coop that would be removed from the site. Councilor Miller stated that he would like to see a definitive date included in the condition. Councilor Petschel stated that she would be willing to add to the resolution that the shed be moved or removed by the completion of the pool construction. Councilor Duggan referenced the language "native looking stone" and received confirmation from staff that the resolution language would state "native stone or wood". He stated that he supports the project. Mayor Garlock moved to open the public hearing. Councilor Duggan seconded the motion. Ayes: 5 Nays: 0 Mr. Nik Hawley, Performance Pools, stated he is the contractor for the project. He stated that the water would be 2,700 parts per million which would be less than a tear drop's worth of salt. He stated that the intent of the plan would be to drain everything away from the bluff as the drainage plan proposed. He stated that flushing a pool is not necessary with the newer systems. He stated that a liner replacement would occur perhaps every 15 years and the water would be drained following the drainage plan. Councilor Miller asked if there is a process that could occur to desalinate the water when pumping is necessary. Mr. Hawley replied that he is not aware of such a process. There being no one further coming forward to speak, Councilor Duggan moved to close the public hearing. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 January 7, 2020 Mendota Heights City Council Page 4 of 12 Councilor Duggan moved to approve Resolution 2020-03 Approving a Critical Area Permit and Wetlands Permit for 774 Sibley Memorial Highway, with the changes suggested by Council. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 NEW AND UNFINISHED BUSINESS A) RESOLUTION 2020-04 RELATING TO A VARIANCE FOR NEW PERSONAL SELF - STORAGE USE AND FACILITY LOCATED IN THE I -INDUSTRIAL DISTRICT AT 1178 NORTHLAND DRIVE Community Development Director Tim Benetti explained that the Council was being asked to approve Resolution 2020-04, relating to a Variance for a self -storage facility to be located in the Industrial District at 1178 Northland Drive. He stated that the applicant, in consultation with staff, decided to simply present the variance for this case at this meeting. A request for a conditional use permit would also be needed for this project, and may be brought to an upcoming meeting. He provided details of the property, which has remained vacant for a number of years. Mr. Benetti then provided details on the proposed site plan and the floor area ratio (FAR) requirement, which is the reason for this variance request. He also reviewed background information on this case which began in May of 2019. Councilor Duggan asked for additional information on the decision that was made last year to allow self storage facilities in the Industrial District, which was not previously allowed. He stated that, during that discussion, he did not believe there was discussion related to a FAR requirement. Community Development Director Tim Benetti agreed and stated that, at that time, the discussion focused on whether the use should be allowed in the Industrial District. Councilor Duggan stated that the Council approved the concept of the use only. He stated that if he would have known about the FAR requirement, he would not have approved that decision. He stated that a variance from the FAR could not be granted solely for economic reasons. He noted that the applicant stated that the request for a variance from the FAR because the project would not work financially otherwise. City Attorney Andy Pratt provided additional details on the three-part test applied to variance requests. He noted that some parts of the test would have more weight than others. He stated that the Code states that economic considerations may be a factor in the decision but cannot be the only reason for the request and provided examples. Councilor Duggan referenced page 111, the Planning Commission notes, and read the statements aloud from the applicant related to the project scale and economic feasibility. Councilor Petschel stated that a person brokered this property without even speaking to staff to determine the allowed uses within the industrial park. She explained that a previous Council and Planning Commission worked very hard to develop the allowed uses within the industrial park. She stated that some of the cities that have allowed self -storage are now considering moratoriums against that use. She January 7, 2020 Mendota Heights City Council Page 5 of 12 stated that she has remained consistent from the beginning and has never been able to support self -storage as an allowed use. She commented that she does not believe that it would be appropriate to issue a variance as the business model the business would need in order to have a feasible business on this property would never meet the FAR. She commented that this remains a valuable piece of property. Councilor Miller referenced the three-point test of a variance and commented that this would be an appropriate use and it would not impact the character of the area. He referenced page 149, where the applicant stated that the variance request is not due to characteristics of the property and therefore, he continues to struggle with the second point of that three-point test. He stated that his reservations about self -storage facilities were put to rest when he toured the facility owned by the applicant in Burnsville last spring. He stated that if the City were going to have a storage facility, this would be the one he would want, but that it would need to be contained within the parameters that guide the City. He stated that he voted against removing or changing the FAR and remains challenged by the second part of the three-part variance test. He stated that his opinion does not reflect the quality of the applicant's business, but he will not be able to support the request. Councilor Paper stated that this has been discussed at length and he was willing to change the FAR, not just for one project, but in the scope of what business could come to the Industrial Park in the future. He noted that he again did not support the variance because he does not believe in changing the rules as that could open the door to a proliferation of this type of use. He stated that they are now talking about one project on a specific lot and he has received nothing but positive feedback from residents. He stated that he has not heard any personal comments from people that do not support the project. He stated that he would support the variance for this one specific project in the Industrial District. Mayor Garlock stated that he was impressed by the facility when he toured the Burnsville location and has received a lot of positive feedback from residents that would like to see self -storage in the Industrial Park. He stated that his votes have remained consistent throughout this process. He believed that the FAR is restricting what can be done in the Industrial Park and commented that there are other requirements that can continue to ensure quality products there. He stated he is in favor of the variance request tonight. Councilor Duggan stated that there are always challenges with new uses in a community and therefore you fall back on the rules and regulations as guides. He stated that the product could be a good product but should be smaller to fit the City's requirements. He noted that the applicant has stated that the product could not be smaller and still be financially feasible. When based solely on financial reasons, he stated he cannot support the variance. Councilor Paper commented that there is a lot of vacancy in the carefully planned industrial park and if changes are not made, there will continue to be vacancy and the less vibrant that area will become. He stated that if you are not moving forward, you are falling behind, and something needs to be done to help the industrial park catch up. He stated that if the City continues to block new users in the industrial park, it will become less vibrant. Councilor Miller asked if the vacancy in the industrial park is due to the inflexibility of the City. Councilor Paper stated that he does not know that answer. Councilor Miller stated that is a valid question and believes that the City should perhaps do a deeper dive on that question. January 7, 2020 Mendota Heights City Council Page 6 of 12 Community Development Director Tim Benetti stated that he has not received any of those types of comments. He stated that the questions that he receives are related to whether a use would be allowed on a specific site. He stated that he cannot answer the question of why some buildings remain unleased, noting that it could be an issue of building lease amounts or management. He noted that the comments he receives are related to the desirability of the industrial park location because of its proximity to the MSP airport. Councilor Miller stated that if the Council is serious about answering that question, it would be appropriate to review that topic in order to make changes in an educated manner. Councilor Petschel stated that a survey was recently completed in the Industrial Park which provided valuable input. She stated that the Council has been very flexible for the open existing spaces in terms of reviewing conditional uses that were neither allowed nor disallowed. She noted that those new additions are really being enjoyed by residents in the community. She stated that the Council has been flexible and responsive to help the owners of buildings in the business park, noting that those requests have not required variances. Community Development Director Tim Benetti commented that the applicant is present if the Council would like to allow a brief presentation. Bob Heilman, representing Metro Storage, LLC, noted that since the first time they approached the City almost one year ago, they have continued to show the same building size. He stated that this is their template that they use throughout the metro area. He noted that the City's zoning code was developed 40 years ago, and this proposed type of storage building is a new concept and therefore did not exist when the code was developed. He stated that the building as discussed fits all the other metrics of the City with the exception of the Floor Area Ratio (FAR). He stated that the practical difficulty is that the FAR contradicts the other elements of zoning. He stated that FAR is meant to address intensity of the use, and self -storage would have one of the lowest intensity uses. He stated that this site has irregularities that make it a good fit for self -storage as opposed to other uses. He believed that one reason this site remains undeveloped is because of the unique/difficult access to the site, as it only has a one limited access point. He noted that there is also a large easement on the site that handles drainage for the area and therefore the site has a smaller buildable area. He stated that the reason the access/location would not impede his business is because his business has low intensity and is a destination business. He commented that his business is a great neighbor and family owned, with good relationships with the cities they reside in. He stated that he believes that he meets all of the variance tests, as this building could be constructed if FAR did not exist. He stated that access, grading and easements are all unique characteristics of the property that make it difficult to develop but well suited for self -storage. He stated that this would be a beautiful building that would improve the character of the area and would also provide a good tax base. He stated that all business is economically related, but the reason for the variance is because they cannot meet the FAR. He stated that, in the eight years they have been in the metro, they have never had the police called to a facility because of the monitoring and management they provide. Dave Carland, Venture Pass Partners, stated that his company is an involuntary owner of the property. He stated that when the property was presented to them, it was presented with the zoning code and they understood that self -storage was not a permitted use. He stated that they then spoke with City staff to discuss the possibility of self -storage. He stated that the challenges of the site exist and noted that he Januay 7, 2020 Mendota Heights City Council Page 7 of 12 approached many other possible uses that were not interested because of the poor access, the sloping of the site, and the shape of the site. He stated that this is a challenging site and they will need to be creative. He stated that the City services and infrastructure can support a three-story building and was unsure why the City would not want to generate three times the tax base. Councilor Paper stated that one story, two story, or three stories does not necessarily make a difference. He explained that from the outside you would not be able to tell whether there are multiple floors or whether it is a warehouse inside. He commented that this use also has low intensity. Bernie Friel, 750 Mohican Lane, commented that he does not have an investment in this project and has resided in the community for six decades. He stated that in May of 2019, City Attorney Andy Pratt conducted a seminar for the Planning Commission related to variances and the factors necessary to support a variance. He stated that the practical difficulty is necessary to issue a variance. He stated that the three - factor test applies to all variances and all three factors must be satisfied. He stated that on December 13th, the applicant submitted a supplement to its original variance application and conceded that the variance request was not due to any property characteristics. Therefore one factor of the three-point test cannot be met and a variance should not be issued. He stated his opposition is focused on the request not meeting City Code requirements, rather than the project itself. City Attorney Andy Pratt stated that it is fairly common to prepare resolutions of approval and denial in cases of this matter, as he has. He noted that when preparing draft resolutions, he only works with City staff and does not work with the applicant. Councilor Duggan stated that he discussed the issue with Community Development Director Tim Benetti to provide some recommended grammatical changes to the language for the draft resolution denying the resolution, which he believed should be discussed. Community Development Director Tim Benetti reviewed the suggestions provided by Councilor Duggan. City Attorney Andy Pratt read language from City Code related to variances which was used to draft the resolution. Councilor Miller asked if this is language is used for all variance resolutions or drafted specific for this consideration. City Attorney Andy Pratt stated that some of the language is taken directly from City Code, while some items are specific to this request. Councilor Petschel stated that she would prefer to remain consistent with the language within City Code. Councilor Miller agreed that if changes are necessary, that should be done on a higher level rather than making smaller changes per application. Councilor Duggan stated that his intent was simply to bring the discussion forward to the Council and provided additional input on his suggestions. He noted that his intent was for the language to become more specific. January 7, 2020 Mendota Heights City Council Page 8 of 12 City Attorney Andy Pratt stated that some of the City Code language is drafted to cover more broad situations. He provided input on the suggested language changes from Councilor Duggan and those that he believes could be incorporated into the resolution to add clarity. Councilor Petschel stated that she would prefer to leave the draft resolution as presented. Councilor Miller stated that perhaps the semantics of the City Code language used in resolutions should be discussed in a workshop meeting, rather than attempting to make changes on an individual basis. Councilor Petschel stated that she is opposed to changing language drafted and approved by legal counsel that follows City Code. Councilor Duggan reviewed the changes he proposed that City Attorney Andy Pratt agreed with and confirmed the consensus of the Council with those changes. Mayor Garlock stated that, as Mayor, it is his job to promote growth and development and believes that the Council should make changes to support those actions. He stated that the costs of services are increasing, and development needs to increase to provide that support. He commented that the FAR is out of date and antiquated. He commented that Mendota Heights is a beautiful city but has been spinning its wheels recently. He stated that this is a great product and he would like to see this beautiful building built here, which will also increase the tax base. He stated that this is an opportunity to make a change for a lot that has multiple challenges. It is a use that fits well on the lot and provides a service needed by residents in the community. He stated that if the Council continues to act on regulations from 45 years ago, he would be concerned for the future. He stated that a lot of work needs to be done in order to promote the Industrial Park to create longevity and success. Councilor Duggan agreed that the City has an obligation to promote development but must also follow its rules and regulations. Councilor Petschel moved to deny RESOLUTION 2020-04 RELATING TO A VARIANCE FOR NEW PERSONAL SELF -STORAGE USE AND FACILITY LOCATED IN THE I -INDUSTRIAL DISTRICT AT 1178 NORTHLAND DRIVE, AS THE PLIGHT HAS BEEN CREATED BY THE APPLICANT AND ITS SPECIFIC BUSINESS MODEL THAT CANNOT BE ACCOMMODATED BY THE FLOOR AREA RATIO (FAR), and with the suggested grammatical changes. Councilor Duggan seconded the motion. Ayes: 3 Nays: 2 (Garlock and Paper) Mr. Jim Walston, attorney representing Metro Storage, stated that in light of this vote, and the passage of the ordinance to allow personal self -storage facilities as a use in the Industrial Park last May, and the testimony heard tonight, he requested a polling of the Councilmembers that voted in favor of the denial as to how the FAR promotes the authorized regulatory powers of the City of Mendota Heights. City Attorney Andy Pratt stated that a vote was taken to deny the variance and he suggested that any additional communication occur through written means. January 7, 2020 Mendota Heights City Council Page 9 of 12 Councilor Petschel stated that she is puzzled by the question and agreed that if there are additional questions the applicant would want answered, those should be submitted in writing. Mr. Walston stated that he thought it would be best for the City's position to state the legal reasoning as to why the Council believes the FAR limitation promotes the best interest for the City of Mendota Heights. He stated that he is not hearing any and has not heard any for the past year. He stated that if the three Councilors are unwilling to do that, he accepts that. Councilor Petschel stated that they would be willing to do so, but in writing and on advice of legal counsel. B) APPOINTMENTS TO HISTORIC PILOT KNOB TASK FORCE City Administrator Mark McNeill stated that the Council was being asked to consider the six recommended appointments to the Historic Pilot Knob Task Force. Those recommended are: Al Singer --Involved in conservation education, natural resource management and land acquisition for more than 40 years. Autumn Hubbel—Outdoor Education Supervisor for Dakota County Parks, Christine Soutter—Member of the Pilot Knob Preservation Association since 2004. Dale Bachmeier--General Manager of Acacia Park Cemetery, Juanita G. Corbine Espinosa—Recommended by the Pilot Knob Preservation Association (PKPA) to represent PKPA on the Task Force. Gail Lewellan--an advocate for the preservation of Pilot Knob/Oheyewahe since 2003. She was a founding member of the Pilot Knob Preservation Association. Councilor Petschel moved to approve the six appointments to the Historic Pilot Knob Task Force as presented. Councilor Duggan seconded the motion. Ayes: 5 Nays: 0 C) DETERMINE DATE FOR INDEPENDENCE DAY FIREWORKS DISPLAY City Administrator Mark McNeill provided a brief background on this item. He stated that the Council has been asked whether there is interest in holding the fireworks display on Sunday, July 5th. It was the consensus of the Council to leave the fireworks display on July 4tn January 7, 2020 Mendota Heights City Council Page 10 of 12 COMMUNITY ANNOUNCEMENTS City Administrator Mark McNeill announced that the Royal Ball will be held on February 9th in South St. Paul, while Blade with the Blue will be held on February 8th at Friendly Hills Park. The City is making its best effort to have outdoor ice, but that is weather dependent. COUNCIL COMMENTS Mayor Garlock stated that thoughts and prayers from the Council and City go out to Officer Eric Matson of Waseca Police Department who was shot attempting to make an arrest on Monday night. He stated that the City also experienced the passing of retired Officer David Olmstead, Badge #2214, who worked on the Mendota Heights Police Department for over 30 years. He stated that the memorial service will be held at the Fort Snelling Chapel on January 15th Councilor Paper wished everyone a happy new year and noted that the Council needs to do a better job of being more efficient and not getting bogged down in the details at meetings. Councilor Duggan sent wishes of recovery to Mayor Garlock and a happy new year to everyone. ADJOURN TO CLOSED SESSION At 9:15 p.m., Mayor Garlock stated that as permitted by Minnesota Statutes, Section 13D.05, Subdivision 3(c)(3), the purpose of the closed session is to discuss a potential offer for the purchase of real property at 2085 Valencour Circle. Councilor Miller moved to adjourn the Regular Session to a Closed Session of the Council. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 At 9:45 p.m., Councilor Miller moved to return to the Regular Open Session of the City Council. Councilor Petschel seconded the motion. Ayes: 5 Nays: 0 City Administrator McNeill stated that no official action was taken by the Council in the closed session. The Council will provide a summary of the closed session at the next regular meeting. EVITrelff'"40 Councilor Paper moved to adjourn. Councilor Miller seconded the motion. Janumy 7, 2020 Mendota Heights City Council Page 11 of 12 Ayes: 5 Nays: 0 Mayor Garlock adjourned the meeting at 9:46 p.m. Y Neil Garlock Mayor ATTES Lorri Smith City Clerk January 7, 2020 Mendota Heights City Council Page 12 of 12