2012-06-19 City Council minutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, June 19, 2012
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 Krebsbach called the meeting to order at 7:00 p.m. The following members were present:
Councilmembers Duggan, Povolny, Petschel and Vitelli.
PLEDGE OF ALLEGIANCE
Council, the audience, and staff recited the Pledge of Allegiance.
AGENDA ADOPTION
Mayor Krebsbach presented the agenda for adoption. Councilmember Duggan moved adoption of the
agenda.
Councilmember Vitelli seconded the motion.
Ayes: 5
Nays: 0
CONSENT CALENDAR
Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and
approval. Councilmember Duggan moved approval of the consent calendar as presented and
authorization for execution of any necessary documents contained therein; pulling items E) Resolution
Accepting Donations to Mendota Heights 5K Race and F) Receipt of Par 3 Update
a. Acknowledgement of June 5, 2012 City Council Minutes
b. Acknowledgement of May 8 and June 4, 2012 Parks and Recreation Commission Minutes
c. Acknowledgement of June 13, 2012 Airport Relations Commission Minutes
d. Approval to Enter Purchase Agreement for 2454 Lemay Lake Road
e. Resolution Accepting Donations to Mendota Heights 5K Race
f. Receipt of Par 3 Update
g. Authorize Selection of Employee Insurance/Benefits Agent of Record
h. Resolution Designating Data Practices Officials
i. Approval of Plans and Specifications and Authorize Advertisement for Quotes for Sanitary Sewer
Cleaning and Televising
j. Receipt of May Fire Synopsis Report
k. Approval of Massage Therapy and Enterprise Licenses
1. Approval of Sign Permits at 1408 Northland Drive
m. Approval of May 2012 Treasurer's Report
n. Approve the Contractors List
o. Approve the Claims List
Councilmember Vitelli seconded the motion.
Ayes: 5
Nays: 0
PULLED CONSENT AGENDA TOPIC
E) RESOLUTION ACCEPTING DONATIONS TO MENDOTA HEIGHTS 5K RACE
Councilmember Duggan noted that those that had attended know that the 25th Parks Celebration was a
great success for the City and was a community builder. He expressed congratulations and his
appreciation to all those who planned and participated in the events.
Councilmember Povolny also expressed his appreciation for all of the contributions and participation.
Councilmember Duggan moved to approve the Resolution Accepting Donations to Mendota Heights 5K
Race.
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
PULLED CONSENT AGENDA TOPIC
F) RECEIPT OF PAR 3 UPDATE
Councilmember Petschel asked Councilmember Vitelli to cover some of the high points in the Par 3
Update.
Councilmember Vitelli, the Council Liaison to Par 3, noted the following:
• The walk up revenues are over last year's
• The recreation programs are under last year's but they are hoping they will catch up
• Completed necessary maintenance on all equipment
• They are slightly over in revenue as opposed to cost with the goal to break even or slightly better on
the operations of the golf course
Councilmember Petschel asked if the city is having any success in terms of removing the chemical
sediment stain left over from the water on the front of the clubhouse. Assistant to the City
Administrator Jake Sedlacek replied in the affirmative but they still have some work to complete in that
effort.
Councilmember Petschel moved to accept the Par 3 Update.
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
June 19, 2012 Mendota Heights City Council Page 2
PUBLIC COMMENTS
Mayor Krebsbach requested that City Administrator Justin Miller and Public Works Director /City
Engineer John Mazzitello give an update on the storm damage and recovery in Mendota Heights.
Administrator Miller explained that the city and surrounding communities experienced severe storms the
previous evening and while the damage was widespread, it was concentrated in the area north of Marie
Avenue. It was estimated that a couple hundred trees were down throughout the city. Police, Fire, and
Public Works crews all responded very early in the morning and worked throughout the day. Their main
purpose was to clear the streets, making sure the rights of way were safe for passage, as well as clearing
any downed power lines, working with Xcel and the various utilities, and they all did a very good job.
Residents expressed their appreciation for the speedy responses.
Administrator Miller also informed the Council that the city would be establishing a brush pick -up
program and residents would be asked that if they have tree and brush debris from the storm, to put that
at their curb by Tuesday, June 26, 2012. The pick up of this debris could take ten to fourteen days to
complete and residents were asked to be patient.
Residents were encouraged to visit the city's website at www.mendota- heights.com for updates. A hot
line specifically for this issue was set up at 651 -255 -1361.
Administrator Miller also stated that Mendota Heights water is safe to drink. The water issues that West
Saint Paul was dealing with did not impact Mendota Heights.
Public Works Director /City Engineer John Mazzitello stated that the National Weather Service, on their
website, reported that the damage in the area was caused by eighty mile per hour straight line winds.
AWARD OF BIDS
A) AWARD OF BID FOR LEMAY LAKE ROAD PROJECT
Public Works Director /City Engineer John Mazzitello explained this was a bid award for the Lemay
Lake Road reconstruction project, which is anticipated to begin in mid -July. A bid opening was held
last week, seven bids were submitted, and those bids were outlined in the resolution. The successful low
bidder, Valley Paving Incorporated, submitted a bid of $1,331,170.60. Valley Paving has done work in
the City of Mendota Heights in the past and they are the current prime contractor with MnDOT on the
Highway 13 resurfacing project.
Councilmember Duggan moved to adopt A RESOLUTION ACCEPTING BIDS AND AWARDING
CONTRACT FOR THE LEMAY LAKE ROAD NEIGHBORHOOD IMPROVEMENTS (PROJECT
#201105).
Councilmember Petschel seconded the motion.
Mayor Krebsbach asked if this bid was as anticipated in the budget. City Engineer Mazzitello replied
that the bid was quite below the anticipated budget amount of $1.8M
Ayes: 5
Nays: 0
June 19, 2012 Mendota Heights City Council Page 3
UNFINISHED AND NEW BUSINESS
A) APPROVAL OF PILOT KNOB USE PERMIT
Assistant to the City Administrator Jake Sedlacek stated that staff brought back a draft use permit for the
Pilot Knob Open Space site. At the last Council meeting this item was discussed, specifically on the
topic of fires on this site. The document addressed fire as was suggested at the Council meeting.
Assistant Administrator Sedlacek noted that the term `recreation fire' was the right term to use and was
verified through the State Fire Marshal. The fire in the permit referenced a recreational fire; which is a
fire that is two feet maximum in height and three feet in diameter. The standard Minnesota Open
Burning Permit was included in the documentation and would be carried over to this site as well.
Assistant Administrator Sedlacek received feedback from Great River Greening and from Pilot Knob
Preservation Association on the contents of the permit, made a couple of tweaks, added the initial
paragraph that basically puts a timeline on the permit request, and a minimum group size of ten was
added.
Mayor Krebsbach asked if there is a designated area to have a fire. Assistant Administrator Sedlacek
replied there is not a designated area for a fire. Whoever makes the request will need to describe to staff
where they would like to have the fire and that would be evaluated by the fire marshal for safety and
also by Great River Greening, who is overseeing the site for the City. Assistant Administrator Sedlacek
also indicated that the location language is in the permit but staff could add more specific language.
Mayor Krebsbach requested that this permit process be reviewed in October 2012, after it has been used
a couple of times.
Councilmember Povolny asked if `any tent or membrane structure' should have a maximum square
footage of size and location of ten structures. Assistant Administrator Sedlacek answered that there is
not a set number in the document but it does give discretion to staff to evaluate what the request is and
what the site can accommodate. In this case, "staff' is City Administrator Justin Miller, Assistant to the
City Administrator Jake Sedlacek, and Great River Greening because they oversee the site. If it involves
a fire then they would include the Fire Marshal and most likely the Police Chief.
Councilmember Vitelli moved to approve the Pilot Knob Use Permit.
Councilmember Povolny seconded the motion.
Councilmember Duggan asked if this permit would be available on the City's website for residents to be
able to review and get an idea of what they need to do. Assistant Administrator Sedlacek replied that it
would be available on the city's website.
Ayes: 5
Nays: 0
June 19, 2012 Mendota Heights City Council Page 4
B) APPROVAL OF ANNUAL CONTRIBUTION
TO MENDOTA HEIGHTS ATHLETIC ASSOCIATION
Assistant to the City Administrator Jake Sedlacek stated that for many years, the City of Mendota
Heights has allocated $10,000 in its annual budget, which may be requested by the Mendota Heights
Athletic Association (MHAA) to help them off -set the costs of offering youth athletic activities to
Mendota Heights youth. The City of Mendota Heights provides recreation programs, golf programs,
and tennis programs. The athletic association provides the baseball, softball, soccer, football, lacrosse,
etc. MHAA has made their request for the $10,000 this year and also asked that this request be included
again in next year's budget.
This year a report foam will be included requesting accountability back to staff on what exactly the
money is going towards, what are the programs being offered, and what are the assurances that youth are
being protected — essentially to bring the reporting requirements from MHAA up to what the city
expects from its own recreation programs.
Mayor Krebsbach explained that the request not only includes the $10,000 but also the use of the
Mendota Heights parks system. She also requested Assistant Administrator Sedlacek explain the
reservation process and if there are any charges for the fields. Assistant Administrator Sedlacek replied
that there are a number of softball, soccer, and multi - purpose fields in the parks system, which the city
maintains at no charge to MHAA. They pay a $25 permit fee for each field requested, which covers the
use of that field for the particular season. They are not charged fees for in -house tournaments; however,
if they are doing an invitational tournament they are charged the regular field reservation fees.
Councilmember Petschel commented that the background checks on coaches only indicates traveling
baseball and in -house baseball and asked how the city would know the status of background checks on
the other sports coaches. MHAA Program Director Amelia Olson explained that background checks are
completed on all coaches. However, since most are repeat coaches throughout the year, only one
background check is necessary every three years.
Councilmember Petschel asked what is the current state on concussion training. Ms. Olson replied that
this is a new law required by the state and every coach has to take it, which is why it is on the front page
of their website.
Mayor Krebsbach expressed her wish to make sure that Mendota Heights kids are participating, at least
seventy -five percent in the lower levels, and she asked how MHAA gets kids in the programs early on.
Ms. Olson replied that she has never turned a Mendota Heights kid away, even if they ask beyond the
registration deadline. She also mentioned that MHAA is the only association in their district that offers
T -ball, in -house softball, and traveling softball, which is why the percentage of kids playing from other
areas is so high. To get young kids involved MHAA sends flyers out to all of the schools and they have
a large e -mail list.
Mayor Krebsbach asked what the by -laws state in terms of who can play on an MHAA team. Ms. Olson
replied that anyone who lives or attends school in District 197 can play on an MHAA team. MHAA
does not look at the kids as coming from a particular community; they look at them as kids who wish to
participate in a sport.
June 19, 2012 Mendota Heights City Council Page 5
Discussions were had and questions asked in regards to the City of Mendota Heights contributing funds,
parks, and fields for MHAA to use and the Council's desire to make sure that Mendota Heights children
are playing.
Councilmember Vitelli expressed his appreciation for the good spirit of cooperation between the City of
Mendota Heights and the work that MHAA does. However, since the City has some liabilities they will
ask MHAA for an annual report on how things are going so the Council is not surprised.
Councilmember Povolny mentioned that in the Code of Ethics of the MHAA By -Laws, they should add
an anti- bullying policy.
Councilmember Vitelli moved for Approval of Annual Contribution to Mendota Heights Athletic
Association
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
C) APPROVAL OF CONSENT TO TRANSFER,
MENDOTA PLAZA/WHITE PINES SENIOR LIVING
Mayor Krebsbach explained that the White Pines Senior Living Development is coming into the
Mendota Plaza area and one of the things that was needed was this consent to transfer, based on the
financial liability of the developer.
Assistant to City Administrator Jake Sedlacek stated that this item is a consent to transfer, which is part
of the fourth amendment to the Planned Unit Development Agreement between the City of Mendota
Heights and Mendota Mall Associates. There was language in the original agreement allowing for a
consent to transfer the development rights and /or property to another organization, under certain
conditions being met. As part of the process, this fourth amendment spelled out how this consent was to
take place. Attached is a letter from Minnwest Bank which describes the creditworthiness of Charles
Rothstein, who is the principal owner of White Pines Senior Living and White Pine Holdings, LLC, to
complete the development of Lot 6, Mendota Plaza Redevelopment.
Assistant Administrator Sedlacek read from the fourth amendment, item number eleven, to make sure
there were no questions as to why this was brought up.
Mayor Krebsbach asked why the documentation refers to the financial worthiness of White Pines
Holdings, LLC but the letter refers to Mr. Rothstein, not White Pines Holdings, LLC. City Attorney
Tami Diehm answered that the language in the agreement states that the lender needs to either commit to
loan White Pines funds or to make a statement as to the general credit worthiness of White Pines. The
revised form of letter that was received did add a reference to White Pine Holdings, LLC but perhaps
more importantly it added a sentence that indicated that Minnwest Bank has agreed to finance the
construction of this project. Based on that very last sentence, where the lender is saying that they have
agreed to finance the construction of the project, staff felt that it met the standard included in the
language that said they would commit to loan White Pine funds.
June 19, 2012 Mendota Heights City Council Page 6
Mayor Krebsbach asked if that meant they are loaning funds to White Pines or to Mr. Rothstein. City
Attorney Diehm replied that without seeing the details of the loan agreement she is unsure; however,
typically in this situation a bank would make a loan to the actual LLC and require a guarantee by the
principal.
Mayor Krebsbach expressed her desire to hold off on approval until staff and council are absolutely
crystal clear on this item because the Development Agreement refers to White Pines Holdings, LLC and
the Minnwest letter refers to Mr. Rothstein. She also expressed her desire to know Mr. Rothstein's
position in the White Pines Holdings, LLC.
Rob Majeski, representing Cottagewood Group Development, explained they have been working with
Mr. Rothstein for the last four years and this would be their third project working together. Typically,
Cottagewood handles the development and the design of the building and Mr. Rothstein's role is
typically choosing sites and finishing up the acquisition process. When Cottagewood originally had the
letter put together, he did work with Minnwest Bank and Mr. Rothstein to get this piece of the
Development Agreement and the amendments taken care of. Mr. Sedlacek mentioned to them that he
wanted information regarding White Pines Holdings, LLC, of which Mr. Rothstein is the sole owner.
When they updated the letter, they had Minnwest Bank add Mr. Rothstein, who is the principal owner of
White Pines Senior Living and White Pines Holdings, LLC.
Mayor Krebsbach asked if the representative understood what the Council was asking for. He replied in
the affirmative but stated that he cannot help influence and say that this is adequate based off of a
similar structure to what Paster Enterprises had done for their financial qualifications to do this project.
However, he can go back and work with it.
City Attorney Diehm said that she could send the language that staff and council is specifically looking
for to Minnwest. This could be brought back to the Council at the July 3, 2012 meeting, along with the
fifth amendment to the PUD and assuming that all gets approved that evening they would then be able to
proceed with their closing.
COUNCIL COMMENTS
Councilmember Povolny commented that he was amazed at the Fire Department, Police Department,
and city staff for their response to the storm event, and admired the people of Mendota Heights for their
participation in the clean up efforts.
Councilmember Petschel echoed Councilmember Povolny's comments.
Councilmember Duggan hoped everyone has a safe summer.
Mayor Krebsbach commented on the New Ulm invitational golf tournament. Last year Mendota
Heights resident Brian Regan was club champ and he came within one shot of making it as club champ
this year.
June 19, 2012 Mendota Heights City Council Page 7
ADJOURN
Mayor Krebsbach adjourned the meeting at 8:07 p.m.
ATTEST:
7
Lorri Smith
City Clerk
June 19, 2012 Mendota Heights City Council Page 8