2012-12-18 City Council minutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, December 18, 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.
JACK VITELLI DAY
Mayor Krebsbach noted that this day had been proclaimed as Jack Vitelli Day in honor of
Councilmember Vitelli's service to the community as a Councilmember for twelve years. She also
expressed her gratitude to him.
AGENDA ADOPTION
Mayor Krebsbach presented the agenda for adoption. Councilmember Duggan moved adoption of the
agenda.
Councilmember Petschel 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) Receipt of
November 2012 Par 3 Update, F) Approve Renewal of Tobacco Licenses, G) Approve Resolution 2012-
111 Accepting Donation to the Police Department, and I) Approval of 2013 Insurance Contributions to
LELS Local 76 and Teamsters Local 320.
a. Acknowledgement of December 4, 2012 City Council Minutes
• Mayor Krebsbach noted a correction to the minutes. Councilmember Petschel moved acceptance
of the revised minutes. Councilmember Duggan seconded the motion.
December 18, 2012 Mendota Heights City Council Page 1
Ayes: 5
Nays: 0
b. Acknowledgement of December 4, 2012 City Council Closed Session Minutes
c. Acknowledgement of December 11, 2012 Parks and Recreation Commission Minutes
d. Receipt of November 2012 Fire Department Synopsis Report
e. Receipt of November 2012 Par 3 Update
f. Approve Renewal of Tobacco Licenses
g. Approve Resolution 2012-111Accepting Donation to the Police Department
h. Approve Resolution 2012-113Annual Contribution to Fire Relief Association
i. Approval of 2013 Insurance Contributions to LELS Local 76 and Teamsters Local 320
j. Approve Resolution 2012-112 Employee Position Placement/Pay Classification Plan for 2013
k. Approval of Minnesota Public Employees Association/Sergeant's Unit Contract
1. Receipt of November 2012 Treasurer's Report
m. Approval of Contractors List
n. Approval of Claims List
Councilmember Petschel seconded the motion.
Ayes: 5
Nays: 0
PULLED CONSENT AGENDA ITEMS
E) RECEIPT OF NOVEMBER 2012 PAR 3 UPDATE
Councilmember Vitelli reported that Par 3 has a positive bottom line for 2012 and it has been managed
in an outstanding manner by the staff, including Jen Zweber, the local clubhouse manager; Jake
Sedlacek; and Justin Miller. The Par 3 is in the black again.
Mayor Krebsbach expressed her appreciation for Councilmember Vitelli meeting with the Par 3
Committee every month for the past year and one half.
Councilmember Povolny moved to Accept the November 2012 Par 3 Update.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
F) APPROVE RENEWAL OF TOBACCO LICENSES
Councilmember Duggan noted somewhat of an anomalous entry — Walgreens. Walgreens dispenses
medication to keep people healthy and dispenses cigarettes at the same time. It seems odd to have both
of them under one roof.
Councilmember Duggan moved to Approve Renewal of Tobacco Licenses.
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
December 18, 2012 Mendota Heights City Council Page 2
G) APPROVE RESOLUTION 2012 -111 ACCEPTING DONATION
TO THE POLICE DEPARTMENT
Chief of Police Michael Aschenbrener explained that the City of Mendota Heights was a Charter Partner
of an Explorer Post in 2004 and 2005 and received donations at that time to be used for volunteer
services within the community. The City has never successfully been able to recruit enough kids to have
an active post. Under the Patriot Act changes, it was noted that this account could not just sit
indefinitely awaiting use. Therefore, the City closed the account and the money has been earmarked by
finance to make sure it goes to volunteer services as was originally intended by the donors.
Mayor Krebsbach stated that the Boy Scout Troops in the area are very active and applauded the City for
having an Explorer Post at that time. She expressed her appreciation in the way it was determined to
disburse the funds.
Councilmember Duggan moved to adopt "Resolution 2012 -111 Formally Accepting $688.67 from
Explorer Post 911 to the City of Mendota Heights"
Councilmember Vitelli seconded the motion.
Ayes: 5
Nays: 0
I) APPROVAL OF 2013 INSURANCE CONTRIBUTIONS TO LELS LOCAL 76
AND TEAMSTERS LOCAL 320
City Administrator Justin Miller explained that at the conclusion of 2011, beginning of 2012, the City
approved contracts with the two unions. At the time, the LELS Local (Police Officer employees) and
the Teamsters Local 320 (Public Works employees) had two year contracts covering the years 2012 and
2013. When those contracts were approved it was unknown what the insurance rates would be for 2013
so there was a reopener clause. Therefore, it was necessary to formally obtain consent from both unions
that they accepted what was approved in the budget for insurance contributions, medical insurance, as
well as all of the other supplemental life, disability, and dental line. This is exactly what was approved
in the budget and is consistent with the nonunion employees. This is a formal acknowledgement of that.
Councilmember Povolny moved to Approve the 2013 City Insurance Contribution of $1,452.00 per
month for LELS Local 76 and Teamsters Local 320 employees.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
PUBLIC COMMENTS
There were no public comments
December 18, 2012 Mendota Heights City Council Page 3
UNFINISHED AND NEW BUSINESS
A) APPROVE 2013-2017 STREET IMPROVEMENT PLAN AND SANITARY SEWER
IMPROVEMENT PLAN
Public Works Director/City Engineer John Mazzitello explained this was the annual review and
approval of the five year infrastructure maintenance plans — the 2013-2017 Street Improvement Plan as
well as the Sanitary Sewer Improvement Plan. These plans were forecasting documents and they did not
obligate the City to any future expenditure, as they would be taken care of through the budget cycle and
with each individual project as it worked through the process.
City Engineer Mazzitello reviewed the 2013-2017 Street Improvement Plans, which Mayor Krebsbach
noted would be available for the public to review on the City's website at http://www.mendota-
heights.com/. Each year the infrastructure improvement plans are presented to the Council and to the
public.
The Street Improvement Plan consisted of three major components: 1) Street Reconstruction, 2)
Rehabilitation, and 3) Preventative Maintenance. City Engineer Mazzitello shared a map showing the
street improvement plan — street reconstructions and rehabilitations — for 2013 through 2017, noting that
the 2013 projects were already underway.
2014 Plans
• Reconstruction of Victoria Road, from the Lilydale border on the north to Lexington on the
southwest
• Rehabilitation of the Centre Pointe Business Neighborhood; Waters Drive, Commerce Drive, and
Lemay Avenue
2015 Plans
• Reconstruction of Mendota Road, from The Village to Delaware
• Rehabilitation of the Warrior Drive Neighborhood
• Rehabilitation of the Strafford Road Neighborhood
2016 Plans
• Reconstruction of Friendly Hills — would be a water main replacement but as the water main is
located underneath the street, the street would be excavated and then reconstructed
• Rehabilitation of Marie Avenue from Dodd to Victoria
2017 Plans
• Rehabilitation of Emerson /Sylvandale Neighborhood had been replaced with the Brompton/Winston
Neighborhood as a greater need due to the number of water main breaks in that neighborhood
• Rehabilitation of Wesley Lane Neighborhood with some associated cul-de-sacs, including South
Plaza Drive
Also included in the Street Improvement Plan was preventative maintenance; such as the crack-sealing
and seal coating programs, which would extend the life of the roadways.
December 18, 2012 Mendota Heights City Council Page 4
Councilmember Duggan asked about the area from Wesley to Spring Creek Circle. City Engineer
Mazzitello replied that Spring Creek Circle was the first cul -de -sac south of Marie and has been
scheduled for rehabilitation in 2017.
Councilmember Petschel asked for clarification that if residents looked at the City budget for 2013 in
terms of street improvements, they would see a significant increase in projects due to the backlog of
preventative maintenance. City Engineer Mazzitello confirmed.
Councilmember Petschel also noted that in the past Council has simply acknowledged these plans and
not addressed them in detail. However, she wished for the residents to understand that, depending on
budget and the city's needs, this plan could be adjusted. City Engineer Mazzitello confirmed that this is
correct.
City Engineer Mazzitello also noted that in 2015, Mendota Road is scheduled for reconstruction, making
all of the streets in Mendota Heights in confoi inance with the City's reconstruction policy; that is road
bed, construction, and surface would all meet the requirements that the City has mandated. From that
point forward, the City would be in a rehabilitation and preventative maintenance mode.
Councilmember Povolny asked why the roads that were reconstructed in 2012 are all scheduled to be
sealcoated in five years. City Engineer Mazzitello replied that the streets would be sealcoated in 2017 to
prevent cracks from coming up through the pavement. Councilmember Povolny also asked for
confirmation that sealcoating is not assessed to the residents. City Engineer Mazzitello confirmed that
this is correct as the preventative maintenance program is funded by the City.
City Engineer Mazzitello stated that each year staff has developed a different component of the city's
infrastructure into a five -year plan, starting with the streets and moving on to the sanitary sewer. At this
point in time, the Trail Improvement and Management Plan is being reviewed by the Parks and
Recreation Commission and it is anticipated that this plan would be brought before the Council
sometime later in 2013.
City Engineer Mazzitello gave a brief review of the 2013 -2017 Sanitary Sewer Improvement and
Maintenance Plan, which projects the sewer cleaning and televising, lining, and repair activities to the
sanitary sewer system. The plan divides the city into six parts, so every six years the entire city's
sanitary sewer system would have been cleaned. The sewer lines proposed to be cleaned in 2013 would
be cleaned again in 2019.
Also incorporated in this plan was a funding mechanism for lining. As staff televises these lines after
they are cleaned, they look for leak anomalies, places where large bunches of tree roots have penetrated
the sewer line. The City would then put a liner inside the sewer pipe, which would prevent future leaks
and anomalies from getting into the sewer line.
The third component in the sanitary sewer plans were the capital improvements. In 2013, a lift station
rehabilitation has been scheduled. There is also a lift station rehabilitation scheduled in 2014 and a
sanitary sewer main replacement scheduled in 2015. All were programmed into the document and
budgeted for. It is anticipated that this work would be paid for from the sanitary sewer utility fund.
December 18, 2012 Mendota Heights City Council Page 5
Mayor Krebsbach asked if the higher costs are due to the lift stations. City Engineer Mazzitello
confirmed and stated that in 2013, 2014, and 2015 there would be a higher expenditure than in 2016 and
2017 because of those capital improvements. Mayor Krebsbach noted that the lift stations are necessary
because Mendota Heights is very hilly and gravity cannot be used. The City has five lift stations and
there is one in Lilydale, which is operated under a cooperative agreement.
Councilmember Petschel stated that it was her understanding that some of these lift stations are weak
and have been requiring extra repair. City Engineer Mazzitello confirmed that most of the city's lift
stations are original equipment; in excess of thirty years old.
Councilmember Vitelli complimented Mazzitello for creating such thorough long-range plans. He also
complimented the Engineering staff for all of the outstanding work they do.
Mayor Krebsbach commended the Council for paying attention to the plan, and acknowledged the work
that City Engineer Mazzitello has done to lay the information out for them.
Councilmember Duggan asked for clarification in regards to funding sources for the Street Improvement
Plan. City Engineer Mazzitello explained that Other Government Funding includes grants, city general
tax levy money, or other city funds not listed. He explained the Special Assessments; the city's
Reconstruction/Rehabilitation Policy states that the city can assess up to fifty percent of the construction
project costs to the benefiting residents. The estimated assessment funds listed are less than fifty percent
as the city typically does not assess the full fifty percent.
Councilmember Duggan moved to approve the Street Improvement Plan and the Sanitary Sewer
Improvement and Maintenance Plan as presented.
Councilmember Vitelli seconded the motion.
Ayes: 5
Nays: 0
B) APPROVE RESOLUTION 2012-114 UTILITY FEE RATES FOR 2013
Public Works Director/City Engineer John Mazzitello explained that improvements to the city's sanitary
sewer system are funded by the sanitary sewer bills paid by residents and businesses. Staff identified a
need for additional revenue in the sanitary sewer program and is proposing a five percent rate increase to
the sanitary sewer fees. A typical residence who pays the base sanitary sewer fee, which currently
stands at $55.00/quarter, would pay $57.75/quarter; a $2.75/quarter increase.
One of the main drivers for the increase is the fee increase from Metropolitan Council Environmental
Services, who runs the sanitary sewer system. The commercial rates would go up five percent across the
board.
Along with this, staff also looked at the city's storm sewer utility fund, which is a flat $5 fee on the
sewer bill. This goes towards the maintenance of the city's storm sewer system — catch basins, outlets,
etc. In forecasting the projects in the Street Improvement Plan, there would be enough money in the
fund balance to cover the reconstruction of Hunter Lane and Orchard Circle and the installation of the
storm sewer. New storm sewer on a street is not assessed to the residence but is paid for out of this
December 18, 2012 Mendota Heights City Council Page 6
utility fund. In 2014, it is anticipated that there would not be enough monies in the storm sewer utility
fund to cover the reconstruction of Victoria.
Staff is asking for a $2.25 increase to the quarterly storm sewer utility fee that is on the sewer bill. This
would balance out the increase, combined with the $2.75 for the sanitary sewer, to make a total quarterly
bill increase of $5; or $20 /year. The five percent increase would be across the board regardless of land
use.
City Engineer Mazzitello shared a chart showing what would happen to the sanitary sewer fund in future
years with no rate increase. The fund balance would run negative in 2015 and continue its deficit
through 2017. If the fee is increased five percent per year in 2013, 2014, and onward there would be a
healthy fund balance. The Metropolitan Council costs are estimated to increase by three percent per
year, which is the average seen over the last fourteen or fifteen years. The other costs shown on the
chart were city costs for the annual maintenance of the sewer system — 2013, 2014, and 2015 are
substantially higher than 2016 and 2017 because of the capital improvement projects mentioned during
the Sewer Improvement Plan presentation.
City Engineer Mazzitello shared a table outlining the storm sewer utility, similar to the sanitary sewer
utility, if there was no fee increase. At the end of 2012, the fund balance would be approximately
$54,000. After the Hunter /Orchard Reconstruction and the annual maintenance of the stoiiii sewer, the
fund balance would go down to $8,350. The Victoria Road Reconstruction in 2014 would result in
nearly a $340,000 deficit. Mendota Road is in 2015 and in 2016 -2017, with no new storm sewer
construction plan the negative balance would begin to decrease. Should the fee increase be approved,
the fund balance in 2013 — after the Hunter /Orchard Reconstruction and the annual maintenance of the
storm sewer — would be $128,000. The city would still go negative in 2014 after the Victoria Road
Reconstruction, with a very small negative balance in 2015 following Mendota Road. However, the
fund could begin to pay back that debt starting in 2015 but completing the payback in 2016. Staff did
not feel that a rate increase above the $2.25 would be palatable to either the Council or the public.
Keeping the total aggregate increase to the sewer bill to $5.00 was as much as staff was willing to go.
The deficit in 2014 and 2015 could be handled by borrowing from another fund that the sanitary utility
would pay back in time.
Councilmember Vitelli moved Approval of a "Resolution Authorizing Sanitary Sewer Usage Rates and
Storm Sewer Utility Fees Beginning in the First Quarter of 2013"
Councilmember Povolny seconded the motion.
Ayes: 5
Nays: 0
COUNCIL COMMENTS
Councilmember Vitelli expressed his appreciation for the acknowledgement of Jack Vitelli Day and the
wonderful reception that took place before this meeting. He also expressed his thoughts looking back
over the last twelve years he has served on the Council, the Mayors he has worked under, the
Councilmembers he has worked with, and the outstanding staff. He also commended the residents of
Mendota Heights for their maturity, success, knowledge, and the respectfulness they have always
shown. His biggest challenge was the complexity of city finance. He also expressed his welcome to the
December 18, 2012 Mendota Heights City Council Page 7
new Councilmember, Mr. Steve Norton, who has served the City as Chairman of the Planning
Commission and as a member of the Planning Commission.
Councilmember Povolny expressed his appreciation in working with Councilmember Vitelli as he has
been a friend, mentor in city matters, and a mentor in business matters. He wished everyone a Happy
Holiday and a Happy New Year. He also complimented Public Works in handling the last storm so
well.
Councilmember Duggan expressed his appreciation in working with Councilmember Vitelli over the last
several years, not only on the Council but on the Planning Commission. He commended
Councilmember Vitelli on taking the business approach — that concept of city operations — has been a
blessing and a gift to the City. Councilmember Vitelli has kept the Council on topic many times and is
very concise in his thinking.
Councilmember Petschel stated that she has not known Councilmember Vitelli for as long as some
others; however, she would not be on the Council if not for him. She was on the Airport Relations
Commission, and Jack recommended she run for the Council. She expressed her appreciation for his
support and encouragement.
Mayor Krebsbach said that she has worked with Councilmember Vitelli for twelve years and there have
been many times where they did not vote the same way, but they have always had great respect for each
other. She stated that Councilmember Vitelli has been instrumental in Mendota Village, in the Par 3, the
Mendota Mall in teiins of the development and also on mediation committee, and his decision making
and experience as an executive has been a great benefit. She stated she has enjoyed serving with him.
Chief of Police Michael Aschenbrener thanked Councilmember Vitelli for his service to the City. He
also reminded the residents that the police are collecting Toys 4 Tots until 2:00 p.m. on December 19.
ADJOURN
Councilmember Vitelli moved to close the meeting.
Councilmember Duggan seconded the motion.
Ayes: 5
Nays: 0
Mayor Krebsbach adjourned the meeting at 7:50 porn.
ATTEST:
Lorri Smith
City Clerk
Sandra Krebsb. ' h
Mayor
December 18, 2012 Mendota Heights City Council Page 8