Loading...
2007-01-16 City Council minutesPursuant to due call Heights, Minnesota Heights, Minnesota CALL TO ORDER • January 16, 2007 Page 1 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, January 16, 2007 and notice thereof, the regular meeting of the City Council, City of Mendota was held at 7:30 o'clock p.m. at City Hall, 1101 Victoria Curve, Mendota PLEDGE OF ALLEGIANCE AGENDA ADOPTION Ayes: 5 Nays: 0 APPROVAL OF MINUTES Ayes: 5 Nays: 0 CONSENT CALENDAR Mayor Huber called the meeting to order at 7:30 p.m. The following members were present: Mayor Huber, Councilmembers Duggan, Krebsbach, Schneeman and Vitelli. Council, the audience and staff recited the Pledge of Allegiance. Mayor Huber added Item #8.d., review of the Lilydale EAW letter, as well as a special presentation by Fire Chief Maczko. Councilmember Krebsbach moved adoption of the agenda as amended. Councilmember Schneeman seconded the motion. Councilmember Duggan moved to approve the minutes of the January 2, 2007 City Council meeting minutes as corrected. Councilmember Schneeman seconded the motion. Councilmember Duggan moved approval of the consent calendar for the meeting as revised with the removal of item 6.d and 6.j, and authorization for execution of any necessary documents contained therein. a. Acknowledgement of the approved minutes from the October 11, 2006 and November 22, 2006 Airport Relations Commission Meetings. b. Acknowledgement of the Minutes from the January 9, 2007 Park & Recreation Commission Meeting. c. Acknowledgement of the Monthly Fire Department Report for December 2006. d. Acknowledgement of the Treasurer's Report for Ayes: 5 Nays: 0 ITEMS PULLED FOR DISCUSSION January 16, 2007 Page 2 December 2006. e. Authorization for Purchase Order for New Phone System at Fire Hall. Authorization for Leased Squad Replacement. Adoption of Resolution No. 07-04: "A RESOLUTION AUTHORIZING MENDOTA HEIGHT TO ENTER INTO AN AGREEMENT WITH THE STATE OF MINNESOTA DEPARTMETN OF TRANSPORTATION AND DAKOTA COUNTY FOR MAINTENANCE AND ELECTRICAL ENERGY FOR THE TRAFFIC CONTROL SIGNAL AT PILOT KNOB ROAD (COUNTY ROAD 31) AND MENDOTA HEIGHTS ROAD." h. Adoption of Resolution No. 07-05, "A RESOLUTION ACCEPTING FEASIBILITY REPORT AND CALLING FOR A PUBLIC HEARING ON COPPERFIELD STREET REHABILITATION PROJECT (PROJECT #200613)." Approval of the List of Contractors j. Approval of List of Claims dated January 16, 2007 and totaling $482,755.97. Councilmember Krebsbach seconded the motion. f. g. Item #6.d.: Councilmember Duggan said Ms. Schabacker will be presenting a review of the report, which will show the work that the City has done during the past four years. Councilmember Duggan said when he looked at the numbers, he felt that the City Council and Staff were doing a good job. Councilmember Vitelli said Council has been doing a good job for more than just four years. Ms. Schabacker said the fund balance at 12-31-06 was $12,056,265.22. The balance from September, 2002, was $12,876,509. Ms. Schabacker said there were some significant events during the past four years which include: the City has returned $2 million in excess tax increments to the County, the purchase of Pilot Knob for $400,000, and the early retirement of debt issues totaling $1.4 million. Ms. Schabacker said that in taking all this into account, the City is fairly close to where it was four years ago. January 16, 2007 Page 3 Councilmember Duggan moved acknowledgment of Treasurers Report for December 2006. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 PRESENTATION Fire Chief Maczko said the Fire Department was notified by the Federal Government that, after the fourth application, the City will be receiving a grant award of $133,000 to replace the department's self-contained breathing apparatus. The total project cost for the equipment is $140,000, and the city share of the cost will be $7,000. Chief Maczko said the City received support from Senators Coleman and Dayton, and Representative McCollum. Chief Maczko said this is an example of the resident's federal tax dollars being used. Councilmember Schneeman said Chief Maczko did most of the work in obtaining this grant and commended him for all his work. Chief Maczko explained what this apparatus is for and how it will be used. Councilmember Duggan offered his thanks to the fire chief and the legislators for all their work. CITY SKATING RINKS Mayor Huber announced that the City's public skating rinks are now open and listed the hours of operation. PAR 3 NEGOTIATION COMMITTEE REPORT Mayor Huber introduced former Planning Commissioner Joe Betlej, who is currently a member of the Par 3 Golf Course Negotiations Committee. Mr. Betlej said that he was present to request that Council approve a Letter of Intent establishing a purchase price for the Par 3 Golf Course, subject to a referendum vote. Mr. Betlej said early in December the City Council asked that a negotiating committee be formed to work with the owners of the golf course who suggested they would be willing to cooperate with the City in discussion of the City's purchase of the golf course. January 16, 2007 Page 4 Mr. Betlej said the committee consisted of himself, Councilmember Vitelli, Councilmember Krebsbach, City Attorney Tami Diehm, and City Administrator Jim Danielson. The first step was to get together to strategize and authorize an appraisal for the property to establish an opinion of value and to also provide the Negotiating Committee with the proper information to assist in the negotiations. Mr. Betlej said the committee met with the property owners twice to establish a price acceptable to both sides. The purchase price that was established was $2.6 million. The committee felt that this price was very favorable to the City and was substantially below what the original asking price was. Part of this agreement was that the difference between the asked price and the negotiated price will be a donated portion. The sellers will receive part of the consideration in cash and part in donation of the property to maximize the after tax proceeds of the Seller. Mr. Betlej said that action necessary tonight is for Council to pass a motion to approve the letter of intent and authorize the Mayor and City Administrator to sign it and to call for formation of an independent referendum committee to lead the referendum process and educate the citizens of the community on the referendum. The committee must be fainted and funded by citizens with private funds, insuring the neutrality of the city in the process. Mr. Betlej said Sally Lorberbaum and Robert Ehrlich have both volunteered to lead the committee. Council must provide direction to Staff on the wording of the referendum. Responding to a question from Mayor Huber, City Attorney Diehm said the letter of intent includes some changes that were made by the Seller prior to their signing the letter. Changes related to the appraisal are found under Section 12. The sellers had requested that the City provide an appraisal. She had some discussions with them late today and it is her understanding that the purchase agreement will reflect the fact that the sellers will obtain the appraisal. She will draft the purchase agreement in such a way that the city will agree to pay $2.6 million in cash, subject to the referendum, and that any value of the property above and beyond the $2.6 million will be treated as a donation to the City. It is important to note that the final appraisals are not yet done, so it is not known what the donation amount will be. Also, January 16, 2007 Page 5 even if the donation amount is deteimined as of the time of the purchase agreement, through the spring and summer there is a possibility that the property value could increase and the Seller should be able to capture the benefit of that as well. Ms. Diehm said the City has agreed that this is the way this transaction should be handled in the purchase agreement and those changes can be made to the Letter of Intent before it is executed. Ms. Diehm said the Letter of Intent is not binding upon the City; the only binding provision in the Letter of Intent binds the seller from not entering into another contract with another prospective buyer during the thirty days the City of Mendota Heights has to negotiate the purchase agreement. The provision under Section 12 that the Seller changed before they signed it will revert back to language similar to the original draft. Ms. Diehm said it is her intent that a draft purchase agreement will be presented for Council to review at the next City Council meeting to provide any changes or comments. Ms. Diehm further clarified some of the highlighted language in the document. Ms. Diehm said the purpose of the Letter of Intent is to say that the Seller is willing to enter into a purchase agreement with the City. The purchase agreement will include a provision that the seller cannot enter into any other contract until the entire referendum process is complete. The Letter of Intent is saying that during the inspection period (the date of the execution of the letter of intent through to the end of the referendum process) of the contemplated purchase, the sellers will not enter into a contract with another perspective buyer. Ms. Diehm said if for some reason the referendum is not successful, the Seller will have the opportunity to immediately enter into a new contract with another buyer. Ms. Diehm said when the Letter of Intent draft was prepared, the seller was required under paragraph six to provide at their cost, a survey of the property. The Seller is saying at this point, they are not willing to get a new survey of the property for financial reasons. The absence of that clause from the letter of intent is not saying that it will or will not end up in the purchase agreement. Ms. Diehm said a new survey would cost in the range of $4,000 to $7,000. January 16, 2007 Page 6 Councilmember Duggan said he has asked to have Item 6.j. of the Consent Calendar (List of Claims) to be pulled for this discussion as it ties into the $4,450.00 (Davis and Lagerman) survey cost. Councilmember Vitelli addressed the audience by saying that the purchase of this property is subject to a referendum. The City Council at this time is not deciding to buy it, but trying to get to the point where the City asks the citizens if they wish to buy this property, and the referendum will make clear for what purpose it will be purchased. The property will not be purchased if the referendum fails. Councilmember Krebsbach said the City is on a dual-track process: 1) a couple of weeks ago, the City brought forward a change in the Comprehensive Plan which would change the zoning to R-1-A, which will give the equivalent of 40,000 sq. ft. lots in a PUD arrangement; and 2) the City wanted to negotiate a good price for the referendum so the residents have a chance at purchasing this property. Councilmember Krebsbach referred to Mr. Danielson's letter, Page 2, Item 4, where it states that there should only be one question on the ballot: shall the city be authorized to issue general obligation bonds in a principal amount not to exceed $2.79 million for the acquisition and betterment of recreational facilities. Councilmember Krebsbach said the referendum is higher than the $2.6 million purchase price because it includes the cost of the bonding and paying for the referendum. Mr. Betlej said the cost will also include anticipated capital expenditures. Councilmember Krebsbach commended the committee for their fine work. They did a good job of negotiating and the seller was a willing seller. She noted their willingness to negotiate to come to this price. Councilmember Vitelli said he believes that the relationship with the Seller was, and continues to be, excellent, and that the discussions were open and well received by each other on the committee. Councilmember Krebsbach commended Mr. Betlej for using his professional expertise in real estate investments to serve pro bono on the committee. January 16, 2007 Page 7 Councilmember Schneeman commended Mr. Betlej and the committee. She informed the audience that the City cannot take a position on this referendum. Therefore, the City will need to have an "outside committee" to work on the referendum. Mayor Huber said there will be a meeting at City Hall for those residents who would be interested in working on a referendum committee. The meeting will be held on Wednesday, January 24th at 7:00 pm. At City Hall. Those who attend will be informed on how a referendum process works and what the city can and cannot do. Mayor Huber reviewed estimated tax increases property owners would see with a 15-year bond referendum. He stated that the City wants to be very upfront and clear to the residents as to what this referendum is all about. Mayor Huber said that if the residents are willing to purchase the property, the referendum proceeds would support the debt service of the golf course, and that any incoming green fees should be able to cover the maintenance and daily operations of the course. Mayor Huber said the City will plan on running the golf course for the time being, however, he noted that in time, it could be conceivable that this will not be a golf course, but the property will always be city-owned land and it will always be open space. Mayor Huber said the Sellers have agreed to include all the equipment with the purchase of the property. Councilmember Duggan referred to Item 12, which states "the current R-1A zoning" and asked if the new zoning went through yet. Ms. Diehm said that is the language that the Seller inserted that the City is not accepting. Ms. Diehm said she feels certain that the Seller will be fine with the previous language. Mayor Huber added that if the referendum fails, the Seller is free to develop the land as they would like in conformance with the zoning the city approved last month. Mr. Betlej said the appraised value is based on the zoning being R-1-A development of approximately 19 lots. Ayes: 5 Nays: 0 Ayes: 5 Nays: 0 January 16, 2007 Page 8 Mayor Huber said the date for the referendum is likely to be the last Tuesday of April, or the first Tuesday in May. City Clerk Kathy Swanson said that was correct. Mayor Huber expressed appreciation to the property owners, Al Spaulding, Mike Cashill and Paul Lyons, stating that he greatly appreciates the relationship with them, particularly as they and the city have been at loggerheads on this issue for three years. Sellers as discussions have been long term. Mayor Huber opened the floor to any interested party wishing to speak to this matter. Ms. Pam Ehrlich asked if their property taxes will go down after the referendum has been paid off. Mayor Huber said yes, after the bonds are retired. Ms. Ehrlich said she assumes the residents would not bear the expense of the property taxes on this parcel. Councilmember Krebsbach said city owned property is tax exempt, so the city would not pay real estate taxes nor would it incur a huge loss on the current taxes being received on this property. Councilmember Schneeman moved approval of the Letter of Intent and authorize its execution by the Mayor and City Administrator, authorize staff to obtain an updated property appraisal, direct city's bond counsel to prepare a resolution ordering a referendum and to call for fonnation of an independent referendum committee. Councilmember Duggan seconded the motion. Councilmember Duggan moved approval of the list of claims as presented. Councilmember Vitelli seconded the motion. BALLFIELD Operations and Projects Coordinator Guy Kullander, IMPROVEMENTS reviewed the recommendation for the City Council to approve ballfield improvements at Hagstrom-King Park and Civic Center. Mr. Kullander reviewed the improvements and answered questions by the Council. There will be an Open House on Tuesday, February 13th at the Regular Meeting of the Parks & Recreation Commission to Ayes: 5 Nays: 0 2007 COMMISSION APPOINTMENTS Ayes: 5 Nays: 0 LILYDALE EAW January 16, 2007 Page 9 allow neighborhood residents to discuss any concerns they may have. Councilmember Duggan moved to approve the improvements recommended by the Parks and Recreation Committee Commission as presented, and to direct Staff to prepare plans, feasibility documents and cost estimates, and to mail notices to residents or other interested parties inviting them to an Open House on Tuesday, February 13th. Councilmember Vitelli seconded the motion. Mayor Huber informed the audience that several excellent candidates were interviewed in a Council workshop earlier this evening for appointment to advisory commissions. He recommended that Council approve the following appointments: • Parks and Recreation Commission — Brian Hallman • Airport Relations Commission — Ansis Viksnins • Planning Commission — Steve Norton, Doug Hennes, and Pat Hindershied. Councilmember Schneeman moved to approve the recommended City Commission appointments as presented. Councilmember Vitelli seconded the motion. City Administrative Assistant Jake Sedlacek reviewed a draft letter to the City of Lilydale responding to Lilydale's EAW based on Council's comments at the last Council meeting. Some of the key concerns include the lack of sufficient information to support the analysis, and the enforcement of protecting measures for environmental and storm water management. The document makes a lot of claims about how these will be addressed, but does not detail any forms of enforcement. Mr. Sedlacek asked the City Council if there are any additional comments and concerns they may have before he sends in the letter which is due on Wednesday, January 17th• Councilmember Vitelli said he supports this draft letter. Ayes: 5 Nays: 0 COUNCIL COMMENTS January 16, 2007 Page 10 Councilmember Krebsbach asked if there should be some language in the letter concerning assurance of the enforcement of the critical area act. She asked that a paragraph be included. Mayor Huber opened the floor to the audience for anyone wishing to speak on this matter. Ms. Joan Olin, representing the City of Lilydale, spoke to address some of the concerns. Ms. Olin said Lilydale will be working with Barr Engineering, which did the soil borings, and will be having an escrow account to guarantee that the bluff line is shored up. The critical area will be 47' back. The developer will also be presenting plans on the storm water. Ms. Olin said the City of Mendota Heights is not being very nice in presenting their letter as the City of Lilydale is going through the proper procedures. Ms. Olin said there are no Indian burial mounds in that area. Mayor Huber explained to Ms. Olin that the City of Mendota Heights is submitting comments as a concerned governmental body, to express concerns that the city has. Mayor Huber said the City of Mendota Heights expects the City of Lilydale or the developer to be able to provide answers to the concerns that have been expressed. Councilmember Krebsbach said the City of Mendota Heights did not initiate this. Council was asked to respond to the EAW and is simply responding via a formal document to be presented to the City of Lilydale. Councilmember Vitelli moved to approve the draft letter for the Lilydale EAW as amended. Councilmember Krebsbach seconded the motion. Mayor Huber expressed his appreciation for the outstanding work done by the Negotiation Committee and City Staff on the Par 3 Golf Course project. Councilmember Schneeman congratulated all the new commission members. Councilmember Krebsbach noted that Gary Hagstrom's daughter Sarah, who is an accomplished opera soprano, and ADJOURN Ayes: 5 Nays: 0 January 16, 2007 Page 11 a graduate of Henry Sibley High School. Councilmember Krebsbach talked about Sarah's new webpage. Councilmember Duggan expressed his thanks to City Staff and Joe Betlej on their outstanding work on the Par 3 project; He also expressed appreciation to everyone who applied for appointment to a city commission, stating that the City is blessed with great talent among the residents that the City can tap into. There being no further business to come before Councilmember Schneeman moved to adjourn the City Council meeting. Councilmember Duggan seconded the motion. Time of Adjournment: 8:30 p.m. Rebecca 'affer ATTEST: Recording Secretary John May