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2005-12-20 City Council MinutesPage No. 1 December 20, 2005 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, December 20, 2005 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:30 o'clock p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Huber called the meeting to order at 7:30 p.m. The following members were present: Acting Mayor Krebsbach, Councilmembers Duggan, Schneeman and Vitelli. Mayor Huber had notified Council that he would be absent. PLEDGE OF ALLEGIANCE Council, the audience and staff recited the Pledge of Allegiance. AGENDA ADOPTION Councilmember Duggan moved adoption of the revised agenda for the meeting. Councilmember Schneeman seconded the motion. Ayes: 4 Nays: 0 APPROVAL OF MINUTES Councilmember Duggan moved approval of the minutes of the regular meeting held on December 6, 2005 as amended. Councilmember Vitelli seconded the motion. Ayes: 4 Nays: 0 CONSENT CALENDAR Councilmember Schneeman moved approval of the consent calendar for the meeting, revised to move items 6g, personnel policy amendment, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgement of the minutes from the November 9, 2005 Airports Relations Commission meeting. b. Acknowledgement of the NDC4 meeting minutes and agenda. c. Acknowledgement of the Treasurer's monthly report for November 2005. d. Acknowledgement of recap of issues discussed at the December 6, 2005 Joint City Council /Park Commission workshop. e. Authorization for the installation of a window and "pass - through" in the Police Department. Page No. 2 December 20, 2005 f. Authorization for the Police Department to purchase Pro -Tech ballistic body bunkers. g. Adoption of Resolution No. 05 -133, "RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF THE GIFTS FROM THE VFW AND CATHY CONVERY TO THE CITY OF MENDOTA HEIGHTS." h. Adoption of Resolution No. 05 -134, "A RESOLUTION AMENDING PAY CLASSIFICATION SCHEDULE FOR NON ORGANIZED EMPLOYEES TO REFLECT A 3.0 PERCENT ANNUAL ADJUSTMENT FOR 2006" and Resolution No. 05- 135, "A RESOLUTION ADOPTING A SCHEDULE OF COMPENSATION FOR CERTAIN EMPLOYEES FOR 2006 AND ESTABLISHING CERTAIN OTHER BENEFITS." i. Adoption of Resolution No. 05 -136, "A RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT FOR JOB NUMBERS 9906, 200202 AND 9904, TOWN CENTER UTILITIES AND STREETS IN THE FREEWAY j. Approval of the list of contractor licenses dated December 20, 2005. k. Approval of List of Claims dated December 20, 2005 and totaling $374,205.54. Councilmember Vitelli seconded the motion. Ayes:4 Nays: 0 PERSONNEL POLICY Council acknowledged a memo from Administrator Danielson regarding a proposed amendment to the personnel policy to allow the use of extended disability time for the first day of an illness. Councilmember Duggan asked staff to prepare a clarification of the language relating to repayment of an extended disability deficit. Councilmember Schneeman moved to approve the personnel code amendment and direct staff to prepare a clarification of the deficit repayment language. Councilmember Duggan seconded the motion. Ayes: 4 Nays: 0 PUBLIC COMMENTS Acting Mayor Krebsbach informed the audience that Mr. Cliff Timm recently passed away. She asked Councilmember Schneeman to comment on behalf of Council. Councilmember Schneeman stated that she was very fond of Mr. Timm and offered Council's condolences to his family. Mr. Timm Page No. 3 December 20, 2005 was a consistent and familiar sight at Council's meetings and a unique individual. He had vision and enthusiasm and enhanced the community with many gifts of money and time to enhance the qualify of life in Mendota Heights, including installation of a culvert under Wagon Wheel Trail the annual fishing derby and the aerator in Rogers Lake. He has left money in a trust to continue the fishing derby. Mr. Timm also gave $1,000 each to St. Thomas Academy and to help eliminate the goose problem. Councilmember Schneeman offered Council's condolences to the Rasmussen and Weyerhaeuser families on the passing of Peggy Rasmussen King, who grew up in Mendota Heights and who was also a great environmentalist. She also offered condolences to Police Detective Mario Reyes and his family on the death of his father -in- law. Councilmember Duggan proposed that the annual fishing derby be named the Cliff Timm Memorial Fishing Derby. The recommendation was referred to the Parks and Recreation Commission. COMMISSION RESIGNATION Acting Mayor Krebsbach acknowledged a letter of resignation from Airport Relations Commissioner John Roszak. She commended Mr. Roszak for his service. Ayes: 4 Nays: 0 Councilmember Schneeman moved to direct staff to send a letter of appreciation to Commissioner Roszak. Councilmember Duggan seconded the motion. Councilmember Duggan congratulated Ms. Elizabeth Petschel for her election to chair of the Airport Relations Commission. EXCESS TAX INCREMENT Council acknowledged a memo from Finance Director Schabacker recommending that the city return $1,000,000 in excess tax increment to Dakota County for distribution to the city, county and school district. Mr. Mark Ruff, from Ehlers & Associates, was present for the discussion. Finance Director Schabacker stated that at the last meeting she recommended transferring some of the excess tax increment to the county and Council had some questions on what the money can be used for. She asked Mr. Ruff to give Council an overview of the tax increment district this evening. Page No. 4 December 20, 2005 Mr. Ruff stated that it is important to note that TIF in Minnesota has become very complicated. Mendota Heights created a TIF district in 1981 to undertake some redevelopment efforts and to promote commercial/industrial growth. The city has been very successful in that effort. The increased taxes from new development is used for site development costs and is captured for a period of time up to 26 years. The district is nearing the end of its life and there is a question as to what cities can do with tax increment if there are no other current obligations. The city received special legislation in 2000 to pay for existing obligations in the industrial park and to spend up to $4.5 million for the Town Center project. The city has reached that $4.5 million maximum and can either hold the excess money until the end of the district and return it all at once to the county or return it annually. He recommended that the city repay the money on a periodic basis as a good faith effort so that it can be distributed to the other taxing districts. The city will receive a portion of it back and can use that money for whatever Council deems appropriate. Acting Mayor Krebsbach stated that it is her understanding that the city will continue to receive tax dollars into this account, so the disbursement just takes care of the excess balance and that will continue to accrue and pay off the pay -as- you -go notes. Councilmember Schneeman asked how much money the city will receive back. Finance Director Schabacker responded that the city will receive about one -third of the money back. Acting Mayor Krebsbach asked if it would be an advantage for the city to hold the money and invest it and accrue interest on it. Mr. Ruff responded that the interest that would accrue would be treated as tax increment and that would have to be returned along with the rest of the money. Councilmember Duggan moved to authorize the Finance Director to return $1,000,000 of excess increment to Dakota County before December 31, 2005. Councilmember Vitelli seconded the motion. Ayes: 4 Nays: 0 CASE NO. 05 -42, SCHUSTER Council acknowledged a memo and proposed resolution relative to continued discussion on the Joseph and Betty Schuster application for subdivision of 1900 Wachtler Avenue. Council also Page No. 5 December 20, 2005 acknowledged a letter from Mr. & Mrs. Schuster withdrawing their application and requesting waiver of any new application fee should they reapply in the future. Mrs. Schuster stated that they are withdrawing their application for subdivision. When they wish to reapply, they request the city to waive the new application fee required for subdivision and also request waiver of an appearance before the Planning Commission. Councilmember Duggan stated that he can support the request so long as there are no changes to the plans or the plat that have been submitted to the Planning Commission and Council. Mrs. Schuster stated that it will be the same plan. The only thing that might change everything is what the city comes up with in its infill process. Acting Mayor Krebsbach stated that she can support waiving the fee but thinks it is a good thing to go through the Planning Commission. Councilmember Duggan stated that Council asked the Schusters to hold off on this until the infill process is finished and he thinks it is appropriate not to charge a new fee. If there are no changes to their plan, they do not need to go to the Planning Commission as they have already acted on the plan. Councilmember Vitelli stated that he supports no fee but does not support not returning to the Planning Commission unless Council does not change anything in the ordinance as the result of the infill study. He stated that it is likely that something will be changed, and if there are changes to the ordinance he thinks it is imperative that the commission look at the proposal under the new law. Mrs. Schuster stated that the city planner would know if her property would not be subdividable and she would be in the same position she is in now. Acting Mayor Krebsbach responded that Council could agree to waive the fee and say that any change that either the Schusters or the city make would require Planning Commission review. Councilmember Vitelli moved to accept the proposal of no fee, but if there are any changes to the Schuster application or any changes to the city's ordinances, Planning Commission review will be required. Page No. 6 December 20, 2005 Councilmember Schneeman seconded the motion. Ayes:4 Nays: 0 LIQUOR ORDINANCE Council acknowledged a memo from the City Clerk regarding a AMENDMENT REQUEST request from Mr. Robert Kowalski for an amendment to the liquor ordinance to allow someone who holds an off -sale liquor license to also apply for an on -sale license. Mr. Kowalski was present for the discussion. Clerk Swanson informed Council that Mr. Kowalski approached city staff about a month ago with a proposal to develop a deli with wine in the new market he is planning in Town Center. In order for him to apply for a license, the city would need to amend its ordinance. Under the ordinance, someone who holds an off -sale license cannot apply for an on -sale license. Acting Mayor Krebsbach stated the is a request for a second liquor license in the Village at Mendota Heights. The Kowalskis hold an off -sale license for the Wine Market. She stated that one of her concerns is that one of the things the city wants very much is a grocery store and Mr. Kowalski is proposing to sell wine in the store. Mr. Kowalski reviewed his preliminary drawings for the market /deli. He stated that he is proposing to lease the north 3,100 square feet of Building E at the Village at Mendota Heights for a gourmet market /convenience grocery. He would like to have a seating area for 50 people where wine can be served by the glass. It would be an upscale treatment and he hopes there is some way to pass through with salads and sandwiches from the deli into the dining area. Mr. Ross Fefercorn has come up with an idea about sharing restrooms so that he has more room to expand the market format. Acting Mayor Krebsbach stated that what Mr. Kowalski is basically asking for is a restaurant that is attached to a grocery store. She asked what would preclude Mr. Kowalski from turning it into a restaurant and not having a grocery store in the future. Mr. Kowalski responded that partly why the design is as it is proposed is because there is a bit of protection against what could possibly come in to the Mendota Plaza. There is no guarantee that someone won't come in to the Mendota Plaza with a grocery store. The wine helps to protect the business model. He would have the flexibility to expand to more of a deli /restaurant with a wine format. Page No. 7 December 20, 2005 He stated that he could guarantee it will be a grocery store as long as competition does not go in across the street. Acting Mayor Krebsbach stated that an application came in last week for a wine and beer license for Ziggy's deli. She stated that the city has been very careful about granting liquor licenses. One of the things she would want to see is what else Mr. Fefercorn is planning for restaurants that may desire liquor licenses. Responding to a question from Councilmember Schneeman asked how many on -sale licenses the city can issue, the City Clerk stated that the liquor ordinance allows for the issuance of six on -sale licenses. There are currently two licenses, LeCordon Bleu and the Marriot. She has received an application for a wine /3.2 malt beverage license for Ziggy's and Mr. Kowalski proposes to apply for an on -sale wine license. If those are approved, only two additional licenses could be issued Mr. Fefercorn informed Council that he is talking to several upscale restaurants now. They are all in discussion mode and there are no agreements. There was a comment in the Minneapolis paper that Bella Note is looking at the site, and they are considering the location. That is entirely in the discussion stage. There are at least two to three more proposals floating around. All of the finer dining establishments would want full liquor licenses. He stated that he supports Mr. Kowalski's idea in concept and thinks that there has to be something unique that makes the store an interesting draw for the area. The synergy of having an on -site butcher and chef means that you cannot rely on takeout. There will be people who will want to consume the food on site. Having the wine as a complement would be a very nice touch and would ensure the store's longevity. He thinks it is a great idea. There is room for one nice restaurant in the center, but not two, and perhaps a pizza restaurant. He thinks this would serve the day time lunch crowd and the community deserves it. Councilmember Vitelli stated that he completely supports the concept. When he was campaigning, a lot of people asked why they have to leave the city to get spices or basic food. The city needs the grocery store and providing the wine license will increase the likelihood of success. Council cannot guarantee it will always be a grocery store any more than they can guarantee Caribou or Fantastic Sams or the Wine Market will always be there. If for some reason it is not successful, then perhaps it is not the place for a grocery store. Page No. 8 December 20, 2005 He thinks this is the best plan for providing some of the needs that the residents have voiced. Acting Mayor Krebsbach stated that one of her concerns is that the Wine Market is selling low end wines, and when the Kowalskis came before Council they said it would be high end wines. The store has wines that are competing with Mendota Liquor. Buon Giorno made an agreement with Lilydale that it would only carry fine wines and they have held to that. Mr. Kowalski responded that the Wine Market has a mix of wines because that is what customers look for — 70% of his wines are $10 or more. If a customer is looking for something he does not stock, he refers them to Mendota Liquor. He stated that he is trying to be a good neighbor. The store offers its customers what they are looking for. People from the seniors building walk down looking for a less expensive wine. Councilmember Vitelli stated that he has walked the entire Wine Market and most of the wines he saw were far more $10. He would like to guess that far less than 10% were under $10. He would not voice the same complaint as Acting Mayor Krebsbach. Councilmember Duggan stated that he supports what Mr. Kowalski is proposing. Mr. Fefercom has indicated in the past that a restaurant is proposed for the Village at some time and he would assume that restaurant would serve liquor and wine. That will have some degree of an impact on Mr. Kowalski's market /deli. Council also knows that Mr. Paster is proposing an expansion to the shopping center and Council cannot say it will limit licenses to Town Center and the Mendota Plaza. In the past, Mr. Paster has talked about the concept of one or two restaurants. His concern is the study that was done for Mr. Kowalski indicated a maximum base of about 21,000 people. If the restaurants are all very well done, they may draw people beyond that market. He could not support having liquor licenses only in the Village. Responding to questions from Council, the City Clerk stated that the ordinance authorizes six on -sale licenses now, but if Council chooses to increase that number in the future, it can increase the number up to 12. Council must review each application on its merits and cannot say that one of the remaining six licenses will go to Town Center and the other to Mendota Plaza. Ayes: 4 Nays: 0 Page No. 9 December 20, 2005 Councilmember Duggan asked if there was any way of excluding sports bars. The City Clerk responded that the ordinance was designed specifically to preclude bars. Given the price of the license and the seating and space requirements, it is likely that only an upscale restaurant would apply for a license. In addition, Council has the right to deny applications. Councilmember Schneeman asked if Ziggy's is planning to change its format from family oriented if they are asking for a liquor license. Clerk Swanson responded that she just received the application and has not yet reviewed it. She has asked Ziggy's to submit a business plan so that Council knows what is proposed. Acting Mayor Krebsbach stated that she feels Council needs to have more time to think about the licenses that are available and what the best use of them would be. Councilmember Schneeman responded that she feels Council owes it to Mr. Kowalski to adopt the amendment. Council has been after him to bring in a store — which is what the community wants. She would feel foolish denying him the ability to have the market there and she feels very strongly about. Councilmember Duggan moved adoption of Ordinance No. 405, "AN ORDINANCE AMENDING TITLE 3 CHAPTER 1 OF THE CITY CODE." Councilmember Schneeman seconded the motion. Acting Mayor Krebsbach stated that she would like the action to be contingent upon this being a grocery store. The City Clerk responded that Council is not taking any action whatsoever with respect to issuance of a liquor license to Mr. Kowalski. The action would simply give any individual who holds an off -sale license in Mendota Heights the ability to also hold an on- sale license. Mr. Kowalski thanked Council for its support for the Wine Market. It has had a great response and support from the community. He stated that there is no guarantee in any retail ventures. The owner of Page No. 10 December 20, 2005 Mendota Liquor could totally remodel his store and go to an upscale look and there is nothing he could do about it. Acting Mayor Krebsbach responded that the Wine Market is lovely but she has also heard form residents that lower end wines are being sold. Councilmember Duggan stated that when the Kowalskis first came before Council he specifically asked if the license was limited to wine only and the answer was no, that he can sell beer and spirits as well. A liquor license is a liquor license. This is as fine a liquor store establishment as he has ever seen. Mr. Kowalski stated that he does not carry the conventional beers and has promised that he never will. "I" ZONE INTERPRETATION Council acknowledged a memo from Assistant Hollister regarding a request from Mr. Scott Moe, United Properties, for an interpretation of the zoning ordinance that an occupational and rehabilitation facility is an allowed use in the "I" District. Mr. Moe was present for the discussion along with representatives of Twin Cities Occupational Health and Rehabilitation (TCOHR). Assistant Hollister stated that this is the fifth time in the past two to three hears that Council has been approached by firms to make an interpretation on medical uses in the Industrial Zone. TCOHR submitted a plan for remodeling to the Code Enforcement Officer and was approached to the planner and staff. Council was approached for a dental office in the I zone and a diabetes educational center and said yes. Requests for a kidney dialysis treatment clinic and an infertility treatment clinic were rejected. Acting Mayor Krebsbach stated that she would like to consider a zoning ordinance amendment that would require the conditional use process. Acting City Attorney Tami Diehm stated that the city planner has listed several options in his report. One is to have this use be a conditional use, and that would require the applicants to come before Council with a conditional use application and Council would review each application on a case by case basis. Mr. Scott Moe, from United Properties, stated that the Mendota Heights Business Center is located at 2520 Pilot Knob Road and Mendota Heights Road. United Properties proposes to locate Page No. 11 December_20, 2005 - - -- - - - TCOHR in that building. He gave a brief overview of TCOHR and sated that United Properties has the same concerns that a city would have when they bring clients into their property. He is comfortable with the firm coming into the facility. He stated that TCOHR will only have a maximum of fifteen clients on site at any one time and no ambulances will come to the facility. They will not produce any noise or odors. He stated that this is not a traditional medical clinic and he is not concerned about medical waste. They draw blood on occasion, but only when they are doing drug testing in the event of an industrial accident, and they must follow federal regulations for disposal. He is also not concerned about their hours of operation and parking is not a concern, and TCOHR will support the industrial uses in the park. TCOHR unintentionally started the demolition and started their remodeling. Because of that, they have lost time they could not afford to lose. They have hired doctors and staff. If there is any way to determine the use is permitted, he asked Council to not require the conditional use permit process. They do not have time to do that. Acting Mayor Krebsbach asked Mr. Moe if he would rather that Council vote this up or down than go through the conditional use process. Mr. Dwight Grodin, Vice President of Development for TCOHR, stated that the firm has five or six of these centers in the Twin Cities. They chose the Mendota Heights Business Center because it is the best possible site. TCOHR serves workers compensation claims and does drug testing. It makes sense for them to be in this area because of the industrial parks in Eagan and Mendota Heights. They chose this site because it was the best site within the given area. A treatment and rehabilitation center must be close to the injured employees — 95% of the visits will be workers compensation related and 90% will be employer based. Responding to a question from Councilmeraber Schneeman, Mr. Grodin stated that they will only perform services that are non- invasive and non - emergency. He stated that there will be one doctor on staff. There will be a physical therapist, medical assistants and an LPN. Surgical procedures will not be done and none of the drugs they would supply are narcotic based. Acting Mayor Krebsbach asked if TCOHR treats any people who are on work release or probation. Page No. 12 December 20, 2005 Mr. Grodin responded they do not unless they are employed by the l employer contracting the service, and that would probably be less than 1/10 of 1 %. Councilmember Duggan stated that one of the documents submitted with the request indicated most visits would be 15 to 18 minutes. His experience has been 30 to 45 minutes for physical therapy. Mr. Grodin responded that industrial rehabilitation is different from primary care rehabilitation. Most of the visits are 15 to 20 minutes. Councilmember Duggan stated that the documentation states that the first year TCOHR anticipates 18 to 20 visits per day and a visit rate of 80 to 85 per day after the first year. He asked if there is sufficient parking available. Administrator Danielson responded that the planner analyzed it to see if they met the zoning ordinance an they do. Acting Mayor Krebsbach stated that her concern is that the category of occupational rehabilitation would be a permitted use. Acting Attorney Diehm responded that the finding would be that this - use would be allowed under the business and office use. Council would be determining that use that is proposed qualifies as a permitted use because it is a professional office. She suggested that Council hold a future workshop to see if it wants to clarify the language in the ordinance. Acting Mayor Krebsbach preferred a conditional use permit because rehabilitation is so broad in terms of what types of services they bring into the industrial park. Attorney Dielin responded that the planner has outlined three different possibilities and if Council chooses to allow this as permitted use under the ordinance, Council must find that this use is a business and professional office. Council may choose to add rehabilitative care as a permitted use at a future date. Council has already considered uses that might be considered similar four times in the past and the decisions have been split. This provides greater information for an applicant who comes forward in the future with an application that might be similar. Page No. 13 December 20, 2005 Councilmember Duggan suggested that Council visit the locations that have been approved so that Council has a better sense of what it has already approved. Councilmember Vitelli moved to make an interpretation that the proposed occupation and rehabilitation facility is a permitted use in the I -1 District based on language related to professional and business offices. Councilmember Duggan seconded the motion. Ayes: 4 Nays: 0 COUNCIL COMMENTS Councilmember Duggan distributed copies of a newspaper article on city symbols. He stated that Ross Fefercorn has informed him that there are three flag poles at Town Center and they would like a city flag. He stated that he would like some support for going forward in soliciting designs for a flag. Mr. Fefercorn stated that there will be U.S. and Minnesota flags on two flagpoles and he has never been quite sure what to do with the third flagpole. Because of the upcoming 50th anniversary of the city, it occurred to him that a new graphic /symbol would be appropriate. The design could be done in many ways, such as a competition with a possible financial reward. Having it done professionally would take it to another level. Councilmember Vitelli stated that Councilmember Duggan has stated that here is no desire to change the city logo, but if a city flag is put up, it is a logo. Councilmember Duggan stated that the only discussion was about a flag, not changing the city logo. Councilmember Vitelli stated that he likes the city's logo. Acting Mayor Krebsbach stated that Council likes the logo, and if there is a flag, that is the symbol for the flag. Administrator Danielson informed Council that the documents for the sale of the Pilot Knob site to the city will be signed this week. Page No. 14 December 20,- 2005 CLOSED SESSION Administrator Danielson recommended that Council schedule a closed session for 5:00 p.m. on January 6 to discuss pending litigation with respect to a retaining wall. ADJOURN There being no further business to come before Council, Councilmember Vitelli moved that the meeting be adjourned to 5:00 p.m. on January 3 for a closed session to discuss pending litigation. Councilmember Schneeman seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 9:06 p.m. Katfileen M. Swanson City Clerk A rrmn c rr.