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2003-03-18 City Council minutesPage No. 1 March 18, 2003 • 1 �• I Minutes of the Regular Meeting Held Tuesday, March 18, 2003 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: Mayor Huber, Councilmembers Duggan, Krebsbach, Schneeman and Vitelli. • 1116 . Ayes: 5 Nays:0 The City Council, audience and staff recited the Pledge of Allegiance. Councilmember Duggan moved adoption of the revised agenda for the meeting. Councilmember Schneeman seconded the motion. APPROVAL OF MINUTES Councilmember Duggan moved approval of the amended minutes of the regular meeting held on March 4, 2003. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Duggan moved approval of the consent calendar for the meeting, revised to move items 6c, parks capital improvement plan, 6e, park needs study, 6f police chief appointment, and 6h, sanitary sewer backup, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the March 11, 2003 Parks and Recreation Commission meeting. b. Acknowledgment of information on the proposed skate park in the Rogers Lake Park. c. Authorization for furniture purchases for the police department and Finance Director. Page No. 2 March 18, 2003 d. Authorization for the issuance of a purchase order to Pearson Bros., Inc., for 2003 street sweeping for their low bid of $64.00 per hour. e. Approval of the list of contractor licenses dated March 18, 2003. f. Approval of the List of Claims dated March 18, 2003 and totaling $194,193.92. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 PARKS CAPITAL PLAN/ Council acknowledged a memo from Parks Project Manager Guy NEEDS STUDY Kullander along with the revised project schedule for the parks five year capital improvement plan proposed by the Parks and Recreation Commission. Council also acknowledged a memo regarding updating the park and recreation facility needs study. Mayor Huber stated that the original consent calendar included acknowledgment of the capital improvement plan and at the same time updating the parks need study. He asked if the two items are being kept in concert and if everything in 2003 in the plan would be consistent with needs. Mr. Kullander responded that this is the third year of the 2001 -5 capital improvement plan. The plan was originally developed to meet the needs identified when the original needs study was prepared. Each year, the commission reviews what has been done and what remains. A few projects that had not been completed were carried over to 2003, leaving nearly $200,000 of projects this year. He asked the commission to review and prioritize the 2003,2004 and 2005 projects because of staff time availability. Mayor Huber stated that the Wentworth warming house is still in the plan for 2003. Mr. Kullander responded that it will get more discussion. The commission left it in because Council had approved $20,000 for upgrading. At the last Council discussion on the issue, Council asked staff to investigate the foundation and timber in the existing structure before a decision is made. The commission still wants a new one. He will report to Council in May about the condition of the warming house. Page No. 3 March 18, 2003 Councilmember Schneeman stated that Council did have some concerns and there was also discussion about a multi -use building. She felt there needs to be further discussion. Mr. Kullander stated that the commission feels that if Council does not do the remodeling, they will look at building a new structure in 2004 or 2005 and look at additional uses. Councilmember Vitelli stated that it appears that the special park fund will be depleted from $300,000 to $125,000 over a two year period. He asked whether the fund will be in trouble in two more years and if the balance will be at zero in 2007. Mr. Kullander responded that the fund increases through dedications for newly created single family lots or commercial lots. There are sites in the city that can be developed in the future, but the commission does not want to project too rosy of a picture. Councilmember Vitelli asked that, when the capital plan is updated again, staff give Council a projection of what the replenishment rate will be for the fund. Councilmember Duggan stated that the commission is estimating bringing in an additional $290,000 and that the fund balance will be $105,000 at the end of 2005. They were probably anticipating income from the Bluffs and the Burrow Farm property. Councilmember Vitelli stated that he watched the Parks and Recreation Commission meeting with interest when they were reviewing the skate board park. It seems skate boarders can get a skate board park they want about $25,000, but the city could be leading down a path where it spends $25,000 this year and there is an expectation there will be additional expenses. He does not feel anyone on Council intended that. He stated that everyone should know that there is $25,000 for a skateboard park this year and no funding for next year. Councilmember Krebsbach asked whether Council anticipated $35,000 because this is a start-up park. If it is very popular, and many people are using it, the commission would like to be able to consider adding pieces to it in the future. Councilmember Duggan stated that the commission discussion was that if there are no major problems with use and behaviors, there Page No. 4 March 18, 2003 would be consideration to looking at more advanced equipment. He also stated that he understands there is a proposal for a 90,000 square foot park in Fort Snelling Park and that he would anticipate the young people in Mendota Heights would be inclined to use that park. Mr. Kullander responded that there will be a fee for using that park, probably $12 to $15 per session. The Mendota Heights facility will be a Tier 1 park with no attendant in place so those costs are not involved. Our park will be for beginners. As they advance, they will be looking for other, bigger parks. Responding to a comment from Councilmember Schneeman, Mr. Kullander stated that the CIP includes replacing the wooden play structures at Wentworth Park this year. With respect to the needs study, Councihnember Vitelli stated that there is a hint in the memo that the engineering fee portion of the park budget may be exceeded, and Council should not let that go unnoticed. He asked whether the study update can be put off until next year if the budget is short of funds this year. Mr. Kullander responded that the budget for engineering fees is $9,000 and that amount would not be saved by putting off the study. He stated that he will probably do to work over a 15 to 18 month period, depending on available funds and his work schedule. If it looks like the $9,000 would be overspent, he will come back to Council. Councilmember Krebsbach stated that the Parks and Recreation Commission usually spends the interest on the fund each year rather than depleting the fund. She felt they should look at putting things off to build the fund. Mayor Huber stated that surveying the residents by doing mailings, etc., is costly and he is not sure Council should be looking at that this year. He felt that the commission should be looking at needs and doing informal surveys of people they know. He did not know that Council wants to spend money on a formal survey. Councilmember Duggan suggested that seniors in the city might also be willing to volunteer time working with a mailing list and compiling responses. Mayor Huber responded that if the city does a survey, that may be building an expectation. He has no problem with the commission Page No. 5 March 18, 2003 working on and discussing needs but would rather that they do a survey on their own and of their own contacts. Councilmember Schneeman agreed, stating that this is not the time to make any commitments. Councilmember Duggan asked if Council should send the commission a recommendation not to do anything on the needs study until 2004. Mayor Huber agreed, except other than their own meeting time. Councilmember Krebsbach stated that Council should also think through whether it wants to make a $25,000 investment in the skate park and then significant future investments. Councilmember Schneeman responded that Council needs to evaluate the usage after a year of the Tier 1 park before considering any expansion. Councilmember Krebsbach moved to acknowledge the revised project schedule for the Parks Five Year (2001 -2005) Capital Improvement Plan. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 It was the consensus to take no action of the needs study, just to refer Council's comments to the commission with a strong emphasis on waiting until 2004 to reconsider doing a needs study. POLICE CHEF Mayor Huber recommended that Council conduct a second round of police chief interviews at 6:00 p.m. on March 25 as a continuance of the police chief recruitment process. Councilmember Duggan moved to schedule police chief candidate interviews for 6:00 p.m. on March 25. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 SANITARY SEWER BACKUP Council acknowledged a memo from Public Works Director Danielson regarding a sanitary sewer backup at 1900 Victoria Road. Mayor Huber noted that there have been a few sewer back -ups recently and asked if there is another way to deal with them rather Page No. 6 March 18, 2003 than one on one requests. He asked whether there are any other options to deal with back -ups in the future. Administrator Lindberg responded that Council could authorize staff to grant the requests up to a certain amount. Councilmember Vitelli asked about additional insurance coverage. He was not comfortable with dealing with back -ups on an individual basis. Public Works Director Danielson responded that the city looked at the possibility of purchasing sanitary sewer back -up insurance through the League of Minnesota Cities, but the cost is $10,000 a year. For many years the amount the city paid out for back -up claims never exceeded $10,000, so it was decided that it would be better to pay the claims on an individual basis. There have been more claims recently, and perhaps the insurance should be reconsidered. Councilmember Schneeman felt that the insurance should be considered. The sewer system is getting older and back -up claims could become more frequent. Councilmember Duggan stated that the memo indicates this is the second time a back -up has occurred in this location. He asked if there is a difference in the cause of the two occurrences. Mr. Danielson responded that tree roots are a very common cause for back -ups and there is very old clay pipe in this area of the city. Roots are getting into the pipe. It is recommended that the pipes be lined in order to prevent the roots from causing future back -ups. Both of the back -ups were caused by tree roots. Councilmember Krebsbach moved to authorize issuance of a purchase order to Visu -Sewer to remove the roots and install liners in the pipe near 1900 Victoria Road for its low quote of $2,810. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 COUNCL COMMENTS Mayor Huber stated that at the last meeting he had an exchange with Councilmember Duggan that was too strong, and he apologized. Page No. 7 March 18, 2003 Councilmember Duggan stated that he appreciates the apology and looks forward to working with the Mayor and the rest of the Council for the next three plus years. PRESENTATION On behalf of Council, Mayor Huber presented a plaque of appreciation to Mr. Joe Leuman for his ten years of service on the Airport Relations Commission. Mayor Huber stated that Mr. Leuman is a charter member of the commission that has done a tremendous amount of great work over the past ten years. The city is better off for Mr. Leuman's work and the work of the commission in total. HEARING — STREET Mayor Huber opened the meeting for the purpose of a public VACATION hearing on an application from Mr. Tim Kolberg,790 Ridge Place, for the vacation of unused city right -of -way (portion of Sununerset Boulevard right -of -way) adjacent to his property. Council acknowledged an associated memo from Public Works Director Danielson. Mr. Kolberg stated that there is a sixty foot easement that runs between his house and his neighbor's house The right -of -way actually goes all the way around his property. The right -of -way will probably never be used because the land is very steep. He stated that he is requesting the vacation in the hope that he could perhaps look at splitting off a lot to sell in the future if he needs to. His wife has lost her job and his job status does not look very good. They would like to use the property as a land bank and sell a lot if they need to. Councilmember Krebsbach stated that it is not generally a good idea for the city to vacate right -of -way. Mr. Kolberg stated that his lot is 192 feet wide now and in order to split it, he needs an additional eight feet. Mayor Huber asked for questions and comments from the audience. Mr. Gerry Jenniges, 800 Ridge Place, stated that he is not opposed to the vacation. His question, based on the literature he received from the city, is why the city needs to retain a ten foot easement. He did not see any reason why it would be needed. Page No. 8 March 18, 2003 Public Works Director Danielson responded that the easement would be for drainage and utility purposes. The city typically retains those types of easements around all lots. Ms. Maureen Wilke, 781 Ridge Place, was concerned about where a new house would be placed on the lot, and what size it would be. When the streets were improved five years ago, she was very concerned about keeping the character of the neighborhood the way it is. Mayor Huber asked if Ms Wilke if she means that she could comment better on the proposal if she had a more precise description of where a new house would go and what kind of house it might be. Mrs. Wilke responded affirmatively. Councilmember Krebsbach stated that she is not in favor of vacating the right -of -way. In other neighborhoods, people do not want subdivision of these larger lots. Public Works Director Danielson stated that the lot is very large and L- shaped. The Kolberg home is located to the west and he could split off 100 feet on the east if the city vacates the right -of -way. The right -of -way area is steep, and there is no need to ever build a street on it. One of the things that has been discussed is if only half the right -of -way is vacated, the new house would have to be set back 30 feet from the remaining right -of -way area. If Council decides to approve the vacation, he felt the entire 60' should be vacated and that the city should retain a drainage easement over the westerly 30 feet. A new house could be placed within 10 feet of the new lot line. The creek that runs under Dodd Road ravels across the Kolberg property, and the city does not have a drainage easement now. In trade for the vacation, staff would like an easement for the creek. He recommended vacating the entire right -of -way and retaining a portion for easement area. Responding to a question from Councilmember Vitelli, Public Works Director Danielson stated that if the entire right -of -way is vacated, half of it would go to each of the adjoining property owners and they would have to pay taxes on it. The County Assessor told him that since there would still only be one house on one lot, the taxe increase would be very minimal. Page No. 9 March 18, 2003 Councilmember Vitelli stated that the city has not heard from the Minas (adjoining property owners) because they are out of town, and he is concerned about getting their input. Councilmember Krebsbach moved to deny the application for vacation because Council has approved vacations in the past and people have said that was a mistake. There being no second, Councilmember Krebsbach withdrew the motion. Councilmember Vitelli asked Public Works Director Danielson for a potential footprint of a home on the new lot so that the neighbors have an idea of how the lot may develop. He stated that he would be more than willing to entertain the request if he could see the entire picture, including where the lot split would be and where a new house would be, etc. He would rather have had this come before Council as a concept and is not in a position to approve the vacation this evening. Councilmember Duggan stated that it would be appropriate to ask for more information drawn to scale from Mr. Kolberg and staff for the next meeting so that the neighbors could see an actual plan. Mayor Huber suggested that Council could give Mr. Kolberg an idea tonight of what they are thinking. Mr. Kolberg stated that he is not a developer and is not clear on what to do. If he sells a lot, the person who buys it will have an architect prepare a plan. Councilmember Vitelli stated that usually when a lot split is approved, Council is given a footprint of where a house will be so that the neighbors get better information. When a vacation is requested with the intent of doing something with the lot in the future, Council looks for information on what it is that is to be done in the future. He stated that he would like to know what the footprint would be and where the lot lines would be. Council needs to see some concept on where it would be. Councilmember Duggan stated that it appears that there may be a variance needed for a new home. He was concerned about granting something that would give Mr. Kolberg monetary value. He would like the neighbors to have information to help them anticipate where a house would be built. Page No. 10 March 18, 2003 Mr. Kolberg stated that he can't tell Council much, because he will be selling the lot and the person who buys it will hire an architect. Councilmember Vitelli stated that Council is really asking Mr. Kolberg to come back with a detailed design for a house footprint on land he doesn't even own yet. The question is what comes first, the chicken or the egg. He also felt there should be more of a package but did not know what to do next. Councilmember Krebsbach stated that Mr. Kolberg is asking for vacation of a street so a buildable lot can be created and Council is not obligated to do that. Council vacated right -of -way on Hiawatha years ago and the neighbors have said that wasn't a good idea. She will not support the vacation application. Responding to a question from Mr. Kolberg, Councilmember Vitelli stated that all Council needs is a footprint of where a house will be and how far back it will be from the road. Something the neighbors could reasonably anticipate. He further stated that if the right -of -way is not vacated, Mr. Kolberg does not have a new lot. He needs to first come to Council to see if Council is interested in vacating the right -of -way and then come back to staff to see if he has a buildable lot. Councilmember Krebsbach stated that Council needs to be careful about handing over city property that could then create trouble in the neighborhood. Mr. Kolberg responded that if the vacation is granted and he divides the lot, the city will have an increased tax base. Councilmember Vitelli stated that his idea is that Mr. Kolberg work with the engineering staff and bring something back in two weeks that shows where the lot could be split and what footprint a house would have. Councilmember Vitelli stated that he does not have a problem with the vacation of the entire street. It will never be used and if a new house is built there, the city would have additional tax revenue. He agreed that seeing more of a package of information would be beneficial. It would be ideal if Mr. Kolberg could meet with the Mineas and come forth with a total vacation plan that would allow better placement for a house that would be in a better location for the neighbors. Page No. 11 March 18, 2003 Councilmember Duggan stated that the site plan should show where the lot line would go in relation to the existing houses, and where a house could go within the setbacks, so that it would be acceptable under the ordinance. Then the neighbors would know where a house would be in relation to the lot. Mr. Kolberg stated that he can do that and he cold put in a reasonably sized rectangle, but he cannot tell Council what style a house would be. There being no questions or comments, Councihnember Duggan moved that the hearing be continued to April 1. Councihnember Vitelli seconded the motion. Ayes: 5 Nays: 0 BLUFFS EAW REVIEW Council acknowledged a report from Barr Engineering regarding the draft EAW for The Bluffs. Council also acknowledged an associated memo from Administrator Lindberg. Mr. Colin Brownlow, consultant with Barr Engineering, was present for the discussion. Mr. Brownlow stated that Barr was retained to look at the developer's draft of an EAW for the Bluffs development on Pilot Knob Road. Barr looked at the EAW for adequacy, and has no opinion on the suitability of the site or the suitability of the development. Barr compared the EAW with EAWs Barr has done and compared it with guidelines the EQB has developed, and looked at what each of the 31 worksheet questions asked and what each of the responses was. He will review the four or five key points of what he thinks is missing from the EAW. Mayor Huber asked City Attorney Schleck to describe what Council is going to be doing tonight. Attorney Schleck responded that tonight what Council is doing is just talking about the Barr review of the materials that were submitted by the developer. Council will not discuss the environmental impacts associated with the project but rather about determining whether the information is adequate for preparation of the EAW. Minnesota Rules stated that the project proposal must be submitted to the city with sufficient data for the city to prepare the EAW. The rules also state that once the city decides that it has prepared the EAW, it will publish the EAW for a 30 day comment period. What is important is that at that point in the process, the public has the ability to comment on the project and the EAW. The Page No. 12 March 18, 2003 city has not yet produced the EAW, and what Council is talking about is what is the best way to produce it. Councilmember Duggan stated that since he is assuming that the developer might challenge some of the Barr statements, might Council want to consider those items challenged by the developer first. Perhaps Council should just look at the ones that he has challenged. Attorney Schleck responded that a copy of Barr's comments has been provided to the developer. The developer and the proposer knows what Barr's thoughts are on the subject. Mr. John Uban is present this evening to respond to some of the comments. He stated that a long drawn out discussion may not be warranted tonight. Mr. Brownlow's suggestion to discuss just the large topics is a good one. Councilmember Krebsbach stated that since Council engaged Barr to do the review, she assumed this would go back to the developer and he would respond to the report in writing. Mayor Huber stated that what Council is being asked to do tonight is authorize a letter to the developer that reviews the inadequacies Barr has identified and then the developer should come back with additional information to address what Barr has found. Tonight �. Council should just authorize staff to officially deliver the information to the developer and wait for a written response. Attorney Schleck stated that is exactly what the intention was. It is important for the analysis of Barr to be communicated back to the developer. Council should also give the developer an opportunity to speak tonight. The intent is for the developer to resubmit information as requested. Councilmember Schneeman asked Mr. Brownlow if there is anything he found that Council should take particular note of. Mr. Brownlow responded that there is not. Attorney Schleck stated that at a minimum, Council should talk about the issues as they relate to the historical review. Mr. Brownlow responded that Barr's opinion at this point is that the information provided in the EAW is not adequate. In order to evaluate a project, there must be a very good description of that project. The single most important question in the EAW is a Page No. 13 March 18, 2003 description of the development. The developer needs to put together a clear, concise description of the project. There are guidelines put out by the EQB. The citizen petition raised four particular issues: historic, wetlands, air quality impacts from traffic and airport and traffic noise problems. Clearly, the reason the EAW was ordered because of items in the petition and the city wants to pay particular attention to those items. He reviewed Barr's responses to those questions in the EAW. History - -Barr spoke to the state preservations office with respect to history, and they do have concerns. They would be willing to offer the developer some guidelines on how to proceed. The EQB guidelines say that when there are known historical, cultural and architectural resources on or in proximity to the site, applicants must send a letter to the State Historical Preservation Office. There is no evidence a letter was sent to the SHPO. Wetlands - There was not enough detail in the EAW to show what would happen within that area. Air Quality — It is highly unlikely the development will generate enough traffic to impact air quality but they should at least make their case. Existing Air and Traffic Noise Problems — They have not addressed and need to address the existing noise in the area. There is a letter from MAC pointing out that the site is within 6000 feet from the end of the runway and the property is adjacent to Highway 55. EQB guidelines say if there is a development proposed close to an airport or highway, noise modeling must be done. There is nothing in the EAW addressing the noise issue and that is a significant issue. The MAC is doing good modeling and MnDOT has done modeling of traffic noise for Highway 55. The developer can get that information and take a look at it and propose how they are going to alter construction of the structures for noise mitigation. Councilmember Duggan informed Mr. Brownlow that Mendota Heights has perhaps the most stringent noise mitigation requirements of any city in Minnesota close to the airport. Mr. Brownlow responded that if there are special ordinance requirements, that should be noted in the EAW. Mr. John Uban stated that the developer will cooperate and prepare a complete document. He initially thought the city would give the developer some guides. Instead, the developer submitted a document for the city to review. The biggest unknown is the archeological element. The developer has retained the 106 Group and they have already contacted the state. The developer intends to do a very good job and would like to meet with city staff as soon as possible to review Barr's comments. Ayes: 5 Nays: 0 Page No. 14 March 18, 2003 Councilmember Krebsbach asked if it is within Barr's contract that they would have time to review the report with Mr. Uban. Administrator Lindberg responded that there is a certain dollar limit in the contract. It was anticipated that there would be one or more meetings with Barr. Staff will come back to Council if it appears the amount will be exceeded. The big unknown is the public comments. Councilmember Krebsbach moved to accept the staff recommendation to draft a letter to project proposer Ron Clark requesting the missing data and to authorize a meeting of the developer, staff and Barr Engineering. Councilmember Schneeman seconded the motion. Councilmember Duggan stated that Barr's response to question 6c and several other questions is that the city is responsible for determining the validity of the response. Attorney Schleck responded that some decisions are ultimately up to the Responsible Government Unit (RGU), and Mr. Brownlow has flagged those areas. If Council has concerns about those areas, those concerns should be communicated to staff. Mayor Huber stated that Council has a responsibility to communicate their concerns as a Council to Mr. Uban and Mr. Clark, but he would like to wait for a more complete package. He felt it is too difficult to comment at this point, but that does not mean Council will not have comments later in the process. Attorney Schleck responded that staff could bring recommended responses to the Barr questions to Council at its next meeting for Council consideration. ORDINANCE VIOLATION Council acknowledged a memo from Code Enforcement Officer Berg regarding an ordinance violation related to parking of a camper at 752 Mohican Lane, and a letter from the property owners, Mr. & Mrs. Epstein, requesting an extension of time to move the camper. Mr. Epstein stated that he uses the camper as a screen house for his daughter so that she doesn't go to the park because there are lots of kids using drugs at the park. He was flabbergasted that it is an ordinance violation. He took the camper down today and it is a question of whether he needs to pave his back yard in order to keep it. �. Page No. 15 March 18, 2003 Councilmember Schneeman responded that he must pave a spot on which to park the camper. Mr. Epstein stated that has a class five driveway now (from Pueblo Lane) and if it is illegal he will pave it or get rid of it. He needs time until he can get into the back yard. He does not know why he needs pavement in the back yard to store something like his camper. Councilmember Schneeman stated that apparently the city received complaints about the camper from some of the Epsteins' neighbors. Administrator Lindberg responded that the violation does not fall under the requirements of the new city ordinance. Parking of the trailer needs to meet the setbacks in the rear yard, etc. Mr. Epstein also has the option of leaving the pop -up camper folded down in his driveway. If he wants it in his back or side yard, it has to be on a paved surface. Mayor Huber stated that he has no problem with giving Mr. Epstein additional time and asked if the end of May is long enough. Mr. Epstein responded that he is not sure where his lot line is and where his neighbor's (Bernard Friel) lot line is. Public Works Director Danielson stated that Mr. Epstein's easterly lot line abuts a public street, Pueblo Lane, not Mr. Friel's property and Mr. Epstein can pave a pad for the camper at the proper setback. Attorney Schleck stated that the city is not going to be able to certify Mr. Epstein's property lines, and Mr. Epstein would have to get a surveyor to do that. The city cannot make any representation as to where the lot line is. Responding to a question from Councilmember Krebsbach, Administrator Lindberg stated that if the camper is in the down position it would fit within the new ordinance language and would be allowed to be parked in the driveway. Councilmember Vitelli moved to grant the Epsteins until June 1 to take care of the violation and work with staff to find the best and lowest cost solution that meets the city's requirements. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 � j Page No. 16 March 18, 2003 RECESS Mayor Huber called a recess at 9:09 p.m. The meeting was reconvened at 9:14 p.m. FREEWAY ROAD Council acknowledged a memo from Public Works Director WATERMAIN/WATER Danielson and City Administrator Lindberg regarding the SERVICE AGREEMENT Freeway Road watermain. Mayor Huber stated that the issue of the Freeway Road watermain and the breaks that have occurred in that area was a matter of discussion two weeks ago. At that meeting, Council had a discussion with Mr. Bernie Bullert, from St. Paul Regional Water Services, about the breaks and the soil in that area. Mr. Bullert said that between the breaks, the fact that the city is doing Town Center, and the soil conditions, he felt it would be appropriate to replace the watermain. That raised the issue of whether the city should enter into a Memorandum of Understanding with St. Paul Water regarding replacement and taking over of the city's water supply system. That lead to many other questions from Council and staff. He stated that he would like to continue discussion on this matter tonight to get the sense of the Council on the issue. He asked Council for their questions and comments. Counci]member Vitelli complimented staff for collecting the data. The more he reviews the proposal of having St. Paul Water take care of the infrastructure and the city's water system, the better the picture looks for the residents of the city. There is every indication that the city's bond rating will not be changed. West St. Paul's bond rating had no change when St. Paul took over its system, and they have had good water service. If Mendota Heights enters into an agreement with St. Paul, the city's residents and businesses will save money. He reviewed the savings that are anticipated. He stated that staff did an outstanding job and he would support the proposal and move ahead so that the city gains the benefit of St. Paul Water replacing the Freeway Road watermain under the terms of the Memorandum of Understanding. That would avoid digging up a new street to repair watermain breaks and meet the requests of the residents in the area, and St. Paul would pay for it. The city does not have the money to pay for replacing the watermains. He did not see a downside to this and does not agree with the argument that the city would be giving away the infrastructure. He would like to move ahead quickly. Mayor Huber made a comment two weeks ago that was very good, that some of the people against this do not like turning the asset over to St. Paul. The city would be turning over the liability of having to replace the mains in the near future. Page No. 17 March 18, 2003 Councilmember Schneeman stated that the city does not have the $250,000 needed to replace the Freeway Road watermain, and it will break again. The city's infrastructure is getting old and it is very expensive to replace. The agreement also provides for incremental reductions in water rates. Her question is over the antenna rental, and she asked whether the city can work out a deal with St. Paul in which Mendota Heights would get the full rental revenue for the next five years. Administrator Lindberg responded that Mr. Bullert indicated that is an item open for discussion. Mendota Heights would like to get the full rental indefinitely. The city would get at least the same as the other communities, which would be half of the annual rental. Councilmember Krebsbach asked if Council must take action tonight. Mayor Huber responded that the next St. Paul Water board meeting is April 9 or 10, and Council has another meeting before then. Mr. Bullert may be able to be present for that meeting. If Council passes something tonight, nothing will happen any sooner than April 9 with St. Paul Water because its board is not meeting until then. It would give staff direction on items of negotiation that are still open. Councilmember Krebsbach stated that it is a big decision and she did not have sufficient time to review all of the information. She stated that she would like to check with more cities in terms of bond ratings and what percentage of the city's total assets the water system is and what the asset was for West. St. Paul. Administrator Lindberg stated that staff spoke with staff from West St. Paul, Falcon Heights and Lauderdale, and none of their bond ratings were impacted by the St. Paul Water agreement. With respect to the West St. Paul asset value and the percentage of the Mendota Heights total assets, Finance Director Schabacker stated that the water system is not in the city's fmancial statements. With the implementation of GASB 34, the system would come on the books, but right now most cities do not have their water systems on their books. Mayor Huber stated that it is entirely likely that when the other cities entered into the agreement, they did not have information on the asset value. That is a question that perhaps cannot be answered. Page No. 18 March 18, 2003 Councilmember Duggan stated that the answer to the question of who would buy this — when one looks at the value, the infrastructure could be used for mortgage bonds. Mendota Heights has owned the system for many years, and if, for instance, the city needs money for a budget crunch or Council wanted to build a civic center, the infrastructure could be used for mortgage bonds. Responding to a Council question about whether the water system is a meaningful asset for a mortgage for a community center, Finance Director Schabacker stated that GASB 34 has brought many new standards. Cities would have to account for assets the same as businesses do. She did not have an answer as to whether the asset could be used in financing. Councilmember Duggan stated that he feels that a public hearing should be conducted. Council would not be considering the MOU at this time if it were not that the Town Center development is being done. He did not think that is the right way to go about making a decision. The city has no control over what will happen to the cost of water unless there is an iron clad contract saying that the system would come back to the city at the same amount it is sold to St. Paul for. That would include all maintenance that St. Paul would do. Attorney Schleck responded that the discussions with Mr. Bullert were exactly that, and it is in his comments to the agreement. The one issue that needs to be discussed is the idea that if St. Paul adds infrastructure and the system gets privatized, Mendota Heights would not have to pay for the new infrastructure. Buy back of the system would be on a depreciated value. If at any time in the future St. Paul privatizes or sells the system, Mendota Heights could buy it back for $1 because whatever St. Paul puts. into it from the date of sale is depreciated down to the value it was, because if the city did not enter into the agreement, St. Paul would never have had to pay for improvements. Responding to a question from Councilmember Duggan, Mayor Huber stated that without the agreement, St. Paul would repair watermain breaks but if a main needs to be replaced, Mendota Heights would have to pay for it. Generally speaking, when roads are torn up to do an improvement project, properties are assessed. If an existing watermain is torn up, the basic legal concept of assessing is that the value of the property being assessed goes up by the value of the assessments. If there already was water service, there would be a question of what the value increase would be. If it cost $50,000 to do a small street and the property owners challenged a watermain Page No. 19 March 18, 2003 replacement assessment, the cost could be against the entire city. It would not be clear cut that the city would prevail. Council must very much keep that in mind. If Council does not enter into the agreement it must have an in depth discussion on how watermain replacement would be funded. Councilmember Krebsbach stated that at the last discussion she asked how else watermain replacement could be funded. It is a big decision for a city this size, and she did not have a chance to read the information as much as she would like. Councilmember Duggan stated that he has spoken to many residents, and it is a concern to him. He would like to give people a chance to comment and for Council to present the pros and cons to them. A benefit is reduced rates, but the city will be losing half of the antenna rental revenue. The Parks and Recreation Commission would not like that at all. A negative is for the city to have to pay for depreciated improvements — right now St. Paul repairs main breaks and pays for it. Right now, residents pay a surcharge for water system maintenance, and he does not know if that is sufficient for the city to go forward. He would like the community to have a chance to address the issue. Another issue is that the next time the tower needs to be painted, the city will be responsible for paying for half of the painting cost and all of the cost for removal and disposal of hazardous material. Public Works Director Danielson responded that last time the tower was painted, the PCA stopped it after painting was about 1/3 done. There is still 2/3 of the hazardous material to be removed and disposed. St. Paul feels that Mendota Heights should be responsible for removing and disposing of it. Mayor Huber stated that if the city doesn't enter into this agreement, it would have to pay for 100% of the cost of painting. Councilmember Duggan stated that Council could probably address those problems without the pressure of rushing into this because of the Freeway Road problems. He agreed that staff has done an excellent job answering Council's questions from the last meeting. He would like the community to come in and tell Council what they think should be done. This is a decision that affects every home in Mendota Heights, not just those on Freeway Road. Councilmember Schneeman stated that Council must remember that the city gets its water from St. Paul. Mr. Norman and Mr. Wills, Page No. 20 March 18, 2003 who started this issue about replacing the main, are very intelligent people and they are tired of the breaks. She asked how many breaks there have to be before St. Paul says they will not repair it any more and that Mendota Heights has to replace the main. Public Works Director Danielson responded that point has not been reached yet. The 2.0 frequency factor has not been surpassed. St. Paul is insisting the watermain be replaced before the streets are done. Mayor Huber suggested continuing the matter for two weeks. He felt that the city should enter into the agreement and was concerned that the city might not be able to assess neighborhoods for future watermain replacement. He understands what Councilmember Duggan is saying about this coming before Council because of Town Center but watermain breaks will keep occurring and as the city does a road project, the issue will come up again. Road projects are done nearly every year. He had no problem with holding the matter over for two weeks to see what the public thinks about it. Entering the agreement would be cushioning those people who are looking at a high frequency of breaks. There is a risk factor that is being spread out on all of the community. Councilmember Krebsbach stated that is why she was looking for alternative ways of funding. She always has the feeling there is no free lunch. She would appreciate continuing the discussion and holding a public hearing. Councilmember Krebsbach moved to conduct a public hearing on April 1 to discuss the transfer of the Mendota Heights water system lines and water tower to the City of St. Paul. Councilmember Vitelli seconded the motion. Councilmember Vitelli stated that he wants to confirm that if Council makes a decision on April 1, the city can save the $250,000 to have the Freeway Road watermain replaced. Councilmember Duggan asked that for the next discussion there be clarification on the last sentence of page four of the agreement (15 feet of street). He also asked what control the city would have about the standards for break frequency. He pointed out a typographical error on page 6, item c, and asked if item 9 refers to an agreement that is separate from the MOU. He stated that hopefully the antenna rental revenue can be negotiated better than 50 %. Page No. 21 March 18, 2003 Mayor Huber stated that when Council represents to the city how much would be saved each year, Council also needs to say that it may need to raise taxes by $30,000 to offset the loss of antenna revenue. Vote on Motion: Ayes: 5 Nays: 0 FREEWAY ROAD Council acknowledged a memo from Finance Director Schabacker IMPROVEMENT BONDS recommending the sale of negotiated general obligation improvement bonds to finance the Freeway Road area street reconstruction project. Mr. Monte Eastvold, from Northland Securities was present for the discussion. Ms. Schabacker stated that the bonds are needed to finance the improvement project. It is a very good climate for bond sales right now. Interest is at a 45 year low. The bond issue size of $535,000 will fund the net need of about $496,000 plus issue expenses. She reviewed the bond payment schedule and stated that revenue sources to pay the issue will be special assessments and tax levies. The average anticipated interest rate is 3.96 %. Mr. Eastvold reviewed documents prepared by Briggs and Morgan, including the resolution authorizing issuance of the bonds. Adoption of that resolution is the first step. It would then be necessary to approve the purchase of the bonds by Northland Securities. Councilmember Duggan moved adoption of Resolution No. 03 -13, "RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $535,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 2003, PLEDGING SPECIAL ASSESSMENTS FOR THE SECURITY THEREOF AND LEVYING A TAX FOR THE PAYMENT THEREOF." Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 Councilmember Schneeman moved to authorize a contract so that Northland Securities is authorized to purchase the bonds at the stated interest rates. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 ST. THOMAS HOCKEY ARENA Council acknowledged a memo from Administrator Lindberg Page No. 22 March 18, 2003 FINANCING regarding a request from St. Thomas Academy for city issuance of pass- through Industrial Revenue Bonds to finance its hockey arena. Council also acknowledged a preliminary term sheet prepared by Wells Fargo Brokerage Services. Mr. Richard Miller was present on behalf of Wells Fargo. Mr. Frank Lange was also present for the discussion. Ayes: 5 Nays: 0 Mr. Miller stated that the school is asking Council to call a public hearing for industrial revenue bonds. It would be a privately placed tax exempt municipal note that is not an obligation of the city at all. St. Thomas is transferring half the land across Mendota Heights Road from the school to a new non - profit called St. Thomas Ice Arena, a 501C organization. There was a covenant on the last St. Thomas bond sale that St. Thomas cannot incur any additional debt. The new non - profit will be responsible for the debt. The source of repayment will be the sale of ice to St. Thomas Academy, St. Thomas University and youth hockey. The non - profit will be composed of friends of St. Thomas Academy but they cannot be board members. At the end of the financing, the land and the arena will revert back to St. Thomas Academy. This is not a public offering. After discussion, Councilmember Krebsbach moved to conduct a public hearing on April 15 on the issuance of industrial revenue bonds for the St. Thomas ice arena. Councilmember Duggan seconded the motion. Mr. Chuck Friberg, from RSP Architects, briefly reviewed the design for the hockey facility, along with the site plan. He stated that the exterior colors and flashing will match the school, and showed a colored rendering of the structure. Mr. Lange stated that this will be the only facility in Minnesota that has university, high school and youth hockey in it. Mr. Friberg stated that this is the only such facility in the United States. His firm is working on a second facility in another state that will have high school and university hockey. Responding to a question from Councilmember Schneeman, Mr. Friberg stated that there will also be open skating in the facility. Councilmember Vitelli congratulated Mr. Lange for finding an excellent method of building the facility. He stated that he is very supportive and congratulated St. Thomas for making it happen. Page No. 23 March 18, 2003 XCEL ENERGY RESOLUTION Council acknowledged a memo from Administrator Lindberg regarding a request from the City of Sunfish Lake that Council adopt a resolution similar to a resolution adopted by Sunfish Lake encouraging the legislature to call a moratorium on conversion of single circuit I I5kv electric transmission lines into double circuit transmission lines. Mayor Molly Park was present on behalf of Sunfish Lake. Mayor Park stated that both Sunfish Lake and Mendota Heights have been through the grist mill on the topic of the Xcel upgrades. When the new Sunfish Lake Council convened in January, they talked about other ways to deal with this issue in a non - litigious manner. In discussion with their city attorney, they determined there would be no legal jeopardy for asking the state legislature to look at a resolution on a moratorium on power lines. They met with Reps. Tom Pugh and Joe Atkins, and they began writing a bill. They were whole- heartedly in support and said it will be an uphill battle because the legislative session will end April 16. Senator Metzen is empathetic to the cause as well, and he sits on the committee in the senate that deals with this and he is also president of the senate. The state representatives told her Council that it would help the cause in committee if the other cities involved came along with Sunfish Lake in the resolution or pass their own resolution. Mayor Huber stated that one thing the resolution does is bring us back to the first discussion on this issue. Mendota Heights never felt it should be a city by city matter but rather that it would be a regional matter. The resolution supports the original Mendota Heights position. Councilmember Duggan stated that he is delighted to have this before Council and hopes it gets favorable consideration. He was on the Planning Commission when this was discussed. There are existing houses in very close proximity to these lines. The incidence of health problems on homes near power lines is much greater than those not near lines. He stated that he supports the city's residents in this effort. Councilmember Schneeman stated that she has not been against the power lines and is concerned about the length of the moratorium. She would want something more specific Mayor Park stated that the length of the moratorium was left blank because her Council felt it was better for the legislature to determine how long a moratorium would last. Page No. 24 March 18, 2003 Mayor Huber stated that Council would be asking the legislature to get involved. The legislature will craft a bill after negotiations in committee. The resolution would be guidance from the city that this is what it would like the legislature to pass. He stated that Council should leave it in the hands of the legislature to graft language that embodies what Council is trying to say. Responding to a question from Councilmember Schneeman, Mayor Park stated that Sunfish Lake sees Sunfish Lake and the southeast area as a test case. Councilmember Schneeman stated that in some of the literature form Sunfish Lake, they want the moratorium so that the legislature would have more time to study the California study. She would take that out of the equation. She stated that she talked to the Institute of Environmental Health Services in Washington, D.C. today and did not get a real good feel about the California study at all. She stated that she will get those comments to Mayor Park. Mayor Park stated that she reviewed some of the white paper information the Department of Health issued relative to the California study. Their position should be one of prudent avoidance. They said they should also continue to follow the environmental studies. Councilmember Vitelli stated that he was one of the two Councilmembers who did not support the denial of the Xcel permit. His rationale was based on the facts. It would have been easy to support in favor of denial of the request, but after doing considerable research, he felt the property value and health issues were not adequate to deny the permit. He is ready to support this resolution but agrees that he would drop the reference to the California study and would not make a big point of it. He provided the following points contained in the "California EMT Risk Evaluation for Policymakers and the Public — The Conclusions after Reviewing All the Evidence:" "To one degree or another, all three of the DHS scientists are inclined to believe that EMFs can cause some degree of increased risk of childhood leukemia, adult brain cancer, Lou Gehrig's Disease, and miscarriage. They strongly believe that EMFs do not increase the risk of birth defects, or low birth weight. Page No. 25 March 18, 2003 They strongly believe that EMFs are not universal carcinogens, since there are a number of cancer types that are not associated with ENE exposure. To one degree or another they are inclined to believe that EMFs do not cause an increased risk of breast cancer, heart disease, Alzheimer's Disease, depression, or symptoms attributed by some to a sensitivity to EMFs. However, All three scientists had judgments that were "close to the dividing line between believing and not believing" that EMFs cause some degree of increased risk of suicide, or For adult leukemia, two of the scientists are "close to the dividing line between believing or not believing" and one was "prone to believe" that EMFs cause some degree of increased risk." Councilmember Vitelli stated that if he was in the Department of Health and looked at that information, he would think it supports the position they have taken for years. Mayor Park stated that maybe there are some solutions that are not yet know. She would not want to look back ten years from now and see that there was one window opened and she did not go through it. Councilmember Vitelli stated that the proposal is raising the power line 25 feet and double circuiting the line. As the courts look at this, their conclusion has to be that raising the line and double circuiting it actually reduces the EMF risk. Mendota Heights does not produce electricity and that means that all of the electricity comes through someone else's yards. He stated that he is okay with the resolution but he is not comfortable with an open ended time for a moratorium Councilmember Krebsbach stated that she would not want to do anything that would impede getting power. Councilmember Vitelli stated that if the resolution is for Mendota Heights, he would change the first whereas. In Mendota Heights Xcel is building the line, so he would say "it is under construction." He stated that he is not pro power lines. He is taking the position of a Minnesota resident and someone who needs power. He is trying to balance the needs of the metro area and the people of Minnesota with the things Mendota Heights does not want to see in its community. Ayes: 5 Nays: 0 Page No. 26 March 18, 2003 Mayor Huber stated that his feeling is that these resolutions carry a lot more weight if the body is united on it. He has the advantage of not having been on Council when this line was under debate, so it is easier for him to try another avenue. It is difficult to get into a debate that goes on for a long time to reunite behind something. He feels it is worth a shot, and that it is reasonable. He is confident the city is not putting itself into a legal hole, but rather is just trying to see if the legislature can do something. This may not help Mendota Heights but if it helps someone else along the way, He would like to see if the entire Council can get behind it. Councilmember Schneeman asked why the Mayor would want Xcel not to upgrade the power lines. Mayor Huber responded that it is certainly a problem aesthetically. Everyone has read the studies more than he has, but if he were a home owner living under the power lines and was trying to sell his house, he would perhaps have the perception that a prospective buyer has read articles and has medical concerns. Councilmember Duggan moved adoption of Resolution No. 03 -13, "A RESOLUTION ENCOURAGING THE MINNESOTA STATE LEGISLATURE TO ENACT A MORATORIUM ON THE CONVERSION OF SINGLE CIRCUIT 115 KV ELECTRIC TRANSMISSION LINES INTO DOUBLE CIRCUIT 115 KV ELECTRIC TRANSMISSION LINES," amended in the first paragraph to replace "is in the process of planning the construction" to "is in the process of constructing." Councilmember Schneeman seconded the motion. Councilmember Vitelli asked if :Council would recognize the concerns he and Councilmember Krebsbach have and put a one year limit on a moratorium. Councilmember Schneeman stated that she would certainly do that. COUNCIL COMMENTS Councilmember Duggan stated that at the last meeting he had suggested that perhaps someday the fire station should be named for the Weinzettel family. He has spoken with Chief Maczko, and the department could do a little plaque on a fire truck based on years of service by a family. Chief Maczko suggested it could be for any volunteer in the city and there could be a plaque in City Hall, at a ballfield, etc. He stated that he informed the chief that he will bring I back to Council at some future time. Page No. 27 March 18, 2003 Councilmember Krebsbach stated that she thinks it is a good idea to capture the names of some of the founding families. Councilmember Duggan commented that the St. Paul paper had an article stating that Mendota Heights has the highest percentage of residents claiming to be of Irish heritage in the state. ADJOURN There being no further business to come before Council, Councilmember Vitelli moved that the meeting be adjourned to 6:00 p.m. on March 25 for police chief interviews. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 10:44 p.m. Kati teen M. Swanson City Clerk