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2002-07-09 City Council minutesPage 1 July 9"', 2002 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, July 9th, 2002 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, was held at 7:30 P.M. on Tuesday, July 9, 2002 at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Acting Mayor Dwyer called the meeting to order at 7:30 p.m. The following members were present: Acting Mayor Dwyer, Council members Krebsbach, Schneeman and Vitelli. Mayor Mertensotto was absent. AGENDA ADOPTION Acting Mayor Dwyer stated that there is a revised agenda. He also received a request to move item 9e Resolution No.02 -37 "A RESOLUTION DENYING A VARIANCE FOR AN INDENTIFICATION MONUMENT SIGN AT 949 MENDOTA HEIGHTS ROAD" to item 7 immediately following the Hockey Arena item. Acting Mayor Dwyer moved adoption of the revised agenda for the meeting. Council member Schneeman seconded the motion. Ayes: 4 Nays: 0 MINUTE APPROVAL Council member Vitelli moved approval of the minutes of the regular meeting held on Tuesday, June 18"', 2002. Council member Schneeman seconded the motion. Ayes: 4 Nays: 0 CONSENT CALENDAR Council member Vitelli moved approval of the consent calendar for the meeting, revised to move items 5a, Planning Commission Minutes, 5h, Signart Building Permit and 51; Resolution 02 -32 to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgement of the Building Activity Report for June 2002. b. Acknowledgement of the Fire Department June 2002 Monthly Report. Page 2 July 9"', 2002 c: Acknowledgement of the Livable Communities Grant Application. d. Authorization for issuance of Purchase Order for Computer Acquisition. e. Authorization for Copier Replacement. f. Authorization for Mayor to sign WHEP Joint Powers Agreement. g. Approval of Professional Services Contract with Barr Engineering to complete feasibility study. h. Approval of Proposed Pool Fence to be Installed at 867 Bluff Circle. Approval of Town Center Site Grading Bid. Resolution No. 02 -32: RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR BIDS FOR THE TOWN CENTER SITE GRADING PROJECT (JOB NO. 9906). j. Approval of List of Contractors. n . Approval of List of Claims. Councilmember Schneeman seconded the motion Ayes: 4 Nays: 0 MINUTES Acknowledgement of the June 25, 2002 Planning Commission Minutes. Council member Krebsbach requested a copy of the revisions from the Planning Commission minutes as there were changes to some important discussions. Councilmember Krebsbach made a motion to table the Planning Commission minutes until the revisions were available for Council review. Councilmember Vitelli seconded the motion. Ayes: 4 Nays: 0 SIGNART Cowicilmember Krebsbach stated that past Councils have considered a redevelopment of this site. The owner is now requesting the opportunity to construct a garage addition. Councilmember Krebsbach stated that she has two concerns: First, that this site has a warehouse look and not a Page 3 July 9"', 2002 commercial look. Second, she is concerned that the applicant would be spending money on this property when the City may have plans to redevelop the site. City Attorney Schleck added that the zoning ordinance does not speak to the aesthetics. This property is located in a B -1 Limited Business District and this addition would be appropriate within that zone. Councilmember Krebsbach stated that she does appreciate and encourage business owners to upgrade and remodel their property. He concern is that this is not a business look. Councilmember Vitelli expressed his support for the permit. Councilmember Dwyer stated that he sees this as an improvement to the property which ultimately increases the tax base of Mendota Heights. Council member Vitelli moved to approve the permit for the garage addition at 2170 Dodd Road. Councilmember Schneeman seconded the motion. Ayes: 4 Nays: 0 RESOLUTION 02 -32 Adoption of Resolution No. 02 -33: "A RESOLUTION AMENDING RESOLUTION NO. 94-44, A RESOLUTION. APPROVING A LOT DIVISON FOR 1349 KNOLLWOOD LANE ". Councilmember Dwyer explained that Mr. Michael Swor, 1349 Knollwood Lane received permission from the City in 1994 to subdivide a parcel of land located adjacent to his and add it to his property. As part of this agreement, Mr. Swor signed a "Declaration of Covenants" with the City. Mr. Swor is now in the process of selling his home to his neighbors, the Hocketts. Councilmember Dwyer stated that he pulled this item from the consent agenda to clarify that the Hocketts will now be required to execute the same "Declaration of Covenants" with the City as part of this approval. Acting Mayor Dwyer moved approval of Resolution 02 -33: "A RESOLUTION AMENDING RESOLUTION NO.94 -44, A RESOLUTION APPROVING A LOT DIVISION FOR 1349 KNOLLWOOD LANE." Councilmember Vitelli seconded the motion. Ayes: 4 Nays: 0 PUBLIC COMMENTS There were no public comments. HOCKEY ARENA Mr. Frank Lange addressed the City Council and thanked them for their support for this project. He reported that St. Thomas Academy now has an economic relationship with the University of St. Thomas and would no Page 4 July 9"', 2002 longer need the City's economic support for the hockey arena. However, he will need the City's participation as a conduit for the industrial revenue bonds and for zoning and permits. He indicated that he will be back with the bonding request in 30 -60 days. Mr. Lange also indicated that the $15,000 that the City allocated for the funding of the arena feasibility report will no longer be needed. Councilmember Schneeman asked whether or not public skating will be available in the new arena. Mr. Lange indicated that there would be public skating. Mr. Lange thanked the City Council again and stated that he is formally withdrawing his request for financial assistance for the arena and for a workshop to discuss the matter. CASE NO. 02 -24 Case No. 02 -24: Jim Carlson (Elements), 949 Mendota Heights Road — Variance for an Identification Monument Sign. Mr. Frank Lange addressed the Council regarding this application. He stated that St. Thomas Academy would like a beautiful sign on this site to reflect the high quality of the institution. Council member Vitelli stated that he didn't understand the Planning Commission's denial. Council member Krebsbach stated that the Planning Commission looked historically at the signage in the City. She expressed appreciation to the academy for upgrading their signage and putting money into the aesthetics of the institution. She also encouraged Mr. Lange to have St. Thomas Academy examine the current plastic signage on the side of their building. Acting Mayor Dwyer stated that he agrees with the Plain ing Commission. St. Thomas Academy already exceeds their total square footage of signage for the R -1 zone. Acting Mayor Dwyer also questioned the lighting for the sign. Council member Vitelli moved adoption of Resolution No. 02 -34: "A RESOLUTION APPROVING A VARIANCE FOR AN IDENTIFICATION MONUMENT SIGN AT 949 MENDOTA HEIGHTS ROAD Couricil member Scluieeman seconded the motion. Ayes: 3 Nays: 1 (Dwyer) PUBLIC HEARING Town Center Easement Vacations - Resolution No. 02 -35: "A RESOLUTION APPROVING STREET RIGHT -OF -WAY AND DRAINAGE AND UTILITY EASEMENT VACATIONS ". Acting Mayor Dwyer stated that this public hearing is to receive input on the proposed easements and right of way vacations for Town Center. Acting Mayor Dwyer opened the public hearing and asked if there was anyone in the audience that would like to speak. Page 5 July 9"', 2002 No- one was present for the public hearing. Acting Mayor Dwyer closed the public hearing. Councilmember Krebsbach asked for clarification on the purpose of the vacation. Public Works Director Danielson explained that the City surveyor is finalizing the Town Center plat. In order to avoid having to show all of the existing easements and right of ways on the new plat, we are vacating them before the plat is approved. Councilmember Vitelli moved approval of Resolution 02 -35: A RESOLUTION APPROVING STREET RIGHT OF WAY AND DRAINAGE AND UTILITY EASEMENT VACATIONS. Councilmember ScI eeman seconded the motion. Ayes: 4 Nays: 0 BERGS Engineer Larry Samsted addressed the City Council. He stated that David Berg would like to read a letter to the Cow -icil. David Berg read the following text to the City Council: "July 9, 2002 Mr. Mayor, Council Members, and Staff, As you are all aware, on July 13th, 2001, over 100 tons of our back yard fell onto and over Hwy 13 due to excessive rainfalls and saturation. As you are also aware, numerous meetings with staff, the DNR, and MNDOT followed this tragic event, with constant finger pointing and denial of responsibility on anyone's part. Every agency had their priorities, every agency had a potential solution, and every agency expressed what the Bergs should do about THEIR problem, on THEIR dime. And yet little was done, as a combined effort to help with a solution, that would be effective, yet cost feasible. Everywhere we turned, we ran into another roadblock. However, ultimately, we did come up with a suitable, and acceptable plan that satisfied all of the above agencies, but of course not without their additional conditions. By the following October, we had bids that proved to be cost prohibitive, to the tine of $200,000.00, plus all of the costs involved with the extra DNR stipulations. MNDOT would not allow us to reroute traffic at that time of year, Xcel Energy volunteered to insulate the power lines, however, it had snowed, and the construction companies would not proceed, and we all were skeptical as to what we would truly accomplish, with this "band aid" type of cure. And, of course there was no financial aid available for our type of erosion failure, we exhausted all possible grant agencies, local, state and federal, we simply did not qualify. How were we to pay for this? This spring I met with city staff to once again point out the fiill scope of the bluff corridor problem. All of us walked the fiill length of Hwy 13, from the bridge to Sylvandale. With expert information as to what to look for in an eminent slope failure, we saw all of the key causes through out the length of the corridor. My objectives for this exercise were three fold: First, to once again inform the city that the cost of the current plan was way out of our range and we simply needed to entertain a substitute Page 6 July 9"', 2002 plan. Second, that after the repair is made and when a future failure occurs, should a complete corridor repair be required at that time, our property would be exempt from any assessments. Third, to emphasize my opinion, and the opinions of two engineers, Larry Samsted, President, Itasca Engineering, and Philip Solseng, Vice President, Barr Engineering that the complete corridor is in repose, and subject to fail. This is also the shared opinion of MNDOT, whose representative made this clear last year by informing us that the bluff is moving, and due to this fact, Dakota County will not accept the turn over of Hwy 13 from MNDOT. Once again we were informed by City staff that a corridor repair would not be an option, and to go ahead and put together a new plan to submit before the council in 2 weeks. We once again ran into roadblock after roadblock. No one would entertain any type of work until the power lines are relocated. Another two weeks of phone calls back and forth. We had to postpone to the July 2" d council meeting, and now we can add on another $5,000.00 to the pre estimated $200,000.00 plus, to temporarily relocate the power pole and the lines from three companies! The valued sheet piling option was shot down after 4 weeks of calls back and forth and multiple visits to the site, due to the possible cause of a greater failure from the vibrations, and potential damage to surrounding homes. So here we are back to square one again. Last week we experienced 5 inches of rain and another 5 foot deep x 10 foot wide area eroded off of our surface, along with critical additional erosion in several other locations to our east and west, the full length of the complete corridor, causing a river of mud to flow down Hwy 13.THIS IS NOT ONLY OUR PROBLEM! This situation has been a concern for the residents of Woodridge Drive for quite some time now. Approximately 10 or 11 years ago, Mayor Mertensotto sat with several residents to discuss this matter at one of their homes. The solution, the residents were told, was in their hands, and they could use whatever measure they felt necessary to shore tip their particularly unstable areas, and secure their property. The abundant failed attempts by my neighbors to protect their land lay in pile after pile of deteriorated walls, rocks, and pipes along the bluff, now just heaps of garbage. When is enough, enough? What really needs to happen before we have your cooperation? Does my home have to fall on Hwy 13? Does someone have to get hurt by a flash mud flood on the highway or by falling trees, or debris? When are you going to realize and accept that this is not a BERG problem? There have been 3 trees that have fallen on the highway so far this spring, tip hill from THE BERGS, and that other repairs have been too feeble to hold residents property. What about the renowned failure where the water department left a clear-cut disaster? Are we to be held blame for all of this too? When are you all going to acknowledge and accept that this is a bigger problem than THE BERGS should have to handle by themselves? There is no engineering plan here today for you to approve. There is no acceptance of the letter of exemption your attorney has drafted for you to approve. There is simply one engineer, and one Mendota Heights Homeowner here for you to express your sincere willingness to help correct this horrible problem that faces our neighborhood, along with imiocent travelers on Highway 13. We, THE BERGS, can no longer do this alone against all of these odds. Sincerely, Janie & David A. Berg." Page 7 July 91h, 2002 Acting Mayor Dwyer asked City Attorney Dan Schleck about the City's liability for this slope. City Attorney Schleck stated that the City has no legal responsibility as this is private property overlooking a state highway. He added that this is a purely technical answer and does not prohibit the City assisting the Bergs. The City has not accepted any responsibility to maintain the slope /bluff. He also added that any plans submitted to the City for review would not be signed off on or endorsed by the City. Mr. Berg stated that they remodeled their home last year and are mortgaged to the hilt and cannot afford an expensive bluff restoration project. Council member Schneeman questioned whether the City of Laguna Beach paid for any of the properties that were lost in the mudslides in California. Mr. Berg asked for assistance in meeting with the state and other agencies. City Administrator Lindberg stated that staff would continue to meet with the Bergs and other agencies and help in any way they could. She reminded the Council that the City applied for a grant for the Bergs last year, but were unsuccessful. She indicated that if any other grant opportunities became available, staff would be happy to assist in those applications. Mr. Berg thai-Jced the Council for their assistance. "CASE NO. CAO 02 -21 Case No. CAO 02 -21: Scott Thomas, 1223 Knollwood Lane — Critical Area Site Plan Review Resolution No. 02 -36: "A RESOLUTION APPROVING A CRITICAL AREA PERMIT FOR A NEW HOME AT 1223 KNOLLWOOD LANE ". Mr. Scott Thomas appeared before the City Council to discuss his application for a critical area site plan approval for a new home on a vacant lot at 122' ) Knollwood Lane. Council member Krebsbach stated that she hoped that they would maintain as much of the natural vegetation as possible on their property. Council member Vitelli moved approval of Resolution No. 02 -36: "A RESOLUTION APPROVING A CRITICAL AREA PERMIT FOR A NEW HOME AT 1223 KNOLLWOOD LANE." Council member Scluleeman seconded the motion. Ayes: 4 Nays: 0 CASE NO. 02 -22 Case No. 02 -22: Jolu1 Heyn, 2376 Lemay Lake Road — Conditional Use Permit and Variance. Resolution No. 02 -37. "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT TO REPLACE A DETACHED GARAGE WITH A NEW DETACHED GARAGE AT 2376 LEMAY LAKE ROAD". Page 8 July 9'h, 2002 Mr. John Heyn appeared before the Council to discuss his application for a conditional use permit and variance to replace his detached garage with a new detached garage. Acting Mayor Dwyer stated that he would be in favor of this request if Mr. Heyn would agree to take the garage door off his old garage and replace it with a regular size door. The concern is that this old garage is not used as a garage in the ftiaire. Mr. Heyn stated that he would remove the old garage door. Council member Vitelli stated that he would support Mr. Heyn's original request of 780 square feet instead of the 750 square feet approved by the Planning Commission. City Attorney Schleck stated that if the Council is interested in granting the variance for the size of the garage, the hardship could be the size of the lot. Council member Vitelli moved approval of the conditional use permit and variance to replace a detached garage with a new 780 sf detached garage at 2376 Lemay Lake Road. Council member Schneeman seconded the motion. Ayes: 3 Nays: I (Krebsbach) CASE NO. 02-23 Case No. 02-23: Greg Bolton, 780 South Plaza Drive — Zoning Ordinance Amendment and Conditional Use Permit Resolution No. 02-38: "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A MARTIAL ARTS ACADEMY IN THE B-1 ZONE AT 780 SOUTH PLAZA DRIVE". Mr. Greg Bolton appeared before the Council to discuss his application for a zoning ordinance amendment and conditional use permit for a martial arts academy in the B-1 zone at 780 South Plaza Drive. Mr. Bolton indicated that the large number of Tae Kwon Do students that were also present at the meeting were there as a show of support for this application. Mr. Bolton stated that he listened to the traffic concerns that were expressed the last time he appeared before the City Council. He contacted the MHPD and MnDOT regarding the traffic issues. There have been two accidents on South Plaza Drive and 110 that both occurred between 1:00 AM and 9 AM in January and were the result of icy conditions. He stated that his facility would not increase the traffic in that area. Council member Sclu-ieeman stated that Tae Kwon Do has become very popular and is now an Olympic event. Mr. Bolton added that many high schools are now offering the activity as a lettering sport. Mr. Bolton stated that he has a signed purchase agreement with the owner of the property subject to City approval. Council member Page 9 July 9"', 2002 Vitelli stated that he supports this application. Council member Kxebsbach also voiced her support and stated that she is convinced this Tae Kwon Do academy falls under the designation of "private academy" in the B -1 zone. Council member Vitelli moved approval of Resolution No. 02-38, A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A MARTIAL ARTS ACADEMY IN THE B1 ZONE AT 780 SOUTH PLAZA DRIVE. Council member Schneeman seconded the motion. Ayes: 4 Nays: 0 HIDDEN CREEK Discussion of Hidden Creek Developers Agreement and Wetlands Pen-nit. Acting Mayor Dwyer explained that subject to a number of conditions, the City Council approved a preliminary plat for the Hidden Creek Development at their May 7, 2002 meeting. One of the conditions of approval was the execution of a developer's agreement between the City and developer that addressed, among other things, a warranty of the workmanship on the design for the storm water ponds, surface water and hydrology plans. That developer's agreement is now before the City Coi.mcil for consideration. The conditions of approval have been included in the document. The Developer will post a $50,000 letter of credit for five years—which is not a limit—but will be used as immediate funds for any claims or failure. City Attorney Dan Scl-Aeck stated that the parties agreed that Bair Engineering would be hired to determine if there was a failure. Acting Mayor Dwyer stated that he is satisfied that the City now has the protection it needs to execute this agreement. Acting Mayor Dwyer moved approval of Hidden Creek Developer's Agreement. Council member Krebsbach seconded the motion. Ayes: 4 Nays: 0 Acting Mayor Dwyer moved approval of the wetlands permit for Hidden Creek and authorized staff to send out the "Notice of Wetland Conservation Act Decision." Council member Vitelli seconded the motion. ROSS FEFERCORN DEVELOPERS AGREEMENT Sid Inman, Executive Vice President of Ehlers and Associates addressed the City Council. He stated that he was hired by the City to perform an analysis of the developer's agreement and pro forma as submitted by Ross Fefercorn. He stated that after reviewing the proforma, there are no significant red flags. However, he does have three concerns. First, he recommends that the developer pay cash tip front for the residential and/or commercial property. He explained that the developer wants to buy Page 10 July 9t", 2002 down the land as he sells or leases the units which potentially puts the City at a higher risk because it would be subordinate to the bank construction loan. Mr. Inman suggested that if the City is agreeable to taking a note instead of cash up front for the land that the City insert some language limiting the amount and timing of construction loan and bank lien on the property and also allow for City approval of construction loan draws and financing. The second concern is that the City have a "look back provision" in the developer's agreement that will allow for a financial review of the project after completion to determine the Developer's actual rate of return and need for public assistance. If the return is higher than anticipated, the City should be able to reduce its assistance to the developer. Finally, Mr. Inman stated that his third concern centers around the creation of a Master Association. The City is charged with the maintenance of its own property, as well as assuring all property owners within the City maintain their property to City standards. A Master Association is unnecessary, costly and complicated. Mr. Inman also added that the definition of "City Improvements" needs to be determined. What is the City willing to build, maintain and pay for? Mr. Fefercorn addressed the City Cotuicil. He stated that he does not feel that the parties are too far apart. He stated that the Master Association is a matter of policy, but is not a "show stopper" for him. He wants to ensure that the City and the CDA maintain their property to a high standard. Mr. Fefercorn stated that the look back provision is something he could work with. He is not unwilling to do this as he is also doing this in Mimleapolis. Council member Vitelli stated that if the City is going to take advantage of the good times with a look back provision, we should also be willing to share in the bad economic times. Council member Krebsbach moved that the Council have a Special workshop to discuss these items and suggested 6:00 PM prior to the next City Council meeting. Council member Vitelli seconded the motion Ayes: 4 Nays: 0 Acting Mayor Dwyer asked that in the meantime, staff and the attorneys meet and work out the details of the agreement, Page 11 July 9"', 2002 incorporating the comments made by Mr. Inman so that the Council would a document to review at the workshop. ADJOURN Council member Vitelli made a motion to adjourn the meeting. Council member Krebsbach seconded the motion. Ayes: 4 Nays: 0 ATTEST: .Y: a' AL Ka hle Swanson, City Clerk TIME OF ADJOURNMENT: 10:00 PM