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2002-04-16 City Council minutesPage No. I April 16, 2002 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, April 16,2002 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. The following members were present: Mayor Mertensotto, Councilmembers Dwyer, Kxebsbach, Schneeman and Vitelli. AGENDA ADOPTION Councilmember Schneeman moved adoption of the revised agenda for the meeting. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Vitelli moved approval of the minutes of the regular meeting held on, April 2, 2002 and the Board of Review meeting held on April 2, 2002. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Dwyer moved approval of the consent calendar for the meeting, revised to move items 5f, Dakota County Assessor's Report, and 5k, Royal Star Liquidators sign permit, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Ackriowledgment of the -unofficial minutes of the April 9, 2002 Parks and Recreation Commission meeting. b. Aclaiowledgment of unapproved minutes from the March 26, 2002 Planning Commission meeting. c. Ackriowledgment of the NDC4 meeting minutes and agenda. d. Acknowledgment of the Treasurer's monthly report for March. Acla-iowledgment of the Fire Department monthly report for March. Page No. 2 April 16, 2002 f. Approval of the premium refund option for workers' compensation insurance/renewal. g. Authorization for the city attorney to review Town Center development agreements. h. Authorization for the City Administrator to send a letter to the Dakota County CDA to request that the city's 1996 and 2001 CDBG funds be reallocated to the Town Center project. i. Authorization to enter into an agreement with Braun Intertec for soil testing and services required to begin grading of the Town Center site. j. Authorization for NDCTV to experimentally televise the May Parks and Recreation Commission meeting. k. Adoption of Resolution No. 02-18, "RESOLUTION FOR REESTABLISHING UNCHANGED PRECINCTS AND POLLING PLACES." 1. Approval of the list of contractor licenses dated April 16, 2002. in. Approval of the List of Claims dated April 16, 2002 and totaling $295,495.18. Councilmeraber Vitelli seconded the motion. Ayes: 5 Nays: 0 BOARD OF REVIEW REPORT Council aclaiowle*dged a2002 Board of Review status report from County Assessor Bill Peterson along with an associated memo from Treasurer Shaughnessy. Mayor Mertensotto stated that he understands that a number of people who could not attend the meeting but have been advised to contact the assessor's office, so the final report is not complete and should not be accepted. He stated that Council can close the Board of Review and approve the final report when it is complete. Councilineinber Krebsbach moved to close the Board of Review. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 Page No. 3 April 16, 2002 ROYAL STAR LIQUIDATORS Council acknowledged a memo from Code Enforcement Officer SIGN PERMIT REQUEST Berg regarding an application from Royal Star Liquidators for a permit to install a neon channel letter sign at the Mendota Plaza. Councilmember Krebsbach expressed concern about the requested sign, and stated that she wonders if Royal Star and Paster Enterprises would consider just using the name Royal Star. The city is putting a great deal of effort into the Town Center development across the highway from Mendota Plaza. Councilmember Schneeman agreed, stating that the proposed sign is very large for a sign that is back lit. She was very concerned about the impact of such a large lighted sign on the new housing in Town Center, particularly if it is lit at night. She pointed out that the city is being very careful about Town Center signs. She asked how the Mendota Plaza sign plan got adopted. Public Works Director Danielson responded that the Plaza was approved by a PUD and that included a sign criteria. He did not think the city anticipated a building sign as large as the one proposed, but the Royal Star portion of the building has a very large frontage. At the time the sign plan was adopted, no one ever thought the city would be dealing with a frontage so long. Mayor Mertensotto stated that the fiontage of that portion of the building is 65 feet and the applicant proposes 32" capitol letters and 23" lower case letters that will also be edged with gold trim. He stated that the sign will be too much of an attraction from the highway. He further stated that Council is nit - picking the signage in Town Center because signage is such a big factor in Mendota Heights. Councilmember Dwyer stated that the city did enter into a PUD agreement with the shopping center owners. If it were not for the PUD situation and the applicants came forward with the sign request, Council would not agree to it. He stated that the sign seems out of proportion and out of keeping with what Council is trying to do in Town Center, and out of keeping with the efforts Council has been malting with the owner of the Plaza. He suggested tabling the item and requesting the applicant to appear before Council. Councilmember Vitelli agreed, stating that Council spent a great deal of time on the recent sign requests from SuperAmerica and Mr. Trooien. The problem is that the PUD allows what is being Page No. 4 April 16, 2002 requested and the only recourse Council has is to ask the applicant to reduce the size. He agreed that the sign should read only Royal Star. Mayor Mertensotto suggested denying the pen-nit and reserve to the applicant the right to come before Council with a modified proposal for signage compatible with signage for commercial districts. Attorney Schleck stated that the shopping center sign criteria stipulates that the signing of the stores must be developed in an imaginative and varied manner, and Council has the right to say that the signage is not varied or creative. Councilmeraber Vitelli moved to deny the sign permit application and reserve to the applicant the right to submit a plan more consistent with the city's signage policy for commercial districts. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 LIQUOR ORDINANCE Council acknowledged a memo from the City Cleric regarding continued discussion on the proposed liquor ordinance recodification. Mayor Mertensotto stated that he felt it would be more appropriate to adopt the ordinance as a new ordinance rather than through recodification. Councilmember Vitelli moved adoption of Ordinance No. 366, "AN ORDINANCE LICENSING AND REGULATING THE SALE AND CONSUMPTION OF ALCOHOLIC BEVERAGES," to be effective on July 15, 2002. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 GOAL SETTING Council acknowledged a memo from the City Administrator regarding the annual goal setting session. It was the consensus that the meeting should be held on a Saturday in June and that each of the Councilmembers will inform the City Administrator on their availability. CASE NO. 02 -11, LANDFORM - Council acknowledged an application from Landform, on behalf TOWN CENTER of the City of Mendota Heights, for approval of the preliminary development plan for a Planned Unit Development, preliminary plat Page No. 5 April 16, 2002 and wetlands permit for Town Center. Council also acknowledged a report from Landform responding to the Planning Commission's recommended conditions, a report from the city planner, and a letter from Janet Skidmore and Demzis Harpole regarding green space and retail selection. Traffic Consultant Glen Van Wormer and Carolyn Krall, from Landform, were present for the discussion. Mr. Van Wormer reviewed the traffic analysis for the Town Center project. He stated that the 135 residential units will generate an estimated 765 trips per day, the retail component will generate about 3,100 trips per day, and the office components will generate about 600 estimated trips per day, for a total of about 4,500 trips per day. Mayor Mertensotto stated that at a prior discussion, Mr. Van Wormer indicated that the former businesses on the site should have generated about 3,500 trips per day, but everyone who laiows the area knows that there were never that may trips. As a practical hatter, there were likely only 200 to 300 trips per day. Mr. Van Wormer responded that about 4,500 estimated trips per day coming from this development compares to the McDonald's across the street that generates about 2,500 trips per day, or a SuperAimerica, which will generate about 1,500 trips per day. What he was trying to point out in the past is that the prior businesses on the site were not viable. If they were replaced by a Holiday store, there would be 2,500 trips per day. Any convenience store could easily generate 2,000 trips per day. Mr. Van Wormer stated that the analysis of the intersection indicates a very good level of service. Town Center will only add one or two cars per cycle of the light, and the development fits very nicely into the traffic. Mayor Mertensotto stated that what Mr. Van Wormer is saying is that the 4,500 additional trips per day for the segment that would go through the intersection would not burden the intersection. Mr. Van Wormer responded that some of the traffic will go north and some into the neighborhood with the frontage road. Adding the right -in from T.H.l 10 to Town Center also reduces the impact. Possibly only 2,500 trips per day will be added through the intersection. Mayor Mertensotto stated that he received a call from Mr. Jack Wallace, who lives on the frontage road, and he was already Page No. 6 April 16, 2002 concerned by the number of trips that will be generated from the development to Delaware and back. Councilmember Schneeman asked how many people in the seniors' building are expected to have cars. Public Works Director Danielson responded that he believes just about every apartment will have a car, and the plan accommodates about 80% underground parking. Mr. Van Wormer stated that the traffic counts he has projected used a reduced rate for the seniors but a higher rate than the national average. Their trips are usually non -peak, so there would be little impact. Mayor Mertensotto asked how many trips there will be on the frontage road and what will be done to slow that traffic. Mr. Van Wormer responded that there is a free flow ramp that will actually take traffic from westbound 110 that now comes through the frontage road. He anticipated that there will be about 300 trips per day coming from the Town Center development to Delaware along the frontage road. At one time there was also a concern that people would go across to Ridge Place and cut through that neighborhood. The new frontage road will line up with Ridge Place, but the traffic can much more easily go north to Marie Avenue than west to Ridge. There was also a concern for traffic that now comes from the school. Today there are two options for that traffic — take the frontage road to get to Dodd or take the highway. If the road system is changed as is proposed, the traffic will need to go through a four way stop situation. He stated that he does not anticipate there will be much diversion of that traffic. The city would want to do some traffic calming east of South Lane to keep the traffic from using South Lane. Councilmember Krebsbach asked what is being done to decrease westbound traffic on the frontage road. Mr. Van Wormer responded that motorists on the highway would have to make a right turn onto Delaware, then a left turn from Delaware onto the frontage road and travel at 30 miles per hour rather than staying on the highway and using the free right into Town Center. Also, the free right may divert some of the traffic that now comes from the Freeway Road neighborhood to the entrance from T.H. 110. Page No. 7 April 16, 2002 Councihnember Krebsbach asked if Mn /DOT would ever agree to an in/out from T.H. 110 to Town Center. Mr. Van Wormer responded that it is very doubtful because the right -in is quite close to the right turn lane from T.H. 110 to Dodd. It would be very difficult for traffic to turn out of Town Center onto T.H. 110. Councihnember Krebsbach asked whether any north/south sidewalk or trail has been lost along the development that would actually be the pedestrian access from the Freeway Road neighborhood. She stated that Council explained to the neighborhood that they would have walking access to Town Center and that she is going to request that there be a north/south trail and also that the calming landscaping amenities along the frontage road that were in an earlier iteration of the plan be brought back. Mr. Van Wormer responded that there are sidewalks along the entire road system. One must be very careful with landscaping so that site distance problems are not created. Also, the buildings are fairly close to the roadways and will have an impact on slowing motorists down more than landscaping or parking does. He stated that he tried to look at how to calm traffic and believes this plan will do that quite well. Mayor Mertensotto was concerned that lights from cars coming eastbound on the frontage road at night might create a problem to westbound traffic on the highway. Mr. Van Wormer responded that one option would be to look at some pocket landscaping to break up the headlight problem. Careful landscaping could take care of it without redesigning the street locations. Councihnember Krebsbach asked what alternatives there are to a traffic light at Ridge Place. She stated that she is concerned about Ridge Place. Mr. Van Wormer responded that the biggest concern is possibly the westbound right turn from T.H. 11 Q. It will not be much different for pedestrians crossing at Ridge Place or to the north after Town Center is developed than it is now. There is enough distance from the free flow and Ridge Place for people to react, but he could talk to MnDOT about reducing the speed limit on Dodd Road. With respect to people making a left turn out of Town Center, the distance from Page No. 8 April 16, 2002 the highway is such that there is enough reaction time. Because there is a flee -flow right turn onto Dodd, there could be a stop sign at the right turn lane, but that is about the only way to stop traffic. Councilmember Dwyer stated that it sounds to him that there are tools available to the city as the project goes for ward to take care of any problems. Mr. Van Wormer responded that he does not think there will be a problem, but if there is, the city has the ability to change the yield to a stop at the free right from the highway onto Dodd. Comlcilmember Sclmeeman stated that the best solution for pedestrians would be an underpass under Dodd, and she will fight for that. Ms. Krall stated that she has spoken with Mn/DOT about more elaborate crosswalks and warning lights for pedestrians and is also trying to get a grant for an underpass. It will be difficult to cross from this development to Ridge Place, and signs should be installed to encourage pedestrians to go to the intersection to cross rather than crossing at Ridge. She stated that she would not want to put a crosswalk across Dodd to Ridge. Ms. Krall reviewed the Planning and Park and Recreation Commissions' recommended conditions and the changes that have been made to the plan in response to those recommendations. Responding to a question from Councilmember Dwyer about similar densities in Mendota Heights, Ms. Krall stated that the Victoria Townhomes development is very similar but there is a corner of unusable area that brings the density down. Mayor Mertensotto stated that the senior facility should not be included in the density calculation because there is no way the city would otherwise allow sixty units on 1.4 acres. Ms. Krall responded that when the senior facility is taken out of the calculation, the density is about ten units per acre. She also stated that more than 30% of the project is green space. Councihnember Krebsbach asked if the hoffices could be removed. Mayor Mertensotto responded that when Council adopted the comprehensive plan amendment for Town Center, Council went to a Page No. 9 April 16, 2002 mixed use concept for Town Center. In order to get all the green space and make the development economically feasible, the mixed uses must remain as they are. Councilmember Krebsbach stated that the homes on North Freeway Road sit very high and she did not think they will be blocked by the development. Ms. Krall agreed and also stated that the development will look very open from the highway. Councilmember Dwyer stated that staff should make sure that any issues that were not addressed are included in the developer's agreement. Ms. Krall informed Council that none of the lot lines and none of the public street lines are being moved, but it may be necessary to make some minor adjustments in the preliminary plat. She will know better after the soil borings are completed. With regard to the wetlands permit, Public Works Director Danielson stated that there is a designated wetland along Dodd, just west of the condominiums. The grading adjacent to the wetlands will be pushed so that there is less than 400 cubic feet of dirt moved. Mr. Sten Gerfast asked if a viable business has come in yet. Mr. Ross Feffercorn responded that there have been a number of inquiries but it is premature until the developers agreement and other items are put in place. Mr. Bob Kreuser stated that any time he goes east, he takes the frontage road to Delaware to access Highway 110. He did not think it would be any faster for people to use the highway. He asked what the difference is between Mr. Feffercorn and someone who bids to remove the Oasis store. He asked why any contractor cannot bid on the development. Mayor Mertensotto responded that the city has not set a price on the property yet, nor is there an agreement with Mr. Feffercom. If this were an ordinary contract, the city would put specifications together and take bids. In this case, the city has an expert who has worked with the city for three years on the project. Mr. Feffercorn was only paid for the preliminary design work. The city will soon know what the grading and infrastructure will cost. If Mr. Feffercorn does not Ayes: 5 Nays: 0 Page No. 10 April 16, 2002 want to pay the price, the design will remain. Any developer will have to follow the architectural design for the senior facility. Mr. Feffercorn has proposed a development contract to the city and the city attorney will review it and make a recommendation. This is a specialized development and cannot be put out for bids in the same manner as a public improvement project. Responding to a question from Mr. Kreuser, Mr. Van Wormer stated that the traffic count on the frontage road, west of South Lane, is under 500 trips per day. Town Center will add about 300 trips per day, bringing the total to 800, which is not a high volume residential street count. He stated that the count on the frontage road was taken in October when school was in session and the peaks were in the morning and afternoon. Mayor Mertensotto stated that Mr. Feffercorn has not been part of the development or paid by the city since the preliminary work was done. Mr. Feffercorn responded that he has not been paid by the city for three years. His attorney is working on a draft of a contract now. Councilmember Vitelli moved adoption of Resolution No. 02 -19, "A RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT PLAN FOR A PLANNED UNIT DEVELOPMENT, A PRELIMINARY PLAT AND A WETLANDS PERMIT FOR THE TOWN CENTER REDEVELOPMENT PROJECT." Councilmember Krebsbach seconded the motion. Councilmember Vitelli stated that Ms. Krall has done a great job of responding to the Planning Commission and a good job of organizing the responses in a fashion that can easily be understood. Councilmember Krebsbach complimented the Planning and Parks and Recreation Commissions for doing an outstanding job reviewing the plan. LANDFORM FUNDING Council acknowledged a request from Landform for additional funding for work completed on Town Center. Council also acknowledged an associated report from the City Administrator. Ms. Krall stated that Landfonn has reached the approved limit on the civil engineering work and slightly exceeded it. After the March 5 Page No. 11 April 16, 2002 submission of planning applications and drawings, revisions were made based on changes requested by city staff and the developer. The Planning Commission made many comments that needed a detailed level of revisions. The extra work cost $23,000. She stated that she has actually overspent her contract by $44,000 thus far and is asking for an additional $15,000 to finish the grading and the wetlands adjustments. Responding to a question from Mayor Mertensotto, Public Works Director Danielson stated that city staff will work, with Landform's engineer to make revisions to the grading plan, and the city will design the utilities. Ms. Krall stated that she did the design work, and the city will pick that up and get it ready to bid. The $15,000 will complete her work on Town Center. Councilmember Vitelli stated that he thinks Landform did a terrible job of managing the financing. Ms. Krall was authorized $180,000 and overspent that by nearly $60,000. Ms. Krall responded that she overspent by $40,000 and only had an agreement to take the project to the PUD submission. The changes recommended by the Planning Commission were time consuming. Councilmember Vitelli asked why Ms. Krall never alerted Council He stated that she never raised a flag to Council and just expects the city to pay. Ms. Krall responded that she had submitted the first PUD drawings and had to make changes to those drawings based on discussions with staff and the Planning Commission. She had the choice of putting the data together or holding things up for months while finances were discussed. Stopping the entire process seemed undesirable. Councilmember Vitelli asked what risk there would be in Council not authorizing the additional $15,000. Ms. Krall responded that she would not pick up any of the comments made by Council this evening or the grading or wetlands work. Administrator Lindberg stated that the city would either have to hire Landform or another consultant to do the remaining work. The preliminary plat is as complete as it can be but there are still some Page No. 12 April 16, 2002 boundary and title issues that must be resolved. That will cost about $2,000. Mayor Mertensotto asked Ms. Krall how she could run over by $33,000 without alerting Council. Ms. Krall responded that she alerted staff. Administrator Lindberg stated that she received the bill a day before the last Council meeting and called Ms. Krall, who stated that she had just discovered the overage and indicated she would submit a letter to Council. Ms. Krall stated that there were changes that were beyond what was anticipated. If she had been on a slower time table she could have come to Council. She hit the contract. maximum the last week in February. Responding to a question from Councilmember Vitelli, Administrator Lindberg stated that the $15,000 that Ms. Krall is requesting to finish the project is for changes made since the Planning Commission hearing, the preliminary plat, getting the process to the final stage, the changes because of soil borings and the changes Council asked for this evening. After the final plat is completed, the city will be asking for specific proposals. Responding to a question from Councilmember Vitelli, Ms. Krall stated that she will guarantee that she will not exceed the $15,000. Administrator Lindberg stated that the city can save $10,000 of what was originally authorized by having staff complete and present the Livable Communities Grant application. Councilmember Krebsbach stated that this stage is over and now the city has a plan that has been refined many times and the city will work with what it has. At this point, the process is over and the developer will enter into a development agreement. The city will sell the property and it will begin to develop. She stated that she would like closure. Ms. Krall stated that it is her fault for not identifying earlier that she was running over and she did not think she could stop the project at that time to discuss financing. Page No. 13 April 16, 2002 Councilmember Vitelli recommending paying 50% of the overrun. The rest is financial mismanagement and Landform has to swallow some of the overrun. He felt that it would be very generous of the city to pay $22,000 of the overrun. Ms. Krall should have alerted Council. Ms. Krall stated that she credited $3,400 to $3,500 against the total bill by discounting her rate. Councilmember Dwyer asked if it is correct to say that the job Ms. Krall agreed to do for the city is going to cost $59,000 more than authorized. Ms. Krall responded that it is costing that much more because of the detailed nature of the comments, the detail she worked on and the complexity. She also focused on meeting the schedule and did not focus on money. She understood the issue of taking responsibility for that and will if she must. She will be very careful of the next $15,000. One of the reasons she proceed with malting the changes was because she has had an ongoing relationship with Council that if the city was asking for changes and work to be done, the city would pay for it. Mayor Mertensotto stated that Ms. Krall has done a very credible job and has met the task. Council does not like to see cost overruns, and there was some control missing, but he did not think it fair to have Landform tape a cut after the service was rendered. He stated that he would like to pay the $44,000 and authorize the $15,000 to complete the process. Councilmember Krebsbach asked if the overrun was because of responding to the Planning Commission's recommendations. Ms. Krall responded that the bulk of the overage was for the design guidelines. It is more detailed and took longer to do and had more changes than were anticipated because of city input. She stated that after the credit for her rate, she is asking for 443,500. Councilmember Vitelli stated that he does not want to tape anything away from the quality of the work but Council must exhibit financial control. He stated that he cannot approve the overruns. Councilmember Vitelli moved to authorize city payment of $22,000 of the $44,000 overrun. Councilmember Dwyer seconded the motion. Page No. 14 April 16, 2002 Mayor Mertensotto stated that Ms. Krall would be the first contractor the city would not have approved an overrun for. He felt that there may be some internal control lacking. If Ms. Krall had been warned in advance that she would not be paid if she did not get prior approval. Councilmember Vitelli responded that if Council had been alerted they could have discussed not doing certain things. Ms. Krall stated that she charged the city a plarmer's rate for her service rather than the principal architect rate. The city is being billed considerably less than her standard rate because she has an on- going relationship with the city and the project is very hands -on. There is not 25% profit built into her work, nor is there 25% mismanagement. She stated that she can provide the city with the hours everyone worked. Councilmember Krebsbach stated that the process is coming to closure and that Ms. Krall has delivered a great plan and has served the city well. Ms. Krall stated that she will continue to answer questions from the city but will not make any plan changes and will make sure her staff does not do anything that would overrun the $15,000. Mayor Mertensotto stated that Council authorized a specific job and kept asking Ms. Krall to do more and more work. The overrun is embarrassing for Ms. Krall and the city and Council must get to closure. VOTE ON MOTION: Ayes: 2 Nays: 3 Mertensotto, Krebsbach, Schneeman Ayes: 3 Nays: 2 Dwyer, Vitelli Ms. Krall stated that she could make sure there is no profit built into the rates, which would be another 10% ($4,000) reduction. Councilmember Krebsbach moved to authorize payment of $40,000 to Landform for cost overruns for services provided. Councilmember Schneeman seconded the motion. With respect to the $15,000 to carry the process through to the final plat, Ms. Krall stated that she will make sure she does not exceed that amount. For the $15,000, the preliminary development Ayes: 5 Nays: 0 COMMUNITY EDUCATION REQUEST Page No. 15 April 16, 2002 requirements will be met, and the city will have a final plat that can be recorded, and she will not request any extensions. Administrator Lindberg stated that the final plat will get the city to the point where it can go out to bid, including grading adjustments Councilmember Krebsbach moved to authorize an expenditure of up to $15,000 for completion of work to be performed by Landfonn to bring the process through the final plat stage. Councilmember Schneeman seconded the motion. Council acknowledged a memo from Administrative Assistant Hollister regarding a request from ISD 197 Community Education for a donation towards a computer lab at the Thompson Park adult learning facility. Administrator Lindberg informed Council that the school district representatives asked that the matter be tabled to the first meeting in May. COUNCIL COMMENTS Councilmember Vitelli complimented the Fire Department for the work they did on a recent grass fire in cooperation with departments from Apple Valley, Eagan and Inver Grove Heights. He stated that the ATV that was recently donated was put into use shuttling fire fighters back and forth. He also complimented Bob and Maureen Vance for their donation of the ATV. ADJOURN There being no further business to come before Council, Councilmember Vitellil moved that the meeting be adjourned. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 10:40 p.m. Kathleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor