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2002-03-19 City Council minutesPage No. 1 March 19, 2002 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, March 19, 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 Schneeman and Vitelli. Councilmembers Dwyer and Krebsbach had notified Council that they would be absent. AGENDA ADOPTION Councilmember Vitelli moved adoption of the revised agenda for the meeting. Councilmember Schneeman seconded the motion. Ayes: 3 Nays: 0 APPROVAL OF MINUTES Councilmember Schneeman moved approval of the minutes of the regular meeting held on March 7, 2002. Councilmember Vitelli seconded the motion. Ayes: 3 Nays: 0 CONSENT CALENDAR Councilmember Vitelli moved approval of the consent calendar for the meeting, revised to move items 5f, Benefit Broker Proposals, 5i, check signing authorization, and 5m, tax statement information, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the Treasurer's monthly report for February. b. Acknowledgment of the Fire Department monthly reports for January and February. c. Acknowledgment of a letter from Mn/DOT regarding the city's request for an upgrade to the Delaware Avenue /TH 110 intersection signal lights. d. Authorization for the issuance of a temporary liquor license to the Beth Jacob Congregation for Sunday, May 5, 2002 from 6:00 p.m. to 10:00 p.m. in conjunction with its annual fund raiser, subject to approval by the Commissioner of Public Safety, along with waiver of the temporary liquor license fee. Page No. 2 March 19, 2002 Authorization for the purchase of two 2003 Ford Crown Victoria police cars from Superior Ford for a total cost of $41,432.00. f. Authorization for the issuance of a purchase order to Mike McPhillips, Inc., for 2002 street sweeping for its low bid of $72.00 per hour. g. Approval of the issuance of a permit for a 24 square foot illuminated sign to replace the existing sign west of the entry doors on the north side of the Super America facility at 1080 Highway 110. h. Approval of 3.2 percent off -sale malt liquor licenses to Speedway SuperAmerica Store #4516 and SuperAmerica Store #4521 and a 3.2 percent on -sale malt liquor license to Mendota Heights Par 3 Golf. i. Approval of the list of contractor licenses dated March 19, 2002. j. Approval of the List of Claims dated March 19, 2002 and totaling $181,802.06. Councilmember Schneeman seconded the motion. Ayes: 3 Nays: 0 BENEFIT BROKER Council acknowledged a memo from Administrator Lindberg regarding quotes received from benefit package brokers. Councilmember Schneeman stated that when the issue was first discussed in February, she asked the Administrator to solicit proposals from more firms. She complimented Administrator Lindberg for getting such good proposals. Councilmember Vitelli moved to acknowledge the proposals and authorize execution of an agreement with Johnson McCann Benefits for one year, commencing on April 1, 2002, for consulting and recommendations for employee benefits. Councilmember Schneeman seconded the motion. Ayes: 3 Nays: 0 CORPORATE AUTHORITY/ Council acknowledged receipt of a memo and two proposed CHECK AUTHORIZATION resolutions from Treasurer Shaughnessy with respect to the internal C Page No. 3 March 19, 2002 AND SIGNING POLICY check authorization and signing policy and corporate authorization resolution for authorized signatures. Mayor Mertensotto stated that the corporate authorization resolution that must be forwarded to the bank is one thing, but the city must also set up the internal procedures. He stated that the authorization and signing policy prepared by Treasurer Shaughnessy is no deviation from the process that is currently in force. Council will continue to approve claims reports. The policy also authorizes use of a facsimile signature for Treasurer Shaughnessy on claim and payroll checks. Treasurer Shaughnessy will continue to review each claims list and sign of on them. The corporate authorization resolution authorizes certain city officials to sign manual checks and carry on other banking responsibilities. Councilmember Vitelli moved adoption of Resolution No. 02 -11, "CORPORATE AUTHORIZATION RESOLUTION," and Resolution No. 02 -12, "RESOLUTION CONFIRMING CITY CHECK AUTHORIZING AND SIGNING POLICY." Councilmember Schneeman seconded the motion. Ayes: 3 Nays: 0 TAX STATEMENT Council acknowledged a memo from Treasurer Shaughnessy regarding the 2002 real estate tax statements recently mailed to residents by the county and the potential impact of the governor's proposed fix for the state budget shortfall. Administrator Lindberg informed Council that the city should not see a great reduction in revenue this year but could lose $172,000 in aids in 2003 if the governor's proposal is adopted. Council acknowledged receipt of the advisory. LEGO EXHIBITION Council acknowledged a memo from Administrator Lindberg regarding a presentation by the award winning Friendly Hills Middle School Lego League team. Team members Katy Stone, Kelly McManus, Becca Vikonich, Tessa Kleinschmidt and Alex Caspers were present. Ms. Stone stated that the team tools first place in the local and state competitions and will travel to Orlando, Florida next month to take part in the national contest. The Lego challenge was to create a computerized robot that could rescue scientists stranded in polar regions. The team performed the robotics demonstration for Council and the audience. Page No. 4 March 19, 2002 On behalf of Council, Mayor Mertensotto congratulated the team for their accomplishments. PRESENTATION Mayor Mertensotto presented a plaque of appreciation to Mr. Jay Liberacki for his seven years of service on the Parks and Recreation Commission. PUBLIC COMMENTS Mr. Matt Kraft, Athletic Director for Independent School District 197, presented a resolution adopted by the school board in support of a feasibility study for a multi purpose community center on school district property. Mr. Kraft stated that the board adopted the resolution to support a dialogue with the city. He reviewed the resolution and a letter outlining the constraints, specifications and possible amenities for the proposed community center. Responding to a question from Mayor Mertensotto, Mr. Kraft stated that he does not know of any ice arenas that included a twelve month indoor walking track. Mayor Mertensotto stated that before Council could even consider bring the proposal into the St. Thomas ice arena feasibility study for an ice arena on St. Thomas property, Council would need to know where the facility would be located. He asked Mr. Kraft if he has a physical layout of the Henry Sibley High School campus development. Mr. Kraft responded that there was a proposal in the past that had specified exactly where such a facility could be located, but at this time it has not been specified. The first priority would be that none of the existing outdoor facilities be lost. Mayor Mertensotto stated that Council has not made a final decision and has not received a report on the hockey arena yet. Council will need architectural designs showing what the structure would look like. It would not take much to incorporate a facility for the St. Thomas site into the school district property, but someone from the district must have a physical design and show a potential area where the facility could be located. Mr. Kraft responded that the information he handed out at the last discussion with Council has the proposed area shown. The school district has not specified an exact spot yet, but looking west from Delaware, standing exactly where the school is located, there is a vacant area that was specified in 1997 as a site for an ice arena. Page No. 5 March 19, 2002 Mayor Mertensotto asked Mr. Kraft to provide Council with a sketch that is up to date. Mr. Kraft came to ask Council if it is too late to get involved. It is not too late, as Council is studying an ice arena proposal but no decisions have been made and it is never to late to consider options. Mr. Kraft asked if there is anything that is not in the list of constraints and specifications, etc., in his letter that should be included. Mayor Mertensotto responded that Councilmembers Krebsbach and Dwyer have been the Council's representatives on the task force and should review the list. He further stated that Council needs to know how the proposed facility would be financed. Administrator Lindberg informed Council that the Springsted report is ready but they are waiting for some financial information. It should be ready for the first meeting in April. Mayor Mertensotto directed Administrator Lindberg to forward the letter and resolution to Frank Lang to incorporate into the review. Council also needs to know what the additional cost would be to add the school district proposal into the study. Councihnember Vitelli asked if Mr. Kraft knows if an ice arena can be run at break -even. Mr. Kraft responded that building a facility just for hockey is close - minded. If the facility is to be built for the whole community, it should be adaptable for use at times other than when hockey needs it. It should be useable for soccer. and other group athletics, and those groups would commit money. Part of the study would be looking at the different groups in the community that would make a commitment, including the school district, to make it work financially. Mayor Mertensotto stated that St. Thomas is looking at St. Thomas University use as well and they could be using it during the day time hours. He stated that he did not know if St. Thomas University would be interested in coming in if the facility was strictly on public property. In this case, the land would be donated by the school district, so there is similarity between the two proposals. Page No. 6 March 19, 2002 Mr. Kraft stated that if St. Thomas University is willing to come to Mendota Heights and practice and play games, that would be a part of any study and any site where the facility would locate. Councilmember Vitelli stated that he would very much like to see an arena in the city. One of the problems he has with the St. Thomas Academy proposal is their unwillingness to take a risk on operating losses. His attitude towards building a facility on the school district grounds would be financial as well. He generally felt the St. Thomas proposal would have to have the city pay a pro rata share of the loss based on city use of it. His position would be that the city share would be about one - third. If St. Thomas is not willing to cover 2/3 of the operating loss, he would not consider the proposal. He feels the same for the school district site. He would like to make sure that the residents of the city have a pro rata risk on the operating costs based on the pro rata use by residents of the city. He felt the St. Thomas position on not wanting to support any operating loss must be changed and stated that he does not believe an ice arena can be operated without a loss. While he would like to see an arena in the city, he believes the residents would only receive one -third of the benefit and should pay no more than one -third of the operating losses. Mayor Mertensotto stated that the school district can levy for operating expenses. Mr. Kraft responded that he has not had much discussion with the school board on this issue but he can summarize it by saying that the resolution was unanimous to come forward to the city. Maintenance costs under the joint agreement for the athletic complex at Sibley are on a 50150 basis and Council is indicating that is not enough. Mayor Mertensotto responded that the school district encompasses more than Mendota Heights. The fields were built under the joint powers agreement and the residents of Mendota Heights will have a $1.7 million investment in the complex when it is paid off, but none of the residents of the other communities in the district will pay. What the school board has adopted is to be part of a determination on whether it is feasible to build an arena on district land that is available, which is the same thing St. Thomas said. He stated that Council appreciates the information and will have the administrator pass the resolution on to Mr. Lang. Councilmember Schneeman asked Mr. Kraft if he is looking at indoor tennis courts in the facility as well. Page No. 7 March 19, 2002 Mr. Kraft responded that he is. When you look at a seasonally adaptive facility, the boards can be pulled out and another surface can be available that many groups can use, including tennis. Councilmember Schneeman asked if any of the other cities in the district be willing to come forward and bring some money to the table on this. She suggested that would be an idea for Mr. Kraft to pursue. Mr. Kraft stated that he wants to have all options open. PUBLIC COMMENTS Mr. Chuck Elliott was present with respect to the progress being made on his complaint about his neighbor using his property for business purposes. Attorney Schleck stated that the city is pursuing enforcement of its ordinances as they apply to all residents of the city. He further stated that this is part of an on -going criminal investigation and the city cannot disclose many facts in public. INET Council acknowledged a memo from Police Chief Piotraschke regarding the INET service agreement. Council also acknowledged a memo from NDC4 Executive Director Jodie Miller regarding costs and savings. Ms. Miller was present for the discussion. Chief Piotraschke stated that the service agreement was before Council for discussion in January, and at that time the matter was tabled pending additional information from the state and NDC4. Ms. Miller is present this evening to update Council on what has happened with the other entities involved and the state's involvement. Ms. Miller stated that the memo from the chief included information on finances. All of the financing information has been put into the framework of a thirteen year investment even though some of the expenses are one time and some are operating expenses. She estimated that the total cost for participating until 2013 would be about $160,000 and the cash savings the city would realize for current phone lines is about $70,000. Based on the model she is working on with the state, over the 13 years, the Department of Public Safety would be applying its savings of more than $100,000 to the city for the city's communications, which makes the proposal virtually break even. Page No. 8 March 19, 2002 Councilmember Vitelli stated that he would not bank on anything the state is party to. He stated that in the financing memo, Ms. Miller also states that the city would spend $70,000 on T -1. Ms. Miller responded that the city would eliminate $70,000 in cost for the existing phone lines at Public Works and the Fire Department. The city is currently paying $50 a month for them now. The city would also save the costs for three dial up accounts. She informed Council that there are 13 entities that encompass 35 sites under the INET plan. St. Thomas Academy, St. Croix Lutheran School and ISD 917 did not approve the service agreement. All of the other entities have. She needs to know if there will be 38 sites, including the three Mendota Heights sites. She stated that she has been looking at some costs that will be shared by all of the members on a ring — Mendota Heights would be on the Henry Sibley High School ring. Other costs would be specific to each entity. She felt that she has shown that financially INET can do everything the city is doing now and many more things with better band width and operate for less money. One comment she heard today was that the city was concerned about the video equipment at City Hall. It is in the NDC4 budget this year and next year to replace camera equipment. All of the cities are in need of equipment replacement. The problem with the sound is that the city is using a house pa system and the NDC4 operator does not have individual controls. �. Two cities will receive new equipment this year and two next year. The cable commission has allocated $65,000 to replace equipment for Mendota Heights. Mayor Mertensotto stated that the city is still looking at $21,795 per site to get INET equipment in the door. Ms. Miller stated that the next question is how does the city manage and maintain the equipment. She stated that the information she put together included network management and repair. The city's existing phone system is upgradeable and so is the system at Public Works. Fire needs upgrading, at a cost she anticipates will be less than $10,000. All of the other entities are in the same boat. None of them has a full time technical staff. She stated that the coalition is planning a solution for those needs. Intertec would manage the system. AT &T is responsible for making sure the lines will operate. A coalition is in place and up until now she has not pictured the coalition without Mendota Heights. She just wants to make sure to make the point for the record that the easier decision for Council may be the decision to participate. She asked Council to carefully Page No. 9 March 19, 2002 consider the long -term picture and realize that all the other entities are in the same position. Ms. Miller stated that her concern is that these are not the fixed costs and there will be increases each year. If Mendota Heights does not participate, it will continue to spend the telecommunication money of about $500 a month now for internet, phones, etc. and will continue to get a limited point to point connection like it has now. Each of the city's buildings will have local phone lines and the city will have limited band width. Also, the DPS will possibly continue to spend $700 to $900 a month to connect City Hall to the state. The coalition members will spend their money and the state money and will transfer to a system that has a point to point connection that gives them so much more because they are on a ring and are connected to each other. Mendota Heights will be spending the same money but will not be part of the group. It is still possible for the city to come in later but it will possibly cost more money and the city will lose out on the first year of benefit. The coalition is forming groups to help each other with management. Councilmember Vitelli lauded Ms. Miller for all of her effort in putting the information together. The schools will benefit. A city that has a multitude of facilities will also benefit. Also, he knows staff have been lobbying him because they want to do this, but all of his instincts say this is not the way to spend city money now. This is a bad business deal. The government is paying for AT &T's investment in the wire. At the end of the 13 years, AT &T will own the wire and all bets will be off. That is not a good deal. AT &T could become aggressive on leasing costs. AT &T is a dysfunctional company now and they have treated the cable commission like peons. They do not care about the users and they send their legal staff to the cable commission meetings. For the city to enter into an agreement with that company would be a bad deal. He did not see any real INET benefit to the residents. He does see a benefit in the city's web site that will be announced soon. The city does not need INET to have a web site and does not have the staff to manage and maintain INET. West St. Paul has someone who spends at least half time taking care of telecommunications. Mendota Heights would need either a consultant or a staff person to tell staff how to make this work to get the benefit out of INET. There is no one on staff who can take the time to do that. He does not count on the state's commitment to the financing. The time value of money is also a bad deal. The city would have to spend $100,000 over the next twelve months. He felt that INET is a real benefit for schools, libraries and large cities but not for Mendota Heights. Page No. 10 March 19, 2002 Mayor Mertensotto stated that anything that is labor intensive will raise the city's budget. C Councilmember Schneeman agreed with Councilmember Vitelli. She stated that she spoke to people at St. Thomas to ask why they opted out and the response was that they really need staff to work on it. She further stated that she hates to get involved with a big conglomerate like AT &T. The city would be making a commitment for 13 years and there could be huge technological changes over that time. The city can join in a couple of years after Council sees how it has worked out for the other entities. Ms. Miller stated that she feels she has incorporated the hidden costs into her figures if the city continues doing what it is doing now for telecommunications. She included management in the budget, and she feels that she has been conservative in her estimates. She suggested that participate contingent on the DPS funding being available. Dakota County and the others could not participate without that funding. Fire Chief Maczko stated that he really believes this is a good opportunity. AT &T is just providing the fiber. In 13 years there could be a different provider. There are already two other franchises wanting to come into Mendota Heights. Mendota Heights would not be hooked into AT &T for anything other than the "freeway." Thirteen years from now there will be others that the city can go to. He stated that he would hope the city could be part of working together and take advantage of the opportunity. The city could never do this alone. Mayor Mertensotto stated that the city would not be saving money by getting equipment in without putting on additional staff. Chief Maczko responded that he could not guarantee that, but there are other small agencies in the group that cannot do it either, but everyone would help each other. He was concerned about Mendota Heights being left off the information highway when the numbers show the city would not be losing money but would be gaining great possibilities. As an example, he stated that if the Vo Tech was putting on a training session, city staff could watch it over INET instead of traveling to remote sites and paying the associated cost. Councilmember Vitelli moved to decline participation in the INET service agreement. Councilmember Schneeman seconded the motion. �. Page No. 11 March 19, 2002 Ayes: 3 Nays: 0 IVY PARK TENNIS COURTS Council acknowledged memos from Parks Project Manager Kullander regarding the Ivy Park tennis court survey. Councilmember Schneeman informed Council that she attended the Park and Recreation Commission hearing regarding the tennis courts. She stated that somewhere a rumor started about converting the courts into a skate board park, but that is not true. The city has heard for two years that the Ivy Park Tennis courts are not being used and the word went out that they might be removed, and the city quickly received a petition signed by 45 people. Fifteen to twenty people came to the Park and Recreation Commission meeting to request that the tennis courts be resurfaced. Mayor Mertensotto stated that Council requested that the commission hold a public hearing regarding the option of reconditioning the courts or doing away with theirs because they are not being used. The commission held the meeting and most of the residents who attended said they want the courts to stay. Mr. Paul Loes, 1046 London Road, stated that it was overwhelming that there is a lot of support for the repair of the courts. There are many people he talked to who cold not be here this evening who want to keep informed on the matter. Mayor Mertensotto stated that these are the only tennis courts in the area and there are many residential units in the Ivy Falls area. He asked what the condition of the courts is. Mr. Kullander responded that the courts have been there for 29 to 30 years and about two years ago a vertical crack developed and made it a tripping concern. The best method of repair is to dig the soils out and rebuild the courts, but that is very expensive. Another option is to mill out the area where the crack is and hope it does not come back in the future because of soil shifting. If the soil does not shift any more, the option should work well. It would cost about $10,000 to rout that crack out and repair all the other cracks. Removing the entire surface and removing soils would cost about $35,000 to $50,000. He pointed out that he does not know what the sub -soils are like. Councilmember Vitelli stated that up until six months ago there was an open question of what the interest the residents have in the tennis Ayes: 3 Nays: 0 Page No. 12 March 19, 2002 courts. There is a high level of interest and it is time for the city to fix the courts. Staff recommended to him that Council authorize the renovation for about $10,000, with the caution from staff that there is a risk that it could settle again in two years or it could last ten years or more. Mayor Mertensotto stated that it makes sense to take the gamble. Right now there is a safety factor, and the people want the tennis courts. Councilmember Vitelli moved to authorize staff the renovation of the Ivy Park tennis courts at an approximate cost of $10,000 and to fund the improvement with the line item allocated for the Ivy Park tennis courts in the park budget. Councilmember Schneeman seconded the motion. Councilmember Vitelli stated that if the cost is as high as $13,000, staff should go ahead with the project. Mr. Kullander responded that he will come back to Council after he receives the bids if they exceed $10,000. STREET PROJECT POLL Council acknowledged a memo from Engineer Marc Mogan regarding a summary of the poll data for future street improvement proj ects. Mayor Mertensotto stated that Council must look at where the city's maintenance money is being spent. Ivy Falls Avenue and Sunset Lane are in very poor condition. Councilmember Schneeman stated that the Somerset neighborhood streets are in terrible condition. Mayor Mertensotto pointed out that 60% of the Somerset neighborhood respondents oppose reconstruction. Engineer Mogan summarized the poll results. He stated that all but two of the neighborhoods oppose street improvement in the near future. The Dodge Lane residents support at and he would recommend improving Dodge Lane. Ivy Falls Avenue residents also supported a project. The Avenues area was opposed as a neighborhood, but five of the six Somerset Court home owners want a new street. Somerset Court does not have curb and gutter now. Ayes: 3 Nays: 0 Page No. 13 March 19, 2002 Councilmember Vitelli recommended that Council hold a public hearing. He also stated that Dodge Lane has a high percentage in favor of improvements but the problem is how much they would be assessed. Mayor Mertensotto stated that the process would be to do a feasibility study and then hold a public hearing. Council would be spending money in anticipation of a public improvement project. Dodge Lane would be a full street, and if the residents want to bring Dodge Lane up to city standard with curb and gutter, the city would pay 50% of the cost. If they just want the street oiled, they would have to pay the full cost. Engineer Mogan stated that he is recommending that Council direct engineering staff to prepare feasibility reports for the Freeway Road area in connection with the Town Center project, Dodge Lane, Ivy Falls Avenue and Somerset Court. Staff will see how the work load works and can make a determination at a later date on whether to call public hearings for this year for improvements other than. those for the Freeway Road neighborhood. Councilmember Vitelli moved adoption of Resolution No. 02 -13`, "RESOLUTION ORDERING PREPARATION OF FEASIBILITY REPORT FOR STREET RECONSTRUCTION AND REHABILITATION IMPROVEMENTS TO SERVE THE AREA REFERRED TO AS THE FREEWAY ROAD NEIGHBORHOOD INCLUDING JEFFERSON HEIGHTS, MORTENSEN'S ADDITION, GAILAND HEIGHTS AND SURROUNDING AREAS (JOB NO. 200202, IMPROVEMENT NO. 2002, PROJECT NO. 1)." Councilmember Sclnneeman seconded the motion. Staff was directed to communicate to the residents why Council is not proceeding with other streets based on the survey results. LIQUOR ORDINANCE Council acknowledged a memo and proposed recodification of the liquor ordinance from the City Clerk. Council briefly discussed the draft and directed the City Cleric to provide a class of license and reduced license fee requirement for educational institutions that include cooking programs as part of the curriculum, reduce the square footage requirements for dining rooms, add language regarding nude dancing and look at the Page No. 14 March 19, 2002 distances from churches /schools with respect to wine or liquor licenses in Town Center restaurants. Discussion was continued to the second meeting in April to allow input from license holders and other interested parties. BOARD OF REVIEW Council acknowledged that the annual Board of Review has been scheduled for 7:00 p.m. on April 7. ADJOURN There being no further business to come before Council, Councilmember Vitelli moved that the meeting be adjourned. Councilmember Schneeman seconded the motion. Ayes: 3 Nays: 0 TIME OF ADJOURNMENT: 9:48 p.m. K thleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor