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2002-01-15 City Council minutesPage No. 1 January 15, 2002 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, January 15, 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, Krebsbach, Schneeman and Vitelli. AGENDA ADOPTION Councilmember Schneeman moved adoption of the revised agenda for the meeting. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Dwyer moved approval of the amended minutes of the regular meeting held on January 3, 2001 as amended. Councilmember Schneeman seconded the motion. Ayes: 5 Nays:0 CONSENT CALENDAR Councilmember Vitelli moved approval of the consent calendar for the meeting, revised to move items 5f, relocation funding for Annex Cleaners, 5i, reappointment of city commissioners, and 5j, funding request for ice arena study to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the unapproved minutes from the November 14, 2001 NDC4 commission meeting, the December 5, 2001 Executive Committee meeting and the agenda for the January 10, 2002 full commission meeting. b. Acknowledgment of the minut4es of the January 8, 2002 Parks and Recreation Commission meeting. c. Acknowledgment of the Treasurer's monthly report for December. d. Acknowledgment of the Fire Department monthly report for December. Page No. 2 January 15, 2002 e. Authorization for the Mayor and City Administrator to Execute a developers agreement with the Dakota County CDA for senior housing development. f. Approval of the Year 2002 Council meeting schedule, which includes rescheduling the March 5 meeting and starting the November 5 meeting at 8:00 p.m. g. Approval to schedule the annual Board of Review meeting for 7:00 p.m. on Tuesday, April 2, 2002. h. Adoption of Resolution No. 02-03, "A RESOLUTION RENEWING A CONDITIONAL USE PERMIT TO LINDER'S GREENHOUSES TO OPERATE A TEMPORARY SEASONAL GARDEN CENTER IN THE PARKING LOT OF THE MENDOTA PLAZA UNDER CERTAIN CONDITIONS." i. Adoption of Resolution No. 02-04, "RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT FOR MARIE AVENUE MILL AND OVERLAY PAVING PROJECT (IMPROVEMENT NO. 200 1, PROJECT# 1)." j. Approval of the list of contractor licenses dated January 15, 2002. k. Approval of the List of Claims dated January 15, 2002 and totaling $874,189.28. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 RELOCATION FUNDING Council acknowledged a memo from Administrator Lindberg regarding a request from Annex Cleaners for approval of $6,940.15 in additional relocation funding to assist with building renovation costs. Mayor Mertensotto stated that Faegre and Benson has not given the city a recommendation to increase the relocation amount that has been approved. Administrator Lindberg responded that Steve Carlson called her regarding the request from Annex. Faegre and Benson has indicated Page No. 3 January 15, 2002 that the city is obligated to pay relocation but the request is over and above the city's obligation. Mayor Mertensotto stated that when the contract was negotiated, it was noted that relocation runs about 20% of the acquisition cost. The Dziks are now requesting Council to pay for installation of electrical, signage, etc. He felt the request is uncalled for and that the city should only pay what is required by statute and stated that he agrees to the original $20,000 relocation figure. Councilmember Dwyer stated that he would like additional information. He stated that he has seen references to a lump sum of $20,000 and that the city is required to pay that amount. He stated that he would like to know where that number comes from in state statute. He would also like information on the difference between relocation benefits and reestablishment expenses. If the Dziks are able to seek money under relocation as well as reestablishment, and the city's legal costs would likely exceed the requested $6,900, the city would likely be better off paying them $26,900. He also asked about timing and whether the city could give them the $20,000 now. Administrator Lindberg responded that the Dzik family would like to get into their new quarters in February. Mayor Mertensotto stated that he would have no problem with giving them the $20,000 now. If there are additional funds to be considered, Council can do that later. Councilmember Vitelli moved to proceed with the payment of $20,000 in relocation expenses and request additional information on the request. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 COMMISSION Council acknowledged a memo from Administrator Lindberg APPOINTMENTS regarding expired advisory commission terms and appointments. Councilmember Schneeman noted that there is a vacancy on the Parks and Recreation Commission due to the resignation of Jay Liberacki. She encouraged women to apply since there are currently no female members. Councilmember Dwyer commented that Council does not discriminate on the basis of sex. Page No. 4 January 15, 2002 Mayor Mertensotto stated that there is an opening on the Parks and Recreation Commission that must be filled and that the appointment is open to anyone who wishes to apply. Councilmember Krebsbach moved to reappoint Joe Betlej to the Planning Commission, Ellsworth Stein and Greg Fitzer to the Airport Relations Commission and Dick Spicer to the Parks and Recreation Commission for three year terms beginning on February 1, 2002. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 ICE ARENA STUDY Council acknowledged a memo from Administrator Lindberg regarding continued discussion on a request from Mr. Frank Lang on behalf of St. Thomas Academy for $15,000 to assist in funding an ice arena study. Couricil also acknowledged two letters from Mr. Lang and a letter from the University of St. Thomas and a staff memo regarding the Parks and Recreation Commission's recommendation on the matter. Mr. Lang and Mr. McKasy were present for the discussion. Mayor Mertensotto stated that Mr. Lang's letter that was submitted today talks about the need for three additional locker rooms. He asked how many locker rooms Mr. Lang is talking about and how many would ordinarily be needed. Mr. Lang responded that four locker rooms were originally anticipated, but that two more are needed for St. Thomas University, and those two would be larger than the others. Mayor Mertensotto stated that the study should show what it would cost to build an arena for use by St. Thomas Academy, MHAA and Henry Sibley High School. Any extras that would be exclusive for St. Thomas University would have to be separately discussed. Council would have to know the cost and the revenue situation. With response to the list of study items on Mr. Lang's list, Councilmember Krebsbaeb stated that the feasibility study she would look for is a simple arena for St. Thomas Academy, Henry Sibley and MHAA, and not the collegiate scale. She would be concerned about anything that brings it up to a higher standard. She would like to know what benefits the arena would have for the residents of Mendota Heights. She informed Mr. Lang that she Page No. 5 January 15, 2002 would like to see a feasibility study for a simple arena as was originally discussed and secondarily, if St. Thomas University is included, a different feasibility on what it would cost and how costs would be covered. Mayor Mertensotto stated that the needs assessment should be for a basic ice arena and then there should be an enhancement additional studying capacity and other needs for collegiate level play. Mr. Lang responded that the revenue streams will be substantially different both in terms of ice time and advertising. The ability to achieve additional advertising income comes at the college level. Councilmember Krebsbach responded that Council agreed at the recent workshop that neither St. Thomas Academy nor the city wants to be responsible for operating costs. Mayor Mertensotto stated that the report should include how the facility would be managed and what the costs would be. Councilmember Schneeman stated that she has many concerns and would write them down and give them to Mr. Lang. Responding to a Council question, Mr. Tim Milnar, from MHAA, stated that the association needs about 600 square feet of meeting and office space and about 1,500 square feet for storage. Mayor Mertensotto stated that Council is discussing the letter from Mr. Lang, and the direction is that Mr. Lang is to amend his letter to specifically differentiate between St. Thomas Academy et al and the addition of St. Thomas University. Councilmember Vitelli stated that the study specification is very ill defined. Before the city spends $15,000, Council needs a much better definition of the study and its bounds and expected results. Mayor Mertensotto responded that when he spoke to Springstead about the similar study they did for the Mahtomedi school district, they said that $15,000, should cover the costs for the study. It could cost $75,000 for an expansive study. If Council needs additional study, it can be done after the initial study is completed. Councilmember Krebsbach stated that she will support the feasibility study but in know way would that commit her to supporting the arena. Page No. 6 January 15, 2002 Mayor Mertensotto stated that St. Thomas Academy understands that there is no commitment, and the St. Thomas board has said it is not making a commitment either until the costs are known. He suggested that Mr. Lang revise his letter and submit it to a subcommittee of Councilmember Dwyer and Krebsbach for review and approval. Councilmember Krebsbach stated that she would like to hear from Mr. Milnar. A key to the issue is whether this is a facility that MHAA needs. Mr. Milnar responded that MHAA would very much like to have an ice arena in the city. The hockey program continues to grow and MHAA continues spending money for ice time. He encouraged Council to move forward with the study, stating that MHAA feels it would be an advantage for the city. Councilmember Vitelli stated that he will not support the study funding tonight. The donation of land by St. Thomas Academy is very generous, and St. Thomas Academy and St. Thomas University are excellent institutions, but he must represent all of the citizens of Mendota Heights and does not feel comfortable supporting it now. He felt very strongly that if St. Thomas Academy was very confident that this was break even or better, they would build the arena and ask the city for some form of revenue bond to get a reduced interest rate. Short of that, he feels that if the Academy board felt strongly, they would have come forward with a proposal to the city. If they are convinced the arena would be break even or better, they should support the costs. He would support a proposal for the city to pay one -third of the study cost and St. Thomas Academy paying two - thirds. He did not feel that the study was well enough defined for the city to put forward $15,000 at this time. Also, he felt that at the workshop he would hear about financial and operational aspects but heard nothing. No one has told him how this will likely work, and he cannot support committing tax payers money at this time. Mayor Mertensotto responded that it is unlikely that the St. Thomas Academy Board of 35 members all support the proposal, but there is no other location appropriate for an ice arena in the city. If the city is to every have a hockey arena, this may be the only opportunity. Mr. Matt Kraft, Athletic Director for Henry Sibley High School, submitted a letter on behalf of the school district. He stated that the district has 80 acres of land at Sibley, much of which is included in a Page No. 7 January 15, 2002 joint powers agreement with the city. The district feels that if Council chooses to go ahead with a study, they should consider building the arena on public (school district) property. Mayor Mertensotto responded that most of the 80 acres is occupied with tennis courts or is used by MHAA for ball. He asked where an arena could be placed at Sibley. He further stated that he would like someone from the school district let Council know how much area the high school would give up for development of an ice arena. Council has no knowledge of the district's future development plans for Sibley. He informed Mr. Kraft that Council will accept the letter and if the district wants to make a contribution, they should let Council know what land is available without relocating existing facilities. Mr. Kraft responded that his predecessor was a member of the hockey arena task force. He stated that he does not see any problem about using the Sibley property and hopes that it would be part of the feasibility study. Councilmember Dwyer responded that the feasibility report Council is seeking incorporates the use of the St. Thomas Academy land as a donation. It does not envision an arena at Sibley. The feasibility report would specifically incorporate the land at St. Thomas. Mayor Mertensotto stated that there is nothing to stop the school district from making a suggestion to the city saying that the district has looked at its comprehensive plan and asks the city to consider a hockey arena at the Sibley site. They would have to give information on where it could be located without relocating existing facilities. Councilmember Dwyer stated that Mr. Kraft wants Council to authorize a very broad feasibility study on locating an ice arena anywhere in the city. Mr. Kraft responded that last fall the school district approached the voters for operating money and the referendum failed. The district is certainly not going to approach the voters to ask for an ice arena. If the city is going to spend public money to go forward with the study for building an arena on private land, they should also include consideration of building an ice arena on public land. Mayor Mertensotto stated that Mr. Kraft should give Council additional information, including the school district's long range Page No. 8 January 15, 2002 planning for the school district property. Council is not making any commitment to an arena at this time — until basic information is available, Council is just speculating. Mr. Rob Meyer informed Council that MHAA does not have hockey, but rather that the West St. Paul Youth Athletic Association provides the hockey program for Mendota Heights youth. He asked if anyone has contacted them. Councilmember Schneeman responded that the information the city has received is that 67% of the children in the hockey problem are from Mendota Heights. The task force did talk to the association. Mr. Milnar stated that he is speaking for the MHAA board who made a decision two years ago to join with West St. Paul and co -host the hockey program. About 60% of the children in the program are Mendota Heights residents, and MHAA is speaking on behalf of those kids. The hockey program will remain a combined program with the West St. Paul Athletic Association, and MHAA would like to have an arena in Mendota Heights. He stated that MHAA contributed $44,000 to the hockey program last year. Councilmember Vitelli read the letter from Superintendent Longtin for the audience and stated that Council should take the letter into consideration and at least place a call to him. Councilmember Dwyer asked why St. Thomas would pay anything towards a study that would be for other property. This is the first time Council has heard of any interest from the school district. Council is not talking this evening about a feasibility study that encompasses school district land. Councilmember Schneeman moved to direct Mr. Lang to revise his letter to differentiate between the basic needs and the enhanced needs if St. Thomas University is included in the program and to authorize an expenditure of $15,000 for the feasibility report subject to approval of the letter by a subcommittee of Cotuicilmembers Dwyer and Krebsbach. Councilmember Dwyer seconded the motion. Ayes: 4 Nays: 1 Vitelli Councilmember Krebsbach asked that the school district letter be sent to Springstead Associates for informational purposes. Mayor Mertensotto agreed, but stated that the district has not discussed study funding. Page No. 9 January 15, 2002 INTRODUCTIONS Police Chief Piotraschke introduced new Police Officer Jennifer Hurst to Council and the audience. PUBLIC COMMENTS Mr. Clifford Timm, a West St. Paul resident, was present to express his concern about geese because of the phosphorous they add to lakes. They also pollute golf courses and ballfields and are dangerous to air traffic. He stated that he has asked the DNR to reduce the geese population because people are concerned. Mr. Brian Lueth, from the DNR informed him that people who are concerned should contact him. Mr. Timm stated that the DNR should be the central agency responsible for the geese problem, and that is what he is working on. He described methods available for reducing the geese population and asked if the city can relax its rules regarding discharging firearms in the city. He stated that the city .must come up with something to alleviate the problems. Mayor Mertensotto informed the audience that Mr. Timm has been a substantial benefactor to the city, especially to fishing. He stated that Council appreciates Mr. Timm's enthusiasm. Mr. Timm stated that he would like to give information to the newspaper report for a future article on the geese problem. DODGE NATURE CENTER Council acknowledged a memo from Public Works Director Danielson regarding a request from the Dodge Nature Center for authorization to temporarily move a barn from the Ridder property to the Dodge Nature Center property, with the condition that the nature center make the appropriate planning applications and that the authorization not constitute any commitment to future approvals of the applications. Mr. Dave Napier was present on behalf of the nature center. Mayor Mertensotto stated that his only concern is that the Dodge Nature Center property is zoned R -1 and the center would need a conditional use permit to the barn. Because the barn must be moved in the very near future, the Planning Commission cannot give a timely response. The nature center has indicated it would undertake the risk and move the building early. He stated that Dodge Nature Center must acknowledge that it is a risk on their part and that Council is not making any commitment to planning approvals. Mr. Napier stated that he is asking for Council to approve moving the barn to a temporary location. The Nature Center staff is not sure where the final location would be yet — there are two existing Page No. 10 January 15, 2002 houses and barns on the property, and both of the barns are in bad condition. When a decision is made on which of them should be replaced, the Nature Center will file an application for conditional use permit with the city. He stated that there are two options for a temporary location — in the nature center parking lot near the existing barn on the westerly side of the farmstead or at the easterly side of the property near the existing barn. He stated that parking at the easterly side would be easier and that would be his preference. Mayor Mertensotto stated that he did not think the church would like a barn right next to their parking lot. He felt that the other site would be better. Councilmember Dwyer moved to grant permission to temporarily park the barn at the easterly location until such time as Dodge Nature Center goes through the public hearing process, with the understanding there is no commitment to ftitare approvals. Co-Lincilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 INET Council acknowledged a report from Police Chief Piotraschke regarding the proposed NDC4 Institutional Network (INET) Service Agreement. Chief Piotraschke, NDC4 Executive Director Jodie Miller and Mr. Mike Sokol, the city's citizen representative on NDC4 were present for the discussion. Chief Piotraschke stated that he and Ms. Miller appeared before Council in October to discuss the issue and were directed to provide additional information. He stated that INET has been proposed for quite some time through franchise negotiations between NDC4 and the franchisee. NDC4 is trying to bring all the entities in the franchise together in INET. There are two options for participation: a five year payment plan or up front. In October, he recommended that participation was a good idea and up front payment would be most appropriate. Council members voiced concerns over cost versus benefit. Much of the cost/benefit depends on ftiture planning and what entities want to do with the network, so it is difficult to give concrete figures at this time. He has contacted the State of Minnesota regarding their current charges to the city for data connection versus INET and there has been a positive response that the state would be willing to take some of the money they would save in lease lines and turn that back to the city. The city could direct that to help pay for INET expenses. It is very difficult to positively say what INET will do for the city in the future, but he can Page No. 11 January 15, 2002 say it will increase the capacity the city currently has for data connection to at least gigabyte speed. That is a moot point if all the city does is send email, but where it will be needed for city government is whenever it becomes apparent that video conferencing, and transfer of large GIS data that are now impractical become common place and very practical. He stated that he cannot tell Council tonight everything the city would do with INET next year or the year after or ten years from now, but the fact that the city can anticipate directing some of what it is currently paying each year for connectivity is a positive. The question is whether the city wants to invest in the technology now or wait and chance that it will be more expensive in the future. Councilmember Schneeman asked Chief Piotraschke if he feels strongly that the city needs INET. She also asked if it would be advantageous to the city from a public safety standpoint to have INET. Chief Piotraschke responded that his opinion, as a Police Chief, is that it is always exciting to find new ways to send and receive data and the ability to send and receive large graphics images is enticing. He stated that INET has the potential of benefiting all city departments. The band width the city would have access to would allow staff to do things in all areas of the government that cannot be done today. Councilmember Schneeman asked if there is an approximate cost savings if all of the telecommunications in all of the city's buildings were bundled. Chief Piotraschke responded that consolidating the City Hall phone system with the two other facilities would be expensive because it would be an expansion of the system. The difference between having INET and not having it is that with INET the city would only have to purchase hardware, without it the city would need hardware and would also have to lease lines. Mayor Mertensotto stated that his concern is over additional staffing requirements. The fire department is not staffed now and public works does not have support staff. This is new technology and he was concerned about the staff expense for the new technology. He stated that the city spent $84,000 with the state grant for computer technology for laptops, etc. for the Police Department. That money was well spent. INET is new technology — AT &T will install fiber optics and will charge the cities, and the city would certainly have Page No. 12 January 15, 2002 staffing problems. He would like to see cities that get large Local Government Aid money do this first and Mendota Heights can learn from them. Councilmember Vitelli complimented Ms. Miller for all of her work for the cable commission and for providing answers to the questions Council raised at the last discussion on INET. He also expressed appreciation to Chief Piotraschke for seeking out the benefits. He stated that he is against the proposal for four reasons. He thinks it is a bad financial deal; the hidden costs that will have many cost implications over the next fiver years; there really are no benefits to the residents of the city to justify the expense; and dealing with AT&T. As an analogy, he stated that what AT&T has proposed is like AT&T building him a house at cost. He would be paying for it but AT&T would own it. AT&T will build the fiber optics system at cost, the INET participants will pay for it and AT&T will own it. At the end of 13 years they will charge the city rent. The city will have invested significant money and at the end of 13 years will be captive to AT&T because the cost to move is terrible. He was concerned about the hidden costs. There are some benefits to integrating the phone systems for the three city buildings, but that could cost as much as $ 10,000. The city would have to connect to the INET and would have to buy hardware to connect it at all three buildings. Consultants would be needed to do the connection and help the city select hardware and the city would bear those costs. He anticipated that would cost $25,000. Then the city would have to retain someone to manage the network.. Also, the city does not have the staff to do the types of activities to gain the benefits that were cited. The city could spend $30,000 over the next two years on consultants. AT&T says there are no maintenance costs but if something goes wrong the city will have to pay for it - AT&T is not known for customer service. He stated in summary that the city is looking at an additional $50,000 in costs. He felt that participating in INET is a bad idea. Councilmember Schneeman asked how many other entities could afford to participate because it is very expensive. Councilmember Vitelli stated that his prediction for the ftiture is that the city will not lose any opportunity if it waits three years because broadband costs will go down. Councilmember Kiebsbach stated that she is not prepared to support INET at this time. She felt that the technology will be changing. It Page No. 13 January 15, 2002 was noted at a recent higher education conference she attended that this will be a wireless world in three years. Councilmember Dwyer stated that Chief Piotraschke and Ms. Miller have spent a lot of time and done a good job of putting everything into plain English. He was concerned over timing — he felt it is premature for a city the size of Mendota Heights to jump into leading edge technology. Also, he was concerned about the termination language in the agreement. The city would have the ability to get out of the agreement but it would not be easy and it could be very costly for legal fees. He felt the city should sit on the sidelines and watch the prices in the future and then see what benefit it has. Ms. Miller stated that NDC4 is making sure the cable company meets its obligations under the franchise. Mendota Heights is in a challenging position because it is not in a situation where it has network connections between facilities. Other cities are replacing current costs for connections with INET. Mendota Heights has the challenge of trying to determine what cost savings are versus use . There are two immediate applications Mendota Heights could use that would pay for the network. Besides connecting to 41 sites in the seven city area, the city would have a connection to the State of Minnesota, University of Minnesota, Dakota County, the educational consortium in Roseville and several other governmental organizations. Existing city costs would pay for INET — the connection to the state is T1, and that could be stopped; if the city installed a central phone system, the two remote facilities could be connected. It would cost about $10,000 for hardware to update the phone system and would save $86,000 over thirteen years for the cost of the existing phone lines. Those two uses would pay the total cost for INET. She stated that she is convinced it would be cost beneficial to the city. Regarding Councilmember Vitelli's analogy to the house, she stated that in her mind, the cable company is building her a house at far below market value and she would have no housing costs for thirteen years. At the end of the thirteen years she can walk away if she wants because she has already reaped the benefit for 13 years. She stated that there are 13 entities involved that total 41 buildings. Seven of the entities have approved the agreement and are already going forward. Two have opted out (St. Thomas Academy and St. Croix Lutheran). Four are still pending — Independent School District 917 and three cities. If those entities join, the INET would encompass eleven entities and 39 buildings. If one or two drop out, the cable commission will have to revisit the costs and divide the m up and the entities will have to decide if it still looks like a good idea. If the City Council waits to see, it may Page No. 14 January 15, 2002 not happen. If the others join INET, they will form a user group and manage it. If someone else wants to join in the future, the user group woud have to assess what it would cost to bring them in. She stated that she would assume that the user group would want new comers to pay at least what they paid in the beginning. Mayor Mertensotto stated that the house analogy does not take into account that the city must buy the equipment. Then employees would need to be trained. Lots of people would have to use the INET or it would lose value, and training is not cheap. Ms. Miller responded that the employees would be doing what they are doing now - use of the Internet and the state network used by the Police Department and the telephone system — and would not require additional training. Most likely the state of Minnesota and Intertech will be managing the network. It is very likely that will be provided in exchange for the cost savings the state will receive. They have already committed to discounting either the management or the hardware that needs to be purchased. Chief Piotraschke explained that Intertech is the technology arm of the state. Currently, with the city's state connection, the state owns everything up to the router. From his involvment in the user group, the state wants to transfer the connection to fiber optics. Their long term goal is MNET. Right now if the router goes down in his office it is the city's problem. He stated that he really believes that INET will be handled the same way the frame relay is handled now, and it is his guess that the INET will be managed in the same way. That would eliminate some of Council's concerns about on -going support. Mayor Mertensotto stated that Council must look at what capability the city does not have now that INET would give it. The city is communicating now and there are means of connecting to the internet now. Fiber optics is faster, but that does not mean it is better. Responding to a Council question, Ms. Miller stated that Dakota County, Independent School District 197, Visitation School, the South St. Paul School District, the Inver Grove Heights school district, the City of Inver Grove Heights and Inver Hills Community College have signed the agreement. Councilmember Krebsbach stated that she can see the application for education but it is more of a challenge to see the application for cities. Page No. 15 January 15, 2002 Councilmember Schneeman asked when Council must make a decision. Ms. Miller responded that rather than have Council vote no tonight, she could take time to provide more information on the specifics on the state's involvement for Council to consider. West St. Paul and South St. Paul will be considering INET this month, so there is still time. Responding to a question from Councilmember Kiebsbach about whether the educational community received any legislative funding for INET, she stated they did not, but they are already spending much more connecting their buildings together. They will save money. Mr. Sokol stated that he was involved in the negotiation process for franchise renewal. The cable commission clearly sees a benefit to all the constituents in the seven city area and negotiated INET at cost. This is an opportunity for those who are forward- looking to see what INET can do for them over the next 13 years. The initial cost for fiber optics is $13 million. This is a situation where the city would be leasing a transport device. The city would not own it, and in 13 years it may not be the current or best technology. Right now the city can build upon it and use it as a transport meditun and in the future could go to whatever system is current. The city is currently receiving about $20,000 in returned franchise fee payments each year from the cable commission, and that is expected to continue. INET is a really good use for that money. This is essentially a private network.. Any other vendor who comes in and wants to connect to it would have to join the network. It is a network specifically for the seven cities, it is at cost and significantly less than another vendor would charge. Mayor Mertensotto stated that Council needs to look at how it spends city money and what the city is deficient in. He stated that the matter can be left open. Councilmember Dwyer stated that what concerns him is that the group that goes in for the investment will have some say in what others will be charged to come in in the future. SPRINT UTILITY PERMIT Council acknowledged a memo from Public Works Director Danielson regarding a request from Sprint for a permit to extend fiber optic lines. The memo also discussed working with Qwwest and Excel with respect to future extensions to serve developments in Mendota Heights. Page No. 16 January 15, 2002 Mayor Mertensotto stated that a city ordinance prohibits issuing permits to utility companies that do not have franchises with the city. Council is not interested in charging franchise fee to Sprint at this time, but the ordinance allows the city to enter into a service agreement with Sprint for an extended period of time and reserve the right to charge a franchise fee. If the utility disrupts city streets during installation, they would be required to restore the streets. He stated that the permit could be for ten years with an option to renew to fifteen years. Councilmember Dwyer stated that his only concern is if Council takes no action with the utilities it could impair the ability to deal with other utilities. Council directed staff to prepare a draft contract /permit with Sprint for installation of its lines. LANDFORM FEES Council acknowledged a memo from Administrator Lindberg regarding a proposal from Carolyn Krall, from Landform, for additional funding and continuing professional services for Town Center. Ms. Krall was present for the discussion. Ms. Krall stated that the project continues but she has run out of fees. She reviewed her request for Council for an additional $50,300 contract that would cover her work on the 2001 the Livable Communities application process and application for the 2002 grants; an additional $11,000 appropriation for design guideline development and $14,000 for coordination meetings. Mayor Mertensotto stated that at the last Council meeting, Council discussed that the project has been downsized from $50 million to $39 million. He stated that Council needs to be concerned about the cost of amenities. He stated that he would like to separate the grant application costs from the other items. Ms. Krall responded that she has done that. She estimates that preparing the grant application will cost $10,000. Grant preparation would be under the same contract but would be a separate item. Mayor Mertensotto felt there should be a separate contract. Also, he stated that he spoke to Mark Ulfers at the CDA and he said that he would leave subsidized versus market rate open. He asked how long Ms. Krall will be working for the requested funding. Page No. 17 January 15, 2002 Ms. Krall stated that the contract would take her through the end of the second stage of the PUD submittal process. Mayor Mertensotto stated that the CDA thinks it can get started mid- summer with opening of the senior facility in the Spring of 2003. He asked Ms. Krall if she sees any reason why that timetable cannot be met. Ms. Krall responded that she is still working on the timeline. There is a question of whether the CDA will commit to this project this summer or whether they start it next spring. There are several other projects competing with the city for CDA housing. Administrator Lindberg stated that the CDA has given every indication that they would be ready to go this summer. Councilmember Dwyer stated that there is a reference in the CDA agreement consent calendar item to commencing in 2003. The CDA agreement is silent, but the memo from the City Administrator says that the CDA is interested in moving forward. Administrator Lindberg responded that the CDA have indicted they will be willing to begin this summer if the project continues moving forward as it has been. Ms. Krall reviewed the components of the contract, which are $15,300 for the 2001 grant application, $ 10,000 for the 2002 application and $25,000 to allow her to finish the current work on submittals, coordination meetings and coordination communications through the end of April. It does not include any engineering by Landform. The coordination meetings would be meetings with city staff, engineers, Planning Commission meetings, Council meetings, public presentations, etc. Councilmember Krebsbach stated that she is concerned about having approved something and then changing it. Ms. Krall responded that if there is another significant change on the part of the developer or the city, that would cost more money. Mr. Feffercorn is not making any plan changes at this point. The plan will be before the Planning Commission for hearing, and there may need to be a workshop. Page No. 18 January 15, 2002 Councilmember Krebsbach stated that she would have preferred that the changes that were presented to her and Council at the workshop were presented at a regular meeting. Ms. Krall responded that what was discussed at that workshop was developer modifications. She felt that if the developer came forward with any changes he should bring them to Council at a workshop. Mr. Feffercorn would like to have more units and she has not been willing to address that because she feels it is a significant change. If Mr. Feffercorn wants additional plan changes or if it is something he does that causes delays, she will notify Council. Councilmember Dwyer moved to approve the request for an increase of $25,000 in budgeted items for ASA 1, and increases in ASA 2 of $15,300 for work done on the 2001 Livable Communities Grant application and a separated budgeted item of $10,000 for the 2002 grant application. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 ADJOURN There being no further business to come before Council, Councilmember Krebsbach moved that the meeting be adjourned to closed session for a performance evaluation for the City Administrator. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 10:11 p.m. K thleen M. Swanson City Clerk ATTEST: - A�'4 -9. Charles E. Mertensotto Mayor