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2001-07-24 City Council minutesPage No. I July 24, 2001 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, July 24, 2001 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 Krebsbach moved adoption of the revised agenda for the meeting. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Vitelli moved approval of the amended minutes of the regular meeting held on July 10, 2001. 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 5e, Marie Avenue improvements and 5h, Fairfield Inn sign, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the Treasurer's monthly report for June. b. Authorization to advertise for bids for the 2001 Slurry Seal Project. c. Authorization for consultant Carolyn Krall (Landform) to complete the draft Town Center Design Guidelines. d. Approval of the list of contractor licenses dated July 24, 2001. e. Authorization for the issuance of sign permits to Nordquist Sign Companies, Inc, for United Properties for a monument sign for the Mendota Office Center, and modification of an existing sign Page No. 2 July 24, 2001 and individual sign letters (building south side) for tenant signs at 1230 Northland Drive, for Agere Systems. f, Approval of the List of Claims dated July 24, 2001 and totaling $1,124,430.88. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 MARIE AVENUE OVERLAY Councilmember Krebsbach stated that at a workshop she raised a question about the street mix that is currently being used in street sealing and overlay projects. She stated that she understands that the mix used is the Mn/DOT specification, but the streets do not seem to be holding up. The middle of streets where slurry has been done are beginning to show gravel and are patchy looking. She stated that she would like assurance that the street mix used for Marie Avenue and future overlays and for the slurry seal projects return to the mix used several years ago. She noted that residents are beginning to ask for overlays on streets that have recently been done. Councilmember Vitelli stated that he has looked at the streets since that workshop and agrees with Councilmember Krebsbach. Engineer Mogan stated that the mix design of the asphalt that is being used now has been used for at least the eight years that he has worked for the city. The problem is related to the slurry seal and plowing operations. His memo to Council briefly addresses the issue and the need to modify the city's snowplow settings or practices so that the plows are not so aggressive on the street surface itself. Remedial work will be done inider the slurry seal project where damage has occurred. Mayor Mertensotto stated that he believes the final bituminous mix used for street reconstruction projects has a larger sized aggregate in it, and when it is rolled down you can see the aggregate on the surface rather than a smooth surface. While it may hold up well, it has a bad appearance to begin with if the aggregate is already showing on the surface as it is rolled down. He stated that all of the driveway aprons and perhaps the driveways done with the Rogers Lake area project have the same mix as the street and people think, it is not as good a job. In one to two inch overlays, the size of the aggregate becomes more important, because what you see is the aggregate. He stated that when the highway department goes over concrete, they use a very fine mix. Page No. 3 July 24, 2001 Councilmember Dwyer asked if there is anything unsound with the roads or if this is a cosmetic situation rather than functional. Engineer Mogan stated that sometimes the asphalt mix segregates as it gets towards the end of the load in the applicator, so it may look a little different but he does not know how to solve that problem. Mayor Mertensotto stated that Council is not asking for a solution tonight but suggested that Engineer Mogan to contact the suppliers or other cities to see if they have notice that there is a difference in the wear surface when a larger aggregate is used or when the final coat contains more aggregate. Councilmember Schneeman noted that the city is not offering driveway replacement as part of the project, but property owners can contract separately with the city's contractor if they desire. Councilmember Vitelli moved adoption of Resolution No. 01 -40, "RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR MARIE AVENUE MILL AND OVERLAY PAVING PROJECT (IMPROVEMENT NO. 2001, PROJECT NO. l). , Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 FAIRFIELD INN SIGNS Council acknowledged a memo from Assistant Hollister relative to a request from the Tharaldson Development Company to relocate the existing Fairfield Inn entrance sign. Mr. Dan Ordal was present on behalf of Tharaldson. Mr. Ordal showed a photo of the facility, which showed that most of the entrance sign is obscured by trees. Mayor Mertensotto stated that Tharaldson originally requested moving the sign to the other side of the inbound access lane, which is about a I 1/2 foot concrete strip. He stated that the sign is six feet tall, and it seems that the proposed location would be an improper place to put a sign because it would hide cars backing out. The problem is that the evergreen trees that hide the sign belong to the Marriott. He suggested authorizing Tharaldson to move the sign forward ten feet, which should be more than adequate for visibility. Page No. 4 July 24, 2001 Public Works Director Danielson stated that he visited the site today and placed stakes at the forward location and took photos. Mayor Mertensotto stated that at this location, the farthest point of the sign must be at least ten feet from the property line — it is not placed 20 feet back. Council could grant that authorization, and if it is not satisfactory to the Tharaldson Management, they can apply for a variance. Councilmember Dwyer moved to authorize Tharaldson Development to relocate the Fairfield Inn entrance sign ten feet further north, so that the most northerly most part of the sign is no closer than ten feet from the property line. Co-Lincilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS Mr. John Simplot, 1040 Douglas Road, was present to express his concern over safety on the trails. He stated that he has diabetes and two artificial hips and must exercise. Several times when he has been walking, bicycles have come roaring by him and most have not given him the courtesy of saying they are coming on the right or left. Sometimes they come in pairs behind him and youth on skates come behind him. There are caution signs in some of the metro parks that ask bicyclists or skaters to alert walkers if they are trying to pass them on their bikes or skates. He asked that signs be placed in strategic locations along the trails. Mayor Mertensotto stated that perhaps the city could install signs at the entrance to city parks. He asked Assistant Hollister to place the matter on the Parks and Recreation Commission agenda. Mr. Simplot also asked that a notice be placed in the next city newsletter. HOCKEY TASK FORCE Council acknowledged the Hockey Task Force Final Report and REPORT an associated memo from Administrator Lindberg. Mr. Larry Craighead, chair of the task force, and task force member and former Mayor Robert Lockwood were present for the discussion. Mr. Craighead gave a brief history on the task force initiation and on the hockey arena issue. He reviewed the objectives that Council had set for the task force . He also briefly reviewed the discussions and presentations made at the six task force meetings. St. Thomas Academy needs 500 hours of ice time. There are about 1600 to 1800 Page No. 5 July 24, 2001 rentable hours of ice time for such a facility. Henry Sibley High School's needs are already met by existing facilities. Mr. Craighead informed Council on the Eagan Parks and Recreation Director's presentation to the task force on financial information on the Eagan facility. The task force also received a copy of a Springsted Report done for ISD 276 regarding ice arenas. The information received from Eagan, West St. Paul and Springsted regarding costs and revenues were very similar. Mr. Craighead stated that if there is to be an arena, the committee feels it should have one sheet of ice with the potential for a future second sheet, and seating for approximately 600 people on one side of the arena. It would be similar to the West St. Paul facility and would probably cost about $3 million excluding land. The committee received memos from MHAA and from West St. Paul. The committee also asked city staff member Guy Kullander to prepare a study on costs for an adult sized soccer field and a baseball field. The committee would like a soccer field and baseball field to be included in addition to a hockey arena to serve the entire committee. The city currently spends about.$359,000 annually on parks and recreation (about 10% of the city budget). There is another 10% on annual bonding costs for past park improvements. Mr. Craighead reviewed typical ice time needs. There is little need for ice time in the morning. Between 3:00 p.m. and 6:00 p.m., high school programs rent ice time. Youth hockey is typically between 6:00 and 10:00 p.m. the committee feels that St. Thomas Academy would fill up the 3:00 to 6:00 time block and MHAA would fill in the 6:00 to 10:00 p.m. time block. Adult hockey typically would occur after 10:00 p.m. Weekends would be youth hockey and free skating. During the summer time, there would be little ice time rental. The schedule from October 1 to mid-March would generate the 1,800 hours of ice time. The facility would serve Visitation and St. Thomas and MHAA, for about 1,200 hours of ice time. The remaining ice time would be harder to sell, and the committee would like to see St. Thomas and the MHAA be part of the plan to help rent that additional ice time. Councilmember Dwyer stated that Council's mission is to serve the people of Mendota Heights. He asked how many youth who skate for Visitation and St. Thomas live in Mendota Heights. Mr. Craighead stated that the committee the city should be as receptive to anyone coming to the city requesting services like this. About 250 children who live in Mendota Heights are involved in the Page No. 6 July 24, 2001 West St. Paul/ Mendota Heights youth hockey program. About 25% of the St. Thomas students are from Mendota Heights and West St. Paul. He did not know how many of the varsity team live in Mendota Heights. Mr. Tom Wilhelmy, 1017 Windwood Court, stated that from 1996 through the 2000 season, there were about 32 to 34 boys on the varsity and junior varsity combined. During that time, between 30% and 60% of the boys were from Mendota Heights. Councilmember Dwyer stated that Council needs to identify as a starting point the number of people from Mendota Heights who would be using this facility. Councilmember Krebsbach stated that it is important to note that St. Thomas is one entity and the other is MHAA, and MHAA is not intended to be a feeder system for St. Thomas. Mr. Craig head stated that there would be public open skating on weekends, open hockey skating on weekday mornings, and figure skating lessons. He felt that those programs would attract primarily Mendota Heights residents. Responding to a question from Councilmember Krebsbach, he stated that if there is a local figure skating group, they would have access to ice time. Mr. Craighead reviewed the task force recommendations. The committee was generally supportive of the proposal to construct the facility. The land that St. Thomas would be contributing should only be part of the mix in the proposal that would help finance the program. There should be a significant cash contribution over a several year period of time to help pay for the costs for the arena for St. Thomas use. St. Thomas should help to pay for some of the risk of the non-prime time ice hours if they are difficult to sell, and there should be a commitment from St. Thomas to help support those hours. The committee felt that the feelings of the residents of Mendota Heights are that there should be more athletic facilities in the city and that there should be sufficient recreation opportunities for all residents of the city. The committee felt that MHAA should be part of the program and should make a long-term financial commitment in helping to pay for the facility. (In the reports from the other cities, both the youth hockey and the cities and the users of the facility have helped immensely in paying for their share of the ice time.) The task force feels that a soccer and baseball field should be included in the proposal to round-out the package and address some of the other cities needs — having adult sized soccer and Page No. 7 July 24, 2001 baseball fields. The committee feels the facility could be financed by general obligation bonds. He reviewed the projected per- household costs for $3.5 million and $5 million in bonds. Mr. Robert Lockwood stated that he was asked to speak, by the task force, perhaps because he has lived in the city since it was a township, has had experience in governance and someone who has had no sons in his family to participate in football, baseball or hockey and thus would perhaps champion the cause of people who have no interest in hockey. He felt that there are enough people in the city who would take an altruistic view of what is being proposed and who would think that a reasonable increase in their taxes to pay for such a facility might be warranted. From his perspective, the bottom line would be something in the order of an additional $25 to $35 of extra annual tax to the city. He did not think a bond issue election would pass or that the proposal would be at all feasible at all if it were to cost people $ 100 per year in additional tax. The idea of a single facility adding 10% to the city's net tax levy for just one type of recreation is not a reasonable figure. He stated that he would support the urging of contributions of cash from interested organizations. Councilmember Schneeman asked Mr. Lockwood how he feels about the addition of the soccer and adult baseball fields. Mr. Lockwood responded that he is not in a position to know whether they are necessary. He stated that he has been told there is a shortage of soccer and baseball fields but also that he has talked to one other person in the city who feels the existing fields are adequate if they were efficiently used, and that they are not now efficiently used. Financially, he felt that the size of the bond required to cover everything would not fly unless there were a monstrous infusion of donations. He stated that he still remains interested in seeing the project go if at all possible, if it can be made to work somehow but it would take some extreme generosity and ingenuity. Mayor Mertensotto, commented that Mr. Lockwood, as a former Mayor of the city for ten years or more, has a good feel for the financial capability of the city. He noted that in comparison to the other communities, the city has about 11,000 residents and a land area of about 11 square miles, so it is very difficult to look at the city's budget and population and present a proposal for a tax increase of $100 per year. Council must also be very careful about whether the city is in a position to commit $50,000 to $100,000 in operating costs per year. The city does not receive local government aid like Page No. 8 July 24, 2001 neighboring cities and will have no budgeting leeway and will be restricted as to the amount of tax increase that can be generated. Council may be looking at a tax increase this fall because the city will no longer receive $475,000 in HACA aid next year. The net affect of the recent changes in the tax laws is that the city's tax capacity has come down. Hopefully the increase in tax capacity due to new construction and remodeling will make up the reclassification deduction. It appears that in order to meet ordinary inflation in the 2002 budget, Council will have to increase taxes. The concern is the ability to handle future debt. The cheapest part of any project is to build the structure: it is the cost of operating it after that that is a concern. Councilmember Dwyer stated that the governor's office indicates that property owners will experience a tax decrease, but whether that decrease will wash with the losses that Mendota Heights will experience. If residents' tax bills are reduced by $500 or $600 a year because of the recent legislation, perhaps people will be more willing to approve a referendum if it means $75 to $ 100. He suggested that the only way to know is to conduct a referendum. Mayor Mertensotto stated that financing could be either through a referendum or revenue bonds. There are possibly other ways to finance the facility that have not yet been explored. He felt that adult ball fields are needed, but that would have to be separate from any issue. St. Thomas has offered 9 acres of land to the city on a 99 year lease on the basis that the city would build the facility, parking lot, etc., and St. Thomas would operate it but would not underwrite any operating debt. The city would have to undertake that responsibility. One possible way to finance the project would be for a separate non- profit organization acquire land in the city and come up with significant donations. The city could perhaps issue a revenue bond for the non-profit and would guarantee the operation, or take it over, if the non-profit could not pay the financing. The city would then acquire ownership. He noted that the Springsted report indicated that the five arenas that are operating in Dakota County, are seeing a decrease in the demand for ice time because the competition is now so great. Councilmember Dwyer stated that the committee did an outstanding job and what they have said is that if the city enters into the arrangement with St. Thomas they must go into it with eyes wide open and it must be understood that this would be a money-losing deal. If the facility is shut down for six months of the year, breaking even would probably be the best year, and operating expenses would Page No. 9 July 24, 2001 be on top of the annual cost of the bonds. The city gladly pays the operating costs of the existing park facilities because they benefit the entire community. He pointed out that not only the hockey players will benefit from an ice arena, their parents and families will benefit as well. Councilmember Vitelli stated that the task force report is outstanding, and he complimented the task force. With regard to St. Thomas participation, he stated that it appears that the Academy benefits outweigh their contribution. Some of the benefits are that they have no participation in operating deficit, right of first refusal on ice time and right of first refusal if the facility is ever sold, and no cash contribution to the investment other than the land. He expressed disappointment in the contribution effort by St. Thomas. Also, he noted that the Eagan athletic association contributed half a million dollars to the Eagan facility, and the Minnetonka athletic association contributed $1.5 million, but MHAA is offering nothing. The report is short in that it recommends the baseball and soccer fields but gives no compelling reason they are needed. Parks and recreation expenditures were given for ten cities. He stated that he took the budgets of those ten cities and divided them by the population. The per capita expenditure is the fourth highest of the ten communities in investment in parks and recreation. If the city were to go ahead with the proposal, the per capita expense would exceed the other cities. Mr. Craighead responded that he does not know if the bonding for the other cities is included in their costs. The Mendota Heights figure includes existing bonding costs. Until it is known whether bonding is included in the other cities' numbers, no conclusion should be drawn. If Council wishes to proceed further, that information should be known. Councilmember Vitelli stated that Council should assume that levy limits will keep the city's budget about the same this year, and if Council went along with the proposal for the arena, Council would have to cut $80,000 from the existing parks and recreation operational budget. That would be about 22% of their budget. He did not feel that the $5 million bond issue would be acceptable. Lease /purchase bonding s not a good idea because it bypasses the tax payers and the full cost of debt service on that bond would have to be absorbed in the current operating budget and would wipe out the entire parks and recreation budget. The only proposal that would come close would be a $3.5 million general obligation bond where St. Thomas would accept a $280,000 or $300,000 lease back of the Page No. 10 July 24, 2001 facility. The city would be using its borrowing power to help St. Thomas and St. Thomas would pay the $280,000 to $300,000 per year and would have and run the facility. He stated that he cannot support the proposal as it was submitted for a $5 million investment and $75 per residence and could not even support going to a referendum for that. He could support a proposal that would contain the following. A proposal where the adult baseball and soccer fields are eliminated. Secondly, he felt that if a $3.5 million arena were built using a general obligation revenue bond and St. Thomas paying a $280,000 to $300,000 lease back and a result of zero impact to tax payers, that would be acceptable. He also felt that MHAA should be thinking of contributing $250,000. He felt that Council should be striving for a zero tax impact to the tax payers of Mendota Heights. Councilmember Krebsbach commended Chair Craighead for his leadership and the task force for its work- She noted that Council selected task force members who were interested in hockey. She applauded the task force for coming up with a report that moves toward the center and gives Council a basis on which they can take a look at it as opposed the city taking the responsibility for operating costs and debt service. She stated that her position is comparable to the report in that St. Thomas should contribute to the initial building of the city and the city should not be responsible for the operating costs. She felt that Council's responsibility is to the children in the athletic association and St. Thomas has brought forth a way for the city to have a hockey arena. While St. Thomas is a valued part of the city, Council is responsible to provide a range of athletic facilities to the community. She was also interested in the fact that the arena might serve other skaters as well. Mr. Lockwood stated that he had asked Treasurer Shaughnessy to explain some items in the financial portion of the report. Treasurer Shaughnessy pointed out that the report stated that the standard number of hours that an ice arena would operate in a year is 1,600, but 3,000 annual hours of operation would be required to make the facility pay for itself. Treasurer Shaughnessy stated that it would take 3,000 hours to support the cost of a $5 million issue. He stated that the city can levy tax and pay general obligation bonds for debt, but that the legislature recently imposed a new levy limit, and without the ability to have a special levy for bonds, the city is out of business for paying any of the other costs of the facility. Page No. 11 July 24, 2001 Mr. Frank Lang expressed his appreciation for the task force and Council's efforts. He stated that most cities are moving to better free skating programs and will find that arenas are not just for hockey. This would be a multi - purpose program and would not be just for St. Thomas. He did not believe that any city that has a hockey arena that would remove it. The facility will be an asset to the city. St. Thomas paid cash for the land, and there is $1.5 million in real value for the land. He stated that the Springsted report motivated Minnetonka to build a $6 million facility. Mayor Mertensotto responded that Minnetonka is a much larger city with greater revenues. The information in the Springsted report pointed out that Council must know where it is going. There must be demand for the facility. Henry Sibley has indicated that they would like to buy more ice time, not that they need it. St. Thomas expressed a limited need. He stated that no one has come forward in the city to say that they need 250 — 350 hours of ice time for their students and cannot find it anywhere. That would put things in a different perspective. A big factor in budgeting is that the city does not receive LGA and must be very careful. He asked if St. Thomas would be willing to sell enough land to the city to build an ice arena. He stated that, exclusive of the land, the city would have at least a $3 million expenditure. He pointed out that ice making equipment, etc., could last up to ten years, and replacement would be very expensive. Selling ice time is not enough. He stated that if a non -profit could come up with up front money and find a parcel of land, then the city might consider building an arena. More than likely, St. Thomas could operate the facility at less expense than the city. Mr. Lang asked for the opportunity to find a feasible way to work things out and build the asset for the city and St. Thomas. He stated that he and the youth hockey people have the energy to do that. Councilmember Dwyer stated that Council must figure out what to do next. The task force has done a great deal of work and this is a compelling issue. Councilmember Vitelli stated that he raised several points earlier in the discussion. He encouraged Mr. Lang to pursue along those lines and to try to get some money from the athletic association. Mayor Mertensotto stated that the land component must be separate from St. Thomas Academy and the city would just be building the arena and the parking ramp. One question would be what the Page No. 12 July 24, 2001 location would be, and another would be what money can be generated as a contribution up front. Councilmember Krebsbach asked Mayor Mertensotto if he could see a separate non-profit being formed that would own the arena. Mayor Mertensotto stated that would be a possibility, with the city underwriting the bonds in order to keep the interest rate down. There could be a separate joint powers agreement if St. Thomas did not have a reversionary interest back in the real estate, but St. Thomas would not have contributed the $1.5 million (land value) in real money. There could be ajoint powers agreement for operating the facility. Those issues could all be worked out later. Councilmember Schneeman stated that she read in the report that the manager of the Eagan facility came before the committee and stated that it relates to the philosophy of the community. She stated that she sees many young people driving all over to take their children to hockey and soccer. She felt that was an important issue. She also felt something can be worked out and that adding a soccer field is important. She commended the task force for its work. Mayor Mertensotto stated that it would be fool hearty to go to the electorate with a $5 million referendum. Mr. Lang stated that he would like to see if he and others can use some creativity to try to make this work. He asked that the discussion be continued. Mayor Mertensotto stated that the task force has not offered to continue on. Mr. Lang can work with any members of the committee who wish to do so. Councilmember Dwyer noted that there is a consensus that there needs to be a great deal more work done on the issue if it is to be something that Council can support. Mr. Craighead stated that there are professionals who could come in at this point and look at the issues and the financing in greater depth. WMO PLAN Council acknowledged a memo from Engineer Marc Mogan regarding the second generation Lower Mississippi River Watershed Management Plan. Ms. Karen Chandler, from Barr Engineering, was present to give Council a brief overview of the plan as it relates to storm water resources in Mendota Heights. Page No. 13 July 24, 2001 Ms. Chandler reviewed the history of the WMO, a history of the 1989 plan, projects that were completed under that plan. She then reviewed the new plan, the role of the Lower Mississippi River Water Management Organization, plan implementation, city responsibilities and plan implementation costs. Cities will continue to be the permitting agencies, and the WMO will assist with intercommunity runoff and water management issues. She reviewed plan implementation highlights. The WMO felt that it should focus on trying to improve the quality of the storm water runoff that is reaching the river to try and help keep it and feeder streams clean. The city responsibilities through the plan include city preparation of revisions to the local watershed management plan; management of non - intercommunity water bodies, monitoring resources, maintenance of storm water systems, development of an erosion and sediment control ordinance and protection of wetlands. She reviewed the costs of implementing the plan. A general fund is used for administrative expenses. Those funds come from the cities. Costs can be split based on tributary area, allowable flow and relative phosphorus loading. Administrative tasks include reviewing city plans, revising the Joint Powers Agreement, etc. The annual general fund dues for the whole organization in 2000 were $60,000. In 2001, the dues are $30,000. In 2000, Mendota Heights paid $8,600 and in 2001 the dues from Mendota Heights will be about $4,300. The administrative activities will go down over the years, but other costs will be higher — such as runoff monitoring modeling. Those were to be paid for according to tributory watershed. The water quality studies will be done over five years, and the Mendota Heights share is projected to be between $44,000 and $81,000 in 2002, $19,000 to $37,000 in 2003, and under $1,000 from 2004 through 2008. Because there is a lot of good information available for Mendota Heights, the lower costs ($44,000 and $19,000) are likely. She discussed the costs with the treasurer of the WMO and a couple of things could happen: the costs can be spread over a longer period of time, or the WMO could act as a bank. Mayor Mertensotto asked if the federal government involvement in funding. He pointed out that the federal government is concerned about the Mississippi River water quality from St. Louis all the way to St. Anthony Falls. Ms. Chandler responded that the WMO can pursue outside funding, whether it be the federal government, the Corps of Engineers, the Metropolitan Council or the PCA. Page No. 14 July 24, 2001 Mayor Mertensotto pointed out that the WMO would be trying to clean up the river and the federal government should not put the costs on the city. Responding to a question from Councilmember Vitelli, Mayor Mertensotto stated that the city has no choice about whether to participate or to spend the money. Councilmember Vitelli asked what the cost impact is to Mendota Heights residents. Public Works Director Danielson responded that several years ago the city established a storm water utility fiend, and each property pays a quarterly fee along with their sewer bill. That fund would be used to pay the bill. City Attorney Schleck stated that if the city chooses not to do this, the county can do the work and impose a special levy on the city. Ms. Chandler stated that each year the organization goes through a budgeting process. The board is currently made up of city staff members who take a very careful view of the effect on city taxes, and there are ways that the costs can be spread out or that the work can be reduced. Councilmember Vitelli recommended that Ms. Chandler recommend to the board that the expenditure plan be reduced by half or 60 %. Ms. Chandler informed Council that the WMO attorney is currently working on a revised Joint Powers Agreement that will be before the City Council at the end of the year. The current agreement expires at the end of this year. Councilmember Krebsbach stated that she serves on the AMM board and there is a lot more interest in watershed districts in the region Ms. Chandler is from. The Mississippi is a federal water way, so perhaps the city has less interest that Ms. Chandler might find in other communities. Councilmember Vitelli informed Ms. Chandler that the city will likely be impacted by a levy limit and will also lose nearly $500,000 and there is no way to increase the WMO expenditure. The board must cut out at least 50 %. Council thanked Ms. Chandler for her presentation. Page No. 15 July 24, 2001 CASE NO. 01 -26, KRAVITZ Council acknowledged an application from Mr. Gary Kravitz and Ms. Anna Shore for a wetlands permit to allow application of an erosion control net within 100 feet of a creek at 739 Knollwood Court to reestablish of vegetation on a slope located between the home and the creek. Council also acknowledged associated reports from staff and from the applicant's consultants. Mr. Steve Getty, from Getty Construction, and Ms. Shore were present for the discussion. Ms. Shore showed photographs of her property. She stated that she is not asking for financial assistance in stabilizing the area of her back yard that washed out last year. She stated that she has had several conversations with city engineering staff at the time of the washout. Ms. Shore reviewed the site plan for her property. Responding to a question from Mayor Mertensotto, Ms. Shore stated that the material that fell down was not supporting anything and was mostly loose fill area. The footing of the house is sitting on a wall. Councilmember Krebsbach stated that this goes to the same issue as the Berg property. She asked to what extent Council is capable of making this decision. Mayor Mertensotto stated that Council does not have that capability. The report the applicants got from GME consultants included a disclaimer that professional judgment is required in coming up with a solution. Council does not want the applicants to come back in the future if this fails and say that the city should never have approved a wetlands permit only to find that this is not the solution to the problem. Council does not have the professional judgment to do that. While Council has jurisdiction to grant wetlands permits and does so if the criteria are met. In this case, there is a slope problem into a wetlands area, and that is what wetlands permits are all about. Council has the authority to allow the applicants to bypass the Planning Commission process in order to expedite repair of the slope. He stated that the resolution that was drafted should be revised to contain a provision that the owner is fully aware that the city has the jurisdiction to grant the permit but lacks the professional judgment to determine as to the merits of the project. Then the applicants would know full that Council is not telling them that the city has reviewed the engineering drawings and this will work. The applicants must be fully aware in asking for this permit that the city does not have the professional judgment to determine the merits of the project. Page No. 16 July 24, 2001 Ms. Shore agreed that the condition is satisfactory and stated that all they want to do is repair their back yard and it has never been their intent to ask for city determination that the project will work. Mayor Mertensotto stated that the resolution must be amended to include a whereas stating that the applicants, being the homeowners of the property at 739 Knollwood Court are fully aware that the city has the authority to grant the wetland permit and bypass the public hearing required at the Planning Commission but that the city fully discloses that it does not have the professional judgment to determine the merits of the applicants' project and to that extent the city cannot grant any assurance that this project will stabilize the slope. Councilmember Dwyer pointed out that the city disclaims any liability arising form the project. As a point of discussion, Councilmember Krebsbach stated that Council is in no way looking at the aesthetics. She asked what responsibility the city has with regard to aesthetics. Councilmember Schneeman pointed out that the property backs up to the falls and no one will see it. Ms. Shore responded that the fence is designed to allow the vegetation to grow through so that the root structure will establish itself in a very short time. Councilmember Vitelli moved adoption of Resolution No. 01 -41, "A RESOLUTION APPROVING A WETLANDS PERMIT FOR 739 KNOLLWOOD COURT," as amended. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 MENDOTA SCHOOL Council acknowledged a request from Mendota Elementary School PLAYGROUND EQUIPMENT Principal Steven Goldade for city financial assistance for upgrading the playground equipment at the Mendota Elementary School. Council also acknowledged an associated report from Assistant Hollister. Mr. Lenny Axelrod, a parent and member of the Mendota Elementary playground committee was also present. Mr. Goldade stated that the school has gathered parents and district staff to come up with a comprehensive plan on what they would like to do to finish the school site over the next one to 20 years. They Page No. 17 July 24, 2001 worked with the architect firm TKDA and came up with an elaborate plan, but he and others are here tonight to talk with Council with one small piece. There is a playground to the north of the building that is used by the students during recess and also by the community. Families come up and play at the playground over the summer months. It has been 8 to 10 years since the playground has been updated, and the group has spent nine months talking about safety, handicapped accessibility and what would be fun for students and community members. They have come up with a plan to purchase about $22,000 worth of playground equipment from Earl F. Anderson Equipment to tie into what already exists. He reviewed the highlights of the proposed playground. This is a joint effort between the district and the PTA, which has done a major part of the Rindraising. The total cost will be about $32,000. The school district will fund $8,000. The PTA has donated $26,000. Mayor Mertensotto stated that the school has asked the Parks and Recreation Commission to recommend contributing $8,000 from the Special Park Fund, yet funding already exceeds the playground costs. He asked what that would go for. Mr. Goldade stated that the Park Commission stated that they would ;- want the money to go towards equipment. They recommended a f third of the equipment cost up to a total contribution of $8,000. Right now, the equipment cost is $22,666. The $2,000 that is left over would be used for new blacktop. Cotuncilmember Dwyer pointed out that the total cost is $32,000 and funding is $34,000. Mr. Goldade stated that the total cost is not $32,000. $6,000 was spent for consultants and that was funded through PTA contributions. In addition, the re will also be new blacktop to the north of the building, costing $5,000. There is $2,000 needed to remove the old equipment, and $1,000 needed for new pea rock.. The school district is paying for those costs. The total cost is $40,000. Councilmember Krebsbach stated that Council needs to know why the school needs $8,000 from the city. Mr. Goldade responded that the students who attend the school are members of the community, and they are also using it after school time. The city contribution would only go towards equipment, since that was the Park Commission condition. Page No. 18 July 24, 2001 Mayor Mertensotto stated that if Council adopts the commission recommendation to spend $8,000 out of the special park fund, the city would require that the money not be paid until the project is complete. Councilmember Dwyer pointed out that the recommendation was $8,000 or one-third of the cost of the equipment, whichever is less. Mr. Goldade stated that the current bid for equipment is $22,666, so the school would be asking for one-third of that. Responding to a question from Councilmember Schneeman, Mr. Goldade stated that Mendota School houses the district's Autism program and another special program called the MMI program, and there are about 25 students in both those programs. The play equipment is geared to those children as well. Councilmember Dwyer moved to authorize an $8,000 expenditure from the Special Park. Commission with the condition that the $8,000 be a contribution towards playground equipment for installation at Mendota Elementary and that the school district be entitled to reimbursement from the city upon completion and certification that the project has been completed. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 DRAFT ORDINANCE, Council acknowledged a memo from Assistant Hollister regarding TREATMENT FACILITIES a proposed amendment to the Zoning Ordinance to create a conditional use for residential treatment facilities in the B -1 Zone. Council also acknowledged a letter from City Attorney Dan Schleck and the proposed amending language. Councilmember Krebsbach stated that she wants to be sure how the property is guided in the Comprehensive Plan so that the city is not spot zoning. Attorney Schleck responded that the property is guided LB-PUD. The definition of LB-PUD states that all the conditions of B -1 must be met. The reason Haven Chemical is not seeking rezoning to LB- PUD is because five acres are required for a PUD. The city does not want them to have to go through the variance process on the PUD since the conditions are the same with respect to B -1 and LU-PUD. Page No. 19 July 24, 2001 Councilmember Krebsbach stated that she has two concerns. One is that the city has a tradition of not spot-zoning, and she wanted to confirm that this is not spot zoning.. She stated that Council received and rejected a proposal for a Holiday gas station at this site in the past, partly because there was not enough space there for a gas station. She wanted to make sure that by rezoning to B -1 Council would not be implementing a change that would have longer range implications for that part of the city. She was concerned that at some point someone would come in with a gas station proposal and by rezoning to B-I Council might be laying the groundwork that would allow that type of facility. Attorney Schleck stated that is definitely a concern. One of the things that he tried to do is address the fact that the property is actually guided for B-1 businesses. The way case law has gone recently on zoning is that zoning is not supposed to guide the guide plan, the guide plan is supposed to guide the zoning. Because it is guided for B-1 businesses now, the thought was that in developing the comprehensive plan the intent was to have this part of the city be B-I rather than B-Residential. Councilmember Krebsbach noted that Mayor Mertensotto was on Council when it received a proposal for the Holiday gas station. She asked him to speak to that issue. Mayor Mertensotto stated that the problem is that it is a limited amount of land area. Also, there are some constraints from an infrastructure standpoint. By statute, Council is obligated to permit this type of facility in an R -1 District. Councilmember Krebsbach stated that she understands that the comprehensive plan takes precedence, but she wondered if there is another way to allow this as a permitted use other than recognizing this as a B-1 Zone. Mayor Mertensotto responded that the homes that are there now will not serve a residential purpose any more. There are three homes on Condon Court. The treatment center will be in the Condon home, and Bjorklund Construction is running its business out of another of the homes. Bjorklund had asked for rezoning of its property to B-2 or B-3 to allow a gas station and convenience store. They needed parking and utilities and a 40 to 50 foot tall sign. Councilmember Dwyer pointed out that traffic congestion was a chief concern. Page No. 20 July 24, 2001 Attorney Schleck stated that the property is guided for LB -PUD, limited business, and everything that is eligible in a B -1 district is eligible in a LB -PUD district. It is important to note that the instruction he received from Council was to look at this and develop an ordinance so that treatment centers could be a conditional use in some type of zoning area so that a facility like this would not have to go through the variance process. It is a fundamental question for the Council on whether they want this to be a conditional use in all R -1 districts in the city or within the B -1 district, which is what the property is guided for. Councilmember Krebsbach stated that her first interest in an ordinance was for a process that would give some protection in residential areas for residential treatment facilities. The more she thought about this, her concern switched to initiating this as a B -1 district. Council must be aware that in fact it would be beginning a process, with no recourse other than to change the guide plan so that the city would not end up with a convenience station at that corner. That would not only impact the schools but would also impact Bridgeview Shores. Mayor Mertensotto stated that a convenience store /gas station would never work given the close proximity to the intersection of Dodd and Mendota Heights Road. That would be a chaos from a traffic standpoint. Somewhere in zoning, Council must provide for residential treatment The City Attorney felt that it would be best to put residential treatment as a conditional use in B -1. He stated that he reviewed and amended the language prepared by Attorney Schleck and added a violation provision. Although the people who bought the property are professionals in treatment, they could sell the property to investors and just be consultants and end up with a group home for ten adults. That is the advantage of the conditional use process. He reviewed the conditions stated in the draft amendment. Councilmember Schneeman was concerned about the condition that no one stay in the facility longer than 30 days. She asked what would happen if circumstances change and 45 days become the norm for treatment rather than 30 days. Councilmember Dwyer stated that the treatment facility could ask for an amendment. He asked how the city monitors how long people are at the facility. He asked if the city has the right to monitor. He suggested that perhaps another condition would be an annual audit. Page No. 21 July 24, 2001 Attorney Schleck stated that as long as the conditions relate to public health and welfare, it could impose an audit. Mayor Mertensotto pointed out that the proposed ordinance contains a clause that Council can impose any additional factors it determines necessary to assess the impact of the proposed facility. Assistant Hollister informed Council that three public hearings have been scheduled, in the following order, for the coming Planning Commission meeting. The first hearing would be to amend the B-1 Zoning District to allow treatment facilities as a conditional use, the second would be to rezone the Condon property to B-1. The third would be a public hearing about granting the conditional use permit to Haven. Staff is asking this evening if Council has any suggestions for language to incorporate into the draft amendment prior to the Planning Commission hearing. The city is initiating the hearing to amend the ordinance language, and Haven has submitted applications for rezoning and conditional use permit. Responding to a comment from Councilmember Dwyer, Attorney Schleck stated that he has had discussions with the applicant's legal counsel and they are fully aware they are applying for something that does not exist yet and no promises have been made that everything will happen. Assistant Hollister stated that the Visitation properties and all three of the residential properties on Condon Court all have the underlying comprehensive guidance of LB-PUD, which is equivalent to B -1 zoning. What is being considered is to take the southern most residential parcel and zone it to B-1, bringing it into conformance with its underlying guidance. A distinction must be made between B -1 and B-2. LB-PUD only refers to B-1, and gas stations are not conditional or permitted uses in B-1. They are conditional uses in B- 2, and if this parcel is ultimately rezoned to B -1 and that encourages the other two residential parcels to petition the city rezone to B-1, rezoning them to B-1 would not suddenly allow a gas station to be there. Mayor Mertensotto recommended adopting the Zoning Ordinance amendment this evening so that the language is in place for the Planning Commission to act on the applications. Responding to Council questions, he stated that adopting the amendment does not require Planning Commission hearing, but does require an extra- ordinary vote. I Page No. 22 July 24, 2001 Assistant Hollister informed Council that public notice has already been given that a public hearing will be held on the ordinance amendment on July 31. Councilmember Dwyer moved to approve the revisions prepared by Mayor Mertensotto, for inclusion in the draft ordinance language to be submitted to the Planning Commission. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 ADJOURN There being no further business to come before Council, Co-uncilmember Krebsbach moved that the meeting be adjourned to closed session for discussion with the city's legal counsel and realtor regarding Town Center property acquisition. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 10:30 p.m. Kathleen M. Swanson City Clerk ATTEST: Wn Charles E. Mertensotto Mayor