Loading...
2000-10-17 City Council minutesPage No. 1 October 17, 2000 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, October 17, 2000 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, Huber, Krebsbach and Schneeman. PUBLIC COMMENTS Dakota County Commissioner Patrice Bataglia informed Council that the odor emanating from the Gopher State Ethanol plant is raising complaints from Mendota Heights residents. The plant is funded by the state and people are concerned that the legislature is funding something that has become a nuisance to the neighbors and the neighboring communities. The plant operators are aware of the concerns and have been talking to the city of St. Paul about how to deal with the odors. She stated that she would like the city to notify the City of St. Paul and the MPCA that it is a problem and a concern. There is a hearing bye the City of St. Paul tomorrow evening and comments and a letter from the City Council would be helpful. There is also a constant noise that can be heard from the plant. Councilmember Dwyer stated that he has personally observed both the odor and the noise. He asked Commissioner Bataglia if she is aware of any technology that is available to reduce the problem. Commissioner Bataglia responded that there is technology available but it is very expensive. Councilmember Krebsbach stated that she has been canvassing the city and this is a resident concern, particularly in the north end of the city. She stated that the odor is comparable to an agricultural environment and while that might be expected in an agricultural area it is not expected in a city. Commissioner Bataglia stated that her concern is that there is no other urban ethanol plant in the nation and there is no guideline upon which to establish requirements. She submitted a sample resolution and asked for Council's adoption and support. Page No. 2 October 17, 2000 Councilmember Krebsbach moved adoption of Resolution No. 00- 85, "RESOLUTION URGING THE CITY OF ST. PAUL TO EXPEDITE A SOLUTION TO THE SMELL AND NOISE POLLUTION EMANATING FROM THE GOPHER STATE ETHANOL PLANT," with direction to staff to forward the resolution to the City of St. Paul, Dakota County, the Pollution Control Agency, the ethanol plant and the Cities of Lilydale and Mendota. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 AGENDA ADOPTION Councilmember Dwyer moved adoption of the revised agenda for the meeting. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Schneeman moved approval of the consent calendar for the meeting, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the October 5, 2000 Town Center Focus Meeting Notes. b. Acknowledgment of the unapproved minutes from the September 6, 2000 NDC 4 meeting. Acknowledgment of the Treasurer's monthly report for September. d. Approval of the issuance of a critical area permit and authorization for the issuance of a building permit to allow construction of a great room addition at 1238 Wachtler Avenue. e. Approval of the issuance of a critical area permit and authorization for the issuance of a building permit to allow construction of a deck replacement and enlargement at 703 Maple Park Court. f. Approval of the list of contractor licenses dated October 17, 2000. g. Approval of the List of Claims dated October 17, 2000 and totaling $650,725.49. Page No. 3 October 17, 2000 h. Adoption of Resolution No. 00 -85a, "RESOLUTION CONFIRMING 2000 GENERAL ELECTION JUDGES." Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 MENDOTA MDEWAKANTON Council acknowledged a memo from Interim Administrator PROPOSAL Danielson regarding a presentation by representatives of the Mendota Mdewakanton Dakota Community on their vision for the Garron site. Council also acknowledged a "Pilot Knob Vision" document submitted by the Community. Mr. Jim Albrecht, Mr. Bob Brown, and Ms. Linda Brown were present on behalf of the Mendota Mdewakanton. Mr. Albrecht stated that the Mendota Mdewakanton Community is a nonprofit organization to promote and protect the Mdewakanton culture. He is present to seek support for the idea and take comments from Council and the audience regarding what is proposed. Mayor Mertensotto asked what the proposal will do for the residents of Mendota Heights. Mr. Albrecht responded the site is significant to the Mendota Mdewakanton culture and historically significant to the city and the state. This is the entrance way to the city and the city would want to have something on the site that attracts people. The Mendota Mdewakanton envision this as a place for thousands of people to come. There would be an educational facility, a museum and an upscale restaurant. Mayor Mertensotto stated that this is a very focal corner, the gateway to the city, and the land has an underlying commercial designation. The owner of the land feels he can find a corporate headquarters for the site that would bring in significant tax revenue to the city, county, etc. Because of the access to the site, it will be difficult for this to happen. Just because of the panoramic view from the site, Council thinks it would be an excellent multi - family housing area with high capacity tax. He stated that he asked Mr. Albrecht what his proposal will do for the city because there is already a substantial amount of land off the city tax rolls. Page No. 4 October 17, 2000 Mr. Albrecht responded that the question must be answered, and a consortium of people should get together to see what can be done to bring in tax revenue, perhaps including offices in the proposal. Mayor Mertensotto stated that the city does not have TIF available to assist in development of the site. Council knows that the site would probably take extraordinary infrastructure to stabilize the slopes, etc. The up front costs are quite substantial. He informed Mr. Albrecht that a charter school was interested in locating on the site recently but they gave up because of the costs. He stated that he does not wish to appear to be downplaying the Mendota Mdewakanton organization or the historical features and value of the land but Council must weigh that against what the city would be giving up. Councilmember Krebsbach asked if the group has spoken to the Acacia Park Cemetery representatives. Mr. Albrecht responded that he has tried but since Acacia is negotiating the sale of fifteen acres now they would not talk to him. Responding to a question from Councilmember Sch-neeman about whether the organization is looking at this site for gambling, he stated that the Mendota Mdewakanton is a non-profit organization and is just interested in the protection and preservation of the culture in the State of Minnesota. This is the project area for a cultural center for schools to visit. If the Mendota Mdewakanton gets the right consortium together it will be a win/win situation for the state, the Mendota Mdewakanton community and the city. Councilmember Krebsbach stated that she supports the plan the city has and the underlying zoning. At one time she thought this would be a good place for a park but Acacia Cemetery was not interested because of the activities near the cemetery. The Mendota Mdewakanton proposal looks like this would become a very active site and that does not seem to be a compatible use next to the cemetery. Mr. Albrecht object to the responded that the cemetery could not ob p j proposal because they are in negotiation on a land sale. The Mendota Mdewakanton wants to see how Council feels about the broad visionary plan and whether it would be a good entrance to the city. He stated that this would be good for the state and the residents of the city would like it. Page No. 5 October 17, 2000 Mayor Mertensotto stated that this really should come from the state legislature if it is to benefit the seven county area. The legislature is looking at laws to reimburse cities for lost taxes. Mr. Albrecht responded that this is probably the most historically significant site in the State of Minnesota, and the Mendota Mdewakanton feel the proposal would benefit the city. Councilmember Dwyer stated that if the choice is development that has offices or an interpretive center that recognizes the history of the land, he knows where he would stand but not if gaming were any part of it. If there were a scintilla of a possibility that there would be gaming, none of the Council would look favorably on the proposal. Mr. Albrecht responded that this is a perfect location for a museum, and the Mendota Mdewakanton is trying to be as open as they can be. The Mendota Mdewakanton wants this to work and has had preliminary discussions with legislators. Mayor Mertensotto stated that he can see where the Mendota Mdewakanton would be talking to the legislature since this is to benefit the metro area. The prohibition against gaming stems from a former Mendota Mayor saying that a group could purchase two acres and the city allowed gaming it could realize $200,000 a year. The Mendota Heights Council responded that it would cut off police and fire service to Mendota if a gaming establishment was approved. Mr. Charlie Higgenbotham, a planning engineer in Hennepin County, stated that he has been talking to the McKnight foundation and they are willing to come in with $1 million. The Bush Foundation and others are also interested. If the Mendota Mdewakanton could get something past the legislature the city would recoup what it would lose in taxes. The Mendota Mdewakanton is trying to integrate many different areas into one, a museum, culture, schools, businesses and restaurants within the center. There would be somewhat of a tax base and the shortfall would be recaptured through the legislature. The proposal addresses the needs in terms of bridging the gaps between cultures and integrating the societies, bringing in the schools and having something interactive like the Science Museum. There is nothing in the area that is comparable to what is proposed. Mayor Mertensotto responded that the cultural background of the tribe is significant but the Mendota Mdewakanton should first determine what type of site it needs and whether it meets the criteria. Page No. 6 October 17, 2000 The group should do a needs assessment, and look at such things as access, before spending much money. Mrs. Brown stated that the Mendota Mdewakanton wants Council to consider the idea prior to any decisions being made about the land and its use. The Mendota Mdewakanton would like Council to be thoughtful in the process of determining how it would like the site used without excluding this proposal. Councilmember Schneeman stated that this is an intriguing proposal and it behooves Council to look into it more. Whatever the McKnight and Bush Foundations get involved in is wonderful. Councilmember Krebsbach stated that she feels the proposed use is too intense for the site, given the number of projected visitors. She stated that if it were a perfect world and there were resources available, she feels that preservation would be the way to go for this site. She did not know that the state would in any way compensate the city for lost taxes. Even if it were to develop as multi-family, there would still be significant open space required on the site, so it would still be reminiscent of its history. Councilmember Schneeman stated that she would like to continue to look at the proposal. She would rather see this development than either an office building or homes. There is time to explore the proposal, and she would like to spend time reviewing the materials that have been submitted. Councilmember Huber stated that at some point the person who owns the land or has an option on it will come before Council with a proposal. This is an interesting proposal but ultimately Council will have to react to a proposal brought forward by someone who owns the property. If the Mendota Mdewakanton moves along with the project and gets to the point that the organization has the resources to buy the property, Council would react to the plan. He stated that if someone were to acquire the land and come forward with a proposal that meets the zoning, Council would not be in a position to say they could not do it and that Council would rather that someone else develop it. Mayor Mertensotto, stated that if the Mendota Mdewakanton is looking at a center that would benefit the seven county metro area and students would be coming to the site for field trips, the state will need to come forward to help the organization. Until Council has a project to consider, it cannot really react. Council does not know the Page No. 7 October 17, 2000 intensity of the use and the noise zone restriction must also be recognized. Mr. Bob Brown expressed appreciation to everyone in the city who helped with the Pow Wow at St. Peter's. He stated that St. Peter's pastor is looking forward to another Pow Wow next year. Police Chief Johnson and the police department were wonderful and everything went very well. He stated that he would like to comment that the Pilot Knob Hill was a burying place for a long time and there will never be any talk from the Mendota Mdewakanton about gaming there. That is not the organizations' intent and never will be. He stated that the Mendota Mdewakanton would prefer that the site always stay like it is. It is the burial place for their chiefs and the history of the site is more important to him than anything being built there. It is not only a treaty site but the graveyard went all the way from Acacia north, and many remains were dug up to put in the freeway. TECHTRONICS Council acknowledged a memo from Treasurer Shaughnessy regarding a proposal from Mr. Joe Jensen for the development of property located at T.H. 55 and T.H. 13. Council also acknowledged a letter from RJ Ryan Construction regarding the proposed project and the need for TIF assistance. Mr. Jensen and Mr. Jim LaValle, from RJ Ryan, were present for the discussion. Mr. Jensen stated that he owns the land and is interested in relocating his business, Techtronics, to Mendota Heights. His company is now located in Eagan and he is looking for a permanent location. His company is a technology firm that does network engineering and cabling and telephone system installation. He currently employs 25 to 30 individuals and most of the staff is in the field. There is very little inventory or warehousing because technology changes so rapidly. Mr. LaValle stated that he and Mr. Jensen are also present to ask for help with the site. He showed Council preliminary civil drawings and stated that he has run into many constraints on the property, including a long utility extension and the need to purchase an odd shaped parcel of excess right -of -way on the north end of the site from MnDOT. He stated that he has prepared preliminary estimates for site preparation, grading and retention walls. Mayor Mertensotto asked if Mr. Jensen has talked to MnDOT about acquiring the land. Page No. 8 October 17, 2000 Mr. Jensen responded that MnDOT is interested in getting the land back into the private sector but told him that it would be a very long process. He stated that he has some time limitations due to the his current lease, and MnDOT suggested he could expedite the process by getting support from Council. He stated that before he bought the land, he knew there needed to be site correction work done. When he decided to go ahead with the project, Ryan found out a lot more about utilities. The utilities are about 600 feet from the property lien and come from two different directions. It was also discovered that the property is at the end of the water line and a water loop must be installed. That will cost an extra $100,000. He stated that all he is looking to do is level the playing field of what it would cost to develop this land as a typical site. He has a growing and thriving business that he would like to bring to Mendota Heights. He stated that it is a great site but whoever develops it will be looking for city assistance. Mr. Pat Pelstring, from Pelstring Capital, stated that he has met with city staff several times and they have been very helpful. He understands that the city originally had one TIF district that is now going through the process of decertification. It is obvious that the city has not used TIF to attract business. All Mr. Jensen is trying to do is develop the site as economically as other sites in the city. He reviewed a preliminary TIF analysis and stated that the site could be decertified from the existing TIF district and can be certified as a redevelopment district for 25 years. As the process moves forward, he would work with the city on market valuations for the site. A typical site would cost $3.55 per square foot to develop, but Techtronics' cost for this site would be $5.65 per square foot. They are asking for assistance to bring the cost down to $3.55 per square foot, and he suggested a pay as you go note. The preliminary estimate is that something over $400,000 in assistance would be needed, including the cost of the water loop. Mayor Mertensotto stated that the owner has timing constraints because of his existing least. He asked what the time elements are to decertify and establish a new tax increment district. Mr. Pelstring responded that the city would need to prepare the plan, distribute it to the county and school district and conduct a public hearing, all of which would take sixty to ninety days. The city's only obligation would be to pass the money through. The risk to the city is limited. The city would receive the current taxes and the tax increase for the period it takes to retire the bonds would be deducted to pay off the note. The city's legal counsel will probably Page No. 9 October 17, 2000 recommend establishing the district for 25 years, but the city could decertify the district as soon as the note is paid off. He pointed out that the city is under no obligation to pass through the increment if the increment is not generated. Councilmember Huber stated that the agreement would stipulat that if Mr. Jensen sold the property the agreement will expire and he would not have the benefit of TIF. Mayor Mertensotto stated that he could see that the financer might want the assignment of the increment. Council's concern is that the property is right at the intersection of T.H. 13 and T.H. 55 at the entrance to the industrial area, and the city would certainly be looking for site amenities. Mr. LaValle responded that he has not designed a specific structure yet because of the infrastructure problems. They will need to import 13,000 yards of fill and demolish a house in addition to the utility problems. He envisioned a multiple tenant building with Mr. Jensen taking about 7,000 to 9,000 square feet of the 37,000 square feet in the beginning. The structure would be 70% office and 30% warehouse and would be similar to the buildings constructed by OPUS down the street. Mayor Mertensotto stated that it will be no risk to the city if the city gets the type of development Council is looking for. He felt this would be a good site for the proposed structure, but that Council would want to be certain there is some architectural significance to the building, not just plain panels. The structure should be something of the quality of the RJ Ryan headquarters on Mendota Heights Road and there should also be significant landscaping. Mr. Jensen stated that he had been informed that this is a key site and he wants to construct a very nice building for his business. Councilmember Huber stated that Council went to the legislature last year on a tax increment issue. He asked if this would be in any way contrary to that. Mayor Mertensotto responded that it would not. Council has legitimate statutory authority and could have used a redevelopment Tax Increment District for Town Center. If Mr. Jensen is going to build a structure of similar quality to the RJ Ryan building and with appropriate landscaping, he sees no reason not to assist Mr. Jensen. Page No. 10 October 17, 2000 He pointed out, however, that Council does not have anything to approve. Mr. Jensen stated that he is here to talk to Council to see if there is any interest in him following up on the concept. Mayor Mertensotto responded that if the city does not give assistance, this land will likely not be developed. Councilmember Krebsbach stated that Council wants to see the same level of detail as the Tuthill building and others. Mr. Jensen responded that he believes his building will be the nicest building in the corridor. Interim Administrator Danielson informed Council that staff has requested that MnDOT transfer the unused right-of-way to the city so that the city can transfer it to the developer. It was the consensus that Council would support the developer putting together a redevelopment district and that the city reserves the right to approve the building design, landscaping, etc. FENCE HEIGHT Council acknowledged a memo from Assistant Hollister regarding AMENDMENT consideration of an amendment to the Zoning Ordinance regarding fences on through lots and comer lots. Council also acknowledged a letter from the City Attorney and draft amendment language. Mayor Mertensotto briefly reviewed the Hurley and Sindt fence height variance applications that were discussed on October 3. He stated that Council is only talking about fence height, but it must also address location. Acting City Attorney Jim Dierking stated that the concern Council had was the setback concern, and his office has prepared revised ordinance language in response. The language does not specifically address pedways. The ordinance states that a fence would be no closer to the front lot line than the rear building line of the principal structure, which keeps the fence in the back yard. The proposed amendment sets up the process as a conditional use permit rather than a variance process so that Council can grant permits for six foot fences but does not need to find hardship. Page No. 11 October 17, 2000 Councilmember Dwyer stated that the conditional use process actually provides the city with a greater amount of control over the end product. Mayor Mertensotto stated that Council will not adopt any amending language this evening because the Planning Commission must conduct public hearings on proposed amendments to the Zoning Ordinance. The problem is that Mr. Hurley wants to build his pool and fence this year. Mr. Sindt stated that he would like to finish his fence this year but he could wait. Mayor Mertensotto stated that, because of the hearing requirement, the fee for a conditional use permit application is $350 versus the $50 variance fee. The two applicants have filed for variances but Council is saying that it is going to consider an ordinance amendment. If the applicants can wait until the hearing process is completed and an amendment is adopted by the city, Council would not charge them the conditional user permit application fee. Interim Administrator Danielson stated that this would not come back to Council until December because of the hearing requirements. Mr. Hurley stated that he began the process in July and just missed the filing deadline so he has held the contractor off for months. The contractor is tied up all spring and wants to do the dirt work for his pool this fall. He stated that the city attorney had indicated that he felt a hardship could be found because of the practical difficulty and asked if Council would consider granting the variance. Councilmember Dwyer stated that what City Attorney Hart stated on October 3 was that if Council found hardship it is likely that a reviewing court would probably sustain. Councilmember Huber stated that his concern on this project was that he felt this is 140 feet of fence and that while the Hurleys have identified some trees they could plant, he did not know how they could squeeze the stand of trees in and the fence without having the trees take over the property. His preference would be to set the fence inside the berm — inside the existing spruce. Mayor Mertensotto stated that every time Council has approved a fence to be set on a berm there is always a problem because it is not continuous. He asked if the fence can be put inside the spruce. Page No. 12 October 17, 2000 Mrs. Hurley responded that things just don't fit to put it inside the trees. The junipers are at their maximum height and it will take years before they get to be four feet in diameter. They would be six feet from the walking path. Their plan was to plant something that would screen as much as possible and still fit in the area. Councilmember Huber stated that when you get six feet away from the pedway, the fence becomes higher because it is being built on the berm. It is not a five foot high fence then — it is seven to eight feet high and it is 140 feet long. He stated that a balance needs to be found. Mayor Mertensotto asked what height the fence would have to be to keep people from scaling over it. Mrs. Hurley responded that the area where the fence will be is level and there will not be any gaps. The fence sits on top of the berm. Mr. Hurley stated that the top of the fence would be about eight to nine feet high from the pedway. Councilmember Huber stated that he is trying to be sympathetic but he is fearful of a very visually impacting structure that the Hurleys would rather everyone else would look at then themselves. The Hurleys want the pool and the fence and there is an opportunity for it to be put on the inside so that everyone else does not have to look at it. With the 8 foot height (placed on the berm), it really is a substantial wall. Mrs. Hurley responded that she thinks they have put forth something that would be very attractive. Councilmember Huber stated that he is having a hard time trying to figure out how putting the fence inside the berm would have an impact on their concrete deck. Councilmember Dwyer responded that putting the fence on the inside of the trees would deprive the Hurleys of four inches of yard. Council's mission is to protect the interest of everyone in the city. The choice is for someone walking along the pedway to see the fence with spruce behind it or the fence with spruce outside it. Mrs. Hurley stated that they need a fence around their yard regardless of whether they have a pool because they have small Page No. 13 October 17, 2000 children and it is a very busy road. This is a much better option than a chain link fence. Mr. Hurley stated that if they are told they have to put the fence inside the trees they are not going to put in the pool. It would look tacky. Instead, they would drop the project and install a chain link fence. There was discussion over whether there is a way to break up the fence, such as staggering it in and out so that it is not one continuous fence, or bringing it between the trees part of the way. Mrs. Hurley responded that because of the shape of the lot and the area, there is very little room for the children to play in the yard. Councilmember Huber stated that he is troubled that if the Hurleys have to bring the fence inside so that they are looking at it, they do not want to build it, but if they will construct it if they can put it outside so everyone else would look at it. Councilmember Krebsbach stated that there is a fence at Wentworth and Delaware that is staggered. It is the same type of issue and at a key corner, and the owners put a jog in the fence and did landscaping so that the fence blends in. Mr. Sindt stated that he has a problem with the proposed ordinance amendment because his fence would not be in compliance because it is in the back yard area. He would have to get a variance for the back yard setback. Not only would he require a conditional use permit for the sideyard fence, but because of the way his fence is already constructed, he would also need a variance. Mayor Mertensotto responded that the rear yard setback could be incorporated into a conditional use permit. Councilmember Dwyer stated that if the Hurleys delay their request until the Planning Commission acts on the proposed amendment, they still might not get Council's support. Council is struggling with the enormity of the wall and which side of the trees it should be on. He asked if there is any compromise. Councilmember Krebsbach asked if the fence can be broken up, citing the Dodd/Wentworth fence as an example. Mayor Mertensotto agreed, stating that he can envision walking along the pedway and seeing a 140 foot long, eight foot tall fence. Ayes: 4 Nays: 1 Huber Page No. 14 October 17, 2000 Councilmember Schneeman asked whether it would be reasonable if the fence was five foot tall on the berm and they put a jog in it. Councilmember Huber responded that he does not know how much flexibility there is in the city's ordinance. He would like to see more opacity and a five foot height. Mayor Mertensotto agreed, stating that it could be not more than five feet tall with landscaping on the outside of the fence. Mrs. Hurley responded that they would see the outside of the fence as much as everyone since they drive by and walk by their home every day. Councilmember Dwyer stated that he thinks that legally Council can support a finding of hardship because through no action of their own, the Hurleys bought a piece of property that is being controlled by two conflicting ordinances and it is a uniquely shaped lot. Mayor Mertensotto stated that Council would have to make a finding that a back yard pool is not unusual but a fence is required to provide safety. There is a middle school across the way and Council must be mindful of the safety of the school children. Councilmember Krebsbach stated that another finding on safety, apart from the pool, is the safety of the children playing in their back yard. Councilmember Schneeman moved adoption of Resolution No. 00- 86, "A RESOLUTION APPROVING A TWO FOOT FENCE HEIGHT VARIANCE TO INSTALL A FIVE -FOOT FENCE WITHIN THE FRONT YARD SETBACK AT 2465 HAMPSHIRE LANE," with the added condition that the applicants submit an appropriate plan for landscaping between the fence and the walking path. Councilmember Krebsbach seconded the motion. Councilmember Krebsbach recused herself from the following discussion on the Sindt variance application. Responding to a question from Mayor Mertensotto, Mr. Sindt stated that 96 feet of the fence is in place. The fence is 5'4" tall and the Page No. 15 October 17, 2000 berm ranges anywhere from 2 feet to 8 feet in height. The fence would only be seen in the winter. Mayor Mertensotto asked Mr. Sindt what the reason for the fence is. Mr. Sindt responded that because of the shape of his lot and the orientation of the road, all the traffic lights go right into the back of his home. There is no back yard because of the hill, and so he has to use his sideyard. He needs the fence for security and safety and because his hot tub is an attractive nuisance. Mayor Mertensotto stated that he can see Mr. Sindt's point. Because of the shape of the lot and the topography of the lot and the fact that the applicant desires to have security and also safety because of the attractive nuisance. Mr. Sindt stated that the fence is not 30% opaque. The top part is lattice work and the lower part is solid. Mayor Mertensotto stated that the only problem is that a variance runs with the land and if the Sindts or someone else want to change the design, they could comply with the 30% opacity. He stated that the fence has already been installed. Council can grant a variance to install the fence in its location and the Sindts can be entitled to extend the fence with the same design, and then Council does not have difficulty with granting a variance for opacity. Councilmember Schneeman moved adoption of Resolution No. 00- 87, "A RESOLUTION APPROVING A 2'4" FENCE HEIGHT VARIANCE TO INSTALL A 5'4" FENCE WITHIN THE FRONT YARD SETBACK AT 2455 WHITFIELD DRIVE." Councilmember Dwyer seconded the motion. Ayes: 4 Nays: 0 METRICOM LEASE Council acknowledged a proposed lease agreement with Metricom with respect to the approved conditional use permit for installation of 16 antennae on the water tower. Mr. Paul Harrington was present on behalf of Metricom. Mr. Harrington stated that he has negotiated the agreement with the city attorney and believes they have arrived at a fair lease agreement. Council should address three issues: the commencement of the lease term, the monthly rental amount, and the amount of the bond. Metricom asks that the city consider December 1 as the Page No. 16 October 17, 2000 commencement date or earlier if possible. There will be four sectors of four antennae located at 0, 90, 180 and 360 degrees. Mayor Mertensotto stated that he thinks that the rental should start at $2,000 a month and that the city use an annual increase based on the consumer price index but no less than 5 %. Mr. Harrington stated that in his discussions with the city attorney and public works director, they tried to follow the previous lease and that is why the annual increase was set at the greater of 5% or the CPI. Councilmember Dwyer stated that he agrees with the $2,000 monthly lease. He noted however, that the third term of the agreement calls for automatic renewal for three successive terms of five years unless either party notifies the other of intent not to renew, but the final sentence in the paragraph is inconsistent. Acting City Attorney Jim Dierking agreed. He stated that there must be automatic renewal and the final sentence in paragraph three should be stricken. Mayor Mertensotto stated that the bond should be set at $7,500. Comicilmember Krebsbach stated that Metricom has more antennae than the other firms using the tower. The others pay $1,800 per month. Mr. Harrington stated that if the lease is set at $2,000 per month, he would like to scale the proposal back to eight antennae and would ask that Metricom pay $1,200 because it would have less antennae than its competitors who are paying $1,800 per month for 12 antennae. Mayor Mertensotto stated that repainting the water tower is very expensive and every antenna on it has to be repainted at extra cost. Councilmember Krebsbach informed Mr. Harrington that Council had decided that it was not going to approve any more antennae on the tower. Councilmember Dwyer suggested tabling the matter so that Council can determine what the lease fee should be. Page No. 17 October 17, 2000 Mr. Harrington stated that he is trying to apply the ordinance as written and placing the antennae on existing structures rather than installing a monopole. He felt that Metricorn is trying to be responsive and is only asking to be treated the same as previous carriers on the site. Mayor Mertensotto responded that the more antennae that are allowed on the tower, the more cluttered its appearance becomes. That is why the city arrived at the $2,000 rate. He agreed with Councilmember Dwyer that perhaps the matter should be tabled, since Council did not think it would be negotiating the fee. Mr. Harrington asked that Council act on the agreement that is on the table- an agreement for 16 antennae, $2,000 monthly lease, $7,500 bond and lease commencement on December 1, 2000. Councilmember Huber moved to approve the proposed lease agreement, with the recommended revision as to Paragraph 3, to allow the installation of four quadrants of four antennae and based on a $2,000 monthly lease, $7,500 bond and lease commencement on December 1, 2000. Councilmember Sch-neeman seconded the motion. Ayes: 5 Nays: 0 TAX FORFEIT RETURN Council acknowledged a letter from Ms. Arleen Gerard, 574 Butler Avenue, requesting that the city release to her a small parcel of tax forfeited land adjacent to her parcel. Council also acknowledged an associated report from the Public Works Director. Ms. Gerard stated that she is asking for the return of a tax forfeit parcel, now owned by the city, at the comer of her lot. She stated that she will be responsible for mowing and maintaining the property. Mayor Mertensotto felt that the city should retain a road easement along the Butler and Spring Street portion of the parcel for additional radius at the comer. Councilmember Schneeman moved to authorize staff to begin the process to release the parcel. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 Page No. 18 October 17, 2000 AMM POLICIES Council acknowledged and discussed the draft AMM 2001 Legislative Policies. Councilmember Krebsbach stated that there is a policy adoption meeting on November 9 and the AMM Metropolitan Agencies Committee, which she chairs, has no changes to recommend. The tone of most of the policies is strengthening local government. She felt that one of the key provisions is that local government still retains the powers of zoning. ZONING AMENDMENT Council acknowledged a memo from Assistant Hollister along with a proposed amendment to the Zoning Ordinance regarding the B -3 Zoning District requirement for a 100 foot setback from a major thoroughfare. Interim Administrator Danielson informed Council that several people have approached staff with respect to developing two vacant parcels along T.H. 55 south of SuperAmerica, but the huge setback along the highway has discouraged potential developers. He informed Council that there are only three other properties in the B -3 district that are developed. Mayor Mertensotto stated that he would really like to see a restaurant on the site. He pointed out that Council granted SuperAmerica a setback variance. Councilmember Krebsbach stated that she would rather see an office building on the property. Interim Administrator Danielson informed Council that MnDOT has 120 feet of right -of -way from the roadway to the property line, so anything that goes on the site will need a variance. Councilmember Dwyer stated that if the setback requirement does not change, a variance would be required and developers would have to appear before Council to present their proposals. It was the consensus to leave the ordinance language unchanged but to indicate to prospective developers that Council is receptive to their ideas. WORKSHOP Councilmember Schneeman moved to schedule a closed session workshop for the purpose of interviewing City Administrator candidates for 4:00 p.m. on Thursday, November 2. Councilmember Krebsbach seconded the motion. Page No. 19 October 17, 2000 Ayes: 5 Nays: 0 ADJOURN There being no further business to come before Council, Councilmember Schneeman moved that the meeting be adjourned. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 10:47 p.m. Kdt'hleen M. Swanson City Clerk F."Wel-a" Charles E. Mertensotto Mayor