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1997-12-16 Council minutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, December 16, 1997 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. Mayor Mertensotto called the meeting to order at 7:30 o'clock p.m. The following members were present: Mayor Mertensotto; Councilmembers Huber, Koch, and Krebsbach. Councilmember Smith arrived at 7:50 p.m. AGENDA ADOPTION Councilmember Huber moved adoption of the amended agenda for the meeting. Councilmember Krebsbach seconded the motion. Ayes: 4 Nays: 0 CONSENT CALENDAR Councilmember Krebsbach moved approval of the consent calendar for the December 16, 1997 meeting along with authorization for execution of any necessary documents contained therein: a. Acknowledgment of the December 10 Airport Relations Commission Minutes b. Acknowledgment of Treasurer's Report for November c. Acknowledgment of the Fire Department Monthly Report for November d. Acknowledgment of December 10 NDC4 Meeting Minutes and Agenda e. Acknowledgment of November 26 NDC4 Meeting Minutes and Agenda f. Acceptance of Airport Relations Commissioner Resignation g. Acknowledge Preparation for Ordinance Recodification h. Adoption of 1998 Non Union Salary Adjustments and Resolution No. 97-83, "RESOLUTION AMENDING PAY CLASSIFICATION SCHEDULE FOR NON ORGANIZED EMPLOYEES TO REFLECT A THREE PERCENT ANNUAL ADJUSTMENT FOR 1998" and Resolution No. 97-84, "RESOLUTION ADOPTING A SCHEDULE December 16, 1997 Page 2 OF COMPENSATION FOR CERTAIN EMPLOYEES FOR 1998 AND ESTABLISHING CERTAIN OTHER BENEFITS." i. Acknowledge Communication from Dakota County League of Governments j. Approval to purchase Fire Fighter Protective Coveralls from Danko Equipment for $4,720.00. k. Approval to purchase Six Sets of Turnout Gear from Danko Equipment for $5,500 from the Fire Department 1998 Budget 1. Adoption of RESOLUTION NO. 97-85 - "RESOLUTION APPROVING THE APPLICATION OF THE CITY OF MENDOTA HEIGHTS FOR FISCAL YEAR 1998 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING." m. Adoption of RESOLUTION 97 -86 - "RESOLUTION APPROVING A VARIANCE TO THE MINIMUM LOT SIZE TO CONSTRUCT A HOUSE AT 703 CHEYENNE LANE." n. Acknowledge an Update on Northland Partners TIF for 2506 Northland Drive. o. Approval of Temporary Liquor License - Convent of the Visitation Annual Merrie Market p. Approval of the List of Cigarette Licenses q. Approval of the List of Contractors r. Approval of the List of Claims dated December 16, 1997 and totaling $615,807.29. s. Authorization to Utilize Temporary Accounting Assistant Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 Councilmember Krebsbach moved approval of the minutes of the December 2, 1997 regular meeting as amended. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 SUBSEQUENT TRUTH IN TAXATION HEARING Mayor Mertensotto opened the meeting for the purpose of a subsequent hearing on the proposed levy and budget for 1998. December 16, 1997 Page 3 There being no questions or comments, Councilmember Smith moved to close the hearing and adopt Resolution No. 97 -87, "RESOLUTION APPROVING FINAL 1998 TAX LEVY COLLECTIBLE IN 1998 AND ADOPTING PROPOSED BUDGET FOR 1998." Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 CASE NO. 97-39 - CARD CONDITIONAL USE PERMIT AND VARIANCE Mr. Paul Jeddeloh, legal counsel for Mr. Joseph Card, referred the Council to the plat map indicating the location of the Card property. The street dead ends at the edge of Mr. Card's property, and there is a small drainage ditch across the front. The elementary school is across the street. Behind his property is an unimproved alley that is overgrown with grass. It is not vacated but is used by a resident to access his garage. The Card property is 130 feet by 120 feet. The existing house is approximately 40 to 50 years old with two sides buried in the earth, so that the house sits low. A retaining wall in front prevents erosion. In 1992, Mr. Card received a building permit to increase the size of his garage. The footings were inspected, but the final inspection was not done. The expansion granted under the building permit was one story; the work was never fully completed for a final inspection, and this year Mr. Card added an entire second story to the garage without a proper building permit. Because the work is completed, he has 60 days on the original building permit to have the structure approved. Mayor Mertensotto asked if any changes were presented to the original application plan when the Planning Commission reviewed the plan. Administrative Assistant Hollister answered, no. Mr. Jeddeloh suggested that there is a conflict in the zoning ordinance Section 3.214 which defines a basement. According to the ordinance the two sides of the garage buried in earth are technically considered a basement, which is not counted as accessory storage space. Councilmember Krebsbach stated that a two -story garage with one story maintained as a basement is in conflict with the building permit December 16, 1997 Page 4 application. Mayor Mertensotto asked why Mr. Card did not apply for a modified building permit. The two -story structure that has been built is not consistent with City ordinances. It is not possible to obtain a permit for a garage and then build a two -story structure. Mr. Jeddeloh stated that Mr. Card would like to resolve this issue by proposing to at least change the color of the structure and add landscaping. If required, he would be willing to lower the roof line to make it more attractive and add windows to the upper story. He is willing to do what is necessary to make it work. Mayor Mertensotto stated that another problem with the structure is that there is no utility hookup. He foresees this space being used at some time in the future for living space that does not meet standards for housing. He does not want to make Mr. Card take the structure down, but it is a dilemma for the Council to approve a structure that does not meet standard City requirements. He suggested covenants to provide assurance that the structure will never be used for living space. Councilmember Huber stated that he would not be able to approve the request for a variance of an additional 3 feet in height and over 1,000 feet in area space. Councilmember Krebsbach stated that she is not certain that she would have supported building modifications because of the many other residents who have requested variances to the size of accessory structures that have been denied. Councilmember Koch stated that she does not believe it was Mr. Card's intention to deceive the City and build more than what he actually applied for. With the need for his son's dance studio, he made a practical decision to make the addition but did not change what was written in the permit at City Hall. Mr. Card stated that he did get signatures of support from his neighbors and added that he would do whatever is necessary to resolve the situation. Councilmember Huber agreed that Mr. Card is not being deceptive, but his is a situation that cannot be permitted to remain as it is. If the Council December 16, 1997 Page 5 were to approve this non - conforming structure, it would set a bad precedent. For that reason, he urged the Council to deny approval. Councilmembers expressed and discussed their uncertainty as to how to address this problem at length. Mayor Mertensotto suggested the roof be replaced and new plans submitted for the Council to consider. Councilmember Smith concurred. The signatures for approval are in 1997. While not deceptive, this is an inconsistent situation where what the City approved is not close to the plans that were built. Setting a bad precedent is the big issue for her. The application should be denied because the structure is contrary to the building plans submitted to the City. She recommended that new plans be submitted that may have to be reviewed again by the Planning Commission. Mr. Card asked if it would be acceptable to Council if he sealed off the doors on top and just used that as a roof. Mayor Mertensotto responded that Council cannot approve anything tonight. He stated that something must be done to substantially modify the structure and that as far as he is concerned Council should deny the application because the structure is contrary to the building plans on file with the city. He informed Mr. Card that he must come back with some affirmative plans showing what he proposes to do. He pointed out that Mr. Card has a problem that must be resolved and that the second story of the structure cannot be used or occupied until the matter is resolved. Mayor Mertensotto noted that if this application is denied, Mr. Card will be unable to submit new plans for six months, and the nonconforming structure will be unresolved. Councilmember Huber moved adoption of Resolution No. 97 -88, "A RESOLUTION DENYING A CONDITIONAL USE PERMIT AND VARIANCES FOR 644 BROOKSIDE LANE FOR A GARAGE EXPANSION," with direction to Mr. Card to prepare and submit a plan to modify the garage in a manner which would bring it into conformance with the zoning ordinance, along with waiver of any additional planning fee which would otherwise be required for a new application and without restriction to reapplication within six months. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 December 16, 1997 Page 6 MENDOTA TECHNOLOGY CENTER Council acknowledged receipt of an modified final plat for the Mendota Technology Center PUD. Public Works Director explained that for tax purposes, the applicant would like to have the final plat approved at this meeting, so that it can be filed with the county by the end of the year. Staff believes the modifications to the plat, which includes the addition of one lot and one outlot, require an adjusted park dedication fee. The fee was previously paid, and the applicant has not responded to staff s current recommendation. All aspects of the application (landscaping, drainage, easements, etc.) are in order. Councilmember Huber moved adoption of Resolution No. 97 -89, "RESOLUTION APPROVING THE FINAL PLAT FOR MENDOTA TECHNOLOGY CENTER, " based on the additional park dedication fee for the additional lot" Counciimember Smith seconded the motion. Ayes: 5 Nays: 0 NSP FRANCHISE AGREEMENT RENEWAL Council acknowledged receipt of the proposed NSP Franchise Agreement Renewal. At the August 5, 1997 City Council meeting, the Council referred the proposed Agreement to review by a sub - committee. Mr. Pat Cline, NSP, stated that the Agreement has been amended in response to requests of the subcommittee. Mayor Mertensotto asked what advantage there would be to the City to grant a non - exclusive franchise to NSP. He noted that no other utilities use public rights -of -way in public places. He proposed that NSP grant a 10 percent reduction to the City's monthly utility bill. Mr. Cline responded that consideration for the City is real estate and personal property taxes paid to the City which amount to over $80,000 per year. In exchange, NSP is able to use part of the City's right -of -way. The Agreement is to cover infrastructure needed to supply electricity to homes and businesses. Gas and electric services require a large investment in infrastructure, and he does not anticipate other gas December 16, 1997 Page 7 companies approaching the City to provide service because of the cost to build and maintain the infrastructure. Councilmember Huber noted that within the industry, power companies are frequently buying service from each other because the only way to deliver power is through the lines that are built. His concern is that technology changes, and there may be a better way to provide gas and electric power before the end of the proposed 20 -year agreement. Councilmember Smith asked if another company would have the right to use infrastructure put in by NSP. Mr. Cline answered, yes. It is like long distance. US West lines are used, but many companies offer the service. Mayor Mertensotto stated that he would like to reserve the right to impose franchise fees. Mr. Cline stated that the franchise fee raises the cost of electricity to City residents, but many cities are requesting such language because of the uncertainty of state aid funding. Mayor Mertensotto stated that the franchise fee is warranted because of the awkward position the City is placed in when there are utility problems. He expressed disappointment that the subcommittee was unable to negotiate further changes to the Agreement with NSP. With no discount and the fact that NSP is the only utility company, it is difficult to see the advantage for the City to adopt a 20 -year Franchise Agreement. There are no significant benefits or options for flexibility in the future. Mr. Cline stated that the franchise fee language in Section 9 was not in the original Agreement. Councilmember Krebsbach stated that this is a complicated issue and respects the opinion of Mayor Mertensotto that this contract restricts the City. Her question is what will be different for cities in the future climate of deregulation. Mayor Mertensotto stated that there should be a re- opener clause before the 20 -year life of the contract. NSP wants to control the market, but the - City should receive a benefit for the Agreement to allow that control. Otherwise, it would be better not to have the Franchise Agreement. CONTINENTAL CABLEVISION December 16, 1997 Page 8 Councilmember Smith noted that the only thing changed in the proposed amended Agreement are procedures to grant a franchise re- opener. She is not pleased with the proposed language and agreed with Mayor Mertensotto that the re- opener provision should be based on what is negotiated with all other cities in the 2nd, 3rd, or 4th class, not any two cities in those classes because then it becomes a political issue. Mayor Mertensotto stated that he does not question NSP's rates. They are controlled by the Public Utilities Commission. However, the City is gaining nothing in this contract, and NSP will have nothing to worry about for the next 20 years. Mr. Cline stated that discounting dollars per household is not a possibility. The recommendation of the subcommittee to provide language for a re- opener any time during the 20 years was adopted, which is the first time NSP has ever agreed to that. He does not want the City to believe it is confined in a climate of deregulation. Nothing new is being requested, and it is prudent to have a Franchise Agreement to protect the infrastructure investment and govern both parties. Councilmember Smith asked what vehicle governs responsiveness and function of infrastructure in areas of the City when power outages occur. Mr. Cline stated that those policies and agreements are approved by the Public Utilities Commission, the governing body on the state level. The Council was unable to reach agreement with Mr. Cline, and it was the consensus of the Council that Mayor Mertensotto meet with Mr. Cline and/or other representatives of NSP to renegotiate the proposed Franchise Agreement. Council acknowledged receipt of Continental Cable's request to transfer the franchise to Charter Communications, noting the January 1 rate increase. Mayor Mertensotto asked if the rate can be increased without checking with member cities. COUNCIL COMMENTS December 16, 1997 Page 9 Councilmember Huber stated that is why the recommendations were submitted to member cities for discussion before the meeting December 17, 1997. He urged all Councilmembers to attend the meeting to hear what is happening. Councilmembers extended their best wishes to everyone in the community for a Happy Holiday season. Mayor Mertensotto noted that the Council will meet at 7:00 p.m. on Tuesday, January 6, 1998, for employee awards. City Administrator Batchelder noted that there are two 25-year service awards. There Will be an informal reception before the Council meeting and the awards will be presented after the regular meeting begins. ADJOURN Councilmember Huber moved to adjourn the meeting to 7:00 p.m. on December 16, 1997 for an employee recognition reception. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:35 p.m. ATTEST: V Charles E. Mertensotto, Mayor Kathfeen M. Swanson' City Clerk