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1997-06-03 Council minutesPage No. 1 June 3, 1997 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, June 3, 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 had notified Council that she would be absent. AGENDA ADOPTION Councilmember Koch moved adoption of the revised 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 meeting, amended to remove item h., Amendment to Dispatch Service Agreement, from the agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the May 27, 1997 Planning Commission meeting. b. Acknowledgment of the Building Activity monthly report for May. c. Acknowledgment of receipt of information regarding a Dakota County Administrators /Managers Summary of Service Delivery Agreements for Dakota county and Constituent Cities. d. Acknowledgment of a memo from Administrator Batchelder regarding issues related to the Dakota County cluster's participation in the Livable Communities Act. e. Acknowledgment of a status report on the Bunker Hills street reconstruction project. Page No. 2 June 3, 1997 f. Adoption of Resolution No. 97 -24, "RESOLUTION APPROVING FINAL PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR SANITARY SEWER, WATERMAIN, AND STORM SEWER IMPROVEMENTS TO SERVE PINE CREEK ESTATES AND A PORTION OF LOT 49 OF AUDITOR'S SUBDIVISION NO. 3 (IMPROVEMENT NO. 93, PROJECT NO. 1). g. Authorization to issue a purchase order to Pine Bend Paving for its low bid of $4,350.00 to construct a bituminous trail form the Dakota County HRA. Senior Housing Project to the Friendly Hills neighborhood, all costs to be paid by the HRA. h. Approval to appoint David Odlaug to the position of probationary police officer at the wage rate specified in the current labor agreement. i. Approval of the list of contractor licenses dated June 3, 1997 and attached hereto. j. Approval of the List of Claims dated June 3, 1997 and totaling $572,944.68. k. Acknowledgment of the unapproved minutes from the NDC -4 full commission meeting held on April 2 and acknowledgment of the May 7 NDC -4 Executive Committee meeting. Ayes: 4 Councilmember Koch seconded the motion. Nays: 0 AIR NOISE Mayor Mertensotto informed Council and the audience that at its May 28 meeting, the MASAC voted on the question of close in departures off runway 11L and R as well as close in departures off the runways on the Minneapolis side. He explained that departures from 11 L bring traffic over Mendota Heights, and the motion to direct the close -in departure procedures on this side of the river was denied by a vote of eight to eleven. He stated that it is sad to see that there were eleven votes against the procedures when Mendota Heights takes 67% of the departures, yet on the Minneapolis side the close in departure procedure was approved. He did not understand why the cities who have no aircraft noise burden voted against a specific request for the procedure from a noise impacted community, pointing out that MASAC has had an opportunity once in the past five years to deal with a noise issue. He stated that he feels that MASAC is a.waste of funding and stated that he is going to ask the _,Dl v Page No. 3 June 3, 1997 city's Air Noise Commission if they feel that the city should seriously consider withdrawing from MASAC. Mayor Mertensotto informed Council that he is going to ask the MAC to direct the Noise Abatement Council to reorganize, because it makes no sense for the City of St. Paul to have so many members on the committee even though they receive very little noise impact. He stated that what is particularly disturbing is that other MASAC representatives from cities around the airport would vote against Mendota Heights. CASE NO. 97-11, TURNER'S Council acknowledged an application from Turner's Gymnastics GYMNASTICS Center for a variance to allow the placement of a 100 square foot banner sign on the east side of its building every year for two thirty - day periods. Council also acknowledged associated staff reports. Mr. Jim Lander, President of Turner's Gymnastics, was present for the discussion. Mr. Lander stated that Turner's is requesting approval to place the temporary sign on the building twice a year, in April and August, to attract new clients and renewals. He further stated that the City Council approved the same request for Turner's in 1993. Mayor Mertensotto responded that the problem with the request is that Turner's is along the freeway and everyone would like to hang a banner there. He felt that there are other methods Turner's could use to attract clients that would not require city permission for a sign that violates city ordinance requirements. He informed Mr. Lander that Council is willing to help Turner's but does not want to set a precedent. Councilmeraber Krebsbach stated that she would not have a problem with approving the request if it were only for a one -time sign in August of this year but that she would not want on -going signage. Mayor Mertensotto stated that he understands that the last time the banner sign was used it was not effective. He asked Mr. Lander if he would report back to Council on how many inquiries Turner's gets if the sign is approved for August. Councilmember Huber stated that he could agree to a one -time sign in August with no commitment to the future and with the requirement that Turner's report the results to Council. Page No. 4 June 3, 1997 Councilmember Krebsbach stated that she could support granting the variance for a one -time sign based on the fact that Turner's has not made a similar request in the past four years. Councilmember Huber moved to approve a variance to allow the same 100 foot banner sign used in 1993 to be placed on the side of the Turner's Gymnastics building facing the freeway on a one -time basis, during the month of August 1997, with the conditions that the sign be removed at the end of the month and that Turner's Gymnastics report back to Council before the end of the year on the effectiveness of the sign. Ayes: 4 Councilmember Krebsbach seconded the motion. Nays: 0 CASE NO. 97 -12, Council acknowledged an application from Mortenson Properties MORTENSON PROPERTIES for a conditional use permit for mining which would allow (BROWN INSTITUTE) parking lot expansion and site improvements at the former Cray Research building at 1440 Northland Drive. Council also acknowledged a letter from the Brown Institute, a draft Contract for Private Development for TIF, and reports from the City Planner and Administrative Assistant. Mr. Tom Lander, from Mortenson Properties, was present for the discussion. Mayor Mertensotto stated that it is his understanding that Mortenson Properties is the developer and will be forming another corporation or unit that will own the property for lease by the Brown Institute. He stated that Council has to be very careful to follow its standard of no transfers, and in this particular case the agreement addresses what the city considers a transfer. He stated that Mortenson will not be signing the development agreement until the unit is formed. City Attorney Hart informed Council that the agreement provides for a one -time transfer to an unnamed entity, but that the city would prefer to have the name of the entity as soon as possible. He further stated that it would be his expectation that Council would give legal counsel the authority to make non - substantive changes to the agreement. Mr. Lander responded that the entity will be Mortenson Properties, Inc., so there may be no need to address the one -time transfer. Attorney Hart informed Council that he discussed the proposed development agreement changes with Mortenson's legal counsel. He stated that there is a provision in the agreement regarding proration Page No. 5 June 3, 1997 relating to transfer and he would like to continue to work on that provision, to base proration on the number of years left. Treasurer Shaughnessy responded that the year 2006 is the end of the TIF district. Mayor Mertensotto stated that there will be a one time transfer from Mortenson Properties to the new entity and that Brown Institute must also come up with the financing to do the development portion of the project. He stated that Mortenson wants to be sure that in the event of a default, if Mortenson has to foreclose on the mortgage, they receive the benefit for the pro rated period. He further stated that the mortgagee does not want to be held responsible for environmental problems since they do not hold the property. Attorney Hart explained how the agreement has been changed for clarification purposes, and stated that the changes are not substantive. Councilmember Krebsbach pointed out that the Planning Commission raised issues relating to parking. f ) Mr. Lander responded that Brown Institute operates three shifts and most of the students drive to school from their jobs, so proposed parking spaces for the school's parking are much greater than the Zoning Ordinance requires. He informed Council that Mortenson is required by Brown Institute to provide 750 parking spaces on site. He stated that the parking stalls at the existing school are 7'6" wide. He stated that he did not intend to provide 9 foot stalls on the whole property and has proposed eight foot stalls, which helps limit the size of the parking lot and still meets the needs of the school. He pointed out that the Zoning Ordinance requires 270 stalls for the facility. He informed Council that there are site constraints that would not allow striping 9 foot stalls, but that he could stripe 9 foot stalls to meet the 270 required spaces and then stripe the rest smaller. He stated that he would prefer to be up front with the city and thus is asking Council to allow 8 foot wide striping of the lot. Mayor Mertensoto asked how many spaces there would be if the stalls were striped at 9 foot rather than 8 foot. Mr. Tom Lefich, project engineer, responded that 9 foot striping would provide 670 stalls. Page No. 6 June 3, 1997 Mr. Lander stated that the parking lot aisles have been laid out so that the stalls could be re- striped at nine feet in the future. He explained that some will be 8'4 ", others will be 8'6" and others will be 8 foot. He stated that the 750 spaces is based on the parking needs at the existing Brown Institute, which reflects the school's needs. Mayor Mertensotto asked what size spaces are provided at shopping centers. Mr. Lander responded that those stall sizes range all over the place, but that the proposed parking is based on architectural standards. He stated that the national standards for this type of parking lot range from 8 foot to 9 foot. Mayor Mertensotto asked how much it would cost to restripe the lot to 9 foot stalls if the city required it in the future. Mr. Lander responded that it would cost between $5,000 and $7,000 to re- stripe. He informed Council that he has an agreement with the school to provide 750 spaces and would have to come up with some alternative that would allow 750 spaces. He stated that half of the parking area is a new lot and the other half is an existing lot that will be repaired and seal coated. Mayor Mertensotto stated that if Council follows the Planning Commission recommendation for 9 foot stalls and fmds it was a mistake, Council would not want to put the school in a bind. He asked if there is any way the city could participate in striping in the future. City Attorney Hart responded that if a decision is made today to spend a certain stun by a date certain to restripe the lot, that would be allowable. Mr. Lander stated that the school has been at its existing location for ten years, so he has a strong feeling on what the parking needs are. He stated that he would rather that Council allow striping at 8 feet and if the school finds in the future that the lot has been over - striped, then he would come back and re- stripe it. He stated that the alternative would be to provide the parking to meet code (249 stalls) at nine foot and stripe the remaining stalls to a lesser dimension to meet the 750 spaces, but that would mean that some of the stalls would be striped to 7 foot 6 inches, which is what they are now. Page No. 7 June 3, 1997 Councilmember Huber stated that he sees no problem with 8 foot stalls. He further stated that it does not seem to make any sense to have 250 stalls at nine feet and the rest undersized, and pointed out that Brown Institute is apparently happy with 8 foot stalls. Mr. Lander responded that asked that Council let him stripe 8 foot stalls and if the school finds that there are too many stalls he will come back and stripe the lot at 9 feet. Responding to a question from Mayor Mertensotto, Administrator Batchelder stated that the city has allowed a variance for 8%2 foot stalls for Northland Insurance. Mayor Mertensotto and Councilmember Koch stated that they do not have any problem with eight foot stalls. Attorney Hart stated that Council needs to draw a distinction in this case. He stated that if the applicant were coming to Council and saying that he could only achieve the number of spaces on the site that the code requires, that would clearly require a variance, and that is what has been done in the past. He pointed out that in this case, there is enough geographical area to accomplish the code requirements with nine foot stalls, but what the applicant is doing is deciding that they need more spaces and from a financial and practical standpoint they need more spaces. He stated that from a land use standpoint, the facility will have more than enough spaces to meet the code. He informed Council that approving the 8 foot spaces will not set a precedent for others who may come to Council in the future because Mortenson does in fact have the ability to meet the number of spaces required. Mayor Mertensotto stated what Mortenson is telling Council is that the school needs 750 spaces and in order to meet that by creating nine foot spaces they would have to enlarge the blacktop. He stated that he would not want to see expanded blacktop. Mr. Lander responded that there is a great deal of green space on the site, and expansion of the driveway area to accommodate 750 nine foot stalls would require Mortenson to remove a significant number of trees on two acres of property that is heavily wooded. Councilmember Krebsbach stated that she would like to determine that cars will fill the lot and that reducing the width is not just to provide closer parking. Page No. 8 June 3, 1997 Mr. Lander responded that this is why he offered the alternative of coming back and striping at nine feet, but that the number of stalls proposed is based on usage at the existing Brown Institute facility. Councilmember Krebsbach pointed out that Mortenson will still be creating additional parking if it uses 8 foot widths. Mr. Lander agreed, but stated that the difference is that right now the proposal to expand the parking area would involve taking out 30 to 40 cottonwood trees whereas if nine foot stalls are required he would have to remove many good trees. By striping 8 foot stalls, he can expand and create the parking that is needed and there will still be screening and a campus setting for the building. Responding to a question from Councilmember Krebsbach regarding signage, he stated that a pylon sign will be located at the corner of the property visible from I -494 that will simply say Brown Institute. He further stated that the signage for the facility is well within the ordinance in terms of size, etc. He informed Council that Mortenson will maintain and replace the Cray monument sign and install signage building that says Brown Institute. Councilmember Krebsbach stated that she would be willing to agree to 8 foot stalls if that would mean that fewer trees will be removed and that Mortenson will retain the integrity of the site. Mr. Lander responded that Mortenson is ready to close on the building and start construction by the end of the week. He informed Council that the building must be ready to open before the end of October. Responding to a question from Councilmember Krebsbach, he stated that two entrances are being developed. He informed Council that there will be no changes made to the existing driveway to the upper lot, but the driveway to the lower lot will be expanded to 25 feet wide at the recommendation of the City Planner and staff. Councilmember Krebsbach asked about conditions eight and nine of the Planning Commission recommendation regarding safety and public transit. Mr. Lander responded that all of the lots will be lighted and there will be security guards on site who can be paged to walk students to their vehicles. He stated that the difficulty with the condition recommended by the commission is that reads that Brown Institute take measures for student security, and Brown feels that they do that now and will continue to do so. Page No. 9 June 3, 1997 Mayor Mertensotto suggested that the language be revised to state that Brown Institute is encouraged to continue to address student safety. Regarding transit service, Mr. Lander stated that the present school at Lake Street and Hiawatha Avenue is in one of the best locations for transit services, yet the use of transit service to the facility is only in the 8% range. He informed Council that he will gladly work with city staff to work with the Metropolitan Council to upgrade transit service. Mayor Mertensotto informed Mr. Lander that when transit representatives appeared before Council recently, Council asked them to look at providing transit service to the school. He suggested that the language in.condition 9 be restated to read that Brown Institute is encouraged to address public transit services for its students. Councilmember Koch indicated that she did not feel that conditions eight and nine are necessary but that she supports approval of the conditional use permit and would therefore vote to approve the revised resolution. City Attorney Hart stated that if Council approves eight foot stalls it would not be setting precedent because there is more than adequate space to provide parking in accordance with the Zoning Ordinance. It was the consensus to direct the city attorney to work with Mortenson on the pro- ration provisions in the developers agreement and to approve technical amendments to the agreement which were developed by the city attorney. Councilmember Krebsbach moved adoption of Resolution No. 97- 26, "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR MINING FOR MORTENSON TO RELOCATE BROWN INSTITUTE TO THE CRAY BUILDING UNDER CERTAIN CONDITIONS," as revised with respect to conditions 7, 8 and 9 (condition 7 revised to state that all parking spaces be striped 8' x 20' as per the applicant's specific need), and to approve the revised draft of the developer's agreement and authorize its execution by the Mayor, along with authorization for the issuance of signage and building permits for signage and building modifications. Page No. 10 June 3, 1997 Councilmember Huber seconded the motion. Ayes: 4 Nays: 0 CABLE UPDATE Council acknowledged a letter from NDC -4 and an overview of NDC -4 Joint Powers Agreement discussion. Executive Director Jodie Miller and Mendota Heights NDC -4 Citizen Representative Mike Sokol were present for the discussion. Ms. Miller gave a history of NDC -4 and information on the services it provides. She stated that right now the commission feels it is important to discuss with member cities the alternatives for the future.. She then reviewed options. Mayor Mertensotto stated that currently no city can withdraw during the existing franchise before the year 2000, and thereafter cities must give six months notice before withdrawing. Mr. Sokol stated that under federal law, NDC -4 has a three year period of time during which a cable company can approach the commission regarding franchise renewal. He explained that the commission needs to know if the seven cities intend to stay in the group. He informed Council that in the next few months the franchise will be transferred to a new owner, and renewal of the franchise and the transfer are two separate issues. He stated that the commission will need to gt some kind of indication from the cities on whether they would prefer to stay in this type of arrangement. Mayor Mertensotto responded that it was very difficult to amend the franchise agreement. He asked what would happen if one of the larger cities pulls out and takes the majority of the customers with it. He stated that there is an agreement in force right now and he thinks the commission has to make the assumption that if all things are equal, those cities will continue, but he did not know how the commission could get a formal commitment from the cities. Mr. Sokol stated that he needs to find out if Council is satisfied with what has occurred and that Council would like NDC -4 to continue. He stated that if the commission finds out that a major city is not going to stay with the group, then it will have the ability to contact another city to join. Mayor Mertensotto responded that all the cities would have to be informed if one of the major cities were to indicate withdrawal, but Page No. 11 June 3, 1997 for now the commission has to negotiate with the assumption that all seven cities will continue. Mr. Sokol stated that he needs to know that he has an understanding that Mendota Heights feels that what has gone on in the past has been satisfactory and that if that continues Mendota Heights will remain — whether Council is satisfied with the arrangement of the past and satisfied with the way things have progressed. Councilmember Krebsbach stated that she thinks that everything has worked well, but there are people who want programming they cannot access. Ms. Miller responded that NDC -4 has continued to grow in the number of programs it is preparing and providing. Councilmember Huber stated that what the NDC -4 representatives need from Council is: an indication of whether Council is happy with what has been going on with NDC -4; feedback on whether Council is thinking about staying in the group; and, whether there are changes Council would like to see. Ms. Miller informed Council that the cable operator must cover all of the costs of transfer of ownership of the cable system. Councilmember Krebsbach asked that the commission make sure that the system remains state of the art. Ms. Miller informed Council on new equipment which will be delivered to the city soon. FIRE STATION SITE Council aclalowledged a memo from Public Works Director Danielson regarding concerns over the old fire station site. Mrs. Laurita Weinzettel and Mr. Cliff Kirchner were present for the discussion. Mayor Mertensotto asked Mr. Kirchner if he had arrived at an agreement with staff on what can be done. Mr. Kirchner responded that he spoke to Mr. Danielson last week and indicated that he would like to keep the bottom for a turn around (so that his tenant can maneuver his trucks) and just have the side fenced. Page No. 12 June 3, 1997 Mayor Mertensotto responded that if the city installs a fence, it would be from the front property line all the way to the existing hedge. Mrs. Weinzettel stated that she came before Council a year ago and asked Council what they would do with the property next door to her home, and since then the old fence was taken down and some fence posts were cut off, but that is all that has been done. She stated that the lawn has not been cut yet this summer and it is full of weeds and gets no maintenance. Mayor Mertensotto informed Ms. Weinzettel that the city will install a wooden fence all the way down the property line. He stated that he has driven down the Weinzettel driveway and appreciates Mrs. Weinzettel's concerns, and felt that a staggered board fence six feet tall would help. He stated that the fence will at least screen the adjoining property to some extent, and that the city will also establish a maintenance program for the old fire station site. He informed Mrs. Weinzettel that the city will also install no parking signs along the front and if that does not work a chain link fence will be installed. Mr. Kirchner stated that he told the landscape firm that the operation has to be gone in six months. Councilmember Huber moved to authorize installation of a six foot high fence from the front property line of the old fire station property to the lilac bushes along the south property line and also to authorize installation of no trespassing and no parking signs in the front, and, if that does not work, to install a cyclone fence, and also to direct staff to develop a program for maintenance and erosion control on the site. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 CASE NO. 97 -09, Council acknowledged a letter from Mr. Martin Coyne, Vice GEORGE'S GOLF TEE President of AMB Institutional Realty Advisors, Inc., requesting Council reconsideration of an application from Opus Corporation for redevelopment of the George's Golf Tee site and reconsideration of AMB /Ameritech Pension Trust's (APT) request for Tax Increment Financing assistance. Council also acknowledged an associated report from Administrator Batchelder. Mr. Coyne, and Mr. David Bangasser, from OPUS, were present for the discussion. Page No. 13 June 3, 1997 Mr. Coyne explained that APT Mendota Heights, Inc., a subsidiary of Ameritech, is requesting Council approval for permission to reinstate Case No. 97 -09 which was withdrawn on May 20. He stated that APT also requests approval of the plan for construction of a single story 150,491 square foot office- warehouse as previously submitted and modification of the TIF proposal in accordance with his letter. Mayor Mertensotto responded that if Council re -opens and reinstates the application, the same Planning Commission recommendations would apply and all of the plans which have been submitted for the project would be reinstated. He stated that one of the problems with the application was on the transfer of TIF. He stated that it has been discovered that there had been a past situation with the VGC building where United Properties was the developer and there was an up front stated transfer. He informed Council that when it was discovered that Council had allowed that transfer, he told Mr. Coyne that the matter could be brought to Council for reconsideration if there is a stated up front transfer, and if APT would accept $250,000 in up front TIF as the total TIF, based on the amount of additional soil correction needed. He pointed out that the TIF would be effectively reduced from the initial request for $500,000 down to $250,000. Mr. Coyne responded that the conditions and the TIF amount are acceptable. Mayor Mertensotto informed Council that he had requested Administrator Batchelder to prepare an itemized list of all drawings, maps, commlulications and other documents that has been submitted with respect to the original application. Administrator Batchelder stated that the list has been prepared and is attached to the proposed approving resolution as Exhibit A. Mr. Coyne stated that he has reviewed the Exhibit and that it is correct, however there is also the issue of the rear yard setback variance. Mayor Mertensotto agreed, stating that a sixteen foot variance from the 50 foot from the rear yard setback requirement is needed. He informed Mr. Coyne that he is concerned that Mr. Coyne understand that if Council re -opens consideration, that reconsideration will be based on the items listed on Exhibit A. Page No. 14 June 3, 1997 Mr. Coyne agreed. He explained that Ameritech is the applicant and will be the developer for AMB Real Estate Trust. Councilmember Krebsbach stated that Mr. Coyne represented at the last Council meeting that the R.L. Johnson would be repainted. She asked if that commitment is still a part of the package. Mr. Coyne responded that it is no longer a part of the package as it stands now, because corners had to be cut because of the reduced TIF, but in developing the George's Golf site at some point in the future the R.L. Johnson warehouse will be painted as routine maintenance. He fiuther stated that he had also discussed removing the fence at 2360 Pilot Knob but neither fence removal nor landscaping at 2360 Pilot Knob is part of the proposal. He stated that at the last meeting he put those items on the table as being items he would be prepared to include, but that he is not including them in the application this evening. Councilmember Krebsbach moved to reopen the application to allow reconsideration of the project. Councilmember Huber seconded the motion. Ayes: 4 Nays: 0 RECESS Mayor Mertensotto called a recess at 10:00. The meeting was reconvened at 10:08 p.m. Mayor Mertensotto asked what the exterior finish of the building will be and if it will be the same on all sides. Mr. Bangasser responded that the same type of pre -cast material will be used on all four sides of the structure, and there will be geometric designs only on the front to depict the entrances. He explained that there will be architectural grill work and recessed entries on the front of the building. He stated that the rear of the building will have the same pre -cast and will have reveals but no glass. He explained that the reveals are grooves in the pre -cast material, and that the material will be smooth and will look like Dry -vit. He informed Council that the overhead doors will replace the glass in the back and that he envisions that the same masonry stain scheme will be used on all four sides of the building and that the blue banding at the top will go all around the building. He stated that there will not be scrolling or grillwork above the docks and that there will only be docks where they are needed by tenants. With respect to the need for variance, he explained that only about 400 square feet of the building (the corner) Page No. 15 June 3, 1997 needs the variance. He stated that there are existing evergreen trees along that trail to break up the view of the building from the trail. Responding to a Council question on signage, Mr. Bangasser stated that he envisions there will be some type of monument sign and also some sort of identification over the entrance for each tenant and possibly something just below the architectural grillwork. He informed Council that he does not believe the signage will be lighted, except for indirect lighting on the monument sign. Mayor Mertensotto informed Mr. Bangasser and Mr. Coyne that the city does not want lighted signs on the building. Councilmember Krebsbach stated that she is interested in the triangular piece of adjacent property being maintained. She also asked if there is documentation that the soils correction will cost $250,000. Mr. Bangasser responded that the parcel is not part of the project and that APT is not purchasing it. With respect to soils correction, Mr. Coyne stated that the soils report has been submitted to city engineering for review. Mayor Mertensotto informed Mr. Coyne that the TIF is addressed in a separate agreement which is not before Council this evening. He stated that there will be an understanding that TIF is limited to $250,000 up front, that there will be no pay -as- you -go TIF, that APT will be the developer and AMB Real Estate Trust will be the transfer entity, and that there will be no pay back provision because this is an up front disclosure. He stated that once Council approves the project, APT can make application to the code enforcement officers for a building permit, but that the TIF agreement must go forward or there will be no TIF payment. Councihnember Koch moved adoption of Resolution No. 97 -27, "A RESOLUTION GRANTING A BUILDING PERMIT AND A VARIANCE OF SIXTEEN FEET TO THE REAR YARD SETBACK FOR AN OFFICE /WAREHOUSE DEVELOPMENT AT GEORGE'S GOLF TEE," which also includes Attachment A. Councilmember Huber seconded the motion. Ayes: 4 Nays: 0 Page No. 16 June 3, 1997 Council recognized Mr. & Mrs. George Waters, owners and operators of George's Golf Tee and expressed appreciation for the service they have provided to the community. FRIENDLY HILLS SOD Council acluiowledged a report from Engineer Mogan regarding Friendly Hills sod replacement, including recommended conditions, and a memo tabulating bids received for the repair of sod in Friendly Hills and restoration of the old fire hall site. Council also acknowledged letters from Mr. and Mrs. Mark Aune, 708 Decorah Lane, and Ms. Darlene Melquist, 2250 Apache Street. Mayor Mertensotto pointed out that one of the conditions is that the city will restore sod for every homeowner who makes a $50 deposit, and, if the sod is growing by September 1, the deposit will be refunded. Engineer Mogan reviewed the bids, stating that LaPointe Landscaping, the low bidder, was responsible for the sod in the Curley's project and did a great job. He did not have any reservation about recommending LaPointe. He informed Council that sod could be replaced every month and it would not grow unless the homeowner takes responsibility for it, which is the rationale behind recommending a deposit. If the grass is growing by September 1, the deposit would be returned. Mr. LaPointe, owner of LaPointe Landscaping, was present for the discussion and informed Council that September 1 would be a satisfactory date. He stated that he will bill the city on a square foot basis. With respect to the fire hall site, he stated that he will place and grade four inches of black dirt on the site, install the sod and water it for thirty days. Councilmember Koch moved to authorize Engineer Mogan to proceed with the Friendly Hills sod replacement program predicated on a $50 deposit per homeowner, with refund of the deposit if the grass is growing by September 1, and to accept the low bid of LaPointe Landscaping for the Friendly Hills sod replacement and installation of four inches of topsoil, leveled, and sod at the old fire hall site, including watering for thirty days. Councilmember Huber seconded the motion. Ayes: 4 Nays: 0 Engineer Mogan was directed to notify the Friendly Hills neighborhood about the sod replacement program and to further Page No. 17 June 3, 1997 notify the neighborhood that applications for sod replacement must be received no later than June 20. ENTERPRISE RENT -A -CAR Council acknowledged a memo from Administrator Batchelder regarding a request from Mr. Dale Glowa, United Properties, for Council consideration of whether automobile storage lots could be considered a conditional use in the industrial district. Council acknowledged a letter from Mr. Glowa indicating the Enterprise Rent -a -Car has expressed interest in relocating its regional headquarters in the proposed Phase II of the Enterprise Corporate Center and wishes to construct an outdoor surface parking lot across Pilot Knob Road. Mayor Mertensotto pointed out that Council has never approved large spans of blacktop for the purpose of storing vehicles. It was the consensus that while Council appreciates Mr. Glowa's efforts, it has no interest in allowing this type of use in the industrial area. DAKOTA BANK Council acknowledged a letter from Dakota Bank President John Seidel requesting approval to change the building plan for the bank to allow rock face block instead of Kasota stone. Council also acknowledged a copy of a letter from ECI Building Contractors to Mr. Seidel regarding an increase in the building contract if rock face block with a block cap is replaced with Kasota Stone with a stone cap. Mr. Seidel stated that the cost for Kasota stone would be close to $70,000 because there would be a three week delay in the project which would cost the bank additional funds. Mayor Mertensotto stated that the increase in cost is not Council's doing. He pointed out that the way the project is approved right now is with Kasota stone. He stated that when the bank representatives increased the building size and added a second story and removed the gable roof , which was one of the features of the original building design, the trade -off was to be that the building would be adorned with Kasota stone. He informed Mr. Seidel that Council allowed the change in the plan which would increase the building size because Mr. Seidel sold Council on the Kasota stone and now he is saying there will be no Kasota stone. He stated that if there is no Kasota stone, the quality of the building will be reduced. He pointed out that the city put a significant amount of public money (TIF) into Page No. 18 June 3, 1997 development of the site and the bank is now reducing the quality of the building. Mr. Seidel responded that lie is before Council this evening because when the final plans for the building were approved one of the issues that was discussed was stone on the building. He stated that Council was adamant on Kasota stone and he went ahead with the understanding that after the bids were received if the cost for the stone was unreasonable Council would allow him to come back to discuss the issue. Mayor Mertensotto responded that if Mr. Seidel did not know the cost or whether it would be feasible, he should not have proposed the stone in order to get the project approved. Mr. Seidel stated that the last time he came before Council he agreed to spend $10,000 for the frontage road and he mentioned that the bank project was $40,000 over estimate. The overage has come in at $56,480, and now it is closer to $70,000 over estimate if stone is used. He stated that the bank is the owner of the building and the bank representatives do not feel that rock face block in place of Kasota will diminish the quality of the building. He fiuther stated that the owners of the property felt that Kasota was still an issue and after the final analysis felt that whether the overage is $56,000 or $70,000, the building will still be a high quality project using rock face block. Councilmember Huber stated that his recollection is that when Council first discussed the issue of Kasota Stone versus rock face, Mr. Seidel's presentation was that there was definitely a concern on the bank's part on what the stone would cost but Council approved the project with Kasota. He further stated that, speaking for himself, his approval of the project did not turn on Kasota versus rock face block. Councilmember Krebsbach stated that her interest was in the retaining wall, and that it be Kasota stone. She further stated that Council wants consistency between the building and the wall. Mayor Mertensotto stated that he has discussed an offer with Mr. Seidel wherein he proposed that the city contribute $22,500 in up- front TIF to offset the $45,000 which Mr. Seidel's letter indicated would be saved if rock face block were used. He further stated that he feels very strongly that from the amount of public money which has gone into the project that the city needs a high quality building Page No. 19 June 3, 1997 and the bank presented the building with Kasota stone. He informed Mr. Seidel that he is not pleased with the approach of presenting something and then coming in with a change later, particularly since the city is investing $235,000 in TIF. He felt that the city has been reasonable in offering the change in the developer's agreement to provide the additional up -front TIF in order to keep that Kasota stone. He pointed out that the city did not spare any expense in designing City Hall and that Council wants to follow that same d6cor and quality through the intersection. He stated that the city has worked in a cooperative manner with the bank and SuperAmerica and has made a significant financial investment in the project and to clean up the site. Mr. Seidel responded that he feels that the bank has also been cooperative and that the last time he came before Council there was a strong indication of the bank's cooperation by its participation in the frontage road. Mayor Mertensotto stated that Mr. Seidel made the offer for the frontage road to keep the access open and the city is paying the majority of the cost for the loss of state funding. Mr. Seidel responded that he also wants the city to be proud of the bank facility and that he has received approval from his partners for 50% of the cost of Kasota. Councilmember Klebsbach informed Mr. Seidel that the record is clear that the wall is to be Kasota stone. Councilmember Huber asked Mr. Seidel if he is saying that there could be Kasota on the building and rock face block on the wall. Mr. Seidel responded that if the construction contract is changed the cost would be an additional $56,000. Mayor Mertensotto stated that the city cannot do any more pay -as- you-go TIF for the project. Councilmember Krebsbach stated that the building that was proposed by the bank representatives is costing more than expected and Mr. Seidel is now asking the city to pay half of the cost of the stone. She asked Mr. Seidel why he represented in the first place that Kasota stone would be used. She suggested that perhaps Mr. Seidel never planned to use Kasota, but that is the way it was presented to her and Councilmember Smith in the meetings they Page No. 20 June 3, 1997 attended, on behalf of Council, with the Mr. Seidel and the chairman of the board of Dakota Bank. She stated that Kasota stone was in Mr. Seidel's presentation at that time, and the drawing of the building that was presented to Council included Kasota stone. Mayor Mertensotto added that Mr. Seidel presented a plan to the City Council subcommittee and later came back before Council and changed that plan to add the second story. He again offered that the City would contribute an additional $25,000 in TIF as an up -front payment so that Kasota can be retained. Mr. Seidel responded that he has explained to Council why the project is over budget and that he can commit to a $35,000 city contribution but no less. He stated that Council has to decide what it wants to do with the project and that he thinks he is making a reasonable request. Councilmember Koch stated that the letter from Mr. Seidel talks about wanting to change from Kasota to rock face block, and in the minutes from the first meeting with Council Mr. Seidel asked to be allowed to come back to discuss the matter if the cost for Kasota was too great. She stated that that is what Mr. Seidel is now saying, and also that he wants to change the Kasota to rock face block on the building and sign (wall) to be consistent. Councilmember Krebsbach stated that she thinks Council should forget the Kasota, since it is apparent that the bank never intended to use it. Councilmember Huber stated that he does not feel that the bank is doing a "big switch" on Council and that he felt at the Council meeting when the plan was approved that there was some real reluctance on the bank" part to use Kasota. Mayor Mertensotto responded that as far as he is concerned, the Kasota stone was proposed by the bank in order to get the plan approved with a change to two story and the change in decor. He further stated that, because of the public money invested, Council wants the project to be high quality. He informed Mr. Seidel that if the majority of Council wants to allow the change to rock face block, they could certainly grant approval but that he will not support a motion to that affect. Page No. 21 June 3, 1997 Councihmermber Huber moved to allow a change in materials to allow the replacement of Kasota stone with rock face block on the bank building and wall. Councilmember Krebsbach seconded the motion. Ayes: 3 Nays: 1 Mertensotto CELLULAR/PCS ORDINANCE Council acknowledged a memo from Administrative Assistant Hollister regarding the draft cellular/PCS ordinance. Assistant Hollister reviewed the history and process used to develop the draft and asked if Council wishes to establish a public hearing date this evening, if Council wishes to make comments about the ordinance this evening and how Council envisions the appropriate timing and format for input from the cellular industry. It was the consensus to schedule Planning Commission discussions with industry representatives in June, followed by a Planning Commission hearing in July and Council hearing in August, which would allow an ordinance to be in place by September. Councihmember Huber pointed out that the draft ordinance does not address C.O.W.S. It was the consensus to direct staff to inform the Planning Commission that anti -COW language should be included in the ordinance. RECREATIONAL VEHICLE Council acluiowledged a memo from Assistant Hollister along ORDINANCE with a draft amendment to the Zoning Ordinance relative to recreational vehicle parking and storage. Administrator Batchelder stated that the intent of the existing ordinance language is to keep recreational vehicles in the rear or side yard, but the ordinance is ambiguous as to what the side yard is. He further stated that the intent of the ordinance is to keep recreational vehicles behind the front of the house in the side or rear yard. He also informed Council that the other ambiguity in the existing language is when does parking become storage. Mayor Mel tensotto responded that Council has always interpreted the front yard to be the portion of the property in front of the house from side lot line to side lot line. With regard to parking versus storage, he felt that the ordinance should define storage on a time (hourly) basis. Page No. 22 June 3, 1997 Council referred the draft ordinance to the Planning Commission with direction to the Commission to set the public hearing. COMPREHENSIVE PLAN Council acknowledged a memo from Assistant Hollister regarding proposals received from consultants interested in preparing the City's Comprehensive Plan update. Administrator Batchelder informed Council that RFP's were developed and submitted to consultants, and the current city planning consultant, McCombs Frank Roos Associates, submitted a very good proposal. He recommended that the city contract with McCombs. It was the consensus of Council to accept the proposal of McCombs Frank Roos Associates, Inc. and to notify all of the firms which submitted proposals. DISPUTE RESOLUTION Council acknowledged a memo from Administrator Batchelder in CENTER response to a request from the Dispute Resolution Center for a $500 donation to help support the Center's operations. Administrator Batchelder informed Council that the city has referred several mediation cases to DRC but the six cases that were referred to in the Center's letter to the city were not city referrals. Mayor Mertensotto stated that the city gets so many requests for donations that Council cannot accept them all. He noted that a $500 contribution was made to DRC last year but that he thinks the Center should do better advertising rather than asking for donations. He also pointed out that the services of DRC are not free. It was the consensus of Council to deny the request. IVY HILL PARK Councilmember Koch stated that the condition of Ivy Hill Park has not improved and now the grass in the upper section of the park is not even being cut. Administrator Batchelder responded that staff will be bringing recommendations to Council at the next meeting on how to fix the berm area. Regarding the mowing, he stated that the public works department has had difficulty getting seasonal help but will hopefully hire individuals soon. Mayor Mertensotto suggested that the city consider hiring part-time employees who are willing to work less than 40 hours a week to mow some of the small pieces of city property. Page No. 23 June 3, 1997 COUNCIL COMMENTS Councilmember Krebsbach commended the Planning Commission on its deliberative efforts. She also expressed appreciation to Public Works Director Danielson and Engineer Mogan on the notifications that have been given to Tilsen neighborhood residents. She also asked whether something can be done to reduce the dust coming from the streets that are being torn up. ADJOURN There being no further business to come before the Council, Councilmember Huber moved that the meeting be adjourned. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 11:42 o'clock P.M. Kathleen M. Swanson City Clerk ATTEST: j Charles E. Mertensotto Mayor LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL June 3, 1997 Concrete/Masonry Contractor License Northwestern Masonry Excavating Contractor License Dean's Construction Co State Mechanical Inc. Gas Piping Contractor License Roseville Plumbing & Heating, Inc. HVAC Contractor License Roseville Plumbing & Heating, Inc. S & S Plumbing & Heating General Contractor License Countryside Pools Inc. Keller Residential, Inc. M J Construction Exteriors Inc. M. A. Mortenson Company Nardini Fire Equipment Co., Inc. Tappe Construction Vanman Construction Co. Drywall/Stucco Contractor License American Drywall K.M. Nelson Stucco, Inc. Sign Contractor License ASI Sign Systems Landscape/Tree Service Contractor Accent Lawn and Landscaping Inc.