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1996-05-07 Council minutesPage No. 1 May 7, 1 996 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, May 7, 1996 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, 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, Krebsbach and Smith. AGENDA ADOPTION Councilmember Krebsbach moved adoption of the revised agenda for the meeting. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Krebsbach moved approval of the minutes of the regular meeting held on March 19, 1996. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 Abstain: 1 Smith Councilmember Huber moved approval of the minutes of the regular meeting held on April 2, 1996. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 Councilmember Huber moved approval of the minutes of the Board of Review meeting held Tuesday, April 2, 1996, with the addition of the residents' sign in sheet as an exhibit to the minutes. Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 Abstain: 1 Krebsbach Councilmember Smith moved approval of the minutes of the adjourned Council meeting held on April 30. Councilmember Koch seconded the motion. Ayes: 5 Nays 0 CONSENT CALENDAR Councilmember Krebsbach moved approval of the consent calendar for the meeting, revised to move item g, water service connection Page No. 2 May 7, 1996 policy, to the regular agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the April 10, 1996 Airport Relations Commission meeting. b. Acknowledgment of the minutes of the April 23, 1996 Planning Commission meeting. c. Acknowledgment of the Treasurer's monthly report for April. d. Acknowledgment of the Code Enforcement monthly report for April. e. Approval of a wetlands permit for Mr. & Mrs. Dave Palmer to permit replacement of an existing deck at 675 Ivy Falls Court. f. Authorization for the Mayor and City Clerk to execute a Quit Claim Deed transferring the sanitary sewer easement for an inverted siphon connection under the Mississippi River to the Metropolitan Council. g. Acknowledgment of the renewal of the Lease Agreement with U.S. West/New Vector Group for the existing antennas on the water tower. h. Authorization for the Mayor and one Councilmember to execute the certification form to enable the city to receive Local Performance Aid payable in 1997. i. Authorization for issuance of a building permit to Garven Greetings to allow exterior changes to 1450 Northland Drive. j. Acknowledgment of receipt of a franchise tax fee refund from NDC -4 and authorization for payment of $3,338 for continued funding of the "Insight" program. k. Direction to schedule public hearings for liquor license renewals for Mendota Liquor, Marriott Corporation, Mendakota Country Club and Somerset Country Club. 1. Approval of a three -month unpaid leave of absence for Kim Blaeser from June 3 to September 9, 1996. m. Approval of the permanent appointment of Lee Flandrich as Police Officer. Page No. 3 May 7, 1996 n. Adoption of Resolution No. 96 -24, "A RESOLUTION AMENDING THE CITY'S COMPREHENSIVE PLAN TO ALLOW FOR HRA SENIOR HOUSING." o. Approval of the list of licenses dated May 7, 1996 and attached hereto. p. Approval of the List of Claims dated May 7, 1996 and totaling $340,150.69. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 WENTWORTH WATERMAIN Council acknowledged a memo from Civil Engineer Mogan regarding adoption of a water service connection policy for the Wentworth watermain project. Mayor Mertensotto stated that the property owners will derive some benefit from the project because they will have a hydrant for fire protection, but an appraisal which was done for the city found that the value would not be as great as the proposed assessment. He further stated that the report from Engineer Mogan indicates that there would be substantial savings if service connections are not installed, and asked how substantial the savings would be. He also asked what the distance will be between the hydrant connections. Public Works Director Danielson responded that the savings would be about $1,200 per service. With respect to the hydrants, he stated that they will be strategically located so that the service connections could be made from them to serve the homes. He explained that St. Paul Water would like the city to connect the services off of the hydrant leads. He stated that there may be requests from home owners for water service, and there may be problems because the homes will have varying lengths of distance to run. Also, he stated that he does not think it would be advisable to disrupt the road surface. Mayor Mertensotto responded that he believes it would be penny wise and pound foolish not to install the services now to the property lines. He felt it would be a very big mistake to set a rate now for a connection charge but that the city should instead keep track of its costs from this date and use that as the bas for future connection charges. He stated that the charge would be determined at the time of connection based on current construction costs. Page No. 4 May 7, 1996 Councilmember Smith moved to amend the proposed connection policy resolution to provide that services be installed on Wentworth Avenue for the existing property owners and that the hook up charge will be determined on an annual basis, with direction to staff to prepare a formal resolution for the next Council agenda. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 Staff was directed to notify the property owners that the assessment has been canceled but if they do hook up to the water system in the future, they will be required to pay a connection charge that would embody a normal assessment. LLOYDS FOODS T.I.F. Council acknowledged a memo from Fire Marshal Kaiser regarding a request from Lloyds Food Products for tax increment financing assistance in the installation of an early warning emergency action system and repairs to the fire protection system at the Lloyds building located at 1455 Mendota Heights Road. Fire Marshal Kaiser was present for the discussion. Mayor Mertensotto stated that the Fire Marshall has asked Lloyds to install the alarm system to protect the occupants of the building and fire safety personnel in the event of a spill of anhydrous ammonia at the facility. Treasurer Shaughnessy informed Council that under the request, Lloyds would pay the cost of the fire safety improvements and alarm system, at an estimated total cost of $80,000, and the city would pay one half of the cost upon completion. Lloyds would be required to bring the city proof after completion that they have paid the total cost and then the city would reimburse one -half of the cost up to a maximum of $40,000. Councilmember Smith stated that she is a little concerned that the existing lack of alarm system is grandfathered under the fire code. Fire Marshal Kaiser responded that if he had to apply a code that would become law in 1996, Lloyds could claim that it is grandfathered and the city would have to go to court to require the improvement. Mayor Mertensotto felt that the requests is a good trade -off: anhydrous ammonia is a hazardous material, and Lloyds has agreed to put in the early warning system in the event there is a leak in the anhydrous ammonia system. Page No. 5 May 7, 1996 Councilmember Krebsbach moved to authorize staff to prepare a T.I.F. agreement to assist Lloyds Food Products, Inc. in repairs to its fire protection system and installation of an early warning emergency action system to the extent of 50% of the cost up to a maximum of $40,000. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 IVY FALLS CREEK OUTLOT Council acknowledged a memo from Public Works Director Danielson regarding acquisition of Outlots A, B and C, Ivy Falls 2 °d Addition from the Ivy Falls Homeowners Association. Council also acknowledged minutes of past Council meetings at which the matter had been discussed. Mr. Jack Brassard, President of the home owners association, was present for the discussion. Mayor Mertensotto stated that the association owns three outlots and they are impressed with an easement running in favor of the city that the city needed in connection with the Ivy Falls Creek improvement project, but that is not the problem. He stated that the problem is owning land in a hazardous area as private property and the desire of the association to get out from under the cost of insurance and taxes which the association must pay. Mr. Brassard informed Council that everything has changed, as the property is no longer in its natural state and is no longer protected by the law that says that if it was held in its natural state there was some protection for the association. He stated that people ride bicycles and down the construction road now. Mayor Mertensotto responded that the city had anticipated that the road would grow back in its natural state but if people continue riding on the road it maintain its road state. He stated that if the city accepted title to the property, the existing signs would remain but the city would not become a "sacrificial lamb" to the people in the association who call to say that the police should respond because there are people on the outlots. He explained that it would be detrimental to the city to have the police constantly called about trespassing, etc., because the police force is not large enough. He informed Council that he is aware, by the telephone messages he has received, that there are very few who oppose giving the city title to the outlots but they are putting Council into the position of the governing body of the city coming between private property owners. He stated that many of the calls he received asked if the majority of the association membership should prevail when they want to get Page No. 6 May 7, 1996 out from underneath the expenses of the outlot, and he felt that there are some who think they can get the property into private ownership. Mr. Brassard responded that the association cannot get all of the property owners to agree. Mayor Mertensotto stated that the only other option is for the association to let the property go tax forfeit, and if the property is allowed to go tax title the city would likely notify the county that it would like to receive title to the land for conservation purposes. He informed the audience that the city would then use the land only for drainage purposes and would not maintain the area or make it a public attraction. He did not think the city should get involved in coming between the association members. He stated that all that anyone who objects would be able to do to stop the transfer would be to get a restraining order. Mr. Brassard stated that the association bylaws say that the majority governs, but he cannot stop those who oppose it from coming to Council and objecting. He further stated that there are many people now who say they refuse to pay dues to the association, and the problem the association faces is that over 70% of the people in the association want to get rid of the land. He informed Council that the association held a special meeting in February and a motion was made that he should proceed with transferring the deed to the city, and about 70% of the people in attendance were in favor of the motion. He asked if they are to be deprived because 30% do not want the transfer to happen. Councilmember Huber responded that his only concern is that this might set a precedent. He stated that some time ago, people in Park Place came to the Park and Recreation Commission to ask that the city take the tot lot off their hands and the commission said no. He explained that he is concerned that there are possibly other parcels of land where the neighborhood may have wanted to maintain a parcel of land as private property and then in the future will no longer want it and will want the city to take it. He was very concerned about the precedent that might be set by taking property off the hands of the neighborhood association. Mayor Mertensotto felt that this situation is unique. He stated that in the case of Park Place, the neighborhood wanted the city to take the tot lot into the city park system, which would have required maintenance by the city. He stated that Council does not want to get into owning and maintaining tot lots and does not want to add any more tot lots to the park system. Page No. 7 May 7, 1996 Councilmember Huber responded that in that situation, as in this case, Council would be taking on a situation where there is cost involved. He pointed out that the city would be relieving the association of a potential liability, and he felt that Council would be setting a precedent it might not want. He stated that he is not sure that the city could keep people off the property if the city owned it, as it would be public property. Mayor Mertensotto responded that the city could keep people off the property because someone could get injured. He stated that he was told by one of the neighborhood residents that he knew of two or three people who were injured in the falls. Mr. Brassard informed Council that the association is paying insurance on the property now. He felt that this is unique because previous to the time that the city installed the storm sewer system there was no problem. Councilmember Smith asked if Council could agree in principle because of the difficulty with respect to insurance. She stated that she has heard conflicting reports that insurance is available , and eventually the area will grow over and the hazard will be reduced. She further stated that she is not familiar with the association bylaws but that it has been represented to her that approval of 2/3 of the owners of all the lots is needed. She stated that it is her understanding that at least some of those who live adjacent to the outlots want to own the property. Mr. Brassard responded that the issue was raised at the membership meeting and 70% voted against it - 59 people voted against transferring the property to the adjacent property owners. He informed Council that the association has been discussing the transfer of the outlots for three years and for an entire year the people who are objecting did not come up with any suggestions other than to increase the insurance. Councilmember Smith stated that one of her primary concerns is that there are some very strong feelings about the issue and while Council has agreed in principle to take the property, there is controversy over whether the strict guidelines of the association have been followed. She was also concerned about precedent. She stated that she would like to see the association try again to gain consensus. Mr. Brassard responded that it would be impossible, and stated that he has been working on the matter for three years. Page No. 8 May 7, 1996 Councilmember Huber suggested that perhaps mediation services could be of assistance. Councilmember Smith stated that with the status of dissent she does not think the city should get in the middle at this point. Mayor Mertensotto informed the audience that when a an area around water is platted now, lots are platted to the water line and the city requires a twenty foot easement along the shore line. He stated that the city would never again allow a common area to be platted around the creek. He stated that if the city had title to the property it would not want people on the property because of the hazardous nature of the reaches of the creek. Mr. Brassard informed Council that he took over the presidency of the association because no one else wanted it, and he has acted within the bylaws. He stated that 70% of the people want to get away from the association and to do that, the association must get rid of the property. He explained that the association would stay in existence by vote of 70% of the members every ten years and that it is automatically continued every ten years. Councilmember Smith stated that the deed that was presented to the city indicates that if the city does not comply with the stipulations of the deed, the association would have the right to take the property back. She stated that if there was no longer an association, those who want the property would have little recourse. Mr. Scott Spisak, 714 Sylvandale Court North, stated that his property overlooks the outlots. He stated that this is an emotional issue that is beginning to divide some of the neighborhood and he did not feel it should be before Council this evening, that to his knowledge there has never been a claim against the association for injuries, and the whole issue is one of liability and insurance, and, tied into that, the dues. He stated that the original bylaws state that the association is a corporation, so there should be no personal liability to the members, and the corporation shall be perpetual, but recent bylaws changes by the board now allow for dissolution of the association. He felt that if the association maintains its insurance there should be no liability, and stated that it has never been presented to him that insurance premiums would increase because of the creek improvements. He stated that as long as the association maintains insurance there should be no individual liability and if people are concerned about personal liability, they could carry umbrella insurance over their home owners' insurance. Page No. 9 May 7, 1996 Responding to a question from Mayor Mertensotto, the association's treasurer stated that 73 of 102 people have paid dues to the association this year. Mr. Spisak stated that although the bylaws require approval of the property transfer by 2/3 of the members at a duly called meeting, he has never been at a meeting where the board got a 2/3 vote. He further stated that people have an attachment to the property and knew the liability risk when they bought their properties. He submitted a petition signed by 37 people who oppose the transfer. Mayor Mertensotto stated that it is not uncommon for associations to have disputes, and that Council must look at what is best for the city. He stated that Council is not really concerned about changes in the bylaws, but that there are some homeowners in the area who immediately call the police department when something happens near the creek, and the police cannot respond every time someone calls to say that someone is trespassing on the outlots. Councilmember Krebsbach suggested that the matter be tabled to allow the neighborhood time to discuss it further. She stated that her interest is to preserve the neighborhood and she does not think the Council or any future Council would be interested in putting in trails or making the outlots part of the park system. Mayor Mertensotto pointed out that all of the residents of the city helped to pay for the creek improvements and the city does have an investment in the property. He stated that if the association does not pay the taxes on the property, the city will ultimately receive title. He explained that Council's criteria for making a decision is whether accepting the deed to the outlots is in the best interest of the city. He explained that the only reason Council would take title is because Ivy Falls was an early plat and the lot lines do not go to the creek bed. He stated that Council's decision must be based on whether it is in the best interest of the city, regardless of how many of the association are in favor or against the transfer. He suggested that those who oppose the transfer put their reasons for opposition in writing, because he felt there are many misconceptions. Councilmember Smith stated that one additional thing for the association to think about is the hazardous nature of the creek and that people find it positive that members of the association have access. She suggested that if the association meets, it may wish to consider how much access there is to the property. Page No. 1 o May 7, 1996 Mr. Brassard responded that the board has had attorneys tell them that the area would be considered as an attractive nuisance and punitive damages could be tremendous. Ms. Pat Davies, secretary for the association, stated that she thinks the point about putting everything in writing is excellent and she would appreciate it if Mr. Spisak would give her written comments. She also stated that it is always easier to get those who live close excited. Mr. Dan Silver, 1280 Sylvandale, stated that there are more people on the opposition petition who do not live close to the creek. He stated that one of the things that attracted him to his property was the common area and the common area affects property values. He further stated that once cities own property, things can happen, such as a fence going up that would keep everyone out. He stated that he and his children look forward to walking on the property when the weather improves. He felt that if the private property signs are removed there would be more traffic to the common area. Mayor Mertensotto responded that the city would not install any signs that would indicate the outlots were public property. He stated that the Council members are trying to facilitate but will not arbitrate the issue. He asked that the association come back to Council when a consensus is reached. HEARING - TURNER'S Mayor Mertensotto opened the meeting for the purpose of a public GYMNASTICS BONDS hearing on a request from Turner's Gymnastics for industrial revenue bonds. Council acknowledged a memo from Treasurer Shaughnessy and a proposed resolution to approve the issuance. Mr. Steve Fenlon was present to represent Turner's. Mr. Fenlon informed Council and the audience that as the request was proposed at the last Council discussion, it was a tax exempt contract for deed with the city having a short contract for deed. He stated that this is no longer the case, and there is now a mortgage between Turner's and the Cherokee State Bank. A representative of Turner's informed Council that there are over 500 students presently enrolled and over 173 of the children in the programs are Mendota Heights residents. Mayor Mertensotto stated that the documents submitted make a finding that the issuance of the revenue not is in the best interest of the city and its residents. He asked how much the Turner's monthly payments will reduce if the financing is approved. Page No. 11 May 7, 1996 M r. Fenlon responded that Turner's currently pays $5,000 per month for rent to the Cherokee State Bank, and if the financing is approved Turner's would own the facility and the cost would be about $4,200 per month. He explained that the reason the facility will be tax exempt is that Turner's is a benevolent corporation and has received an opinion from the Council that it will be exempt. He stated that if Council approves the financing, the city will not be involved in ownership in any way. He informed Council that Turner's has also made the facility available for use by local high schools. Responding to a question from Mayor Mertensotto, he stated that there will never be any neon signs advertising the facility. Treasurer Shaughnessy informed Council that the tax capacity on the building is $23,000 a year, and the city would receive 17% of that figure, but at the present time the property is in the fiscal disparities fund, which would reduce the city's tax revenue by another 40 %. He explained that from a tax standpoint, tax exempt status would have little impact. Mayor Mertensotto stated that Turner's provides a valuable service to the community and is asking for economic assistance. He informed Mr. Fenlon that the city charges an administrative fee for issuing revenue notes and would also require Turner's to pay any legal fees the city incurs on behalf of the financing. Mr. Fenlon responded that Turner's will pay all required fees and that Turner's is not really requesting economic assistance, but rather that approving action by Council would allow Turner's to participate in tax exempt financing. He stated that Turner's is grateful to Council for consideration. Treasurer Shaughnessy stated that all of the financing documents have been reviewed by the city's legal counsel, and the documents include that the city will be reimbursed for all expenses. Mayor Mertensotto asked for questions and comments from the audience. There being no questions or comments, Councilmember Krebsbach moved that the hearing be closed. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 Councilmember Koch moved adoption of Resolution No. 96 -25, "RESOLUTION APPROVING THE ISSUANCE AND SALE OF A $565,000 REVENUE NOTE (TURNERS GYMNASTICS Page No. 12 May 7, 1996 Mayor Mertensotto stated that United Properties is proposing to amend an existing PUD and adding land. He pointed out to Mr. Glowa that if he is going to the PUD, the plan must meet the requirements of the existing PUD ordinance. Mr. Glowa responded that the original PUD for South Ridge included the phase one, which was built at that time. He stated that Untied Properties expected phases two and three, but they never happened, and now he is looking at adding property which abuts South Ridge. He informed Council that the city planner suggested the best approach was to amend the original PUD which covered two lots United properties would like to change. He explained that the original PUD had three lots, and at that time there two smaller buildings envisioned. He stated that the pond was not involved in the original PUD but is in this amendment. He informed Council that when he approached the Planning Commission, they brought to his attention that United Properties had not done the calculations to include the original South Ridge Business Center, which is a part of this PUD. He stated that he has gone back and done the calculations and submitted that information to the planner, and the plan is totally in compliance with the new ordinance. Responding to a concern from Mayor Mertensotto about impervious surface, Mr. Glowa stated that the plan complies with those requirements of the existing PUD ordinance. He reviewed drawings of the first phase of an eventual two phases of the amended PUD, and stated that there will be one curb cut and access to the site, and the truck docks will back up to the truck docks of the adjacent building. Mayor Mertensotto stated that if approval of the amended PUD is granted and one building is constructed, he does not want Mr. Glowa to come back and say he has the right to build the second building. He stated that Council reserves all rights to review and approval of future buildings and common access. CENTER PROJECT) SERIES 1996, OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA, AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO." Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 CASE NO. 96 -11, UNITED Council acknowledged an application from United Properties for PROPERTIES conditional use permit for planned unit development and subdivision. Council also acknowledged reports from Administrative Intern Hollister and the City Planner. Mr. Dale Glowa was present to represent United Properties. Mayor Mertensotto stated that United Properties is proposing to amend an existing PUD and adding land. He pointed out to Mr. Glowa that if he is going to the PUD, the plan must meet the requirements of the existing PUD ordinance. Mr. Glowa responded that the original PUD for South Ridge included the phase one, which was built at that time. He stated that Untied Properties expected phases two and three, but they never happened, and now he is looking at adding property which abuts South Ridge. He informed Council that the city planner suggested the best approach was to amend the original PUD which covered two lots United properties would like to change. He explained that the original PUD had three lots, and at that time there two smaller buildings envisioned. He stated that the pond was not involved in the original PUD but is in this amendment. He informed Council that when he approached the Planning Commission, they brought to his attention that United Properties had not done the calculations to include the original South Ridge Business Center, which is a part of this PUD. He stated that he has gone back and done the calculations and submitted that information to the planner, and the plan is totally in compliance with the new ordinance. Responding to a concern from Mayor Mertensotto about impervious surface, Mr. Glowa stated that the plan complies with those requirements of the existing PUD ordinance. He reviewed drawings of the first phase of an eventual two phases of the amended PUD, and stated that there will be one curb cut and access to the site, and the truck docks will back up to the truck docks of the adjacent building. Mayor Mertensotto stated that if approval of the amended PUD is granted and one building is constructed, he does not want Mr. Glowa to come back and say he has the right to build the second building. He stated that Council reserves all rights to review and approval of future buildings and common access. Page No. 13 May 7, 1996 Responding to a question from Councilmember Krebsbach, Mayor Mertensotto stated that there is an existing PUD and Mr. Glowa is proposing to enlarge that by amending the PUD. He further stated that when Council approves an amended PUD it must be consistent with today's ordinance requirements, and Mr. Glowa has indicated that it does comply requirements, including open space and impervious surface. Mr. Glowa informed Council that in response to the planner's recommendations, the plan shows berming and landscaping along Enterprise Drive, and all of the drawings show the 20 foot parking lot setback. Councilmember Krebsbach asked why there were two dissenting Planning Commission votes. Mr. Glowa responded that Commissioner Friel brought to the attention of the commission that the new ordinance requires a concept stage and the city planner said that all of the issues had been dealt with. Mayor Mertensotto stated that the original PUD was office and service, and the new proposal is for office and warehouse uses. He pointed out that Council does not want to run into any problems with the future building and reserves all rights with respect to the future building. Mr. Glowa stated that the original reason for the PUD was to get better use of the land an safer movement between the buildings. He explained that in the 1980's when United Properties was doing office showroom buildings, it made sense to have PUD's. He stated that this is a new product and vehicular traffic will be the same, but there will not be pedestrian circulation. He stated that the old product tended to be more pedestrians and less trucks, and this is more trucks and less pedestrians. The buildings will be primarily warehousing and light manufacturing, and it is anticipated that 15 to 20% of the space will be finished office. He stated that each of the bays are 6,400 square feet in size, and it is likely that the tenants will use 12,000 to 50,000 square feet each. He anticipated that there will be four to five tenants in the first building, and there will be one truck dock per bay. Councilmember Huber stated that the building has been referred to as a spec building, but that is not really what is being done since United Properties will retain ownership and will be renting space. Page No. 14 May 7, 1996 Mr. Glowa responded that that is what United Properties means by spec. He stated that he needs to go out and find tenants, and it is possible that United Properties will sell the building in the future but does not have any plans for selling it right now. Councilmember Huber asked why Planner Uban suggested moving the building locations for pedestrian connections and connecting to the Pilot Knob Trail. Mr. Glowa responded that the planner was focused on the letter of the PUD ordinance, which discusses pedestrian circulation between buildings. He informed Council that he strongly recommended to the Planning Commission and that they not require the pedestrian circulation as recommended because there is much truck traffic and fewer people. He explained that those who work there will be less likely to go out for walks at lunch. Mayor Mertensotto responded that there are similar circumstances in other places as well but there are still pedestrian walkways. He stated that he is not sure he would completely discount building a sidewalk, but perhaps the way to do it is to incorporate an easement for a walkway now to build in the future. The city could then do the connection of the pedway at some future time as an improvement project. He asked about the planners comment about the front sidewalk. Mr. Glowa responded that he was referring to having a sidewalk along the front of the building- what he would like to do is move the building back six feet and put in a sidewalk and run it around the building to tie into the existing trail and perhaps the pond. He stated that the sidewalk is not needed for the anticipated tenants, and the idea of having circulation across the drive aisles would be an unsafe situation. Mayor Mertensotto stated that there would be more than ample room in the forty feet of green space behind the curb for a pedway easement of twelve feet from the curb. He asked how this would affect the landscaping plan. Mr. Glowa responded that it would not be a problem if the city wanted to do it in the future, as a trail currently exists along the south side of Mendota Heights Road and runs up along Pilot Knob to the site. He stated that there currently is access to those trails, but this is more industrial and less office and it would make more sense to put the trail along the office side. Page No. 15 May 7, 1996 Responding to questions from Councilmember Krebsbach, Mr. Glowa stated that the R.L. Johnson building is a bigger building than he proposes, and he would guess that building would have more truck traffic than the building he proposes. Also, the Roller Blade building is four times as large as the proposed United Properties building and has much more traffic. Councilmember Krebsbach stated that she would be more comfortable if there were a concept stage. Mr. Glowa responded that the city planner prepared and submitted a report to the Planning Commission, and this is no departure from the type of building that would have been proposed in a concept stage. Councilmember Smith stated that there was probably a representation made originally as to the value of the structures. She asked what difference there is between what was originally proposed and the currently proposed value, and stated that what is proposed is a significant change in the use of the property and how it develops. Mr. Glowa responded that South Ridge probably cost $30 per square foot more to construct because it was intended to be office finish. With respect to change in use, he stated that United Properties is not building office space because the market has not yet matured to that point. Councilmember Huber pointed out that there doesn't appear to be a way for people to walk to the front doors of the future building on a sidewalk. Mr. Glowa responded that this is not unlike a shopping center or super market - it would not be difficult to cross the parking lot in that area. Councilmember Huber felt that there should be a sidewalk to bring people to the front of the building. Mayor Mertensotto agreed, stating that if someone were to park three or four structures done, they would have to walk across the parking lot. Mr. Glowa responded that what is proposed is consistent with industrial use. Councilmember Huber stated that what is proposed is a generic building and he is trying to visualize how it may be broken down in the future. He stated that he would like to make sure the building L— has some flexibility. Page No. 16 May 7, 1996 Mr. Glowa responded that he has been developing in Mendota Heights for 13 years and has developed four of the six Mendota Heights Business Center buildings. He stated that those were one on a spec basis without a user, and when they were build out United Properties started South Ridge. He further stated that it was at that time that the market dried up and all that was available was build -to- suit structures for clients. He explained that the market is now back to building for multi - tenants. Mayor Mertensotto stated that perhaps Council should allow the option of having an easement four feet back from the curb for a future sidewalk, which would make a public improvement project much easier in the future. Mr. Glowa responded that he would have no problem with granting the easement. Mayor Mertensotto asked if the long stretch of building can be broken up by aesthetic use of materials - something to break up the continuous expanse. Mr. Glowa responded that there is a bend in the building and it goes away from view, and in order to break that up, United Properties has decided to spend money on brick at the recessed entries to provide shadow lines. There will also be multi -color to break it up, and there will be thin banding and brick at all the entries. He informed Council on similarly sized buildings in neighboring cities. Mayor Mertensotto suggested that there be some kind of treatment to break the building from the roof down to ground level. With respect to landscaping, Councilmember Smith stated that the Planner's point was to screen the docks - the building is at an angle and the dock area will be highly visible from Pilot Knob. She asked that there be additional landscaping to screen the dock area and around the pond area. Mr. Glowa responded that he would like to do that landscaping around the pond with the phase two building. He stated that the city was given a comprehensive landscaping plan for this building, not phase two, but he would intend to screen the truck dock area by landscaping around the pond. At Councilmember Smith's request, he stated that he will provide a preliminary landscaping plan for phase two at this time. He also stated that there was a recommendation that in the replatting, the corner be cut with the Page No. 17 May 7, 1996 property line to create a better condition on the back, and this can be done. He then reviewed traffic circulation throughout the site. Councilmember Smith noted that traffic could come in directly from Pilot Knob when phase two is developed. Mr. Glowa responded that that will be changed - the county has required that the drive aisle lines up with the drive aisle across the street so that trucks will be directed to only the one entrance. Councilmember Smith was concerned about the amount of traffic that will come off the first drive since it is to serve both phases. Mayor Mertensotto stated that he would like to see the pedestrian easement platted on the plat so that the city has an option in the future. Public Works Director Danielson responded that it would have to be a separate document that would be filed with the plat, or platted as a utility easement. He stated that the grading plan should show the area to be graded flat to provide a future pedway. He stated that the pedway could fit within the right -of -way. Mayor Mertensotto asked how prospective buyers would be alerted that there could be a future sidewalk, and directed staff to address the issue. Mr. Glowa stated that the exterior of the structure will be pre -cast concrete panels with brick around all of the entries, and that all but the brick will be painted. There will be extensive landscaping, and glass across the front of the building, consistent with what United Properties has done in the business park. Council asked Mr. Glowa to do whatever he can to break the mass of the building, using permanent materials to make it look like there is a break in the building, but not with paint changes. Mr. Glowa stated that he is quite sure that the ordinance does not specifically require brick to be added to this type of building, but United Properties has added a lot of brick to the front of the building. He explained that the market for the building is $4 a foot, and while he can move materials around, he is limited in how much money can be spent on materials. He stated that he will come back to Council with another scheme. Page No. 18 May 7, 1996 Councilmember Smith stated that while she can understand what Mr. Glowa is saying, what is being proposed is changing an existing PUD to a considerably different type of use. She stated that the only reason she is considering such a long building is that she knows Mr. Glowa is doing the best he can with it, but it is a very long building and she would like more done to break it up. Councilmember Huber moved to grant concept approval for the amended PUD and proposed building one and to authorize issuance of a foundation permit, subject to final review by Council of a Ayes: 4 redesigned sketch plan for the front of the building. Nays: I Krebsbach Councilmember Koch seconded the motion. Councilmember Krebsbach indicated that her negative vote was due to the applicant not being required to go through the concept stage. Staff was directed to prepare a revised resolution. CASE NO. 96-12, U.S. WEST Council acknowledged a memo from Administrative Intern Hollister relative to an application from U.S. West Cellular for a conditional use permit to place cellular apparatus and a penthouse on top of Sibley High School. Mr. Jay Littlejohn was present on behalf of U.S. West. Mayor Mertensotto stated that he is concerned about correcting any problems with radio interference and the resolution of approval should specify that a conditional use permit would be an appropriate approach since an accessory structure is being added to a school property. Mr. Littlejohn showed pictures of the school with the facility and antennas drawn in and colored as they would appear. He stated that the structure will be painted faux brick so that it will match the building color now and as it ages. He stated that if he knew he could buy a brick now that would match the color of the school building as it ages, he would build the structure in brick. Mayor Mertensotto stated that the agreement the city has on antennas on the water tower requires annual maintenance, and if similar language is in the agreement between the school district and U.S. West, U.S. West would be responsible for maintenance. He stated that he would like to see an agreement between the district, U.S. West and the city so that the city does not get put into the position of saying there is no interference. He pointed out that the city's agreement with U.S. West on the water tower antennas spells out the interference details. Page No. 19 May 7, 1996 Mr. Littlejohn stated that he has no problem with an agreement but that he believes the school district will. Mayor Mertensotto responded that if the district does not want to be a party to the agreement, that would be fine, but if the city approves the conditional use permit, an agreement, which would address the issue of interference, between U.S. West and the city would be required, so that Council is not put into the position of saying there is no interference. Mr. Littlejohn responded that he would have no problem whatsoever if the city were to excerpt the eight pages of the water tower antenna agreement which relate to interference and put them into a developer's agreement for this conditional use permit. It was the consensus of Council that the conditional use permit will be granted but that a developers agreement is needed to embody all of the conditions. Mayor Mertensotto informed Mr. Little] ohn that the city will draft the agreement for the next Council agenda/ Councilmember Krebsbach moved to grant concept approval to the conditional use permit for U.S. West/New Vector and to direct staff to prepare the developer's agreement and approving resolution for consideration at the next Council meeting. Councilmember Huber seconded the motion. Ayes: 5 Nays: 0 SPRINT ANTENNA REQUEST Council acknowledged a memo from Public Works Director Danielson regarding a request from Sprint to utilize the city's water tower for the installation of antennas. Council also acknowledged a letter from Debra Michaels, of SBA, explaining the request and proposed terms. Ms. Michaels stated that she has only one client - Sprint - and that she is coming to Council to request approval to co- locate antennas on the water tower. She stated that she based the lease offer on criteria within the nine county area and feels that the offer of $15,000 annual rent and 15% renewal rent increase over the five year initial lease term is a reasonable offer and consistent with the lease held by U.S. West. Page No. 20 May 7, 1996 After discussion, it was the consensus that Mayor Mertensotto and Ms. Michaels would meet to further negotiate on May 16 at City Hall. STARKS /FIELDS DAMAGES Council acknowledged a memo from Interim Administrator Batchelder regarding the proposed allocation formula for payment of damages in connection with the Starks and Fields vs. MPRS litigation, along with a proposed resolution to authorize payment. Mayor Mertensotto suggested two amendments to the proposed resolution: to amend 2.2 to remove the word reasonable to acceptable; and to amend 3.3 to add "subject to the right of defendant cities to appeal all or any part of the final judgment." Councilmember Krebsbach moved adoption of Resolution No. 96- 26, "RESOLUTION APPROVING ALLOCATION OF DAMAGES AND AUTHORIZING PAYMENT THEREOF," with the amendments recommended by Mayor Mertensotto. Ayes: 5 Nays: 0 FINE REVENUES Council acknowledged a memo from Treasurer Shaughnessy regarding a proposed joint powers agreement with the county regarding the county's fine revenue collection program. Mayor Mertensotto stated that if the base year for enhancement is 1994, he would not agree to entering the program. Treasurer Shaughnessy agreed, stating that if the county wants to bring it to an average of five years or use 1995 as a base he would recommend participation. BUDGET SESSION Council acknowledged a memo from Treasurer Shaughnessy regarding the proposed budget schedule and recommending dates for a Council workshop on budget guidelines. Mayor Mertensotto stated that Council needs to set a goal setting session and he did not know if that can be accomplished before the budget process starts. Councilmember Smith moved to schedule a goal setting workshop for Saturday, June 1 at 8:00 a.m. at City Hall. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 Page No. 21 May 7, 1996 MEETING CHANGE Councilmember Koch moved to reschedule the May 21 regular Council meeting to commence at 8:00 p.m. rather than 7:30 p.m. so as not to conflict with the hours of the school board election. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 CELLULAR TOWERS Council acknowledged a memo from Administrative Intern Hollister regarding cellular tower regulations. Discussion on the memo was tabled. ADJOURN There being no further business to come before the Council, Councilmember Huber moved that the meeting be adjourned. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 11:22 o'clock A.M. ATTEST: Charles E. Mertensotto Mayor 14 kJathleen M. Swanson, City Clerk LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL May 7. 1996 Asphalt Contractor License Northwest Bituminous Masonry Contractor License Hines & Sons, Inc. Excavating Contractor License Bjorkman Excavatig, Inc. King Construction Gas Piping Contractor License A-1 Heating & A/C Wm F. Ridler Plumbing & Heating Co., Inc. MW Contractor License A-1 Heating & A/C Nimis Newman Mechanical Inc. Statewide Gas Services, LLC General Contractor License Able Fence Inc. Benson-Orth Associates, Inc. Berwald Roofing Co., Inc. W.L. Hall Co. J & K Construction Leuschner Construction Mulcahy Inc. The Quimby Co. Petroleum Maintenance Co. Tree Service/Landscape Contractor License S & S Tree & Horticultural Specialists, Inc.