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1993-12-07 Council minutesPage No. 3837 December 7, 1993 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, December 7, 1993 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 Koch moved adoption of the agenda for the meeting. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Smith moved approval of the minutes of the November 16, 1993 regular meeting as amended. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Krebsbach moved approval of the consent calendar for the meeting along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the Building Activity report for November. b. Acknowledgment of the minutes November 10 Airport Relations meeting, and direction to the Administrator to notify the C, Council's desire to conduct a workshop in the spring. of the Commission City Dmmission of joint c. Acknowledgment of the minutes of the November 23 Planning Commission meeting. d. Authorization for the Police Department to purchase a Varda Alarm System from the Varda Company at a cost of $3,048.55. e. Adoption of Resolution No. 93 -75, "RESOLUTION CERTIFYING DELINQUENT UTILITY Page No. 3838 December 7, 1993 CHARGES TO THE DAKOTA COUNTY AUDITOR FOR COLLECTION WITH REAL ESTATE TAXES," as amended and direction to staff to certify the resolution to the County Auditor. f. Adoption of Resolution No. 93 -76, "RESOLUTION REQUESTING THAT MSA FUNDS BE UTILIZED "OFF SYSTEM" TO COVER MENDOTA INTERCHANGE STORM WATER COSTS." g. Adoption of Resolution No. 93 -77, "RESOLUTION DIRECTING THE ACQUISITION BY CONDEMNATION OF CERTAIN PERMANENT DRAINAGE AND TEMPORARY CONSTRUCTION EASEMENTS IN THE CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA," amending Resolution 93 -43 which was previously adopted. h. Approval to eliminate the temporary storm sewer easement over Lots 1 and 2, Block 2, Culligan Valley View Oak Addition, subject to payment of deferred assessments prior to development of the lots and cleanup and restoration of city streets which may be caused as the result of the filling of the lots. i. Approval of the list of contractor licenses dated December 7, 1993 and attached hereto. j. Approval of the list of claims dated December 7, 1993 and totaling $613,095.07. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS Mrs. Sam Kilburg stated that Victoria Curve is narrower as the result of Mn /DOT construction and school buses are having difficulty traveling on Victoria Curve as the result of the recent Mn /DOT construction. Mayor Mertensotto responded that the City is aware of the problem and has directed staff to contact Mn /DOT with respect to correcting the problem in the spring. TRUTH IN TAXATION Mayor Mertensotto opened the meeting for the HEARING purpose of a Truth in Taxation hearing. Treasurer Shaughnessy reviewed graphics detailing the proposed budget and tax levy for Page No. 3839 December 7, 1993 1994. He informed the audience on the anticipated General Fund expenses and revenues, General Fund salary and consultant information, General Fund independent contractor costs, a comparison on the 1993 and proposed 1994 tax levy and anticipated Enterprise Fund revenues and expenditures. He explained that because of new construction growth of 5.5 %, the net levy proposed should result in a zero increase in most property taxes. Mr. Shaughnessy informed Council and audience that, because of increased charges from the Metropolitan Waste Control Commission, after the first of the year Council will be requested to consider increasing sewer rental rates by 20 %. He explained that he does not anticipate that there will be a need to increase storm utility rates in 1994. Treasurer Shaughnessy informed the audience that Council, in accordance with state law, cannot adopt the proposed levy this evening but rather, must conduct a subsequent hearing for adoption. He recommended that the hearing be held at 5:00 p.m. on December 8th. Responding to a question from Mayor Mertensotto, he stated that the current base rate for sanitary sewer is $29.00 per quarter. He reminded the audience that sanitary sewer rates are calculated based on water usage from December 15 through March 15. Mayor Mertensotto stated that the city's water tower has been inspected and needs to be re- painted. He asked if funds are available for repainting of the water tower in 1994. Mr. Shaughnessy responded that funds have been reserved for repainting for the past five years, and although a recent engineering estimate is greater than had been anticipated, funding is available. He informed Council that it will not be necessary to increase utility rates for water tank painting. Mayor Mertensotto asked for questions and comments from the audience. Mr. Jake Deeb asked if the charges for service for police and fire protection are made through contracts. Mr. Shaughnessy responded that the city has contracts for fire service Page No. 3840 December 7, 1993 with Sunfish Lake, Mendota and Lilydale and police contracts with Mendota and Lilydale. Mr. Deeb stated that he doesn't argue with 18.5% increase in the Fire Department but the contract revenues are only increasing 2%. Treasurer Shaughnessy responded that the full increase is not reflected in the contracts, and pointed out that the majority of the Fire Department increase is for capitol outlay. He explained that capitol outlay is funded annually except for major pieces of equipment, which are funded through equipment certificates. Treasurer Shaughnessy briefly explained the legal and contingency line item. He stated that this line item was introduced into the budget three years ago. He explained that in 1993 the line item has proven to be very valuable because of unusual legal expenses and many tax abatements on commercial property. For 1994, the line item has been increased. Its primary use will be for legal fees for a continuing law suit, and the city was notified last week to anticipate a 2% reduction in the city's HACA aid (2% of the certified levy), which will be about $54,000. Responding to a question from Mayor Mertensotto, he explained that many of the larger companies have filed abatement requests with the county. He stated that most of the requests end up in court and are not settled for two years. If someone wins an abatement the County withholds the city's future taxes equal to the abatement. He explained that there are two types of abatement sources - regular city taxes and those for properties in the tax increment district. He stated that abatements of taxes for properties in the tax increment district do not affect the general fund, only the tax increment fund. About 40% of the abatements affect the general fund. He informed Council that the abatements appear to have stabilized, but about $100,000 has been lost this year: $60,000 in the Tax Increment District, and about $40,000 in the General Fund. Responding to a question from Mayor Mertensotto, Treasurer Shaughnessy stated that the General Fund surplus is currently equal to Ayes: 5 Nays: 0 Page No. 3841 December 7, 1993 about 50% of the budget. He informed Council that because of the reserve, the city has received a very favorable rating from Moody's, which results in a favorable interest rate on bonds. There being no further questions or comments, Councilmember Krebsbach moved to close the public hearing. Councilmember Huber seconded the motion. It was the consensus to conduct a subsequent Truth in Taxation hearing at 5:30 p.m. on December 8th. CASE NO. 93-27, OSKEY Mr. Tim Oskey was present to request approval of a wetlands permit to allow construction of a fence within 55 feet of the designated wetlands at 671 Apache Lane. He explained that he would like to install a 3611 high fence, 50% visible and 50% airable along his back yard. Mayor Mertensotto pointed out that the Planning Commission had no concerns over the requested permit. Councilmember Krebsbach asked if the fence will be along the side of the lot as well. Mr. Oskey responded that he has already installed a fence on the side of the lot under another permit. Councilmember Huber moved to grant the wetlands permit to allow construction of a fence as proposed at 671 Apache Lane to within 55 feet of the wetlands. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 CASE NO. 93-28, HEAVER Mr. Keith Heaver, representing Mr. & Mrs. Dave Fairbairns, stated that when the planning application was made he believed it was necessary to request a variance to allow construction of a single family home at 1680 Dodd Road, ten feet from the east property line. He explained that as it turns out, a variance for side yard setback is not needed because the property can be interpreted as a corner lot which allows the home to be positioned on either one side or the other. Page No. 3842 December 7, 1993 He stated that it is now proposed to locate the home on the south property line, and the rear yard setback is no longer an issue - all setbacks can be met. Responding to a question from Mayor Mertensotto, he explained that the front of the home will be to the south but that the lot is not on a public street. Mayor Mertensotto pointed out that there is a 50 foot right-of-way proposed to be used for access to Dodd Road, and that the applicant has easement rights. He asked if the owner will grant a ten foot, roadway and utility easement along the south boundary of the property (adjacent to the right-of-way) so that the city will have a sixty foot right-of- way if it is needed in the future for roadway or utility purposes. Mr. Heaver responded that he cannot make a commitment, since he is not the property owner. Mr. Dave Fairbairns stated that the driveway is sheltered with very large trees, and one concern is that the aesthetics will be destroyed. He explained that there is an existing driveway in the center of the easement. Mayor Mertensotto stated that all developments are required to grant sixty foot rights-of- way. He explained that if utilities are ever needed, the existing 10 feet will allow room for utilities without having to disrupt the access. He stated that if the easement is not granted now, it will likely never be granted. Mr. Heaver stated that it must have been felt at the time the original property was divided into three lots that fifty feet was all that was necessary. Mayor Mertensotto stated that it is unlikely that the fifty foot area was part of the platting, if someone to the east owns the property. He pointed out that the city has no plan to construct a street, but the easement will provide for future options should a problem develop. He also pointed out that drainage problems were discussed by the Planning Commission. Page No. 3843 December 7, 1993 Mr. Heaver stated that the city might look at some type of drainage out of the wetlands in the future, but did not believe anything has been proposed. Mayor Mertensotto responded that there is no current plan, but the easement would allow options in the future. Mr. Fairbairns stated that he would not be pleased with granting an easement into the woodland. Councilmember Krebsbach asked what the resolution of the easement question was on the Mazzara property. Mayor Mertensotto responded that the Mazzara development was different because there is a developers agreement regarding installation of the roadway and with respect to maintenance. Public Works Director Danielson stated that he did not recall if the easement was 50 or 60 feet, but that it is common to have a ten foot easement along a fifty foot right -of -way and that the request is not unusual. Mayor Mertensotto stated that the roadway would be in the center of the right -of -way, and would likely be 33 feet wide - the rest would typically be boulevard. The ten foot easement would be for utilities. Mr. Heaver stated that there is an existing utility easement across the center of the lot. Councilmember Krebsbach asked where a proposed road would connect. Mayor Mertensotto stated that there are two existing homes that are using the easement access to the public road. He pointed out that while he does not foresee construction of a street on the right -of -way in the future, there could be future need to bring utilities in to the properties. Councilmember Krebsbach stated that she did not see a difference between the subject property and the Mazzara plat. She asked if an agreement can be developed between the property owners so that the easement is not necessary. Page No. 3844 December 7, 1993 Responding to a question from Mayor Mertensotto, Mr. Heaver stated that Mr. Fairbairns has access rights for the use of the driveway and shared expenses for it. Mayor Mertensotto stated that he does not believe the additional easement would affect the property yet would be beneficial to the city. Mr. Heaver stated that there are other issues with respect to the driveway, and recommendations of the City Engineer for the blacktopping of the driveway. Mr. Heaver stated that the other property owners are concerned, and he asked if the requirement will be enforced at this time. Mayor Mertensotto stated that he believes the Fire Code requires a 20 foot wide all-weather surface. He pointed out that Council recently approved a lot division of a large flag lot, with a driveway to serve three properties and required a 20 foot blacktopped surface. Administrator Lawell stated that he believes Council required a 12 foot blacktopped surface with four foot shoulders on both sides to allow emergency vehicles to pass each other. Mr. Heaver stated that part of the concern was that the recommendation by city staff was for a fourteen foot wide hard surface with three additional feet of gravel on each side. He stated that the uniqueness of the property is the trees and after measuring along the entire property, there is only between 17 feet and 23 feet without disturbing any trees. He asked how strict the Fire Department is in its recommendation and asked if it can be narrower. Mayor Mertensotto pointed out that the trees must be kept trimmed to allow for the height of the emergency vehicles. Mr. Heaver responded that clearance for vehicle height would not be a problem. Mr. Heaver stated that two other property owners to the east must be involved in the access driveway agreement. He stated that the driveway from the home to the access driveway in the easement will meet city requirements. He asked if the access driveway, which has Page No. 3845 December 7, 1993 served the two homes to the east for some time, can remain gravel. Mr. Heaver stated that he must try to develop a guideline which can be worked out with the other property owners as a shared expense for improving the access driveway. He proposed that nothing be done to it. Mayor Mertensotto pointed out that the city is responsible for enforcing the code, and the problem is that the applicant is asking Council to vary from precedent and waive code requirements. Responding to a question from Councilmember Huber, Public Works Director Danielson stated that he believes that the recommendation of the Planning Commission is just to improve the access from Dodd Road to the new home, not all the way to the farthest home. Mr. Fairbairns informed Council that there is an agreement between the three property owners to share the cost of the driveway, and the other owners will not be enthused about paying for a road they do not want improved. He stated that the other concern is that there are mature trees which would need to be cut down. Councilmember Huber stated that although the drive is narrow, he shares the concern about removing the trees and would not want to widen the drive if tree removal were necessary. Mayor Mertensotto asked if water drains across the drive currently. Public Works Director Danielson responded that there are culverts at two locations, one about 150 feet east of Dodd Road. Mr. Heaver stated that since the house can be positioned so that it does not need a variance, he does not know why the matter must come before the Council. Mayor Mertensotto pointed out that the city requires that homes front on a public street. Administrator Lawell stated that the matter is before Council because the ordinance states that the applicant can choose which way the home faces, but it must be approved by the Code Enforcement Officer. Page No. 3846 December 7, 1993 Responding to questions from Mayor Mertensotto, Mr. Heaver stated that the narrowest point of the existing driveway is 17 feet, and it is as wide as 20 to 21 feet. He stated that the original plan was to leave the driveway as a gravel driveway. He stated that the owners gravel the surface on an annual basis. Councilmember Smith stated that it appears that the additional width requirement is to allow fire trucks to pass each other if needed. She asked if it is necessary that the entire drive be twenty feet wide, as long as an area is provided for passing. She also asked if blacktop is required or of it is possible to require the needed width with the approval of the fire department so they can accomplish what they need to without a 20 foot width for the entire distance of the drive. Administrator Lawell stated that the city has some discretion on whether blacktop is required: the code requires an all-weather road. Mr. Heaver responded that he believes the owners would agree to improving the gravel, but the issue is the additional expense of blacktop. Mayor Mertensotto pointed out that if the code requirement is all-weather surface, and Council granted approval as long as 12 feet of the surface is stabilized, and complaints are received from the owners that the road was damaged and not repaired, what lever does Council have to require repair. Mr. Fairbairns stated that he is obliged to pay for his pro rata share of maintenance of the entire road. Mr. Heaver stated that he does not think that the other owners would allow damage to the drive during the construction without subsequent repair. Mayor Mertensotto asked if the occupancy permit for the structure can be withheld until the driveway is hard-surfaced. He was concerned over the condition of the drive for access by fire trucks. Mr. Heaver responded that he believes that gravelling the surface would likely be Page No. 3847 December 7, 1993 acceptable to all of the owners, but not blacktop at this time. City Attorney Hart suggested that Mr. Heaver submit a letter to the city at the time the permit is issued, acknowledging that the installation of an all-weather surface is a requirement of the certificate of occupancy. Mayor Mertensotto stated that the surface must be such that fire trucks will not get stuck. Administrator Lawell suggested that the applicants submit specifications as to how the applicant intends to build the road, and that the letter should acknowledge that the Fire Department and city engineering will review the specifications to assure that it meets the requirements of an all-weather road. Mayor Mertensotto agreed, stating that the issuance of an occupancy permit would be conditioned on approval of the road by the city. He also stated that the 10 foot easement would be required. Councilmember Smith asked for clarification on the wetlands designation, asking if it is truly a wetlands. She asked if a wetlands permit is needed, since the location of the structure does not meet required wetland setbacks. She noted that the planning report expressed concern over the basement floor elevation and recommended that the water level in the area be checked. Mayor Mertensotto stated that the basement floor level must be four feet above the high water mark. Mr. Heaver responded that he is looking at the matter, and the floor level will be raised. Public Works Director Danielson informed Council that the wetlands shown on the applicant's drawing does not appear on the city's wetlands map as a wetland area, and therefore wetlands processing is not required. He explained that the wetland is a protected area and cannot be filled, but the 100 foot setback is not required. Mayor Mertensotto stated that one of the requirements of approval will be that the Page No. 3848 December 7. 1993 basement floor elevation must be four feet above the high water level. Mr. Heaver asked if there are any plans for controlling the wetlands area in the future. Mayor Mertensotto pointed out that a grading plan is required, and staff will review it to determine whether it meets drainage requirements. Councilmember Krebsbach suggested that Council consider granting a wetlands permit so that one is not required in the future if the wetlands is designated as a wetland area. Councilmember Smith moved to approve the issuance of a building permit to allow the proposed structure to be faced to the south and to grant a wetlands permit to allow the structure to be constructed 53 feet from the wetland area, subject to the following conditions: dedication of a 10 foot easement along the south property line for street and utility purposes; that the certificate of occupancy will not be issued until the access drive is improved with an all - weather surface to a minimum 12 foot width; that the basement elevation must be a minimum of four feet above the high water mark; that a grading plan be submitted to determine storm water drainage for the site and that city staff determine whether elevation 911 is the base high water elevation. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 CASE NO. 93 -26, Mr. Fred Reynolds, Project Manager for MCDONALD'S C.U.P. Construction for the McDonald's Corporation, was present to request approval of a conditional use permit to allow construction of a free standing, 120 square foot cashier's /face -to -face booth for the McDonald's Restaurant at 2020 Dodd Road. Mr. Reynolds stated that the purpose of the booth is to improve the service at the restaurant, to increase service enhancement and customer satisfaction during peak drive - through hours. Currently 73 cars per hour can use the drive - through, which would be increased to 114 cars per hour. He stated that the proposed structure will have an Page No. 3849 December 7, 1993 exterior the same as the existing restaurant and the corporation and the owner/operator have agreed to the three conditions proposed by the staff and Planning Commission. He informed Council that the landscape plan has been submitted to city staff and the owner will provide a detailed security plan for how the booth will be maintained for security during the hours of operation, and the handicapped stalls will be relocated as requested. Councilmember Krebsbach stated that she had requested the information on security at the time the request for a footing permit was made. She stated that before she could approve this request, she would need to receive information on the safety and security of the remote facilities for employees. Mr. Reynolds stated that for security purposes, the booth will be maintained for operation only during daylight hours and the owner is installing a remote video camera in the booth to monitor the employees who are in the booth at all times when it is in operation. Councilmember Krebsbach stated that she would like statistics and the facilities and their susceptibility to burglary or robbery. Mr. Reynolds responded that the cashier during peak hours is located in the booth but McDonald's has no more problems with cashiering in the remote booths than in any other booths - the facility is under surveillance at all times. He gave examples of similar remote facilities. Councilmember Smith asked if McDonald's would agree to a condition that the booth can only be operated during daylight hours. Mr. Reynolds responded that the only time money would be taken at the booth is during daylight hours, and if the booth were to be turned into a face-to-face operation, which is a future possibility, the orders would be taken by an individual instead through a speaker post, and the individual would not be taking money. Councilmember Krebsbach stated that the booth at an Eagan facility is at the back and she felt the individuals in it are vulnerable. Mr. Reynolds stated that McDonald's has never Page No. 3850 December 7, 1993 experienced a robbery from a booth. He informed Council that there are at least 100 to 150 similar free- standing booths at McDonald's facilities in the United States, and McDonald's is currently looking at installing a multi -lane drive through at the Elk River restaurant. Mayor Mertensotto stated that the city had a bad experience with a free - standing FotoMark in the past, which is a reason why there is concern. Mr. Reynolds responded that the owner /operator of the restaurant owns 13 other McDonald's and will assure that his employees will be safe. The owner will invest the money for a camera in the booth and one outside. Responding to a question from Mayor Mertensotto, Mr. Reynolds stated that the original design of the building does not allow for connection of the booth to the building. Councilmember Huber stated that the booth is attached to the Town Center McDonald's in Eagan. Mr. Reynolds responded that the delivery area was in a different location, which made attachment possible. He explained the need for spacing between the speaker post, the cashier point and the presentation booth. Mayor Mertensotto asked what will happen to the booth if the concept does not work. Mr. Reynolds assured Council that if the operator elects not to utilize the building he will take it down. He stated that in his experience, he will guarantee that it will work. He explained that there will be two employees in the cashier booth and three in the presentation booth during peak volume hours, which are during the lunch rush and sometimes in the summer from 5:00 p.m. to 7:00 p.m. Councilmember Huber asked if the employees in the booth will take the cash from the booth to the restaurant after their shift. Mr. Reynolds responded that the manager will remove the money to the restaurant. Mayor Mertensotto stated that a fourth condition of approval must be that the booth will never be used for storage and will be Page No. 3851 December 7, 1993 removed if it is no longer used for the approved purpose. Councilmember Krebsbach suggested adding a condition that the booth will only be staffed during peak hours. She pointed out that she feels very strongly about the vulnerability of the employees who will be in the booth. Councilmember Smith moved adoption of Resolution No. 93-78, "A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A NEW CASHIER'S BOOTH AT MCDONALDIS RESTAURANT," amended to include the additional conditions that the applicant agrees that at such time as the booth is no longer used as a cashier's booth it will be removed, and that the booth will only be staffed during peak operating periods. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CASE NO. 93-25, DEEB Mr. Jake Deeb, 1780 Dodd Road, was present to request approval of a conditional use permit and wetlands permit to allow construction of a detached garage within thirty-six feet of Willow Creek. Mayor Mertensotto stated that Council was recently faced with an application for a detached garage on Knob Road, and that he has asked staff to research what was approved. He informed Mr. Deeb that the applicant was required to remove an existing storage building and eliminate his tuck-under garage in a permanent manner prior to building permit issuance. The size was limited to 728 square feet, with 26 by 28 foot dimensions, and the height was limited, and it was required to be 50 feet from the south property line. Mr. Deeb stated that he has a tuck-under garage now and would agree to eliminate it after the new garage is built. He stated that this is shown in the plans he has submitted. Mr. Deeb stated that the height is within ordinance requirements, the mean height being under 14 feet, and the building will be 25 feet from his south property line. Mayor Mertensotto asked if Mr. Deeb will reduce the size to 728 square feet. Page No. 3852 December 7, 1993 Mr. Deeb responded that one of the reasons for the proposed size is to allow space for a 26 foot boat. He stated that he would only have one garage, while the applicant on Knob Road had two garages and blocked off the one at the lower level before being given a permit. Mayor Mertensotto responded that while he realizes that the Deeb lot is very deep, the wetlands will be affected. Mr. Deeb stated that he has asked the city to remove the wetlands designation for the area which runs north /south on the lot, as he has had it checked and it does not fulfill the wetlands requirements. He informed Council that he would grant the city an easement. Mayor Mertensotto responded that the area is a drain way and it is not necessary to address the designation as part of the conditional use process. Mr. Deeb stated that his lot was not in the wetlands designation in the past before the creek was moved, and he wants to straighten out the problem so that he does not have to get a wetlands permit every time he wants to do something on the lot. He felt that he has given justifiable reason for the requested garage size. Mr. Deeb presented a document from a local lumber yard showing varying sizes of three -car garages, ranging from 30 by 40 to 30 by 36. He stated that he believes the ordinance requires garages to be larger than 440 square feet but allows up to 1000 square feet - 720 square feet would not be sufficient for his needs. Councilmember Huber asked how long the trailer of the boat is. Mr. Deeb responded that the boat is 26 feet long, and the trailer plus its tongue is 30 feet long, and he will have to put the trailer in the garage at an angle. Mayor Mertensotto stated that 728 square feet was a very good compromise for the Knob Road example, and accessory structures and detached garages are problems. Mr. Deeb asked if Council will allow him to keep his tuck -under garage, which is 30 feet Page No. 3853 December 7, 1993 deep, and build a 728 square foot garage. He stated that he does not want to do that, because he does wants to remove gasoline storage from his home. He stated that he only wants one garage, but will not sell his boat for a smaller one that would fit in a 728 square foot garage. Mayor Mertensotto stated that if the garage is reduced to 728 square feet in size, he would be willing to make an exception to allow the tuck -under to remain. Mr. Deeb responded that his lot is over 57,000 square feet, and no homes have a direct view of the lot. Councilmember Smith asked if the structure needs to be the proposed width, if 30 feet of length is a problem. She asked three doors or the space between the doors are needed and pointed out that if the structure were 28 feet wide by 29.5 feet deep the structure would only be 826 square feet and would allow the depth Mr. Deeb needs. Mr. Deeb asked for approval of 900 square feet. Mayor Mertensotto was concerned about setting precedent. Mr. Deeb stated that at one time he was going to build a storage building, but instead decided to combine all of his storage into one garage. Councilmember Smith stated that she would be more inclined to require closing of the existing garage and narrow the proposed garage, which would reduce the street impact. Mayor Mertensotto stated that the principle is the size of the structure. Councilmember Krebsbach pointed out that what is approved will become the benchmark. Mr. Deeb stated that the ordinance allows 1000 square feet, and he believes he is legally entitled to that size. City Attorney Hart responded that the application is for a conditional use permit, which is not a matter of right, and Council is Page No. 3854 December 7, 1993 free to impose whatever conditions it deems appropriate, including size limits. Mayor Mertensotto stated that the question is whether Council wishes to set a standard different from 728 square feet, and that to avoid setting a different standard, Council could allow the tuck-under garage to remain. He felt this would be a better option for the city than setting a larger standard for accessory buildings. Mr. Deeb responded that he does not want two garages, but will consider the suggestion and will also look at his plans to see if the garage can be reduced in width as suggested by Councilmember Smith and will come back on December 21. He distributed information to Council showing what it has cost him to pursue the conditional use permit. He stated that he can understand requiring a conditional use permit for someone who will be operating a business but felt that the costs are too significant for residential properties. NORTHLAND INSURANCE Mr. Dale Glowa, from United Properties, was TIF AGREEMENT present on behalf of Northland Insurance Company (NIC) to discuss a proposed agreement for tax increment financing. Mayor Mertensotto stated that Council knows the nature of the project but that he believes there is disagreement over the land write-down being included in the agreement. Mr. Glowa responded that on October 19 Council granted conditional use approval for the project and directed the City Attorney to prepare the development agreement for approximately $1,230,000 in pay-as-you-go tax increment benefit for Northland in the form of a limited revenue note that will be directly with the tenant, Northland. The benefit will be paid through the remaining life of the district as long as real estate taxes are current and Northland occupies at least 50% of the space, and there is a no right to transfer the benefit to any other user. He stated that Council also requested that land not be included in the list, and he tried to honor that request but Northland's legal advisor asked for a more inclusive list, including land, basically as an insurance policy. He explained that an extensive list has been put Page No. 3855 December 7, 1993 together that more than exceeds the amount Northland is requesting, however there are severe penalties in the event some third party were to ever successfully challenge the TIF support, and while Northland believes such an event is remote, the penalties and risk to the developer are so significant that it becomes a problem. Northland has submitted an extensive list of costs to show that the land write-down will not be necessary, but that it is legally necessary to include it in the list in order for the project to proceed. Mayor Mertensotto pointed out that land write- down was not included in the last project, and write-down has been reserved for public projects. Mr. Glowa responded that the list is adequate enough with land write down to justify the project. He stated that the two prior United Properties projects that have used the benefit before are Lennox and VGC and both had the land included in the comprehensive list. He stated that United Properties was not a party to the Associated Bureaus project, which is the project to which Mayor Mertensotto has referred. Councilmember Smith stated that Council was clear up front with Mr. Glowa that it supports the full increment with the assumption that an acceptable list of items was provided. She further stated that Council was also clear up front that the list could not include land. Mr. Glowa responded that he believes an extensive list exceeding the amount of TIF has been provided and it is a matter of interpretation. He explained that last week his company's legal counsel advised against removing land from the list, and the president of United Properties has stated that it is an absolute that land be included because of the risk. Councilmember Smith stated that this raises the integrity of the rest of the list and the letter of opinion by the legal counsel as well, because if removal of one item worth less than one-third of the entire expenditure puts the entire list into question, it raises a serious question. Page No. 3856 December 7, 1993 Mr. Larry Guthrie, from Maun & Simon, stated that he is the author of the opinion and as he sees it, all of the expenditures do qualify under TIF and that the list is saying that all of the items are included and allowable expenditures under TIF whether or not the city wants to reimburse Northland for land or not. He further stated that in the developer's agreement the city is asking Northland to certify all allowable costs and he feels more comfortable with respect to having all of the items listed as being certifiable costs than leaving some out and being exactly to the penny that will be reimbursed in the event that some third party does challenge it. He explained that in that case, the city will look to Northland for indemnification because the developer is indemnifying the city that the list is allowable. He stated that if the city were to eliminate that indemnification and indemnify the developer, he would not have a concern and could come in with the exact amount of the TIF. Councilmember Smith stated that there is a difference between allowable costs and acceptable costs, because the city places a slightly narrower window on acceptable costs than everything that is allowed. Mr. Guthrie responded that he thinks that all that is being certified is what is allowable - what the city reimburses is up to the city, and if the city does not want to reimburse for land, it does not have to. Councilmember Smith stated that without the land there is still a balance of $1,200,000 of acceptable cost, and asked why that is not sufficient. Mr. Guthrie responded that the land is an allowable cost whether it is stated in the letter or not and whether or not it is certified as a cost makes no difference either, because the city is not reimbursing the developer for the land. Councilmember Smith stated that based on what she has heard this evening, she cannot support the request for TIF. Page No. 3857 December 7, 1993 Mayor Mertensotto asked if the developer is asking the city to certify the same list as has been submitted. Mr. Guthrie responded that the city is not certifying anything other than the fact that it has a tax increment plan - the city is reimbursing $1,230,000 worth of cost, and the developer is saying it has a list of allowable TIF costs of over $2,000,000. Mayor Mertensotto asked if a decision can be delayed so that Council can discuss the matter with legal counsel. Mr. Glowa responded that a purchase agreement is to be completed with GTE on December 8, and he had hoped to begin construction next week but can delay. He stated that he will do whatever Council wishes. City Attorney Hart stated that in the Associated Bureaus transaction, the city did include a land component and there was a provision in the agreement that the city would have no obligation to acquire land on behalf of the developer. Further discussion was tabled to December 21. DODD/T.H. 110 Council acknowledged a report from Administrator Lawell regarding the Dodd/T.H. 110 intersection and summarizing community survey statistics related to resident satisfaction with the intersection. Mayor Mertensotto asked Mr. Brian Birch if he has any proposals for use of the Dodd Road easement area. He stated that Mn/DOT obtained the right-of-way in the early 1950's and the land has been off of the tax rolls for 40 years. He explained that there is land on the south side of the intersection as well as the north side and some development that took place conditioned upon having another access in and out of the shopping center. He pointed out that Mn/DOT has no intent to relocate T.H. 149 and the city must decide if it should be released for development or held for public use. He stated that there is excess undeveloped land on the shopping center site and Council is looking for senior housing sites and people have been asking for a community center. He explained that senior housing should be located close to the Page No. 3858 December 7, 1993 shopping center and if the city were to get involved in a community center, the land would be a good location. He explained that this is why he would like to know Mr. Birch's plans if he acquires the land. Mr. Birch responded that he does have some development ideas, but the easterly portion of the land is residential and the westerly is commercial. He stated that he has raised the idea of senior housing for the site. Mayor Mertensotto asked what size of site the HRA looks for. Administrator Lawell responded that he believes 40 units on four to five acres is the basic project. Mayor Mertensotto stated that there was no real mandate from the survey results of 42.-0. versus 38%, on whether the land should be released for development or held for public purposes. Mr. Birch disagreed, stating that as he interprets the results, there is a clear level of satisfaction with the intersection and a mandate to release the land. Councilmember Huber pointed out that those living closest to the intersection are two to one in favor of retaining the right-of-way. He stated that those closest to it have a much more intense interest on what ultimately is developed. Mr. Birch responded that the Council has no rights to the property. He felt that the city is deliberating violating state law. Administrator Lawell responded that Mn/DOT has controlling interest and they have come to the city for a preference on the disposition of the roadway easement. Mn/DOT has asked the city for ideas on its plans for the future. Councilmember Krebsbach stated that she is prepared to recommend that the easement be held. She asked Attorney Hart if she has the right to make such a motion. Attorney Hart responded that Council can absolutely make such a motion, and that in the event that Mn/DOT elects to sell the property for fair market value to Mr. Birch or anyone Page No. 3859 December 7, 1993 else they only need to deal with the legal rights of the city that exist by statute. He stated that he believes Mn/DOT has requested input on current and projected city needs and it is entirely appropriate for the city to do so, which may involve a determination that the land may be needed in the future and should be held. Mr. Stan Linnell, a member of the Park Commission, stated that although the Commission has not discussed the matter, it appears to him that at least the south part of the right-of-way could provide a good location for a trail to Valley Park, and the southern area could provide trail access to Friendly Hills. He suggested that it might also be a possibility to put a grade separated pedestrian bridge across the highway to connect the trail system. He further stated that there has been legal precedent for holding right-of-way for trail purposes. He recommended that Council request that the right-of-way be held. Mr. Tom Norman asked if the property on the north of T.H. 110 runs from the service lane to the animal hospital. He expressed concern over the condition of the property as it is now and what it would be used for in the future. He complained about the condition of the city-owned property. Mayor Mertensotto reviewed a map showing the right-of-way location. Councilmember Krebsbach informed Mr. Norman that Council agrees that the city property should be cleaned up and has discussed the matter in workshop. Administrator Lawell stated that if all parties are in agreement, he believes Mn/DOT will remove the stockpile from the right-of- way. Councilmember Koch asked if it is possible that Council can make separate decisions on the north and south sides of the highway. Mayor Mertensotto responded that no development proposals have been presented and if the land is released, the city has no options. Page No. 3860 December 7, 1993 Councilmember Smith stated that she was not surprised that the residents are not dissatisfied with the intersection given existing traffic, but there are a number of forces at work through the Twin Cities area that could affect traffic on both T.H. 110 and Dodd and she did not feel it would be in the best interest of the community to allow the release of the land. Administrator Lawell stated that several years ago a portion of the right-of-way, from South Plaza Drive north, was included in the city's MSA system. He suggested that if the right- right-of-way is to be could be separated out, South Plaza Drive might be a good reference point,, since the area south of South Plaza and has not been identified by Mn/DOT or the city as being needed for roadway purposes and might be best combined with Friendly Marsh and the trail system. Mr. Birch felt that the south area should be given to the Dodge Nature Center, which would enhance the city. Councilmember Huber stated that Council has no plans for a roadway through Friendly Hills, but if the city agreed to the release of the right-of-way south of South Plaza Drive, it would have to be in the position to be able to buy it for park purposes. Councilmember Smith suggested that the City could notify Mn/DOT that the city is interested in that portion of the right-of-way for public purposes but not for roadway purposes. Mayor Mertensotto felt that Council should seriously look at establishing an economic development area that would include the north and south right-of-way and the shopping center and take a look at how the area should develop. Mr. Birch stated that if the city desires a road, he would give the city land for the street if the city would trade him the land to the east. He stated that Mn/DOT only has rights for a road, and asked the city to compromise by moving the roadway so that he can put a senior center on his property. He Page No. 3861 December 7, 1993 asked Council to make a decision on the roadway this evening. Councilmember Huber responded that the problem is that the property is difficult to develop and the only way that it can be developed is to look at a roadway access to those areas that are currently inaccessible. He pointed out that it is not at all clear how the road could best be designed or located. He pointed out that there is no access to the area south of T.H. 110 and north of South Plaza Drive. Councilmember Koch stated that because of the inconclusiveness of the survey, she is inclined to turn the land back. She felt that whatever the city wants to do with the land in the future can be done through negotiations with future owners. She did not think that it is clear that a roadway will be needed on the area north of the intersection. Councilmember Huber stated that if a development were proposed for north side of the intersection which had any kind of activity density, the present roadway access is likely to be inadequate. Councilmember Krebsbach pointed out that another option might be the re-routing of Freeway Road, and many roadway options to look at if the right-of-way is retained. She felt that Council wants to look at a cohesive plan for both sides of the intersection and in order for Council to do that it must retain the right-of-way option. Mr. Birch stated that Council must not consider tying up his entire parcel of land just to for future roadway purposes. He stated that he wants the Council to give him an answer that it will allow the property to be returned to him. Councilmember Krebsbach moved to request that Mn/DOT retain the land for future public purposes, exclusive of the land south of South Plaza Drive. Councilmember Smith seconded the motion. Ayes: 4 Nays: 1 Koch ARNDT PLAT TRAIL Council acknowledged a letter from Mr. Tom Junnila, 1024 Downing Street, and a Page No. 3862 December 7, 1993 neighborhood petition regarding relocation of the trail in the Arndt plat. Council also acknowledged an associated report from the Administrative Assistant and a letter from Mr. Floyd Arndt to Public Works Director Danielson. Mr. Junnila stated that he was initially for the Arndt proposal but has reconsidered and changed his mind. He stated that what he is currently proposed is to redirect the trail through Lots 2 and 3, which is his preference and that of the London/Downing neighborhood. He informed Council that he appeared before the Parks Commission and one member raised the question on handicapped accessibility. Mr. Junnila stated that the ADA does not require it, and that none of the proposed options meet national parks guidelines. He stated that he has read the letter from Mr. Arndt which indicates the family feels that the trail relocation would significantly diminishes the market value of their lots, but he prefers the routing through 2 and 3. He felt that the issue is one of market value but his lot would also be affected. Mayor Mertensotto stated that in the early 1970's planning showed that London Road would ultimately tie in with Butler, but when the hearing on the Arndt plat was held, residents in the London/Downing area objected to a through street. Council accommodated their request for a cul-de-sac rather than a through street - the trade-off at that time was for a walkway from London Road to Kirchner Lane in exchange for the cul-de-sac. He informed the audience that Mrs. Arndt is his client and he has not voted on the issue. He explained that the Arndts would never have agreed to running a pedway through the development, and they have spent much money to accommodate the cul- de-sac design. He pointed out that it would have been much easier to run a street through. Mr. Junnila responded that he is being impacted by a path and three sides of his lot would be public, and he would not be able to live with it. He did not feel that the disabilities act is a factor and felt that the only factor is that the Arndts feel that placing the trail between Lots 2 and 3 would impact the value of the lots. Page No. 3863 December 7, 1993 Mayor Mertensotto stated that he has spoken to many realtors and they have indicated that the last thing the developer should do is put a pedway between lots, and many people who have expressed interest have stated that they would not be interested in the lots if the pedway is located where Mr. Junnila proposes. He pointed out that the developer has relied on the plan which was approved. Administrator Lawell stated that many sections of the ADA that do not have many standards but it is important to remember that it is a civil rights act and its standards will be set by the courts. He explained under the ADA, all that the city must do is make a reasonable accommodation and do what it can to assist those who are disabled and make its best effort to accommodate those with disabilities. Mr. Junnila explained that his option is only 3% different in grade from that which is currently proposed. Councilmember Huber stated that he was not on the Council when the plat first was presented, but at this time he is not inclined to undo what a previous Council approved. Mayor Mertensotto stated that he believes the only way the Arndts would consent to moving the trail would be if the road were to go through, which would provide for an additional lot. Mr. Junnila stated that he wants acknowledgment from the Council that market values are diminished by the pathway. Councilmember Smith stated that Council cannot make such an acknowledgment since no one on the Council is an expert in making valuation determinations. She asked if there are any diagrams showing a larger area and the linkages between the pedways. Mr. Junnila stated that there are no pedways in the area but the unofficial pathway has been almost exactly where he is proposing. She stated that it appears that Kirchner Avenue had been platted through and must be vacated, and the pedway goes through that area. She asked for a history. Page No. 3864 December 7, 1993 Public Works Director Danielson stated that that unbuilt portion of Kirchner was vacated at the time the Arndt plat was completed. Mr. Junnila stated that he can see the point of view of not undoing everything and will do his best to live with the plat but will pursue a reduction in his market value because the path will be 34 feet from his property line. He informed Council that he had considered buying Lot 6 but does not want to buy it and have a pathway through it. Councilmember Krebsbach stated that she can appreciate Mr. Junnila's sense of loss of privacy in his back yard. Mr. Stan Linnell stated that he believes that the ADA does clearly apply. He informed Council that the federal government has appointed the national forest service to design standards for accessible outdoor recreation and it has developed a draft which sets standards but provides options to allow grades steeper than 5% but the intent is to provide for the most accessible trail whenever possible. Councilmember Smith stated that the decision is difficult because no matter where the trail goes it will affect someone. Councilmember Koch stated that in the beginning there was no dissent from Mr. Junnila to the trail location and all of the options were looked at the time and the plan was adopted. She recommended keeping the plan as it is. Mr. Junnila responded that in its planned location, the trail would impact two existing homes for 267 feet and to use the route he proposes would impact one homeowner for 68 feet. He further stated that his proposal is the most direct route for the neighborhood and would be safer for children on bicycles. He stated that if his request is not honored, he is after some legal leverage to reduce his property valuation. Mayor Mertensotto stated that Council cannot make a factual decision on market values but must make its decisions based on proper planning. Page No. 3865 December 7, 1993 Councilmember Krebsbach pointed to a development in Eagan, called Woodland, where all of the lots have a trail in their back yards and she does not believe the property values are diminished. Councilmember Huber moved to leave the trail design as originally established in 1992. It was noted that if no action is taken, the plat will remain as it was approved. The motion died for lack of a second. There was brief discussion over not building a trail, however it was the consensus that the option should not be considered. STOP SIGN REQUESTS Council acknowledged requests for stop signs at Dorset and Staples, Vandall Street and 3rd Avenue and Butler Avenue and View Lane, along with associated reports from the Public Works Director, Police Chief and Police Sergeant Anderson. Police Chief Delmont was present for the discussion. With respect to the Butler/View Lane request for a 3-way stop, Chief Delmont recommended that the intersection remain as it is, and if any signage is needed, View Lane be stopped at Butler because of the angle of the intersection and that Butler remain a through street. Chief Delmont stated that he supports the proposed ordinance amendment to provide for a four way stop at Dorset and Staples and stopping Vandall Street at Third Avenue. Councilmember Huber moved adoption of Ordinance No. 297, "AN ORDINANCE AMENDING ORDINANCE NO. 113.11 Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 FRIENDLY HILLS FIRST Council acknowledged a feasibility report for ADDITION STREETS proposed street and storm sewer improvements for the Friendly Hills 1st Addition. Mayor Mertensotto stated that he was disappointed with the proposed assessment rate of $3,730 when it had been indicated at prior Page No. 3866 December 7, 1993 meetings that if plastic pipe is used for storm sewer the project costs would be reduced. Engineer Klayton Eckles responded that because of the street configuration, the First Addition has more linear feet of storm sewer. By splitting the First Addition from the remainder of Friendly Hills, the storm sewer cost increases. He further stated that perforated drain pipe has been included for sump pump drainage for nearly every lot, and some owners may not need or want it. He stated that $6,300 was included to alleviate drainage problems between the old fire station site and the bank parking lot, which he proposed to be funded by the storm water utility fund. Engineer Eckles informed Council that the street construction cost is somewhat higher because it is a smaller project. Councilmember Krebsbach pointed out that a public hearing will need to be held on the proposed project. Mayor Mertensotto stated that he would like to see the assessments at $3,500 to keep the assessments for Friendly Hills uniform and not penalize the First Addition because it is proposed to be improved separately from the other two additions. Councilmember Huber asked if the engineering department has given the residents an opportunity to discuss the proposed improvements to communicate to them what is proposed and allow them to give feedback and suggestions before the hearing. He wanted to be sure that all issues have surfaced and pointed out that since the residents are the most familiar with the area, they can identify problem spots which staff may not be aware of. Engineer Eckles responded that he could write an in-depth letter to the residents describing what is proposed and encourage the residents to contact him with specific issues they may have so that they can be investigated before the hearing. Councilmember Krebsbach moved adoption of Resolution No. 93-79, "RESOLUTION ACCEPTING Page No. 3867 December 7, 1993 ENGINEER'S REPORT AND CALLING FOR HEARING ON PROPOSED STREET RECONSTRUCTION AND REHABILITATION IMPROVEMENTS TO SERVE FRIENDLY HILLS 1ST ADDITION (IMPROVEMENT NO. 92, PROJECT NO. 6A)," the hearing to be held on January 18, 1994 at 7:45 p.m. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 MINNESOTA PUBLIC LOBBY Council acknowledged a memo from Administrator Lawell regarding a request for funding from the Minnesota Public Lobby. Mayor Mertensotto informed the audience that the MPL and the South Metro Airport Action Council filed a lawsuit against the MAC charging the MAC with violation of Pollution Control Standards with respect to aircraft noise. He stated that the MPL won a Minnesota Court of Appeals ruling in the case and the MAC has filed an appeal of the decision with the Minnesota Supreme Court. He further stated that the MPL has accumulated legal bills in excess of $100,000 at this time, about 40% of which is unfunded, and they have asked their legal counsel to continue with the appeal to maintain the milestone they have accomplished. He explained that MPL is asking the city to contribute $10,000. He pointed out that the city has spent considerable money in the airport noise study and felt that the $10,000 the city would be getting more than anyone thought could be accomplished through a lawsuit. He felt the city should help MPL sustain the lawsuit and that the MPL efforts have an important benefit to the city. Mayor Mertensotto informed Council on a presentation by Dr. Clifford Bragdon at the MASAC meeting. Councilmember Smith stated that the work of the MPL has the potential for significant benefit to Mendota Heights and all of the communities surrounding the airport, and she is supportive of their request for funding. Councilmember Krebsbach moved to approve the request from MPL for $10,000 for assistance in its appeal on the basis that the group is the first to have any real progress on the issues that are important to the city and that is to recognize the noise factor of the airport, $5,000 of the funding to be appropriated from Page No. 3868 December 7, 1993 the 1993 and 1994 planning budgets payable in December and January, from the air noise consultant line item. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 CDBG Council acknowledged a memo from the City Administrator regarding the city's 1994 community development block grant application. Administrator Lawell informed Council that the city must submit a formal application for CDBG funding to the Dakota County HRA annually. He stated that as in the past two years, the application asks the HRA to reserve the funding for senior citizen housing. Ayes: 5 Nays: 0 Councilmember Smith stated that some property owners who will be affected by street improvement projects next year may be eligible for HRA assistance. She suggested that perhaps the CDBG might be an appropriate vehicle for assisting those who qualify and simply cannot afford the improvements. Administrator Lawell responded that in the case of the Furlong Addition, the entire neighborhood had to be qualified, through an HRA survey. Councilmember Smith asked if there is any vehicle available for those who simply cannot afford an assessment. Administrator Lawell responded that the most common method has been the use of deferments for senior citizens. Councilmember Koch moved adoption of Resolution No. 93 -80, "A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF MENDOTA HEIGHTS FOR FISCAL YEAR 1994 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING." Councilmember Smith seconded the motion. Mayor Mertensotto directed staff to do follow - up on what can be done to clean up the Mn /DOT and city properties north of the T.H. 110 /Dodd intersection. He further directed staff to research what be done on the possibility of setting up an economic development authority. Page No. 3869 December 7, 1993 Administrator Lawell asked Council's interest in conducting a joint tour of the Dakota County HRA senior housing center in Eagan. It was the consensus to consider touring sites in March. ADJOURN There being no further business to come before the Council, Councilmember Koch moved that the meeting be adjourned to 5:30 p.m. on December 8th for subsequent discussion on adoption of the city's levy for 1994. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: o'clock P.M. KAhleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor