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1992-12-15 Council minutesPage No. 3482 December 15, 1992 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, December 15, 1992 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 Blesener, Cummins, Koch and Smith. AGENDA ADOPTION Councilmember Smith moved adoption of the revised agenda for the meeting. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Koch moved approval of the consent calendar for the meeting along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the Code Enforcement monthly report for November. b. Acknowledgment of the minutes of the November 4, 1992 NDC -4 minutes and NDCTV Budget and direction to staff to request the Commission to submit its 1994 draft budget to Council in a timely enough fashion to allow city input prior to its adoption by the Commission. C. Acknowledgment of a letter from Sondra Simonson, Metropolitan Council representative to the MAC, regarding air noise issues. d. Acknowledgment of the Treasurer's monthly report for November. e. Adoption of Resolution No. 92 -81, "RESOLUTION APPROVING FINAL 1992 TAX LEVY COLLECTIBLE IN 1993 AND ADOPTING PROPOSED BUDGET FOR 1993." f. Adoption of Resolution No. 92 -89, "RESOLUTION AMENDING PAY CLASSIFICATION Page No. 3483 December 15, 1992 SCHEDULE FOR NON ORGANIZED EMPLOYEES TO REFLECT A THREE PERCENT ADJUSTMENT FOR 1993,11 and Resolution No. 92 -90, "RESOLUTION ADOPTING A SCHEDULE OF COMPENSATION FOR CERTAIN EMPLOYEES FOR 1993 AND ESTABLISHING CERTAIN OTHER BENEFITS." g. Authorization to conduct ice skating lessons at Friendly Hills Park and to hire Renee Sorenson as a seasonal instructor. h. Authorization to begin advertising and recruitment for new commissioners for the Parks and Recreation and Planning Commissions. i. Adoption of Resolution No. 92 -91, "A RESOLUTION ESTABLISHING TARGETED RECYCLABLES FOR 1993.11 j. Acknowledgment of a memo from Treasurer Shaughnessy regarding the employee flexible benefit plan. k. Acknowledgment of a memo from Treasurer Shaughnessy regarding the city's general insurance premium for 1993. 1. Approval of the list of contractor licenses dated December 15, 1992 and attached hereto. k. Approval of the list of claims dated December 15, 1992 and totalling $273,665.99. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 COMMENDATIONS On behalf of the City Council, Mayor Mertensotto read and presented to Councilmembers Blesener and Cummins proposed resolutions commending them for their service to the City. By unanimous consensus, Council adopted Resolution No. 92 -92, "RESOLUTION COMMENDING COUNCILMEMBER JANN BLESENER,t1 and Resolution No. 92 -93, "RESOLUTION COMMENDING COUNCILMEMBER BUZZ CUMMINS." Page No. 3484 December 15, 1992 PUBLIC WORKS GARAGE Project Manager Guy Kullander reviewed his report regarding the schematic design and projected costs for Public Works garage expansion and repairs to the existing facility and responded to Council questions regarding the need for enclosed storage of street sand and salt materials. After discussion, Councilmember Blesener moved to authorize staff to direct Station 19 Architects to proceed with construction drawings and bid documents. Councilmember Cummins seconded the motion. Ayes: 5 Nays: 0 HEARING: MENDOTA Mayor Mertensotto opened the meeting for the INTERCHANGE WATER purpose of a public hearing on proposed Mendota Interchange watermain improvements. Public Works Director Danielson informed Council that four properties are proposed to be assessed for watermain, including Resurrection Cemetery for commercially zoned property along T.H. 55. Mayor Mertensotto asked for questions and comments from the audience. There being no questions or comments, Councilmember Cummins moved that the hearing be closed. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 Councilmember Cummins moved adoption of Resolution No. 92 -94, "RESOLUTION ORDERING IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS FOR WATERMAINS TO SERVE SOUTHEAST FRONTAGE ROAD (IMPROVEMENT NO. 84, PROJECT NO. 2C)." Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 HEARING: STORM WATER Mayor Mertensotto opened the meeting for the DRAINAGE UTILITY purpose of a public hearing on creation of a storm sewer utility. Council acknowledged receipt of a report and proposed ordinance from Engineer Klayton Eckles. Engineer Eckles reviewed graphics illustrating -- the need for the utility, including correcting deficiencies in the existing storm sewer Page No. 3485 December 15, 1992 system and financing projects for which assessments are no longer a valid source of funding. He briefly reviewed the proposed rate structure, explaining that the quarterly billing for the storm sewer utility would be included on the sanitary sewer bills sent to property owners. He informed Council and the audience that revenues generated by the utility could be used to finance environmental protection measures, capital system improvements, wetland program improvements and routine storm sewer costs. Councilmember Blesener felt that the modest reserve projected is too small and suggested that the rate structure be more aggressive so that the rates do not have to be revisited in the future. Mayor Mertensotto responded that he does not want to build a large reserve but rather to cover known projected costs. Councilmember Cummins stated that he would rather be conservative starting out and pointed out that future Councils will have the ability to raise the rates if necessary. Mayor Mertensotto asked for questions and comments from the audience. Councilmember Koch stated that the ordinance language is such that the utility will be perpetuated as long as Council deems necessary. She expressed concern that a 19 to 20 year need has been anticipated and that to often something is implemented and never ends. Mayor Mertensotto responded that the intent is to continue the utility as long as the bonded indebtedness needs to be covered and that the anticipated bonding need is $1 million. He stated that although Council could stipulate in the ordinance that it will continue for a minimum of 20 years, Council has the right to amend the ordinance at any time, including termination of the utility. Administrator Lawell stated that it would be very difficult to put a sunset provision, but that because the utility will generate money, the revenues will be kept in a separate fund and Council will be updated each year as to the fund balance and what proceeds will be needed. He further stated that Council will Page No. 3486 December 15, 1992 certainly review the rates and needs each year. There being no questions or comments from the audience, Councilmember Blesener moved adoption of Ordinance No. 288, (codified as Ordinance No. 810), "AN ORDINANCE OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA, ESTABLISHING A STORM WATER DRAINAGE UTILITY." Councilmember Cummins seconded the motion. Ayes: 5 Nays: 0 Councilmember Cummins moved adoption of Resolution No. 92 -96, "RESOLUTION ADOPTING CITY POLICY FOR IMPLEMENTATION OF THE CITY STORM WATER DRAINAGE UTILITY ORDINANCE AND ESTABLISHING AN EFFECTIVE DATE AND RATE SCHEDULE," amended to add a paragraph stating that a storm water utility fund will be established. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 ASSOCIATED BUREAUS Council acknowledged a memo from Administrator Lawell regarding the ABI development proposal along with a letter from City Attorney Hart, a "Form of Letter11 prepared by ABI's counsel Jim Casserly, a letter from Daniel Holte of Intertech regarding the Phase I Environmental Property Assessment conducted at the ABI site, and a proposed contract for private development for the ABI project. Attorney Hart stated that he has been negotiating the development agreement with representatives of ABI and that the proposed agreement is before Council for approval this evening. He stated that from a legal perspective, he is comfortable with the agreement and informed Council that the city will be receiving a compliance letter from Intertech. City Administrator Lawell stated that the agreement would be the final approval for the tax increment component of the project, and would also be the final Council action needed on the ABI project. He informed Council that no financial transaction will take place until after the city's Code Enforcement officer issues a certificate of occupancy for the building. He stated that the last action taken by Council on the matter was to review Page No. 3487 December 15, 1992 and approve the planning requests and building permit, and that ABI must submit construction plans to the Code Enforcement Office and acquire a building permit. Councilmember Smith asked whether section 6.1 of the agreement means that technically the business of ABI could be sold with a lease on the property but Hurley Partners could still retain title to the property. Mayor Mertensotto responded that ABI is not a party to the agreement but is a closely held corporation. Attorney Hart stated that although Council can make any restrictions it wants, the intention is that the only permitted transfer is Hurley Partners as the land owner and ABI as the tenant. He stated that Council could certainly clarify that a transfer by ABI of an interest in the property would constitute a violation of the agreement. If ABI sells its assets it would be assigning the least, and if Hurley sells the stock, the city still has an agreement. He further stated that the city is consenting to the least by Hurley Properties and ABI in the agreement, and that the most common transaction in the selling of a business is the sale of assets. Councilmember Cummins to approve the Contract for Property Development for Hurley Partners along with authorization for its execution by the Mayor and City Clerk. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 IVY FALLS CREEK Council acknowledged a report from Public Works Director Danielson regarding Ivy Falls Creek outlot assessments, along with a letter from Attorney John Daubney, representing Ms. Joan O'Brien, and a letter from Larry Wacker, Landscape Architect, and Ellis Abrahamson recommending that a landscape architect be involved in the project design process. Mayor Mertensotto informed the audience that Council has the authority to reduce the assessment roll and stated that he would like to adopt a resolution reducing all of the Ivy Falls Creek project assessments by 10a and reserving the right to assess that amount Page No. 3488 December 15, 1992 ($15,000) against the three outlots owned by the Ivy Falls Homeowners Association. Administrator Lawell informed Council that staff has not heard from any of the people who have filed assessment objections as to whether they have filed an action. Councilmember Cummins asked whether the action suggested by Mayor Mertensotto would satisfy anyone but Mrs. O'Brien. Mayor Mertensotto responded that Mr. Daubney has indicated to him that he would recommend to Mrs. O'Brien that she not challenge her assessment if the roll is reduced. He further stated that Leon Goodrich, Homeowners Association representative, has informed him that all of the association members are voting members and he would have to call for a hearing of the association. Mayor Mertensotto suggested that Council put the association on notice that it is considering assessing the association $15,000 for the three parcels. He pointed out that the city must acquire easements from the association for the project. Mayor Mertensotto acknowledged a letter from Dr. Dennis regarding his objection to the assessment, and stated that written objections by law must have been filed at or before the public hearing. He further stated that Council would have to do independent research as to whether Council has the authority to receive objections beyond the hearing date, and suggested that the request be put on hold at this time. Councilmember Cummins pointed out that at one time a strong case was made that if the association is assessed it is unlikely the assessment will be paid. He felt that what Mayor Mertensotto suggests will result in shifting $15,000 from the project to the general public. Mayor Mertensotto responded that if the reduction pacifies some of those who have filed objections, the city will have gained by taking the action. Councilmember Cummins suggested tabling the matter and directing staff to contact the Page No. 3489 December 15, 1992 property owners who have filed objections to determine their intent to file an appeal. If the response is that they will not sue the city if the roll is reduced by 10 %, then it would make sense to do so. Mayor Mertensotto responded that the property owners who have filed objections with the city will have to take action within 15 days. Councilmember Blesener felt that it is a matter of principle - the association must be assessed a share of the costs and has an obligation. If the assessments are not paid and the property goes tax forfeit, the association will lose its exclusive right to the property. Councilmember Smith stated that she believes that the association at some point in the past made an offer to sell the outlots to the city. Councilmember Cummins agreed, and stated that he does not think that most members of the association care about losing the outlots. Councilmember Smith stated that she l understands the city has consulted an appraiser and she felt there is definite benefit to the properties on the creek if the work is done. Mayor Mertensotto recommended that a resolution be prepared to reduce each of the 31 assessments on the assessment roll and that staff be directed to prepare a letter to all of the affected property owners. Councilmember Blesener moved to direct staff to amend the assessment roll for the 31 property owners and reduce each assessment by 10 %, reducing the roll from $150,000 to $135,000 and reserving the right to assess the $15,000 to the homeowners association, and further to direct staff to forward a letter to each of the property owners who have been assessed. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 PROPERTY ACQUISITION Council acknowledged a memo from Treasurer Shaughnessy recommending the purchase through tax increment financing of parcels of land Page No. 3490 December 15, 1992 owned by Jean Franson, Don Perron and Lyman and Janet Franson along T.H. 55. Mayor Mertensotto was concerned over the recommendation that the Jean Franson homestead purchase offer provide for a life estate. Mr. Shaughnessy responded that he would like to accomplish the purchase of the other three parcels, which do not involve life estate, at this time. This would provide 9 acres for development, leaving the homestead parcel for future acquisition. Mayor Mertensotto suggested that staff review how the homestead might fit in the overall development of the area and that perhaps a cap could be placed on a life estate purchase offer. Councilmember Smith moved to authorize staff to submit a purchase offer to the owners of parcels 1, 2 and 3 for the amounts recommended in Treasurer Shaughnessy's memo, with the understanding that more research will be made into a life estate provision for the homestead parcel. 1 Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 CDBG GRANT Council acknowledged a memo from Administrator Lawell regarding the City's 1993 Community Development Block Grant application. Ayes: 5 Nays: 0 After brief discussion, Councilmember Blesener moved adoption of Resolution No. 92 -95, " A RESOLUTION APPROVING THE APPLICATION FOR THE CITY OF MENDOTA HEIGHTS FOR FISCAL YEAR 1993 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING," reserving the city's allocation for the senior housing project site acquisition program. Councilmember Cummins seconded the motion. Staff was directed to get assurances from the HRA that the HRA allocations for the program will be available when needed. COUNCIL COMMENTS Mayor Mertensotto and Councilmembers Koch and Smith wished Councilmembers Blesener and Cummins well, asking them to remain involved in city activities even though they will no Page No. 3491 December 15, 1992 longer be on the Council, and expressed their appreciation. ADJOURN There being no further business to come before the Council, Councilmember Cummins moved that the meeting be adjourned. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:43 o'clock P.M. K thleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor December 15, 1992 Excavating License Hubbell Excavating Concrete License Robert Compton, Inc. Gas Piping License Cool Air Mechanical Northwestern Service, Inc. HVAC Contractors License Cool Air Mechanical Drywall License B.C. Drywall, Inc. Sign License Elements, Inc.