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1992-11-17 Council minutesPage No. 3447 November 17, 1992 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, November 17, 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 Blesener moved adoption of the revised agenda for the meeting. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Smith moved approval of the minutes of the November 4, 1992 Election Canvassing Board meeting. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Blesener moved approval of the consent calendar for the meeting along with authorization for execution of any necessary documents contained therein. a. Acknowledgement of the Treasurer's monthly report for October. b. Acknowledgment of receipt of the minutes of the October 7th and October 22nd NDC -4 meetings. c. Adoption of Resolution No. 92 -77, "RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT FOR NORTHLAND DRIVE RAILROAD CROSSING AND TERMINATION OF ESCROW AGREEMENT." d. Adoption of Resolution No. 92 -78, "RESOLUTION AUTHORIZING THE CITY TO ENTER INTO AN AGREEMENT WITH MN /DOT FOR ROAD LIFE COMPENSATION FOR MENDOTA HEIGHTS ROAD." Page No. 3448 November 17, 1992 e. Adoption of Resolution No. 92 -79, "A RESOLUTION ESTABLISHING RULES AND RENTAL FEES FOR USE OF CITY PARKS AND PROPERTY." f. Acknowledgment of the minutes of the November 10th Parks and Recreation Commission meeting. g. Approval of the list of contractor licenses dated November 17, 1992 and attached hereto. k. Approval of the list of claims dated November 17, 1992 and totalling $621,818.61. 1. Approval of the permanent appointment of Gary Pike as Public Works Maintenance Worker and his progression to the level of Maintenance II. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 ASSOCIATED BUREAUS Council acknowledged a memo from Treasurer Shaughnessy and a proposed developer's agreement for the use of Tax Increment Financing for the Associated Bureaus project. City Attorney Hart stated that he believes the agreement to be fairly close to a final draft. He informed Council that he received a surprising call recently from the financing representative for ABI reiterating their desire for a land write -down in the financing package, which is not Council's preferred package. Council's stated preference was that there be no land write -down he had suggested to Mr. Casserly, ABI's financing representative, that he give the city an opinion that the expenses proposed are eligible for TIF. He stated that Mr. Casserly will only provide an opinion if it includes a land write -down and says that basically the city will be funding the costs of the schedule provided by the developer and the mechanism for doing it is a land write -down. Mr. Hart further stated that Mr. Casserly has been told that this is not the way the city wants to go and that the city wants to be kept out of the chain of title. He pointed out that there may also be other reasons why this is not the way Council wishes to go. He stated that he Page No. 3449 November 17, 1992 believes the costs which were itemized fall within the general parameters of the basis on which the economic development district was established but he thinks it is appropriate and reasonable to ask for an opinion from ABI's legal representative that the costs are eligible. Councilmember Blesener asked what risk the developer would have if they do not have a land write-down clause in the agreement. Attorney Hart responded that the city indemnifies in the agreement that if parts of the schedule were ever to be considered inappropriate for use of TIF the city would get its money back. Mayor Mertensotto asked whether a bond was sold for the original TIF. Treasurer Shaughnessy responded that only $1 million was bonded for the initial project, and the final payment on the bond is due in 1993. Funding for the ABI project would come entirely from taxes generated on the project. Mayor Mertensotto suggested that the agreement be laid over to the next meeting and that Attorney Hart point out to Mr. Casserly that bond proceeds are not being used to finance the project. Councilmember Cummins asked if the real hang- up is that Mr. Casserly won't give the city an agreement letter or if he wants the indemnification clause removed. Attorney Hart responded that Mr. Casserly does not want the clause removed but he does not want to give an opinion letter without the land write-down. He felt that it is certainly reasonable for the city to require an opinion. Councilmember Smith asked if the city is at risk if it does not receive an opinion. Mr. Hart responded that there is always some risk in transactions of this type and the city would have a good argument that all of the costs in the proposal qualify for TIF. There is, however, is certainly a possibility that someone involved in the government could challenge it in future years. He stated that although this would be highly unusual, he would rather have the comfort of knowing that Page No. 3450 November 17, 1992 the developer has looked at it at the outset as well. He further stated that United Properties' legal representative agrees with the city's approach. It was the consensus that action on the matter be tabled to December 1st and that City Attorney Hart be directed to confer with Mr. Casserly. AIR NOISE UPDATE Council acknowledged receipt of a community air noise update from Administrator Lawell, specifically regarding the MAC P&E Committee recommendation for a 60 day fanned corridor procedure test, a hearing on the MAC Noise Ordinance to be held on November 30th, and a complaint from Mr. Joe Meagher regarding Runway 4-22 usage. Council also acknowledged a copy of a memo from Nigel Finney P&E Deputy Director regarding corridor issues, a copy of a letter from Metropolitan Council Chair Mary Anderson to the MAC Commissioners regarding the P&E Committee recommendation, copy of a letter from Administrator Lawell to MAC Chair Hugh Schilling, excerpts from material presented at the November 12th MAC meeting relative to the MAC Air Noise Budget, and a copy of a letter from MAC Aviation Noise Programs Manager to Administrator Lawell regarding runway 4 operations. Mayor Mertensotto informed Council that the MAC has rejected the recommendation of the P&E Committee, and adopted its staff recommendation, which the city objects to, even though the P&E Committee had unanimously recommended implementation of the 60 day test. He stated that the city has even received a surprising letter from the Metropolitan Council that the city did not comply with land use requirements, which is incorrect. Councilmember Smith stated that the city seems to have lost the battle but that she thinks there are more avenues from which to approach the matter. She suggested that Council request that an air noise abatement committee be formed, consisting of a staff member, a Council member and citizen members to form strategies and help alleviate the problem. Mayor Mertensotto agreed, stating that if the city is ever to succeed, it must have a citizens group. He supported the appointment Page No. 3451 November 17, 1992 of a steering committee before the end of the year. PARK DEDICATION FEES Council acknowledged a memo from Administrative Assistant Batchelder regarding a proposed increase in the park contribution formula. Councilmember Blesener suggested that the formula for large lots is disproportionate. Administrator Lawell responded that the Park and Recreation Commission generally felt that large property owners could afford a larger fee but did not suggest one. The issue is one of all the property that has developed previously under the existing set of rules of either land or $750 per lot. The question is one of whether those who develop properties now should be penalized. Administrative Assistant Batchelder stated that the park dedication survey does not provide information on whether developers have the choice of cash or land dedication. Typically, if there is a large subdivision in the city, a land dedication is required. For small developments, the city likely could not get enough land to be useful. He stated that the question is what is appropriate as a cash dedication, and that his memo suggests establishing a dedication based on the use of the parks by the new lots although there certainly is an equity issue. Councilmember Smith did not think a good reason to charge more is that those who own large properties can afford it more. She also felt that the multi - family contribution is too low because such developments bring more people and more demand for parks - multi- family is a much more intensive use than single family. She asked whether other communities relate park dedications to land acreage or the number of units proposed. Assistant Batchelder responded that Fridley has a square foot rate but that is for a commercial cash dedication and calculates to about $1,500 per acre. With respect to multi - family, Councilmember Smith asked if there is a way to tie a land dedication to a per unit basis, for instance Page No. 3452 November 17, 1992 12 units per acre pays 12 times the dedication fee or land. She asked if multi-family can be put on a formula basis to make it equitable with single family. Councilmember Blesener stated that Council is basically going to pass a new resolution to establish park dedication for all properties in the city. She objected to larger lots paying more, pointing out that the large lot developments already preserve open space. She suggested tying the number of units to the amount of land to be dedicated or the site of the plat. She felt that it is important that the city always protect its option to require land or cash and should have a greater role in determining which form the contribution should be. Assistant Batchelder responded that the park dedication ordinance language clearly states that the city has the option of choosing cash or land. Councilmember Cummins stated that he does not share the concern over large lot contributions but could see graduating the fee upwards for large lots. In those cases, the city has the option of taking a very big piece of land which would have much greater value than the proposed cash dedication. Councilmember Smith responded that she does not believe there will be enough lots platted in excess of 1.5 acres in the future to make any difference. Councilmember Koch stated that the whole process bothers her and that she feels the park contribution requirement is a burden to land owners. She further stated that while she understands that the city must look out for its interests, but the recommended contribution rates are proposed to change dramatically from the existing rates and she sees no rationale for the increase. Councilmember Smith stated that the 10% land dedication has little relationship to the cash dedication amounts. She asked whether increasing the charges is a priority of the Park Commission. Page No. 3453 November 17, 1992 Assistant Batchelder responded that the Commission was looking at a specific subdivision proposal recently and when they made their recommendation for increasing the fee they felt there should be a larger fee for larger lots. It was the consensus to table the matter and direct staff to prepare additional research. IVY FALLS CREEK Mayor Mertensotto opened the meeting for the purpose of an informal hearing on proposed Ivy Falls Creek improvements. Council acknowledged a report from Public Works Director Danielson; a letter from Mr. Chris Doyle, 642 Maple Park Drive, expressing concern over the easement over his property and the potential for personal injury; a letter from the City's insurance risk manager, Berkley Risk Services, Inc., in response to Mr. Doyle's letter; a copy of the letter sent to affected property owners informing them of this evening's informal hearing and proposed project details; and an excerpt from the "Ivy Falls Creek - Conceptual Design Report," prepared by BARR Engineering for the Lower Mississippi River Watershed Management Organization. Council also acknowledged letters from the Lorentzen family trust supporting the project, from Ellis Abrahamson objecting to the proposed improvement and assessments and suggesting another stabilization plan as proposed in a letter from a consultant he had asked to look at the problem, and a letter from Mr. & Mrs. Eric Miller objecting to the proposed assessment plan. Hydrologic engineering experts Jim Langseth, from BARR Engineering, representing the Lower Mississippi River WMO, and Glen Sanders, from Wenck Engineering, were present to introduce the project. Mayor Mertensotto informed the audience that no decisions would be made on the project this evening. He turned the meeting over to Public Works Director Danielson. Mr. Danielson gave the audience a history of the project and showed several slides of the creek and its tributaries to identify the major problems for the audience. Page No. 3454 November 17, 1992 Mr. Langseth reviewed several overhead graphics. He explained that the creekbed is searching for a flatter slope and will not quit eroding until it finds a flatter, more stable slope. The creek bottom will continue to drop, and as it drops it also meanders, cutting into either bank. In order to avoid the consequences, the creekbed must be stabilized. He reviewed the many solutions which have been considered, and stated that considering the initial cost, cost over time, safety, etc., the best and most cost effective solution has been determined to be to provide additional ponding capacity in the Ivy Falls Park pond and to install small drop structures in the creek bed to stabilize it. He informed the audience that the drop structures, which will look like small water falls, will blend in with the environment, reduce erosion and sedimentation, and will be aesthetically pleasing. He stated that the solution, which will raise the creek bed, stabilize it and restore the valley walls, is a proven solution and a cost conscious one. Mr. Sanders stated that his firm was contacted by the city to review the BARR Engineering design and criteria to see if it is a viable solution for this project. He informed the audience that after reviewing all of the alternatives for the project, he agrees with what is proposed by BARR as being the best and most cost effective solution. Mayor Mertensotto asked for comments from the audience. Mr. Ellis Abrahamson stated that the expert he had contacted, Dr. Paul Earle, suggested using sandbags and restricting yard sprinklers. He asked whether the city's consultants consider the soil in the area stable. Mr. Langseth responded that any soil at too steep a slope is unstable, so it is vital that the slopes not be excessively steep - if ground water is discharging out of a slope, the slope is inherently unstable. Mr. Jerome Crary informed Council that he lives at the curve in Laura Court. He stated that something has been left off of the experts' charts. When the gabion project was Page No. 3455 November 17, 1992 done several years ago, the commitment from the former City Engineer was that if the project did not solve the problem the city would build a second structure behind his house because the intent was to try to break up the flow of the creak. The water goes down from Dodd through the gabion structures and begins to boil and cause much erosion. He stated that he is disappointed to hear that Laura Court is not being addressed and nothing is to be done with the culvert and that he continues to lose property and his retaining wall. Also, he felt that it would be beneficial to take a video of the creek during a storm to see the creek in action. He stated that when there is a heavy rain the run off from above keeps picking up velocity. Public Works Director Danielson responded that the intent is to improve the outfall behind the Crary home - the outlets are where problems typically occur. Mr. Jack Brassard stated that he has recently walked down the creek and that there are about 25 trees in the creek now, 1 1/2 to 2 feet in diameter, which are probably 75 years old and can never be replaced. He further stated that there are trees on the bank which could never be replaced if they are lost. He informed Council that the Miller property is terrible and another major storm could jeopardize the foundation of their house. He felt that something must be done now and it should be nothing less than the best project to take care of the problems. Mr. Alan Taylor, 1297 Sylvandale, asked what will be done where the culvert runs past his house. Public Works Director Danielson stated that the final design has not been done yet but that he envisions putting the water into a pipe and piping it down to the main stream channel from the road. Mr. Taylor responded that if this were to be the solution he would lose the creek which enhances his property. Ms. Joan O'Brien expressed her concern that the entire watershed area is not paying for the improvement. Public Works Director Danielson reviewed a map depicting the drainage district which contributes to the Page No. 3456 November 17, 1992 flow in the creek. He explained that about one -half of the water comes from West St. Paul, which will contribute to the project costs based on the Watershed Management Organization formula. He reviewed the funding formula, which consists of assessing 15% of the project costs and financing the remaining 85% through tax increment financing for pond construction costs, extension of the levy which was initiated for the first Ivy Falls project, a contribution of $55,000 from the City of West St. Paul, and the initiation of a storm water utility. Ms. O'Brien asked if some of the water from new developments can be re- directed so that it does not flow into the creek. Mr. Danielson responded that there is no opportunity available to re- direct the flow. Mr. Langseth stated that it may be possible that some of the water coming from West St. Paul (68 acres) will be diverted in the future as part of a global watershed within the WMO, but that to take water from low areas to high areas (streets) would be extremely costly if at all possible. Ms. Marilyn Miller commended Council and staff for an excellent presentation and asked for an explanation of the area /frontage assessment and why it is proposed to assess 15% when Council had discussed percentages varying between 10% and 30% at a recent workshop she attended. Mayor Mertensotto responded that there was discussion over assessments of 10 %/20 %/30% at the workshop and that Council had to look at the overall financing package. Any reduction of the proposed assessment percentage would result in an increase in the proposed quarterly charge for the storm water utility. Councilmember Blesener stated that the 10% figure was never endorsed but was simply put forth as an alternative. Mrs. Miller stated that from a home - owner's viewpoint she thinks it should be seriously considered and that she has a problem with the funding concept. She also asked what happened to the possibility of assessing the homeowners's association. Page No. 3457 November 17, 1992 Mayor Mertensotto responded that the association does not have any money and if it were assessed it is likely the property would go tax forfeit. He stated that he does not think there was ever any thought given to assessing the association. Administrator Lawell stated that the total project cost has remained the same through much of the discussion that has occurred. The percentage of assessment has held at 15%, and the amount that was outside of that which was proposed at one time to be assessed to the association has been absorbed by the storm water utility and not by assessments. Mr. Harvey Miller, 715 Sylvandale Court, stated that the association is a going concern which has money and pays taxes on the property and insurance. He felt that it should be assessed and that no one in the association would disagree with getting something done to the creek. Mr. Alan Taylor stated that part of the assessment is for area and part for frontage. The creek bed contributes to the frontage part of his proposed assessment, yet the creek will be taken away from him if the project is done. Mayor Mertensotto asked why pipe is being suggested for this reach. Engineer Klayton Eckles responded that the property borders the main creek as well as the tributary, and when he did a cost calculation for addressing the problem of the tributary, which has some serious erosion, he determined that the most cost effective solution would be to install a pipe in the tributary. He further explained that significant cost is added to the project when pipes are added to take care of the tributary erosion problem. This is why the proposed Taylor assessment has increased. Adding the pipe is just for the benefit of the Taylor property, which is not part of the creek system. Public Works Director Danielson stated that at this point the project is just in the schematic design process and that he would be willing to work with Mr. Taylor to do something more desirable to him. Page No. 3458 November 17, 1992 Mr. Abrahamson asked Mr. Sanders to respond to his expert's suggestion. Mr. Sanders responded that his opinion is that the sandbags could possibly be used in a low flow situation but big storms would wash them away. He did not believe they would work in the creek. Mr. Crary stated that discussion has been going on for 10 years and the problem has been studied to death. He further stated that all anyone must do to know that something must be done is to look at what has happened to the creek over the past several years. He further stated that people must realize that 85% of the proposed cost will be funded by sources other than assessments and that everyone must consider the hazards which exist. Mr. Brassard stated that no one wants to pay an assessment but that property owners are losing as much in value per year as what is proposed.to be assessed. Mr. Abrahamson referred to the statement in his letter regarding the former City Engineer's comments on future assessments. Mayor Mertensotto responded that Mr. Abrahamson was quoting from an engineer's report which Council has no background on and informed Mr. Abrahamson that Council would never tell an individual that he would never be assessed for future improvements. Councilmember Smith stated that essentially only gabions have been presented as a solution yet the consultants say that other options could be feasible. She asked whether the engineers, in the design stage, will look at other possible options where something as sturdy as a gabion is not needed. Mr. Langseth responded that this is the phase of the study at which one determines which alternative will be the most cost effective: the alternatives have already been narrowed down to the small drop structures, and gabions are the best of small drop structures in terms of proven technology. He further stated that most of what would be considered as alternatives are unproven and he could not say that they would be durable enough and that he Page No. 3459 November 17, 1992 believes what is proposed is the most appropriate and cost effective solution. Councilmember Smith asked what kind of life can be expected from this type of improvement. Mr. Sanders responded that gabions were first developed in Europe and have been in use for about 50 years - they have been in use at least 20 years in Minnesota and have held up well. He stated that he feels the gabion drop structures provide the best solution. Responding to a question from Councilmember Smith regarding ponding, Engineer Eckles stated that the existing pond in Ivy Falls Park does not even have to change. The plan is to increase the holding capacity, not to increase the size of the pond. The pond will hold more water for a period of time, and that water will totally empty into the creek at a metered rate. After discussion, it was the consensus to increase the prosecution line item in the proposed 1993 budget by $33,000 for purpose of the December 1st public hearing and to direct staff to request proposals from legal firms. There being no further comments, Mayor Mertensotto thanked the audience members for their attendance and comments and reminded them that a formal public hearing on the matter will be conducted on December 1st. STORM WATER UTILITY Council acknowledged a report from Assistant City Engineer Klayton Eckles regarding the proposed storm water drainage utility ordinance and policy. Council also acknowledged receipt of the proposed policy. Councilmember Cummins moved that a public hearing on the establishment of a storm water utility be held at 8:00 P.M. on December 15th. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 PROSECUTION FEES Council acknowledged a memo from the City Administrator regarding a request from Winthrop and'Weinstein for an increase in police prosecution legal fees. Administrator Lawell summarized the information for council. After discussion, it was the consensus to increase the prosecution line item in the proposed 1993 budget by $33,000 for purpose of the December 1st public hearing and to direct staff to request proposals from legal firms. Page No. 3460 November 17, 1992 COUNCIL COMMENTS Mayor Mertensotto asked Public Works Director Danielson to contact Mrs. Kennedy with respect to future planning for the utility layout which will affect her property on Delaware Avenue. Councilmember Cummins informed Council that the Metropolitan Council District 15 seat is up for appointment and he is a member of the screening committee. Councilmember Blesener asked why a large pile of sand has been dumped in the Mendakota Park parking lot. Administrator Lawell stated that the material will be needed in the spring and was placed in the parking lot now so that it can be moved onto the field areas after the ground freezes and does not have to be brought in during the spring when the ground is soft. Councilmember Blesener expressed concern over the safety of children who are playing in it and potential damage to the parking lot. Administrator Lawell stated that he will look into the matter further. ADJOURN There being no further business to come before the Council, Councilmember Blesener moved that the meeting be adjourned. Councilmember Smith seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 11:06 o'clock P.M. gathleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL November 17, 1992 General Contractors License Ryan Company Inc. Industrial Door Co., Inc. Concrete License A & B Cement Const. Inc. Hafner/Nelson Masonry Inc. Gas Piping License Rouse Mechanical Metro Air Inc. Waste Inc. DBA A-Aarons HVAC Contractors License Northwestern Service, Inc. Metro Air, Inc. -fll