1992-11-03 Council minutesPage No. 3437
November 3, 1992
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Regular Meeting
Held Tuesday, November 3, 1992
Pursuant to due call and notice thereof, the regular meeting of the
City Council, City of Mendota Heights, was held at 8:01 o'clock P.M.
at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
Mayor Mertensotto called the meeting to order at 8:10 o'clock P.M.
The following members were present: Mayor Mertensotto, Councilmembers
Blesener, Cummins, Koch and Smith.
AGENDA ADOPTION
Ayes: 5
Nays: 0
APPROVAL OF MINUTES
Ayes: 5
Nays: 0
Ayes: 4
Nays: 0
Abstain: 1 Blesener
Councilmember Blesener moved adoption of the
revised agenda for the meeting.
Councilmember Koch seconded the motion.
Councilmember Blesener moved approval of the
minutes of the September 15, 1992 regular
meeting.
Councilmember Koch seconded the motion.
Councilmember Smith moved approval of the
minutes of the October 20, 1992 regular
meeting.
Councilmember Koch seconded the motion.
CONSENT CALENDAR Councilmember Cummins moved approval of the
consent calendar for the meeting, amended to
move item 5e, VGC Development Agreement, to
the regular agenda, along with authorization
for execution of any necessary documents
contained therein.
a. Acknowledgement of the code enforcement
monthly report for October.
b. Adoption of Resolution No. 92 -72,
"RESOLUTION ACCEPTING WORK AND AUTHORIZING
FINAL PAYMENT FOR KENSINGTON PARK GRADING
(IMPROVEMENT NO. 89, PROJECT NO. 6E),"
authorizing final payment of $5,877.50 to
Steininger Construction Company, Inc. for
work completed on the project.
Page No. 3438
November 3, 1992
c. Adoption of Resolution No. 92 -73,
"RESOLUTION ACCEPTING WORK AND APPROVING
FINAL PAYMENT FOR KENSINGTON PARK
UTILITIES (IMPROVEMENT NO. 89, PROJECT NO.
6E)," authorizing final payment of
$1,481.20 to R &P Utilities, Inc., for work
completed on the project.
d. Adoption of Resolution No. 92 -74,
"RESOLUTION ACCEPTING PETITION AND
ORDERING FIRE PROTECTION IMPROVEMENTS FOR
ST. THOMAS ACADEMY."
e. Acknowledgment of a 1993 snowplowing
update memo from Public Works Director
Danielson.
f. Approval of the list of contractor
licenses dated November 3, 1992 and
attached hereto.
g. Approval of the list of claims dated
November 3, 1992 and totalling $195.324.60
Councilmember Koch seconded the motion.
Ayes: 5
Nays: 0
VGC DEVELOPMENT Administrator Lawell briefly informed
AGREEMENT Council on changes which have been made to the
draft VGC development agreement, particularly
with respect to the transferability of the
property. There was discussion over the
transfer of property (Section 3.1) by quit
claim deed versus warranty deed. It was the
consensus that the transaction should be by
quit claim deed so that the city is removed
from the chain of title.
After brief discussion, Councilmember Cummins
moved to approve the draft VGC Development
Agreement, revised as to Section 3.1 to remove
the city from the chain of title.
Councilmember Smith seconded the motion.
Ayes: 5
Nays: 0
CASE NO. 92 -33, Councilmember Cummins moved to approve a
McGUIRE 4 1/2 foot variance to the required 30 foot
sideyard setback abutting a street requirement
for 30 Dorset Road, to allow construction of
an attached garage and additional living
space, with the condition that the existing
Page No. 3439
November 3, 1992
driveway be removed and replaced with sod, as
recommended by the Planning Commission.
Councilmember Smith seconded the motion.
Ayes: 5
Nays: 0
CASE NO. 92-32,
NORTHLAND COMPANIES/ Council acknowledged a memo from Administra-
ASSOCIATED BUREAUS tive Assistant Batchelder regarding the
request from the Northland Companies and
Associated Bureaus for subdivision
(preliminary and final plat approval),
building permit and site plan approval and tax
increment financing. Council also
acknowledged a letter from Casserly, Molzahn &
Associates, Inc. regarding the Associated
Bureaus tax increment financing request,
copies of the spreadsheets, originally
submitted on the proposed projects on August
18th, revised with respect to market value and
building value, a report from the City
Planner, and a letter from George Burkhards,
representing United Properties.
Mr. Wayne Bishop, of Walsh Bishop, project
architects, state that the proposed 65,000
square foot, one-story building, will be brick
with reflective glass and will serve as the
corporate headquarters for ABI. The site plan
is oriented to the Minnesota River, and the
building will be split between administration
and collections. ABI is a nationally ranked
collection agency. There will be a heavily
landscaped entry area, retention ponds to the
south and parking to the north and east. An
expansion parking area will be provided to the
north on land which is under option.
Mayor Mertensotto asked about the proposed
realignment of Commerce Drive. Mr. Bishop
responded that the cul-de-sac is no longer
needed.
Councilmember Smith noted the Planning
Commission concern over the bubble effect at
the building entrance and the turning radius.
Mr. Bishop responded that he will work out a
revision with the city engineering staff.
Responding to a Council question, Mr.
Burkhards explained changes from the
originally submitted preliminary plat. He
Page No. 3440
November 3, 1992
also stated that a petition for utilities has
been submitted to City staff.
Responding to a question from Mayor
Mertensotto, Public Works Director Danielson
stated that drainage easements have been
identified, that two ponds are proposed (north
and south), that the south pond will be built
with the project but that the north pond is
not needed yet.
Mr. Burkhards stated that ponds are amenities
as well as water storage areas and if ABI does
not exercise its option on the land, the north
pond configuration may move.
Mayor Mertensotto stated that the developers
must provide the location for a future north
pond easement. Mr. Burkhards responded that
he does not want to encumber the property with
an easement and stated that the proposed
location is shown on the site grading plan.
Mr. Bishop informed Council that parking will
be provided for 600 employees, that the
building will be predominantly brick, with
decorative pre-cast architectural block and
reflective glass. The main entry will have a
decorative trellis and there will be flags at
every entry area. The building will be 16
feet tall with a flat roof, and there will be
a parapet to cover rooftop units.
Councilmember Blesener asked why the building
will be one-story. Mr. Bishop responded that
it is designed for function and economics,
administration and collections will be in
separate wings.
Councilmember Blesener expressed concern about
the expanse of roof visible from Highway 13.
Mr. Bishop stated that the parapet will be
provided to screen rooftop material but that
he is not sure how high new Highway 13 will
be. With respect to landscaping, he stated
that the focus is at the entry boulevard, that
the existing vegetation along Highway 13 will
be retained and additional landscaping will be
added to that area.
Mayor Mertensotto asked if trees can be
provided along the building to break up its
length. Mr. Bishop stated that he would have
Page No. 3441
November 3, 1992
no problem with adding trees. He then
explained the landscaping plan details.
Councilmember Blesener pointed out that the
proposed structure will be the closest
building to the airport. Mr. Bishop responded
that acoustical building materials will be
used to shield the airport noise. He informed
Council that acoustical improvement is a
number one priority of ABI, and that he has
visited buildings with similar acoustical
features. He further stated that triple pane
glazed glass, a 12 inch concrete roof and
extra structural details will be utilized.
Mr. Jack Hurley, President of ABI, stated that
a two-story structure would not function for
the computers and collection area, and that
telephone lines and background noise are big
concerns - outside interference cannot be
tolerated.
Councilmember Smith stated that she would
welcome ABI to the City yet feels a certain
inconsistency with what is proposed and the
city picking up design costs - the city is
being asked to pick up extra costs.
Mr. Jim Casserly reviewed the TIF proposal,
stating that the request is for $696,150,
while $821,900 in eligible expenses can be
identified.
Mayor Mertensotto pointed out that more than
half of the request is for sound attenuation.
Councilmember Blesener asked what percentage
$821,900 is of the total project cost as
compared to other projects in the District.
She also questioned the allowability of some
of the items usually considered "ground down."
Mr. Casserly responded that the project cost
is $5 million.
Councilmember Smith asked if building
improvements are allowed since TIF usually
only is used for improvements from the ground
down. Treasurer Shaughnessy responded that
$821,900 is a percentage of the project cost
and explained what improvements are allowed
under TIF.
City Attorney Hart stated that it must be
borne in mind that the city must verify
Ayes: 5
Nays: 0
Page No. 3442
November 3, 1992
that the costs are qualified. He further
stated that the Tax Increment District was set
up to redevelop the MAC site where noise
attenuation must be addressed. The statutory
language generally allows use of TIF for noise
attenuation.
Councilmember Smith asked about the chain of
title to the property. Attorney Hart stated
that the city can be kept out of the chain to
avoid risk with environmental hazards, and
that the goal is to keep the city out of the
chain.
Treasurer Shaughnessy stated that the revenue
bonds would run from 1995 to 2006.
Councilmember Smith stated that she has
additional questions over expansion plans and
further stated that while landscaping is
important, it is not basic to make the project
work. She stated that she has a hard time
rationalizing the use of TIF for landscaping
requirements. She also asked about Commerce
Drive improvements.
Mr. Casserly stated that he would have no
problem removing landscaping as a category.
He also stated that the lot to the north would
be used for required future parking.
Public Works Director Danielson stated that
Commerce Drive construction would be a
standard city improvement and would be
assessed.
Councilmember Blesener moved approval of the
preliminary plat for ABI with the conditions
that the road right-of-way be revised to
eliminate the bubble effect at the Associated
Bureaus entrance and provide for truck turning
radii around the 90 degree corners, for
approval by the city engineering staff; that
appropriate easements for drainage and
utilities will be secured as additional lots
are developed; and that Commerce Drive be
installed concurrent with development of
Associated Bureaus.
Councilmember Koch seconded the motion.
Councilmember Koch moved adoption of
Resolution No. 92-75, "RESOLUTION APPROVING
Page No. 3443
November 3, 1992
FINAL PLAT FOR MENDOTA HEIGHTS BUSINESS PARK
4TH ADDITION."
Councilmember Cummins seconded the motion.
Ayes: 5
Nays: 0
Council expressed concern over how to document
what is approved with respect to exterior
building materials and colors. Mr. Bishop
reviewed and submitted colored elevations for
documentation.
After discussion, Councilmember Blesener moved
approval of the site plan conditioned upon
staff approval of utility and drainage
easements and staff confirmation that all MAC
requirements and city ordinance requirements
for ground space coverage and open space are
met.
Councilmember Koch seconded the motion.
Ayes: 5
Nays: 0
Mayor Mertensotto asked if there is a fee
involved in the TIF request. He stated that
the applicants are requesting $696,150 in TIF,
$500,000 up front and $196,150 over 12 years
as revenue notes for tax years 1995 to 2006.
Treasurer Shaughnessy responded that no fee
has been established yet but that the city
will receive administrative costs as part of
the procedure.
Administrator Lawell suggested that
landscaping costing $50,000 be deleted from
the TIF request and that other items be
readjusted to reflect the deletion. It was
noted that while landscaping is eligible for
TIF under state law, it may not be
appropriate.
Treasurer Shaughnessy stated that the
developer's agreement does not allocate money
to specific line items.
Councilmember Smith stated that she is
uncomfortable with the concept of using city
financing to help meet code requirements.
Councilmember Blesener stated that one of her
concerns is that the TIF would be paying for a
one -story building and that if it were two
stories only half of the amount would be
needed - the superstructure could be halved.
She felt that half of the superstructure cost
Page No. 3444
November 3, 1992
should be removed because the single story is
the developer's preference.
Councilmember Cummins
compares to other TIF
percentage of project
Shaughnessy responded
total building costs
projects.
asked how the project
projects in terms of
cost. Treasurer
that under 10% of the
is less than other
Mr. Casserly pointed out that the total
project costs include a tremendous amount of
telecommunication costs.
After discussion, Councilmember Cummins moved
to approve TIF in the amount of $696,150,
subject to deletion of landscaping assistance
and reallocation of the financing, and to
direct staff to prepare a developer's
agreement in accordance with state
requirements.
Councilmember Koch seconded the motion.
Ayes: 5
Nays: 0
MENDOTA INTERCHANGE Council acknowledged a report from Public
Works Director Danielson regarding the Mendota
Interchange project and recommending a public
hearing on watermain installation proposed to
be completed in conjunction with Mn /DOT's
Stage II construction. Due to time
constraints, Mn /DOT has combined Stage I and
Stage II into a single, two -year project and
will let the project this winter.
Councilmember Cummins moved adoption of
Resolution No. 92 -76, "RESOLUTION ACCEPTING
ENGINEER'S REPORT AND CALLING FOR HEARING ON
PROPOSED WATERMAIN TO SERVE THE SOUTHEAST
FRONTAGE ROAD (IMPROVEMENT NO. 84, PROJECT NO.
2C)," the hearing to be held on December 15th.
Councilmember Koch seconded the motion.
Ayes: 5
Nays: 0
STORM WATER UTILITY Public Works Director Danielson reviewed a
memo from Engineer Klayton Eckles regarding
the proposed Storm Water Utility ordinance and
hearing requirements.
Mayor Mertensotto stated that Council should
have sample ordinances from other communities
for comparison purposes. Public Works
Director Danielson responded that Council will
Page No. 3445
November 3, 1992
set the policy and that staff will submit
sample ordinances for Council review.
Councilmember Cummins moved to order a public
hearing on adoption of a proposed ordinance to
establish a Storm Water Drainage Utility, the
hearing to be held at 9:00 P.M. on December
1st.
Councilmember Koch seconded the motion.
Ayes: 5
Nays: 0
MAYFIELD HEIGHTS
Council acknowledged and discussed a report
DRAINAGE DIVERSION
from Public Works Director Danielson regarding
the Lexington Avenue drainage problem which
had been identified within the Lower
Mississippi River Storm Water Plan. He
explained that Lexington Avenue forms
boundaries between the Lower Minnesota and
Lower Mississippi drainage districts. Costs
for the proposed project would be shared
equally by Lilydale and Mendota Heights.
Councilmember Cummins moved to delay action on
the proposed project to January 5th.
Councilmember Koch seconded the motion.
Ayes: 5
Nays: 0
Mayor Mertensotto directed staff to submit the
proposed joint powers agreement for the
improvement to the City of Lilydale for its
execution.
CITY HALL FUND Council acknowledged a memo from Treasurer
TRANSFER Shaughnessy regarding the City Hall
construction account and recommending a
transfer of $95,000 from the General Fund
surplus to finance the unpaid construction
expenses.
Councilmember Blesener moved to authorize the
transfer of $95,000 from the General Fund
Unappropriated Surplus to the City Hall Fund.
Councilmember Cummins seconded the motion.
Ayes: 5
Nays: 0
CANVASSING BOARD Councilmember Cummins moved that the Election
Canvassing Board be scheduled for 5:30 P.M. on
Wednesday, November 4th.
Councilmember Smith seconded the motion.
Ayes: 5
Nays: 0
Page No. 3446
November 3, 1992
COUNCIL COMMENTS Councilmember Cummins expressed concern that
there has been no resolution of the legal
services issue, and pointed out that $50,000
has been set aside in the budgeting process.
He endorsed Winthrop and Weinstine, commenting
that their legal services have been excellent.
He asked that the firm submit a specific
proposal for Council's discussion and felt
that Council should conclude the matter before
budget adoption, which is scheduled for
December 1st.
Administrator Lawell informed Council that the
City is not bound to bid professional
services, and that bidding would take
considerable time.
Councilmember Blesener felt that the City
should negotiate with Winthrop and Weinstine
but should also get cost comparisons.
ADJOURN There being no further business to come before
the Council, Councilmember Koch moved that the
meeting be adjourned to the November 4th
Election Canvassing Board meeting.
Councilmember Smith seconded the motion.
Ayes: 5
Nays: 0
TIME OF ADJOURNMENT: 10:05 o'clock P.M.
Kathleen M. Swanson
City Clerk
ATTEST:
Charles E. Mertensotto
Mayor
LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL
November 3, 1992
General Contractors License
Atlas Roofing
Bernard J. Dalsin Company
Diamond Siding
Elite Roofing
B.A. John Construction
R.L. Johnson Co.
United Sprinkler Inc.
Charles Urbach
Excavating License
Bollig & Sons, Inc.
D.C. Excavating
Eagle Contracting
Meyer Contracting Inc.
Wenzel Plumbing & Heating, Inc.
Gas Piping License
Rouse Mechanical
Plaster, Stucco & Drywall License
Quality Drywall
Masonry License
K. Nordwall & Assoc. Inc.