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1992-08-18 Council minutesPage No. 3384 August 18, 1992 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, August 18, 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 Cummins, Koch and Smith. Councilmember Blesener had notified the Council that she would be absent. AGENDA ADOPTION Ayes: 4 Nays: 0 APPROVAL OF MINUTES Ayes: 4 Nays: 0 Ayes: 3 Nays: 0 Abstain: 1 Cummins Councilmember Cummins moved adoption of the revised agenda for the meeting. Councilmember Smith seconded the motion. Councilmember Cummins moved approval of the minutes of the July 7, 1992 regular meeting. Councilmember Smith seconded the motion. Councilmember Smith moved approval of the minutes of the July 21, 1992 regular meeting. Councilmember Koch seconded the motion. Councilmember Cummins moved approval of the minutes of the August 4, 1992 regular meeting. Councilmember Smith seconded the motion. Ayes: 3 Nays: 0 Abstain: 1 Koch CONSENT CALENDAR Councilmember Cummins moved approval of the consent calendar for the meeting along with authorization for execution of any necessary documents contained therein. a. Acknowledgment of the minutes of the August 11th Park and Recreation Commission meeting. b. Adoption of Resolution No. 92 -49, "RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT FOR MENDAKOTA COMMUNITY PARK Page No. 3385 August 18, 1992 (IMPROVEMENT NO. 89, PROJECT NO. 6I,)" awarding final payment to Friedges Landscaping, Inc., in the amount of $4,328.00. c. Authorization for the installation of two hot air hand dryers at the Mendakota Park concession building at a cost of approximately $400 per unit, funded by referendum proceeds. d. Approval of the purchase and installation of a lockbox for ballfield equipment at Mendakota Park, for a cost of approximately $330. e. Approval of the purchase and installation of a 7 foot backstop hood at the Civic Center and Friendly Hills ballfields from Fence Co. for its low quote of $1,137.50 (Friendly Hills) and $1,165.00 (Civic Center) . f. Approval of an amended Gun Club Lake W.M.O. Joint Powers Agreement and authorization for its execution by the Mayor and City Clerk. g. Approval of a request from Visitation School for the reservation of the Roger's Lake tennis courts Monday through Friday, August 17 through October 20, 1992, from 3:15 P.M. until 5:30 P.M. h. Acknowledgment of the Treasurer's monthly report for July. i. Approval of the issuance of a building permit to McDonalds for interior and exterior remodeling at its facility located at 2020 Dodd Road. j. Approval of an Architect's Agreement with Station 19 Architects for the Public Works Garage expansion, based on "not to exceed" fees of $8,500 for the design phase and $13,500 for construction drawing preparation, along with authorization for execution of the agreement by the Mayor. k. Authorization for the purchase of a Ford L8000 dump truck from Boyer Ford through the State Contract at a price of $41,995, and purchase of miscellaneous equipment Page No. 3386 August 18, 1992 from the following bidders: dump body, McQueen Equipment, $8,965; plow McQueen Equipment, $12,900; wings, $9,270, McQueen Equipment; sander, $2,400, McQueen Equipment; lights, $2,000 bidder to be determined, 2 -way radio, $1,000, bidder to be determined; spring support system, $400, bidder to be determined, financing to be provided by equipment certificates. 1. Adoption of Resolution No. 92 -50, 'A RESOLUTION SUPPORTING REGIONAL TRAILS IN DAKOTA COUNTY." m. Authorization to advertise for bids to mill and overlay Marie Avenue from Dodd Road to Delaware Avenue, financing for the project to be provided by MSA maintenance funds. n. Adoption of Resolution No. 92 -51, " "RESOLUTION APPROVING TENTATIVE 1992 LEVY COLLECTIBLE IN 1993," and Resolution No. 91 -52, "RESOLUTION APPROVING FINAL 1992 TAX LEVY FOR SPECIAL TAXING DISTRICT NO. 1 COLLECTIBLE IN 1993." o. Acknowledgment of the minutes of the NDC -4 meetings held on June 3rd and July 1st. p. Adoption of Resolution No. 92 -53, "RESOLUTION APPOINTING 1992 ELECTION JUDGES." q. Approval of the list of contractor licenses dated August 18, 1992 and attached hereto. r. Approval of the list of claims dated August 18, 1992 and totalling $303,351.63. s. Adoption of an agreement entitled "Supplement #2 to the Existing Cooperation Agreement for the Dakota County Community Development Block Program," and authorization for its execution by the Mayor. t. Adoption of Resolution No. 92 -54, "RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $250,000 GENERAL Page No. 3387 August 18, 1992 OBLIGATION EQUIPMENT CERTIFICATES OF 1992.11 Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 1! 01 1.3 11G1[oZe-Ti74140pI�0 �" + PARK CELEBRATION REPORT Administrative Assistant Batchelder reviewed his report on the success of the first annual Celebrate Mendota Heights Park Day. Council expressed its appreciation to Assistant Batchelder and all contributors and volunteers involved in planning and conducting the celebration. 1992 AUDIT Mr. Steve Laible, from Peat Marwick, presented and reviewed the 1991 City Audit for Council and the audience. FIRST AVENUE TRAFFIC Council acknowledged a memo from Public Works Director Danielson in response to a letter from Mrs. Mary Becker regarding traffic speeds on First Avenue. Mrs. Becker, present for the discussion, agreed with the Public Works Director's recommendation that additional 30 mile per hour speed limit signs are not appropriate and supports the installation of "slow - children" signs. Mayor Mertensotto observed that there are signs in St. Paul within a two -block area of schools which limit speeds to 20 miles per hour when children are present. He pointed out that First Avenue is within two blocks of Somerset School and suggested that this possibility be pursued. Attorney Hart responded that he is not aware of any legal justification for such signs but that he has seen special speed zones for school areas. Administrator Lawell stated that the City would have to make a special request to Mn /DOT for a school zone speed limit. Councilmember Smith asked if the "slow - children" signs would be more appropriate and Page No. 3388 August 18, 1992 felt that they would serve as a reasonable reminder to drivers. Mrs. Becker responded that she would appreciate whatever action the city will take. Staff was directed to contact Mn /DOT with respect to establishing a school zone speed limit. PLAYGROUND EQUIPMENT, Council acknowledged a memo from Administra- MENDOTA SCHOOL tive Assistant Batchelder regarding a request from the Mendota School PTA requesting funding to install play equipment at the Mendota Elementary School. The PTA has raised approximately $15,000 for the purchase of the equipment, and under.a proposed formula, the PTA would purchase the equipment, the city would provide installation costs, not to exceed $6,924, and the school district would provide funding, not to exceed $7,789, for upgrades and improvements necessary to meet ADA standards. Mayor Mertensotto stated that the city has received a letter from Dr. Bruce Anderson stating that he will recommend to the School Board that $7,789 be committed for ADA improvements. He pointed out that the Parks and Recreation Commission has recommended approval of the City - provided installation of equipment but expressed concern over setting a precedent - a similar request could come from Somerset School in the future. Mrs. Carol Kiemele, representing the Mendota School PTA, stated that a precedent was set when the city worked with the high school. She pointed out that the PTA would be paying the majority of the expenses through PTA funding. Mayor Mertensotto agreed that a precedent had been set when the Joint Powers Agreement was approved for Sibley. He stated that there should be a commitment to a joint powers agreement between the city and school district that provides that the facilities will be available to the community when they are not being used during school hours. Administrator Lawell responded that neighborhood children do use the facilities outside of school hours and that any Page No. 3389 August 18, 1992 j investment of city funds should be accompanied by an agreement that the equipment will always be available for Mendota Heights residents during off - school hours. With respect to Somerset School, he stated that improvements have been made to its equipment recently and the school district will likely be faced with ADA costs. Mayor Mertensotto stated that the PTA must dedicate the equipment to the school district, and the district's liability insurer would have to cover the liability. Councilmember Smith moved to approve an expenditure of Special Park Funds not to exceed $6,924 for the installation of play equipment at Mendota Elementary School and to authorize the Mayor to execute a Letter of Agreement with Independent School District 197 to stipulate that the school district will fund all ADA upgrades, at a cost not to exceed $7,789, and that the district will make the play equipment available to all city residents during non - school hours. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 ASSOCIATED BUREAUS Council acknowledged a TAX INCREMENT REQUEST Administrator relative Associated Bureaus for for a 65,000 square foi proposed to be located Commerce Drive. memo from the City to a request from tax increment financing A office facility on a 13 acre site on Mr. Jack Hurley., CEO of Associated Bureaus (ABI), gave Council and the audience a background on the company, explaining that the firm has outgrown its current facility and would like to construct a 65,000 square foot facility in the Mendota Heights Business Park. He explained that ABI will purchase a 13+ acre site and has an option on 6 additional acres for future expansion. Mr. George Burkhards, from United Property, informed Council that after expansion, one - ninth of the 20 acre site will be building. Development in the former MAC site will never achieve the building coverage allowed by the MAC. Page No. 3390 August 18, 1992 Councilmember Cummins stated that from the perspective of Council on generation of tax revenue, small building on large sites, it is possible that not enough tax potential is gained for the site. Mr. Burkhards responded that a typical building on the site would be office/warehouse, but this structure will ba all office, which is much more costly and would generate a better tax base. Architect Wayne Bishop, reviewed the proposed site plan, explaining that a 65,000 square foot, single story building, finished on all four sides with a brick and architectural split face block for accent, is proposed. He explained the configuration and amenities of the proposed structure and stated that there will be an extraordinary amount of landscaping and an upscale arrival point. The total building cost is estimated at $3.3 million. Parking spaces for 610 cars is planned to be constructed all at one time to provide for anticipated needs in five years. The interior space will be completely finished, one wing will be classic divided office space, and the other will be a large open office area. He then described the guest arrival area. Administrator Lawell informed Council that the proposal is unique in terms of timing - the developer is not here this evening to review exact details or plans, but is responding to a staff request to bring the matter before Council prior to planning and engineering consideration because of the request for tax increment assistance. Mr. Jim Casserley, financial consultant for ABI, responded to questions on valuation of the facility, stating that although the construction cost will possibly be $60 to $65 per square foot, its market value will likely be closer to $49 per square foot. He further stated that he suspects that taxes will be greater than were estimated in the spreadsheet (Exhibit A) which he prepared and was submitted to Council with the agenda materials. Councilmember Smith stated that the original tax capacity of the site, shown on the spreadsheet, is zero but in past projects the tax capacity at the time of the project has been used. Page No. 3391 August 18, 1992 Treasurer Shaughnessy responded that the tax base on the property when it was placed n the TIF was zero because it was owned by MAC. When the land was purchased by United properties it consisted of 100 parcels, and all were placed back on the tax rolls at the time, but without a final plat the total value of the property cannot be divided to determine the value of the subject parcel. He stated that the County Assessor will come up with a value for the parcel some time in 1993. Councilmember Smith stated that the information will have to be made available to Council when the property is platted. Mr. Casserley responded that he will work with Treasurer Shaughnessy and the Council and will put into the spread sheet the amount that is then arrived at. Mayor Mertensotto stated that this is probably the largest parcels United Properties is developing in the park and that Council is concerned that the city will get something substantial. With respect to proposed items to be covered by TIF, Councilmember Smith stated that she always uses the but -for rule and that one of the things she has a question over is the landscaping and whether it should be part of the funding. Mr. Casserly responded that different communities allow different things - some assist in unusual costs but do not provide assistance for items required by code. He further stated that the extent of TIF assistance is a policy decision. Mayor Mertensotto expressed concern about the parking area and run -off, and the request for $10,000 in TIF for ponds and $50,000 for landscaping. He pointed out that Council wants to be sure that there will be no run -off problems. He stated that he hopes that the developer will not come back for additional TIF. Mr. Casserly responded that he hopes there will be some latitude but that the requested $696,150 in TIF should be the maximum requested for the project. Page No. 3392 August 18, 1992 Mr. Hurley stated that if his professionals have done their jobs, no additional funds will be requested. He informed Council that he hopes to begin construction in March. Mayor Mertensotto responded that if the developers stick with the project as presented this evening, Council will likely look on it favorably. SOFTBALL CLASSIC Council acknowledged a memo from the Administrative Assistant regarding a request from Matt Blair Celebrity Promotions (MBSP) to conduct the 1993 Twin Cities Celebrity Softball Classic at Mendakota Park. Ms. Amy Rothbauer, from Matt Blair Celebrity Promotions, reviewed the request and responded to Council questions. She explained that the tournament would likely draw a crowd of about 2,000 people, that parking would be handled by the parking lot, the overflow parking area, on- street parking and shuttle buses to parking at the Mendota Plaza. Portable satellites would be provided, and the round -robin tournament would take place from 8:00 a.m. to about 6:00 p.m. Councilmember Smith stated that the park has not yet experienced such a large crowd, so it is not known whether the size can be accommodated. She also stated that not much thought has yet been given to use of the facilities by outside groups. She asked staff whether there are any other park activities that the event might impact, such as regular tournaments which might be scheduled on the requested date. Administrator Lawell responded that the event should not conflict with any scheduled community events, since softball is scheduled during the week and the regular tournament would occur in mid - summer. He felt that perhaps the date would work in 1993 but that it might be a problem in future years. Mayor Mertensotto pointed out that with a crowd of 2,000, traffic and crowd control could be a burden on city facilities and public safety. Ms. Rothbauer responded that MBSP would work with the city to bring any extra police Page No. 3393 August 18, 1992 protection, and that in the last event at the City of Shakopee, the police service was volunteered. The city provided constant drive-bys, MBSP provided security officers and worked with a local hospital to provide a medical tent. Councilmember Smith stated that such a large activity could cause damage to the facility in some way, and the city would have to deal with down time,,which would impact the community. She asked if staff had made inquiries of other communities where the event has been held to see what experience they had. Administrative Assistant Batchelder responded that the event was held at the University of Minnesota in its first year and in Shakopee the second year. He stated that he has not contacted Shakopee. Councilmember Cummins asked if the Police and Fire Departments had been asked to comment on the request. Administrative Assistant Batchelder responded that Chief Delmont stated that he had no concerns about the event and pointed out that basketball tournaments at Sibley High School generally draw about 2,000 people and there have been no traffic control problems. It was the consensus to direct staff to contact the City of Shakopee to see if it had any adverse impact and to refer the request to the Police and Fire Departments for review and recommendation. FEASIBILITY REPORT Council acknowledged receipt of a feasibility ARNDT PLAT report for proposed improvements to serve the Arndt plat located between London Road and Butler Avenue. Mayor Mertensotto stated that he has spoken to the Arndt family and that they feel the estimated $15,000 assessment per lot is excessive for such a small plat. They felt that the original proposal to extend London Road through the plat would be more cost effective. Public Works Director Danielson responded that the reason the assessment estimate is higher than normal is because the owners have asked that grading be done and assessed as part of Page No. 3394 August 18, 1992 the project. He stated that assessments for two other projects in which the city contractor did the grading, the Patrick subdivision and the Alice Lane subdivision, were $14,000 to $15,000 per lot, which compares favorably to the estimated cost for the Arndt assessments. With respect to a question from Mayor Mertensotto on trails, Engineer Eckles stated that there were two options for the trail connection, from Butler Avenue through the easement to London Road, and also from Butler to Kirchner through a vacated section. He stated that it may be possible to delete the section of trail on existing Kirchner Avenue since it is a low volume street. The savings would be approximately $2,500. He stated that the trail objective is to link Kirchner to Butler and London to Butler. He stated that $15,000 per lot is high for assessments, however, the actual cost of the normal construction is only about $10,000 per lot - about $4,500 per lot is added because of the grading, which is generally done by a plat developer. A typical assessment for new lots is between $10,000 and $13,000 per lot. He informed Council that because little is known about the soil conditions it is difficult to estimate costs and he has been very cautious - he hopes the project can be done for less than is estimated. Councilmember Smith asked if staff is comfortable with having the lot grading done by the city contractor. Mr. Eckles responded that city contractors have done street grading in the past and some lot grading, but lot grading involves things the contractor does not normally have to contend with, like erosion control and being sure drainage does not go outside the plat and building pads. Mayor Mertensotto asked what responsibility the developer's surveyor has for the grading plan. Mr. Eckles responded that the surveyor must provide a plan showing that the site is graded properly and that it satisfies the city's grading requirements. City staff will have to work out details on what is acceptable in grading and what the city will be responsible for - as an example, black dirt in a building pad would normally be taken care of at the time of grading, etc. Page No. 3395 August 18, 1992 Councilmember Smith asked why the developers requested that grading be assessed and why the city was asked to do the grading. Engineer Eckles responded that initially everyone thought there would not be much grading involved in the lots, that they would just be touched up, but once the developers' engineer started looking at the grades on site he found that the density of lots requires quite a bit of grading. Mayor Mertensotto stated that putting in a cul-de-sac to accommodate the neighbors is being borne by the developers and that it has added to the project costs. Councilmember Cummins pointed out that the issue is whether the city gets involved in the grading for the development. He stated that the city never done the site grading for an entire development and would be incurring some liability. He felt that the developer should perform the grading. Councilmember Smith stated that a cul-de-sac will likely create greater lot values, and that lots on cul-de-sacs sell at a premium. She agreed that the city should not do the grading and include the cost in the assessments. Engineer Eckles stated that utility-wise it would not be any cheaper to build a through street. He further stated that the city must be sure that each lot is graded properly and the best way to do that is to grade the site all at once. He informed Council that the city could do the street grading as part of the city project but that it is best for all parties when an entire site is graded at once, including the streets. Mayor Mertensotto stated that the city should also look at the through street option. Engineer Eckles stated that the developer originally proposed a through street and that was the original concept from the city planner, but after neighborhood input and Planning Commission consideration, the cul-de- sac was the option chosen. Page No. 3396 August 18, 1992 Mayor Mertensotto stated that it did not appear to increase the costs much but should go back to look at what the costs would be for a through street, which would eliminate the pedway between Lots 6 and 7. Administrator Lawell asked what Council's intent would be once costs for a through street are determined, whether the neighborhood would be invited back. Mayor Mertensotto responded that the neighbors would have to be involved. Councilmember Cummins stated that a hearing has been held and the cul -de -sac option was recommended as a result of the hearing. He did not know why Council should now go back to the through- street concept. He stated that he did not recall an estimate for assessments that has not been less than $1,500 over what was actually assessed, and that the assessments have often been $3,000 less than the estimate. If history is a guide, the assessments for the project would come in closer to $12,000 than $15,000. Engineer Eckles responded that he always estimates conservatively, and in this case (there are more unknowns in soil conditions and grading), he has been more cautious. He explained that two to three weeks will be needed to bid the project and that it could be October before the project starts, which may only allow two weeks of construction this year. Mayor Mertensotto asked if the project could be started in the spring. Public Works Director Danielson responded that spring would be a typical time to start a project but it is preferable to install utilities in the fall if possible to allow for settling before street construction. Engineer Eckles informed Council that if the developer does the grading, the assessment cost would be at about $10,000 per lot, which is in the same range as past projects. Councilmember Cummins moved to table the matter to September 1st and to direct staff to Page No. 3397 August 18, 1992 provide information on the through street option. Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 IVY FALLS CREEK Council acknowledged a report from Engineer FUNDING OPTIONS Eckles regarding funding options for Ivy Falls Creek drainage improvements. Engineer Eckles summarized the report and answered Council questions. Councilmember Cummins suggested that the TIF option be dropped, stating that he did not think it is appropriate and felt that it would be a dishonest use of TIF. Councilmember Smith agreed, stating that Council should not use TIF to reduce assessments. She further stated that she had suggested the use of TIF to build a holding pond on city property, which would benefit everyone and that by suggesting TIF she had no intention of directly reducing assessments. Councilmember Cummins stated that the project would generate no increment and that building a holding pond would bring no benefit to the tax increment district, because the project would be a reconstruction project in a residential area. Mayor Mertensotto stated that if the TIF goes to benefit all taxpayers in the city, its use would do no harm, and in this case the funding clearly would benefit all tax payers. Councilmember Smith stated that there is a storm run-off problem and if a holding pond is created on city property through TIF, reducing the total cost of the project, everyone in the district would benefit, and it would be a rehabilitation project. She further stated that there would be erosion on the Brassard property any way, but not at the same rate as taking all the runoff from half of the city. Engineer Eckles responded that staff is concerned about setting a precedent for use of TIF in the resolution of similar problems in the future. Councilmember Smith pointed out that the city is doing the same type of project in the tax increment district and not charging adjacent property owners, and stated Page No. 3398 August 18, 1992 that she did not view this project as being much different. Councilmember Cummins stated that he feels the project is much different. He did not think that the Ivy Falls Creek project is appropriate for tax increment funding and that he is inclined to prefer that Council deal with the matter in a much more straight forward manner. He stated that by approving the project, Council would be incurring city expenses for a necessary project and tax payers must pay for it. He felt that a storm utility would be a better option, a straight forward and honest method of dealing with the issue. Councilmember Koch asked if the storm utility can be stopped in the future or if it will always remain in place if it is instituted. Engineer Eckles responded that Council would set the rates and the rates can be changed. He stated that it is appropriate to start the utility with a higher rate to cover future costs but that it should benefit the entire city ultimately even though initially it would benefit the creek. Councilmember Cummins stated that ultimately the entire city will need storm sewer work and the entire city will eventually benefit. Mayor Mertensotto stated that the utility is another means of generating funds, and that storm utilities are used by other communities. The Ivy Falls Creek is the first project begging to be done, and the question is how storm sewer repairs will be handled in the future. He pointed out that, like the street rehabilitation policy, Council must plan for the future. Councilmember Koch stated that it appears that there is the possibility of having the storm water utility that would fund 90% of the Ivy Falls Creek project. She asked if the utility would be in place for 20 years if it is instituted after public hearing. Engineer Eckles responded that it would fund 90%, it would be in place for 20 years, and that part of the issue this evening is whether the 80/20% split is appropriate. If a greater Page No. 3399 August 18, 1992 city participation is desired, staff must calculate how to make a formula work. The potential financing methods to fund a 20 year bond for the project are a sanitary sewer surcharge, TIF or a storm water utility. Mayor Mertensotto pointed out that storm utility rates would have to increase each time a storm sewer project is initiated. Treasurer Shaughnessy stated that the other projects identified extend out about 10 years, at a cost of about $600,000 to $700,000, so that staff has projected total storm sewer utility income to the point where it would cover those projects over a 30 year period. Some of the projects are of the type where there would be no assessments possible. Councilmember Smith stated that Council has been told that under certain scenarios 20% of the Ivy Creek project must be assessed. Treasurer Shaughnessy responded that under the improvement bond law, at least 20% of the costs must be assessed. Using either a storm sewer utility or sanitary sewer surcharge, the city can issue revenue bonds and would not have to assess 20%, and as long as sufficient revenue is designated to meet bond payments, a referendum is not required. Councilmember Smith responded that she feels that some direct assessment is appropriate but that the proposed assessments were much to high. With respect to storm utility rates, Engineer Eckles stated that the proposed rate for industrial properties is below the rates charged by other cities, but if Council feels it is too high, it could consider allowing property owners to apply for adjustments. Staff could then look at whether a property has holding ponds on site and, if the property run off does not impact the city, a reduced rate may be possible. Councilmember Smith stated that some sites have holding ponds that handle run-off from other properties as well, and also in some cases the city is paying for holding ponds, so some properties would have a double benefit. Page No. 3400 August 18, 1992 Engineer Eckles agreed, stating that review of adjustment requests would be very complicated. Councilmember Smith felt that, based on the discussion, the city portion of funding for the project should be somewhere between 85 and 90%. She supported the idea of creating a storm utility. Mayor Mertensotto felt that staff should contact communities which use a storm utility, in addition to those already contacted. Councilmember Smith asked what cost the city would incur in operating and setting up a storm water utility. Engineer Eckles responded that the biggest cost would be in the initial setup but the utility charges would be collected with sewer bills and afterwards the utility should take only a minor amount of staff time, although engineering would have to be involved in adjustment requests. Mayor Mertensotto suggested that staff put together a package consisting of what projects need to be done, funding options, cost estimates for Ivy Falls Creek and a recommendation on whether one of the reaches should be dropped from the project. He felt that all of the information should be put into a single report so that Council can look at the who picture again. Treasurer Shaughnessy stated that the original financing program was set up to run 30 years and it included anticipated projects which need to be done over the next 10 years. One of the factors in the original calculations was a small tax levy each year so that enough of a reserve could be built to handle the future projects. Administrator Lawell stated that a decision must be made on whether to fund a 20 year Ivy Falls Creek program or include the other anticipated projects for a 30 year program. Mayor Mertensotto responded that initial cost will be for Ivy Falls Creek and will be paid over a 20 year period and Council needs to know how much money will be needed each year to fund Ivy Falls Creek and the other Page No. 3401 August 18, 1992 anticipated projects, using he options of a sanitary sewer surcharge and a storm utility. He further stated, with respect to Ivy Falls, that Council must have a program to show how much is assessable. Council must have the total picture, not just Ivy Falls Creek, so that it will know the impact. He asked that staff put the information into a composite and make a comparison between a 90/10% and 80/20% distribution of the costs. It was the consensus that Council conduct a workshop in October for discussion of funding options. AIR NOISE UPDATE Council acknowledged an air noise update memo from Administrator Lawell, informing Council that MAC officials, at the August 6th MAC Corridor Task Force meeting, rejected the city's proposal for a 60 degree fanned corridor and indicated their intent to endorse the 15 degree procedure and recommend its implementation to the FAA. Mayor Mertensotto stated that he suspects that the MAC will send its staff recommendation to MASAC for review and that MAC will likely adopt some of the procedures that were used during the 60 day test, such as direct take- off down the center of the corridor in the early morning hours. He seriously doubted that the City will get the fanned corridor test. Administrator Lawell stated that he believes MAC will direct a change in procedure policy getting planes in the middle of the corridor during non-peak times but that they will not recommend a fanned corridor during peak operations, but will rather affect the 15 degree cone, which has not been the city's goal. Mayor Mertensotto stated that the air noise data being collected by MAC is quantitative, objective data. MAC is working on the ANOMS system program and once running, it should work in the city's favor, measuring noise events over a 20 second period. He stated that Council must keep after MAC to get the system approved so that the data can be released. Page No. 3402 August 18, 1992 Administrator Lawell stated that in terms of the proposal to go to a 15 degree corridor, that is not what the city has asked for. He felt the city should go on record that it does not agree with the proposal and should draft a resolution to present at the MAC meeting of September 21st. He further stated that staff will prepare a formal response for Council review after the MAC staff recommendation is received. He pointed out that the City of Inver Grove Heights shares the aircraft noise concerns and would like to join with Mendota Heights. It was the consensus to direct the City Administrator to draft a letter to MASAC stating the Council's objection to a 15 degree cone and a resolution for Council adoption on September 1st. KIRCHNER PROPERTY Council acknowledged a memo from Treasurer Shaughnessy regarding the Kirchner property adjacent to the old fire station site and recommending that negotiations for purchase of the site by the city be resumed. It was the consensus of Council to direct staff to prepare and submit a purchase offer to Mr. Kirchner based on the appraisal previously done by the City, the offer to be contingent on the condition that the property is brought up to PCA and EPA standards. ADJOURN There being no further business to come before the Council, Councilmember Koch moved that the meeting be adjourned. Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 11:26 o'clock P.M. thleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor August 18, 1992 Excavation Stoney River Development Ron -son Contracting, Inc. General Contractors License Tom's Construction