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
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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