Loading...
1991-04-16 Council minutesPage No. 2978 April 16, 1991 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, April 16, 1991 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. Acting Mayor Blesener called the meeting to order at 7:30 o'clock P.M. The following members were present: Acting Mayor Blesener, Councilmembers Koch and Smith. Mayor Mertensotto had notified the Council that he would be absent. AGENDA ADOPTION Councilmember Koch moved adoption of the revised agenda for the meeting. Councilmember Smith seconded the motion. Ayes: 3 Nays: 0 APPROVAL OF MINUTES Councilmember Smith moved approval of the minutes of the April 2nd regular meeting. Councilmember Koch seconded the motion. Ayes: 3 Nays: 0 Councilmember Smith moved approval of the minutes of the April 9th annual Board of Review meeting. Councilmember Koch seconded the motion. Ayes: 3 Nays: 0 CONSENT CALENDAR Councilmember Smith 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 April 9th Parks and Recreation Commission meeting. b. Acknowledgment of the Treasurer's monthly report for March. C. Adoption of Resolution No. 91 -15 "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA (THE "ISSUER ") AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE ISSUER'S MULTIFAMILY HOUSING REVENUE REFUNDING BONDS (LEXINGTON Page No. 2979 April 16, 1991 HEIGHTS APARTMENTS PROJECT) SERIES 1991A (THE "BONDS "), WHICH BONDS AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM REVENUES PLEDGED THERETO; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE, A LOAN AGREEMENT, A REMARKETING AGREEMENT, A REGULATORY AGREEMENT AND A BOND PURCHASE AGREEMENT; APPROVING THE USE OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT; APPROVING THE FORM OF AN AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF SAID BONDS," in an aggregate principal amount not to exceed $9,130,000, and Resolution No. 91 -16, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA (THE "ISSUER ") AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE ISSUER'S MULTIFAMILY HOUSING REVENUE REFUNDING BONDS (LEXINGTON HEIGHTS APARTMENTS PROJECT) SERIES 1991B (THE "BONDS "), WHICH BONDS AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM REVENUES PLEDGED THERETO; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE, A LOAN AGREEMENT, A REMARKETING AGREEMENT, A REGULATORY AGREEMENT AND A BOND PURCHASE AGREEMENT; APPROVING THE USE OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT; APPROVING THE FORM OF AN AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF SAID BONDS," in an aggregate principal amount not to exceed $1,870,000. d. Authorization of the issuance of a purchase order for an asphalt hot box for the Road and Bridge Department to LaHass for its bid of $3,895.00. e. Adoption of Resolution No. 91 -17, "RESOLUTION AUTHORIZING THE CITY OF MENDOTA HEIGHTS TO ENTER INTO AN AGREEMENT WITH SOO LINE RAILROAD," giving the City the perpetual right to maintain its utilities which will cross under the Soo Line Railroad tracks, in connection with the Furlong area project, for a total payment of $3,900. Page No. 2980 April 16, 1991 f. Authorization for the purchase of a 180 megabyte hard drive, a 380 megabyte hard drive and a tape backup unit for the Administration /Utility /Engineering computer system for a total purchase price not to exceed $3,200. g. Approval of the list of contractor licenses dated April 16, 1991 and attached hereto. h. Approval of the list of claims dated April 16, 1991 and totalling $176,152.22. i. Acknowledgment of an offer from the Mendota Heights Garden Club to donate a Red Splendor Crab Apple Tree for planting at the City Hall site in honor of Arbor Day. Councilmember Koch seconded the motion. Ayes: 3 Nays: 0 MENDAKOTA PARK Council acknowledged a memo with respect to BUILDINGS - BID AWARD bids received for materials and labor for construction of the Mendakota Park comfort station, picnic shelter /band pavilion, and information kiosk. Park Project Manager Guy Kullander reviewed the memo and background on development of the buildings. He informed the audience that the City will be the general contractor for the project and that 27 bids were received for the 11 components of the project. He recommended that Council authorize contracts with the eight low bidders identified in the memo and that a contract for shingle roofing be awarded to Zimmerman Exteriors fpr its low bid of $8,725. He informed Council that the Zimmerman bid will be reduced, possibly by as much as $1,500, because the quote was for cedar shingles rather than cedar shakes, which is the roofing used on City Hall. Councilmember Cummins arrived at 7:48 P.M. Councilmember Smith moved to award contracts to the following firms for their low bids: F.M. Fleischhacker, $28,735, concrete, block and flatwork; Interstate Lumber, $21,651, lumber and materials; B.T.L. Construction, $11,900, carpentry labor; Approved Electric Page No. 2981 April 16, 1991 Co., $7,950, electrical; L&M Painting, $2,345, painting and staining; Pace Roofing, $3,850, elastic sheet roofing; Stueve Tile, $1,650, quarry tile; J.T.S. Services, $1,197, stainless steel; BOE Ornamental Iron, $5,817, miscellaneous metal and metal railings; and Zimmerman Exteriors, a maximum of $8,725 for shingle roofing. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 Councilmember Koch moved to authorize Parks Project Manager Guy Kullander to authorize a contract with the plumbing firm which submits the low bid for plumbing, for an amount not to exceed $11,000. Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 FURLONG ASSESSMENTS Council acknowledged a memo and proposed assessment roll for proposed Furlong area utility improvements. Engineer Klayton Eckles reviewed the report, informing Council that the assessment hearing has been scheduled for May 7th. He explained that the estimated project cost is $921,500, which includes a fairly large contingency, about 200 less than the original project estimate. He discussed use of tax increment financing, stating that Council had authorized the use of up to $492,000 of TIF for the project, and the proposed assessment rates. Acting Mayor Blesener asked about the amount of TIF participation. She stated that at the time Council authorized the level of TIF, the estimated project cost was $1.1 million. She further stated that she did not know how the TIF contribution was established but if it related to the estimated cost, she felt that it should be reduced by the same percentage as the bid difference. Engineer Eckles explained that there was a huge difference between estimated storm sewer costs and the bid for that portion of the contract but that the TIF was originally proposed to pick up almost none of the storm sewer cost: there was a large savings to the property owners but not much to the TIF. Determining the TIF originally was a complicated process in which staff looked at the total project and extraordinary items like Page No. 2982 April 16, 1991 jacking under the highway, depth of pipe, etc. The TIF is proposed to support those items. Another problem is assessing industrial raw land versus residential property. The residential rate was applied against industrial properties, resulting in a very high assessment for those properties, and then TIF was applied to adjust the industrial assessments. TIF is also suggested to be used to cover the assessments against the City- owned lots. Councilmember Cummins asked whether the $10,300 per lot average residential assessment reflected in the feasibility study was communicated to the residents. Mr. Eckles responded that $10,300 was indicated as the maximum residential assessment. Councilmember Cummins asked whether Engineer Eckles is able to identify the amount of subsidy each of the residential lots is receiving from the TIF. He stated that he opposed the use of TIF to subsidize sewer and water in residential neighborhoods where there is little possibility it will ever be recaptured. If there are substantial savings to be realized, he felt the benefit of the savings should go to the TIF. He stated that he would have trouble voting for the assessment roll because the residents would be receiving unfair benefit. Engineer Eckles responded that one of the issues discussed in the feasibility report was that if the neighborhood were bought out by MAC, how much of the project would be wasted. He explained that the streets and utility stubs that go up each of the streets are the only items that would be of no use in the redevelopment of the area - of the 28 manholes, only seven or eight are in the street areas. The majority of the project will still be able to serve the site if it redevelops. He informed Council that it would be very difficult to come up with just one number on how much subsidy each homeowner would be getting under the proposed assessment roll. He pointed out that the TIF contribution is subsidizing industrial property, cemetery property, and the Furlong area for future development. Page No. 2983 April 16, 1991 Councilmember Cummins asked Mr. Eckles if he could run some numbers that would indicate what the actual costs should be - which would possibly bring the residential assessments closer to the $10,300 estimate and reduce the TIF contribution. He stated that he would like to at least look at saving the TIF 20%. He asked what Engineer Eckles' hypothetical' was in preparing the roll. Mr. Eckles responded that the hypothetical is that the utilities are not being installed only to the service of the residences in the Furlong area but that they would serve the area if it were to redevelop and would be also be in place to serve the motel property, driving range property, the greenhouse, the industrial sites, etc. Acting Mayor Blesener agreed with Councilmember Cummins that the City would be spending considerable TIF money, much of which will not be recoverable cost. She stated that after much public discussion, the Furlong neighborhood agreed that $10,000 would be an acceptable assessment. She noted that the hearing will be held before bid award and asked how long the bid will be good. Mr. Eckles responded that the bids are good for sixty days from the bid opening date and that the contractor would like to begin working on May 8th. Councilmember Cummins stated that he would not be comfortable accepting the roll as proposed for the purpose of public notice, but would be if the Furlong Addition assessments were closer to the originally estimated $10,300. He felt that the savings in the bidding process should accrue to TIF and asked staff to recalculate the roll. Acting Mayor Blesener agreed and pointed out that the recalculation might also be increasing the level of assessment for industrial as well as residential properties. Engineer Eckles stated that the way he would approach recalculation would be to look at the extraordinary items again to determine whether all of those items should be considered extraordinary. Page No. 2984 April 16, 1991 Administrator Lawell stated that he would not suggest "picking" numbers tonight for the purposes of mailed notices but rather that the hearing be delayed to May 21st. Acting Mayor Blesener suggested that Council meet in special session on May 24th before the scheduled team-building workshop. Councilmember Cummins moved to lay the matter over to a special meeting at 5:30 P.M. on April 24th and direct staff to recalculate the proposed assessments with the position that the residential lot assessments should on average exceed $10,000. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 LENNOX INDUSTRIES TAX Council acknowledged a memo from Treasurer INCREMENT FINANCING Shaughnessy regarding a request from United Properties for tax increment financing assistance in connection with construction of a Lennox Industries office warehouse building on the MAC property. Mr. Dale Glowa, from United Properties, briefly described the Lennox project, which is development of a 30,000 square foot office/warehouse facility at Pilot Knob Road and Lemay. He requested $425,000 in tax increment financing for the project, part of which would be a pay-as-you-go benefit. He explained the financing request described in his letter of April 18th, and informed Council that United Properties will own the building but Lennox will hold a ten-year lease. Treasurer Shaughnessy explained the "pay-as- you-go" concept, stating that the City would issue a revenue note to United Properties that would be paid out of the annual taxes on the project. United Properties would use the money to write down the lease expense, and the City has no obligation to pay on the note unless the tax is actually received. After discussion, Councilmember Cummins moved to authorize a Tax Increment Financing expenditure of $425,000 for the Lennox project as requested by United properties. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 Page No. 2985 April 16, 1991 FIRE DEPARTMENT ANNUAL Council acknowledged the 1990 Fire Department REPORT Annual Report. Fire Chief Maczko briefly reviewed the report and responded to Council questions. T.H. 13 UTILITIES Council acknowledged a feasibility study for proposed Highway 13/Pilot Knob Road utility improvements, prepared in response to a request from St. Peter's Church. Ayes: 4 Nays: 0 Mr. Jim Losleben, representing St. Peter's, stated that the Church is trying to coordinate with Mn/DOT in view of all of the imminent highway construction. Public Works Director Danielson Council that all of the work on of-way would be done through a agreement. He informed Council highway project is scheduled to spring. informed Mn/DOT right- --ooperative that the start next Acting Mayor Blesener pointed out that stage one construction involves $327,000 in tax increment funding. She asked how much additional TIF will be needed for stage 2. Mr. Danielson responded that an additional $150,000 is estimated for stage 2 costs but that some of the costs will be assessable. Councilmember Cummins asked whether the proposed $28,000 in TIF shown for the City of Mendota relates to connecting the sewer line into the Mendota line. Mr. Danielson responded that typically when one City connects to another's utilities there is some type of compensation. It is proposed that the contribution in this case be in the form of extending water to Mendota. Councilmember Cummins moved to authorize $327,000 in TIF funding for the Highway 13/Pilot Knob Road Utility project (Phase I) as proposed in the feasibility study. Councilmember Smith seconded the motion. Mr. Losleben stated that once the utilities are brought to the St. Peter's property line there will be considerable work needing to be done on the St. Peter's property. He asked whether the Church can sublet City Engineering to coordinate and plan what must be done on the church property, and if the costs for i i' Page No. 2986 April 16, 1991 engineering and construction on the church property can be assessed. Councilmember Cummins suggested that the work could be bid as one project with two separate contracts which would possibly result in some savings. Staff was directed to research the feasibility of a cooperative arrangement with St. Peter's Councilmember Cummins moved that staff work with the City of Mendota to negotiate a cooperative agreement to connect to the Mendota water system. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 Councilmember Cummins moved adoption of Resolution No. 91 -18, "RESOLUTION ACCEPTING FEASIBILITY REPORT AND CALLING FOR HEARING ON PROPOSED SANITARY SEWER, WATER, STORM SEWER IMPROVEMENTS TO SERVE ST. PETER'S CHURCH AND ADJACENT AREAS (Improvement no, 84, Project No. 2 -A)," the hearing to be held on May 21st. Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 CLOSED SESSION Councilmember Smith moved that a closed session be conducted at 5:30 P.M. on April 17th, for discussion of Centex litigation. Councilmember Koch seconded the motion. Ayes: 4 Nays: 0 Councilmember Cummins moved that when at its adjournment, the April 17th closed session be adjourned to a special meeting at 5:30 P.M. on April 24th for discussion of the proposed Furlong area assessments. Councilmember Smith seconded the motion. Ayes: 4 Nays: 0 COUNCIL COMMENTS Acting Mayor Blesener stated that she has received calls from residents requesting Council adoption of an ordinance to control cats. The matter was referred to staff for research. Acting Mayor Blesener stated that she understood that the playing surfaces of ballfields in existing parks would be improved but that the outfield in Valley Park needs Page No. 2987 April 16, 1991 upgrading (sunken outfield), and asked that staff look into the matter. She felt that improvements should not be limited to infield improvements. ADJOURN There being no further business to come before the Council, Councilmember Cummins moved that the meeting be adjourned to the April 17th closed session. Councilmember Koch seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:27 o'clock P.M. . - Kathleen M. Swanson City Clerk ATTEST: LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL April 16, 1991 Masonry Licenses Arrow Construction Carlson Masonry, Inc. Fleischhacker, M.F.-Inc. Grabak Construction London Brick Stockness Construction, Inc. Excavating Licenses A & B Construction Olsen's Sewer Service, Inc. Plymouth Plumbing, Inc. St. Paul Utilities & Exc., Inc. Schmidt, T.A.-& Sons Exc. Specialized Turf, Inc. Gas Piping Licenses Flare Htg. & A/C, Inc. MN Plmb. & Htg., Inc. Royalton Htg. & Cooling General Licenses College City Construction, Inc. Dakota Fence of MN, Inc. Greenwoldt Construction, Inc. Hables Construction Co. (The) Homemaster Builders, Inc. Kranz, D.U.-Co., Inc. Meaney, F.P.-Construction Midwest Fence & Mfg. Co., Inc. Sonnek Construction Co., Inc. Heating Licenses Boehm Heating Flare Htg. & A/C, Inc. MN Plmb. & Htg., Inc. Royalton Htg. & Cooling Co.