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1990-02-20 Council minutesPage No. 2732 February 20, 1990 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, February 20, 1990 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 Anderson, Blesener, and Cummins. Councilmember Hartmann had notified the Council that he would be absent. AGENDA ADOPTION Councilmember Anderson moved adoption of the revised agenda for the meeting. Councilmember Cummins seconded the motion. Ayes: 4 Nays: 0 APPROVAL OF MINUTES Councilmember Cummins moved approval of the minutes of the February 6th regular meeting with corrections. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 CONSENT CALENDAR Councilmember Anderson 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 February 13th Park and Recreation Commission meeting. b. Acknowledgment of the Treasurer's monthly report for January. C. Acknowledgment of a receipt of a notification of discrimination claim from the Department of Human Rights and authorization that the matter be referred to the City Attorney for preparation of a formal response to the complaint. d. Authorization for the purchase of 700 Husky-lite recycling containers from Rehrig-Pacific Company for the cost of $5,150. Page No. 2733 February 20, 1990 e. Authorization for the issuance of a purchase order to Southview Chevrolet in the amount of $13,500 for the purchase of a 1990 one-ton utility truck and the issuance of a purchase order to LaHass Corporation in the amount of $5,744 for the purchase of a hoist. f. Approval licenses attached g. Approval February 103,189., of the list of contractor dated February 20, 1990 and hereto. of the List of Claims dated 20, 1990 and totalling 15. h. Authorization for the Police Department to conditionally hire a clerk/receptionist to begin work on February 22nd, the appointment being contingent upon Council approval on March 6th. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 FURLONG ADDITION Mayor Mertensotto informed the audience that at its January 16th meeting discussion on the Furlong Addition problems, Council instructed staff to contact various agencies for options for financial assistance. He stated that the report has been received and that copies have been made available for the audience. Administrator Lawell reviewed the report, informing the audience on the four primary courses of action which can be pursued by the Furlong residents. These are: do nothing; undertake the repair/renovation of failed on- site systems; request the extension of municipal utilities to the area; undertake efforts to sell their property to an interested and willing private or public party. He stated that there appears to be a lack of neighborhood consensus. Mr. Lawell then reviewed a funding inventory and matrix which was included within his report. Referencing an engineering feasibility report update which was attached to the Administrator's report, Mayor Mertensotto stated that he concluded that utilities can be extended to the area but the cost would be about $21,500 per lot. He informed the Page No. 2734 February 20, 1990 audience that if the City's Tax Increment Fund contributes $10,000 for each homeowner, the assessment cost would be reduced to about $10,500. The assessment could be levied over a 19 year period, and the homeowners would be responsible for the cost of extending the utilities from their property lines to their homes. He pointed out that from a timing standpoint, the utility extension would solve the immediate problems and make the homes marketable, although the project could not be constructed until 1991. Mayor Mertensotto informed the audience that the MAC is anticipating receiving $4 million from the Part 150 study but that the funds would not be available for a couple of years. He stated that the City would have to check with the MAC to see how viable the program is and what the timing would be, although it would possibly only mean about $100,000 per year available for the purchase of properties. He pointed out that Council does not know how many homes are in urgent need. He also stated that the Superfund does not appear to be a viable source of funding. Mayor Mertensotto informed the audience that the City could take bids for cesspool pumping for the area - a single contractor to handle all of the pumping under the competitive bidding process. The City could possibly also take bids for someone to provide bottled water on a unit basis to provide some immediate relief for the neighborhood. He stated that there is no way the City will be able to find the financing to buy out the homes other than perhaps the six or seven with the most severe problems, such as contaminated drinking water. Mrs. Swenson, 1294 Kendon Lane, informed Council that she talked with Jeff Hamiel of the MAC today and was informed that he is going to ask for $80 million in advance money on a one-time basis, and hopes to get at least an additional $30 to $40 million to buy the noise impacted homes in Richfield and Bloomington. She stated that Mr. Hamiel informed her that Mendota Heights is the third priority under Part 150 and that the Furlong area is definitely on the MAC buy-out list. Mr. Hiner informed Council that the City must petition for the neighborhood to be bought out Page No. 2735 February 20, 1990 and must submit the petition to MAC by March 1st. Responding to a question from Councilmember Cummins, Administrator Lawell informed the Council and audience on the availability of loans from the Minnesota Housing Finance Agency, HUD, and the Dakota County Health Department. Mrs. Doffing, 1314 Furlong, stated that there has been confusion among the residents in the past but they are now together. She submitted and read a petition signed by 31 property owners. The petition requested that Council abandon any City extension of utilities, that the City have all of the properties evaluated by the Dakota County Health Department; that the City provide a subsidy for pumping and subsidize the cost of bottled water; and that the Lake Lemay water quality be tested. Councilmember Blesener felt that Council should consider the issues one step at a time and explore interim solutions. Mayor Mertensotto stated that if utilities are extended to the neighborhood the homes will become marketable and felt that the issue of utility extension should be kept as an option. Councilmember Blesener questioned how many of the homes would receive a benefit equal to the cost of the estimated $10,000 estimate and the cost of hooking up to the utilities. Councilmember Cummins did not feel that a utility extension is an economically feasible way of resolving the problems, and suggested' that this be dropped and that Council focus on realistic options. Mayor Mertensotto felt that the other options may be seven to eight years away. Councilmember Blesener pointed out that the TID subsidy by the city for such a project will never be returned to the City. Mayor Mertensotto responded that this may be the price the City has to pay for the health and safety of the neighborhood. He felt that thinking that a developer for the area will come forth is speculation and that Council Page No. 2736 February 20, 1990 must look at correcting the problems. He felt that extending the utilities is the only viable option and that Council must start attaching timeframes to the options. Councilmember Cummins asked if there are any restrictions against extending sewer and water into the area to keep it a viable residential area. Administrator Lawell and City Attorney Hart both responded that there are no restrictions. Councilmember Blesener felt that pursuing MAC and TIF funding for buyouts, pumping the systems and providing drinking water were more viable solutions than extending the utilities. Mayor Mertensotto responded that these actions would do nothing for the property investment and marketability. Attorney Hart informed Council that the homeowners are only required to pay for assessments as far as the extent of the benefit - if a property owner could demonstrate that his property is not benefited to the extent of the assessment, the assessment would be lowered. Mr. Robert Tousignant suggested that the City survey the area to determine the sewer and water problems and the values of the homes. Ms. Linda Kranz stated that she and her sister inherited their mother's estate which is located in the Furlong area and that the County has informed her that they must have a soil test done, at a cost of $1,200. Councilmember Cummins moved to direct staff to take the following series of actions based on the neighborhood petition: 1) look into the procedures to be followed in having Dakota County evaluate the severity of the problems of contaminated water; 2) determine how many septic systems would require regular pumping and investigate the costs for pumping as often as needed; 3) investigate sources of potable water and means of delivering it; 4) contact the DNR to begin the process of having Lake Lemay tested; and 5) that it be the current thinking of Council that for the time being the concept of extending sewer and water to Page No. 2737 February 20, 1990 the neighborhood is not realistic and will not be explored unless it is the last alternative available. Councilmember Blesener seconded the motion. Councilmember Anderson stated that he feels Council is misleading the neighborhood with respect to the sewer and water aspect of the matter. He felt that it is good to have Dakota County evaluate and to talk about regular system pumping and potable water, but stated that he thinks it would be very hard to convince the community residents who have paid utility assessments and regularly pay sewer and water bills that the City should subsidize pumping of tanks and bring in water for the Furlong area. Councilmember Cummins pointed out that subsidy is not a part of the motion. Councilmember Anderson stated that if council is not prepared to provide the subsidy it should go back to the point before the petition - he asked how prohibitive it would be for the residents to stay in their homes for another five years. It becomes a question of neighborhood acceptance of sewer and water, which would be a permanent solution. He stated that there are people in the neighbor- hood who feel very strongly that their homes have no market value at this time. He did not think residents could make this assertion now and on the other hand ask that the City pay top dollar for the purchase of the homes. He did not think that bringing in sewer and water is so bad if the City assists with TIF money. Councilmember Blesener stated that Council is not committing to any subsidy at this point, just exploring options, but if the City gets involved in subsidized pumping and potable water, the cost would be insignificant compared to extending utilities into the area. Some of the residents in the audience asked that the City reinstitute the buyout program, buying out those owners with serious sewer and water problems and those who are transferred or have other emergencies. Councilmember Cummins stated that the -motion is designed to be a short term way of addressing the problems. Perhaps the City can Vote on motion as amended: Ayes: 4 Nays: 0 Page No. 2738 February 20, 1990 get a quantity discount for the residents, but there is no funding commitment in the motion. Councilmember Anderson stated that if the City makes no commitment to funding he does not think the motion does much, however he does not support the fifth point in the motion. He suggested that an addition be made to the motion to add the concept that the City should do something in terms of specific numbers for sewer and water and what the City is willing to do on financing utilities. He pointed out that the four points in the motion are extremely temporary. Councilmembers Cummins and Blesener agreed to amend the motion to delete item 5. Council directed Administrator Lawell to contact Jeff Hamiel regarding the information received this evening that MAC has made application for an $80 million grant and to determine whether the City must make application by March 1st. Councilmember Cummins moved to direct staff to request funding from whatever sources are available for immediate assistance towards the buyout of the Furlong neighborhood. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 Councilmember Blesener asked whether Mr. Hamiel or someone else is knowledgeable on Part 150 funding to come to a future meeting to explore Part 150 possibilities. Administrator Lawell stated that Mr. Hamiel has been very willing to negotiate incorporating the City's concerns into the MAC plan and he will extend an invitation to Mr. Hamiel to attend a Council meeting. Mayor Mertensotto felt that the City should get Advice from an expert on residential appraisal as to what extent sewer and water would benefit the properties. Councilmember Anderson supported the suggestion and stated that what Council has done this evening is a band aid. He felt that Page No. 2739 February 20, 1990 Council should see what it can do with respect to expediting sewer and water and that one thing sewer and water will do is that it would be a relatively permanent solution. In the long-term it would cost the City considerably less than to buy out the neighborhood. He felt that the City should pursue the utility extension option and found out what-effect the extension of the utilities would have on property values. Councilmember Cummins suggested that the engineering department be directed to update the feasibility study. Councilmember Anderson moved to authorize staff, with the help of an appraiser at a maximum contract cost of $750, to generally determine the extent of the highest benefit to the properties for the extension of sewer and water. Councilmember Cummins seconded the motion. Ayes: 3 Nays: 1 Blesener A gentleman in the audience asked what the City plans to do about the Mendota Heights Motel dumping sewage into Lake Lemay. Attorney Hart suggested that in order to shut down the operation, the City would have to initiate a lawsuit and establish fact. Administrator Lawell informed Council that Dakota County has asked the state agency which regulates licensing of hotels to get the problem stopped or to revoke the motel's license. Councilmember Cummins suggested that staff contact the Pollution Control Agency and get them involved immediately. RECESS Mayor Mertensotto called a recess at 9:25 P.M. The meeting was reconvened at 9:37 P.M. RECREATION PROGRAM Council acknowledged a letter from Independent School District 197 regarding a proposed After School Recreation Program, along with an associated report from Administrative Assistant Batchelder. Councilmember Blesener suggested that staff ask the School District why the City of Eagan has not been contacted to participate since Page No. 2740 February 20, 1990 the Pilot Knob School will be one of the program sites and the program will also serve Eagan students. Councilmember Anderson moved to authorize a $3,000 expenditure from the Recreation Management Contingency line item in the 1990 Park Department Budget for the after school program proposed by Independent School District 197 contingent upon participation approval by the City of West St. Paul. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 COMMISSION APPOINTMENTS Council acknowledged a report regarding the reappointment of Commission members whose terms expired on January 31st. Councilmember Cummins moved that Carolyn Dreelan be reappointed to a three year term on the Planning Commission. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 Councilmember Blesener moved that Vicki Katz and Richard Spicer be reappointed to three year terms on the Park and Recreation Commission. Councilmember Cummins seconded the motion. Ayes: 4 Nays: 0 ZONING ORDINANCE Council acknowledged receipt of a draft copy of the recodified zoning ordinance along with a memo from the City Clerk. It was the consensus of Council that a joint workshop be conducted with the Planning Commission at 8:00 P.M. on Wednesday, May 2nd. Staff was directed to distribute copies of the draft ordinance to the Planning Commission at its next meeting and to notify the Commission of Council's preferred meeting date. COUNCIL COMMENTS Councilmember Blesener suggested that Council consider the possibility of creating a permanent airport relations commission. Council directed Administrative Assistant Batchelder to survey other cities to see what experiences they have had with similar committees and to prepare a report and recommendation. Page No. 2741 February 20, 1990 Councilmember Blesener informed Council that she has been contacted by Sunfish Lake Mayor Baird who expressed his concern that the issue of an 1-494 interchange south of Kensington is still very much a live issue. She stated that Mayor Baird is interested in how Sunfish Lake and Mendota Heights might work together to prevent the interchange from happening. Council directed Administrator Lawell to contact the Mn/DOT Metro District and possibly John Shardlow and to prepare a status report on the issue for Council. ADJOURN There being no further business to come before the Council, Councilmember Cummins moved that the meeting be adjourned. Councilmember Anderson seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 9:52 o'clock P.M. Aathleen M. Swanson City Clerk- ATTEST: Charles E. Mertensotto Mayor