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1990-08-21 Council minutesPage No. 2870 August 21, 1990 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, August 21, 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, as amended to remove item 10. Councilmember Cummins seconded the motion. Ayes: 4 Nays: 0 APPROVAL OF MINUTES Councilmember Blesener moved approval of the minutes of the July 17th regular meeting with corrections. Councilmember Cummins seconded the motion. Ayes: 4 Nays: 0 Councilmember Anderson moved approval of the minutes of the August 7th regular meeting with correction. Councilmember Cummins seconded the motion. Ayes: 4 Nays: 0 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 14th Park and Recreation commission meeting. b. Approval of the permanent appointment of Lambert Derks to the part-time Custodian position. c. Approval of the permanent appointment of Maria Karels to the Receptionist/Clerk- typist position. P CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Adjourned Meeting Held Tuesday, June 5, 1990 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, was held at 7:00 o'clock P.M. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. Mayor Mertensotto called the meeting to order at 7:00 o'clock P.M. The following members were present: Mayor Mertensotto, Councilmembers Cummins and Hartmann. SOLID WASTE Dakota County Commissioner Don Chapdelaine, County Administrator Lyle Wray, and other County representatives were present to give the Council an update on solid waste activities currently under way in Dakota County. They informed the Council on such activities and issues as the County incinerator, household recycling and yard waste composting efforts. They then answered questions from the Council. With respect to the incinerator issue, Commissioner Chapdelaine informed the Council that the County has completed a health risk analysis based on a 70 year exposure even though the County has a 20 year contract for the facility. As the result of the analysis, the County believes it to be safe for people living nearby. He also discussed what will be done with ash residue. Additionally, he informed the Council that the Metropolitan Council will act on the matter on June 14th, that the Council will make a site selection on June 19th, and that following a permit request to the PCA there will be a 60 day period for public response with respect to permit issuance. Councilmembers Blesener and Anderson arrived at 7:20 P.M. ADJOURN There being no further business to come before the Council, the Council adjourned to the regularly scheduled meeting. ATTEST: Charles E. Mertensotto Mayor TIME OF ADJOURNMENT: 7:30 o'clock P.M. Xathleen M. Swanson City Clerk d. Adoption of "RESOLUTION FOR SPECIAL COLLECTIBLE e. Adoption of "RESOLUTION Page No. 2871 August 21, 1990 Resolution No. 90 -54, APPROVING FINAL 1990 TAX LEVY TAXING DISTRICT NO. 1 IN 1991." Resolution No. 90 -55, ADOPTING PROPOSED BUDGET." f. Adoption of Resolution No. 90 -56, "RESOLUTION ADOPTING TENTATIVE 1990 LEVY COLLECTIBLE IN 1991." g. Approval of the scheduling of a public hearing on the proposed 1990 levy for Tuesday, December 4th at 8:00 P.M. and a continued hearing, if necessary, for December 18th at 8:00 P.M. h. Approval of the purchase of Fire Department turnout gear from Minnesota Fire Safety for $2,989.40. i. Adoption of Resolution No. 90 -57, "RESOLUTION PROVIDING FOR PUBLIC SALE OF $1,730,000 GENERAL OBLIGATION PARK BONDS OF 1990.11 j. Approval of a recommendation from the City Administrator to decline an offer from Alois and Adeline Wagner to donate to the City a parcel of property located north of Wagon Wheel Trail , east of I -35E and west of Rogers Lake. k. Adoption of Resolution No. 90 -58, "RESOLUTION APPOINTING ELECTION JUDGES FOR 1990 PRIMARY AND GENERAL ELECTIONS." 1. Authorization for staff to solicit bids for improvements to existing city ballfields in three separate contracts, for concrete work, benches, and fencing (Friendly Hills, Wentworth and Ivy Hills) for an estimated total cost of $24,000. m. Approval of the list of contractor licenses dated August 21, 1990 and attached hereto. n. Approval of the list of claims dated August 21, 1990 and totalling $271,874.15. Page No. 2872 August 21, 1990 o. Authorization for the purchase of an equipment trailer for the Park Department from The Wood Stove Company for their low bid of $1,250. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 PUBLIC COMMENTS Mr. Greg Goldman, from Blue Bell Ice Cream, Inc. was present to request a variance from the $5.00 per day solicitor license fee requirement. Mr. Goldman explained that he understands there has been a problem with door-to-door sales in the City in the past and that it is his purpose this evening to see whether it is the intent of the City ordinance to restrict ice cream trucks and to see whether there is some other way to make the license more financially feasible for his firm. Police Chief Delmont, present for the discussion, stated that he did not realize that Mr. Goldman was going to phone the Council members directly, as he has done. He stated that it is not the intent of the ordinance to keep ice cream trucks out of the City, but rather to require solicitors to provide some responsibility. He described problems with door-to-door solicitors which occurred before ordinance adoption and stated that while Blue Bell's situation is different, it falls under the ordinance which is for the general well-being of the City. He felt that a $5.00 per day license fee for someone who is soliciting members of the community is not prohibitive. Although Mr. Goldman claims that his drivers make little money, the City is not in business to take care of private interests but rather to take care of its residents. Chief Delmont then reviewed alternatives which were contained in his written report to Council, and recommended the third option - to allow limited annual licenses at a realistic fee with specific conditions to provide accountability and control. Councilmember Cummins Bell does not go door there is any basis fo: license requirements. that he does not feel exempted. pointed out that Blue to door and asked if r exempting them from the Chief Delmont responded the firm should be Page No. 2873 August 21, 1990 Responding to Council questions, Mr. Goldman stated that his firm has 45 trucks in the metro area but that one driver would be assigned to Mendota Heights and would operate six days a week. He felt that $5 per day would be excessive. Mayor Mertensotto suggested that a license could be issued for $5 per day and once any one driver exceeds $100 he could be entitled to make application for a refund. The license would be issued for specific days and times. Councilmember Cummins felt that a $100 annual fee would keep the fly by night operators out of the City. He asked whether there had been any complaints. Chief Delmont responded that the police have had calls from mothers concerned about their children running across the street to get to the truck but no complaints. Councilmember Anderson stated that he did not know that the Blue Bell truck is needed every day in the summer and that $5 per day makes sense. He pointed out that if residents call about Blue Bell, the police will know who holds the license for that particular day and the city would have some control. Transfer of licenses would be costly administratively, and if a driver could not make $5 per day in Mendota Heights perhaps he should not be here. Mr. Goldman responded that his firm hires many students on summer break and if a driver made $45 a day, the $5 permit would cut out ten percent of his business. Councilmember Cummins moved to adopt the Police Chief's third alternative and to direct that staff prepare a proposed ordinance amendment based on that alternative, including tying licensure to specific days and times and addressing an additional fee for transfer of a license to cover administrative expenses. Councilmember Blesener seconded the motion. Ayes: 3 Nays: 1 Anderson HEARING: BIG WHEEL Mayor Mertensotto opened the meeting for the ASSESSMENT ROLL purpose of a public hearing on proposed assessments for the installation of sanitary sewer and watermain improvements to serve the Big Wheel site and adjacent areas. Public Page No. 2874 August 21, 1990 Works Director Danielson reviewed the project for the Council and audience, pointing out that actual costs exceeded the feasibility estimate because watermain needed to be looped under T.H. 13 to provide increased water pressure and flow for the Big Wheel building. The portion of the cost attributable to the looping is proposed to be funded with TIF funds. Mayor Mertensotto asked for questions and comments from the audience. There being no questions or comments, Councilmember Cummins moved that the hearing be closed. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 Councilmember Cummins moved adoption of Resolution No. 90 -59, "RESOLUTION ADOPTING AND CONFIRMING ASSESSMENTS FOR SANITARY SEWER AND WATER IMPROVEMENTS TO SERVE MENDOTA HEIGHTS BUSINESS PARK (BIG WHEEL SITE) AND ADJACENT AREAS (IMPROVEMENT NO. 88, PROJECT NO. 3)." Councilmember Blesener seconded the motion. I Ayes: 4 Nays: 0 HEARING -- ALICE LANE Mayor Mertensotto opened the meeting for the ASSESSMENTS purpose of a public hearing on proposed assessments for sanitary sewer, water, storm sewer, street and grading improvements installed to serve the Alice Lane Addition and adjacent areas. Public Works Director Danielson briefly reviewed the project for the Council and audience. Ayes: 4 Nays: 0 Mayor Mertensotto asked for questions and comments from the audience. Mr. Vernon Eide, one of the property owners, stated that he is satisfied both with the project and the proposed assessments. There being no further questions or comments, Councilmember Cummins moved that the hearing be closed. Councilmember Anderson seconded the motion. Councilmember Anderson moved adoption of Resolution No. 90 -60, "RESOLUTION ADOPTING AND Page No. 2875 August 21, 1990 CONFIRMING ASSESSMENTS FOR SEWER, WATER, STORM SEWER, STREETS AND CURB AND GUTTER IMPROVEMENTS TO SERVE ALICE LANE ADDITION AND ADJACENT AREAS (IMPROVEMENT NO. 89, PROJECT NO. 3)." Councilmember Cummins seconded the motion. Ayes: 3 Nays: 0 Abstain: 1 Blesener HEARING - -IVY FALLS Mayor Mertensotto opened the meeting for the CREEK ADDITION purpose of a public hearing on proposed ASSESSMENTS assessments for sanitary sewer, water, street and storm sewer improvements installed to serve the Ivy Falls Creek Addition and adjacent areas. Public Works Director Danielson briefly reviewed the project for Council and the audience. Mayor Mertensotto asked for questions and comments from the audience. There being no questions or comments, Councilmember Cummins moved that the hearing be closed. Councilmember Anderson seconded the motion. Ayes: 4 Nays: 0 Councilmember Cummins moved adoption of Resolution No. 90 -61, "RESOLUTION ADOPTING AND CONFIRMING ASSESSMENTS FOR SEWER, WATER, STORM SEWER, STREETS AND CURB AND GUTTER IMPROVEMENTS TO SERVE IVY FALLS CREEK ADDITION AND ADJACENT AREAS (IMPROVEMENT NO. 87, PROJECT NO. 4)." Ayes: 4 Councilmember Blesener seconded the motion. Nays: 0 HEARING -- NORTH IVY Mayor Mertensotto opened the meeting for the HILLS ASSESSMENTS purpose of a public hearing on proposed assessments for sanitary sewer, water, storm sewer and street improvements installed to serve the North Ivy Hills addition and adjacent areas and installation of a storm sewer outlet to serve the Robert Morin property, 963 Chippewa Avenue, and adjacent lots. Council acknowledged letters of objection from Federal Land Company, Robert Morin, and Mr. & Mrs. Leonard Pieper, 529 Miriam. Public Works Director Danielson informed Council that an objection had been received by phone from Ms. Barbara Dunn, 537 Miriam. Page No. 2876 August 21, 1990 Public Works Director Danielson reviewed the project for Council. He stated that there was a portion of the Federal Land Company subdivision (North Ivy Hills) which was receiving storm water from the east, and that Mr. Colon wanted those properties included in the storm sewer assessments because they contributed water to his property and that the owners of the properties to the east were notified. The feasibility estimate for North Ivy Hills lot assessments was $12,433 versus the actual assessment proposed of $10,932 per lot. Storm sewer costs for the lots east of North Ivy Hills are proposed to be assessed at the rate of 13.8 cents per square foot. He informed Council that the letter of objection from Mr. Colon was received today and contends that the easterly properties should be assessed at a higher rate because the storm line was extended easterly to pick up their storm water. Staff has proposed that the lots be assessed at the same rate as the North Ivy Hills lots. Mr. Danielson stated that during the period of time when staff was studying the Colon property, Mr.' Morin contacted staff indicating that he would like to have a storm sewer project constructed to drain the low area in the rear of his lots. (The lot on which his house is located and three additional lots.) He pointed out that the three lots could not be developed without a provision for drainage. All of the owners of property which drain to the area were notified of the feasibility and assessment hearings. All of those lots, with the exception of the Morin lots, have been assessed for storm sewer in the past and that it is proposed that the Morin property now be assessed a trunk storm sewer amount equivalent to assessments paid for the other properties in the past. Ms. Dunn and the Piepers are objecting to the assessment on the basis that they have already been assessed for storm sewer. Responding to a question from Councilmember Blesener on why the adjoining properties are being assessed a second time, Mr. Danielson stated that they were assessed under a storm sewer project along Miriam and Simard in the past on a square footage basis and that this project provided additional benefit to the properties. Page No. 2877 August 21, 1990 Mayor Mertensotto asked for questions and comments from the audience. Mr. Robert Morin summarized his letter for the Council and stated that he feels the City is responsible for the costs. Mayor Mertensotto asked if the ponding problem has been satisfactorily corrected on the Morin lots and Mr. Morin responded that it has. Councilmember Cummins asked whether Council selected assessment option number 2 (assessing the Morin property for trunk costs and dividing the remaining costs among all of the benefiting properties in the drainage district including Mr. Morin's) at the time of the feasibility hearing. Mr. Danielson responded that Council did select this option. Mr. Morin stated th, that Council should option, use of City to pay a portion of He also objected to costs. at he takes the position have taken the third general obligation funding the construction cost. the project overhead Mayor Mertensotto responded that the project was relatively small, so therefore the ratio of overhead is greater. Mr. Morin stated that he had suggested that sewer and water be stubbed into his vacant lots and that the cost was $1,102.50 plus 50% overhead. Mr. Danielson responded that St. Paul Water installed the connections and does so based on a fixed fee. Responding to a Council question, Mr. Morin stated that the vacant lots are now buildable and that he does not wish to infer that he has not received benefit because he has. There being no further questions or comments, Councilmember Cummins moved that the hearing be closed. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 Councilmember Cummins asked for a clarification on the Pieper and Dunn objections, asking Mr. Danielson if he did indicate that the properties have been previously assessed but that this project Page No. 2878 August 21, 1990 represents a material improvement in terms of storm sewer improving their properties. Mr. Danielson responded that there is a rear sink hole on the properties that did not have an outlet and that the outlet was provided under this project. It improved the Morin properties and the Pieper and Dunn properties drained into the sink hole. He pointed out that storm sewer assessments are based on contributing flow. Councilmember Cummins moved adoption of Resolution No. 90 -62, "RESOLUTION ADOPTING AND CONFIRMING ASSESSMENTS FOR SEWER, WATER, STORM SEWER, STREETS AND CURB AND GUTTER IMPROVEMENTS TO SERVE NORTH IVY HILLS 2ND ADDITION AND ADJACENT AREAS (IMPROVEMENT NO. 88, PROJECT NO. 6)." Councilmember Anderson seconded the motion. Ayes: 4 Nays: 0 FURLONG AREA Council acknowledged a Furlong area feasibil- FEASIBILITY STUDY ity study update. Mayor Mertensotto pointed out that this is not a public hearing and the only issue before Council is whether to accept the study and call for a hearing. Engineer Klayton Eckles briefly summarized the study for Council and the audience. He indicated that a typical 15,000 square foot lot in the Furlong Addition would be assessed $10,150 for sewer, water and storm sewer. He further stated that it is important to point out that the assessment amount would not include the costs for well capping, etc., which would be additional costs to the property owners. Responding to a questions from Mayor Mertensotto, Mr. Eckles stated City ordinances do not require that property owners connect to the water system but that State Statute requires that sewer connections be made within one year after sewer becomes available. Mayor Mertensotto suggested that staff research the possibility that the Furlong residents who have new on -site sewer systems be given an extra year to connect. He stated that the study mentioned jacking under T.H. 55 and asked whether an open cut could instead be made under the railroad tracks. Mr. Eckles Page No. 2879 August 21, 1990 responded that it is very unlikely that an open cut can be done but that if it is possible to do, the open cut is preferable and staff will explore the possibility. Mr. Eckles stated that streets are proposed to be constructed to rural section, 6 inches of rock with 2 inches of blacktop. Mayor Mertensotto stated that the City is the only agency that is capable of providing the residents with sewer and water, and that it certainly appears to be feasible. The project has been expanded to lower the costs and it is proposed that the Tax Increment District contribute $482,800. Councilmember Cummins asked what the actual per lot cost is including TIF. Mr. Eckles responded that he cannot give a concrete number because the project covers such a large area and it is hard to draw the line on where it is benefiting the Furlong Addition and where it is benefitting some of the commercial/industrial property. He estimated that 2/3 of the TIF funding would benefit the properties east of T.H. 55, which includes some of the things Howard Dahlgren talked about in his T.H. 55 corridor study. Perhaps one-half of that amount will directly benefit the Furlong Addition. Councilmember Cummins stated that he has previously voiced his objection to the use of TIF funds. Councilmember Blesener stated that she has the same objection. Councilmember Anderson stated that he feel the report is excellent. There are those who say Council should not use $480,000 in TIF to assist in bringing sewer and water to the area, but that the alternative is spending 8 to 10 times that amount to buy out the neighborhood. The total cost of the project would be less than one-third of the cost of a buyout. He did not think the City should be making that choice. Mayor Mertensotto stated that he would like to echo Councilmember Anderson's comments. He further stated that it is easy to say the neighborhood shouldn't remain but there is no alternative - unless the City does something, nothing will make the properties marketable. Ayes: 2 Nays: 2 Blesener Cummins Ayes: 1 Mertensotto Nays: 2 Blesener Cummins Pass: 1 Anderson Page No. 2880 August 21, 1990 There is no feasible way to buy out the properties. He suggested that since there are only four members of Council present, the matter should be tabled to the next meeting. Councilmember Anderson moved that consideration of the Furlong feasibility study be continued to the next regular meeting. Mayor Mertensotto seconded the motion. The motion failed for lack of majority. Councilmember Cummins moved to adopt the feasibility report. Councilmember Blesener seconded the motion. The motion failed for lack of majority. Mr. Bernard Blesener asked Councilmembers Blesener and Cummins what alternative thy have if they oppose bringing improvements to the Furlong Addition Councilmember Cummins stated that Council has spent a couple of years exploring alternatives and has not come up with one that is good. He further stated that the purpose of TIF is to invest on behalf of the community in property which is to be reasonably commercially developable and to spend money for sewer and water for a residential area is an inappropriate use of TIF. Mayor Mertensotto stated that Councilmember Cummins' statement is incorrect and that the Furlong Addition is properly in the TIF district. Councilmember Anderson stated that many commercial properties that already exist in the Furlong area will be improved and made more viable. He further stated that at some point in the future should the area be more desirable for commercial development, there is no question that sewer and water would be necessary anyway. He did not think that it is fair to the residents that they pay the entire cost, because ultimately other people will be helped as the future unfolds. He further Page No. 2881 August 21, 1990 stated that he thinks that it makes sense to help the residents and that the City has not provided much leadership on the issue - the residents will go home again after 20 years of trying to get utilities and still have nothing. Mayor Mertensotto informed the Furlong residents present that their only option is to submit a new petition from at least 35 percent of the property owners. SIBLEY PARK COMPLEX Council acknowledged a report from Public Works Director Danielson responding to a written complaint from Mr. Melvin Swanson over drainage from the new Sibley Park. Mr. Swanson, present for the discussion, suggested that if the existing ponding area is not needed, grass should be grown in the depression, and if that is not acceptable, then a ridge should be built between the ballfields and Marie Avenue to prevent surface water from coming onto Marie. He then responded to Mr. Danielson's report. Mayor Mertensotto pointed out that the Council does not do engineering and is not registered to do so. He stated that Council appreciates Mr. Swanson's comments and asked that he submit his proposed solutions to the City staff so that they can react to the proposals. Mr. Swanson stated that the City has agreed to follow the objectives of the Lower Mississippi WMO and is not doing so. Mr. Danielson responded that Mr. Swanson attended a recent WMO meeting and the organization asked for a copy of the staff report. He pointed out that this is not an inter-community water situation but is strictly within the boundaries of Mendota Heights. He pointed out that staff has calculated the flows and that the calculations show that surface water flows will be virtually identical before and after the project. Staff has discussed their concerns over drainage with Barton-Aschman, who designed the project, and the only person who feels a retention pond is necessary is Mr. Swanson. Page No. 2882 August 21, 1990 Mr. Swanson stated that in 17 years Marie has never been flooded but it has happened twice since the site grading was done. Councilmember Blesener stated that if engineering has done a survey and is comfortable with the project, it seemed to her that the only thing to do is to grade the project and get the grass growing and test it. She further stated that problems sometimes occur during construction and asked if drainage can be redirected so that it doesn't cross property where the City does not have an easement. Councilmember Cummins pointed out that the drawings show that there is a five foot drainage easement platted to provide drainage across the back of the Swanson lot. Mr. Danielson confirmed that there is an easement. Mayor Mertensotto stated that the project must be completed and suggested that if there continues to be a problem the City must spend. the money to correct it. Ms. Narin Bauer, 1759 Ridgewood, stated that she has contacted the University of Minnesota and has been told that grass will not be a sufficient cover unless the soil under it is good. She further stated that her concern is fueled by the fact that an expert at the university has confirmed that the ten year period from 1977 to 1986 was the wettest on record, yet the drainage problems Mr. Swanson has written about never existed. Councilmember Anderson stated that Mr. Danielson responded in writing to the concerns Mr. Swanson raised, and at this point Council cannot change what is being done with respect to the building of the fields. He further stated that if there are problems in the future that are clearly related Council must deal with them but on the other hand, a retention pond on a corner of the field would create safety problems. He pointed out that the fields are incomplete and grading and sodding has not been done and that this would have an impact on drainage in the future. Page No. 2883 August 21, 1990 Councilmember Blesener pointed out that the City can take corrective action if there is a problem after the project is completed. DUFFY/CURLEY DEVELOP- Council acknowledged a report from Public MENT Works Director Danielson regarding the Duffy development and problems identified by Tom Curley as needing to be addressed. Mr. Curley, present for the discussion, expressed his concerns over the three-year moratorium on development of the residential lots and the need for lot size variances or reconfiguration of the lots. He asked that Council amend the moratorium to allow 2 to 3 lot sales a year, allowing him to remove the evergreen screen from west to east as building permits are issued. With respect to lot size variances/ reconfiguration, Mr. Curley was informed that he would need to make a planning application and appear before the Planning Commission. The Council would then consider the Commission recommendation. Councilmember Cummins pointed out that there is a 1211 gas line between two of the lots and asked if there is any requirement which would prohibit building homes on those lots - there has been discussion from the State Office of Pipeline Safety, and that he would not be surprised if that office sets 100 to 200 foot setbacks within the next year. Councilmember Anderson stated that the idea of keeping the buffer three years after development of the proposed mall was to respond to the serious concerns of the neighborhood. What Mr. Curley is proposing is to develop financing by selling one lot at a time, and some of the lots do not even meet the grandfather provision for lot sizes. After Mr. Curley stated that the sale of the lots would be to stimulate the source of income, Councilmember Anderson stated that the developers do not have financing and that the ground rules keep changing. He stated that the ultimate fruition of the developers agreement, financing, etc., is not forthcoming and before Council could release the lots they Page No. 2884 August 21, 1990 must conform to at least the minimum expectation for grandfathered lots. Mayor Mertensotto asked about the status of the rest of the project. Mr. Curley responded that the sale of the lots is a source of income to help support the strip mall project and that he is responsible for holding up the project. Responding to a question from the Mayor about proposed relocation of the bank, Mr. Curley stated that it could be left as planned but not built off the end of the furniture store, but instead relocate it to the other end of the center. Mayor Mertensotto pointed out that this would be a major change in the proposal. Councilmember Cummins stated that he is coming to the conclusion that the developer does not have the financial wherewithal to do the kind of project he hoped for. Council has to indicate to SOS whether the City will buy their property or let them know so that they could make improvements to the tanks, etc. He further stated that he has the impression that the developer is not going to make the center a viable project. He asked whether Mr. Curley has given any consideration to selling the property to someone else for development and keep the furniture store in the project. Councilmember Blesener stated that if the release of the lots controls the entire development, Council should have been so informed a long time ago. Mr. Curley responded that there are other issues as well, such as the rezoning of the Ethan Allen property. He felt that rezoning to B -2 would reduce the property value. Councilmember Blesener stated that she is very concerned about Mr. Curley's statements about the bank, and that if this is the type of redesign that the developers propose to rehash, Council is not interested in it. She suggested that Mr. Curly come to Council with the kind of a phased proposal and informed Mr. Curley that the issue of some time building something on the corner where the retention pond is intended is not open for discussion. Mr. Curley asked if the ponding area is to be bought by the City and what the condemnation amount is. Page No. 2885 August 21, 1990 Mayor Mertensotto responded that there can be no developers agreement until the developers have financing, and that everyone is concerned and it is time to do something. The developer must be interested and have the financing to do the project or inform Council if this is not the case - Council needs a definite decision from the developer. Mr. Curley responded that he hoped it would be acceptable to the Council and the developer to develop the residential lots, a maximum of three lots from the west. Mayor Mertensotto asked whether Mr. Curley is saying that he is going to build the five or six homes and hold off on building the center. He pointed out that the only reason he agreed to removing the existing screen is because the developer was going to build a new berm - now he is saying that he does not know about the project. Mr. Curley stated that it would much more comfortable for the developers to have that land available should they wish to put more money into the furniture store. The residential development would proceed after the new berm and trees are completed. Councilmember Cummins asked Mr. Curley, if Council were to agree to his requests, how long it would be before a project that is finalized and has financing, with a developer's agreement and groundbreaking would take place. Mr. Curley responded that financing is not his field and that financing is such that it is hinged on leases and tenants - they still have commitments from tenants but financing is hinged on the number of tenants. Responding to a question from Mayor Mertensotto, he stated that he has no immediate prospect for financing. Councilmember Anderson stated that the developers must adhere to what has been agreed to and must be candid with Council on financing. Mr. Curley responded that the developers do not have a financing commitment at this time Page No. 2886 August 21, 1990 and that he has been holding up on signing the developers agreement because he felt there may need to be more money infused into the furniture store. He did not want to build houses before the mall, but rather after the mall and berm are built. Councilmember Cummins pointed out that one issue that must be resolved is whether the City is going to buy the SOS property. At the present time his feeling is to tell the SOS people to go ahead and do what they must to their property because it doesn't appear the City will be buying their property in the near future, which means that the Duffy/Curley project is not going to happen. Mr. Curley stated that he has construction financing. With respect to Lots A and B, Council informed Mr. Curley that their use is not negotiable and that everything west and north of the frontage road must remain open space. Councilmember Blesener stated that the developers must get together and send Council a proposal so that Council knows what is needed from the City and other sources. Mr. Curley responded that he will write the City a letter. 3M BUILDING PERMIT Mr. John Bloom was present to request approval of a building permit for remodeling of the former Unisys building located at 2465 Lexington Avenue. Council acknowledged a letter from 3M enumerating the exterior remodeling and associated plans, along with a letter addressing present and future parking needs and a memo from City staff regarding the changes proposed since the last Council discussion on the matter. Mayor Mertensotto stated that 3M has addressed the Council's concerns raised at the last discussion. He asked whether there can be some modification to the cast-concrete and also whether 3M had depressed the "tower" addition so that it will be no higher than the main building. Mr. Bloom responded that the addition has been reduced to 45 feet in height and that perhaps it can be further reduced, but that they are Page No. 2887 August 21, 1990 asking for the maximum allowed height in case it is necessary. In response to a question from Councilmember Blesener as to why it is not proposed to use tilt up panel like the rest of the building, Mr. Bloom responded that he is not sure the structure would look good if it were all tilt up panels and that an insulated sandwich panel system is proposed and will match the existing building colors. Mayor Mertensotto asked if it is still proposed to put boiler stacks on the roof, and Mr. Bloom responded that it is, and that they would be five feet above the existing roof. He stated that the stacks would be on the south end of the building, close to the edge of the roof and that 3M would like to keep them in the proposed location, although they could be adjusted slightly. Councilmember Blesener asked why the existing penthouse structure could not be expanded to screen the stacks. Mr. Bloom stated that there will be one large building housing three different 3M tenants. The third tenants will come in about a month and will require some exterior changes and Mr. Bloom will possible need to come before Council again. 3M will not exceed the 45 foot height limitation and will not be adding a second story. Councilmember Anderson pointed out that no variances are required except that the City will require a signed proof of parking agreement. Responding to a question from Mertensotto, Mr. Bloom stated proposed tower is on the west building and that 3M proposes that side and that the plantii increased if Council desires. Mayor that the side of the some planting on ig can be After discussion, Councilmember Cummins moved to grant the request for building permit subject to 3M executing a proof of parking agreement and providing some screening for the smokestacks on Mendota Heights Road and the west side of the building. Councilmember Anderson seconded the motion. Ayes: 4 Nays: 0 Page No. 2888 August 21, 1990 Mayor Mertensotto informed Mr. Bloom that Council is not committing to anything this evening other than the building permit for remodeling shown on the plans reviewed this evening. MN/DOT STORM SEWER Council acknowledged and discussed a memo from the Public Works Director regarding a proposed Mn/DOT storm water project along T.H. 13, and the proposed $30,000 City share of the project costs. Mayor Mertensotto felt that the City should have an agreement in writing that Mn/DOT will participate (in the cost) of the T.H. 55 storm sewer project. Councilmember Blesener asked why staff does not propose to assess the project now. Public Works Director Danielson responded that it seemed to be more appropriate to assess the costs with a future street reconstruction project, and pointed out that the affected properties have never been assessed for storm sewer. He further stated that at the time that the street project is considered at feasibility hearing, the property owners will be notified that these storm sewer costs will be included in the street reconstruction project. Councilmember Anderson moved to authorize the participation in the state project conditioned upon a reciprocal agreement for participation in storm sewer in the T.H. 55 corridor. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 SIBLEY COMFORT STATION Council acknowledged a memo from the City Administrator along with a tabulation of bids received for the construction of a comfort station for the Sibley Park. Architect Ed Kodet was present for the discussion. Mayor Mertensotto pointed out that Kodet Architects had agreed to design a $50,000 building for a fee of $5,000 and still has not come up with a building for $50,000. He asked where Kodet stands on the matter. Mr. Kodet responded that his initial estimates for the project indicated that based on the industry standard, the building could be built for $50,000. He stated that the estimate was Page No. 2889 August 21, 1990 risky at best due to the size and scale of the project, which is quite small. Mayor Mertensotto pointed out that the lowest bid was $58,860 plus alternates for brick ($5,600) and rock face block ($440). He asked about add alternate three, for extra outlets, and pointed out the expense for running electricity to the dugouts. Mr. Kodet responded that the 200 amp service has been scaled back and that his firm has taken out everything it could to get the price down to meet City objectives. In the addendum, the roof overhang was removed from two sides of the building (deduct number six). He further stated that there is very little that can be taken out of the building except square footage and that all of the light fixtures are now very basic. Councilmember Blesener stated that an alternative would be for the City to act as its own general contractor. Administrator Lawell responded that staff provided two options: accept the low bid or reject all bids and put the project on hold. He further stated that a third option would be for the City to act as general contractor and that staff estimates that the bidding contractors were looking at 15 to 20% overhead. He pointed out that if the City acted as the contractor, a staff member would have to be committed to seeing the project through. Mr. Kodet responded that he is disappointed that some smaller builders did not bid and that there the plans are very good and the bids were very competitive. He further stated that the City staff was very aggressive in talking to local builders but that a small contractor bid the highest in the first bidding process. Councilmember Cummins stated that Council is looking at an $800,000 project and that he thinks Kodet has done as good a job as could be expected. Councilmember Cummins moved to accept the low bid of Morcon Construction. The motion died for lack of a second. Page No. 2890 August 21, 1990 Councilmember Blesener moved to reject the bids and to direct that the City act as general contractor in construction of the building. Mr. Kodet stated that many of his clients contemplate acting as general contractor and that he thinks it would be a bad experience for the City. Councilmember Blesener withdrew her motion. It was noted that the bids would be good for 30 days. Councilmember Blesener moved to hold the bids in abeyance and to direct staff to come back with a report at the next Council meeting with respect to staff acting as general contractor. Councilmember Cummins seconded the motion. Ayes: 3 Nays: 1 Anderson MISCELLANEOUS Council acknowledged an update on park construction costs prepared by Guy Kullander. ADJOURN There being no further business to come before the Council, Councilmember Cummins moved that the meeting be adjourned. Councilmember Blesener seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 10:59 o'clock P.M. Kathleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL AUGUST 21, 1990 General Contractors Licenses Dahl Systems Powers Construction Co., Inc. Schaefer Excavation, Inc. Masonry Bruce Dalbec Construction Inc. Prestige Concrete & Snowplowing Co.