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1990-09-04 Council minutesPage No. 2891 September 4, 1990 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, September 4, 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, Cummins and Hartmann. AGENDA ADOPTION Councilmember Hartmann moved adoption of the revised agenda for the meeting, as amended to move item 4f (Lexington Heights Apartment bond refinancing) to the regular portion of the agenda. Councilmember Cummins seconded the motion. Ayes: 5 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 draft minutes of the August 28th Planning Commission meeting. b. Acknowledgment of the code enforcement monthly report for August. c. Acknowledgment of the quarterly engineering project report. d. Acknowledgment of a letter from Stanley Dupre, 564 Miriam, objecting to his proposed assessment (North Ivy Hills project) and the hearing process. e. Adoption of Resolution No. 90-63, "ADOPTION OF THE CITY OF MENDOTA HEIGHTS FLEXIBLE BENEFITS PLAN." f. Approval of the installation of street lights in the Deer Trail Hills Addition by the developer at the locations proposed in a plan submitted with the agenda. Page No. 2892 September 4, 1990 g. Approval of the list of contractor licenses dated September 4, 1990 and attached hereto. h. Approval of the list of claims dated September 4, 1990 and totalling $147,077.95. Councilmember Anderson seconded the motion. Ayes: 5 Nays: 0 LEXINGTON HEIGHTS Ms. Barbara Portwood, from Holmes and Graven, REFINANCING and Mr. James Riley were present with respect to Mr. Riley's request for approval of the refunding of housing revenue bonds for the Lexington Heights Apartments.. It was noted that the original request was for refunding but that there is an additional handout document this evening which, if authorized, would allow Mr. Riley to proceed with an amendment to the original bond documents if this is ultimately preferable to refunding. Mayor Mertensotto informed Council that he has met with Mr. Riley to discuss the City's fee and that they have arrived at a compromise figure of $15,000, regardless of whether Mr. Riley decides to amend the original documents or refund. Mr. Riley confirmed that he agrees to a $15,000 fee in conjunction with his application. Councilmember Cummins asked whether the City's legal counsel has had the opportunity to review the alternate (handout) resolution. Acting City Attorney Lloyd Grooms stated that he has not, but that in the event that the existing documents are amended, the developer would expect to come back in the future for refinancing. Councilmember Cummins moved adoption of Resolution No. 90-64, "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 REFUNDING REVENUE BONDS (FHA INSURED MORTGAGE LOAN - LEXINGTON HEIGHTS APARTMENTS PROJECT) SERIES 1990A (THE "BONDS"), WHICH BONDS AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM REVENUES PLEDGED THERETO; APPROVING THE FORM Page No. 2893 September 4, 1990 OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST, A LOAN AGREEMENT, AN AMENDED AND RESTATED REGULATORY AGREEMENT AND A BOND PURCHASE AGREEMENT; APPROVING THE USE OF AN OFFICIAL STATEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF SAID BONDS," Resolution No. 90 -65, "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 REFUNDING REVENUE BONDS (LEXINGTON HEIGHTS APARTMENTS PROJECT) SERIES 1990B (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 AN INDENTURE OF TRUST, A LOAN AGREEMENT, AN AMENDED AND RESTATED REGULATORY AGREEMENT AND A BOND PURCHASE AGREEMENT; APPROVING THE USE OF AN OFFICIAL STATEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF SAID BONDS," and Resolution No. 90 -66, "AUTHORIZING AMENDMENTS TO DOCUMENTS RELATING TO THE CITY'S $11,000,000 HOUSING MORTGAGE REVENUE BONDS (LEXINGTON HEIGHTS APARTMENTS PROJECT) DATED DECEMBER 1, 1983," subject to review and approval of the City's legal counsel and payment of a $15,000 fee to the City, along with authorization for execution by the appropriate City officials. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 FURLONG PETITION Mr. Robert Tousignant, 1300 Furlong Avenue, was present representing residents of the Furlong Addition, to submit a petition for public improvements to serve the Furlong area. Responding to a question from Mayor Mertensotto, he informed Council that this is a new petition and contains signatures of both spouses in each case except where one spouse is deceased. He corrected the petition date to August 29th. Mr. Tousignant read the petition for the Council and audience, and stated that 19 of 33 Furlong property owners, (60 percent) signed the petition. Page No. 2896 September 4, 1990 the City's TIF costs if utilities are installed. Councilmember Cummins withdrew his request for legal opinion. 1990 AUDIT Steve Laible and Dave Berryman, from Peat Marwick Main, were present to review the 1990 audit. Mr. Laible gave Council a brief oral presentation on the report which was issued in June and answered council questions. He informed Council that the City's general fund balance has been very consistent with the stated City objective to maintain balances for contingencies and that the opinion is consistent with statutory requirements and fiscal prudence. HEARING - RISCHALL Mayor Mertensotto opened the meeting for the EASEMENT VACATION purpose of a public hearing on an application from Dr. and Mrs. David Rischall, 610 Callahan Place, for the vacation of a slope easement over Lot 35, Willow Springs Addition. Dr. and Mrs. Rischall and Lou Brenner, their legal counsel, were present for the discussion. Mayor Mertensotto explained that the applicants are requesting release of a 105 by 60 foot parcel that the City owns fee title to and the westerly thirty feet of a 70 foot ,slope easement which runs over the east side of the lot. Mr. Brenner explained that the Rischalls are asking for release of the portion of the easement which they maintain. Mayor Mertensotto stated that the area being maintained by the Rischalls now is the easement area and the part the City holds fee title on is rugged and in its natural state. He felt that the City should maintain as much buffer as possible along Warrior. He asked whether the applicants would be willing to offer the City some consideration for release of the fee title property. Mr. Brenner stated that the Rischalls would pay the City $2,000 for the 60 by 105 parcel, subject to City easement over the easterly 30 feet. He further stated that the applicants will prepare a deed and abstract if Council approves a quit claim deed for the 105 by 60 foot parcel to square the northeast corner of Page No. 2897 September 4, 1990 the lot and the City would reserve an easement over the easterly 30 feet. Mayor Mertensotto asked for questions and comments from the audience. There being no questions or comments, Councilmember Hartmann moved to close the hearing. Councilmember Cummins seconded the motion. Ayes: 5 Nays: 0 Councilmember Hartmann moved to deny the application for vacation of the westerly 30 feet of the slope easement across Lot 35, Willow Springs Addition. Councilmember Cummins seconded the motion. Ayes: 5 Nays: 0 Councilmember Hartmann moved to convey fee title to the 60 by 105 foot right -of -way area, reserving the easterly 30 foot slope easement across that right -of -way, conditioned upon a $2,000 consideration to the City. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 HEARING - CON /SPEC Council acknowledged a request from the (MIST) M.I.S.T. to continue the hearing on their application for conditional use permit and variance for a soccer arena to January 15th. Councilmember Cummins moved to continue the hearing to 8:00 P.M. on January 15, 1991 in accordance with the request of the applicant. CASE NO. 90 -30, Mr. Paul Mateyka was present to request MATEYKA WETLANDS approval of a wetlands permit to allow construction of a home on Lot 4, Block 1, Spring Creek Addition. Mr. Mateyka stated that he agrees to the Planning Commission recommendation that the home be setback 34 feet from Spring Creek Circle in order to maintain a larger setback from the creek than he had originally requested. He submitted a letter of approval from his neighbor to the east. Councilmember Cummins moved to grant a ten foot front yard setback variance, along with approval of a 44 foot setback from Spring Creek, to allow construction of a home on Lot 4, Block 1, Spring Creek Acres 34 feet from Page No. 2894 September 4, 1990 Mayor Mertensotto stated that the last time the Furlong residents were before the Council, he had informed the residents that capping of wells and connection of the sewer line into the houses will cost upwards of $5,000. He stated that the residents would not have to hook up to water but must connect the sewer within a year after it is available unless Council does something. There have been some residents who have said that they have operating systems with no problems and perhaps Council could have the engineering staff determine whether it might be possible to have a two year delay for sewer hook-up if it is not necessary to do so immediately. Councilmember Hartmann stated that as it pertains to the wells, he believes the residents would not have to cap their wells if they are disconnected but that they could be used for lawn sprinkling. Public Works Director Danielson responded that staff needs to check with the Dakota County Health Department, but believes that if a well is functioning it can be left in service. Mr. Tousignant stated that this is an engineering issue that can be addressed if Council accepts the petition. He stated that obviously there are others who may feel there is some other solution, but that this is the highest percentage of neighborhood agreement that has ever been achieved (with respect to utilities). Mayor Mertensotto stated that Council needs a ruling on whether, since council is being asked for a hearing, etc., it is anticipated that this would be an M.S. 429 project. He suggested that there could be an assessment hearing in advance of construction. Administrator Lawell informed Council that Council action this evening could be to accept the petition and determine its adequacy, and to accept the feasibility report and call for a feasibility hearing. Councilmember Anderson moved adoption of Resolution No. 90-67, "RESOLUTION ACCEPTING PETITION AND ENGINEER'S REPORT AND CALLING FOR HEARING ON PROPOSED SANITARY SEWER, WATER, AND STORM SEWER IMPROVEMENTS TO SERVE THE FURLONG Ayes: 3 Nays: 2 Blesener Cummins Page No. 2895 September 4, 1990 AREA AND SURROUNDING AREAS (IMPROVEMENT NO. 86, PROJECT NO. 4,11 the hearing to be held on October 4, 1990, and to make a finding that the petition is adequate in order to proceed under M.S. 429 without an extraordinary majority of the Council. Councilmember Hartmann seconded the motion. Councilmember Hartmann asked whether there was a stated purpose for including the Furlong Addition in the tax increment district when it was originally established. Treasurer Shaughnessy responded that in the original plan, the reason the Furlong area was included was because it was felt that the area would need a subsidy if it were ever to get sewer and water. Councilmember Cummins asked whether it was included because the property would eventually become part of a commercial area along T.H. 55. Mr. Shaughnessy responded that that was not planned but that the water loop was envisioned. Councilmember Cummins asked that the City Attorney be asked to give Council a memo that this is an appropriate use of the TIF funds, particularly because the owners of the property have said that the improvements will not increase their property values to the full extent of the assessment. He stated that he would like to make sure that the City is acting appropriately with respect to this use of TIF. He felt that Council would be asking the rest of the City to subsidize $15,000 per lot. Councilmember Hartmann felt that it is appropriate to use the TIF funds and commented that taxes from the Furlong area have been going into the tax increment district. Councilmember Anderson felt that it would be a waste of tax payers' money to ask for a legal opinion and that the only other information Council has heard is that it would cost $4 million to buy out the neighborhood. He pointed out the City already owns two lots in the neighborhood which could be sold and that Page No. 2898 September 4, 1990 the front property line, along with waiver of public hearing. Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 MENDOTA HEIGHTS ROAD Council acknowledged and briefly discussed a memo from the Public Works Director recommending preparation of a feasibility study for the proposed upgrading of Mendota Heights Road from Dodd Road to I -35 E to MSA standards. Councilmember Hartmann moved adoption of Resolution No. 90 -68, "RESOLUTION ORDERING PREPARATION OF FEASIBILITY REPORT FOR IMPROVEMENT OF MENDOTA HEIGHTS ROAD AND SANITARY SEWER, WATER AND STORM SEWER SERVICE TO ADJOINING AREAS." Councilmember Blesener seconded the motion. Ayes: 5 Nays: 0 CABLE TELEVISION Council acknowledged and discussed a memo NARROWCASTING from the City Administrator regarding Cable Television narrowcasting and a proposed .resolution. Administrator Lawell answered Council questions. Councilmember Anderson felt that to proceed with a survey of present customers with respect to the desire for narrowcasting would be a disservice and that if a decision on the issue is postponed the member cities will certainly lose more clout with respect to compensation negotiations. Councilmember Blesener agreed. Councilmember Cummins moved adoption of Resolution No. 90 -69, "A RESOLUTION ON NARROWCASTING REQUIREMENTS IN THE CABLE TELEVISION FRANCHISE ORDINANCE." Councilmember Hartmann seconded the motion. Ayes: 3 Nays: Anderson Blesener PERSONNEL Council acknowledged a memo and recommendation from the City Administrator with respect to comparable worth adjustments for three City employees. It was the consensus of Council to discuss the personnel pay matters at a closed session at Page No. 2899 September 4, 1990 7:00 P.M. on October 2nd and to direct the City Administrator to prepare an update on continued obligations under the pay equity laws. PARK IMPROVEMENTS Council acknowledged and discussed a park improvement update prepared by the City Administrator and a letter from GMH Asphalt requesting 20 additional working days to complete its park/trailway and Sibley Park contracts because of rain delays and other difficulties. Mayor Mertensotto stated that there has been an impact because of rain but certainly not half of the summer as was stated in the GMH letter. Responding to a question from Councilmember Blesener, Parks Project Manager Guy Kullander stated that the park portion of the GMH contract relates to the ballfields at Hagstrom King park and Victoria Highlands and some trail work. With respect to a question over seeding guarantees, Mr. Kullander stated that GMH must re-seed areas that do not take until the grass seed does take. Responding to a Council question, Public Works Director Danielson stated that two calendar weeks should be an adequate amount of time for the completion of the park/trail work. Mr. Kullander informed Council that the City would have to approve a timetable for completion of the contracts. Councilmember Blesener suggested that Council authorize a waiver for two weeks and then double the $200 per day penalty for non- completion if necessary. Administrator Lawell pointed out that the Sibley contract does not expire until November 1st and that staff recommends that the contractor be directed to concentrate all available resources to the completion of the Sibley improvements to insure that seeding of the soccer field occurs simultaneously with other field seeding this fall. He stated that staff is concerned with the progress that is being made at Sibley. Councilmember Anderson stated that it would be helpful for Council to know how many days the Page No. 2900 September 4, 1990 contractor was not working when the weather was good. He stated that he does not feel sorry for the contractor because of rain if they are not working on good days. Administrator Lawell stated that the contract was independent of rain days, on the thought that there would be absolutely no excuse for not completing the park /trail contracts by September 1. Councilmember Anderson stated that the only control the City has is the $200 per day penalty and that he would not support any extension of the contract under the circumstances outlined in the staff memo. Councilmember Blesener expressed the concern that the GMH people will get pulled from Sibley to work on the other contracts. Councilmember Anderson moved that Council deny the contract extension request for the park improvement and paved walkway contracts and ask the contractor to comply with the contract for completion of the work under the Sibley Park contract. Councilmember Hartmann seconded the motion. Ayes: 5 Nays: 0 Councilmember Cummins suggested that Council lay over the matter for two weeks and advise the contractor that Council will reconsider the request retroactively contingent on successful progress on all three contracts in the next two weeks. Mayor Mertensotto stated that he feels Council might lose another two weeks if that action were taken and that he would rather have staff indicate to the contractor that Council is concerned and denied the request but that this does not mean that Council would not reconsider if GMH has a change of heart in how it completes its contracts. SIBLEY COMFORT STATION The Council acknowledged a memo from the City Administrator regarding the Sibley comfort station. Parks Project Manager Guy Kullander reviewed estimated costs for the project if the City acts as the general contractor. He also reviewed the minor modifications made to the building plan. Page No. 2901 September 4, 1990 Mayor Mertensotto stated that the engineering time is an appropriate expense but felt that other City staff time should be absorbed by the general fund. Councilmember Anderson stated people who act as their own contractor never fully understand the time commitment involved and further stated that he is in favor of letting a contract for construction, using the modified plan, rather than having staff act as the contractor. Mr. Kullander stated that he did not originally know what the overlaps in the trades were but now sees where some were in conflict. He informed Council that the estimated construction cost is now below $50,000. He further stated that the role of the general contractor is basically to coordinate the sub-contractors, and that all of the subs who have submitted bids to him have done work in the City and are licensed. Block work and installation of the slab could begin any time. Council discussed the proposed changes in the plan. It was the consensus of Council that the wings on the building be eliminated. After discussion, Councilmember Blesener moved that the bids for construction of the Sibley Park comfort station be rejected and that staff be authorized to proceed with acquiring a building permit with the City acting as general contractor for construction of the comfort station. Councilmember Cummins seconded the motion. Ayes: 5 Nays: 0 COUNCIL COMMENTS Mayor Mertensotto directed that staff check on the status of weed cutting at the old fire station site. Councilmember Blesener asked that staff prepare a status report on park improvements for distribution to the Council, Park Commission and members of the referendum committee. Councilmember Cummins informed Council that he will not be present at the September 18th meeting. Page No. 2902 September 4, 1990 ADJOURN There being no further business to come before the Council, Councilmember Hartmann moved.that the meeting be adjourned. Councilmember Anderson seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:,28 o'clock P.M. Kathleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor