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1999-01-19 Council minutesPage No. 1 January 19, 1999 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, January 19, 1999 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota 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 Dwyer, Huber, Krebsbach and Schneeman. Mayor Mertensotto turned the chair over to Councilmember Huber. AGENDA ADOPTION Councilmember Dwyer moved adoption of the revised agenda for the meeting. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Councilmember Krebsbach moved approval of the minutes of the regular meeting held on January 5, 1999. Councilmember Dwyer seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Councilmember Schneeman moved approval of the consent calendar for the meeting, revised to remove item f, computer acquisition memo, from the agenda, along with authorization for execution of any necessary documents contained therein. a. Acknowledgement of the minutes of the December 9, 1998 Parks and Recreation Commission meeting. b. Acknowledgment of the Fire Department monthly report for December, 1998. c. Acknowledgment of the Treasurer's monthly report for December, 1998. d. Acknowledgment of a memo regarding a correction in the administration personal services budget detail sheet. Page No. 2 January 19, 1999 e. Approval to pay a claim of $475.00 to Ms. Marion Ryan for reimbursement for sewer back -up expenses at 684 No. Freeway Road. f. Approval of Authorization for the purchase of two replacement 1999 Ford Crown Victoria police cars from Superior Ford for a total cost of $41,216.00. g. Approval of the list of contractor licenses dated January 19, 1999 and attached hereto. h. Approval of the List of Claims dated January 19, 1999 and totaling $928,000.48. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 ENTRANCE SIGN Council acknowledged a memo from Public Works Director Danielson regarding final design review for the city entrance sign proposed to be constructed on Dodd Road at Mendota Heights Road. Mr. Bob Peota and Mr. Cliff Swenson, from Signia Sign, were present to review the proposed design. Mr. Swenson informed Council that the last time he came before Council he reviewed a design for a sign labeled option 1 which had a limestone base with a wall in the back and a wall in the front and landscaping. At that time Council directed design changes to save some money but yet keep the design similar, matching the City office sign. He then reviewed the proposed design changes, which included removing the back wall and keeping a short retaining wall in the front. The materials, including limestone veneered and stacked limestone retaining wail, are the same. He reviewed the planting scheme and the grading that will be required to create the bench that the sign base will sit on. He informed Council that the refinements have been made to the sign, and he is seeking approval of the design. Responding to a question from Councilmember Huber, Mr. Swenson stated that the primary change from the last artist's rendering is removal of the back wall. He showed Council and the audience a sample of the rock faced stone that is proposed to be used in the retaining wall and veneer. The stone is quarried in Minnesota, near Page No. 3 January 19, 1999 Mankato. The wall cap will be more finished to provide a contrast with the stone. Mayor Mertensotto asked the length of the 3 %Z foot tall retaining wall and whether it will stay in place over time. He pointed out that there will only be a warranty of one year after the project is done. Mr. Swenson responded that the wall is approximately 20 to 22 feet long. He informed Council that from an engineering standpoint it is not retaining a large load and will work fine. He stated that the product has been used successfully in other projects, in walls up to five feet tall, with no problems. The details that will be prepared will be similar to the detail he has used in the other projects. Responding to a question from Councilmember Krebsbach regarding landscaping, he stated that there will be conifers in the back, crab trees on the side and different plantings in front and in back of the sign to provide color throughout the year. Three burr oaks are also proposed to be added as a backdrop to the crabs. Councilmember Schneeman asked how durable the sign cabinet is. Mr. Peota responded that the cabinet is fabricated aluminum and will not rust over time. The paint finish is metal based and will weather like a car's finish. There is a ten year warranty on the finish before it will start to fade. The inside of the cabinet would have fluorescent illumination to light up the letters white at night with an opaque background that will be dark at night. Councilmember Dwyer stated that his notes were that the total cost of the sign project would be $50,000 and that there was a suggestion that if the city acts as general contractor there could be a 10% or 15% cost savings. He asked Mr. Peota to break down the costs. Mr. Peota reviewed a detailed list of estimated (budgeted) costs for each of the components of the proposed project. The total projected cost is $47,250, plus a contingency. Councilmember Dwyer stated that he has a concern about the city spending $50,.000 on a sign. He pointed out that he has expressed his concern in prior meetings about the policy decision and while it is a lovely design, he does not know that the city needs to spend $50,000 for a sign. He commented that even though TIF funding is available, there are many institutions in the city, such as the school district, that are having a tough time and he would have difficulty Page No. 4 January 19, 1999 spending this kind of money welcoming people to the city. He stated that he could perhaps support something less than half the projected cost, but could not support spending so much money. Councilmember Schneeman asked if Council envisions putting similar signs in the city. Councilmember Dwyer responded that Council has discussed putting a sign at the Mendota Bridge mirroring the Dodd/Mendota Heights Road sign. Mayor Mertensotto stated that there would probably be another two signs in the future. Councilmember Schneeman asked if the cost would be the same for future signs since the design is done. Mr. Peota responded that the costs would depend on the site - how much grading there would be and whether retaining walls would be needed. He explained that once the contract documents are done, there would only be a small fee to his firm for adjusting the sign to the other signs. Councilmember Krebsbach stated that part of the cost is really to create the setting for the sign. She felt Council could get cost for the actual sign down to half and that the minimum project that could be done would be the retaining wall, the sign and the base and some junipers around it. She pointed out that the plantings that are proposed are common to Mendota Heights. Mayor Mertensotto pointed out that Council has required that all buildings in the industrial area be finished on all sides and has spent a lot of time on landscaping. He stated that the city could probably install a wooden sign for $5,000 but if Council wishes to perpetuate the quality and image the city is trying to present, it will have to spend the money that is projected. He felt that some of the estimates are high and pointed out that there would be a savings if the city general contracts the project. Mr. Peota stated that his impression is that Council likes the sign. He stated that he is seeking approval for the final design and that the next step will be to get bid documents done, get some bids and know the hard numbers. He pointed out that the numbers that have been discussed are budget numbers and they may come down when the bids come in. Getting the bids won't cost anything and Council will Page No. 5 January 19, 1999 be able to look at what costs are associated with each of the components and can hone in on some areas where costs can be reduced. Councilmember Krebsbach stated that it would be helpful to know what part of the cost is for the retaining wall and the landscaping and what part is for the sign. $50,000 for a sign alone would be more than what the city would want, but the landscaping, etc., would finish off the corner and Council's decision could be that finishing the corner would be worth the additional $25,000 expense. If Council ultimately decides not to finish the site, there would still be a nice sign and a retaining wall. Councilmember Dwyer stated that while he was campaigning no one expressed need for a sign — they talked about helping out the school district, more parks, more trails, ballfield lights, street lights, etc. He wondered if there is support in the community for spending $50,000 or even $25,000 for a sign. Councilmember Huber stated that Council has been working on the design for a number of months and there is concern about the costs. He further stated that if it is Council's desire to go with a high quality sign, the one proposed is the one Council would go with. The question that remains is what level of investment Council wishes to make. He pointed out that the memo from the Public Works Director discusses preparing the bid documents and recommends approving another $750 for Sigma's preparation of the bid documents. He asked for Council's feeling about spending another $750 to prepare final bid documents without committing to going forward with the project. Councilmember Krebsbach felt that if there isn't support for that scale of project Council may not want to spend another $750. Councilmember Schneeman stated that she likes the design and loves the sign even though it is expensive. She asked if the city can do any of the construction work. Public Works Danielson responded that city staff does not have the expertise to do the work. Councilmember Dwyer pointed out that having Guy Kullander do the contracting would take him off his regular projects, so there is some question about how much money that would save. Page No. 6 January 19, 1999 Councilmember Huber stated there is the concept that this will not be the only sign. If Council is considering additional signs, the multiples go up fast. Councilmember Dwyer agreed, pointing out that instead of $50,000 the city would be spending $100,000 or $150,000 Mayor Mertensotto stated that Council does not have to commit to additional signs but has made the decision to go with an architect rather than going with a wood sign. He pointed out that as one travels around the state and country, when landscaping goes with a nice sign, it shows the level of care that goes into the city. He spoke about the expenses projected for extending electrical and the stone retaining wall. He stated that timbers could be used instead of stone for the retaining wall to reduce costs. He felt that the cost will be less than projected. If nothing is done it will remain a vacant two acre site. He pointed out that the city requires extensive landscaping in industrial projects and would not be paying homage to what it has been preaching to others for so long. Councilmember Krebsbach stated that her feeling is that if Council authorizes the additional $750, it would be committing tonight to supporting the concept and design and would pare down the costs after they are known. She pointed out that there is significant TIF available and other cities are investing more in boulevards and landscaping than Mendota Heights is. Mendota Heights is transitioning from rustic to more of a finished look, and that end of the city connects the site to the schools which have signage similar to the industrial area. Even though it is expensive, half of the cost is for the sign and the other half is for finishing the site. She supported both getting bids and doing the sign. Councilmember Dwyer stated that he would support $750 more for additional work by Signia that would tell Council whether this is closer to a $35,000 project. Councilmember Schneeman stated that she thinks it is necessary to spend another $750 to find out because Council has already made an investment in this project. Councilmember Huber stated that he has reservations, even if Council gets the cost down to $35,000 because there are still other signs to do. He stated that he will go along with additional $750 on the Signia contract but that he is not sure he could commit to $35,000 for the sign project if it can be reduced to that cost. Page No. 7 January 19, 1999 Councilmember Dwyer moved to authorize an amendment to the contract with Signia to allow an additional $750 for preparation of contract documents for bidding, to authorize Guy Kullander to act as general contractor and to authorize solicitation of bids with the understanding that ultimate approval of the project is reserved to a later date. Councilmember Schneeman seconded the motion. Ayes: 5 Nays: 0 FRIENDLY HILLS MIDDLE Council acknowledged a memo from Administrative Assistant SCHOOL PLAYGROUND Hollister regarding a request for funding for playground equipment EQUIPMENT for the Friendly Hills Middle School. Ms. Linda Nides, and Ms. Beth Sevenich, representing the Friendly Hills Middle School PTA, and Ms. Liz Wynne, Principal of the middle school, were present for the discussion. Ms. Nides informed Council that she and Ms. Sevenich are spearheading a fundraising drive to build a middle school playground. She explained that $24,000 has been raised in four months with the intent to build a playground that is geared towards fifth through eighth graders. Total funding needed is $40,000 and $24,000 has been raised . She stated that the Parks and Recreation Commission has recommended that the city contribute $5,000 from a special fund, which matches the $5,000 commitment from the school district. The project is proposed in three phases. The parks commission requested that the $5,000 contribution, if it is approved, go to phase one, which is traditional playground equipment costing $20,000. Of the funding already raised, $15,000 is committed to Phase 1 and if the Council approves the Parks and Recreation Commission commitment, Phase 1 will be fully funded and will be installed in the coming spring. Phase 2 is seating and accessories — park benches, tables with seating, trash receptacles, and bike racks, etc. Phase 3 is Project Adventure, a team building rope challenge course. She stated that the intent is that the playground be open to the public. The city has set a precedent by supporting playground equipment at Mendota School. Responding to a question from Councilmember Schneeman, Ms. Nides stated that the $24,000 raised to date does not include the contribution recommended by the Parks Commission. She stated that the Parks and Recreation Commission has given a commitment to $5,000 and the PTA would also like to request an additional $5,000 from the City Council budget. Page No. 8 January 19, 1999 Councilmember Huber stated the Parks and Recreation Commission can only make recommendations to Council and does not have the authority to make expenditures. He further stated that when there are commission recommendations regarding park equipment and park land, Council asks the commission to recommend a funding source. The commission is recommending that funding for this proposal be from the Special Park Fund. Responding to a question from Mayor Mertensotto, Ms. Nides informed Council that Project Adventure would be used for school and community education programs and teachers would have to go through a training course and some of the rope courses would have to be taken down if trained supervisors were not going to be present. One of the Park Commission contingencies was that the contribution go just to Phase 1. Principal Wynne stated that when the group looked at putting together a playground, the group looked at the ages of the children in the school and the idea was to structure it so that the playground would not be competing with the neighborhood park equipment. Phase 1 is more of a fitness area as opposed to the traditional playground versus swings and saws, etc. Phase 2 is a social area, including picnic tables, where students can sit and socialize. Phase 3 is Project Adventure and staff members are already trained to supervise its use. The school is looking at using it in its physical education program. She stated that it is also excellent for children who are at risk and also for adults. In terms of concerns about students being on it unsupervised, there are several schools and camps that have the equipment. The apparatus is designed so parts can be removed, and signs will be posted as well. Historically, liability is very low. Mayor Mertensotto asked if community education will be charging students for Project Adventure. Ms. Wynne stated that although it is not something the group has yet discussed, since there are school people trained and qualified to supervise Project Adventure, she would like to provide the opportunity for use of the equipment through community education and also for organizations and small groups. Councilmember Krebsbach asked if the Project Adventure apparatus is used anywhere other than in a camp environment. Page No. 9 January 19, 1999 Ms. Wynne responded that the apparatus is set up and used successfully at the Eden Valley High School. She informed Council that the apparatus will be located up on the hill in the woods to the north of the bus area. Councilmember Schneeman asked if the apparatus would be fenced in. She stated that the apparatus would have to be supervised if neighborhood children would be using them, especially in the summertime. Ms. Wynne responded that a lot of the equipment is designed with detachable pieces. None of the area will not be fenced but there will be signage. At this point the school does not see a need to fence the area. Councilmember Schneeman stated that she is familiar with the truss ball component and kids could fall off it. Ms. Wynne responded that the school would have to carefully monitor the area initially to see if there are any problems. Councilmember Dwyer asked what phase the second $5,000 would be dedicated if the city contributes $5,000 from the general fund. Ms. Nides responded that $3,000 is still needed for Phase 2 and it might also be decided that pieces should be added to the traditional playground. Responding to a question from Councilmember Schneeman, Ms. Nides stated that the fundraisers went to the Mendota Elementary PTA and they have given a donation but they have not gone to the other elementary schools as yet. The City of Eagan has not been approached as yet. Mayor Mertensotto noted that Council has been informed that $15,000 in donations have been committed to Phase 1 and $9,000 has been committed to Phase 3 but nothing has been committed to Phase 2. Ms. Nides responded that the $5,000 from the school district has been dedicated to Phase 3 because more funds were committed by the business community to Phase I. The school district put no restrictions on its donation. Page No. 10 January 19, 1999 Ms Wynne stated that the experience has been that, in terms of some of the funds that have been collected, people feel more comfortable with donating to Phases 1 and 2 so it was the decision to apply the school district contribution to Phase 3. Mayor Mertensotto stated that his concern is that the PTA has a program going and there is a legitimate basis for it because the city has lots of equipment in its parks for the elementary aged children but does not have equipment in the parks for older children. He expressed concern about the letter from the PTA to the school district attorney regarding public access.. He stated that if the city makes a contribution, Council's intent is that the city residents will have access. He asked if the residents who participate in community education have to pay a fee also. He noted that Ms. Wynne has said that use of Phase 3 will require supervision by trained individuals and a certain amount of the equipment can be removed. He pointed out that since the school district will own the equipment, it will bear any liability. He stated that if the city is going to invest money, he does not want the investment to be based on a statement that this is planned and that is planned. He asked how much money is needed to complete the total project. Ms. Nides responded that with the $5,000 contribution from the city, $12,000 is still needed to complete the project. Ms. Wynne stated that if there were additional funds, there would be more money to apply towards Phase 3. No more money can be added to Phase 1 because there is not sufficient space for additional equipment. Responding to a question from Mayor Mertensotto, she stated that if there is a commitment for the $16,000 that is still needed, all three phases will be completed. Mayor Mertensotto asked how much of the remaining un fielded $16,000 the PTA thinks it can raise. Ms. Nides responded that she believes the larger donations have been received. The PTA applied for a grant from Dakota County but it fell through. She felt that the PTA can possibly fundraise another $2,000 this year and will continue the drive next year. Mayor Mertensotto asked if the PTA is asking for $5,000 from the Special Park Fund and another $10,000 from the city. Ms. Nides responded that $24,000 has been collected, so $16,000 more is needed. Page No. 11 January 19, 1999 Mayor Mertensotto asked, if the city contributes an additional $10,000 in addition to $5,000 from the Special Park Fund, if the school board will commit themselves to say that it will take no action to prevent community use of the property. Ms. Wynne responded that she would take that matter to the school board. Mayor Mertensotto stated that there is justification for the commitment, because the city spent about $850,000 for the Henry Sibley High School athletic complex and the response he got one time about having additional cooperation in the use of that facility was that the city signed a bad contract. He stated that if Council decides to donate money to improving the Friendly Hills Middle School playground facilities, they have to be open for public use outside of school hours without any prohibition on public use. He recommended contributing the $5,000 and another $10,000 but the $10,000 would be conditioned upon the school board making that commitment. Councilmember Huber stated that his concern about guaranteeing access is that the city would be committing money to the portion of the project that requires supervision. He did not know whether the current school board can commit future staffing. Mayor Mertensotto responded that the city could commit the funds to Phases 1 and 2 with the condition that they be open to the public when they are not being used for school activities. Ms. Nides stated that the school district has guaranteed taking on the liability and future maintenance. Councilmember Huber stated that he does not know that the city needs a guarantee to access to the phases 1 and 2 facilities because they will be open to the people passing by. Ms. Nides stated that she understands the Mayor's concerns about past commitments and what the PTA wants is a playground for the students and something that is open to the community. She stated that a contingency could be placed on the contribution and she can take that matter to the school board. Councilmember Dwyer suggested approving the $5,000 from the Special Park Fund to complete Phase 1 as recommended and donate Page No. 12 January 19, 1999 $3,000 from the General Fund to be dedicated to completion of Phase 2 and let Project Adventure stand on its on feet. Councilmember Schneeman stated that the $5,000 from the school district is only for Phase 3. Ms. Nides stated that the board did not dedicate its contribution to any phase Responding to a question from Councilmember Schneeman about the Heritage Middle School, she stated that this is a Friendly Hills PTA sponsored fund raiser in Mendota Heights for the Friendly Hills Middle School and Mendota Heights residents. Ms. Wynne stated that the district will treat the facility as it does the ball fields, tennis courts, etc. which are open to the public when not being used by the schools. Councilmember Krebsbach stated that Phase 3 does depend on staffing and asked if it is anticipated that there will always be available. Ms. Wynne stated that she feels it will because the phy ed teachers are trained to supervise Project Adventure and there will always be phy ed at the school Through the school, programs can be offered for family type events and also through community education where the school's instructors will instruct. Ms. Nides stated that the school could work with the city as it does now on the golf program, and other recreation programs. Ms. Wynne stated that if the school is were fortunate enough to have this opportunity she will seek out opportunities to maximize use of the apparatus. She stated that the school would be very receptive to organizations with the only concern that whoever is supervising is qualified to do it. Mayor Mertensotto stated that if the city were to contribute $15,000 Council would want the assurance that all three phases would be completed and would also need assurance that the playground would be open to the community. Councilmember Krebsbach stated that should another organization within the city develop trained staffing, they would then be able to 1 use the Phase 3 equipment. That is the only way there would be access to Phase 3. Page No. 13 January 19, 1999 Responding to a question about charges for use of Project Adventure, Ms. Nides stated that if, for example, another middle school or other organization wanted to use it, there would be some charge for the staffing but not for the use of the apparatus. The charge would be to compensate the instructor for coming in after hours. Councilmember Huber restated the various proposals. Mayor Mertensotto stated that he would like to see the project completed because the city does not have a park that has the proposed types of facilities. There was discussion over potential liability, and it was noted that Council can require that it be a named insured on the school's insurance policy. Councilmember Huber stated that he has a problem with Phase 3 because he does not know how access can be guaranteed and there is no guarantee that it will always be staffed. He had no question about funding the completion of phases one and two. Councilmember Dwyer stated that the school's stated goals to help children in crises through the Phase 3 portion are good, that is not a goal that city's would ordinarily foster. Councilmember Krebsbach suggested donating $5,000 each to Phase 1 and 2. Mayor Mertensotto agreed, stating that funds already committed could be transferred to Phase 3. Councilmember Dwyer moved that the City Council accept the recommendation of the Parks and Recreation Commission and dedicate $5,000 to Phase 1 and that council donate $3,000 from the general fund contingency to the completion of Phase 2 with the understanding that those phases be accessible to the general public outside of regular school hours. Councilmember Schneeman seconded the motion. Mayor Mertensotto expressed concern unless the school board assents to accessibility to the general public, access to the public is not guaranteed. Page No. 14 January 19, 1999 Responding to a question about whether there is anything in the design that would restrict someone from using Phase 1 and 2 equipment, Ms. Wynne stated that the Phase 1 and 2 will not be fenced in. They will be placed in the area adjacent to the basketball courts in a wide open area and will have access from the bike trail and other accesses. The only time there would be students in the summer would be if summer school is held, and access to the playgrounds would be available. She stated that the project would be for the kids, and for the community. She could think of no way it would not be accessible to the general public. Councilmember Huber stated that he shares the concerns Mayor Mertensotto has about what happened at Sibley but this (Phases 1 and 2) is not the kind of equipment where people will schedule use of it. It is a very unstructured use type of playground. Councilmember Krebsbach stated that keeping the statement in the motion about access is important, so that any letter to the school board would contain the text of the motion and the funds would be contingent upon access to the public. Mayor Mertensotto pointed out that if someone gets hurt in the area, the school district could say that it cannot be used by the public and call the police department to keep people out. He stated that the city could donate the $5,000 from the Special Park Fund for Phase 1 and there should be a resolution from the school board that if the city contributes the extra money the board will commit to not imposing any rule or regulation that would prohibit public access and use of the facilities outside of school hours. Councilmember Krebsbach stated that she would rather designate the $8,000 and send a copy of the motion and release of the funds would be based on the school district responding that they can accept the conditions within the motion. Councilmember Dwyer restated the motion as follows: that the city donate $8,000 towards Phase 1 and Phase 2 with the understanding that it is tendered to the school district with the condition that the school board, by motion at a school board meeting, agrees that phases 1 and 2 will be open and accessible and with the understanding that the donation will not be made until the city receives the school board resolution. �. Ayes:5 Nays: 0 Page No. 15 January 19, 1999 RMF CONTRACT Council acknowledged a memo from Public Works Director Danielson regarding a proposed contract for services for preparation of a concept plan for redevelopment of the Freeway Road area. Council also acknowledged a proposal for Master Plan Services from Mr. Ross Fefercorn, from RMF Enterprises. Mr. Fefercorn was present for the discussion. Mr. Fefercorn referred to his letter to the city dated November 25, 1998 which summarizes what he proposes to do with the site. He briefly reviewed the credentials of the group he will be working with, which include Nelson Tremain Partnership, A Studio and RMF Entities. He explained that Nelson Tremain and A Studio will help him make a recommendation on what should be done with the site. The proposal for services includes an outline with three major areas: collection and gathering of information about the city and the site (Phase I); taking that information and developing two conceptual master plan alternates for presentation to the City Council and city staff (Phase II); and, taking to a greater level of definition one of those two plans. He stated that this could be a $30 to $35 million development for the city, so the city should easily be able to recapture TIF from tax revenues. He explained that he would put together a bound report putting together everything his group has done in the process, and the city would have that documentation as the project moves forward to reality. Councilmember Huber asked if Mr. Fefercorn has any idea of approximately how long it will take to complete the three phases. Mr. Fefercorn responded that he would hope it would be a four to six month process and that it will be no greater than six months. Councilmember Huber stated that if Mr. Fefercorn would like to get through all thee phases by the end of summer, he will need some commitment from Council to keep that schedule. Councilmember Krebsbach asked where there are examples of the work that Mr. Fefercorn has led that Council could see. Mr. Fefercorn responded that he included a resume of his work in the original proposal. He informed Council that over the past several years he has done over a dozen housing developments and probably close to 1,000 units of market rate housing. Basically over the years he has built separate housing developments and separate retail developments and the city's project envisions wedding those uses. Page No. 16 January 19, 1999 Councilmember Krebsbach asked is there a development Mr. Fefercorn knows of that might be what he is envisioning. Mr. Fefercorn responded that most urban cities have something like what he is referring to, such as the Uptown area of Minneapolis which has a mix of housing, retail and services, which has all of the components. Also there is a site in Kansas City. In Minnetonka, CSM Corporation and Rottlund Homes are working on a project, but that is somewhat more commercial. Mayor Mertensotto stated that when Council first met with Mr. Fefercorn the discussion was to complete the three phases in four to six months because Council knew an extension on the Comprehensive Plan amendment deadline would be needed and Council wants the Freeway Road area addressed in the amendment. He stated that when the name Nelson Tremain first came up the city got public comments that Council was looking at affordable housing for the project site and that is not true. There will be an opportunity for community input in Phase II. Council is hiring Mr. Fefercorn to develop an overall development plan for what would be best for the site. He asked what whether reimbursable expenses could be limited to 10% of the contract. Mr. Fefercorn responded that he will let Council know about reimbursable expenses as they are incurred and he could set a limit of ten. percent. Reimbursables would be printing, reproduction costs etc. Councilmember Dwyer stated that the proposed service contract fee is $26,000 and he does not know if that is reasonable or not but what Mr. Fefercorn is planning to undertake seems like a lot of work for the price. Councilmember Schneeman stated that this is probably the most exciting thing that has happened in Mendota Heights for a long time People have been waiting for something to be done, and when she was campaigning the number one question that was asked of her was about downtown Mendota Heights. Mr. Fefercorn responded that it needs to be an interesting place for people to gather. City Attorney Hart stated that as a contract interpretation matter he sees that there is a not to exceed figure and a termination clause on 30 day notice and billing on a monthly basis, but it must be pro rated Page No. 17 January 19, 1999 based on work completed on a certain percentage of the total project. If there is a huge amount of work done in the first phase, the city would not want to be billed on that basis but rather on the percentage of the total project that has been completed. Unless there is a revision, the majority of the work could be done in the first two months and the city could have paid for it and have nothing on paper. He recommended that there be a statement in the contract that the city will be billed on a monthly basis based on the percentage of the project that has been completed or some language that would make payment on an equitable pro ration basis not to exceed time and materials. Mr. Fefercom responded that some of the work they will be doing will be behind the scene and to the extent that there is a thirty day notice he will have a point of stopping the work being done and billing for the work done an a progressive basis, so revised language should be acceptable. Mayor Mertensotto stated that the contract also has to be amended to include the cap on reimbursable expenses. Mr. Fefercorn informed Council that Phase I will go by before he has any meetings with Council but his group will be meeting with city staff. Mayor Mertensotto asked that the revised contract include language relating to what the anticipated percentage of the total cost will be for each of the phases. Councilmember Schneeman moved to authorize the Mayor to execute the Proposal for Master Plan Services with RMF Enterprises, amended to include a 10% cap on reimbursable expenses and inclusion of language recommended by the City Attorney with respect to equitable pro ration of billing. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 CDBG REALLOCATION Council acknowledged a memo from Administrator Batchelder regarding reallocation of funds from the 1996 Senior Housing site acquisition along with letters from Mr. Lee Smith, Dakota County HRA, and Mary's Shelter. It was noted that $8,343.62 in 1996 CDBG funding that had been allocated to senior housing site acquisition was not needed for the project and can be reallocated to another use. Page No. 18 January 19, 1999 Mayor Mertensotto stated that Mary's Shelter has been before Council for CDBG funding but they were not specific as to their administrative costs and their budget program was open ended. He felt that the $8,300 should be added to the city's commitment to facilitate low income housing repairs including hook -ups of utilities on a loan basis. Councilmember Dwyer stated that Council has the choices of rolling the $8,300 into the city's housing rehabilitation loan program which has $45,000 in funding from the 1999 CDBG grant or dedicating that $8,300 to Mary's Shelter in response to its request for funding assistance. He recommended dedicating the money to Mary's Shelter, which he feels is a very worthy cause. Councilmember Huber pointed out that the third option is to dedicate the funding to assist four home owners in the Furlong area with the cost of extending water service to their homes. Councilmember Schneeman stated that she would like to have someone from Mary's Shelter come before Council. She stated that over the past several weeks in the news, there have been many cases of families who needed shelter and ended up dying because they did not have it. Mendota Heights is just like every other community and has residents who need the transitional housing that Mary's Shelter provides. She pointed out that other Dakota County cities are helping Mary's Shelter and felt that Mendota Heights should also help them. Responding to a question from Councilmember Schneeman about whether there are other transitional housing providers in Dakota County for women and children, Police Chief Johnson stated that the Robert B. Lewis House also provides shelter for battered women and children. Mayor Mertensotto responded that Council should see a budget showing where the money would go before making a decision to donate funds to them. He noted that many organizations have come before Council for funding and use of HRA funding must be a priority situation and the city must know what the money would go for. Councilmember Dwyer stated that the HRA CDBG funds are related to housing needs and the residents at Mary's Shelter come from Mendota Heights as well as from other Dakota County cities. Page No. 19 January 19, 1999 Responding to a question from Councilmember Huber, Administrator Batchelder stated that there is no current information on where the city stands on use of the CDBG housing rehabilitation loan money. He informed Council that the 1998 allocation became available in July and in December there were a couple of applications pending. The 1999 allocation of $45,000 was dedicated into low income housing rehabilitation and from time to time money revolves back into the program from prior loans. Councilmember Krebsbach stated that she would like to get a better handle on available funding. She would like to get information on the larger picture on shelters in Dakota County. Also she stated that she would like to know if the city's HRA funding has gone to people whose needs were hidden and the city was able to help them through these funds, which would be a good use for the money. Mayor Mertensotto responded that the prior request from Mary's Shelter was for capital improvements for a building but Council has had no subsequent contact from them. He pointed out that the city has been building a reserve fund in its housing rehabilitation loan program because as loans are paid back or the property is sold, the money goes back into the rehab fund. Councilmember Schneeman asked if the city knows that people in the Furlong area will qualify for funding assistance for water extension. Councilmember Huber stated that more information is needed. Information is needed on: how much the Furlong water extensions might cost; an update on home loan rehabilitation requests; and, staff could get information on what the current status is with Mary's Shelter and perhaps someone from Dakota County could speak about shelter services in the county. Responding to a question from Councilmember Huber, Administrator Batchelder responded that the $8300 is money left over from the senior housing project and until Council reallocates the money he assumes the county will hold it for us Councilmember Huber stated that when staff gets to the point where it can make a presentation on the water extensions in Furlong, that would be a trigger to the City Administrator that Council would like to see more information on shelter services either specifically for Page No. 20 January 19, 1999 Mary's Shelter or all shelter services in Dakota County and a decision can be made at that time on where to spend the money. BOURN PROPERTY Council acknowledged a memo from Treasurer Shaughnessy regarding acquisition of the Bourn property at 1181 Bourn Lane, along with a copy of a life estate agreement that was executed with the prior owner of the property adjacent to the Fire Station. Mayor Mertensotto stated that Council needs more demographics, such as the age of the property owner. He also asked what would happen if the city had a development proposal for the area while the life estate is in effect — could there be a clause that the agreement would terminate in six months if there is a development proposal. Treasurer Shaughnessy responded that he just provided a copy of the agreement with the owner of the property adjacent to the fire hall as a sample to be used in this case. In this instance, he did not feel that the life estate would run as long for various reasons. He further stated that he thinks it is less likely that the city will acquire one of the remaining Bourn Drive properties. In order to redevelop, the city must get an agreement with Resurrection so that there would be a large enough parcel to develop. City Attorney Hart stated that a buy -out provision on the life estate would be advisable, and it would be advisable to establish the value of an appropriate buy -out amount up front through a written understanding. Mayor Mertensotto stated that there should be some nominal payment to terminate the agreement after six months if there is a valid redevelopment proposal. City Attorney Hart and Treasurer Shaughnessy were directed to revise the proposed agreement life estate agreement based on the adjustments as discussed this evening. COUNCIL COMMENTS Mayor Mertensotto stated that he received a call from Mr. Seymour at 1080 Twin Circle who stated that every year he complains that he has his driveway plowed and sometime during the day the city plows the cul de sac and fills up the end of his driveway. Public Works Director Danielson responded that cul de sacs are a real problem especially if there are a lot of driveways and there is no place to put the snow. The main plow comes through and then the pick -up comes through later. He stated that he will look into the Page No. 21 January 19, 1999 matter with the Public Works Supervisor to see if they can come up with a solution. Responding to a question from Councilmember Huber regarding the status of the ski trail, Assistant Hollister stated that he believes that because there was no snow soon enough for the high school ski team, they are so far into their season now that they have abandoned the concept of using Par 3. Also the snowmobile they had wished to purchase does not work and will not be purchased. Mayor Mertensotto directed Assistant Hollister to give Council a memo on the status of the ski trail and snowmobile purchase issue and a recommendation that Council rescind the funds that were allocated from the General Fund for the purchase of the snowmobile. ADJOURN There being no further business to come before Council, Councilmember Schneeman moved that the meeting be adjourned to the Comprehensive Plan workshop that was scheduled for this evening, with subsequent adjournment to 7:00 p.m. on Tuesday, February 2 for closed session discussion on litigation. Councilmember Krebsbach seconded the motion. Ayes: 5 Nays: 0 TIME OF ADJOURNMENT: 9:25 p.m. K thleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor