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1989-10-03 Council minutesPage No. 2690 October 3, 1989 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, October 3, 1989 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 Blesener, Cummins, and Hartmann. AGENDA ADOPTION Ayes: 4 Nays: 0 APPROVAL OF MINUTES Ayes: 4 Nays: 0 CONSENT CALENDAR Councilmember Hartmann moved adoption of the revised agenda for the meeting, as amended to move the 1989 Referendum Construction from item 7m to item 7a, to delete item 7c, request for traffic control at Cheyenne and Pontiac, and to move item 51, preliminary information on tax laws, from the consent calendar to section 6. Councilmember Cummins seconded the motion. Councilmember Blesener moved approval of the minutes of the September 19th meeting with correction. Councilmember Hartmann seconded the motion. Councilmember Hartmann 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 30th and September 12th Park and Recreation Commission meetings. b. Acknowledgment of the Building Activity Report for September. c. Adoption of Resolution No. 89-113, "RESOLUTION APPROVING THE FINAL PLAT FOR PARK PLACE 2ND ADDITION," conditioned upon receipt of the required park contribution prior to execution of the plat by the Mayor. Page No. 2691 October 3, 1989 d. Authorization for American National Bank to remit the Progress Billing payment dated September 21st in the amount of $2,635.07 to the Soo Line Railroad for the Northland Drive railroad crossing. e. Adoption of Resolution No. 89-114, "RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT FOR IMPROVEMENT NO. 86, PROJECT NO. 1," authorizing payment of $11,275.71 to F.M. Frattalone Excavating and Grading, Inc., for Mendota Heights Road/Huber Drive improvements. f. Acknowledgment of for hydrant flags authorization for purchase order to Equipment Company of $6,600. quotations received and bolts and issuance of a Davies Water for their low quote g. Authorization for staff to solicit bids for the installation of hockey rink fencing at Marie Park. h. Acknowledgment of a letter from the Board of Water Commissioners regarding water connection repair costs at 8 Dorset Road (Dan Johnson residence), along with direction to staff to ask St. Paul Water both to respond to the question asked by Council about mitigation of costs and to consider establishing a policy of giving homeowners the option of either repairing unguaranteed services or replacement with guaranteed services. i. Acknowledgment of a letter of commendation for Code Enforcement Officer Dick Gill from Ms. Lucille Manthey. • Acknowledgment of a letter from Mn/DOT District Engineer William Crawford regarding proposed improvements on Highway 13. k. Acknowledgment of a notice from the Metropolitan Council of a regional breakfast meeting for local officials in Dakota County. Ayes: 4 Nays: 0 TAX LAW CHANGES Page No. 2692 October 3, 1989 1. Acknowledgment of a letter from the West St. Paul City Engineer and excerpt from the September 25, 1989 West St. Paul City Council minutes approving the City's request to connect the Ashley Lane watermain and a portion of the Dorset Road watermain to West St. Paul's High Water Service Area. Acknowledgment of a memo from the Acting City Administrator regarding the City Administrator selection process. n. Approval of the list of contractor licenses dated October 3, 1989 and attached hereto. o. Approval of the list of claims dated October 3, 1989 and totalling $58,877.64. p. Approval of the final payment of $4,400 to Doody Mechanical for City Hall mechanical contract. Councilmember Cummins seconded the motion. Council acknowledged a memo from Treasurer Shaughnessy regarding preliminary information on the results of the Legislature's special session on tax laws. Mr. Shaughnessy informed Council that the tax law signed by the Governor as the result of the special session takes away all of the City's Local Government Aid of $232,750. The City residents will lose $153,000 in homestead credit. In order to fund the 1990 proposed budget, the levy will have to be increased $233,000 to $234,000, which is an 11% increase in the levy. He informed Council that because of the legislation, City taxpayers will realize a 17% increase in their property taxes. He stated that in theory there is supposed to be additional aid going to the County and School District which should result in reduction of their levies, but he does not have a final copy of the legislation to confirm that information. REFERENDUM CONSTRUC- TION SCHEDULE Page No. 2693 October 3, 1989 Treasurer Shaughnessy informed Council that the state will certify the levy to the City on October 23rd. He suggested that the City be prepared to certify the levy the first meeting in November. The truth in taxation hearing can be held any time after November 15th. Councilmember Cummins stated that Council had proposed an 11% total increase in the levy as of the budget workshop. He asked how large of a levy increase must Council levy now to keep the budget at the same level as discussed at the budget workshop. Mr. Shaughnessy responded that the loss of Local Government Aid will mean an approximate 10% increase. He stated that the City's valuation grew 10.5% and that if the LGA had remained at the budgeted level there would have been no increase in levy percentage. To fund the budget at the level proposed, the levy will have to be increased by about 11% to compensate for the lost aid. Mayor Mertensotto suggested that perhaps Council should again review the proposed budget with respect to potential cuts. Councilmember Cummins suggested that Council direct staff to prepare a list of recommended cuts reflecting reductions of 3 %, 5% and 8% from what was proposed. He felt that staff should tell Council where they would recommend changes so that Council has laid out for it what the options are. He stated that Council proposed to adopt what it considered to be a fiscally responsible budget but the legislature has elected to penalize Mendota Heights and other suburban metropolitan communities. Councilmember Blesener agreed with Councilmember Cummins' suggestion. Mr. Shaughnessy informed Council that staff should have more accurate information on the effect of the legislation, including what the pass through of increases in aids will be to the County and School District by the next meeting. Council acknowledged and discussed a report from Acting Administrator Danielson regarding construction of park and trail Page No. 2694 October 3, 1989 improvements authorized by the Park Referendum of May 15th. Park Commission Chair John Huber and Barry Warner, from Barton-Aschman Associates were present for the discussion. Mr. Huber informed Council that the Commission has received a proposal from Barton-Aschman to work on the design phase of the ballfield and neighborhood park improvements. City staff will handle the design of the trails. He stated that the City does not hold title to any of the land on which the fields are proposed to be developed. For this reason, the Commission asked Mr. Warner to break the Barton-Aschman contract into multiple phases so that the City can order work done on the various park sites as they become available or delete them if they do not become available. Mr. Huber informed Council that staff and Mr. Warner have put together schedules to allow as much construction as possible in 1990. He stated that given the proposed timeframes and Barton-Aschman's history with the City, the Commission recommends that the City enter into an agreement with Barton-Aschman rather than taking the time necessary to request and consider proposals from other consultants. Mayor Mertensotto felt that the Barton- Aschman proposal to work on a fixed fee basis with a cap is a good one and suggested that the City Attorney draft a memo of understanding so that Council can initiate when the consultant is to proceed on the various projects. He informed Mr. Warner that Council would not want him to incur any time on a phase until Council authorizes him to proceed. Mr. Warner responded that his firm would desire a notice to proceed on each of the different aspects and felt that the contract should definitely be structured that way. City Attorney Hart felt that a budget target for each phase would also be important as well as when to proceed. Councilmember Blesener pointed out that existing neighborhood parks have no dollar TRAFFIC CONTROL, DOUGLAS ROAD AREA Page No. 2695 October 3, 1989 She stated that there must be consistency in the quality and type of apparatus in all parks, whether they are new or existing. Mr. Warner informed Council that his firm will do the play equipment for all new parks and staff will address existing parks based on precedent set in a recently developed neighborhood park. Councilmember Cummins pointed out that Council is committed to providing first rate facilities in the existing parks. Mr. Huber stated that the Park Commission shares that commitment. Councilmember Cummins pointed out that the contract with Barton-Aschman will exceed $80,000 and asked whether the City is required to take bids. City Attorney Hart responded that bids are not required. City Attorney Hart was directed to draft a memo of agreement. Council acknowledged a report from Public Works Director Danielson, regarding a request from Ms. Alice Berquist for reconsideration of Council action taken in July to direct staff to prepare an ordinance amendment to provide for yield signs on Douglas Road and Douglas Court. Mrs. Berquist and five other area residents were present for the discussion. Mrs. Berquist felt that the situations surrounding the request are not typical and that the yield sign recommendation is not responsive at all in terms of concerns of vehicle speeds and sight obstructions. She informed Council that the neighborhood feels that the only solution is for four way stop signs. She stated that if Council refuses to authorize the signs, at a minimum blind approach and warning children signs should be allowed. Mayor Mertensotto informed the residents that Council has adopted a policy which establishes "warrants" for signs, which is similar to the approach taken by state and county agencies. All requests for traffic signs are referred to the police and engineering departments, who apply the Page No. 2696 October 3, 1989 signs are referred to the police and engineering departments, who apply the adopted criteria to the requests. He pointed out that both departments have recommended that a four way stop intersection is not warranted. He suggested that Mrs. Berquist communicate directly with Chief Delmont and if a speed problem exists the police should use radar, both to get statistical information on average speeds and to issue citations. Council directed that Chief Delmont contact Mrs. Berquist to discuss the neighborhood concerns and that the Public Works Department clear any obstructions on public right of way at the blind intersection as well as notifying the property owners at the intersection of the ordinance requirement for 30 feet of clearance at intersections. CASE NO. 89-35, PAUL Mr. Richard Paul, 940 Wagon Wheel Trail, was present to request approval of his application for a wetlands permit to allow construction of a deck on his home 35 feet from Rogers Lake. Councilmember Cummins asked whether there are any other structures in the area as close to the lake as the 35 feet proposed. Mr. Paul responded that he has not gone around the shoreline to confirm that there are. Councilmember Cummins pointed out that this is a case where the house, garage and the deck which is proposed to be replaced are already infringing on the wetlands and constitute a non-conforming use. He expressed concern over the magnitude of the encroachment. He felt that while an error was made when the building permit was issued for the structures it might be a bad precedent for Council to allow a non- conforming use to be reconstructed. After discussion, Councilmember Blesener moved to waive the public hearing requirement and approve a wetlands permit Ayes: 4 Nays: 0 MENDAKOTA DRIVE Ayes: 4 Nays: 0 FIRE DEPARTMENT Ayes: 4 Nays: 0 Page No. 2697 October 3, 1989 to allow construction of a deck 35 feet from Rogers Lake at 940 Wagon Wheel Trail. Councilmember Hartmann seconded the motion. Council acknowledged a request for a stop sign on Mendakota Drive at Mendakota Court, along with a report and recommendation from Police Chief Delmont that the sign be authorized. Councilmember Cummins moved to direct staff to prepare a draft ordinance amendment to authorize the placement of a stop sign on Mendakota Drive at its intersection with Mendakota Court. Councilmember Hartmann seconded the motion. On the request of Fire Chief Maczko, Councilmember Hartmann moved that a special closed meeting be conducted in the large conference room at 7:00 P.M. on October 17, 1989 to discuss a Fire Department personnel matter. Councilmember Blesener seconded the motion. CONTRACTOR Council acknowledged a letter from Ms. Mary QUALIFICATION TESTING Louise Clary, 1179 Ivy Hill Drive, regarding a complaint of faulty workmanship by an employee of Benke Companies and a . request that the City investigate the licensure and certification of the service people employed by Benke Companies. COUNCIL VACANCY The Council directed the City Clerk to write to the contractor to inform him that a complaint has been received and to ask for a written response to the complaint and to show why action should not be taken to revoke his license. Council acknowledged receipt of applications from Burton Anderson, James Awada, Bernard Friel, William Healey, Steven Kleinglass, Christine Koch, and Michael Sokol for appointment to the unexpired Council term vacated by Elizabeth Witt. Ayes: 4 Nays: 0 HALLOWEEN BONFIRE Ayes: 4 Nays: 0 SMALLIDGE VARIANCE Page No. 2698 October 3, 1989 Councilmember Hartmann moved to conduct a special meeting from 6:00 to 7:00 P.M. for the purpose of interviewing the seven candidates for Council appointment and to direct staff to assign interview slots by lottery and notify each of the candidates. Councilmember Cummins seconded the motion. Council acknowledged receipt of a request from Mr. Russell Wahl for authorization to conduct the annual Halloween Bonfire at the Mendota Plaza on October 31st from 7 to 9 P.M. Council expressed its support for the activity. Council directed staff to fence the area, monitor and place a limit on the volume of branches and leaves, and install signs restricting the deposit of branches and leaves to residents. Council specifically prohibited the depositing of branches, etc. by commercial operators. Councilmember Cummins moved to approve the proposed Halloween Bonfire to be conducted behind the Mendota Plaza Shopping Center, and to authorize an expenditure of up to $250 for food and beverages. Councilmember Hartmann seconded the motion. Council acknowledged a memo from Acting Administrator Danielson, regarding the Ronald Smallidge pool fence, at 716 Stanwich Lane. Council also acknowledged a copy of the Smallidge's homeowners insurance policy naming the City as an additional insured to protect the City from any claims by third parties based upon the City approval of a four foot fence rather than a five foot fence, and a copy of a letter from City Attorney Hart to the Smallidge's insurer. Council concurred in City Attorney Hart's recommendation that staff get annual confirmation that the coverage remains in force. Councilmember Blesener moved to approve the variance for the in-place four foot fence subject to the condition that if the fence is ever removed or altered in any manner Ayes: 4 Nays: 0 WEST PROPERTY Ayes: 4 Nays: 0 LUCHSINGER PROPERTY Ayes: 4 Nays: 0 Page No. 2699 October 3, 1989 the variance will be void and the fence must be replaced with a five foot fence and further, that the City must be maintained as an additional insured on the Smallidge homeowner's policy at a minimum of $1 million. Councilmember Cummins seconded the motion. Council acknowledged a memo from Treasurer Shaughnessy relative to an offer from an individual to the City for the purchase of the former West home, located at the corner of Marie Avenue and Delaware Avenue, which was recently acquired by the City. It is the intention of the prospective purchaser to move the house to a lot in St. Paul. Councilmember Cummins moved to direct staff to advertise for bids the sale of the West home and to prepare specifications and requirements for moving of the structure. Councilmember Blesener seconded the motion. Council acknowledged a report from Treasurer Shaughnessy regarding City acquisition (T.I.F.) of the Eileen and Isaac Luchsinger property located at 1306 Kendon Lane. Mr. Shaughnessy had informed Council that the property owners have agreed to sale at the appraised price and that verbal confirmation has been received from the County Health Department that the water and sewer systems on the property are substandard and cannot reasonably be brought into conformity. Councilmember Blesener moved to approve execution of the purchase agreement with Mr. and Mrs. Luchsinger for the purchase of All of Lot 7 and the easterly 30 feet of Lot 8, Block 4, Furlong's Addition, subject to written confirmation from the Dakota County Health Department that the on -site water and sewer systems are substandard and cannot be reasonably brought into conformance. Councilmember Hartmann seconded the motion. AIRCRAFT NOISE Ayes: 4 Nays: 0 Page No. 2700 October 3, 1989 Council acknowledged a report from Acting Administrator Danielson regarding a proposed resolution prepared by David Braslau and Robert Collette on the aircraft corridor and letters from Mr. Braslau regarding the proposed resolution and additional cost for supplemental work on the recommendations. Council also acknowledged a letter from the Dakota County Board of Commissioners to the MAC requesting 6 additional remote monitoring stations to be permanently located in Dakota County. Acting Administrator Danielson informed Council that staff had been anticipating that Mr. Braslau and Mr. Collette would be present for the discussion, but that their correspondence spoke to an October 5th meeting. Councilmember Blesener expressed concern that the Braslau proposed resolution did not place a limit on the number of hours planes can be fanned and placed the responsibility for determining peak hours with the control tower. After discussion, Councilmember Blesener moved adoption of Resolution No. 89-115, "RESOLUTION RECOMMENDING REVISED PROCEDURES FOR THE EAGAN/MENDOTA HEIGHTS CORRIDOR TO REFLECT CHANGES SINCE THE CORRIDOR WAS FIRST IMPLEMENTED AND PROVIDING A MORE EQUITABLE DISTRIBUTION OF AIRCRAFT NOISE BETWEEN THE CITIES OF MENDOTA HEIGHTS AND EAGAN," as amended to stipulate that the peak departure periods shall not exceed an aggregate maximum of 8 hours per day. Councilmember Cummins seconded the motion. Staff was directed to notify Mr. Braslau that Council has adopted the revised resolution and to request him to submit a supplemental payment request adjusted with respect to the "October 5th" meeting. Council directed that staff prepare a letter to the Metropolitan Airport Commission in support of the County letter and resolution recommending four to six COMPUTER PURCHASE Ayes: 4 Nays: 0 EMPLOYEE CAFETERIA PLAN HEATING SYSTEM MODIFICATIONS Ayes: 4 Nays: 0 Page No. 2701 October 3, 1989 additional permanent monitoring stations in Dakota County. Council acknowledged a report and recommendation from the City Clerk regarding the acquisition of a computer system by the Engineering Enterprise Fund, to be used in part for MSA reporting purposes and funded 60% by the State Aid Office. Councilmember Blesener moved to authorize the issuance of purchase orders to Ameridata for the State Aid Standard Computer Package for Cities, deleting the specified printer and cable, for $7,708 and to the Metafile Corporation for Metafile/Metaview for $485, 60% of the cost of which will be submitted to the State Aid Office for reimbursement. Councilmember Hartmann seconded the motion. Council acknowledged a memo from Treasurer Shaughnessy regarding implementation of a "cafeteria plan" for City employees. Council expressed its support of such a program. It was the consensus of Council that the staff members should appoint a committee to interview four potential service providers, selecting one provider to make a presentation to staff members to determine interest. Council acknowledged and briefly discussed a memo from the City Clerk recommending authorization for improvements to the City Hall heating and air handling units. Councilmember Blesener moved to authorize the issuance of a purchase order in the amount of $2,500 to Northern Air for HVAC control changes as described in the Northern Air quotation dated September 14, 1989. Councilmember Hartmann seconded the motion. RUBY DRIVE STORM OUTLET IMPROVEMENTS Ayes: 4 Nays: 0 CASE NO. 89-03, DUFFY (LEXINGTON PLAZA Page No. 2702 October 3, 1989 Council acknowledged and discussed a report from Assistant Engineer Klayton Eckles regarding the Ruby Drive storm outlet improvements. Councilmember Cummins moved adoption of Resolution No. 89-116, "RESOLUTION AGREEING TO PARTICIPATE WITH WEST ST. PAUL IN THE RUBY DRIVE STORM OUTFALL IMPROVEMENTS,." improvement no. 89, Project NO. 5. Councilmember Hartmann seconded the motion. Council acknowledged and discussed a memo from Acting Administrator Danielson regarding two issues needing Council consideration before final development documents for the proposed Lexington Plaza Planned Unit Development can be prepared. Those issues are City acquisition of the SOS site --whether Council will proceed with the project if the City is unable to reach acceptable terms with SOS, and whether Council would consider additional T.I.F. funding above the $450,000 cap if Mn/DOT does not fund road construction. City Attorney Hart also informed Council of a third issue needing resolution - a letter of credit from the developer. Mr. Tom Curley was present for the discussion. City Attorney Hart reviewed each of the issues. With respect to the SOS question, he informed Council that it is anticipated that there will be an environmental audit of the property to determine whether there has been any leakage from the underground storage tanks and that everyone involved anticipates that there will be clean up costs. He expressed concern over the potential environmental liability and stated that unless the City is absolutely certain that the property is clean he would not recommend City purchase. He informed Council that if the liability cannot be determined in the next month or so, the project will be delayed, and the developers have asked whether it would be acceptable for them to proceed with the project with the SOS structure still up. Responding to a question from Mayor Mertensotto, Treasurer Shaughnessy informed Page No. 2703 October 3, 1989 Council that if the Duffy project does not proceed and agreement was reached with SOS the Tax Increment Fund could purchase the SOS property. Mayor Mertensotto stated that the development could still proceed while the City negotiates and that it is not necessary that the City hold title to the SOS property. He pointed out that the City will not proceed with purchase of SOS until Council has assurances on the Duffy project. Mr. Hart stated that if a significant hazard exists the City may not want to acquire the property since the City may be liable for clean up costs. He suggested that the City pursue agreement with SOS that the cost for accurate testing be equally shared by SOS and the City. The second issue, according to Mr. Hart, is that the City placed a $450,000 cap on TIF financing for the project. The anticipated cost of constructing the frontage road is $90,000, and construction would be financed by City funds subject to reimbursement by Mn/DOT. Mr. Hart stated that there is not a 100% assurance on Mn/DOT's contribution at this time, only tentative approval by someone on the Mn/DOT staff. The developer's agreement stipulates that any cost in excess of $450,000 will be assessed against the property, and the developers are concerned that they might end up paying for the construction if Mn/DOT does not. Treasurer Shaughnessy informed Council that the increment from the center would not cover the $90,000 cost. Mr. Curley expressed concern over the potential cost and further stated that it is also imperative that the SOS structure is gone by spring so that the developers can complete the site grading. Councilmember Blesener stated that Council has always been of the impression that Mn/DOT will pay for the cost, and if there is a remote chance that this will not happen the cost is the responsibility of the developers. ADJOURN Page No. 2704 October 3, 1989 With respect to the letter of credit, Attorney Hart stated that he has approached the negotiations as if the City were a lender and wants security. The only way the City can be certain it will be paid is a letter of credit on which the City can draw if insufficient tax revenues are available to pay the TIF back. He informed Council that the developers feel this is a very costly proposition and were contemplating an annually renewable letter of credit. Mr. Hart indicated that what this amounts to is just a promise to renew. He also expressed concern over potential damage to the property in the future -- if significant damage is incurred and the center is not rebuilt, the City would have no recourse for payment. Mayor Mertensotto stated that what Mr. Hart has been negotiating is not an unusual requirement but rather a reasonable assurance that the tax increment will be repaid. He informed Mr. Curley that Mr. Duffy has always assured Council that the developers would give a letter of credit to assure repayment of funds. Council direction on the three issues is as follows. With respect to the road construction, the City will make a funding request to Mn/DOT once the project is underway, and there is reasonable assurance that Mn/DOT will provide funding. It was the position of Council that under no circumstance will the City pick up the costs for road construction. Council took the position that it would be firm on the $450,000 TIF cap and firm on the requirement for a letter of credit in the form as recommended by Attorney Hart. With respect to the SOS structure, it was Council's consensus that the Duffy/Curley project can go forward even if SOS is not acquired right away. There being no further business to come before the Council, Councilmember Blesener moved that the meeting be adjourned to a closed session to be held at 6:00 P.M. on October 17th for the purpose of Page No. 2705 October 3, 1989 interviewing Council appointment candidates. Councilmember Cummins seconded the motion. Ayes: 4 Nays: 0 TIME OF ADJOURNMENT: 9:45 o'clock P.M. thleen M. Swanson City Clerk ATTEST: Charles E. Mertensotto Mayor LIST OF CONTRACTORS TO BE APPROVED BY CITY COUNCIL ON OCTOBER 3, 1989 Concrete Licenses F & B Construction, Inc. London Brick, Inc. Gas Piping Licenses Controlled Air Sieben Construction Company Underwood Heating & Air Conditioning Heating and Air Conditioning Licenses Sieben Construction Company Underwood Heating & Air Conditioning General Contractors Licenses All-American Recreation, Inc. Boschee Homes, Inc. Midwest Construction Company Tectone Construction