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1978-05-16 Council minutesPage 889 May 16, 1978 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, May 16, 1978 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 the City Hall, 750 South Plaza Drive, Mendota Heights, Minnesota. Mayor Lockwood called the meeting to order at 7:30 o'clock P.M. The following members were present: Mayor Lockwood, Councilmen Losleben, Mertensotto, Schaberg and Wahl. APPROVAL OF Councilman Wahl moved approval of the minutes -6f the regular MINUTES April 18th meeting as amended. Mayor Lockwood seconded the motion. Ayes: 5 Nays: 0 Ayes: 5 Nays: 0 Ayes: 5 Nays: 0 Councilman Losleben moved approval of the,minutes of the April 25th meeting. Councilman Wahl seconded the motion. Mayor Lockwood moved approval of the minutes of the May 2nd meeting. Councilman Mertensotto seconded the motion. FEASIBILITY Mayor Lockwood opened the meeting for the purpose of a public HEARING -- INLAND hearing on proposed improvements to serve the Inland INDUSTRIAL PARK Industrial Park. Mayor Lockwood turned the meeting over to IMPROVEMENTS City Administrator Johnson for an explanation of the proposed improvements. Administrator Johnson explained that the proposed project consists of sanitary sewer, watermain, storm sewer and street improvements to be installed on the east/west section of Northland Drive in the Inland Industrial Park and that the project was initiated in response to a petition for improvements from Cray Research. He also noted that a proposed lift station is included as part of the sanitary sewer portion of the proposed improvements. Mr. Johnson stated that legal notices had been published in the official newspaper and copies had been sent to all affected property owners. He noted that the notice included an incorrect estimate of $60,600, for watermain construction; the correct estimate is $40,619. Estimated project costs are as follow: sanitary sewer area assessment for the lift.station, $39,000, or $.032 per square foot of assessable area, and sanitary sewer servicing estimate at $15.17 per assessable foot; watermain, $40,619, or an estimated $22.32 per assessable foot Page 890 May 16, 1978 (including services); storm sewer, estimated at $17,600, or $9.67 per assessable foot; streets, estimated at $89,000, or an estimated assessment of $33.34 per foot for the Northland property and $42.00 per foot for the Perron property. He noted that the disparity in estimated costs against the properties is due to the fact that the Northland property had been graded under an earlier project in anticipation of future construction while the Perron property has not been graded. If the project is approved, an assessment hearing could be held in the summer of 1979. Utility assessments would be levied over a 19 year period and streets over a 10 year period, at a rate of 7% interest on the unpaid balance. The Council acknowledged receipt of a letter from Programmed Land, Inc., supporting the proposed project, based on conditions dontained in the letter. Mr. Glen Shaw, representing Programmed Land, was present to expand on the letter, explained the company's rationale for wanting Outlot A to be assessed for water service, noting that it is his feeling that the water service will benefit the property and make it more desireable for future development. Mayor Lockwood asked for questions and comments from the audience. Councilman Losleben expressed concern about pending assessment costs for Outlot A, especially his concern about future tax forfeiture if the pending assessments are too great. Councilman Mertensotto asked whether all the property owners will agree to the granting of street and utility easements, and Administrator Johnson stated that there has been verbal agreement by the property owners. There being no further questions from the audience, Councilman Mertensotto moved that the hearing be closed. Councilman Losleben seconded the motion. Ayes: 5 Nays: 0 The hearing was closed at 8:02 o'clock P.M. Councilman Losleben moved the adoption of Resolution No. 78-50, "RESOLUTION ORDERING IMPROVEMENTS TO SERVE 2-PORTION OF INLAND INDUSTRIAL PARK AND ADJACENT AREAS AND PREPARATION OF PLANS AND SPECIFICATIONS THEREFORE (Improvement No. 78, Project No. 2)." Councilman Schaberg seconded the motion. Ayes: 5 Nays: 0 Councilman Losleben moved the adoption of Resolution No. 78-51 "RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR INLAND INDUSTRIAL PARK IMPROVEMENTS AND ORDERING ADVERTISEMENT FOR BIDS (Improvement No. 78, Project No. 2)," the bids to be accepted on June 13th. Councilman Schaberg seconded the motion. Ayes: 5 Nays: 0 MENDOTA WATER COMPANY Ayes: 5 Nays: 0 BIRCH COMPANY Ayes: 5 Nays: 0 Page 891 May 16, 1978 Mayor Lockwood advised the Council and audience that the Council had requested current unaudited figures for the Mendota Water Company's end of the first year at the current rates. The Council acknowledged a letter from the Water Company advising that they are not prepared to respond with the figures at this meeting. Mr. Dennis McCardle, representing the Friendly Hills Civic Association, was present to explain his report and analysis of Water Company financial reports for the last several years. Mr. McCardle stated that the current rate being charged by the Water Company has a net book profit built in. He maintained that there is an element of profit built into the entire company and expanded on his analysis, stating that the Civic Association arrives at $13.00 per month, retaining the existing 30,000 gallon per month maximum useage, as a reasonable rate. He pointed out that the customers of the company feel that the stockholders are entitled to a reasonable rate of return but further feel that the reasonable rate of return has already been reached. The Council discussed the matter with Mr. McCardle and several members of the audience, after which Mayor Lockwood noted that the Council members would like to study the matter and also give the Neter Company representatives an opportunity to review the material prior to consideration of a rate reduction to $13.00. Mayor Lockwood moved that further discussion on the matter be continued to June 6, directing that staff submit a copy of the report to the Water Company and invite the Company representatives to attend the June 6 meeting and to submit an unaudited 6-month report, further directing that the City Attorney prepare a legal opinion relative to the question of what constitutes a "reasonable rate of return" on investment. Councilman Schaberg seconded the motion. The Council acknowledged receipt of a letter from Mr. Brian Birch requesting a change in the Zoning Ordinance to allow his business in a B-2 Zoning District. The Council also acknowledged a note from City Planner Dahlgren recommending that the property in question not be rezoned to B-3 and that if the Council wishes to allow the proposed development, he would recommend that the Council initiate the procedure to amend the Zoning Ordinance to allow the use as a conditional use in the B-2 District. Mayor Lockwood briefly summarized the past Council discussions on Mr. Birch's request and the Council's concerns over compatibility of the use in a neighborhood business district. After some discussion, Mayor Lockwood moved to direct that the matter be referred to the Planning Commission for May 23rd consideration of the proposed zoning ordinance amendment. Councilman Wahl seconded the motion. Page 892 May 16, 1978 CROWN POINT Councilman Losleben moved the adoption of Resolution No. 78-52, IMPROVEMENTS "RESOLUTION ORDERING CONSTRUCTION OF IMPROVEMENTS TO SERVE CROWN POINT ADDITION AND ADJACENT AREAS." Councilman Schaberg seconded the motion. Ayes: 5 Nays: 0 The Council reviewed the bids received on May 2 relative to construction of the Crown Point Addition public improvements. Councilman Losleben moved the adoption of Resolution No. 78-53, "RESOLUTION AWARD1ENG CROWN POINT BIDS," awarding the bid to Lametti and Sons Construction Company, for their low bid of $280,246.25. Councilman Schaberg seconded the motion. Ayes: 5 Nays: 0 PROPOSED ANIMAL City Attorney Winthrop reviewed the several changed contained ORDINANCE AND in the proposed Dog Ordinance amendment. As part of the DOG ORDINANCE discussion, Councilman Wahl questioned whether the ordinance AMENDMENT should be changed to allow kennels only as a conditional use in a residential area. Ayes: 5 Nays: 0 CASE NO. 78-4, PASS SUBDIVISION Ayes: 5 Nays: 0 Mr. Winthrop also reviewed the contents of the proposed animal ordinance for the Council and audience. There were several questions and comments from members of the audience. It was the concensus of the Council that no action should be taken on the matter at the present time, in order to allow interested residents an opportunity to request and review copies of the ordinances. Councilman Mertensotto moved that further discussion on the proposed ordinances be tabled to June 20th, that the Police Chief be directed to prepare a report citing problems which precipitated preparation of the proposed ordinances, and that the report be submitted to the Council for review on June 20th, and also requested that any persons interested in submitting comments or objections submit written responses by June 15th. Counci-man Wahl seconded the motion. The Council acknowledged receipt of a report from the City Engineer relative to assessments and drainage considerations on Lot 7, Block 3, Jefferson Heights Addition. Councilman Wahl moved approval of the subdivision as proposed conditioned upon receipt of $500 park dedication and a drainage easement along the south border of the southerly lot (created by the Subdivision), necessary for continuation of the existing natural drainage pattern. Mayor Lockwood seconded the motion. Page 893. May 16, 1978 CRAY RESEARCH, City Attorney Winthrop advised the Council that he has INDUSTRIAL REVENUE received and reviewed the documents required preparatory to BONDS issuance of the $1,000,000 Industrial Revenue Bonds and that all of the forms are in proper order. Ayes: 5 Nays: 0 DEPARTMENT REPORTS A representative of Faegre and Benson explained the procedure for the Council. Attorney Winthrop stated that the end result of this type of bonding is that the City has no liability on the bonds, the liability is that of Cray Research. After a brief discussion, Councilman Mertensotto moved teh adoption of Resolution No. 78-54, "RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE BONDS TO PROVIDE FUNDS TO BE LOANED TO CRAY RESEARCH, INC. FOR INDUSTRIAL PROJECT AND APPROVING AND AUTHORIZING EXECUTION AND DELIVERY OF TRUST INDENTURE, LOAN AGREEMENT, BOND PURCHASE AGREEMENT, GUARANTY, MORTGAGE AND OFFICIAL STATEMENT. Councilman Losleben seconded the motion. The Council ac knowledged receipt of the Police and Fire Department monthly reports for April, 1978. SEWER AND WATER The Council acknowledged receipt of a letter from CONNECTION Mr. Daniel Dahlin and Mr. Lyle M. Triviski requesting water REQUEST and sewer service to 970-974 Sibley Memorial Highway, property known as Dandy's Lounge and Chet's Liquors, located in Lilydale. Administrator Johnson explained a proposed connection charge, based on Resolution No. 73-94, as follows: Trunk sewer (including services, front foot assessment) at $3,361.75, and water at $2,336.13 (including front foot assessment) for a total connection charge of $5,697.88. Ayes: 3 Nays: 2 Mertensotto Schaberg WATER CONNECTION REQUEST Councilman Mertensotto felt that the charge as proposed is too conservative, and felt that such connections outside the City should be subject to 7% interest from the time that the original improvement project was installed, as is currently being charged on payments of deferred assessments. Councilman Schaberg agreed with this concern. After some discussion, Counci-man Losleben moved that the sewer and water connection be approved conditioned upon receipt of a $5,697.88 connection charge plus the equivalent of a commercial Water Availability Charge. Councilman Wahl seconded the motion. The Council acknowledged receipt of a letter from Bream Homes, Inc., requesting water service to the proposed Lexington Court Townhomes and further requesting reconsideration and reduction of the proposed $550 per unit connection charge. No action was taken on the matter. COMMUNICATIONS Pager 894 May 16, 1978 The Council acknowledged receipt of a letter from Governor Rudy Perpich inviting City officials to attend the National Conference of Families to be held on May 22nd. The Council acknowledged receipt of a letter from the Association of Metropolitan Municipalities on Workmen's Compensation. MUNICIPAL The Council received and discussed a letter and questionnaire INSURANCE from the League of Minnesota Cities regarding Liability/ Property Insurance and the possibility of establishment of an alternative to the conventional commercial insurance market. Ayes: 5 Nays: 0 ROLLING GREEN FINAL PLAT Ayes: 5 Nays: 0 Councilman Mertensotto moved that all of the questions on the questionnaire be answered in the affirmative and returned to the League Mayor Lockwood seconded the motion. Mr. Roger Derrick was present to request approval-of the final plat of the Rolling Green Addition. Attorney Winthrop explained the status of the negotiations with the Burow family towards acquisition of right-cif-way for Marie Avenue under the Marie Avenue (central section) improvement project. Mr. Winthrop explained that while both parties had agreed to an acquisition price of $3,800, the Burows contend that damages resulted as the result of the street construction and that the City is liable for payment of the damages. With regard to the drainage area easement on the adjacent Burow property, the City has approved the easement agreement and the only question that remains is the compensation for damages for the easement acquisition. Councilman Mertensotto expressed concern over the lots adjacent to the pond area and recommended that the Council require covenants on these lots, the covenants to be filed with the plat. Mr. Derrick advised the Council that if the City would be agreeable to completing the right-of-way acquisition, his firm will pay for any damage claims. After considerable discussion, Mayor Lockwood moved the adoption of Resolution No. 78-56, "RESOLUTION APPROVING FINAL PLAT OF ROLLING GREEN," on the following conditions: that the Burows agree to a payment of $3,800, plus accrued interest at the rate of 6% for the acquisition of Marie Avenue right -o4-way; that the developers execute the Developer's agreement and submit the letter of credit required therein; that protective covenants on the lots adjacent to the ponding area be filed with the plat; and on the condition that the Derrick Land Company be responsible for any damage claims from the Burrows' resulting from the Marie Avenue right-of-way acquisition, and that the Burows submit a hold-harmless agreement to the City releasing the City from any claims for said damages. Councilman Mertensotto seconded the motion. Ayes: 5 Nays: 0 Ayes: 5 Nays: 0 PERSONNEL Ayes: 3 Nays: 2 Lockwood Schaberg Ayes: 3 Nays: 1 Losieben METROPOLITAN STRENGTH CHARGE ORDINANCE Page 895 May 16, 1978 Councilman Mertensotto moved the adoption of Resolution No. 78-57, "RESOLUTION AUTHORIZING ACQUISITION OF BUROW PROPERTY." Councilman Schaberg seconded the motion. Mayor Lockwood moved the adoption of Resolution No. 78-58, "RESOLUTION ACCEPTING ENGINEER'S REPORT AND AUTHORIZING PREPARATION OF PLANS AND SPECIFICATIONS FOR IMPROVEMENTS TO SERVE THE ROLLING GREEN ADDITION." Councilman Wahl seconded the motion. The Council acknowledged receipt of a memo from the City Administrator advising that Mrs. Rita Dolan has submitted her resignation from the Police Clerk position, effective May 19#h. Mr. Johnson recommended that Miss Valerie Lengsfeld be appointed to the position at the salary of $650 per month. There was considerable discussion over authorization for expansion of #he position from part-time to full-time and on whether or not the City Administrator should be authorized to employ persons for vacant positions prior to receiving Council approval of the employment. Mayor Lockwood and Councilman Schaberg objected to the requirement for Council approval prior to hiring the employee. After discussion, Councilman Mertensotto moved that as a policy matter employees should not be hired before a position has been officially authorized by the Council and that all permanent employees must be approved by the City Council before commencing employment. Councilman Losieben seconded the motion. Councilman Schaberg left themeeting at 12:20 P.M. Councilman Wahl moved that Valerie Lengsfeld be employed as full-time Police Clerk, effective as soon as possible, at a salary of $650 per month. Councilman Mertensotto seconded the motion. The Council acknowledged reciept of a letter and smaple ordinance from the Metropolitan Waste Control Commission requesting adoption of a Metropolitan Strength Charge System Ordinance. Administrator Johnson explained the proposed ordinance to the Council, indicating that the Waste Control Commission request is really to satisfy the federal mandate that industry pay its own way on industrial waste costs. Ayes: 4 Nays: 0 PUBLIC WORKS GARAGE FUND Ayes: 4 Nays: 0 DELINQUENT SEWER CONNECTIONS Ayes: 4 Nays: 0 ELECTIONS FINANCIAL STATEMENT LIST OF CLAIMS Page 896 May 16, 1978 Councilman Losleben moved the adoption of Ordinance No. 155, "AN ORDINANCE ESTABLISHING AN INDUSTRIAL USER STRENGTH CHARGE IN ADDITION TO THE CHARGE BASED UPON THE VOLUME OF DISCHARGE BY AN INDUSTRIAL USER AND ESTABLISHING AN INDUSTRIAL USER STRENGTH CHARGE FORMULA FOR THE COMPUTATION THEREOF TO RECOVER OPERATION AND MAINTENANCE COSTS OF WASTE TREATMENT SERVICES ATTRIBUTABLE TO THE STRENGTH OF THE DISCHARGE OF INDUSTRIAL WASTE INTO THE SEWER SYSTEM AND ESTABLISHING TAX LIEN AGAINST PROPERTY SERVED IN CONNECTION WITH SUCH STRENGTH CHARGE." Councilman Wahl seconded the motion. Councilman Wahl moved the adoption of Resolution No. 78-59, "RESOLUTION ESTABLISHING PUBLIC WORKS GARAGE FUND." Mayor Lockwood seconded the motion. The Council acknowledged receipt of memos from the City Clerk regarding several delinquent sanitary sewer connections. As the result of the discussion, the Council directed that the Health Officer be requested to perform inspections on the private sanitary systems at the subject properties. Councilman Losleben moved that a 120 -8.ay extension be granted to 1875 South Lexington Avenue and 1867 Hunter Lane on the condition that the Health Officer's inspection indicates that such extension would not cause any health hazards. Councilman Mertensotto seconded the motion. The Council also accepted the Clerk's recommendation that immediate connection be required at 1062 Wagon Wheel Trail, 1401 Wachtler Avenue and 988 Kay Avenue, and that the matter be turned over to the City Attorney for appropriate action. The City Clerk advised the Council that as a result of negotiations with Computer Election Systems and the three communities currently in the Joint Use Agreement, it has been determined that the City should remain in the Joint Use Agreement for the 1978 elections rather than purchasing Precinct Ballot Counters at this time. The Council acknowledged receipt of themonthly financial statement for April. Councilman Losleben moved adoption of the following motion: RESOLVED, that the claims submitted to the City Council for payment, a summary of which is set forth on the list attached hereto and identified as Litt of Claims submitted for payment, May 16, 1978, having been audited by the City Council, be and are hereby allowed and the Mayor and Treasurer of the City Ayes: 4 Nays: 0 LICENSES Ayes: 4 Nays: 0 MALT LIQUOR LICENSES Ayes: 4 Nays: 0 Ayes: 4 Nays: 0 Ayes: 4 Nays: 0 ADJOURN Ayes: 4 Nays: 0 ATTEST: Page 897 May 16, 1978 Mendota Heights are hereby authorized and directed to issue City checks in payment of said claims. Councilman Mertensotto seconded the motion. Councilman Wahl moved approval ofthe list of licenses, granting licenses to: Steenberg Construction Company Great Plains Supply Company Midwest Construction Company Trane Home Comfort Center Trane Home Comfort Center Lake Elmo Heating & Air Conditioning Lake Elmo Heating & Air Conditioning Vruno Construction Company Anthony Avoles, Inc. Mayor Lockwood seconded the motion. General Contractor License General Contractor License General Contractor-License Heating & Air Conditioning Gas Heating License Heating & Air Conditioning License Gas Heating License Masonry License Plumbing License Mayor Lockwood moved that a 3.2 off-sale malt liquor license be granted to Country Club Market, Inc. Councilman Losleben seconded the motion. Councilman Losleben moved that a 3.2 On and Off-sale Malt Liquor License be granted to Par 3 Golf, Inc. Councilman Wahl seconded the motion. Mayor Lockwood moved that a 3.2 on and off-sale malt liquor license be granted to Geroge's Golf Range. Councilman Mertensotto seconded the motion. There being no further business to come before the Council, Councilman Losleben moved that the meeting be adjourned. Councilman Wahl seconded the motion. TIME OF ADJOURNMENT: 1:03 o'clock A.M. RA-uvt-A-, rcitwL- Robert G. Lockwood Mayor m. Ka leen M. Swanson City Clerk