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2021-08-25 Special Council Meeting agenda packetCITY OF MENDOTA HEIGHTS SPECIAL CITY COUNCIL MEETING AGENDA August 25, 2021 7:00 PM Mendota Heights City Hall 1.Call to Order 2.Roll Call 3.New Business a.Consider Resolution 2021-70, Approving an Administrative Critical Area Permit to Xcel Energy and for Property Located at 800 Sibley Memorial Highway (State Highway 13) b.Approve Modification of Bonding Application for Oheyawahe /Historic Pilot Knob, to Include a $50,000 Local Match 4.Adjourn Request for City Council Action DATE: August 25, 2021 TO: Mayor Levine and City Council; City Administrator McNeill FROM: Tim Benetti, Community Development Director SUBJECT: Resolution No. 2021-70 Approving an Administrative Critical Area Permit and Temporary Exemption from Critical Area Overlay District Moratorium [Planning Case No. 2021-17] Introduction Xcel is requesting an emergency or special approval to an Administrative Critical Area Permit, in order to complete some immediate and mandated infrastructure improvements to their Sibley Gas Plant facility, located at 800 Sibley Memorial Highway (Highway 13). Background The subject property is located in the B-1A Limited Business district, and is situated within the Critical Area Overlay District, or soon to be known as Mississippi River Corridor Critical Area (MRCCA). Pursuant to Section 12-3-5 of the City Code, all properties located in the critical overlay area that wish to undergo any major development or improvements, including new structures, additions, grading work, vegetation removal, etc. must be approved by a standard critical area permit; while minor projects can be approved by an administrative permit. As the Council is aware, with the recent 2040 Comprehensive Plan update the city was required to provide a new MRCCA chapter. In addition, upon completion of the plan, the City must replace the old Chapter 3 – Critical Area Overlay District ordinance with a new MRCCA ordinance. This ordinance update is currently underway. Related to this ordinance update, the city council adopted Ordinance No. 562 (02/16/2021), which placed a temporary moratorium on all development or construction activities in the critical area overlay district. Should the city give favorable consideration to this request, the city council will need to approve an exemption or waiver to Xcel from the current MRCCA moratorium. Description of Request Xcel is under a directive or mandate from the Minnesota Office of Pipeline Safety to perform some needed upgrades to their gas plant facility. Upgrades include replacing some outdated and worn out valves, pipes and equipment (circa 1957/58) with new modern materials, equipment, pipes, valves and miscellaneous safety measures. Due to the importance of continued natural gas service to the community and region, and ensuring that gas is available to local customers when the cold/winter season comes, this equipment upgrade work by Xcel is imperative, and must be expedited. Structural improvements include a new 40-ft. long lattice type “pipe bridge” to support a new pipe from the existing propane gas tank field located to the south of the plant site, which will connect over to the three existing mixing/valve/distribution buildings located north of the field. The existing feeder pipe is located underground; and Pipeline Safety has mandated Xcel remove this pipe and place it above-ground for safety reasons. As part of these necessary upgrades, a new 8’ (diameter) x 30’ (high) vertical air receiver tank will be placed east of the existing support buildings; and a new 8’ x 17’ (136-sf) electrical support building will be placed west of the buildings. This project is expected to have minimal land disturbance, as the new concrete footings for the bridge and air tank are to be core-drilled and poured on site. Xcel indicated they plan to re-skin the buildings outer walls/roofs with new materials (no change in building sizes), and have offered to paint or provide a color on all building and tank of the city’s choosing. In order to expedite the project work, and because they have crews willing to put in extra hours to complete the project in timely fashion, Xcel is also requesting special approval to allow work on “6-10’s” - meaning 10- hour work shifts, Monday – thru Saturday, from 7:00 am to 5:00 pm. The city’s normal construction work hours are 7:00 am to 8:00 pm Mon.-Fri. and 9:00 am to 5:00 pm Sat.-Sun. Analysis - Critical Area Permit According to Title 12-3-5-D of the City Code, in the case of a minor development and if the project or plans conform to the standards of the critical area overlay district, the city administrator can bring the request to the attention of the City Council [at its next regular meeting] following receipt of an application for critical area ordinance consideration. The city council shall review such request and may, if it so determines, exempt the applicant from complying with any unduly burdensome requirements of this chapter. This allowed exemption can be considered under an administrative review process, which is the case in this particular application. As indicated previously, Ordinance No. 562 placed a temporary moratorium on any new developments or permits on properties located in the Critical Area Overlay District. Per Section 3.4 of this ordinance, any development or construction activity that meets the requirements of City Code Section 12-3-5(D) as a minor development; or any development or construction activity that does not expand the outer footprint of a building or attached structure, may be considered for exemption under this moratorium. Although these improvements may appear to be considerable, staff is suggesting or recommending the city council view this work as a “minor development” in comparison to the overall functions and other improvements in the gas plant site. As with any new administrative CAP, staff must analyze and determine if the proposed minor development or improvements meet certain design standards. All administrative approved projects must meet or comply with the following conditions (with Staff comments noted afterwards): 1. No part of the subject property shall have slopes of greater than eighteen percent (18%). Staff Comments: The work is expected to take place in an area that is relatively flat with no noticeable slope gradients. No major or extensive grading activities are proposed with this project. 2. No part of the subject property shall be within forty feet (40'), whether on the same parcel or on abutting parcels of any area defined as a bluff by this chapter, or any area with slopes greater than forty percent (40%). Staff Comments: There are no bluffs on this property, therefore no impacts. 3. The proposed project shall not expand the enclosed area of the principal or accessory structures by more than one hundred forty four (144) square feet. Staff Comments: There are two (2) buildings approx. 40’ x 60’; one 40’ x 50’ structure; and one smaller 18’ x 24’ structure. The plans call for the addition on one new 8’ x 17’ (136-sf) electrical support building, which is pre-fabricated off-site, to be delivered and placed in the area west of these existing support structures. No changes or additions will take place on the existing buildings, except for the re-skinning or interior modifications. 4. The proposed project shall not increase the height of any existing structure. Staff Comments: The new 8’ x 30’ air mixing/pressure tank will be placed on the east edge of the support structures area. This new tank is going to be very noticeable and visible once it is placed upright. Xcel indicated to city staff that placement of this tank upright or vertical is due to functionality of the tank and due to space limitations on the site. Staff asked if Xcel would consider having this tank lay horizontal in order to lessen its visual impacts with surrounding residential neighborhoods. The response was that it was not possible from a standpoint of functionality. 5. The proposed project shall be in compliance with all other requirements of this chapter, and any other applicable regulations. Staff Comments: Because this gas plant facility is considered a specialized ”utility” use, Xcel is exempt through certain State Statutes from submitting city building permits or having the city’s consultant building official inspect the work, including the new pipe bridge, air tank, or work inside/outside the buildings. All mechanical, plumbing and electrical permits are handled by or processed through the Minn. State Dept. of Labor and Industry. 6. The proposed project shall not result in changes to the existing finished grade. Staff Comments: No extensive grading proposed under this project. Department of Natural Resources Review As part of any new critical area permit application, the city normally sends a notice or provides plans for any proposed project in the Critical Area District to designated Department of Natural Resources (DNR) staff, in order for them to review and comment. Staff consulted with DNR officials directly on this emergency permit request; and even though we have our draft MRCCA ordinance still under review, the city is still technically operating under the current Critical Area Overlay Ordinance. As such, DNR stated that due to the emergency nature of this request and because public safety is paramount in this case, DNR officials stated the City of Mendota Heights does have the right to authorize Xcel to proceed with this project as a “Minor Development” and authorize said work under this Administrative Permit (per City Code Section 12-3-5.D.), subject to City Council approval. Minor Developments are typically approved under an Administrative Critical Area Permit application and review process with the City Council only, with no planning commission hearing/recommendation. The City Attorney concurs and has stated this Administrative CAP may proceed to city council review/authorization without a hearing. Recommendation This work must be completed before heating season fully commences in mid-November. The short timeframe is why this consideration cannot wait for consideration which would normally be at the regular City Council meeting of September 9th. The City Council needs to approve an Administrative Critical Area permit to Xcel Energy, and for the property upon which it is located. It will also need to approve an exemption or waiver to Xcel to the current MRCCA moratorium, which was authorized by the council under Ordinance No. 562 (adopted 02/16/2021). Due to the imperative nature of this work; the scheduled improvements and upgrades mandated by the Minnesota Office of Pipeline Safety; the need for ensuring public safety; and based on staff’s interpretation of the intent of the provisions set forth under City Code Section 12-3-1 Critical Area Overlay District ordinance, staff believes this project does not require Planning Commission recommendation and a public hearing; and therefore may be given full consideration and approval by the City Council. Since there is very little, if any impact to the Mississippi River corridor, bluff areas, or the surrounding properties, staff recommends the city council approve of this Administrative Critical Area Permit request to Xcel Energy, with the conditions noted in the attached resolution. Action Required Adopt RESOLUTION NO. 2021-70 APPROVING AN ADMINISTRATIVE CRITICAL AREA PERMIT TO XCEL ENERGY AND FOR THE PROPERTY LOCATED AT 800 SIBLEY MEMORIAL HIGHWAY (STATE HIGHWAY 13). This action requires a simple majority vote. CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2021-70 RESOLUTION APPROVING AN ADMINISTRATIVE CRITICAL AREA PERMIT TO XCEL ENERGY AND FOR PROPERTY LOCATED AT 800 SIBLEY MEMORIAL HIGHWAY (STATE HWY. 13) (PLANNING CASE NO. 2021-17) WHEREAS, Xcel Energy (the “Applicant”) applied for an Administrative Critical Area Permit to make necessary gas pipeline improvements and upgrades to Xcel’s Sibley Propane Gas Plant facility, which will include construction of a new pipe bridge, an 8’ x 30’ air pressure tank, and an 8’ x 17’ (136-sq. ft.) accessory electrical support structure, as proposed under Planning Application No. 2021-17, for the property located at 800 Sibley Memorial Highway (State Highway 13), and legally described in Exhibit A (the “Subject Property”); and WHEREAS, the Minnesota Office of Pipeline Safety has mandated and directed Xcel Energy to make necessary upgrades to this propane gas plant facility, including but not limited to replacing outdated and worn out valves, pipes and equipment, and due to the importance of continued natural gas service to the community and region and to ensuring that gas is available to local customers when the cold/winter season comes, this equipment upgrade work by Xcel is not only mandatory, but imperative as well, and should be expedited; and WHEREAS, the City Council finds that the Applicant’s proposed improvements do not increase the scale or intensity of the Applicant’s use of the land, but rather the improvements consist of necessary repairs and upgrades to infrastructure that is critical to public safety; and WHEREAS, the Subject Property is located within the Critical Area Overlay District of the City of Mendota Heights, and the City Council hereby determines that due to the minor nature of the improvements proposed, this project qualifies as a minor development under Title 12-3-5 (D) of the City Code provisions for those properties situated in the recognized Critical Area Overlay District; and NOW THEREFORE BE IT RESOLVED by the Mendota Heights City Council that the administrative critical area permit request as proposed under Planning Case No. 2021-17 can be approved based on the following findings of fact: A) the proposed project will have no negative impacts upon the critical corridor area, the adjacent bluffs, or surrounding properties; B) the proposed project will not impact or change any major grades or drainage ways on the property; C) the proposed project will be done in accordance with all requirements of the City’s Land Disturbance Guidelines, and D) the proposed project meets the general purpose and intent of the Critical Area Overlay District and City Code. AND BE IT FURTHER RESOLVED by the Mendota Heights City Council that the Administrative Critical Area Permit request from Xcel Energy and as proposed under Planning Case No. 2021-17, is hereby approved with the following conditions of approval: 1. Full erosion and sedimentation measures will be put in place prior to and during grading and construction work activities. 2. All grading and construction activity will be in compliance with applicable federal, state, and local regulations and codes, as well as in compliance with the City’s Land Disturbance Guidance Document. 3. Work on this project only are allowed from 7:00 am to 5:00 pm Monday through Saturday, with no work on Sundays. 4. All disturbed areas in and around the project site shall be restored and have an established and permanent ground cover immediately after the project is completed. Adopted by the City Council of the City of Mendota Heights this 25th day of August, 2021. CITY COUNCIL CITY OF MENDOTA HEIGHTS ________________________________ Stephanie Levine, Mayor ATTEST: ________________________________ Lorri Smith, City Clerk Drafted by: City of Mendota Heights 1101 Victoria Curve Mendota Heights, MN 55118 EXHIBIT A Property Address: 800 Sibley Memorial Highway, Mendota Heights MN PID: 27-01400-75-011 Legal Description: Real property in the County of Dakota, State of Minnesota, described as follows: ABSTRACT PARCELS: 1. LOTS FIVE (5) THROUGH NINE (9), BLOCK TWO (2), CHERRY HILL SECOND ADDITION, ACCORDING TO THE PLAT THEREOF ON FILE AND OF RECORD IN THE OFFICE OF THE COUNTY RECORDER IN AND FOR DAKOTA COUNTY, MINNESOTA. 2. THE EAST FORTY (40) RODS OF THE SOUTH FORTY (40) RODS OF GOVERNMENT LOT TWO (2)IN THE NORTHWEST QUARTER (NW 1/4) OF THE NORTHEAST QUARTER (NE l/4) OF SECTION TWENTY-THREE (23), TOWNSHIP TWENTY-EIGHT (28), RANGE TWENTY-THREE (23), ACCORDING TO THE GOVERNMENT SURVEY THEREOF. EXCEPT, THAT PART OF THE EAST FORTY (40) RODS OF THE SOUTH (40) RODS OF GOVERNMENT LOT TWO (2) N THE NORTHWEST QUARTER (NW V4) OF THE NORTHEAST QUARTER (NE 1/4) OF SECTION TWENTY-THREE (23), TOWNSHIP TWENTY-EIGHT (28), RANGE TWENTY-THREE (23), ACCORDING TO THE GOVERNMENT SURVEY THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE EAST FORTY (40) RODS OF THE SOUTH FORTY (40) RODS OF SAID GOVERNMENT LOT TWO (2); THENCE SOUTH ALONG THE WEST LINE THEREOF FOR 409.87 FEET TO AN INTERSECTION WITH LINE "A" WHICH LIES SOUTHEASTERLY AND NORTHWESTERLY AT AN ANGLE OF 54°30' TO SAID WEST LINE; THENCE SOUTH ALONG SAID WEST LINE TO AN INTERSECTION WITH A LINE WHICH IS PARALLEL WITH AND DISTANT 75 FEET SOUTHWESTERLY OF SAID LINE "A"; THENCE SOUTHEASTERLY ALONG SAID PARALLEL LINE TO AN INTERSECTION WITH A CURVED LINE WHICH IS PARALLEL WITH AND DISTANT 150 FEET SOUTHEASTERLY, EASTERLY AND NORTHEASTERLY OF LINE "B" DESCRIBED AS FOLLOWS: FROM A POINT ON THE WEST LINE OF THE EAST FORTY (40) RODS OF THE SOUTH FORTY (40) RODS OF SAID GOVERNMENT LOT TWO (2), DISTANT 409.87 FEET SOUTH OF THE NORTHWEST CORNER THEREOF; THENCE NORTHWESTERLY FROM SAID POINT AT AN ANGLE OF 54°30' TO SAID WEST LINE FOR 173.25 FEET TO THE POINT OF BEGINNING OF LINE "B" TO BE DESCRIBED; THENCE SOUTHEASTERLY ALONG THE LAST DESCRIBED COURSE FOR 100 FEET; THENCE DEFLECT TO THE LEFT ON A CURVE HAVING A RADIUS OF 150 FEET, (DELTA ANGLE 140°13'44") FOR 367.12 FEET; THENCE DEFLECT TO THE LEFT ON A 7°30' CURVE (DELTA ANGLE 34°00') FOR 453.33 FEET AND THERE TERMINATING; THENCE ALONG SAID CURVED PARALLEL LINE CURVI NG TO THE LEFT TO ITS INTERSECTION WITH A LINE WHICH LIES NORTHEASTERLY AT RIGHT ANGLES TO THE TANGENT OF THE 7°30' CURVE DESCRIBED ABOVE TO A POINT ON SAID TANGENT DISTANT 413.57 FEET SOUTHEASTERLY OF THE POINT OF TERMINATION OF SAID LINE "B"; THENCE SOUTHWESTERLY ALONG SAID RIGHT ANGLED LINE FOR 70 FEET; THENCE NORTHWESTERLY ALONG A LINE WHICH IS PARALLEL WITH AND DISTANT 80 FEET NORTHEASTERLY OF SAID LINE "B" TO THE INTERSECTION OF SAID PARALLEL LINE WITH THE NORTH LINE OF THE EAST FORTY (40) RODS OF THE SOUTH FORTY (40) RODS OF SAID GOVERNMENT LOT TWO (2); THENCE WEST ALONG SAID NORTH LINE TO THE POINT OF BEGINNING. 3. THE WEST 375 FEET OF THE SOUTH 30 ACRES OF THE NE ¼ OF THE NE 1/4 OF SECTION 23, TOWNSHIP 28 NORTH, RANGE 23 WEST, ACCORDING TO THE GOVERNMENT SURVEY THEREOF. 4. THE NORTH TWO HUNDRED EIGHTY AND SIX-TENTHS (280.6) FEET OF THE WEST THREE HUNDRED SEVENTY FIVE (375) FEET OF THE SOUTHEAST QUARTER (SE 1/4) OF THE NORTHEAST QUARTER (NE 1/4) OF SECTION TWENTY THREE (23), TOWNSHIP TWENTY EIGHT (28) NORTH, RANGE TWENTY THREE (23) WEST. 5. A PARCEL OF LAND IN THE SOUTHWEST QUARTER (SW 1/4) OF NORTHEAST QUARTER (NE1/4), SECTION TWENTY-THREE (23), TOWNSHIP TWENTY-EI GHT (28) NORTH, RANGE TWENTY-THREE (23) WEST, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF THE SOUTHWEST QUARTER (SW 1/4) OF THE NORTHEAST QUARTER (NE ¼ OF SAID SECTION TWENTY-THREE {23),THENCE SOUTH ALONG THE EAST QUARTER- QUARTER (1/41/4) LINE OF SAID SECTION TWENTY-THREE (23), A DISTANCE OF TWO HUNDRED EIGHTY AND SIX TENTHS (280.6) FEET; THENCE WESTERLY AT A DEFLECTION ANGLE OF NINETY-THREE DEGREES, THIRTY-FIVE MINUTES (93°35') TO THE RIGHT A DISTANCE OF THIRTY-NINE AND SEVEN-TENTHS (39.7) FEET; THENCE NORTHWESTERLY AT A DEFLECTION ANGLE OF TWENTY-SIX DEGREES, TEN MINUTES (26°10') TO THE RIGHT A DISTANCE OF TWO HUNDRED SIXTY-SIX AND FIVE-TENTHS (266.5) FEET; THENCE NORTHWESTERLY AT A DEFLECTION ANGLE OF THIRTEEN DEGREES, TWENTY-NI NE MINUTES (13°29') TO THE RIGHT A DISTANCE OF ONE HUNDRED FORTY-NINE AND SEVEN- TENTHS (149.7) FEET; THENCE NORTHERLY AT A DEFLECTION ANGLE OF FORTY-SIX DEGREES, TWELVE MINUTES (46°12') TO THE RIGHT A DISTANCE OF FORTY-FOUR AND SEVEN-TENTHS (44.7) FEET TO THE NORTH QUARTER-QUARTER (1/4-1/4) LINE OF SAID SECTION TWENTY-THREE (23); THENCE EAST ALONG SAID NORTH QUARTER-QUARTER (1/4-1/4) LINE A DISTANCE OF THREE HUNDRED EIGHTY AND EIGHT-TENTHS (380.8) FEET TO POINT OF BEGINNING. 6. ALL THAT PART OF GOVERNMENT LOT SIX (6), SECTION FOURTEEN (14), TOWNSHIP TWENTY-EIGHT (28), RANGE TWENTY-THREE (23), WHICH LIES SOUTHERLY OF THE CENTER LINE OF SIBLEY MEMORIAL HIGHWAY (SUBJECT TO SAID HIGHWAY) AND ALSO THE NORTH QUARTER (N 1/4) OF THE NORTHEAST QUARTER (NE 1/4) OF THE NORTHEAST QUARTER (NE 1/4) OF SECTION TWENTY-THREE (23), TOWNSHIP TWENTY-EIGHT (28), RANGE TWENTY-THREE (23), SUBJECT TO EASEMENT FOR PUBLIC UTILITY. EXCEPT, THE EASTERLY NINE HUNDRED FORTY FIVE (945) FEET OF ALL THAT PART OF GOVERNMENT LOT SIX (6), SECTION FOURTEEN (14), TOWNSHIP TWENTY EIGHT (28), RANGE TWENTY THREE (23), WHICH LIES SOUTHERLY OF THE CENTER LINE OF SIBLEY MEMORIAL HIGHWAY (SUBJECT TO SAID HIGHWAY); AND ALSO THE EASTERLY NINE HUNDRED FORTY FIVE (945) FEET OF THE NORTH QUARTER (N 1/4) OF THE NORTHEAST QUARTER (NE 1/4) OF THE NORTHEAST QUARTER (NE 1/4) OF SECTION TWENTY THREE (23), TOWNSHIP TWENTY EIGHT (28), RANGE TWENTY THREE (23), SUBJECT TO EASEMENTS OF RECORD. ALSO EXCEPT, THAT PART OF TRACT A DESCRIBED BELOW: TRACT A. THAT PART OF GOVERNMENT LOT 6 OF SECTION 14, TOWNSHIP 28 NORTH, RANGE 23 WEST, DAKOTA COUNTY, MINNESOTA, LYING SOUTHERLY OF THE SOUTHERLY RIGHT OF WAY LINE OF TRUNK HIGHWAY NO. 13 AS NOW LOCATED AND ESTABLISHED; EXCEPT THE EAST 945 FEET THEREOF; WHICH LIES NORTHWESTERLY OF A LINE PARALLEL WITH AND DISTANT 60 FEET SOUTHEASTERLY OF LINE DESCRIBED BELOW: LINE 1. BEGINNING AT A POINT ON THE EAST LINE OF SAID SECTION 14, DISTANT 1323.6 FEET NORTH OF THE SOUTHEAST CORNER THEREOF; THENCE RUN SOUTHWESTERLY AT AN ANGLE OF 48 DEGREES 53 MINUTES 50 SECONDS FROM SAID EAST SECTION LINE (MEASURED FROM SOUTH TO WEST) FOR 1174.61 FEET; THENCE DEFLECT TO THE LEFT ON A TANGENTIAL CURVE HAVING A RADIUS OF 5729.58 FEET AND A DELTA ANGLE OF 8 DEGREES 30 MINUTES 22 SECONDS FOR 850.61 FEET AND THERE TERMINATING. EXCEPT THAT PART OF GOVERNMENT LOT SIX, SECTION FOURTEEN, TOWNSHIP TWENTY EIGHT NORTH, RANGE TWENTY THREE WEST LYING ADJACENT TO AND WITHIN SIXTY FEET SOUTHEASTERLY OF THE CENTERLINE AS MEASURED AT RIGHT ANGLES OF SIBLEY MEMORIAL HIGHWAY, ALSO KNOWN AS TRUNK HIGHWAY 13, AS TRAVELED ON JULY 17, 1960. TORRENS PARCEL 1. LOTS 7 AND 8, BLOCK 2, PARK PLACE, DAKOTA COUNTY, MN, ACCORDING TO THE PLAT THEREOF. 3000 Maxwell Avenue Newport, MN 55055 August 209, 2021 Tim Benetti, Community Development Director City of Mendota Heights Sent electronically to: timb@mendota-heights.com Dear Mr. Benetti: Following winter storm Uri in early 2021, utilities across the nation started taking harder looks at the reliability of their infrastructure. Xcel Energy’s electric and gas grids performed well during the extreme cold, but our closer look identified important improvements to make to our natural gas facilities serving the east metro area. This year has been a sprint for our engineers and planners to identify needs, determine solutions and create construction plans for projects to be complete before the 2021 heating season. As a result of this work, we have three projects occurring – at gas facilities in Maplewood, Inver Grove Heights and Mendota Heights. These projects are in keeping with MN Office of Pipeline Safety standards. The OPS has been heavily engaged in this process and is requiring this work be completed. Our Sibley Plant is located within the Mississippi River Critical Area. Fortunately, its location is naturally screened from most angles. Work will include equipment upgrades inside of two existing buildings, with an elevated pipe passing between the two buildings. There will be new facilities well away from the property edge which will be enclosed by a new structure. The biggest visual impact will be a 30’ air tank which stands slightly taller than the existing buildings. There will be no changes to site grading, use, or traffic in and out of the facility. We are aware of the importance of the Mississippi River Critical Area and anticipate that this project will allow our Sibley Plant to continue to operate out of sight and out of mind for the community. While timelines are tight, approval of the administrative review or our Critical Area Permit will allow us to complete this work in time for the upcoming heating season. Kind Regards, Jake Sedlacek Manager, Community Relations and Econ. Development Date: August 19, 2021 To: Mayor and City Council From: Mark McNeill, City Administrator Subject: Special Parks Fund—Oheyawahe/Historic Pilot Knob Bonding Application Comment: Introduction: The Council is requested to approve a commitment of up to $50,000 from the Special Parks Fund (SPF), as a local match to for the $1.2 million state bonding request for capital improvements to Oheyawahe/Historic Pilot Knob (Oheyawahe). Background: Although Oheyawahe is a city-owned park, it is also an important cultural and historical asset to the Twin Cities region, the State of Minnesota, and the United States. It is on the National Registry of Historic Places. Given this significance, City staff and members of the Oheyawahe Task Force prepared and submitted a state bonding application to fund proposed capital improvements to Oheyawahe this past June. These improvements, based on the preliminary work of the Task Force and previously reviewed by the City Council, include addressing existing safety and accessibility concerns with additional/improved trails and parking, development of two gathering areas with kiosks and additional interpretive signage (based on the outcome of the Minnesota Historical Society grant recently awarded to the City), natural resource enhancements, and the design and construction of a new shelter building. The $1.2 million application was submitted in June without a city financial match. However, history has demonstrated that there is a higher likelihood of Legislative approval if there is a local match. The bonding application may be amended until October 1, 2021. Budget Impact: The current status of the SPF is as follows: $700,000 Current Balance - 215,000 Wentworth Park Shelter Building - 100,000 Mendakota dugouts - 100,000 Paving of hockey rink for pickleball $ 285,000 Remaining Balance Assuming that the above mentioned projects proceed and utilize SPF funding, the requested allocation of $50,000 as leverage for the $1.2 million appropriation would maintain a sufficient balance to meet the adopted City policy of retaining a minimum $200,000 balance in the SPF at all times. The City Attorney has been consulted and indicates that the proposed match meets allowed SPF eligibility. If new residential development activity occurs in the City, additional revenue may be available to increase the SPF. If the City is unsuccessful in obtaining the requested bond funds, the $50,000 would remain in the SPF. Recommendation: We recommend that the City amend the state bonding application and include $50,000 from the SPF as a local match to improve the City’s chances of obtaining state bond funds for improvements to Oheyawahe. Action Required: If the Council concurs, it should, by motion, authorize staff to amend the Oheyawahe bonding proposal to include a $50,000 cash match, derived from the City’s Special Parks Fund. Mark McNeill City Administrator cc: Gail Lewellan, PK Task Force Chair Al Singer, PK Task Force, Vice-Chair