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HomeMy WebLinkAboutCC 10-14-1997 MINUTES CITY QF ARDEN HILLS, MINNESOTA . REGULAR CITY COUNCIL MEETING QCTQBER 14, 1997 7:30 P.M. - ARMY RESERVE CENTER CALL TO ORDERlROLL CALL Pursuant to due call and notice thereof, Mayor Dennis Probst called to order the regular City Council meeting at 7:44 p.m. Present: Mayor Dennis Probst, Councilmembers Beverly Aplikowski, Dale Hicks, Susan Keirn, and Paul Malone. Absent: None. Also present were: City Administrator, Brian Fritsinger; City Accountant, Terry Post; City Attorney, Jerry Fila; COl11munity Development Director, Kevin Ringwald; Parks & Recreation Director, Cindy Walsh; Public Works Superintendent, Dwayne Stafford; Administrative Secretary, Sheila Stowell; and Recording Secretary, Carla Wirth. ADQPT AGENDA . Mr. Brian Fritsinger, City Administrator, distributed a Revised Agenda and noted the following revised items under "Unfinished and New Business": the deletion of Item 6.a.3., "Tax Increment Financing (TIF) Update, which would be addressed by the Economic Development Authority; the deletion ofItem 6.a.5., Resolution #97-48, Providing for the Sale of $3,050,000 General Obligation Tax Increment Bonds, Series 1997A; the addition of Item 9.a.4, "Change Qrder No. I, Fourteenth Street NE Road and Utility Project; and the addition ofItel11 9.a.5., Resolution #97- 50, Authorizing Condemnation of Property in Connection with Fourteenth Street NE Road and Utility Project. Mr. Fritsinger did suggest that staff be allowed to provide an update with regard to the sale of TIF bonds for the Welsh project. Mayor Probst suggested adding this update to the Agenda as Item 9.a.6 on the Revised Agenda. MOTION: Aplikowski moved and Keim seconded a motion to adopt the agenda for the October 14, 1997, Regular City Council meeting as revised. The motion carried unanimously (5-0). APPROVAL OF MINUTES A. September 22, 1997, Special Meeting, Consulting Engineers Interviews B. September 22, 1997, Joint Worksession, Cities of Shoreview & North Oaks . C. September 22, 1997, Special Meeting D. September 29, 1997, Regular Meeting ARDEN HILLS CITY COUNCIL - OCTOBER 14.1997 2 . Councilmember Malone requested the following change be made to the September 29, 1997, Regular Meeting minutes: Page 6, sixth line of MOTION: Change the word "rational" to "rationale." MOTION: Keim 1110ved and Aplikowski seconded a motion to approve the September 22, 1997, Special Meeting, Consulting Engineers Interviews; September 22,1997, Joint Worksession, Cities of Shoreview & North Oaks; September 22, 1997, Special Meeting as presented and the September 29, 1997, Regular Council Meeting minutes as amended. The motion carried unanimously (5-0). CQNSENT CALENDAR A. Claims and Payroll B. Resolution #97 -46, Authorizing Application for Recycling Grant Funds for 1998 C. Tony Schmidt Park Task Force Appointments D. Resolution #97-49, Resolution Concurring with Ramsey County to Establish County Road F as a County State Aid Highway MQTION: Malone moved and Keim seconded a 1110tion to approve the Consent Calendar as submitted and authorize execution of all necessary documents contained therein. . The motion carried unanil110usly (5-0). PUBLIC CQMMENTS Mayor Probst invited the audience to address the Council on any issue not already on the agenda. No one appeared to address the Council for Public Comments. UNFINISHED AND NEW BUSINESS A. Gateway Bnsiness District (GBD) 1. Planning Case #97-06, Welsh, Progress Update Mr. Fritsinger advised that the developer has provided some additional information since the Council packet was prepared. The Council spent several l11inutes to review the updated staff report. Mr. Kevin Ringwald, Community Development Director, explained that staff has been dealing with Naegele for quite some time to acquire parcels of property and address the billboards. One of the issues staff has been dealing with is to get Fairway Outdoor Advertising to agree to the Purchase Agreement. Their attorney had concern about approving the proposal to swap the billboards, so staff has worked on language to indicate that if the City is working with a project . such as the Gateway Business District (GBD), and if required, billboards could be relocated as long as the number of billboards decrease, making the property less non-conforming. ARDEN HILLS CITY COUNCIL - OCTOBER 14.1997 3 . In this case, the number of billboards will decrease from seven billboard faces to tour billboard faces. He advised that Fairway Outdoor Advertising requested specific language in the City Code to address that. However, this issue was just raised and it takes a while to go through this process. Also, time is of the essence. Mr. Ringwald stated staff has started this process and has been working with Jeff Brown of Fairway Qutdoor Advertising. He explained that it appears both parties are following the same thoughts. I-Ie advised staff will hold a phone conference with all parties tomorrow and, hopefully, be able to conclude this long drawn-out process. Mr. Ringwald noted there is no change in the closing date (October 31, 1997) or park dedication fee. He advised that staff did l11eet with Ray Duran, Chief Maintenance of Way Officer and Wayne Hall, Director of Operations of the Minnesota Commercial Railroad on October 14, 1997 on the site of the transload operation in GBD. At that meeting, they discussed the survey information which showed them the encroachment of the transload operation onto private property. Staff discussed its desire to relocate this operation to a place which would be entirely within the railroad's right-of-way and they indicated they would relocate their operation to the south side of the railroad tracks and to restore the property on the north side of the tracks to its previous condition. Staff also discussed the City's desire to obtain a slope easement on the north side of the tracks for the relocated Fourteenth Street. The representatives of Minnesota COl11mercial Railroad stated they would not oppose such an easement and the granting of such an easel11ent would be up to the owner of the property which is MT Properties. Mr. Ringwald advised that staff has had previous discussions with MT Properties regarding the slope easement . and it appears they are in favor as long as the tenant found it acceptable. Mr. Ringwald advised that staff also discussed the potential of open-cutting the railroad tracks, rather than boring underneath them, since it is considerably less expensive. The representative of Minnesota Commercial Railroad indicated that open-cutting would be acceptable but they would need to review the timing and reconstruction plans with the City Engineer. In response to Mayor Probst, Mr. Ringwald explained that dealing with MT Properties has been quite pleasant and amenable. Jerry Filla, City Attorney, advised that the Council could consider condemning the Fairway Outdoor Advertising property ifthe Purchase Agreement is not successfully negotiated in the immediate future. As far as the agreement is concerned, he stated they are attempting to expedite it but there appears to be more concern about relocation of the sign than the sale ofthe property. He suggested that the City offer to purchase the property and allow them to use portions pending expiration of their tenant leases. He noted the contractor has indicated they are able to work around the one sign that is there. Mr. Ringwald noted the four issues relating to Tax Increment Financing (TIF). He advised that staff was informed by the applicant's consultant today that their fire consultant calculates that a ten-inch watermain is required. However, Staff has not yet seen this information and would need to verify that. . ARDEN HILLS CITY COUNCIL - OCTOBER 14. 1997 4 . Dwayne StafIord, Public Works Superintendent, reviewed the per foot costs for various dimensions of piping and estimated that the cost would not be very much more to upgrade from a ten-inch to a twelve-inch watermain. Mr. Ringwald reviewed the landscape plan which the applicant modified to enhance the north side of Phases III and IV. He pointed out the area directly behind the loading area which is the high area of the site and explained that staff is supportive of the requested landscape changes except for the placement of the easterly two groupings on Phase III and the westerly grouping on Phase IV which staff believes should be relocated north towards the conservation easement. He eXplained that this relocation towards the hill will be more effective for screening. Mr. Ringwald reported that tlle applicant's plan for parking on Phase IV still shows the "proof- of-parking" within the confines of Pond #5 and the applicant's consultant has not received the necessary approvals for the pond outlet structure from Phase IV. 2. Park Dedication, Welsh Ms. Cindy Walsh, Park and Recreation Director, explained the City Council is asked to approve the park dedication of ten percent which includes the dedication of a twenty-foot wide trail easement and $50,789.69 remaining cash in lieu, or the easement and the construction of a ten- foot wide trail. These revised figures are based on the conversation held with the Council on . September 29, 1997. Mayor Probst asked ifthe trail easement plus cash is being proposed. Ms. Walsh stated this is correct, or the applicant could construct the trail instead of the cash in lieu. Dick Zehring, Welsh Development Company, stated they are comfortable with this recol11mendation. Councilmember Hicks asked iftlle trail construction will be on the site. Ms. Walsh stated this is correct and would be around the new developl11ent area. Councill11ember Hicks asked if this would be a fair comparable financial trade. Mr. Zehring coml11ented that there may be some cost savings in construction of the trail versus $50,789.69 in cash but it depends on the precise alignment of the trail. He stated they are comfortable with either option. Councilmember Hicks asked if the City would develop the plans and specifications for this trail. Ms. Walsh stated this is correct and advised that the trail will eventually connect to the City's trail system. MOTION: Malone moved and Hicks seconded a motion to approve a park dedication Welsh . COl11panies, Phase:>rII, III, and IV, often percent which includes the dedication of a twenty-foot wide trail easement and $50,789.69 cash in lieu, or the easement ARDEN HILLS CITY COUNCIL - OCTOBER 14.1997 5 . and the construction of a ten-foot wide trail. The motion carried unanimously (5- 0). RECESS AND RECQNVENE Mr. Filla recommended the Council recess and reconvene as the EDA to address the issue Tax Increment Financing request of Welsh Development Company. Following that discussion, he recommended that the Council reconvene its meeting to complete the agenda. MOTION: Malone moved and Keirn seconded a motion to recess the meeting at 8: 15 p.m. The motion carried unanimously (5-0). Mayor Probst reconvened the l11eeting at 9:45 p.m. UNFINISHED AND NEW BUSINESS. continued 3. Resolution #97-47, Accepting Bid and Authorizing Execution of Contract in the Matter of the Fourteenth Street NE Road and Utility Project Mr. Fritsinger explained that the Council is asked to adopt Resolution #97-47, accepting bid and authorizing execution of the contract in the matter of the Fourteenth Street NE Road and Utility . Improvement Project. He reviewed thc six bids that were received ranging from a high bid of $985,818.30 to a low bid of$713,700 by Lametti and Sons of Hugo, Minnesota. He explained that Fourteenth Street was initially bid about 60 days ago, prior to some of the changes which have taken place in the construction and site plans of this project. Mr. Fritsinger asked the Council to keep in l11ind the issue of clearing and grubbing of the site and the actual changes related to the elevation shifts. At the time of the bid, conversations were about mass grading of the development site and road area because the project was expected to get underway yet this Fall. He advised that the Council has several items to consider specific to this. One of the key issues relates to the assumption that the road, in its proposed location, is the location (regardless of the Welsh project proceeding) where the City wants to locate the road. If that is agreed to, the risk is minimal. Mr. Fritsinger stated the agreement will need to be amended to allow the City to terminate should Welsh not proceed. He reported that the low bidder has agreed to allow that amendment. Mr. Fritsinger explained that the biggest issue relates to access since the developer has not closed on all of the property or financing. Also, the City has not closed on the acquisition of the Naegele property. Therefore, there is a need to receive and obtain rights of entry from those property owners. He reported that Staff has talked with Naegele about this and they have indicated they will look at it but not indicated how long it will take. Mr. Fritsinger stated he is comfortable with proceeding with award of the bid with five conditions as follows: 1. Execution of right of entry and security agreements with Welsh Company; . 2. Execution of right of entry agreement with MT Properties/MN COl11mercial Railway Company; ARDEN HILLS CITY COUNCIL - OCTOBER 14 1997 6 . 3. Additional language be inserted into the contract with Lametti which allows the City to terminate the contract at the completion of clearing and grubbing and/or completion of utility improvements; 4. Certification of plans and specifications by the City Consulting Engineer; and 5. Execution of right of entry with Naegele/Morris COl11munications. Mr. Fritsinger reported that a meeting on the certification of plans and specifications is to be held on Thursday of this week and it is hoped it can be brought to closure quickly. Mr. Filla recommended going heyond the right of entry and to also obtain easements from the Welsh Company, Railway, and Naegele to assure the City's right to keep the utilities in the ground. He recommended that the words "and easements" be inserted into recommended conditions I, 2, and 5. In response to Councilmember Malone, Mr. Ringwald explained the issue ofthe lO-inch or 12- inch watermain is from Gateway Boulevard to the back of the site to a fire hydrant that serves Phases I and II. Mr. Fritsinger advised that the City Attorney is currently evaluating additional language addressing the start date and the City's financial risk. It is also possible for a Change Order to be prepared relating to the clearing and grubbing of the site. Mr. Fritsinger reported that staff is . attempting to obtain a copy ofthe bid tabulation. MOTION: Malone 1110ved and Hicks seconded a motion to adopt Resolution #97-47, Accepting Bid and Authorizing Execution of the Contract in the Matter of the Fourteenth Street NE Road and Utility Improvement Project subject to the five conditions as amended by the City Attorney to also require the execution of easel11ents. Councill11ember Aplikowski stated this appears a bit premature and asked why it is being rushed. Mr. Fritsinger explained the l11ajor reason it is being addressed at this time is due to the late construction season and need for cOl11pletion prior to building construction next spring. The motion carried unanimously (5-0). 4. Change Order No.1, Fourteenth Street NE Road and Utility Project Mr. Stafford explained it was originally thought that Welsh COl11pany would do the grubbing, clearing and grading of the street portion of the project. But, that will not be done by Welsh and the Council, at its Septel11ber 22, 1997, meeting, authorized the expenditure of additional tax increment by the City to pay those costs. Mr. Stafford reported he received a quote from Lametti and Sons in the amount of $4,250 per acre. Based on four acres being cleared, the cost would be estimated at $17,000. He asked the Council to consider approval of this change order and . advised that another change order will be coming up to change the grade of the street since Welsh will raise the grade ofthe surrounding properties. ARDEN HILLS CITY COUNCIL" OCTOBER 14.1997 7 . MOTION: Malone moved and Keim seconded a motion to approve Change Order No. I, Fourteenth Street NE Road and Utility Project, at a cost of$17,000. The motion carried unanimously (5-0). 5. Resolution #97-50, Authorizing Condemnation of Property in Connection with Fourteenth Street NE Road and Utility Project Mr. Fritsinger explained the proposed resolution relates to the condemnation of property which the City is attempting to purchase from Naegele Outdoor Advertising. He stated he is hopeful things can be worked out tomorrow but the timing of the project has become difficult. He noted the specific language of the proposed resolution directing the continued use of all reasonable efforts for the acquisition of the property through negotiation provided that negotiations do not unreasonably delay the construction of the project. Mr. Fritsinger stated the biggest issue relates to the costs of condemnation but, in this case, the cost is relatively low. However, the question is what is being paid for the billboard and amortization of the long-term lease of the billboards and will have to be looked at carefully. Mr. Filla reported the property owner indicated they have a 1110nth-to-month lease which will impact the cost to acquire the property. . Mayor Probst noted the billboards are not correctly located. Mr. Fritsinger stated this is the staff s understanding and may play into the overall discussion. Mr. Filla stated he is hopeful that the concept of purchase and lease-back will be acceptable since it will accomplish what is needed for the City and the Welsh project. MOTION: Hicks moved and Malone seconded a motion to adopt Resolution #97-50, Authorizing Condel11nation of Property in Connection with Fourteenth Street NE Road and Utility Project. The motion passed unanimously (5-0). 6. 1997 General Obligation (G.O.) Bond - Update Mr. Fritsinger reported there still is room for refinement to the numbers, conditions, and comfort level on the project prior to proceeding to issuance of the bonds. He stated this is why he requested this item be withdrawn frOl11 the agenda. Mr. Post noted the change in the numbers from the original to present is due to the deletion of the Round Lake Boulevard reconstruction project. He also noted the impact of adding the grubbing and grading will serve to leave the bond issue at approximately $3.1 million. Mark Ruff, Ehlers and Associates, Inc., stated there is no urgency to issue the bonds and it could wait until Spring. But, they are pushing for an earlier issuance because of the current good . interest rates. He stated they will proceed with docul11ents and present options at the October 27, 1997 Council meeting. ARDEN HILLS CITY COUNCIL - OCTOBER 14. 1997 8 . Mr. Fritsinger asked if a simple l11ajority vote is needed to authorize the sale of bonds. Mr. Filla stated this is correct. B. Northwest Youth & Family Services, Joint Powers Agreement Mr. Fritsinger explained that the Council was presented with the Northwest Youth and Family Services (NYFS) Joint Powers Agreement (JP A) at the September 29, 1997, meeting. Attorney Filla has reviewed the JP A and made several revisions to the draft agreement. He explained that the Council is asked to consider approval of the JP A with the Northwest Youth & Family Services. Mr. Fritsinger noted the City has not historically acted as executor of the JP A but abided by its terms by seeking contributions from the charitable gambling organizations on behalf of the City. He asked the Council if they want to proceed with that approach or execute the JPA. Councilmel11ber Hicks asked ifthe City will be more legally responsible to pay ifthey sign the JP A. Mr. Fritsinger stated that this is correct and, if the JP A is executed, it should be included as a budget itel11 for funding. Mayor Probst stated he supports executing the JP A and believes it is silly to contribute but not execute the agreement. He noted the ability to terminate the agreement within 60 days, if desired. . Councilmember Malone stated he disagrees with this point of view. He explained that he served on the Council when this issue was raised previously and the opinion was not to contract for an expenditure like this where there is no long-term control. He noted the City needs to set its budget every year and this is not, in his opinion, one of the expenses that local government is responsible for. Councilmember Malone agreed it is difficult to say no but he believes it would be even more politically unpopular to opt out of the agreement in 60 days. Also, the City could only cancel at the end of the calendar year with notification to all parties. Councilmember Malone expressed concern about the presentation made with regard to services they provide and noted the majority of service to Arden Hills' residents is through the Senior Chore Program. Councilmember Malone restated he does to believe this is the type of service that should be funded by the City. Councilmember Aplikowski stated she has served on the Board and it is difficult to do so and not have the same vote. She stated she knows Arden Hills' residents are served by this organization but she wonders if it is not a County function to provide these services. Councilmember Malone noted that these services are not needed for the health and well-being of Arden Hills' residents. He stated he does not believe the JPA is appropriatc. Councilmember Aplikowski cOl11l11ented on the benefit received from the diversion services. . ARDEN HILLS CITY COUNCIL - OCTOBER 14. 1997 9 . Councilmember Malone asked why those numbers have changed and whether the NYFS has really been the cause for the change. Mr. Filla stated there have been changes to the draft, including a correction of section lettering, to include a specific indcx referred to as metering the changes from year to year, and adding the NYFS Bureau as a signatory to the agreement. However, he advised that the substance ofthe agreement has not changed. Councilmember Hicks stated he believes this group does a lot of good work and he would like the City to continue to participate in their funding via the mechanism used in the past. Since entering a JPA would bind the City into a budgeted item, he supports indicating the City's intention to continue its support through charitahle gambling. No action taken. ADMINISTRATOR COMMENTS Mr. Fritsinger reported on recent activities rclated to the Midwest Asphalt litigation and requested the Council schedule a closed executive meeting next Monday, Qctober 20, 1997,5:30 p.m. as part of the Worksession. . MOTION: Malone moved and Hicks seconded a motion to direct staffto schedule a closed executive session on Monday, October 20, 1997, at 5:30 p.m., to discuss the Midwest Asphalt litigation. The motion carried Ullanimously (5-0). COUNCIL COMMENTS Councilmel11ber Malone commented on the impact of the FCC's ruling to reduce the City's ability to regulate cellular towers and now its proposal to regulate broadcast towers as well. He reported on a group that can be used to formulate a reply. Mr. Fritsinger stated he will research that option. Councilmember Aplikowski noted the request of Senator Runbeck to oppose public funding for the stadium. She stated she will provide this information to staff. Mayor Probst welcomed Mr. Post back to the meeting following his recovery from an accident. meeting at 10:27 p.m. . ---.--- ARDEN HILLS CITY COUNCIL - OCTOBER 14.1997 10 . NOTICE OF MEETINGS The next regular City Council meeting will be held October 27, 1997, at 7:30 p.m. at the New Brighton Council Chambers. . .