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HomeMy WebLinkAbout03-12-07-R ~ ~~HILLS Approved: 3/26/07 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MARCH 12, 2007; 7:00 P.M. ARDEN HILLS CITY COUNCIL CHAMBERS PLEDGE OF ALLEGIANCE CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order the regular City Council meeting at 7:02 p.m. Present: Mayor Stan Harpstead, Councihnembers David Grant, Brenda Holden, David McClung, and Fran Holmes. Absent: None. Also present were City Administrator, Michelle Wolfe; Finance Director, Susan Iverson; Community Development Director, Karen Barton; Civil Engineer, Kris Giga; City Engineer, Deb Bloom; Assistant City Administrator, Schawn Johnson; City Planner, James Lehnhoff; and Recording Secretary, Nancie Hoover. 1. APPROVAL OF MEETING AGENDA Mayor Harpstead moved to amend the agenda to include item 8A-2. MOTION: Councihnember Grant moved and Councihnember Hohnes seconded a motion to approve the meeting agenda as amended. The motion carried unanimously (5-0). 2. PUBLIC INOUlRIES / INFORMATIONAL None. 3. APPROVAL OF MINUTES A. Februarv 26. 2007 City Council Meetine: B. February 20. 2007 Work Session Meetine: ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 2 MOTION: Councihnember Holden moved and Councihnember Grant seconded a motion to approve the February 20, 2007 Work Session Meeting Minutes and the February 26, 2007 City Council Meeting as written. The motion carried unanimously (5-0). 4. CONSENT CALENDAR a. Claims and Payroll b.l. Motion to Adopt Ordinance #385 Amending the City of Arden Hills Boards, Committees, Commissions, and Appointed Bodies Section ofthe City Code b.2. Motion to Approve the printing of Legal Notice Summarizing Ordinance No. 385 - Amending the City of Arden Hills Boards, Committees, Commissions, and Appointed Bodies Section ofthe City Code c. Resolution 07-38: Approve the Formation of the Financial Planning and Analysis Committee d. Motion to ,A.doflt the 2007 Work Session Sehedule e. Resolution 07-33: Approving the Final Plat of Burroughs Lane and the Development Agreement in Planning Case 06-038 Based on a Finding that the Final Plat is in Conformance with the Conditions ofthe Preliminary Plat in Plauning Case 06-013 and the City's Subdivision Ordinance, Subject to the Seven Conditions in Planning Case 06038 f. Motion to Approve Change Order #3 to Amt Construction in the Amount of $106,477.46 for the 2006 PMP Project-Ridgewood Neighborhood g. Motion to Approve Payment #7 to Arnt Construction in the Amount of $124,995.75 for the 2006 PMP Project- Ridgewood Neighborhood MOTION: Councilmember Grant moved and Councilmember Holden seconded a motion to approve the Consent Calendar and to authorize execution of all necessary documents contained therein. The motion carried unanimously (5-0). 5. PULLED CONSENT ITEMS None. 6. PUBLIC HEARINGS A. Resolution 07-35: Approvine: the Partial Vacation of the Utilitv Easement for Arden Hills Lift Station #12 at 3685 New Brie:hton Road as proposed in Plannine: Case 07- 001. Mr. Lehuhoff stated that on July 31, 2006, the City Council approved a preliminary plat to reconfigure 3685 New Brighton Road and 3695 New Brighton Road into four new lots. Condition one of the preliminary plat approval required a partial vacation of the City's utility easement on proposed lot three. The area to be vacated would be used for a driveway to access a future dwelling on lot three. The easement is approximately 8,600 square feet and lift station 12 is located on the easement. There was a concern brought forward that the remaining utility ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 3 easement may not be sufficient for reconstructing the lift station in the future. Staff reviewed the easement request further and determined that while the remaining easement would probably be sufficient, enlarging the remaining easement by moving the eastern boundary ten feet to the east would provide an additional safeguard for construction work around the lift station. With the boundary adjustment, the City Engineer determined that partially vacating the easement would not impact the function, maintenance, or reconstruction ofthe lift station. Mayor Harpstead opened the public hearing at 7:14 p.m. There were no comments made. Mayor Harpstead closed the public hearing at 7:15 p.m. Councilmember Holmes asked if the additional ten feet would accommodate reconstruction of the lift station and ifthe Public Works Director had reviewed this. Mr. Lehnhoffreplied that yes the space is sufficient. Civil Engineer Kris Giga replied that she had reviewed the application with the Public Works Director. Councilmember Holmes commented that the original size of the lift station was 8,600 square feet and it is now 2,000 square feet smaller and asked what the usual size of such projects was. Ms. Giga replied that enough space is provided to dig a trench if needed. MOTION: Councihnember McClung moved and Councilmember Holmes seconded a motion to approve Resolution 07-35: Approving the Partial Vacation of the Utility Easement for Arden Hills Lift Station #12 at 3685 New Brighton Road as proposed in Planning Case 07-001 subject to moving the eastern border of the easement ten feet to the east. The motion carried unanimously (5-0). 7. NEW BUSINESS AI. Resolution 07-36: Approvine: the Tonv Schmidt Ree:ional Park Master Plan. Ms. Olson gave a brief review of the Tony Schmidt Regional Park Master Plan and introduced Greg Mack, Ramsey County Parks and Recreation. Mr. Mack discussed the swapping of priorities three and four of the master plan as suggested at the February PTRC meeting and reviewed the planned trails and next steps. Councilmember Holmes asked about two and three being similar. Mr. Mack replied that two and three are quite distinct and that three is going to require a significant boardwalk to get through the wetlands. It would be preferred, that over time, several trails would be incorporated depending on the request to the Metropolitan Council. ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 4 Councilmember Holden asked about the waste site for recycling yard waste being removed and would it be replaced. Mr. Mack replied that there was a similar situation in Shoreview and it was moved to the edge of the park property. In this situation the waste site could stay in the park or a suitable location will be found for relocation. Councilmember Grant asked about boundaries and acquisitions and a trail that is slated to go around the backside of the lake. Mr. Mack replied that there are four properties that are not owned by the county. The property owners have been approached about sale of the property. The County position is not to heavily pursue the acquisition of property unless it comes for sale. The library would be a place to get space for a trail through the area. Parcel four is part of the City and it is planning to make a paved trail up to County Road E2. Parcel five is in Mounds View School district and at some point construction would require some connection on the property. Councilmember Grant asked about parcel two being purchased or ifthere is another option to go around the property. Mr. Mack stated that there are other options but in the long term it would be best to try to acquire parcel 2 if it came for sale. Councilmember Grant asked if the trail could be located north of the parcel. Mr. Mack replied yes, it's not an absolute requirement to acquire have the property, but it is the desire to own the property if it becomes available. Councilmember McClung stated that Tony Schmidt Park is an asset to the City and county and that many people do use the yard waste site and although he would like to see the best park possible he doesn't want to see the yard waste benefit lost. Mayor Harpstead stated 287,000 visitors used the park in 2005, and asked if the visitor number would increase by 100,000, is parking adequate. Mr. Mack replied the capacities of parking lots are working with the exceptions of some boat trailer parking. He said the majority of visitors will be coming into the park system by foot or bike from their own neighborhoods. He doesn't see it as a destination trailhead causing a parking issue. Mayor Harpstead asked if anyone in the audience would like to comment on this issue. Peggy Magnuson, 1963 W County Road E2, stated that she is encouraged by the trail system but it looks like the trail is going through her back yard. She would prefer the trail didn't go through her backyard. She has been told her farm is the second oldest in Ramsey County and registered with the Historical Society and asked if she sold would the house be torn down. She also asked what would happen if she sold to her children. Mr. Mack stated that the trail could be rerouted. He was unaware of the house being on the historical record but that it could be an asset to the park system. He also stated that the County would honor the sale to her children as being in the same family. Councilmember Holden asked for clarification of the house being on the historical record. Ms. Magnuson stated that she doesn't know for sure, but was told by the previous owner 23 years ago that it was being registered. ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 5 Councilmember Grant asked that Mr. Mack's comments about the sale of the house to the children being considered as staying in the family be on record. Councilmember Holden asked for the definition of]ong term. Mr. Mack stated that the County is in it for the long term and the properties would be preserved. This isn't a plan for a few years. MOTION: Councilmember McClung moved and Councihnember Holmes seconded a motion to approve Resolution 07-36: Approving the Tony Schmidt Regional Park Master Plan with the swapping of priorities three and four. The motion carried unanimously (5-0). A2. Resolution 07-37: Supportine: the Rice Creek North Ree:ional Trail. Ms. Olson introduced Mr. Mack as the presenter for Resolution 07-37 Mr. Mack discussed the trail system planned. A $450,000 grant will be used to construct the trail. An at-grade crossing with a safe haven will be at County Road H. Councilmember Holmes asked if the trail had to be circular. Mr. Mack stated that at this time yes, but ultimately the county would like to have a route that would follow the creek and go under Interstate 35, Highway 10, and County Road H. Mayor Harpstead asked if there was proper fencing maintained on the trail. Mr. Mack replied that yes, on the east side to protect from construction but not on the west side. Councilmember Grant asked if the fence would allow wildlife to move freely. Mr. Mack replied the wildlife corridor will not be affected. MOTION: Councihnember Grant moved and Councilmember McClung seconded a motion to approve Resolution 07-37: Supporting the Rice Creek North Regional Trail. The motion carried unanimously (5-0). B. 2006 Review of the Joint Powers Ae:reement with the City of Roseville for Ene:ineerine: Services Ms. Bloom, City Engineer with Arden Hills and employed by the City of Roseville, discussed how the agreement between Arden Hills and Roseville for City Engineering services worked. Ms. Giga discussed work performed by the engineering staff in 2006 and the activities and goals for 2007. The PMP mill and overlay project has been advertised and bids are expected this week. Councilmember Holden asked what defines final costs for a project. Ms. Bloom replied that total cost includes land acquisition, employee costs, basically all costs associated with a proj ect. Councilmember Grant asked about the inflow and infiltration (1&1) project cost being about $100,000. Ms. Giga stated that about $500,000 was the surcharge amount spread over five years, ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 6 Councilmember McClung stated that it has been pleasure working with the engmeenng department and thinks it has been a great partnership. so this year's cost is $100,000. But if the 1&1 problem is resolved for less than that amount, the remaining surcharge would be eliminated. Ms. Wolfe stated that the addition of the agreement with Roseville has been a tremendous tool for responding to the council and the residents. Councilmember Grant asked about coordinating efforts with Falcon Heights as well. Ms. Bloom replied that the agreement with Falcon Heights is less formal and more on an as needed basis, but Roseville is always looking for ways to partner with neighboring communities, save money, and provide good services. C1. Motion to Authorize the City Ene:ineer to Prepare the Feasibility Report for the 2008 PMP Proiect Ms. Giga reported that staff is beginning to look at the 2008 PMP. In order to move forward and advertise the proj ect early to obtain competitive bids, staff is requesting the authorization to prepare a feasibility report. Mayor Harpstead asked if this was a normal time frame to start work on 2008 projects. Ms. Giga stated that due to the scope of the project, getting the residents involved and getting competitive bids for construction, it is the right time to start work on this. Ms. Wolfe stated that this is a little earlier than in the past, but as Ms. Giga stated it is to work with the residents and get earlier bids. Councilmember Grant asked about storm drainage and watermain improvements costs and wants to know what the fund balances are. Ms. Iverson said she is working on the funds and will have a better idea of the balances soon. Councilmember Holden asked if Roseville does reconstruction every year. Ms. Bloom said no, but they do an overlay project every year. Councilmember Holden stated that looking at 2008 this soon seems a little premature and not having the fund balances available she would not be in favor ofthis tonight. Councilmember Holmes stated that it would be helpful to publish what the plans are for the next five years so residents are aware of what the City is planning. Ms. Bloom agreed that it is good to get the residents involved as soon as possible to get their questions and concerns answered. Councilmember Holmes said that five years would be a good time so residents can start saving for the improvements that will be assessed. Councilmember McClung stated that it is important to move forward with the improvements. ARDEN HILLS CITY COUNCIL-MARCH 12, 2007 7 Councilmember Grant asked if the City were to go forward with the research on the project, would the research still be applicable for 2009. Ms. Giga replied yes. Councilmember Holden asked what the 2009 CIP program is. Ms. Giga said that some 2009 overlay projects were moved to 2007 and a small neighborhood is scheduled for reconstruction. Councilmember Holden asked what the cost of a feasibility report would be. Ms. Bloom replied the estimate would be $95,000. Mayor Harpstead asked what the feasibility report would provide. Ms. Bloom replied that it would include specific conditions of streets, preliminary designs, and results from meetings with residents. MOTION: Councilmember Holden moved and Councihnember Grant seconded a motion to authorize the City Engineer to prepare the feasibility report for the 2008 PMP Project. The motion carried (4-1). (Councihnember Holden voted against the motion.) C2. Motion to Amend the Construction Al!:reement with the City of Roseville for the 2008 PMP Proiect Ms. Giga stated that Exhibit A of the agreement was amended to include the additional streets that were added this evening. MOTION: Councihnember Grant moved and Councilmember Holden seconded a motion to amend the Construction Agreement with the City of Roseville for the 2008 PMP Project. The motion carried unanimously (5-0). D. Resolution 07-34: Approvinl!: the Final Plat of Lake Johanna Woods and the Development Al!:reement in Planninl!: Case 06039 Based on a Findinl!: that the Final Plat is in Conformance with the Conditions ofthe Preliminarv Plat in Planninl!: Case 06-026 and the City's Subdivision Ordinance, Subiect to the Thirteen Conditions in Planninl!: Case 06-039 Mr. Lehnhoff stated that on September 11,2006, the City Council approved a preliminary plat to reconfigure 1600 Lake Johanna Boulevard. into three conforming lots. The Final Plat was reviewed by the Planning Commission at their February 7, 2007, meeting and they are recommending approval subject to twelve conditions. Staff is recommending one additional condition regarding tree protection. The remaining issue is the park dedication fee. The applicant submitted an official appraisal for lots two and three. The maximum park dedication fee for the two lots would be $22,200, which is six percent of the appraised market value of the land. State Statutes require the City to set a reasonable park dedication fee that is proportional to the impact of the subdivision. In order to calculate a fair and proportional park dedication fee, a running average of previous park dedication fees was used. The proposed park dedication fee is $6,276 per lot, which is ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 8 comparable to the recently approved Final Plat of Burroughs Lane. The property owners have submitted a letter to the City Council requesting a waiver of the park dedication fee. Bob Meinzer, 1600 Lake Johanna Boulevard, read a statement from the ordinance and stated that he respectively disagrees that there are two separate issues of the subdivision and the easement. He stated that he has been a good citizen of the city and gave 20,000 square feet for a storm drainage easement, which is a public service and the city should waive the park dedication fee. He stated that if the City had not asked for the easement, they never would have subdivided the property. Councilmember Holmes asked why, if the City didn't have to put the storm water on the land, they agreed to it. Arlene Boutin, 1600 Lake Johanna Boulevard. stated that she was presented with two plans from the City. In Plan A the City would take the easement and in Plan B the water would be routed through their property and ruin the land so they felt they didn't have a choice. MOTION: Councilmember McClung moved and Councihnember Holden seconded a motion to approve Resolution 07-34: Approving the Final Plat of Lake Johanna Woods and the Development Agreement in Planning Case 06039 Based on a Finding that the Final Plat is in Conformance with the Conditions of the Preliminary Plat in Planning Case 06-026 and the City's Subdivision Ordinance, subject to the Thirteen Conditions in Planning Case 06-039. Councilmember McClung moved and Councihnember Grant seconded a motion to amend condition five to read a park dedication fee of $12,552 in place of$6,276. The motion to amend carried (4-0-1). (Councilmember Hohnes abstained.) Mayor Harpstead stated he appreciates the difficulties of the homeowner and feels that the park dedications fees are a part of the quality of the city and would not like to trade off the fees for easements. Councilmember Holmes asked if the property owner were made aware of the park dedication fee. Mr. Lehnhoff replied they have been aware of the fee since at least September of 2006 and was included as a condition with the preliminary plat. In the preliminary plat report, there was a potential range for the park dedication fee, which was higher than what the park dedication fee was set at it tonight. It is likely the park dedication fee was discussed sooner. 8. UNFINISHED BUSINESS A.l Motion to Approve the Preliminarv Development Al!:reement with CRR LLC relatinl!: to the purchase and redevelopment of the TCAAP Property Ms. Barton introduced Mr. Bubul, of Kennedy and Graven, to discuss the development agreement with CRR, LLC. ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 9 Mr. Bubul pointed out the requested changes to Section 6, lOB and 10D. The last provision in 10D, CRR has not accepted due to potential liability of different. scenarios. CRR is concerned with the City defaulting. Two options for the Council to consider are to approve the agreement with the language removed or to get legal counsel to request additional talks with CRR. Mayor Harpstead asked about other imposed language being removed or included from the last meeting (at CRR's suggestion) and Mr. Bubul stated that the words removed or included were not substantive. Councilmember Holmes asked about the agreement in which Mr. Bubul stated that some scenarios are not spelled out if the City defaults. Mr. Bubul replied the difficulty has been that CRR would like to spell it out, but the City would not like to do that. The City wants to spell out CRR liability, but not the City's liability. Councilmember Holmes commented about section lOA and that the City would only rescind or terminate according to section lO(a), therefore the money would be returned. Mr. Bubul replied that the argument of CRR is that is what the contract says, but what if the City does, for some unknown reason, rescind the contract. Mayor Harpstead clarified that the City would not get the money from the federal government. Mayor Harpstead reiterated that the City has agreed to work with CRR as the developer, with that said, things can fall apart in ways that are unexpected and things that fall apart in expected ways are already covered. Part of the process is to use outside experts we had previous interim agreement but those agreements have ended so Council has set out to create another interim agreement to enable the City and CRR to write the fmal plan agreement. Part of the reason the City took on a developer was to have the developer assume part of the risk. Councilmember Grant stated that he was part of the Council during the first and second interim agreement and the City was very risk adverse to the development of the property, which is why they hired CRR. Councilmember Grant asked if the attorneys for CRR were internal or external. Mr. Bubul replied that is was outside counsel of Fredrickson and Byron. Mr. Bubul stated that the agreement has always been with CRR and they are now going through a name change to Ryan Rehbein Land Development (RRLD). Rick Collins, VP of Development, Ryan Companies, stated that RRLD would like to have a direct contract with the federal government, but the government doesn't allow it, therefore RRLD needs an agreement with the City, which in turn has the agreement with the federal government. He stated that if the City rescinds but the GSA doesn't agree with the recession, the City would not get the earnest money back and RRLD would lose their money. RRLD and the City would then work together to get the money back from the GSA. If after all avenues had been exhausted and the GSA still did not return the earnest money, then RRLD would concede and not pursue the City for the earnest money. However, if the City refuses to assist RRLD in pursuing the return of ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 10 the earnest money or if the City intentionally defaults, RRLD would like to have the opportnnity to take the City to court if necessary. Councilmember Holden stated that since the last interim development has lapsed, the City has tried over and over again to engage RRLD and the statement that the City wouldn't assist RRLD is insulting. Mr. Collins stated that he doesn't see that it would happen, but in the very rare case that the City doesn't do what RRLD recommends, RRLD would like to have the means to collect the earnest money. Chuck Diessner, Legal Counsel for RRLD, stated that he and Mr. Bubul have met many times to discuss the contract. In section 12, if there is a reason for termination, RRLD has only three remedies. The document is written to limit RRLD's remedies and it is written to absolve the City so RRLD will not be able to recover the earnest money. RRLD is putting down 2.5 million dollars earnest money and RRLD has no control over the money. The City has control of the money. Councilmember Holmes stated that if the GSA decides not to return the money, it is a risk RRLD should take. Mr. Diesner stated that RRLD cannot take action against GSA since the contract is with the City, and therefore the City should agree to assist in recovering the earnest money. Mayor Harpstead stated that the City and RRLD should be able to build a relationship so the scenarios stated don't happen. Mr. Collins stated that ifRRLD makes an error, they expect to absorb the risk and responsibility. But RRLD doesn't have any recourse because they don't have the contract with the GSA. RRLD is only asking for the same consideration that the City is getting for protection. Couucilmember Holden asked for a definition of joint risk. Mr. Collins stated that RRLD would bear the cost of litigation. The only cost to the City would be involvement of City staff. The City and RRLD would jointly try to demonstrate that the money should be returned. Mr. Bubul stated that this discussion has pointed out the difficulties the agreement has encountered. RRLD has a strong interest in protecting the earnest money and the City has a strong interest in being sure the City does not have any liability to the earnest money. Mayor Harpstead asked what between now and closing could initiate the GSA declaring a default. Mr. Bubul replied that he wasn't the best person to answer that; Attorney Mike. Comodeca would be better suited to respond. Mayor Harpstead said the question should probably be posed to Mike Comodeca. Councilmember McClung asked about Section C on page 8. What would be the difficulty of striking "and the current list of consultants". Mr. Bubul said there would be nothing wrong with that if the Council felt it was necessary. The City owns the list and with ten days notice the City can make changes to the list. ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 11 Councihnember Holmes stated that she feels the current list of consultants should stay as written at this time. Mayor Harpstead addressed the two wording changes requested by RRLD. In Section 10, subsection B, romanette iv, delete the words "designated effective" and insert "in it's sole discretion" after the City. MOTION: Councilmember Holden moved and Mayor Harpstead seconded a motion to approve the Preliminary Development Agreement with RRLD relating to the purchase and redevelopment of the TCAAP Property. The motion carried (4-1). (Councihnember McClung voted against the motion.) MOTION: Mayor Harpstead moved and Councihnember Holden seconded a motion to approve the amended language above in Section 10, subsection B, romanette iv. The motion carried unanimously (5-0). MOTION: Councilmember Hohnes moved and Mayor Harpstead seconded a motion to approve the changes from CRR LLC to RRLD in the Preliminary Development Agreement. The motion carried unanimously (5-0). A.2 Motion to Approve the First Amendment to the Fundinl!: and Guaranty Al!:reement with CRR, LLC relatinl!: to the purchase and redevelopment of the TCAAP Property Mr. Bubul stated that language in the original funding agreement may be misinterpreted as an assignment over to RRLD and could be a potential default. The language was clarified to state the actual purpose of the original wording. MOTION: Councilmember Hohnes moved and Councihnember Grant seconded a motion to approve the First Amendment to the Funding and Guaranty Agreement with CRR LLC relating to the purchase and redevelopment of the TCAAP Property and to allow legal Council to make necessary changes from CRR LLC to RRLD. The motion carried unanimously (5-0). B. TCAAP Update Ms. Barton stated that staff was traveling to Boston for a meeting with the GSA to discuss remediation credit categories, financial assurance, and set a date by which to reach agreement on the remediation credits. The first TCAAP newsletter was sent out. The Master Development Planning process continues to move forward. On April 26 an open house will be held where there will be several preliminary plans for public viewing and feedback. Ms Wolfe stated that she is working on a call-in number for the GSA meeting on Wednesday for the City Council members to use. ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 12 Councilmember Holmes asked if the delays by the GSA could change the closing dates. Ms. Wolfe stated that it could, but it is the City and RRLD's intention to meet all ofthese deadlines. 9. CITY COUNCIL REPORTS Mayor Harpstead stated he and Ms. Wolfe met with the Mayor and City Administrator of Mounds View to discuss the intersection shared at County Road H and Interstate 35 by the two cities as related to TCAAP. Ms. Wolfe reported that staff met with the City of Shore view to discuss the TCAAP project. Councilmember Grant stated that he received maps related to TCAAP, but no key to read the maps and asked staff to pass along the missing information in the weekly packet. Councilmember Holmes wanted to remind those with newsletter articles due that they were to be turned in by March 16. Mayor Harpstead adjourned the Re ili~etJ~ City Administrator NOTICE OF MEETINGS The next Council Meeting will be held Monday, March 26,2007 at 7:00 p.m. at the Arden Hills Council Chambers.