HomeMy WebLinkAbout12/09/2002 Council MinutesAPPROVED
•1 CITY OF LINO LAKES
2 MINUTES
3
4
5 DATE : December 9, 2002
6 TIME STARTED : 6:05 P.M.
7 TIME ENDED : 8:35 P.M.
8 MEMBERS PRESENT : Councilmembers Carlson, Dahl, O'Donnell, Reinert, and
9 Mayor Bergeson
10 MEMBERS ABSENT : None
11
12 Staff members present: City Administrator, Linda Waite Smith; City Clerk, Ann Blair; Community
13 Development Director, Michael Grochala; Finance Director, Al Rolek (part); City Engineer, Jim
14 Studenski; Police Chief, Dave Pecchia; City Attorney, Bill Hawkins.
15
16 TRUTH IN TAXATION HEARING
17
18 Mayor Bergeson advised the purpose of the meeting is to review the proposed 2003 Operating Budget
19 for the City and take public comment. Action will not be taken tonight on this item but a staff
20 presentation will be given and public input received. Formal action will be considered at the
21 December 16, 2002 Council meeting.
22
• 23 Finance Director Rolek reviewed the proposed 2003 Operating Budget and Property Tax Levy. He
24 provided a PowerPoint presentation, noting the major factors in 2002 as being the State Legislature
25 property tax reform, which resulted in reduced property class rates for all property and, thus lower
26 taxable value. Also, the State also took over funding for general education for school districts,
27 discontinued HACA to cities and counties, implemented State property tax for commercial/industrial
28 and seasonal properties, and reimposed levy limits for 2002-2003 taxes which will sunset after this
29 tax season unless the Legislature extends those levy limits.
30
31 Finance Director Rolek stated the Lino Lakes levy includes $200,000 to continue to implement the
32 Vehicle Replacement Fund and to phase out the use of debt, which will result in long-term savings.
33 The levy also includes amounts for other capital needs such as City Hall capital needs, office
34 machinery, computers, and salary and wage adjustments. He advised that the levy for next year will
35 increase by 3.8% and is broken into general levy, special levy, and special PERA levy. The tax rate
36 will drop about 5.5% and the City's tax rate will go from 53.15 to 45.167 under this proposal.
37
38 Finance Director Rolek reviewed the 2002 property tax distribution for 2003, noting Lino Lakes
39 makes up about 40% in 2002 and that will be reduced to 37% in 2003. He presented a chart
40 containing a property tax computation, which identified a slight reduction in taxes on a market value
41 home of $200,000 from $2,704 in 2002 to $2,595 in 2003. This does not take into consideration any
42 appreciation in value due to reassessment or improvements on the property.
43
•44 Finance Director Rolek reviewed the budget preparation calendar used by Lino Lakes, which started
45 with establishing budget priorities and objectives at a work session in May. In June and July the
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
1 departmental budgets were prepared and on August 28, 2002 the Council reviewed the proposed
2 budget. The Council approved the preliminary tax levy and budget and set public hearing dates on
3 September 9, 2002. On September 15, 2002 the preliminary tax levy, budget, and public hearing was
4 held and certified to the County Auditor. By November 24, the County mails notice of the proposed
5 property tax and the Council is holding the Truth in Taxation hearing on the 2003 budget and tax levy
6 tonight. Finance Director Rolek explained that the Council is scheduled to adopt the final 2003
7 budget and tax levy at the December 16, 2002 meeting. The City will certify the final 2003 tax levy
8 and budget to the County Auditor by December 30, 2002.
9
10 Finance Director Rolek stated the 2003 budget will continue to implement the Vehicle Replacement
11 Fund, which allows the City to replace vehicles with current dollars rather than debt dollars. The
12 budget also includes amounts for other capital needs and continued implementation of the
13 Comprehensive Plan. Salary and wage adjustments and a contingency for unknown events or
14 emergencies is also included.
15
16 Finance Director Rolek stated the General Fund Budget for 2003 contains a slightly over 4% increase
17 from the 2002 budget. He presented information on the proposed 2003 revenues as follows: Property
18 tax 75%, license and permits 11%, Intergovernmental 6%, Fines 2%, Charges for Services 3%,
19 Interest 1% and Tire and Miscellaneous 2%.
20
21 Finance Director Rolek presented the proposed expenditures for 2003 as follows: Administration
22 4.68% increase, Community Development 3.94% decrease, Public Safety 6.34% increase, Public
• 23 Services 4.44% increase, and Other 7.11% decrease, resulting in a 4.04% increase.
24
25 Finance Director Rolek noted the water budget is slightly lower. The phone -read meter replacement
26 program will be continued but many meters have been changed out so that program will be closing.
27 He noted that debt services are decreased slightly in 2003 and it is anticipated the water rates will
28 remain the same as in 2002. He explained that a balance is accumulating in the Water Fund which
29 can be used when replacement expenses occur in the future.
30
31 Finance Director Rolek presented the proposed sewer budget, which will continue the manhole
32 replacement program and allow for increased treatment costs. The sewer rates will increase $1 per
33 quarter in 2003.
34
35 Finance Director Rolek advised that the annual cost for services for a $200,000 home is $308 for
36 police protection, $59 for fire protection, $129 for street maintenance and snow plowing, $105 for
37 parks and recreation, and $248 for sanitary sewer service.
38
39 Councilmember Carlson asked for an explanation of how the State aid applies to the City's budget.
40 Finance Director Rolek stated the City receives a number of State aids with the main State aid being
41 Local Government Aid. That is a direct revenue to the General Fund and helps fund the General Fund
42 budget. The City receives about $158,000 per year for that. Finance Director Rolek explained that
43 another State aid is the Market Value Homestead Credit, which buys down the cost of the property tax
•44 bill for homes under $400,000 in value. The City receives about $400,000 from that credit. The City
45 also receives MSA for maintenance and reconstruction of State Aid Roads. The maintenance portion
2
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 is about $160,000, goes into the General Fund, and is used to maintain those roads. He advised that
2 several other minor State aids are also received.
3
4 Councilmember Carlson asked if the road projects would be delayed should the MSA funding be
5 reduced. Finance Director Rolek stated that could impact the City's planning for those road projects
6 but it is still too early to know what the State will do with MSA funding. He stated that once the City
7 knows what the Legislature proposes, an adjustment could be made.
8
9 Councilmember Carlson stated the roads need to get done but if absolutely necessary, they could be
10 delayed. However if State funding is lost in other areas, the City is already at the maximum levy so
11 other budget items would have to be cut.
12
13 Finance Director Rolek explained that if State aid is lost there will be a definite impact to the budget
14 and action will be needed to reduce the budget. He advised that staff is in preparation for that and has
15 held discussion of various options should the State reduce any aids. However, at this point it is not
16 known what the impact will be, if any.
17
18 City Administrator Waite Smith explained that the management team has been looking at the budget
19 and is putting together plans that are layered so if the cuts equal a certain amount, then the first layer
20 of cuts would take effect, with subsequent deeper budget cuts should that be needed. She stated staff
21 will continue to refine that plan since it is anticipated there may be some cuts. Staff is being proactive
22 in considering what could happen.
• 23
24 Councilmember Carlson stated a cut would not decrease taxes to citizens but would reduce services
25 the City provides. Finance Director Rolek stated that is correct and noted the budget proposal
26 contains no new personnel for 2003.
27
28 Councilmember Dahl asked if the $150,000 MSA is for maintenance or reconstruction. Finance
29 Director Rolek stated the City receives two sources of MSA, one for reconstruction but that is not
30 received until the reconstruction project is undertaken. The City also receives a certain amount of
31 funds for maintenance, overlays, patching, sealcoating, etc. Those dollars go directly into the General
32 Fund and are incorporated into the maintenance programs.
33
34 Councilmember Dahl asked if the reconstruction funds are over and above the mentioned $150,000.
35 Finance Director Rolek stated that is correct.
36
37 Councilmember Dahl asked if the reserves roll over every year. Finance Director Rolek stated it is a
38 roll-over and an accumulation from the day the City was incorporated.
39
40 Mayor Bergeson opened the public hearing at 6:27 p.m.
41
42 No one came forward to address the 2003 Operating Budget and Property Tax Levy.
43
Ai 44 Finance Director Rolek recommended the public hearing be closed at this point and the time and date
45 announced when the 2003 budget levy will be finalized.
3
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
411) 1
2 Mayor Bergeson noted the 2003 budget levy will be acted on at the December 16, 2002 Council
3 meeting.
4
5 Councilmember O'Donnell moved to close the public hearing at 6:31 p.m. Councilmember Dahl
6 seconded the motion. Motion carried unanimously.
7
8 CONTINUATION OF FIVE-YEAR FINANCIAL PLAN HEARING
9
10 Mayor Bergeson advised that the purpose of this hearing is to review the Five -Year Financial Plan for
11 the City and take public comment. Council action will not be taken at the meeting tonight but will be
12 formally taken at the December 16, 2002 Council meeting.
13
14 Finance Director Rolek reviewed the Five -Year Financial Plan and noted that annual review of this
15 plan is mandated. He presented the four required plan elements as follows: Public Service Program
16 which estimates future public service needs, measures objectives for each department, and assesses
17 impact on the annual operating budget; Capital Improvement Plan which lists capital improvements to
18 be undertaken, cost estimates, financing methods and time schedules, and cost to operate and
19 maintain improvement; Revenue Program which proposes a revenue policy to finance public services
20 and capital improvements; and Capital Budget which is a summary of capital requirements for
21 programs and improvements and to prioritize investments in community facilities and balance with
22 available resources.
41111 23
24 Finance Director Rolek presented details of the 2003-2007 Public Services Program which has the
25 main objective to maintain or enhance service levels; maintain adequate staffing levels; establishes
26 nine new positions over five years; provides for maintenance and replacement of equipment, vehicles
27 and other capital outlay; and, provides emergency contingency funding. He advised that the proposed
28 personnel additions for the 2003-2007 Public Service Program include an informational technology
29 specialist in 2005, an engineering technician in 2005, one police officer added in 2004, 2005, 2006,
30 and 2007 for a total of four, a CSO officer in 2004, Street Maintenance worker in 2004, and a Park
31 Maintenance worker in 2006.
32
33 Finance Director Rolek reviewed the proposed personnel in the Public Services Program and
34 presented bar graphs that depicted the 2003-2007 proposed capital outlay and proposed expenditures
35 by function. He noted this proposes a 35% increase over a five year period. He then displayed a bar
36 chart identifying how the dollars are broken down by category, noting two-thirds of the City's budget
37 is utilized for personnel costs.
38
39 Finance Director Rolek presented the 2003-2007 Revenue Program and its objectives to maintain a
40 steady or reduced tax rate, factoring community growth into the estimates, permits revenue based on
41 147 new houses per year, take a realistic view towards fee-based revenue, and seeks opportunities for
42 alternate funding such as fees or grants. He displayed bar charts that depicted the 2003-2007 revenue
43 program and a tax rate analysis. He pointed out that even though the plan projects growth in
.44 expenditures, there is a corresponding reduction in the tax rates due to the City's growing tax base.
45
4
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
1 Finance Director Rolek presented the 2003-2007 Capital Improvement Program and budget which
2 includes the Road and Utility, Park and Trail, Vehicle and Equipment Replacement Programs,
3 prioritized by year of improvement; sets out the estimated cost of project and intended funding
4 sources, and sets out detailed project budgets during feasibility stages. He reviewed the road and
5 utility projects, noting the year the project is proposed indicates its priority, projects may be phased
6 over a number of years, projects are subject to availability of funding (MSA, special assessments, tax
7 levy), and projects are subject to the terms of the Charter.
8
9 Finance Director Rolek presented the road and utility projects proposed for each year from 2003 to
10 2007 as follows:
11
12 2003
13 21st Avenue Street & Storm
14 62nd Street Reconstruction
15 Black Duck Lift Station
16 Elm Street Reconstruction
17 Surface Water Management Project
18
19 2004
20 12th Avenue/Holly Drive Phase #1
21 2004 Street Reconstruction Project
22 Otter Lake Service Road
•23 Village Phase #1
24 CSAH#14-I35EtoTH#61
25 Surface Water Management
26
27 2005
28 12th Avenue/Holly Drive Phase #2
29 2005 Street Reconstruction Project
30 Cedar Street Improvements
31 CSAH #49 - County Road J to CSAH #23
32 SW Area Trunk Utilities
33 Village Phase #2
34 Well No. 5 and Pumphouse
35 Surface Water Management
36
37 2006
38 2006 Street Reconstruction
39 Trunk Sanitary Sewer
40 Trunk Watermain
41 Village Phase #3
42 Surface Water Management
43
ilk 44 2007
glir 45 2007 Street Reconstruction
5
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
.1 12th Avenue/Holly Drive Phase #3
2 Water Treatment Plant/Storage
3 CSAH #23/I -35W Interchange
4 Surface Water Management
5
6 Finance Director Rolek advised that as the projects are scheduled farther out, they are more subject to
7 change. He presented a bar graph depicting financing sources for the 2003-2007 Road and Utility
8 Projects and stated if restrictions are placed on these resources, it would impact the timeliness of the
9 project.
10
11 Finance Director Rolek presented the 2003-2007 Park and Trail Projects which he noted were greatly
12 impacted due to the defeat of the 2002 Referendum. He explained that all park and trail
13 improvements are being financed through the Dedicated Park Fund, park and trail improvements have
14 been scaled back due to the lack of funding and maintenance costs, and if funding becomes available
15 then additional park and trail improvements will be initiated. He stated the following projects are
16 slated as follows: 2003 -Clearwater Creek Park Development and Highland Meadows Park
17 Development; 2003 -2004 -Unidentified Park and Trail Improvements; and, 2005 -2007 -Unidentified
18 Park and Trail Improvements.
19
20 Finance Director Rolek presented the 2003-2007 Vehicle and Equipment Replacement Program and
21 explained that the City is trying to even out the replacement program to provide an even funding
22 stream for vehicle and equipment purchases. Prior to 2002, all equipment replacement was
•23 undertaken through debt certificates but that debt is gradually being phased out so by 2006 and 2007
24 the funds are levied instead of issuing debts to replace equipment. That will reduce the cost of
25 funding since there is no interest and it is estimated that $70,000 to $80,000 will be saved annually by
26 financing in that way. Finance Director Rolek presented bar graphs depicting debt certificates and
27 equipment levies and the total levy.
28
29 Finance Director Rolek advised that the Five -Year Financial Plan will be reviewed and revised
30 annually and annual budgets will supercede this Plan. He explained that the Five -Year Financial Plan
31 is for forecasting purposes only and is subject to change as conditions dictate. He emphasized that it
32 is not a budget.
33
34 Councilmember Dahl stated she talked with Community Development Director Grochala last week
35 about the Holly Drive and 12th Avenue project, which has been delayed for twelve years. She stated
36 she did not understand this was to be a phased project and has questions about the area included in the
37 first phase since 12th Avenue and Holly Drive past Gemini Estates is about seven years new with
38 sewer and water installed below. She stated that section of pavement is very nice and does not need
39 upkeep. However, past Gemini Estates to Ash Street is a dangerous area and constantly needs
40 upkeep. She asked why that section was not included in the first phase. She stated this was part of
41 the plat, when approved, and she thinks the City should make good on their agreement. She stated
42 she thinks the most dangerous part of the road should be included in the first phase.
43
�44 Mayor Bergeson stated the Council has not completed the discussion on expenditures from MSA
45 funds and this sequence in the Plan is a fairly old sequence and may not actually be followed for these
6
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
1 projects. He stated there will be an on-going detailed discussion on that issue as opposed to the Five -
2 Year Plan, which is a general overview plan.
3
4 Community Development Director Grochala stated Holly Drive has been discussed and MSA funds
5 committed to do Elm Street and Holly Drive and Elm Street and 62nd Street. He explained that the
6 feasibility study on Holly Drive was completed and presented to the Council in October or November.
7 That study laid out, in a preliminary manner, the reconstruction of Holly Drive and given the
8 financing, parts of Holly Drive would be phased with components of the roadway. Some of the
9 roadway has been approved generally with development approval, most notably 12th Avenue from
10 Birch Street to Holly Drive.
11
12 Community Development Director Grochala stated that from Gemini Estates to the south, the
13 roadway has a more narrow design not approved with developments. He stated that area also includes
14 a sharp turn, which has generated a lot of discussion. Construction in that area will need to address
15 how to correct that sharp turn. He stated when staff works with the Council to go forward with plans
16 and specifications, the project can be adjusted as the Council so determines since it is the Council that
17 ultimately decides what and when the projects are built. He advised that Holly Drive is an expensive
18 project due to the need for extensive right-of-way acquisition, storm water management issues, and
19 wetland mitigation requirements. All three phases together are estimated to cost over $3 million so
20 the plan would construct the highest priority area in the first phase.
21
22 Councilmember Dahl asked about Phase 2 and what area it comprises. Community Development
• 23 Director Grochala stated it is 12th Avenue from Birch Street to Holly Drive
24
25 Councilmember Dahl stated it would have cost $1.5 million if it had been done eight years ago but
26 since it was put off, the cost has gone up.
27
28 Mayor Bergeson opened the public hearing at 6:58 p.m.
29
30 No one appeared to address the 2003-2007 Five -Year Financial Plan.
31
32 Mayor Bergeson repeated that Council action will not be taken on this Plan tonight but formal action
33 will take place at the December 16, 2002 Council meeting.
34
35 Councilmember Carlson moved to close the public hearing at 6:58 p.m. Councilmember Reinert
36 seconded the motion. Motion carried unanimously.
37
38 Councilmember Dahl moved to close this portion of the meeting at 6:59 p.m. Councilmember
39 O'Donnell seconded the motion. Motion carried unanimously.
40
41 Mayor Bergeson stated the regular Council meeting will be called to order in a few minutes.
42
43 Mayor Bergeson called the regular Council meeting to order at 7:07 p.m.
• 44
7
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
1 SETTING THE AGENDA
2
3 The agenda was approved as presented.
4
5 CONSENT AGENDA
6
7 Councilmember Dahl moved to approve the Consent Agenda, as submitted. Councilmember Carlson
8 seconded the motion.
9
10 Motion carried unanimously.
11
12 ITEM ACTION
13
14 A. CONSIDERATION OF EXPENDITURES:
15
16 i) December 9, 2002 (Check No. 66838 -
17 66930, $257,039.58) Approved
18
19 ii) Centennial Fire District (Check No. 13533 -
20 13554, $4,107.63) Approved
21
22 B. Consider Application to Conduct Excluded
•23 Bingo, Centennial Middle School Approved
24
25 OPEN MIKE
26
27 Russ Underdahl, 6 Larkspur Lane, St. Paul, stated he would like to address the City Council and
28 would ask the Council to read thoroughly the packet of information that he provided to each of them.
29 He stated that a juvenile reported an assault on him by an adult, as is detailed in the police reports.
30 He made several allegations regarding an alleged incident of child abuse.
31
32 Mr. Underdahl stated he wanted to make sure proper procedures were followed, and requested follow -
33 up to this item.
34
35 Mayor Bergeson stated the Council will review the information being submitted and requested a
36 report from the City Administrator.
37
38 The City Attorney stated that he is unaware of this situation and will talk with Mr. Sullivan. He
39 assured the Council that these types of matters do not go unanswered.
40
41 Police Chief Pecchia stated there has been correspondence between the City Attorney's office and he
42 has a copy of the letter sent to the attorney representing Mr. Underdahl. This incident was
43 investigated criminally and turned over to social services due to concern for the welfare of the
.44 children of the community. He assured the Council that they have acted as judiciously and quickly as
45 possible.
8
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
• 1
2 Mayor Bergeson requested an update on this matter at the next work session.
3
4 No one else was present for open mike.
5
6 FINANCE DEPARTMENT REPORT, AL ROLEK
7
8 There were no Finance Department Reports to consider.
9
10 ADMINISTRATION DEPARTMENT REPORT, DAN TESCH
11
12 There were no Administration Department Reports to consider.
13
14 PUBLIC SAFETY DEPARTMENT REPORT, DAVE PECCHIA
15
16 There were no Public Safety Department Reports to consider.
17
18 PUBLIC SERVICES DEPARTMENT REPORT, RICK DEGARDNER
19
20 There were no Public Services Department Reports to consider.
21
22 COMMUNITY DEVELOPMENT DEPARTMENT REPORT, MIKE GROCHALA
•23
24 A. Spirit Hills
25
26 i. Consider Second Reading of Ordinance No. 08-02, Rezoning to GB/PDO
27
28 Community Development Director Grochala advised that the City Council approved the first reading
29 of Ordinance 08-02, rezoning the property from R-1, Single Family Residential to GB, General
30 Business/PDO, Planned Development Overlay, for the Spirit Hills Commercial Center, on November
31 25, 2002. The Council also approved Resolution No. 02-88 Approving Site and Building Plans, with
32 conditions, and Conditional Use Permits for a Motor Fueling Station, Accessory Drive-through and
33 Day Care Facility on November 25, 2002.
34
35 The November 25, 2002 approvals corresponded with the expiration of the City's deadline for agency
36 action. As such the approvals are in effect. However, procedurally in accordance with City Charter
37 provisions, it is necessary to proceed with the second reading of the ordinance and subsequent
38 publication.
39
40 Community Development Director Grochala advised that the ordinance findings have been revised in
41 Section 1, item 5, based on Council direction at the last meeting.
42
43 Councilmember Carlson asked about requiring additional tree plantings between the commercial and
!44 residential properties. Community Development Director Grochala stated that is included in
45 Resolution No. 02-88.
9
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
1
2 Councilmember O'Donnell moved to approve SECOND READING and adopt Ordinance No. 08-02,
3 Amending the Zoning Ordinance of the City of Lino Lakes by Rezoning Certain Real Estate from R-
4 1, Single Family Residential to GB, General Business District / PDO, Planned Development Overlay.
5 Councilmember Dahl seconded the motion.
6
7 Councilmember O'Donnell voted yea. Councilmember Dahl voted yea. Councilmember Carlson
8 voted yea. Councilmember Reinert voted yea. Mayor Bergeson voted aye.
9
10 Motion carried unanimously.
11
12 Ordinance No. 08-02 can be found in the City Clerk's office.
13
14 ii. Consider Resolution No. 02-175, Approving Site Performance Agreement for
15 Spirit Hills Commercial Center
16
17 Community Development Director Grochala advised that the City Council approved the First Reading
18 of Ordinance 08-02, Rezoning the property from R-1, Single Family Residential, to GB, General
19 Business/PDO, Planned Development Overlay, for the Spirit Hills Commercial Center, on November
20 25, 2002. The Council also approved Resolution No. 02-88 Approving Site and Building Plans, with
21 conditions, and Conditional Use Permits for a Motor Fueling Station, Accessory Drive-through and
22 Day Care Facility on November 25, 2002.
• 23
24 Community Development Director Grochala stated the conditions for Site and Building Plan approval
25 included a requirement that the developer enter into a Site Improvement Performance Agreement
26 (Development Contract) with the City to insure the completion of improvements in accordance with
27 the approved plans. Staff has prepared an agreement for Council consideration, which provides for
28 the following:
29
30 1. Submittal by the developer of a Letter of Credit representing one hundred and twenty-five
31 percent of the on-site improvement costs to insure completion of the project in accordance
32 with the approved plans.
33 2. Submittal by the developer of a Letter of Credit representing one hundred and twenty-five
34 percent of the off-site improvement costs including Birch Street, Ware Road, and Hodgson
35 Road improvements. This includes $75,000 towards the installation of a signal at
36 Hodgson and Birch.
37 3. Deposit of a cash escrow to reimburse the City for costs incurred by the City related to the
38 development and improvement of the site and developer improvements.
39
40 Community Development Director Grochala noted the revision to Item f to clarify the traffic signal
41 issue in this agreement. That language indicates: "The Developer's financial participation shall be
42 50% of the cost of such traffic control devices up to a maximum contribution of shall be $75,000.
43 Staff recommends approval of the development agreement and its execution.
044
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APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 Councilmember Dahl asked if the Council agreed the developer would pay for the entire amount of
2 the traffic signal. She also asked if the City would have to pick up the tab if the traffic signal costs
3 $250,000.
4
5 Community Development Director Grochala stated the City is trying to whittle away the project costs
6 and estimating $150,000 to $200,000 for a signal at this location. The end result is there could
7 potentially be a City share of that project. He explained now that the project is moving forward as
8 discussed at the last meeting, staff will work with Anoka County on cost participation Typically,
9 their participation through County policy is to cost share with the City paying for 100% for City legs
10 and 50% of the County's intersection. In this situation, all legs of the intersection are under County
11 jurisdiction so it is estimated that the maximum City cost participation would be $50,000. Community
12 Development Director Grochala stated staff will continue to work with Anoka County as well as the
13 property owner to the south to reduce that commitment for the remaining share.
14
15 Councilmember Dahl stated if the developer is paying for $75,000 then to be sure it is equal, the other
16 property owner should pay the same, $75,000. Community Development Director Grochala stated the
17 developer said he would go up to $75,000 and he thinks the split between the two property owners
18 will be whatever the County is not paying for.
19
20 Councilmember Dahl asked if the CUP is also being approved or just the performance agreement.
21 Community Development Director Grochala stated the CUP was approved at the last meeting and the
22 consideration tonight is the performance agreement.
• 23
24 Councilmember Dahl explained that at the gas station, she does not want there to be parking of
25 tractor -trailers, either day or night, for a period of time. She asked if diesel fuel will be sold at this
26 gas station.
27
28 Rockne Goertz, developer, stated he suspects the gas station will have diesel fuel but he does not
29 think parking of semi trucks will be an issue since it is not allowed by City ordinance in a General
30 Business area.
31
32 Councilmember Dahl stated she does not want there to be parking of semi tractor trailers, reefers, or
33 just the tractors.
34
35 Councilmember Reinert stated the action taken indicated that Mr. Goertz's portion would be $75,000
36 but now the language is being changed to indicate "up to" $75,000. Community Development
37 Director Grochala stated the intent was that Mr. Goertz is willing to pay that much depending on what
38 the cost is. If the signal cost $80,000, then he wouldn't be expected to pay $75,000.
39
40 Councilmember Reinert noted the language originally stated Mr. Goertz would participate at a level
41 of $75,000 but the new language says "up to" $75,000 based on cost participation.
42
43 Community Development Director Grochala explained that Mr. Goertz had asked what would happen
ill44 if the signal cost $90,000 and had asked for this language change. He stated it is his understanding
11
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 that if the signal cost $150,000 then he would pay $75,000 and if the signal cost $100,000 then he
2 would pay $50,000.
3
4 Councilmember Reinert noted there was discussion of temporary signalization of that intersection but,
5 realistically, it is known the permanent signal could go to $200,000.
6
7 Mr. Goertz stated there should have been a signal at this intersection for years and according to his
8 legal counsel, he should not have to pay for any of it. However, he feels that his offer to pay up to
9 $75,000 is a generous offer.
10
11 Councilmember Reinert stated he will be pushing for a more permanent solution.
12
13 Mayor Bergeson stated whether the ultimate -solution signal or temporary solution is installed, it will
14 depend on the level of Anoka County participation.
15
16 Mr. Goertz stated his engineer estimated the cost of the left turn lanes and temporary signal to be at
17 $150,000 but if the County gets involved it could go up to $250,000.
18
19 Councilmember Carlson stated it was discussed that if the cost is $150,000 then the maximum the
20 City would cover is $75,000 which is what Mr. Goertz talked about covering. She stated she is also
21 concerned about the permanency of the signal.
22
• 23 Community Development Director Grochala stated it was discussed at the last meeting to sit down
24 with Mr. Goertz and the other property owner and those efforts will continue over the next few
25 months. He stated staff is also talking about having TKDA prepare a feasibility study that includes all
26 the components including the turn lanes and signalization so there are more "concrete" numbers
27 available. He stated there also appears to be a willingness from Anoka County to get involved.
28
29 Councilmember Carlson asked about the project date, noting the agreement language says it will be
30 initiated within six months and if activity is not completed within eighteen months, the City may
31 exercise any remedies as set forth in Section VII., unless an extension is granted by the City. She
32 stated she hopes the activity of reconstructing the intersection will start in the spring and be
33 completed well short of eighteen months.
34
35 Community Development Director Grochala stated staff is trying to cover both sides of that in
36 recognizing that with outside projects it will take a period of several months. He stated he is not sure
37 if they can break ground within six months if it is a City project and those processes are followed. He
38 stated that they would not want to wait eighteen months to get something started and noted that this
39 development will not be fully built out within the first year either. He noted that the Target and Kohls
40 project had substantial road improvements completed which limited the traffic impact.
41
42 Councilmember Carlson stated in that case, the road was in place prior to construction of Target and
43 Kohls but in this case the road and intersection will not be reconstructed prior to the first store
opening. She stated it was her understanding that Mr. Goertz would be constructing these
•44
45 improvements himself and that was his preference due to cost.
12
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1
2 Mr. Goertz stated they prefer to do the dirt work and streets but he is unable to do the signal work.
3 He stated they are 30% leased and estimated that the earliest the project would be occupied would be
4 next August. Ware Road will be completed prior to any store being occupied. He stated he thinks
5 Anoka County will be anxious to get the signal light installed and he sees no reason it can't be done
6 by next fall.
7
8 Councilmember Carlson asked when the turn lane from Highway #49, turning left onto Birch Street,
9 will be constructed. Mr. Goertz stated it will be built next summer as well as widening the roadways
10 and striping. However, he is unsure how that will work without the signal light being installed.
11
12 Mr. Goertz stated he will work with Anoka County and thinks if the project follows the Anoka
13 County plan and letter there will be no problem. He stated he thinks a period of eighteen months is
14 reasonable given the worst-case scenario.
15
16 Councilmember Reinert asked if the eighteen months starts tonight. Community Development
17 Director Grochala stated it would start when the agreement is signed.
18
19 Councilmember Reinert stated that means there may be six to eight months of waiting for the road to
20 be competed. Mr. Goertz restated the roads and turn lanes will be completed prior to eighteen
21 months.
22
• 23 Councilmember Dahl asked if Mr. Goertz could assure that when construction occurs, the Birch
24 Street area remains clean of sand and dirt including portions of Highway #49. She stated when the
25 houses were constructed, there was a dust problem.
26
27 Mr. Goertz explained there were no roads in place during that project but that will not be the case
28 with this project.
29
30 Councilmember Dahl stated that would be greatly appreciated.
31
32 Councilmember Reinert stated his appreciation that they did not create their own entrance to bring in
33 the dirt material and for keeping dirt off City streets.
34
35 Councilmember Reinert moved to adopt Resolution No. 02-175, Approving Spirit Hills Commercial
36 Center Site Improvement Performance Agreement as amended in Section F to address the
37 contribution for the signal. Councilmember Dahl seconded the motion.
38
39 Motion carried unanimously.
40
41 Resolution No. 02-175 can be found in the City Clerk's office.
42
43 Resolution 02-174, Approving Site and Building Plans and Conditional Use Permit for Car
•44 Wash and Quick Lube, 7327 Lake Drive, Bob Kirmis, NAC — Mr. Kirmis advised that Ray
45 Benkler has requested approval of site and building plans and a conditional use permit to allow the
13
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 construction of a full service car wash, a self-service car wash, and a quick lube facility (within a
2 single structure) upon a 1.6 acre site located west of Lake Drive between I -35W and Elm Street.
3 While the applicable LI, Light Industrial, district provisions do not specifically list car washes as a
4 permitted or conditional uses, the district does state that uses permitted in commercial zoning districts
5 shall be allowed within LI districts. As a result, the use will be treated as a conditional use and
6 processed accordingly.
7
8 Mr. Kirmis displayed a map of the area and noted the recommendation that the two lots comprised in
9 this project be legally combined. He stated that it is important to assure an understandable vehicular
10 circulation of the site. To accommodate the traffic movements, a counter -clockwise traffic circulation
11 system is being proposed. This will also eliminate cross -traffic movement. In addition, the applicant
12 attempted to define circulation routes through upright signage, directional signage, and pavement
13 signage. He noted the location of the landscape median to separate incoming and outgoing traffic.
14
15 With regard to circulation, Mr. Kirmis explained that staff has two minor concerns that are based on
16 inconvenience to the site, not public safety. He noted that as vehicles enter the site they enter a prep
17 area and make a U-turn into the car wash service area. He stated there is potential for congestion in
18 the by-pass lane. In addition, the self-service car wash will accommodate recreational vehicles but
19 given their length there may be conflict movements with the by-pass lane and the self-service facility.
20 However, generally speaking, the site works well.
21
22 Mr. Kirmis reviewed the architecture and proposed building materials. According to the Ordinance,
• 23 the architectural appearance of the building may not be so dissimilar to the existing buildings or areas
24 as to cause impairment in property values or constitute a blighting influence. He noted the submitted
25 building elevations show the building is to be finished in a combination of colored rockface block,
26 face brick and stucco. He advised that these materials are consistent with the building material
27 requirements of the Ordinance.
28
29 Mr. Kirmis explained that although the proposed building materials satisfy the requirements of the
30 Ordinance, some concern exists in regard to the presentation of the building to Lake Drive As
31 proposed, the eastern facade of the building will consist of ten garage doors. To draw attention away
32 from the garage doors, the applicant has proposed landscaped medians in front of the building. Aside
33 from softening the appearance of the building to Lake Drive passersby, the landscape medians also
34 serve to channel traffic throughout the site. Mr. Kirmis advised that the Planning and Zoning Board
35 had questions on the color and noted they are shown on the colored rendering as being almond
36 colored stucco and Aztec clay and ebony rose rockface block.
37
38 Mr. Kirmis stated the landscape plan shows a variety of trees on the site, specifically mixtures of
39 Northwoods Red Maple and Hackberry trees along Lake Drive. Additionally, shrub plantings have
40 been proposed within the two medians (within the interior of the site) and clump grass at the
41 northwest corner of the building.
42
43 Mr. Kirmis advised that the grading and drainage plan has been submitted for review by the City
44 Engineer. One noteworthy concern related to drainage involves the handling of wastewater from the
• 45 self -serve car wash. Especially about the potential dragging of water towards the site's egress point on
14
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 Lake Drive in the winter months and potential for the creation of an ice slick. In response the
2 applicant proposes a 20 -foot wide heated apron at the point of exit to the car wash, which will address
3 that concern.
4
5 Mr. Kirmis stated the Planning and Zoning Board, at their November 13, 2002 meeting, considered
6 the site and building plans and Conditional Use Permit application and recommended approval
7 subject to the conditions listed in draft Resolution No. 02-174. Staff recommends that the City
8 Council approve the site and building plans and Conditional Use Permit request as outlined in the
9 draft resolution.
10
11 Councilmember Carlson reviewed the section of the staff report addressing a concern with the by-pass
12 lane, which relates to the areas west of the self-service wash and quick lube vicinity where
13 overlapping of vehicular stacking could potentially occur. The applicant has indicated that the self -
14 service car wash is to accommodate recreational vehicles. She asked if no regular cars will use the
15 self-service car wash.
16
17 Raymond Benkler, owner, operator, and full-time manager of the car wash, stated the self-service car
18 wash will accommodate all types of vehicles except for semi trucks. He stated it will have a 16 -foot
19 ceiling to accommodate larger vehicles but they will not market to recreational vehicles. He stated
20 that while a semi -tractor may come through, it would not have a trailer.
21
22 Councilmember Carlson reviewed the section of the staff report addressing the internal circulation of
.23 this site and that such circulation issues are internal to the site and constitute more of an
24 inconvenience to the site than public safety. She asked the Police Chief to respond.
25
26 Police Chief Pecchia stated the Police Department's concern when it comes to a car wash is the
27 potential stacking on Lake Drive in this location and potential of excess water dripping on Lake Drive
28 that would cause an icy situation during the winter months. He stated those issues were raised at the
29 staff meeting and the end result is the plan before the Council.
30
31 Councilmember Carlson asked if the garage doors facing Lake Drive will be landscaped. Mr. Benkler
32 stated the doors will be landscaped with plantings and trees. He noted the prep and full service areas
33 and the oil change area, noting they have staggered doors to provide better cosmetics. He stated the
34 building will look good and be well landscaped.
35
36 Councilmember Carlson agreed that the picture is not unattractive, however, the Environmental Board
37 mentioned additional landscaping, and in particular, carefully placed landscaping to reduce the impact
38 of the ten garage doors.
39
40 Councilmember Carlson noted the two handicapped parking stalls that are located where traffic will
41 be circulating to the by-pass lane, which limits the sight lines. She asked if those handicapped
42 parking stalls could be moved farther north so there is more opportunity for better sight lines.
43
15
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 Mr. Benkler stated the stalls on the west side and also on the east side are primarily for employee
2 parking. He stated they do not anticipate having customer vehicles being parked on this site for a
3 period of time.
4
5 Councilmember Carlson stated she understands that type of business use so she did not raise the issue
6 of stacking. However, if the handicapped parking stalls were moved to the other end of the parking
7 row it would provide better views farther from the traffic coming in and out. Mr. Benkler stated those
8 parking spaces could be relocated.
9
10 Mr. Benkler stated they will not have a problem off Lake Drive where there will be four traffic lanes
11 to get into the car wash so cars will not sit out on Lake Drive. He stated there will be drainage pits so
12 the car leaving will be totally dry and not drag water onto Lake Drive. He distributed several pictures
13 of the project.
14
15 Councilmember Dahl asked if the oversized vehicles can accommodate the turning radius. Mr.
16 Benkler answered in the affirmative.
17
18 Councilmember Dahl asked if the City Engineer has completed his review. City Engineer Studenski
19 advised that most of the items have already been addressed and followed through on and are part of
20 the conditions of approval.
21
22 Councilmember Dahl asked if recycled water is being used. Mr. Benkler stated they will not reclaim
• 23 or refilter the water being used in the car wash.
24
25 Mr. Benkler stated the photographs he distributed are of a full-service car wash built about a year ago
26 in Stillwater. He noted the color of the facade, which will be similar to the car wash he is proposing.
27
28 Councilmember O'Donnell asked Mr. Benkler if he owns and operates that car wash. Mr. Benkler
29 stated he does not but has been in the car washing business for 19 years and will be operating this
30 business on a full-time basis. Their hours of operation are from 7:00 a.m. to about 9:00 p.m. The
31 self-service car wash will not be opened beyond those hours.
32
33 Councilmember O'Donnell asked if there is a lobby for customers in the oil change area. Mr. Benkler
34 stated there will be a lobby including a snack bar.
35
36 Councilmember Reinert asked about the stacking distance for the oil change portion of the site. Mr.
37 Kirmis presented the site plan and identified the location of the four building segments including the
38 preparation area to identify service desired, area for U-turn movement into the mechanical car wash
39 area or by-pass lane to enter the self-service car wash, and the quick lube facility which is at the
40 southern end of the building. Also, there is by-pass lane around the entire perimeter of the site.
41
42 Councilmember Reinert asked if Anoka County has provided an opinion on the traffic for Lake Drive.
43 Community Development Director Grochala stated plans have been submitted to Anoka County but
•44 staff has not yet received a response back. He noted a condition addresses the acceptability of the
45 proposed curb cut location and width as well as the need for associated roadway improvements (i.e.
16
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 turn lanes) which are subject to comment and recommendation by the City Engineer and the Anoka
2 County Highway Department.
3
4 Community Development Director Grochala stated he will contact Anoka County tomorrow to see
5 where they are at in their review.
6
7 Councilmember Reinert asked if this business will be connected to City sewer and water. Community
8 Development Director Grochala answered in the affirmative.
9
10 Councilmember Reinert asked about manhole use.
11
12 Community Development Director Grochala explained that the sanitary sewer trunk line runs up old
13 Fourth Avenue, between the school property and this site. He reviewed the alignment for the utilities
14 and explained the general location. He advised that the depth was inadequate on the east side of Lake
15 Drive to service this property so the sanitary sewer will be extended across the School District
16 property to serve this site as well as adjacent properties. He noted a letter has been received
17 indicating the School District's willingness to provide those easements. Community Development
18 Director Grochala stated the City will require that document in hand prior to commencement of
19 construction activities.
20
21 Councilmember Reinert stated his brother owned a car wash and was required to have some kind of
22 recycling or filtration system. He asked if that may be an issue since this car wash has ten bays and
• 23 will be flushing a lot of soapy water. Councilmember Reinert stated the Council has only had a few
24 days to look at this application and he does not know enough about that aspect of the project. He
25 stated this appears to be a very nice project but the Council is usually slow but deliberate with
26 approvals. He stated he wished this could have been reviewed at a work session when more
27 discussion could have taken place. He asked what the timing is of this project.
28
29 Community Development Director Grochala stated the application has been in for several months so
30 it is close to the end of the 120 day review period.
31
32 Councilmember Reinert noted there is a work session in two days and another Council meeting next
33 on Monday so the process could be expedited somewhat. He asked if other Councilmembers would
34 support more time for review.
35
36 Mayor Bergeson asked if a one-week delay would cause a problem for the applicant.
37
38 Mr. Benkler stated it would not cause a problem. He introduced Terry Landeen whose specialty is
39 installation of car wash equipment.
40
41 Councilmember Reinert stated the pictures are of a fairly new car wash facility and asked if it uses a
42 water recycling system. Mr. Benkler stated it is a new facility and does not have a water recycling
43 system.
• 44
17
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
.1 Terry Landeen, Specialty Equipment Company, Mendota Heights, stated the equipment has tanks in
2 the ground so if it is needed, it is ready and only the filtration unit has to be installed. He explained
3 how the three tanks are used to recycle water. Those three tanks would be plumbed and ready to use
4 once the filtration machine is installed. He stated that option can then be utilized should the cost of
5 water or sewer increase too much. However, the recycling system requires a lot of maintenance. He
6 stated the self-service units use only three gallons/minutes or about 12 gallons total so that water is
7 generally not recycled. He estimated the self-service car wash would use a couple thousand gallons a
8 day. Mr. Landeen stated the conveyor car wash uses 70 gallons on a vehicle the size of a pickup
9 truck.
10
11 Mr. Landeen explained that the MPCA will not provide a credit for installing a reclaimed water
12 system since the system can be by-passed. He explained that the system for the proposed car wash
13 does not use as much water because it is a cloth car wash and not just a high pressure wash.
14
15 Councilmember Dahl asked how many conveyor car wash bays there will be. Mr. Landeen stated
16 there is just one conveyor wash. He noted that Perfect 10 has one conveyor system but three exit
17 doors.
18
19 Community Development Director Grochala confirmed that the deadline date for review is January 8,
20 2003.
21
22 City Administrator Waite Smith stated if this item is to be discussed at the work session this week
23 Wednesday, the Council may want the applicants in attendance.
24
25 Mr. Benkler and Mr. Landeen stated they are available to attend the work session.
26
27 Councilmember Reinert asked when they will break ground for this project. Mr. Benkler stated it will
28 be this spring.
29
30 Councilmember Reinert moved to table consideration of Resolution No. 02-174, Approving Site and
31 Building Plans and Conditional Use Permit for a Full -Service Car Wash, a Self -Service Car Wash,
32 and a Quick Lube Facility, 7327 Lake Drive, for discussion at the December 11, 2002 Work Session,
33 and formal consideration at the December 16, 2002 Council meeting. Councilmember Carlson
34 seconded the motion.
35
36 Councilmember Carlson asked if staff is being directed to look into recycling water and other issues
37 raised by Councilmember Reinert.
38
39 Councilmember Reinert stated he would appreciate information on the benefits of water reclamation
40 for environmental purposes or if it is an excessive move. He stated he knows the filtration system is
41 very expensive.
42
43 Community Development Director Grochala stated the issue is whether the cost of recycling is higher
•44 than the cost of water.
45
18
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
•1 Councilmember Carlson stated she would consider tabling because staff will be hearing from Anoka
2 County to find out what road improvements they will be requesting. She stated her question would be
3 how the City would cover the cost of those required road improvements. Community Development
4 Director Grochala stated that would be at the cost of the developer.
5
6 Councilmember Carlson stated she does not want to find out in the future that the City will have to
7 install another water tower due to excess water use.
8
9 Mayor Bergeson suggested that Councilmembers notify staff if they would like to receive any
10 additional information.
11
12 Councilmember Reinert stated he would like information on environmental impacts, what other car
13 washes are doing now, and State or other regulatory agency recommendations.
14
15 Councilmember Dahl stated that the Perfect 10 Car Wash in Blaine is required to reclaim water.
16
17 Mr. Benkler stated Perfect 10 Car Wash is one of the best in the State and on a given weekend will do
18 1,000 to 1,200 cars a day. He stated they are projecting 70 to 150 cars in a 13 -hour time period so
19 they will not use the volume of water used by Perfect 10 Car Wash. He stated that they will consider
20 installing the filtration tanks and plumbing so it is easily available in the future, if needed.
21
22 Mayor Bergeson asked staff to review the legal deadline for the City to make this decision.
4111 23
24 Community Development Director Grochala stated the City must make a decision by January 8, 2003.
25
26 City Administrator Waite Smith noted the first Council meeting in 2003 is January 13.
27
28 Councilmember Carlson requested the response from Anoka County for review at the work session.
29
30 Motion carried unanimously.
31
32 UNFINISHED BUSINESS
33
34 Consider October 14, 2002 City Council Minutes
35
36 Councilmember Carlson moved to approve the October 14, 2002 City Council Meeting Minutes, as
37 presented. Councilmember Dahl seconded the motion.
38
39 Motion carried unanimously.
40
41 NEW BUSINESS
42
43 Consider October 28, 2002 City Council Minutes
.44
45 Consider October 30, 2002 Growth Management Work Session Minutes
19
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
1
2 Consider November 6, 2002 Council Work Session Minutes
3
4 Consider November 19, 2002 Growth Management Work Session Minutes
5
6 Councilmember Dahl requested that the October 28, 2002 City Council Meeting Minutes be removed
7 from consideration at this time.
8
9 Regarding the October 30, 2002 Growth Management Work Session Minutes, Councilmember
10 Carlson requested the following correction:
11
12 Page 6, third paragraph, last sentence, to read, "...does apply to other districts but will with check to
13 make sure that it does."
14
15 Regarding the November 6, 2002 City Council Work Session Minutes, Councilmember Carlson
16 requested the following correction:
17
18 Page 5, 6th paragraph, add to last sentence to read, "...because that is the cleanest way to reduce the
19 bill and does not set a precedence for reducing consumption."
20
21 Regarding the November 19, 2002 Growth Management Work Session Minutes, Councilmember
22 Carlson requested the following correction:
i 23
24 Page 4, 1 lth paragraph, add to last sentence to read, "....in relation to the final Comprehensive Plan
25 and need to do so before she voted."
26
27 Councilmember Carlson moved to approve the October 30, 2002 Growth Management Work Session
28 Minutes; the November 6, 2002 City Council Work Session Minutes, and the November 19, 2002
29 Growth Management Work Session Minutes, as corrected above. Councilmember Reinert seconded
30 the motion.
31
32 Motion carried unanimously.
33
34 COMMUNITY CALENDAR DECEMBER 10, 2002 THROUGH DECEMBER 16, 2002:
35
36 Wednesday, December 11, 2002, 5:30 p.m., Council Work Session Meeting
37
38 Wednesday, December 11, 2002, 6:30 p.m., Planning and Zoning Board Meeting
39
40 Monday, December 16, 2002, 6:30 p.m., City Council Meeting
41
42 Mayor Bergeson asked the Council to advise him of their progress on the City Administrator
43 performance review.
.44
45 ADJOURN
20
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•
APPROVED COUNCIL MINUTES DECEMBER 9, 2002
There being no further business, Councilmember O'Donnell moved to adjourn at 8:35 p.m.
Councilmember Dahl seconded the motion.
Motion carried unanimously.
These minutes were considered and approved at the regular Council Meeting, January 27, 2003.
ad a__
Ann Blair, City Ck
Transcribed by:
Carla Wirth
TimeSaver Off Site Secretarial, Inc.
21
John Ber son aY or