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CC Minutes 2002 06 24CHANHASSEN CITY COUNCIL REGULAR MEETING JUNE 24, 2002 Mayor Jansen called the meeting to order at 7:0S p.m. The meeting was opened with the Pledge to the Flag. COUNCILMEMBERS PRESENT: Mayor Jansen, Councilman Labatt, Councilman Boyle, Councilman Ayotte, and Councilman Peterson STAFF PRESENT: Todd Gerhardt, Roger Knutson, Teresa Burgess, Bob Generous, Todd Hoffman, and Justin Miller PUBLIC PRESENT FOR ALL ITEMS: Jerry & Janet Paulsen 7305 Laredo Drive PUBLIC ANNOUNCEMENTS: Mayor Jansen: Thank you, good evening. We don't have any public announcements this evening, though I will mention that we did have something pulled from the agenda. An actual postponement notice was mailed, but in case there's anyone here anticipating the assessment hearings for the residential street improvements or the MSA street improvements. Those have been postponed until July 8th, and there were notifications that were sent out by, about that postponement. Is there anyone here that came specifically for those agenda items? Okay, I think we're alright. We just didn't want anyone to sit through the whole meeting waiting for those to happen when they're in fact removed. So I'll move onto the consent agenda. CONSENT AGENDA: Councilman Peterson moved, Councilman Boyle seconded to approve the following consent agenda items pursuant to the City Manager's recommendations: a. Arboretum Business Park 4th Addition, Steiner Development: 1) 2) Final Plat Approval Approve Construction Plans & Development Contract, Project 00-11. Resolution/12002-53: Authorize Preparation of Feasibility Study for Construction of Sidewalk Along Lake Susan Drive. d. Approval of Bills. Approval of Minutes: - City Council Minutes dated June 10, 2002 Receive Commission Minutes: - Planning Commission Minutes dated June 4, 2002 g. Accept Donation to the Chanhassen Fire Department from the Chanhassen Lions Club. City Council Meeting - June 24, 2002 Resolution #2002-54: Accept Public Streets and Storm Sewer Improvements, White Oak Addition, Project 00-10. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Jansen: Councilman Boyle. l(b). Councilman Boyle: Teresa, there is concern, a couple inquiries as to the 10 inch pipe and what I read in here it's an additional 10 inch pipe that's going to be going up from the lift station at the beachlot where the easement is going in. Teresa Burgess: Correct. Councilman Boyle: The concern is why was that not brought up sooner, more information on it by the whole Sunrise Hills Beachlot easement issue was being raised. Teresa Burgess: The work that's being proposed is something that we were not aware of until we initiated, until we were about halfway through this study. It was actually started to evaluate Lift Station number 10. It was not known that we had the scope of problem that we do at the beachlot. We knew that we had some issues down there but not anything like this. When they modeled the entire system we discovered that there were intense pressures down there, and that the lift station is not able to pump against the pressures of Lift Station number 10. That's something that we did not know until just recently. We already had the discussions on the easement negotiation by the time this came to the city's attention. The reason that we have changed the recommendation and are going to go with the beachlot improvement, and I actually was going to pull this one but you beat me to it. There is a typo on here. We would not be doing number 2, which is Lift Station number 2. We would be doing the number 3 is the staff recommendation which is Lift Station Number 1 at the Sunrise Hills Beachlot. The reason we are doing it is because we had a recent instance where the bors in some valves down in that area, the City of Chanhassen has very acidic soils. The bors had been eaten away by the acidic soils. It's not related to this project. This project could wait a couple of years. There is nothing wrong with doing that. It's a jacking project. It can be done with relatively minimal disruption to the neighborhood. We do have to dig two jacking pits. But we had that area open anyway after the valves gave and so it was decided rather than go back in twice and restore, we might as well just get it done all at once and get it taken care of. And that's why we are changing the recommendation to do that lift station sooner instead of waiting a couple of years in the CIP. Councilman Boyle: Thank you. I see Mr. and Mrs. Paulsen's here. Did you have any other comments? I beg your pardon. Jerry Paulsen: Remarks now? Councilman Boyle: Well we could right now, if you have a question. Mayor Jansen: Yeah, if you've got issues with this agenda item, I'm assuming as long as they're brief we can certainly address them now. Otherwise I end up moving it to the end of the meeting so it could also do that. Teresa Burgess: Also Madam Mayor, ifI could point ont. What you're doing this evening is receiving the report and calling a public hearing for the next meeting. City Council Meeting - June 24, 2002 Mayor Jansen: So that will be the opportunity, okay. Why don't we do that and that would give you an opportunity then to have a conversation with staff on whatever the concerns are with this item, since there is going to be a public hearing and it will all then be addressed at the same time. Jerry Paulsen: You wanted remarks at the end of the meeting or now? Or not at all you're saying? Mayor Jansen: At the public hearing. All we're doing here tonight is approving staff calling a public hearing on this item. So all of the public will then be notified, correct? Teresa Burgess: Correct. Mayor Jansen: Of the item on the agenda and that will be your opportunity then to provide the public comment. Otherwise obviously, and I know you've worked with staff previously, if you can work with them on what your issues are. We won't be addressing this this evening. All we're doing is calling a public hearing. Jerry Paulsen: Can I make one comment then? Mayor Jansen: Sure. Jerry Paulsen: Jerry Paulsen, 7305 Laredo Drive. The public hearing is scheduled for July 8th, which is really a holiday, kind of a holiday week and we would anticipate that it would be difficult to get a lot of people notified and at the meeting. That's one of our... Mayor Jansen: Well we'll see if there's major issues with it. Otherwise we can certainly take a look at the date and take a look at that, but why don't we wait and we'll have a fuller staff report that, and you can obviously address your issues with staff before that and provide those to us in the report that we'll be receiving for the public hearing. It's premature for us to take this now I guess is what I'm saying, if we do the process as specified. All we're doing is receiving this. Jerry Paulsen: Thank you. Mayor Jansen: Thank you. And I would encourage you to put your comments in writing and forward them to us then through the staff report. Okay, so we're okay with l(b)? Councilman Boyle: All done. Mayor Jansen: Okay. Why don't we go ahead with then l(f) and then we can do one motion. We had been forwarded an email from one of the Park and Rec Commissioners suggesting, which I thought was a good suggestion, that we also as part of the RFI for the Community Center, receive from the applicants their experience with similar projects. So we're receiving a resume per se. And I thought directing staff to include that point before this goes out I thought would be a good idea if council's comfortable doing that. And we can just make the direction to staff to include that as part of the RFI and then move this forward. Okay. Councilman Boyle: I have no problem with that. Mayor Jansen: Okay. So ifI could have a motion on l(b) and l(f) please. Councilman Labatt: Move approval for l(b) and l(f). With the changes as noted for l(f). City Council Meeting - June 24, 2002 Mayor Jansen: Okay. And a second? Councilman Ayotte: Second. Councilman Labatt moved, Councilman Ayotte seconded to approve the following consent agenda items: Receive Feasibility Report and Call a Public Hearing for Lift Station 10, System Utility Improvements, Project 01-11. f. Approval of Final Draft of Community Center Request for Information, as amended. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Jansen: I also wanted to mention that as a part of our consent agenda, Item l(g) was accepting a donation from the Chanhassen Lions Club and the Lions Club is donating $8,562 towards the Fire Department's purchase of some materials for our hazardous material response capabilities so I did want to acknowledge that generous donation and our appreciation to them for participating with our fire department, which they have historically so I thought that was worth noting, though we just passed it under consent. VISITOR PRESENTATIONS: None. FIRE DEPARTMENT UPDATE. Mark Littfin: Good evening. I'll speak quickly before the next storm comes through our city here and we get called out again. For the year our calls are down about 60 percent, or 60 calls from last year, and a lot of that is still attributed to priority medical dispatching and we have had relatively minor call out this spring with storms. We've only been out once or twice for storm watch so even though we've had a lot of rain, we haven't had any severe weather which kind of cuts down on the calls. We have had 2 lightning related calls. One was today. We had a house fire out on Stone Creek Drive, and we had one about 4 weeks ago and there was still smoke. Call in by the neighbors and we dealt with them quickly so, but seeing a number of the suburbs around the city were affected by the same storm. Last Monday evening we had our Black Helmet Ceremony at the fire station where we had probationary firefighters finish their first year and during that time they wear yellow helmets and they can't wait to get rid of them and get their so called real helmets so we had a nice celebration last week at the station and we added 7 new firefighters to our rank and file. We're happy about that. We're getting busy planning the 4th of July coming up. We participate with the kiddie parade and the big parade, the 4th of July parade so we're making plans on that and getting a good sign-up for that. Both Greg and myself on the inspections end of it, we're keeping busy with new construction, with the apartments going up and the Legion, library, and some remodels that are going on throughout the city so that's keeping us busy with that. We stagged some preliminary talk and working on the 2003 budget so that's taking place. And we've had, issued 2 firework permits in the city since that became law here at the end of April so we're kind of monitoring that and seeing how that progresses so we'll see if we get any fireworks related injuries in the next few weeks here so. And that's all that's new from across the parking lot. Mayor Jansen: Great, thanks. Council members, any questions for Mark. Councilman Ayotte. City Council Meeting - June 24, 2002 Councilman Ayotte: If I may. There was some question and concern and interest at the State level as to what constitutes legal fireworks and what constitutes illegal fireworks. Do you have any information on that? Mark Littfin: Right. The ones that are legal. Well let's see, the ones that are illegal, if they explode or if they fly through the air, those are the illegal ones. If they're put on the ground, you light them and they spray sparks or snake worms or sparklers, those are the legal type but if they explode or they fly, right now they're illegal but we'll see what happens at the next session next year at the State and see if it changes again so. And they're not supposed to be blown off on public property, streets, parks, so we'll kind of watch out for law enforcement as well. Councilman Ayotte: Thank you. Mayor Jansen: Okay, thank you. Thanks for the report Mark. Appreciate it. Councilman Labatt: Thank you Mark. PUBLIC HEARING: RESOLUTION APPROVING A JOINT POWERS AGREEMENT FOR RIDGEVIEW MEDICAL CENTER. Todd Gerhardt: Mayor, Council members. Bruce DeJong, our Finance Director has been working with Ridgeview on this issue and also has legal opinions from our bonding consultant, Mary Epple. Bruce, do you want to update the council on this item. Bruce DeJong: Yes. What's before you tonight is really just kind of past through financing. In order to have tax exempt financing provided by Howard Lake, Ridgeview is going to spend some money in actually 4 different communities and as part of the federal regulations for this financing we are required to form a joint powers agreement and accept, basically accept the funds. So it's past through financing. There is no liability on the city's part for the bonds. They will be payable solely out of Ridgeview revenues. But we have an opinion here from Briggs and Morgan to that effect, that everything is fine. Tom Mayfield is here representing Ridgeview on this financing and I think he'd like to have some comments and then you can open the public hearing and accept the resolution. Mayor Jansen: Okay. Great, thank you. Tom Mayfield: Bruce has done a wonderful job and in deference to your time and the agenda I'll keep it short. My name is Tom Mayfield. I'm with a firm called Minnesota Investment Services, and also here tonight are Tim Gronseth, Ridgeview's Chief Financial Officer, and John Prondzinski who is responsible for Ridgeview's clinic network. I think most of you, perhaps all of you are aware that Ridgeview already has a clinic in your community at leased space. Part of the project, the single largest part is to construct the new facility that they'll be able to own and remain in long term and as Bruce mentioned, there's a smaller clinic planned for Delano, some other assets in Waconia, and Howard Lake, and Howard Lake will be issuing so our request again is only that you conduct the hearing and approve a joint powers agreement that as Bruce pointed out, does not put you in a position of any liability at all. We're grateful that you're willing to consider this. If you have any questions beyond that, about the natural of the financing, I'd be happy to try to answer. If you have questions about the projects, particularly the clinic here in Chanhassen, I'm sure either John or Tim would be happy to handle that. Thank you. City Council Meeting - June 24, 2002 Mayor Jansen: Okay. Thank you very much. Council, any questions for staff or Mr. Mayfield at this time. Councilman Boyle: i have no questions. Mayor Jansen: Alright. Then I will open this for the public hearing, if there is anyone here that would like to address the council on this issue, certainly step forward and state your name and address for the record. Seeing no one, i'll bring this back to council. Council, comments. Councilman Labatt: Pretty straight forward. I move approval. Mayor Jansen: Seems like a wonderful proposal and to be sitting here, not being asked for something to actually bring an additional clinic of your own. Non lease space into the community, I'm very excited about this and certainly appreciate your having taken a look at Chanhassen and building a permanent clinic here with us so, i guess if council wouldn't mind, i might like to hear a little bit about that plan, just conceptually as to what that clinic would entail. Since you're here this evening. Thank you. John Prondzinski: Good evening. My name is John Prondzinski. I'm Vice President with Ridgeview Medical Center, and we have had a clinic, as you know for a number of years in the community and we have outgrown the physical plant of that building and it doesn't lend itself to efficient operations any longer for us. The lease for that building expires July of next year. We have the option of either renewing it or finding a new home, and we've been studying the community for some time. Meeting with staff. Looking at various options, and this site on Powers Boulevard and Highway 5 we think will provide great visibility, easy access, and an opportunity for taking on our current program as well as future growth. The initial Phase i of the building will be 20,525 square feet, which will take care of our existing operations, as well as provide some growth for additional specialists. Potentially pediatric, obstetric. We have obstetrics and orthopedic specialists today in our clinic, as well as family practice, internal medicine. We will be providing additional space for our sports medicine program, rehabilitation medicine, and our occupational health medicine program as well. Treating work injuries and healthy work place program in the business community. The Phase ii of the program is limited to the surface parking. There is adequate surface parking to add an additional 8,000 square feet on the second floor, and that would provide for a future medical specialists and health care as Ridgeview grows and as the community has a need for additional services. We are building in footings and structural capacity for an entire second floor, which would potentially be Phase iii and would most likely require some deck parking to accommodate the City's requirements for parking. So we're very excited about that. We've enjoyed our working relationship with staff and public safety and the council in Chanhassen for a number of years and we look forward to continuing to grow as your community grows and we intend to meet your needs. Mayor Jansen: Wonderful. John Prondzinski: Any other questions about the... ? Mayor Jansen: Thank you. Appreciate your doing that review with us. Council, any questions? Councilman Boyle: None. Councilman Ayotte: ?? City Council Meeting - June 24, 2002 John Prondzinski: I'm sorry, my dad could have answered but I'm not able to. I hope it was nice. Councilman Ayotte: We won't know. Councilman Boyle: We just hope they'll spell it right in the minutes. Mayor Jansen: With that ifI could have a motion please. Councilman Labatt: So moved. Councilman Ayotte: Second. Resolution #2002-55: Councilman Labatt moved, Councilman Ayotte seconded to approve the Joint Powers Agreement for Ridgeview Medical Center. All voted in favor and the motion carried unanimously with a vote of 5 to 0. AWARD OF BIDS: AWARD OF CONTRACT, 2002 TRAIL CONNECTION PROJECT. Todd Hoffman: Thank you Mayor Jansen, members of the council. What I'd like to do is allow Phil Gravel to go ahead and review the bid opening results with you and some of the findings from that bid opening that took place last Thursday, and again this is talking about the 2002 trail connector project which includes 3 segments. The underpass at the Chanhassen Recreation Center and making that connection. MnDot took the connection to the south driveway line and then we made the connection between the trail system. The second is at Lake Ann, at the underpass at Lake Ann. And then the third section is a much longer segment of trail traveling down 101 south, through the Chanhassen Hills neighborhood to Bandimere Community Park. Phil Gravel: Okay, thanks Todd. As Todd mentioned, bids were received last Tuesday. A total of 4 bids were received and the low bidder was Barber Construction out of Hopkins with the base bid of $323,000 and we took alternate bids for a retaining wall that has to be constructed along Highway 101. And that's the 3 alternates you see there. The first alternate is for a modular block retaining wall, and the second alternate is for a boulder retaining wall, and the third alternate is for a field stone, or a flag stone retaining wall. The low base bid and the low alternate would be Barber Construction with the modular block retaining wall, and that total amount of $351,080. This amount is substantially higher than the amount that we estimated in our report for the project last December. Mayor Jansen: And that amount was? Phil Gravel: That amount was $262,000 for the construction portion. In December the total project cost, when you include engineering, administration and we had some money in there for easement acquisition and things like that, was estimated to be $348,000. At this time the total project cost is estimated to be $400,000. So we're still talking about a 15 percent increase there. And the reason for the increase is an increase in unit prices mostly from what we estimated. Bituminous in December we estimated at around $35 a ton. The bids came in at $50. We added a lot more erosion control. That fiber blanket that you see everywhere, and that was at the request of MnDot but I think it's a worthwhile thing to do. And the seeding cost went up a little bit as well. One thing that's comforting is all the bids are close together so we feel it's a competitive bid and I know that Barber did a lot of research on the project before submitting the bid so we're confident in that price. It's just we have to deal with the increase. City Council Meeting - June 24, 2002 Mayor Jansen: Okay. One of the comments in the staff report is that part of the reason the bid is higher than the engineer's estimate was the timing of the bid opening. I'm just curious, I don't recall what the delay was from our looking at this in December and why it didn't end up being bid until now. Todd Hoffman: Part of that delay was review process with the State of Minnesota. MnDot and just completing the work. Communication with land owners. Phil Gravel: We're really not behind in schedule yet. That bid climate, because of the rain, a lot of, you know we would have expected more than 4 bidders on this, and I think you'll see the same thing with... 101 north bids. There just aren't as many people as hungry for bids than there normally are.., all we can contribute it to is the rain. Mayor Jansen: Okay. Todd Hoffman: I'll finish up with a couple of comments. You'll note on the cover page that the base bid is noted as 329,080. There was a correction in Barber's base bid raising it to 323,080 and that simply is mathematical addition error in their bid. Staff is obviously disappointed that the cost came in higher than the engineer's estimate, but we had designated $450,000 in the city's capital improvement program to finish the project and so we're underneath that by some $50,000. I feel the Barber Construction base bid of 320 and their total bid is a good bid in comparison to the other 3 bidders. And it's my recommendation that we move forward on the project. I considered re-bidding the project but I don't see the value in re-bidding the project, when we're taking a look at 4 bidders which turned in competitive bids and we have what I feel is a good bid for the city. Mayor Jansen: Okay council, any questions for staff? Councilman Boyle: I have just one. I'm a little confused on the total numbers. The total project cost was $340,000, is that correct? And the new cost is $400,000? Todd Hoffman: Approximately. Councilman Boyle: So the addition is $52,000, is that correct? Todd Hoffman: Yes. Mayor Jansen: About 15 percent. Councilman Ayotte. Councilman Ayotte: A lot of focus on cost. Do you have some vendor performance history that would reinforce your desires to go with Barber? Is there better performance history on the others that cools you on the others? I know it's a low bid issue but I'm kind of concerned about just looking at cost. Todd Hoffman: Barber has a good reputation in the area of recreation trails. They built the first trails in the, really in the region in the metropolitan region back some 30 years ago. I had a conversation with the Director of Anoka County last year prior to bidding this project, and Barber was doing work there last summer and very good performance record in the field. They do this as a matter of business. City Council Meeting - June 24, 2002 Councilman Ayotte: Is that first trail that they built still there? Todd Hoffman: Still standing. Councilman Ayotte: Okay. Todd Hoffman: They built those first trails in the metropolitan region in the Hennepin Park system, now Three Rivers Park District. They were the first agency in the metropolitan area to build recreational trails. Councilman Ayotte: Thanks. Mayor Jansen: Any other questions? Councilman Labatt: What's going to happen when 101 South gets realigned? Todd Hoffman: This trail for the most part will stay in place as a secondary trail for the new trail which would go on 101. Councilman Labatt: Okay. And then the, when 212 goes through, obviously this is going to take a big swath of that path. What's slated for replacement for an overpass or who pays for that? Todd Hoffman: At that time I think it would be MnDot's responsibility to go ahead and incorporate all the pedestrian access points, over or under the new Highway 312. Mayor Jansen: That is accurate to the discussions that we've had. Councilman Labatt: Okay, so we'll put the trail down now even though we're crossing their proposed, we're still not looking at 15 years from now when the other road comes through of another bill? Mayor Jansen: No. Councilman Peterson: You're going to have some but not a great deal. Todd Hoffman: Correct, yeah. Takes out a swath and you know you're thinking 10, 12, 20 years. You're going to get a lot of use out of this trail. It's the connector between the north and south. It's the connector between our neighborhoods and Bandimere Community Park and the trail on 101 South this evening, and then 101 North, the City Council can see the construction of those 2 trails this evening, this is a historic day for the City of Chanhassen. There's no doubt about it. Those are going to be huge improvements for the City of Chanhassen. Phil Gravel: It is a no frills trail. It's just...no park benches... Todd Gerhardt: And this is probably, that section is probably the least expensive portion of the $350,000 worth of trail too. Todd Hoffman: Well the others are much shorter but perform... And it's important to make those connections. People are waiting for that frontage road to open. They're waiting for those trail and passes to open, and if we are standing aside when that thing opens in the next couple of City Council Meeting - June 24, 2002 days, and these connections are made in a timely manner, we're not going to be left in a predicament. Mayor Jansen: I do have one question, and it's kind of jumping the gun on information that council is going to be reviewing later this evening and Todd and I just had a brief conversation about the bid opening today on Highway 101 north. Councilman Peterson: The closing. Mayor Jansen: Correct, sorry. And what I'm curious about in that we're pleased with where those bids came in, in that this bid came in high. Is there, and you mentioned potentially re- bidding. Is there reason enough for us to do that with this 15 percent variance from what was originally estimated? Todd Gerhardt: I don't believe so. One of the things that crossed my mind was to compare the granular, the base unit costs of the two projects and see if you could process those as a change order to this project. But under state statute we're limited to 20 percent of the contract amount? Phil Gravel: We did look at, this afternoon we got the bid results of the north and Teresa faxed or emailed them to us and we checked them over and we're in line, or the projects are in line.., some of the storm sewer and things like that. They're all real close items so I think the only, the better explanation for the increase in cost is that I was low on my December estimates. Mayor Jansen: Okay. So the unit cost is what I'm hearing you say are comparable to what we're looking at on the north. Phil Gravel: Yes. Mayor Jansen: It's not as though we're paying more to the south and, okay. Phil Gravel: No. And that's, everyone else had the same question so that's why Teresa faxed those... Mayor Jansen: Okay. I appreciate you're having taken a look at that. Todd Hoffman: Made that comparison. One important note is that this is all contingent upon the receipt of the LUP. Limited Use Permit from MnDot for the southern 101 project. We're in day to day correspondence with MnDot on that permit and anticipate they'll work out details. They would like to see a 10 foot trail, and we would like to install an 8 foot trail. There's some water issues, primarily drainage issues that we're working with them on so continue to do that .... is the case on the 101 North trail. Mayor Jansen: Okay. But we did see that, as MnDot got involved on those issues to the north, how much the project costs escalated so I'm assuming if their comments cause similar escalation in costs, this will be brought back to us on 101 South. Phil Gravel: I think right now we're kind of down to just that trail issue so that... Mayor Jansen: Okay. But if we're going from 8 foot to 10 foot, I would anticipate a rather significant increase in the cost of the project. So that would be coming back to us. 10 City Council Meeting - June 24, 2002 Todd Hoffman: The quantity increase, yeah. We would come back and discuss that with council if we needed to see that happen. Mayor Jansen: Okay. Hopefully you'll just get the LUP, but we've had enough experience with that now. I had to ask. Okay, council if I could have a motion please. Councilman Peterson: Motion to approve as submitted. Roger Knutson: Mayor, if I could make a suggestion. Make it approved subject to receiving the LUP. So we're clear. Mayor Jansen: Okay. Councilman Peterson: So moved. Councilman Labatt: Second. Resolution #2002-56: Councilman Peterson moved, Councilman Labatt seconded that the City Council award the 2002 Trail Connections Project to Barber Construction, including the base bid of $323,080 and Alternate #1 in the amount of $28,000, for a total award of $351,080, contingent upon MnDot approval of the LUP. All voted in favor and the motion carried unanimously with a vote of 5 to 0. AWARD OF CONTRACT, MSA STREET IMPROVEMENT PROJECT 01-08. Teresa Burgess: I'm sorry, I apologize. Mayor Jansen: That's okay. Teresa Burgess: Tonight we're asking council to award bids for the 2002 MSA Street Improvement Project. We originally had requested the council on the agenda to award this project, the residential street project and to hold the two assessment hearings for these projects. However, because of some issues we had to postpone those assessment hearings. The MSA project, we withheld those bid open 2 weeks beyond the allowed time already by consent of the two low bidders, and therefore we did not feel it was prudent for us to continue to hold them open. We are starting to butt up against change orders for time. So we do need to take action tonight on this project. You will see that there is attached a copy of the assessment roll, as they would be done assuming that this project is awarded and the assessment hearing does not change those. You'll remember that in most cases the assessment is at, in fact in all cases, the assessment is at or below the feasibility study amount. In some cases significantly. Saddlebrook Curve is significantly lower. The bids came in quite well, which is why we were able to do that. The difference between the two low bidders is only $1,761.83, which makes it very difficult for staff. They are not able to say who the apparent low bidder is at this time. Staff is recommending award of Bid Schedule A, which is Audubon Road. B, Coulter Boulevard, C, Lake Drive, D, Lake Drive East, E, Saddlebrook Curve and F, Stellar Court with Add Alternates for curb and gutter on Stellar Court. Based on that recommendation, Mueller and Sons is the low bidder at $451,345.03. The City has experience with Mueller and Sons and has also checked their references and is comfortable with their reputation, as well as their ability to sustain this work. Also enclosed in the packet was a copy of the bid tabulation showing just how close these bids are, and you can see that Midwest Asphalt and Mueller, depending on which of the packages are the schedule the council choose to award, it does flip flop back and forth. But based on the bids 11 City Council Meeting - June 24, 2002 and the fact that this project does have financing available, staff is recommending award of the entire project. I'd be happy to answer any questions. Mayor Jansen: Thank you. Any questions for staff, council? Councilman Boyle: None. Councilman Labatt: No. Mayor Jansen: Okay. This is not a public hearing so if I could have a motion please. Councilman Boyle: I make a motion to award the construction contract in the amount of $451,345.03 to Mueller and Sons for Bid Schedules A through F for the 2002 MSA Street Improvement Project #01-08. Mayor Jansen: And a second? Councilman Peterson: Second. Resolution #2002-57: Councilman Boyle moved, Councilman Peterson seconded to award the construction contract in the amount of $451,345.03 to Mueller and Sons for Bid Schedules A through F for the 2002 MSA Street Improvement Project #01-08. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Teresa Burgess: Madam Mayor, just a clarification. I noticed that the motion did not include, and that's my error, I apologize. Did not include the add alternate, the concrete curb and gutter on Stellar Court. Does council want to do that? The $451,000 does include that add alternate. Councilman Boyle: And that is staff's recommendation? Teresa Burgess: That is staff's recommendation. Mayor Jansen: Mr. Knutson, do we need a separate motion for that or do we need to amend the first? Roger Knutson: Mayor, I understood the motion that, and I actually followed that, it is when you recommended, or you approved a bid of $451,345 and some change, to include the alternate. Otherwise that number doesn't make any sense. So as a point of clarification I think the staff understood to include that alternate because otherwise you wouldn't have approved that number. Mayor Jansen: Okay, thank you. Appreciate that. Thank you Teresa. Teresa Burgess: Thank you. Mayor Jansen: We did announce at the beginning of the meeting that those were postponed and that notices did go out for July 8th SO, and checked and there was no one here for those so we're okay. 12 City Council Meeting - June 24, 2002 PRESENTATION OF 2001 AUDIT REPORT, HLB TAUTGES REDPATH. Mayor Jansen: We have Dave Mol and Melissa, correct? Melanie Accola: Melanie Mayor Jansen: Melanie here this evening. Thanks for joining us. I was close. Dave Mol: Good evening. We have a brief presentation regarding the audit of 2001. I have a presentation, and I also have handouts that comes with like a paper... Mayor Jansen: Sure, thanks. Dave Mol: We're going to tag team here a little bit. Mayor Jansen: Thank you. Dave Mol: On the second page there, there are 4 reports listed. There's 4 reports that we are associated with when we conduct the audit. The Comprehensive Annual Financial Report, State Legal Compliance Report, a report on internal controls and then we prepare a management letter. We're going to have some brief comments on each one of those. Melanie Accola: The first report is the Comprehensive Annual Financial Report, and I just want to remind you that this is the City's Financial Statement. It's our role as auditors to form an opinion on the fair presentation of these financial statements. And for the 2001 Financial Statements we issued a clean opinion, which in auditor's terms an unqualified opinion. The City's also participated in the GFOA Certificate for Excellence. The Certificate of Excellence Program for a number of years. The prior year.., received a certificate award and Bruce intends to submit the 2001 report also into this program. The next report is the State Legal Compliance Report, and this report is required by State Statutes. An audit guide is established by the Office of the State Auditor's that set up 5 areas that we need to be tested during the auditing of it and we tested a sample basis in these areas, and on the testing that we had, that we tested during the audit we found no items of non-compliance. The next report is the report on internal control, and this is required by audit standards and it's based on inquiries and observations. There are 5 items that we noted in this report where the internal controls of the accounting can be improved, and they are reconciliation of the general ledger, developing a purchasing policy, additional segregation of some of the accounting duties, approval of adjustments and changes made to the accounting records, and some suggestions on changing the utility billing process. And we have more details of this in our report, and we've also gone through these with Todd and Bruce. Mayor Jansen: Okay, great. Dave Mol: Next is a summary out of our. Todd Gerhardt: I didn't want our reporter to miss out so, keep going. Dave Mol: Okay next is some comments out of the management letter, starting on page 6. This is an all fund summary of all the funds, all city funds. You can see total revenue here, $33 million total expenditures, $25 million. Increase in fund balance city wide of almost $7.5 million. It's primarily in the tax increment area. If you look under the debt service and capital project column, also expendable trust, there are some tax increment debt service payments that are 13 City Council Meeting - June 24, 2002 extended out farther, so this is building up a balance for those payments in the future. Next page, page 7. Some comments on the general fund. Measuring the fund balance at the end of the fiscal year, the general fund balance was sufficient to fulfill the cash flow needs that you have established by city policy. The graph on the page there shows that the line is the required cash flow reserve. The columns are you fund balance, so you've got a fund balance of about $4.7 million. Cash flow needs of $2.6 million. There is a difference there. That doesn't mean necessarily you have excess fund balance. The general fund is used to fund temporary deficits and other funds. Moving ahead to page 9, taking a look at your special revenue funds. You have 2 in this category. Just one comment on the Environmental Protection Management Fund. This fund has continued to have a decreasing fund balance. In other words the activities aren't funded by the revenue that's reported there, so recommendation to develop a long term strategy regarding financing of these activities. Moving ahead to the next page, looking at debt service funds. You maintain 28 debt service funds. Outstanding debt at the end of 2001 was $33 million. It's identified there on the page by type of bond issue. Also Mark Ruff from Ehlers and Associates works with Bruce in preparing cash flow projections to monitor if these bond issues have sufficient resources. Next page. Capital Project Funds. There's 15 project funds that are maintained, down from 42 two years ago. Bruce has done a good job in consolidating and eliminating funds that didn't need to be accounted for separately. You can see the fund balances there, in total $5,132,000. You have reserves in several funds. Capital project administration of $1.1 million. Park acquisition and development, $1.7 million. Then moving ahead to page 12, looking at your enterprise funds, that's your water and sewer utility generated a net income for 2001 of $161,000 and that is consistent, at least the 4 year history has been positive of generating a net income. You can see that on the graph on that page there. The line is operating revenue. The columns are expenses. Next page, you maintain one expendable trust fund, that's the Historic Preservation Fund. That has a fund balance of $5.9 million. That is primarily consists of TIF grant dollars. You received TIF grant monies over the past 3 years totaling $3.5 million. Those will be needed in the future to fund debt service requirements on the Tax Increment Bond issues you do have. Then to wrap it up, on page 14. There's some financial indicators. Property tax collection rate was 99 percent for 2001. Very good collection rate. Good positive financial indicator. Also for special assessments collection rate was 98 percent. Assessments are used to repay certain bond issues so here again a good, positive financial indicator. And then finally, just another reminder that Bruce doesn't necessarily care to hear. On GASB 34, the new financial reporting model that will be required for 2003. Some very significant changes will take place. That's what we have by way of presentation. Are there any questions for us? Mayor Jansen: Okay very good, thank you. Council, any questions? Councilman Ayotte: Yeah. Mayor Jansen: Councilman Ayotte. Councilman Ayotte: First off, this I understand, thank you very much. This upset me. So in terms of these. Page 8. Consider amending general fund balance process to include reserve or contingencies. To what parameters did you, is there further suggestion to what degree? Dave Mol: Yes. Again you have one requirement by policy and that's for cash flow. The reason for the cash flow reserve is again the timing of property taxes and state aid which is a primary funding source for general fund operations. Other than that, you don't have any formally designated reserves. Commonly what we see among cities is a contingency reserve of say 10 percent to 15 percent of your budget. 14 City Council Meeting - June 24, 2002 Councilman Ayotte: On page 9. Environmental protection management fund, not fully funded. You have explained that a strategy would certainly be in line. Is there a template example. Does the EPA, and I would expect this would be a state level, suggest a certain criteria template to employ for this sort of thing, or does one not exist? Dave Mol: I'm not sure if I'm necessarily qualified to answer that. You do have 3 activities that are accounted for in that fund. It's, if you could go back. Or Bruce, do you recall? It's recycling. Bruce DeJong: Recycling and Lakeshore Management and Reforestation are the 3 activities in that fund. Now there is not any requirement that we have this as a separate fund. I think what, I'm sorry. Is that better? Councilman Ayotte: Thank you. Bruce DeJong: There is no requirement that this function as a separate fund. This could be incorporated into the general fund. What Dave and Melanie are really suggesting to you is something that we pointed out in the past. There really isn't much for income in this fund. There is primarily two sources of income. One of those is interest earnings. That continues to go down based on two things. The interest rate climate and the declining fund balance. And the other is grants from Carver County for some recycling stuff, which has been very modest in the past. So what they're saying is, we can continue financing these activities in this manner for several years, but because the fund balance goes down $60,000 to $70,000 on an annual basis, we will have to come up with a financing strategy long term. Councilman Ayotte: Thank you. One last question. Page 12, and I don't know did Teresa, is she still here? The introduction of the meters. This is where it's going to help, right? With the enterprise fund. Teresa Burgess: The introduction of the meters will assist us in proper tracking of our water system. And will allow us to capture the funds that we are, for every gallon of water that we put out, we should be getting back the money associated with that. Councilman Ayotte: This is where it will show up? Teresa Burgess: In the Enterprise Fund, correct. Councilman Ayotte: Okay, thank you. Mayor Jansen: Okay. Any other questions? Councilman Peterson: One. On page 5 where you talk about the 5 reportable conditions. I don't whether you can recall from last year the rating of these out of last year's reportable condition. Dave Mol: The first one we had in last year's report, but a number of the accounts that we're referring to had been taken care of. There's still a, just a few additional accounts that we would like to see taken care of on a more timely basis so, but improvement in the area. Councilman Peterson: And the other 4 are new ones then? 15 City Council Meeting - June 24, 2002 Dave Mol: The written policy on purchasing was there last year. The other 3 are new. Nothing alarming here but again as Melanie had mentioned, these are improvements that we are suggesting to tighten up some controls in the area. Councilman Peterson: Okay, thank you. Mayor Jansen: Any other questions councilmen? Councilman Labatt: None. Councilman Boyle: I have none. Mayor Jansen: I'll just follow up on where Craig was going with the 5 reportable conditions on page 5 and just look to staff to give us an update on the plans to address these issues. And I guess I'm recalling the first two, and the second one I think we've seen a couple times so if we can really get those two addressed and taken care of. To your credit, you've had an enormous amount of other projects that you've been working on and we did make these lower priority to those other projects because you've done such a tremendous job of straightening up our financials and making them easy to really be able to digest and understand, so I'm not saying that it should have come sooner but if we can address those, that would be great and then just giving us a time line on addressing some of those other issues. And then bringing forward to us, again Todd we should probably work on putting it on a work session, the suggestion of amending the general fund balance policy so there's some council conversation about doing that before we get into the whole budget process so at least we've given some direction on that. I think those were the only issues that I think we really need to have further discussion and dialogue with staff on. Thank you. Appreciate the presentation. Why don't I ask if there's anyone here in the audience that has any questions. We'll put the auditors on the spot and they can certainly address those at this time. Seeing none, you're out of the hot seat. Thank you. Appreciate it. Good seeing you this evening. Dave Mol: Thank you. CONSIDER AN AMENDMENT TO INTERIM USE PERMIT #2000-02, REVISING THE SITE PLAN WITH A VARIANCE FOR A GRAVEL DRIVEWAY AND PARKING AREA; AND A CONDITIONAL USE PERMIT FOR DEVELOPMENT WITHIN THE BLUFF CREEK OVERLAY DISTRICT; MISS ROSIE'S FARM; 7461 HAZELTINE BOULEVARD; SUSAN MCALLISTER. Bob Generous: Thank you Madam Mayor, Council members. As you stated, this is an amendment to an existing Interim Use Permit for a petting farm on the northeast comer of West 78th Street and Highway 41. In July of 2000 the plans for the petting farm was approved. It had a driveway coming directly off of West 78th, north to the building with the parking located on West 78th Street and adjacent to this driveway. The applicant in the interim has requested that we revise the site plan. Unfortunately the Interim Use Permit was contingent on the site plan and we need to come back for council approval on this change. What's changing on this is the alignment of the driveway into this site with the parking area, and there also relocating the summer kitchen from the east side of the house to the west side of the house due to some Health Department concerns. The concern with the plan, as stated, the applicant is requesting a variance to permit either the use of gravel or grass paved system in the parking and driveway area. This is in response to the national, it's eligible for registration as a historic site and their guidelines are to maintain or minimize the changes to the property. The use of either gravel or the grass paved 16 City Council Meeting - June 24, 2002 system would be more in character with the historic farmstead, and staff is recommending approval of the amendment with some conditions that provide for the maintenance of that system to support the commercial activity. There were some issues regarding fire access, but one of the conditions of approval and I provided for the meeting tonight was a change to this condition for the 20 foot fire access lane over the 10 foot portion of the driveway. The applicant and the Fire Marshall are working on an alternative that would provide an emergency access from the northern parking area directly up to the farmstead area. That would be reserved only for fire access. They believe that they can work out this system and the condition is that you allow the applicant to either provide the 20 foot fire access, or this alternative with the Fire Marshall. We did also in discussion with the applicant, we would like to maintain the 10 year timeframe of the interim use to recoup the costs that will be involved with creating this so we revised condition 16 to make the termination date of July 24, 2012. Condition 18(a) was the, an acceptable alternative for emergency access. We did change condition 20 to say accessible parking rather than handicap parking. Staff believes that the amendment is appropriate and the use of the alternative system for parking is a valid concern. The second part of this is development within the Bluff Creek Overlay District requires a condition use permit. While there is no direct impact of this project, we were trying to cover all the bases and reviewed that conditional use permit. The only issue we had was the manure area in the northwest corner, there's a compost pit. The applicant is working with Carver County Environmental Service to develop a plan. Once that plan is complete then they'll submit to us for our review and approval. With that staff is recommending approval of both the conditional use permit and the amendment to the IUP subject to the revised conditions submitted tonight. With that I'd be happy to answer any questions. Mayor Jansen: Okay, thank you Bob. Any questions for staff at this time? Councilman Ayotte: Yes. Mayor Jansen: Councilman Ayotte. Councilman Ayotte: Which environmental agency at the county level again is concerned with what? Bob Generous: Environmental Services is concerned with the manure. The feces that's generated on this site. Councilman Ayotte: Now, with respect to the change in allowance for permit for burning carcasses and so forth, where would that, show me on the overlay where that was occurring. Bob Generous: I don't know where, she has to provide us with a disposal plan. I'm not aware that she is doing that on site. Susan McAllister: There's a little building that should be shown on that... Councilman Ayotte: And I guess where I'm going with this, I'm wondering with the review by the County with respect to the manure pile, is there any issue associated with the position that was where the animals were being, the animal carcasses were being burned. How's that relate to this layout? I didn't see, nor do I understand if there's any relationship. Bob Generous: Not to the amendment that she's proposing. They're moving the summer kitchen away from where the animals are and the only other alteration from the previous approval was the driveway road. 17 City Council Meeting - June 24, 2002 Councilman Ayotte: Is it conceivable to believe that the Health Department has to cut on where the relocation of the outside kitchen is going to be, could that impact this request? If they say no, it cannot go here, it must go there. Bob Generous: Not that I'm aware of, no. Councilman Ayotte: Okay. With regard to the sewer hiccup. Hiccup. Sewer hook-up. Was that a slip? Is that in any way connected in terms of where the sewer hook-up is going to be and? Bob Generous: No it's not. With the second phase of Arboretum Village, the developer is extending the sewer line to the property and that was worked out as part of the BC-7, BC-8 project I believe. Or with, in conjunction with that. Teresa Burgess: The sewer is brought to the property line. It is the property owners responsibility to bring it from the property line up to the building. Councilman Ayotte: But is that, is there any, will approval of this request be affected by the sewer hook-up, or vice versa? Teresa Burgess: No. Councilman Ayotte: Okay. Bob Generous: We're actually requiring the hook-up this time around because the sewer will be available. Councilman Labatt: When was the sewer brought to her property? Approximately what year? Bob Generous: It will be completed this month I believe. Teresa Burgess: The original trunk line was constructed last summer. The Arboretum Village should be in place at the end of this month, and that is the piece that she would be hooking up to is the piece... Councilman Labatt: For how many years has the septic system been failing out there? Teresa Burgess: We don't know how long it's been failing. Councilman Labatt: How long has the city been aware of it? Teresa Burgess: The City's been aware of it, I'm not sure when the property owner was notified but we were aware of it when she came in with her original application because we conditioned that she would have to correct that problem. Councilman Labatt: And that was what year? Teresa Burgess: That was last year. Councilman Peterson: I was going to say 2 years ago. Bob Generous: 2000. 18 City Council Meeting - June 24, 2002 Teresa Burgess: 2000. We were aware of it at that time because we did condition the approval, but I don't know when we sent the actual notice. Councilman Ayotte: You don't know when what? Teresa Burgess: When we sent the notice of failure. And our typical, just for the council's information, our typical failure notice does give a property owner a timeframe to address the issue in, and this property is not in violation of that timeframe at this time. Mayor Jansen: Okay, thank you. Any other questions for staff? Councilman Labatt: No, maybe Bob has some more. Mayor Jansen: Councilman Ayotte, questions for staff? No? Okay. This isn't a public hearing, and we don't hold further comment. I do know we have the applicant here in the audience so I'm not suggesting that we will hold a repeat of the hearing at the Planning Commission, but if there are any new issues that you would like to address with us. I know we received the one statement that staff has already made the adjustments for, so I'm just looking for any need to address the council at this time. Susan McAllister: My name is Susan McAllister. I live at 7461 Hazeltine Boulevard, but now it's 2930 West 78th Street, Chanhassen. 55317. I don't know ifI have any new issues per se except I'd like to clarify what you just asked. The chicken, the summer kitchen, moving that is not required by the Health Department at this time. I just know that it's probably going to be coming down the pipeline so I'd prefer to do that. And so they have no problem with that and I have already worked out a plan with Carver County Environmental Services regarding the manure area, in reference to the Bluff Creek, and the dead animal compost area and there's no issue with that whatsoever. I didn't realize that the City wanted to see the plan or I would have brought it up. It's a real simple, very simple plan. Just V'ing off, V'ing it with some bricks so it doesn't run straight down. It just kind of goes off to the side so that's what we've worked out. Mayor Jansen: Alright. Susan McAllister: And do you mind if I just, I need to ask Bob something because I don't know if I have an issue with something yet or not. Mayor Jansen: Okay, certainly. Susan McAllister: Okay, I do have an issue that I need to discuss. Mayor Jansen: We're going to do our best to keep this roped into about 5 minutes. Susan McAllister: Okay. Number, I believe it was condition number 8 that said, well where is it about the trees Bob? Help me. Bob Generous: It's 8. The applicant shall plant a windrow of trees along the south and east property line around the pasture. Susan McAllister: Okay. I have a real problem with that, and I'm going to reference the Rose McAllister farmstead public, what would that be? Historic assessment that was published in 19 City Council Meeting - June 24, 2002 December of 2000. It says in there that trees were quote, this is page 4 of that historic assessment. Trees were traditionally planted in rural areas of Minnesota to protect the farmstead from the prevailing northerly and westerly winds. The area that is mentioned in there for the east and south property line is, for the tree planting or what they're wanting the trees planted on, is clearly the south and east so that doesn't apply. It goes on to say, in addition the grove north and east grove now screens Rose McAllister farmstead from the visual intrusion of modem development. The only gap currently provides a view of a farm field, very much in character with the farmstead's historical setting. So therefore it falls very clearly to me that there should not be any trees planted there. Also, I've researched this with some farmers this afternoon so I don't have a lot of land but what I have I need for pasture. If I plant trees around the pasture it will shade the pasture, therefore causing the pasture not to grow well. Also the east tree line would shade me from the morning sun, and the south will shade me from the best sun I could possibly get for my pasture area. For the best possible growing conditions I could get. And as the trees mature, if they were planted on those two areas, they would take almost all of the water out of my pasture from 50 feet or more into my pasture area causing poor growing conditions and then table that with trampling with animal hooves, it's just, I can't. I can't go for that. Mayor Jansen: Okay, is there anything else? Susan McAllister: No, not that I know of. Mayor Jansen: Okay. Thank you. Appreciate it. Councilman Labatt: Could she answer a couple questions? Mayor Jansen: Certainly. Councilman Labatt: Thank you. Sue, number 13 on the plan here. Dead animal disposal plan shall be provided to the city for review, but tell me you were not aware, a couple minutes ago, you did not realize you had to file, or let the city know, is that correct? Susan McAllister: That I didn't what? Councilman Labatt: According to what you said a couple minutes ago, you said that number 13, you were not aware of number 13 was in here. That you're required to submit to the city your dead animal disposal plan. Correct? Susan McAllister: I didn't realize that I had to submit to the city the manure runoff thing that we've come up with with the Carver County Environmental Services, that's what I said. Councilman Boyle: I heard her say that she wasn't aware that we were going to ask for that tonight. Councilman Labatt: So do you have a plan for disposing of your dead animals? Susan McAllister: Composting them. With the, according to the Carver County Environmental Services protocol. Councilman Labatt: Have you submitted that plan yet to the city? Susan McAllister: No. 20 City Council Meeting - June 24, 2002 Councilman Labatt: I want you to briefly explain what that plan is right now then. Susan McAllister: Okay. What it, okay. Oh god, alright. Do I have to? I will do that. What it is is you take the dead animals and you put manure and wood shavings on there or leaves or whatever, and it breaks it down just like it would compost. Compost dead animal into a little pile of, like if you were to bum them. And there are sometimes where I have applied for a burning permit to burn my sheep because you can't bury sheep in Minnesota and you can't dispose of them by rendering truck won't take them so, either that or composting. And they've approved both of those. Councilman Labatt: So, and then that's my point. Some of the neighbors to the north there have become the victims of the smell of the burning sheep. Susan McAllister: I only burnt them once and that was I think 5 years ago or more. Councilman Labatt: Well. Mayor Jansen: Okay, and if you can just submit that plan to the city so that we have it on file, that would be appreciated. Susan McAllister: Okay. Mayor Jansen: Thank you. Councilman Labatt: And then a couple more questions. How many, can you tell us briefly how many animals, what's the population on your petting farm of the animals right now? How many animals? Susan McAllister: Not that many because I farmed out some of them for breeding and so on because I'm not open so I don't, I'm not really feeding them. I mean somebody else has got them to use and they're paying me so. Councilman Labatt: So what do you have there right now? Susan McAllister: Okay. I have a miniature donkey. I have a miniature horse that is coming on the property like, I was supposed to get it last week. He's been in Cologne for a while. I have goats. Councilman Labatt: How many? Susan McAllister: 4. And 2 sheep. Let's see. I think 10 geese. 2 ducks. 2 feeder pigs. No wait, 3 feeder pigs. A potbelly pig. 2 rabbits. Let's see, a chinchilla. 2 cats. And 2 dogs. I think. I think that's all it is. I'm trying to think if there are any more. I'm going around in my head. I believe that's it. Mayor Jansen: We do have the listing of animals within the original request. Councilman Labatt: I'm just seeing how they relate to what it is today. 21 City Council Meeting - June 24, 2002 Susan McAllister: Do you mind ifI ask why you asked that if there is a list that says what I planned on having and I did have that until last year when I farmed them out. Because I was waiting to open and, actually if there's no point in feeding it if I don't... Councilman Labatt: I'm just curious, you know. Mayor Jansen: ...just ask and answered, thank you. Councilman Labatt: And what is your plan, so within a month here the City will have to Arboretum Park, sewer and water up to your property line. What's your plan as far as executing ground breakage on? Susan McAllister: I'm planning on hooking up to the sanitary sewer. With the water, I have a working well and I plan on keeping that. Councilman Labatt: Okay, well what's your timeframe? Susan McAllister: In the next, I don't know. 3 or 4 months to hook up to that. Well before winter sets in I can assure you. Councilman Labatt: Okay. Susan McAllister: Until then I'm, a pump. They pump it when I call them so. Mayor Jansen: Okay. Teresa, is there any requirement for that to be done within a specific timeframe as to when the sewer's available? Teresa Burgess: Susan is on an approved plan through our inspections department and as long as she works with Steve Terrell to keep that up to date there's not a problem. Mayor Jansen: Okay. Susan McAllister: And I've been working with him to keep it up. Mayor Jansen: Okay. Anything else? Councilman Labatt: I think that's it. Susan McAllister: Let's try to keep it out of the gutter as much as possible. Mayor Jansen: No, thank you for answering questions. Appreciate it Susan. Susan McAllister: Okay. Mayor Jansen: Any other questions for Susan at this time? Okay. Then I'm going to bring this back to council. Discussion. Comments? Councilman Ayotte: I'm not comfortable with it. Mayor Jansen: Be specific. 22 City Council Meeting - June 24, 2002 Councilman Ayotte: There's been too much staff time interaction and too many things that appear to be on again and off again. And I'm simply not comfortable with it. I don't have a comfortable feeling that it is environment, that is healthful, because of all the loose strings that are still associated with other activities. And for that reason I just can't bring myself to say aye to this. I just don't feel comfortable with it. Mayor Jansen: So in order to be more comfortable with the healthful issues, we've addressed the sanitary sewer. Addressed the manure from drainage. Councilman Ayotte: I would like to see the specifics associated with the plan for positioning of the kitchen A, B. I also would feel more comfortable in knowing more specifics with the structural integrity issues on some of the buildings or on site. C. I still feel uncomfortable with respect to the hook-up of the sewer. I hear what staff has to say but I am not certain that there's going to be compliance on the part of the petitioner with getting the sewer hooked up, and where you have the situation where it's going to be a public events activity for the public to visit this place, and to not have those sorts of things done, I feel uncomfortable with that. I still feel somewhat, possibly because of ignorance of the disposal of animal carcass. I heard the explanation by Ms. McAllister, but I simply don't feel comfortable in terms of it being a positive, healthful environment for the city of Chanhassen. So for that reason I don't feel compelled to vote yes on this thing. Mayor Jansen: Okay. Why don't we go on with comments, and I can come back to those. Councilman Peterson: I guess I am more comfortable than Councilman Ayotte is. I think the only issue that, all the ones I think that Bob addressed can be put in as conditions, or are already as conditions and if they're not met, we can revoke the permit. So the only way I have a question is the trees around the pasture, and perhaps I should have asked this before. How big is that pasture? Is it an acre? 2 acres? Okay. That's the only one that I can empathize with the points but it's a screening issue more than, you know it will change the character of the pasture because of the shade and because of the water but having grown up on a farm, it's not going to be a tremendous amount but I think the screening would probably more than compensate for the benefit of the loss of that grass. Mayor Jansen: And I actually wondered, since you brought that point up, if since it was SHPO that noted in one of their memos that it might help to preserve the integrity of the farmstead, if we don't make that part of that condition. That the applicant would work with staff and SHPO and the Historic Preservation Society to make sure that that is in fact the right thing to do on this property. And how to execute it was I guess one of my thoughts to that point. Councilman Peterson: I would agree. Councilman Boyle: I agree with that comment. Mayor Jansen: Okay. Councilman Boyle: I really, other than what's been brought up, I feel quite a bit more comfortable than Bob does also. And the tree issue was one that I had noted, but if that can be compromised or worked out someplace, I think it's, I have no problem with this plan. Mayor Jansen: Okay, thank you. Thank you. Councilman Labatt. 23 City Council Meeting - June 24, 2002 Councilman Labatt: Well I'm more along the lines with Bob. I'm, you know with number 17. All buildings must meet code requirements as required for new buildings. All buildings and the areas intended for use by the public must be accessible. I'm more, you know some of these older buildings that you've got 3 of the buildings that used to belong to the farm at Lake Ann that were moved, have sat there on stilts for a year and a half or so. It seems like, before I go in there and feel comfortable voting yes on this, I need to see some of the action that, some of the plans that have been asked for back when this was originally approved have not been submitted to the city and some of the requirements so, until I see some action from the petitioner. Mayor Jansen: Okay. Appreciate that. I certainly can relate and see the issues that are being raised by Councilman Ayotte and now being addressed by Councilman Labatt, and I'm just wondering if there's a way for us to address those issues in a condition. For one, a lot of the issues that Councilman Ayotte brought up are conditions that do have to occur prior to the public having access to this property and this project, and maybe what we need is to be confident that we've put a condition in here that allows staff to stay on top of that enforcement, since there is a concern that I'm hearing on council's part that we maybe need to help provide that ability for them to go in and get these things executed and to that point, on the sanitary sewer, if in fact she's following the guidelines and was comfortable saying here this evening that you know hooking up in the next 3 to 4 months is something that would be feasible, potentially you make that a condition versus a denial since it has come this far. Councilman Ayotte: Well here's, Madam Mayor. Mayor Jansen: Certainly, please do Councilman Ayotte. Councilman Ayotte: Where I have a problem is the part that requires that our staff become more embedded and involved with regard to the effort. The staff has done...task in assisting Ms. McAllister through the process. And I'm thinking of the balance of the community with respect to staff's time. The requirement for Ms. McAllister to submit plans and proposals should not necessarily be hinged upon the staff's involvement as it has been in the past. I think Ms. McAllister has a responsibility to incur her expenses to further her business along, and to provide the submittals that the city requires without so much involvement on the part of staff. So with that caveat, if we could ensure that as a part of the condition that staff, and certainly supports the citizens as they would any other citizen, but to a reasonable point. Mayor Jansen: I certainly understand the points that you're making, and the only point I would make here, maybe on behalf of the applicant and staff having to spend a tremendous amount of time on this project is, it is somewhat unique. And there are other issues that I know that you are expressing these opinions towards and I think certainly encouraging the applicant to be expeditious in taking care of some of these issues is maybe coming across loud and clear. A conditional use permit is contingent upon all of these conditions being made, correct? I mean the council has the ability to yank this conditional use permit if these conditions are not fulfilled, is that correct Roger? Roger Knutson: That's correct... Mayor Jansen: Okay. So if we get to a point where the sanitary sewer is not hooked up in 3 to 4 months, this can be called back in and the CUP could be denied. Roger Knutson: For example on that condition if you wanted to put a time line on it, you could say it must be completed by, and you fill in the date. 24 City Council Meeting - June 24, 2002 Councilman Ayotte: I guess that's my point. To include, as example the structural concerns of those buildings. It seems to me that we should someway put a line in the sand with what the resolution is going to be for those structures. Is that a reasonable thing to request? Mayor Jansen: As referring to the structures that are still sitting on pillars and not on foundations currently. Okay. When would the inspections department typically take a look at those structures? While they're still sitting in their temporary locations or once they are placed on foundations? Todd Gerhardt: I mean we'd like to see it when they put the foundation down. When they start pulling a building permit. Teresa Burgess: Madam Mayor, ifI could point out. That condition does require that it be reviewed by a structural engineer, which we do not have on staff. That would have to be a consultant service that would be brought in by Ms. McAllister to evaluate those facilities. That would not be done by our staff. Councilman Ayotte: By when though? Is it reasonable to put a time line on that? Teresa Burgess: What it states is prior to public use. Mayor Jansen: You're making sure that your healthful issues are addressed prior to the public being exposed to those potential issues. Councilman Ayotte: Is there a safety issue now potentially? And do we as a city have any responsibility with the enforcement of the safety issue before it's open to the public? Teresa Burgess: There are concerns if we were to have public nuisance issues. And those fall under our existing ordinance with public nuisance. At this point we have not had complaints of trespassers in the area or safety concerns. We have had properties other than this one that have had buildings that were probably not safe, and they were not occupied and those did not result in any problem. This one because it's come through the process does fall under, we can now condition it with the approval, but the only other option would be to talk with our attorney if we felt that it was a public nuisance and pursue it in that manner. Councilman Ayotte: I'm more concerned with respect to safety. A kid going on the property and having an unsafe environment. Do we have a responsibility from that standpoint? Mayor Jansen: That would be as it pertains to the structures that are sitting in their temporary locations? Councilman Ayotte: As an example, yes. Mayor Jansen: Just to try and give you. Roger Knutson: I can't address the degree of hazards. I haven't seen these buildings. I have no knowledge of that subject. If we know something is hazardous, we should try to eliminate the hazard as quickly as we can. Putting a time limit on it? Are they unsafe if unused? The question is, and if the public isn't using these buildings or these structures, are they, do they still create a danger? Again I can't answer that question. I don't know about the structures. If that is a 25 City Council Meeting - June 24, 2002 concern you can say, you have to have these buildings meet this condition or be removed from the property by, and you can fill in a date if you wish to. Otherwise you can say as it is here, they can't be put to use. Mayor Jansen: Okay. Roger Knutson: Again, just a reminder, as you all know. They already have their interim use permit. They're already, she's already there. It's the amendments we're really addressing now. Councilman Ayotte: One mistake though does not begat another. Roger Knutson: No, but she can stay in business.., no matter what. Mayor Jansen: So I think what is being suggested is that because we have the ability to put conditions on this, because it exists, it would be prudent to put the conditions on because you can't deny the permit currently. I mean it's there. They're not operating. Councilman Labatt: The question is, these buildings I think were brought on after the permit was given, so now we can address them with this permit. Roger Knutson: Yes. Mayor Jansen: Sure, and put a sunset date on there as to when you would like to see those on foundations. Certainly. I think that's what Roger was suggesting. Now's the ability to do that so that's great, if you want to do that. Okay. Who wants to take a stab at making the changes that we have just been kicking around? Councilman Ayotte: I'd like to introduce the condition that we, based on staff recommendation, establish a sunset date for ensuring that the buildings that are on temporary footings, is that an acceptable term? Be planned out for an inspection to assure that they are safe before they're put on foundations. Mayor Jansen: Would that become part of condition 17? Councilman Ayotte: I would suspect so. Roger Knutson: 17 or 17(a), whatever you want to call it. Bob Generous: 17(g). Roger Knutson: You might want to consider putting an absolute time limit on that as well. Councilman Ayotte: Well. Councilman Labatt: November 1. Mayor Jansen: Because then it's done for winter? Councilman Labatt: Well. Mayor Jansen: During this construction period. 26 City Council Meeting - June 24, 2002 Councilman Labatt: Yeah. Yeah, I mean. That gives her 4 months. 4 ½ months. Councilman Boyle: It's all public buildings must meet code requirements as required because of the change of occupancy, blah, blah, blah. All buildings and areas intended for use by the public must be an accessible route. I mean, structures intended for public use must be evaluated by a structural engineer to determine the building is safe for occupancy. Aren't we covered? Mayor Jansen: I'm hearing the concern being that they've been sitting on temporary footings and it's more wanting to get them into a stable position in a more timely manner is what I'm not hearing the issue potentially is. Councilman Ayotte: With an effect date of 1 November. Mayor Jansen: Okay. So that will be an addition to 17 (g) as a sunset of the November 1st as Bob just defined the terms. Teresa Burgess: Madam Mayor? Mayor Jansen: Yes. Teresa Burgess: Just, I really don't have a preference but just as a cleaner way to do it, as an alternative would be just to condition that all of the conditions must be met by November 1 and then you've addressed all of them and given them all a sunset date. Councilman Ayotte: Well can we do that because, we can do that? Okay, because I thought because of the fact that the buildings were brought on the property after... Mayor Jansen: No, I think we're being clear as to what we're requesting and then you also have your sanitary sewer hook-up addressed by November 1st and all of the site plans that need to be submitted to the City will be done by November 1st. Just everything needs to be cleaned up and done by November 1st. Councilman Ayotte: I feel good with that then. Mayor Jansen: Okay. Okay. So ifI could have a motion please. Councilman Peterson: I make a motion that the City Council approve the Conditional Use Permit #2000-2, subject to 1 through 6. Mayor Jansen: Okay, ifI could have a second please. Councilman Boyle: Second. Councilman Peterson moved, Councilman Boyle seconded that the City Council approves Conditional Use Permit #2000-3 to permit development within the Bluff Creek Overlay District, subject to the following conditions: 1. No alterations or construction shall be permitted in the Primary Zone. 2. A 50 foot building setback shall be required from the northeast property line. 27 City Council Meeting - June 24, 2002 Any trail development must be coordinated with the City's Parks & Recreation Department. All upland areas disturbed as a result of construction activities shall be immediately restored with seed and disc-mulched, covered with a wood-fiber blanket or sodded within two weeks of completion of each activity in accordance with the City's Best Management Practice Handbook. The storm water runoff from the manure/compost area shall be buffered prior to discharge into the Bluff Creek Overlay District to protect water quality. The applicant shall work with city staff to develop and appropriate buffer plan. For safety purposes, the duck pond shall have a 10 foot wide safety bench at the normal water level. The slope of the safety bench shall not be steeper than 10:1. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Jansen: If I could have a second motion please. Councilman Peterson: I'd recommend that City Council approve the amendment to the Interim Use Permit #2000-2 as noted with conditions 1 through 30 with 31 being an addition that states that all these conditions must be met by November 1st of 2002. Mayor Jansen: And is that with the revision to the language on number 8 as far as the tree line? Councilman Peterson: That would be affirmative. Mayor Jansen: Will work with staff and the... Okay. Can I have a second please? Councilman Boyle: Second. Councilman Peterson moved, Councilman Boyle seconded that the City Council approves the amendment to Interim Use Permit #2000-2 to permit revision of the petting farm plan with a variance for the use of gravel driveways or grass pave system, based on plans dated February 22, 2000, as revised 12/27/01, and subject to the following conditions: 1. The site plan shall comply with Sec. 20-267. Petting Farms. Accumulation of feces shall be located at least 200 feet from any well. Accumulation of feces shall be removed at such periods as will ensure that no leaching or objectionable odors exist. The premise shall not be allowed to become unsightly. 3. Parking shall be limited to 10 stalls with the provision for one (1) bus. An eight-foot accessible parking space with an eight foot wide access must be provided. This space must be located as close to the business entrance as possible. Signage must be provided in accordance with the Minnesota Building Code. 28 City Council Meeting - June 24, 2002 t0. 11 12. 13. 14. 15. 16. 17. Handicap parking may not be located adjacent to the house unless the driveway from the southern parking area to the parking stalls and the parking stalls themselves are improved to commercial standards (26 foot wide drive aisles with seven ton roadway design). If the handicap parking is located in the southerly parking area, then an accessible trail must be provided from the parking area to the petting farm area. The applicant shall submit a landscape plan for the proposed development. The applicant shall show the location, size and species of proposed trees and shrubs. The applicant will be required to plant a windrow of trees along the south and east property lines around the pasture if it is deemed appropriate by SHPO and the Historic Preservation Society. Tree protection fencing will be required at the edge of grading and shall be installed prior to construction. Landscaping shall be added to the area between the parking lot and West 78th Street to provide a buffer. Included in the plantings shall be 2 overstory trees, 6 understory trees, and 6 shrubs. Installation of buffer yard plantings or a landscaped escrow is required prior to beginning operation of the petting farm. Landscaping may be required for the parking lot if it exceeds 6,000 square feet. The site shall only have access from West 78th Street. The northerly access on Highway 4 t shall not be used for public access. A dead animal disposal plan shall be submitted to the city for review. The permit shall be reviewed annually to determine compliance. The applicant must apply and obtain all necessary permits from regulatory agencies such as Carver County, DNR, USDA, etc. The interim use shall terminate in ten (t0) years (by July 24, 2012). The Building Officials conditions are as follows: All public buildings must meet code requirements as required for new buildings because of the change in occupancy classification. All buildings and areas intended for use by the public must be on an accessible route and accessible to people with disabilities. One accessible parking space must be provided. Accessible sanitation facilities must be provided. Portable facilities may be allowed with a seasonal use, (defined as a use of six months or less per year), if permitted by the building code. t. The use proposed requires that permanent sanitation facilities be provided, two restrooms, one male and one female. 2. The property must connect to city sanitary sewer service. 3. The existing septic system, which is failing, must be abandoned. 29 City Council Meeting - June 24, 2002 18. 19. 20. 21 22. 23. 24. 25. 26. 27. 28. 29. The food preparation facilities require approval from the Minnesota Department of Health. f. Structures intended for public use must be evaluated by a structural engineer to determine if the building is safe for occupancy. The Fire Marshal's conditions are as follows: f. g. h. A 20 foot wide fire lane shall be provided, or an alternate acceptable to the Fire Marshal. The Fire Marshal shall review the existing buildings to be utilized for the petting farm to determine code compliance. Smoking is prohibited in any building used in conjunction with the business. ;~No Parking Fire Lane" signs shall be installed on the fire lane. Any new driveway must be designed to support the weight of a fire truck year round. Any new driveway must be installed prior to the removal of the existing driveway. The amount of combustible material (i.e. hay, straw, etc) on the floors of any buildings used in the business must meet fire code requirements. All electrical wiring must meet code. Revise the driveway width to 26 foot at the parking entrance and not the whole driveway, and a maximum 10% grade is allowed. The accessible parking must be off the commercial portion of the driveway with appropriate signage. Add City Detail Plate No. 5300. Re-sod or re-seed any disturbed area. Add a benchmark to the plan. The applicant must get MnDot permit for right-of-way grading. Show parking stall width and length. Revise the driveway side slope to a maximum 3:1 along the west side. All plan sheets must be signed by a Registered Engineer. The applicant needs to submit: a. A maintenance schedule for the gravel drive for review by the City. b. A letter of credit or escrow in the amount of 125% of the cost of the annual maintenance. In addition, the applicant will be required to sign an agreement that: a. The property owner will submit an annual inspection report confirming that the driveway has been properly maintained to ensure the 7-ton design remains viable. That inspection to be performed by someone mutually agreeable to the property owner and the City of Chanhassen. 30 City Council Meeting - June 24, 2002 b. If the maintenance schedule is not met, the City reserves the right to perform the maintenance and bill the property owner for actual cost plus 30% for administrative costs. c. Should it become apparent that the property owner is incapable or unwilling to maintain the 7 ton gravel road appropriately, the drive related parking areas would be closed for commercial use until such time as they are reconstructed to meet the then current city standards for commercial drives. 30. The State Historic Preservation Office shall review and approve any alterations to the site. 31. All conditions of the Interim Use Permit shall be met by November 1, 2002. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Jansen: Sue, I think you heard some concerns expressed here this evening and I hope it's all taken very constructively. We're not saying don't do your business. I think we're just wanting to see it done properly in the public's best interest. So we appreciate all your efforts and just encourage that you move along on a few of those things, but you're certainly set with your driveway now and the shape that you wanted it in and we appreciate your working with staff, so thank you. And staff, we appreciate all of your work and effort on this particular project, and certainly the Planning Commission who went through it as well so thank you. APPOINTMENT OF COUNCIL REPRESENTATIVE TO SOUTHWEST METRO TRANSIT COMMISSION. Mayor Jansen: Councilman Labatt has a scheduling conflict now for that position and I believe Councilman Peterson has volunteered to take on the assignment. Councilman Peterson: Yes. Councilman Labatt: I move we appoint Craig. Councilman Boyle: Second. Councilman Labatt moved, Councilman Boyle seconded to appoint Councilman Peterson as the council representative to the Southwest Metro Transit Commission. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Mayor Jansen: Craig, thank you for taking that on for us. We certainly appreciate it. (The quality of the tape at this point was very poor for the rest of the meeting.) COUNCIL/COMMISSION LIAISON UPDATES. Councilman Ayotte provided the City Council with an update on the Environmental Commission meeting and the Water Treatment meetings. Mayor Jansen: Okay great. Any other reports from Council? I had a scheduling conflict with the last Planning Commission meeting so I was not in attendance, though we did discuss some of the issues that did come up during our work session earlier this evening with the Planning Commission in our joint meeting so nothing further to report there. And I don't think there's 31 City Council Meeting - June 24, 2002 been any other. It's been a little quiet for meetings. You can tell we're in summer mode. I should mention that on Wednesday evening this week, what is the name of their program? It's the Ridgeview Medical in conjunction with the Carver County leadership group. They hold a 3 month meeting that is in fact being hosted by Chanhassen Wednesday night. It's to tour projects that have been done in partnership and they had worked with staff to arrange to be able to start the tour at our Rec Center. There will be District 112 representative as well as our staff representative there to give them an overview of the project and how that was pulled together in partnership so I certainly appreciated staff's efforts in working on that. Plus that leadership forum that we had received invitations for at the beginning of the year so they are concentrating on the partnership projects and there will be a bus tour then of some additional projects throughout the county on Wednesday evening. So that is happening and I just wanted to mention to staff's credit that they have been working with those representatives to get that coordinated. Todd Gerhardt: ... hour of that bus time for that tour also. Mayor Jansen: I think Chaska used all oftheir's. There's another partnership for you. Get that all taken care of... ADMINISTRATIVE PRESENTATIONS: UPDATE OF BIDS FOR TH 101 TRAIL IMPROVEMENT PROJECT No. 97-12-3. Teresa Burgess: Thank you Madam Mayor. I do have some handouts for you here. Mayor Jansen: It's somewhat last minute in that the bids were just opened this morning, correct? Todd Gerhardt: Correct. Mayor Jansen: So all of this is fresh off the press from Teresa working on it today. Teresa Burgess: Madam Mayor and Council. I apologize. I have been up, down and all over the place tonight during the council meeting. The only thing I can claim is I'm still on an adrenalin rush from having opened these bids this morning...but this came in very well. If you turn to the last page there's a summary sheet in the packet that you received, and I do have a couple more for those people that are in the rest of the room, if you want to grab one. The very last page, I'll put it up on the overhead. The project had two bids, two alternates to the original bid. The original bid was the 6 foot wide trail. You can see here the numbers you see on the board, we received 2 bids. This one right here is the engineer's estimate, and it is $791,921.00 for the 6 foot trail. Our low bidder was Rosti Construction of $768,756.20. Bid Alternate # 1 was the 8 foot trail in here. Engineer's estimate was $864,671.00. You can see the 8 foot trail, $798,366.20 .... $30,000 difference between the 6 foot and the 8 foot trail with Rosti's bid. Now we do have another bidder.., move it over a little bit so people at home can see it. We did have a second bidder telling us that we do have a good project bid. Substantially higher though. Rosti is the apparent low bidder. We have checked all the numbers. We are currently checking their references but we do have a good feeling about Rosti because of past work, but we will still check their references just as a matter of course. Councilman Ayotte: Past work with us? Teresa Burgess: Past work with our consultant. And so based on that, at this point staff is comfortable with the bids. However, there is some information the council should be aware of and take into account. I have a call into the DNR. They have returned my call and said they 32 City Council Meeting - June 24, 2002 don't know but will find out for me by next week when I have to write my staff report for the council meeting on the 8th. The matching grant from the DNR, we are not sure what the matching ratio is. Our assumption, based on the information that we've received both written and verbal, was that it's a 50/50 construction cost only matching grant. However, when I called DNR today and said can you confirm that for me please, they don't know. There may be a different matching ratio for this. The City may not have to put up the 50/50. Or we may be able to count some of the engineering. We don't know. We won't know for at least a week. So that is still something that's out there. On top of these costs that you see in here, we do have some additional costs that are not in the construction, that is engineering that is also part of this project. Direct cost for this project include approximately $280,000 in engineering... We had a little bit of cost over run because we went back and re-designed the trail for the 6 foot. We had originally designed the 8 foot. We don't have those totals yet. They're still tallying that. We also have some in-house costs but we will absorb those costs within our existing budgets. When you see the final tally sheet for this project when we're all done, we will show them but they are not financed out of the funding for this project. So council just needs to be aware of that as we're talking about the project. One of the things that we did want to do tonight is, if there are any portions of the project that council is interested in how much would it save us to not do. I cannot answer that tonight, but I will go back and calculate that because we have to go back and look at the plans. The retaining walls are a huge part of the cost and it depends if there's a retaining wall in that area or not that makes the biggest difference. The other issues is wetland mitigation, and so I did bring the large scale map and I brought the plans and if council can just give me some ideas of what areas, if any, you're interested in us looking at for attrition to the plan, while still providing service to the neighborhoods. We will calculate that in time for the July 8th council meeting with the actual award and provide you that information in our next staff report. Mayor Jansen: There had been some conversation that on some of the northerly properties, that's where you have the easement issues as far as acquisition, that we could stop the project a little short and the neighborhood would still have that connection up to Pleasant View. If you could maybe point out that segment for us. Teresa Burgess: Sure. And again this is going to be really tiny and I apologize. We are still in the process right now, the attorney is working on offers to the property owners. We should have the appraisal and we did a mass appraisal which means we went out and we had the appraiser look at all of the properties at once and he's providing a letter response to each property, and not doing a full blown appraisal on each property. It saves the city a substantial amount of money and based on the type of easements we're taking, it's not necessary to do a full appraisal. So that information is still out. Until we have those numbers we really can't make offers but there are some parcels that it is obvious we don't need to acquire if there is not an ability to negotiate. The 3 northern parcels, are ones that we could possibly eliminate from the project. This is Pleasant View Road up to the north. This right here is Fox Hollow Drive, and if you look, although it's a little round about, Fox Hollow Drive connects up to Pleasant View Road, which means we would have 3 properties that would not have direct access, and actually 2 of those still would. So we actually have 1 property that does not have access onto the trail and we would still be able to provide service into the trail system. They would just have to take Fox Hollow instead of this section of trail right here. So that is an obvious place if we wanted to look at it as a place to eliminate cost would be to drop off this section of the trail, and not have to deal with those 3 property owners. These are the 3 that we have a substantial amount of easement to acquire from because right now the road right-of-way ends at the asphalt. Councilman Labatt: So how, the folks up there in Near Mountain. I mean how would they access north of Pleasant View up by Cascade and? 33 City Council Meeting - June 24, 2002 Teresa Burgess: Our trail ended at Pleasant View. Councilman Labatt: Right, but I mean they can come down. Teresa Burgess: They would come down through the neighborhood. Here's Near Mountain. Councilman Labatt: Yeah, so they would come down. Teresa Burgess: They would have to come down and pick up. Councilman Labatt: Right. But with acquiring those 3 properties, they could just shoot down. Teresa Burgess: They could shoot this way instead. Councilman Ayotte: In all honesty, the traffic activity on Pleasant View, I mean it's a game to go there. If you go out for a jog...go all over anyways. But that's not a bad idea and I think it certainly is an option we ought to consider. Teresa Burgess: And keep in mind the council's not making a determination this evening, unless you choose to. I'm just asking, where do you want me to investigate for cost savings. The other piece that we could take out, if we so chose, Choctaw Circle does not have access into another neighborhood unless we pick them up either from the north or from the south. We could theoretically eliminate either this piece or this piece. We would not eliminate both. I would not recommend eliminating both but we could eliminate one of these 2 pieces. If we eliminate the southern piece, we do not have any direct impact. However then Choctaw has to go north to get out. And I know that when we were in the public hearings previously, a lot of people were saying what they really wanted was access into downtown, and we're forcing them to go north instead. They won't have direct access into the downtown area. It's much more round about to get to the library, which was the big push. But we could eliminate this leg. Serve Choctaw to the north and not have to build this piece, which does go through some wetland type property. The other piece that could be eliminated that would be viable and still provide service to the neighborhood is this piece between Choctaw and Fox Hollow. Then we are forcing this neighborhood to the north, but Choctaw then comes south. This area is wetland. The problem with doing this, just so the council's aware of it, is we have 2 parcels, actually one parcel that then would not have access onto the trail directly and they would have to come, would not have direct into it. They would be cut off from the trail. Those are the two that we could eliminate one of either one. This one can be eliminated and still provide service except to the one parcel. These 2, one of them could be eliminated but not both if the council wants to explore that possibility. The remainder of the trail to provide service into the neighborhood and get them connected up with the rest of the city is not viable for this connection. We could take out some little pieces but it's just not worth the effort. Councilman Labatt: So Teresa, by taking a section out here, a section out there, that's going to interrupt the straight passage from Pleasant View all the way down to... from Pleasant View or Fox Hollow all the way down to downtown... City Council meetings. Teresa Burgess: If we do an interruption like this, then they cannot do that. They would not be able to come straight down. Councilman Peterson: This is ridiculous to be talking about. We're under budget so why are we talking about it? 34 City Council Meeting - June 24, 2002 Councilman Labatt: Yeah, that's my point. Teresa Burgess: It also becomes. Councilman Labatt: ...under budget so why do we, I hate to. I mean I hate to do a piece here and a piece there. Let's do the whole swath. Councilman Ayotte: The only place where I see, if we have difficulty in coming to an agreement with those homeowners with respect to easement, that's the only part that I think we need to address. Todd Gerhardt: I think the reason Teresa's giving you these options is if you remember the last set of plans that we had in front of you, it was bid out in segments. Council directed staff to look at segments and I suggested that we go with the linear foot set of specifications. So what Teresa's trying to do is to lay out options based on the linear foot, but your point is is that our bids have come under budget. There's still the question regarding the $100,000 dollar question. If it's going to be covered under the DNR grant or not, and we'll get you an answer to that hopefully before our next meeting. Teresa Burgess: And just to clarify. Staff's recommendation based on the bid opening this morning, and on maintenance issues, to take these pieces out makes it harder to maintain because now we're going to have to jump across where we can just hit it and go. Our recommendation would be the 8 foot trail and that we build the entire thing, with the only exception possibly being these 3 parcels based on our negotiations with those property owners. If they are difficult to acquire, we would not, we would just walk away from that and stop at Fox Hollow instead of Pleasant View. Mayor Jansen: Agreed. Teresa Burgess: But staff recommendation would be the 8 foot. Mayor Jansen: Yeah, because it looks like they're the only ones that would have an alternative to be able to use, if that segment was not built. And cut off access the way we do with the other 2. Teresa Burgess: Correct. And those 3 property owners also have direct impact on whether that piece gets built or not because if they choose to cooperate with the easement negotiation, they get a trail in front of their house. And if they choose not to, they don't get a trail where some of the other property owners have no, they don't have the option of cooperating or not cooperating. It's either we got it or we didn't, and so those 3 are easy decisions. The remainder staff would recommend approval. Mayor Jansen: Okay. And then you'll just get us an update on what the DNR in fact expresses to US. Teresa Burgess: We are hoping to hear back soon, and we have some other issues we need to work out with the DNR like how do we get the check. The important things. Councilman Labatt: You mean Tom doesn't deliver it? Teresa Burgess: Tom has volunteered to personally, to courier the check. 35 City Council Meeting - June 24, 2002 Councilman Labatt: Okay. Todd Gerhardt: I don't think we trust him though. Mayor Jansen: So at this point it's on our agenda to just get an update on the bids. Roger, Todd? I'm assuming at this point, even though the agenda says update of bids, can we move for approval or are you more comfortable with us waiting until we get the DNR information and it's on our July 8th calendar. Todd Gerhardt: Well you definitely can approve it tonight but I think we should do some verifications. Two weeks isn't going to gain a lot for us here. Roger Knutson: The only thing I heard, they haven't finished checking out the contractor yet... Mayor Jansen: That sounds like good diligence so we will wait until July 8th. Thank you for the update and running through all this. Appreciate it. Teresa Burgess: We would also like to publish the information so that people are aware that can catch it on cable TV that night. We'd encourage them to watch it from home so the council is going to take the action they're hoping for. Mayor Jansen: They've been here for every other one of our votes. I would hope they would drag themselves down for this approval, right. Councilman Ayotte: Mr. Mendez, are you listening? Mayor Jansen: Shall we be direct? That will be a good meeting. Teresa Burgess: Actually the next council meeting are those assessment hearings so we really don't need to pack the house. Mayor Jansen: Maybe with positive, right? Okay. I believe that was our last agenda item. Mr. Gerhardt, do you have anything additional? Todd Gerhardt: No I don't. We're moving dirt on the library. Councilman Peterson: Looking at the dirt coming out of there, I can't believe how black it is. That's a good sign isn't it? For soil conditions. Todd Gerhardt: Black? No. Teresa Burgess: Black are organics. Todd Gerhardt: Can't build on organic. Councilman Peterson: I know but right now the topsoil was remarkably black. Todd Gerhardt: Yeah, we're going to have good material to lay back down once we establish final grade out there. A lot of that material came from when we put the third addition onto City Hall and. 36 City Council Meeting - June 24, 2002 Councilman Peterson: Oh, we did spread it around didn't we. Yeah. Todd Gerhardt: Yeah. If you remember that site used to be substantially lower than the foundation of the old bank building and we used to pond water every once in a while. Councilman Peterson: So what they've found right now is good, bad or indifferent, or don't you really know? Todd Gerhardt: It's bad. And whenever you've got to pull something out it's bad, and then you have to truck in good will be sand. We did, you will see a change order on soil corrections. There was a typo on the bid specifications. Somebody typed in 6 inches versus 6 feet so the bids were based on 6 inches versus 6 feet so that will be another change order that will come before you but, it was a mistake and you live through those so. That's what contingencies are for. Mayor Jansen: Okay. Thanks for the update. Councilman Peterson: Where are we at with the Roundhouse Park? I haven't heard much about that. Todd Hoffman: I talked or communicated with via email with Deanna on a bi-monthly basis and she is looking forward to coming back and talking with the council probably either on the 8th of July or the following meeting. They continue to work through a variety of alternatives. Going non-profit. Not going non-profit. And so they've got a lot of work under their belt, but I don't think they're.., exactly how they're going to tackle the round house so, work has not started and I do not believe that the project could be done by the council's deadline which was this November. Deanna would like to see that completion date be next fall, but I was very specific with her that council does not have that expectation. They have an expectation of this fall so, you'll be seeing her shortly. Mayor Jansen: Thanks for the update. Anything else? As scheduled we are going to adjourn this meeting and move back to our work session items to get that completed this evening so we will be going back up to the courtyard conference room. So ifI could have a motion to adjourn. Councilman Boyle moved, Councilman Labatt seconded to adjourn the City Council meeting. All voted in favor and the motion carried. The meeting was adjourned at 8:45 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim 37