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1f. Approve Execution of Letter of Understanding for Utility Service to Beddor Property 1 s t I-F I ...- is CITY of .f CHANHASSEN 1 )k-1.;„ ' - 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 ,r. -,,1:; : (612) 937-1900 MEMORANDUM IITO: Don Ashworth, City Manager ,.__�..... ' FROM: Gary Warren, City Engineer GI�`'� _ ._ ., ,,,:;u:,,;,recd ,o co,1'siou DATE: September 8 , 1988 --- ----- vte Subndted to uo-nc4 I Or SUBJ: Approve Execution of Letter of Understanding for ?-f2 - ---u_ Utility Service to Beddor Property in Eden Prairie File No. PW156 II At the July 25 , 1988 City Council meeting, staff was directed to I prepare a letter of understanding for the extension of sanitary sewer and water service to the Beddor property located in Eden Prairie. I have included the July 25 , 1988 City Council minutes refresh everyone ' s memory on this item. Ito The attached letter has been drafted by the City Attorney and me for Council review and approval. We believe it reflects the con- I ditions of approval as requested by the City Council. It is therefore recommended that the attached letter of understanding be approved for execution and delivery to Mr. Beddor. 1 Attachments I 1. July 25 , 1988 City Council meeting minutes . 2 . July 21 , 1988 staff report . 3 . Draft Letter of Understanding. I I I II II II : 235 II City Council Meeting ,July 25, 1988 I 37 Resolution #88-79: Councilman Geving moved, Mayor Hamilton seconded to accept Supplemental Report No. 1 for West 78th Street Feasibility Study and to set the public hearing date of August 22, 1988. All voted in favor and the motion II carried. B.C. Burdick: I came here to say something about this matter tonight. If you II g g Y want me to wait to the public hearing, I suppose I can but I came prepared tonight. Njii- II Mayor Hamilton: It would be best if you'd wait to the Public Hearing Ji-m. That's when we'll take all the public record comments pertaining to this item. There will be a little more complete information included in the brochure at . - that time also. Councilman Geving: Jim, did you get a copy of this report? - - 1 B.C. Burdick: No. Councilman Geving: Would you like my copy? I B.C. Burdick: Yes. Councilman Geving: You'll be getting some of this information. II Mayor Hamilton: The Public Hearing is on the 22nd then there will be additional II information put in there. Gary will be sure that you get a copy of that. B.C. Burdick: I would like to address... At noon today, July 25th, Brian can II give you the information, I received notification of Council Meeting schedule for Monday evening, July 25th to consider a matter which is of the utmost importance to me and I feel it's very unfair that I get a notice on Monday noon for something which is of vital importance to us. I Mayor Hamilton: There's no decisions being made this evening. A11 we're doing is setting a public hearing date at which time you'll have ample time to comment II on anything that you wish to comment on so you're not being denied anything. B.C. Burdick: Yes, I'll be denied advanced notices given tonight except for a few hours and this has happened many times. We do get the Village Voice but for II some reason our office is 3 miles away and we live 4 miles away and it doesn't get to us until Tuesday. I'd just like to go on record that we don't receive proper notification... _ CONSIDER THE INTERIM SEWER AND WATER SERVICE, CRAIG MORTON PROPERTY (FRANK BEDDOR JR.) , WEST 184TH STREET AND TH 5. NMayor Hamilton: This item we discussed at our last Council meeting and we have ` ' additional information. V I 1 Gary Warren: Yes, Council directed that we deal further with the petitioner to obtain a more specific request and as such we received a letter from Daryl I Fortier addressing the July 18th letter. Basically, as he had explained at the 15 11 3 II • . City Council Meeting - Juk 25, 1988 A. meeting and at our last Council meeting had ng w� d discussed there, he had summarized in his paragraph which is, the City of Chanhassen will look favorably 1 upon providing temporary utility service to the Eden Prairie property adjacent to Park One to the extent that excess utility capacity within Park One permits. Jules Smith is here representing Beddor this evening if Council has any 1 questions of the petitioner. If you'd care for any futher elaboration, I'd be happy to do that. IMayor Hamilton: Jules, do you have any comments you'd like to make? Jules Smith: I think Daryl has covered most of it. We aren't asking to use up any capacity that you need. Just if there's excess capacity in Park One... 1 I might mention that those feasibility studies all assume that we would have 650,000 square feet of building in there and based on what's happening today, we're not going to get anywhere near that. We don't have a specific request for Ifit( a specific service requirement now, by the time that happens, since we now have �� another business moving into Park One, Third Addition and a third one. We haven't signed the third one but we signed the second one. I think we have a pretty good fix on what requirements will be there. Obviously we have no 1 interest in using up capacity to Park One either but I just think if it's there and we have a substant property. That piece of property in Eden Prairie. ..so in order to use it we'd have to probably have services from Chanhassen for a while. I But I think as Daryl pointed out, we have no interest in using up capacity that isn't there... II Mayor Hamilton: Councilmembers have any questions that you'd like to direct at Mr. Smith or Gary? i__ Councilman Johnson: I think we're going to have to get together and do a I feasibility study and see what. It's really hard to predict. You don't know what kind of water user you're going to get in. Three out of I think there's about 6 or 7 lots available there and if you've got 3 people, we can figure some 1 prediction of what water use you're going to have. It's going to be a tough feasibility study and I kind of agree with everything said in Gary's memo there. Jules Smith: May I just comment? I would agree that we know what it is and 1 we'd like to connect and what else is around, yes a feasibility study at that time should be made. At the present time, any feasibility study we did now a year from now wouldn't mean anything so we might as well wait until there's an 1 absolute request. All we're looking for is an indication from the Council that we can pursue that. .. I Councilman Geving: I'm not so sure that I agree with all of the comments that Daryl Fortier made in his resume of the meeting of our last Council meeting. The reason I say that, I don't think that we indicated to him in any way that we were very much in favor of this. We wanted to study it further and now tonight 1 when I hear our City Engineer tell us that we're still having a sprinkling ban and there's potential for this continuing for quite some time, I don't think that I would like to make a commitment to Mr. Beddor in a sense that he could IIthen go out and market this land with the understanding that water service would be provided to this property. I think that we would take a lot of heat from some of our residents if we were to provide you with water service in a [7 ml commitment form and then still have the sprinkling ban on our citizens every ■ other day. I think that'd be hard to sell. 16 II `City Council Meeting 11y 25, 1988 jr- Jules Smith: I don't think we're asking for a commitment. Councilman Geving: I think you are. Jules Smith: I think we're asking for you to consider at the time if something develops. Councilman Geving: I get the impression from this letter from our City Engineer that according to his discussions with your representatives, that a letter of understanding for interim service, utility service for this property would be �lJ worked out with our City Attorney and I'm not so sure I'm willing to do that. %J Mayor Hamilton: I think we would have to term that so it's a letter of understanding based on the facility that's coming in and the excess capacity that's available. Not just a blanket letter saying go ahead and do it. I think as Jules is saying, they don't use up their capacity of the Park and they would just as soon that if they got a bonafide proposal for a building, that then we review that. I think that's what he's saying. Councilman Geving: I think it's alright to study it but we're talking about acreage that's in Eden Prairie for one thing and we might be diminishing the extent of our own water capacity right here in Chanhassen. Not just in your park area but the rest of the citizens. I think that has to be reviewed first. Jules Smith: I think at that time you should review that. Absolutely. I don't 4 think we're asking you to do anything other than that. Councilman Geving: If you're not asking for a commitment, I'm in favor of it. Councilman Horn: I guess the only comments I have is, it seems like there will be a lot of staff time involved in this too. Now they said that the study would be taken off on the expense of the developer. I'm wondering if that includes staff time also or just any outside costs. Gary Warren: It wasn't specific but my thought at that time would be that it would be any outside in support that the City would contract for would be at the developer's expense. Councilman Horn: .. .because this looks like a very difficult thing to try and ' get a handle on. Gary Warren: It's hard to say the amount of time. I would agree with you that it's a difficult thing. It's.. .clear cut as far as waste water is concerned than it is for water for the reasons that I've mentioned here. I think just in bringing that back to Council is going to take some time for all of us to scratch our heads so there could be, I don't know the dollar amounts. Maybe $5,000.00 worth of staff time. Deal with getting a consultant on board to review his conclusions, bring it to the Council. Councilman Horn: One of the others. ..i.t appears to me after going through here that there were some of these things. An initial inclination is given to the -- devloper that we would look into this by the Council and staff at that time. ' 17 City Council Meeting - Jul( 5, 1988 { li ' Gary Warren: There's a reality in the fact that those stubs are there. There's no question about that. Ir- 1 Councilman Horn: I'm not sure, if we were the other city looking for a water supply since last year or so, it'd... I Councilman Boyt: I think we should certainly continue to look at this. It's a good opportunity for the area if not our immediately community and we shouldn't close the door at that time. IIMayor Hamilton: I feel the same way. I certainly agree with Jules. If you have a proposal, bring it to us and let us take a look at it and see if it's /F possible to work it out but as far as saying right now that we're going to go I \\8 along with anything that goes in there is not what they're asking and not what I'm willing to do. If there is a specific proposal, I think we should take a \ look at it. Maybe it should be at the developer's's ex pense. I would then move I pe that we direct the staff to work with the devloper based on any specific proposals that come in to deal with any excess capacity that might be available and to do a feasibility study at that time. IICouncilman Boyt: I'd like to follow up on Clark's point, if an actual study if undertaken then we should work out some way in advance to bill for staff time. We would bill any number of other developers a certain percentage for staff time Iand we should be covering your expense. Mayor Hamilton: I'll put that in the motion. IGary Warren: A point of clarification if I could. Is the Council interested in the staff preparing a letter of understanding, so to speak, which is what the IIBeddor people are looking for. Mayor Hamilton: Why don't you put it on the consent and bring it back to us. II Gary Warren: To incorporate the discussion tonight and add staff recommendations. Mayor Hamilton moved, Councilman Boyt seconded to direct the staff to work with the -devloper based on any specific proposals that come in to deal with any excess capacity that might be available and to do a feasibility study at that time and the developer will be billed for any staff time spent on this item. All voted in favor and the motion carried. INOISE ORDINANCE, COUNCILMAN BOYT. Mayor Hamilton: Jim, did you have anything you wanted to present on this noise ordinance? Jim Chaffee: Yes, just briefly. For about a year now we've been looking at noise problems associated with the growth that's occuri_ng along with just the ':` normal noise problems occurring in any muni.ci.pali.ty. During our research we found that there's very general and vague language in the present nuisance ' IIordinance that says any loud or unnecessary noises are potentially illegal. II 18 b. ,t ( . CITYOF _________. 1 A kiliki CHANHASSEN 1 : b,j t 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 1 (612) 937-1900 ,w-. % ' ■ ',„ MEMORANDUM ,A,,,,,,;;, 1 TO: Don Ashworth, City Manager -_r:. ..._ FROM: Gary Warren, City Engineer(10,, - 7 II DATE: July 21 , 1988 _ ,? .5.._g' r IISUBJ: Consider Interim Sewer and Water Service, Craig Morton Property (Frank Beddor, Jr. ) , West 184th Street/TH 5 File No. PW156 1 At the July 11 , 1988 City Council meeting, Council tabled the IIrequest by Mr. Frank Beddor, Jr. for interim sewer and water ser- vice for his property located on the east side of 184th Street in Eden Prairie (minutes in agenda packet) . Staff was directed to look further into the request to clarify the ambiguities. Mr . II Fortier, on behalf of Mr. Beddor, has researched their files and supplied the City with the attached information concerning the understanding which existed at the time of the Park One develop- II ment for interim service to this property. I likewise requested them to state their specific request since there was some con- fusion as to what exactly the City was being requested to do. The attached July 18 , 1988 letter from Fortier and Associates II addresses the specific request. After reviewing this material and the discussion from the Council II meeting , I believe I perceive a willingness on the part of the Council to support such an interim service connection, however, the difficulty arose in establishing exactly what is available in II the way of "excess" utility capacity. The City obviously cannot afford to be in a position where we are providing utility service to a neighboring user at the risk of not having service available to our own residents and/or commercial/industrial users. I 1 believe, as Mr. Fortier has stated, this would also be contrary to Mr. Beddor 's wishes since the most likely property adversely impacted by such a scenario would be his own Park One develop- II ment. I believe the attached statement that "The City of Chanhassen will look favorably upon providing temporary utility service to 11 the Eden Prairie property adjacent to Park One to the extent that excess utility capacity within Park One permits" is a reasonable commitment for the City to agree to with some additional qualifi- 1 l ' f Don Ashworth July 21 , 1988 Page 2 Ications. I have reviewed this with the City Attorney and he would add the qualifier that "The City, however, makes no commit- ' ment to provide such service" . I would further add that the com- mitment should be clarified to state it is dependent on receiving approval for such a connection by the City of Eden Prairie , the I Metropolitan Council and the Metropolitan Waste Control Commission. The determination of excess utility capacity would require an engineering study to document the excess capacity II which would need to be approved by the City Council. It is understood that the applicant would reimburse the City for this cost. IIWhen a specific user is identified (the current option is apparently dead at this time) and receives preliminary approval from the respective agencies; the City of Chanhassen would II authorize an excess utility capacity study for this area which would be brought back to the City Council for review and approval prior to any actual commitment of interim service is agreed to. IIIf this is agreeable to the City Council, I would recommend that the City Attorney be directed to prepare a letter of understanding for interim utility service for this property which IIincorporates the conditions as stated above. IIAttachments 1 . July 12 , 1988 letter from Fortier to Beddor. 2. July 18 , 1988 letter from Fortier and Associates. II 3 . July 14, 1988 file review of Park One. 4 . December 8 , 1980 feasibility study excerpt . 5. May 16, 1984 letter to Frank Beddor. I 6 . May 7, 1984 memo from City Engineer. 7. July 7, 1988 staff report with attachments. II 1 ' 1 ; DRAFT I Re: Sanitary Sewer and Water Service Extension File No. PW156 ' f Dear Mr. Beddor: II At your request and pursuant to the City Council' s direction , ' I this letter will document the City' s position regarding the extension of sanitary sewer and water service to your property in Eden Prairie adjacent to Park One (legally described in Exhibit II "A" ) . The City cannot make a commitment to extend sanitary sewer and water service to the property. The present City Council, however , is favorably disposed to authorize the extension subject to the following conditions: 1. The utility service would be for a temporary period to be defined by the City Council. II 2. The amount of capacity you would need based on a specific request from you. Ii 3 . That the City has excess capacity. This determination would be made in the sole discretion of the City preceded by an II engineering study that you would have to pay for including any City staff time. 4. You would pay the entire cost of the sewer and water I � extension. 5 . The approval of the M.W.C. C. and the City of Eden Prairie. II The current position of the City Council is subject to change and should not be viewed as any sort of commitment to extend sanitary sewer and watermain to your property. I � Sincerely , CITY OF CHANHASSEN + ' BY : Don Ashworth , City Manager I I . EXHIBIT "A" The following is a legal description for the Frank Beddor , Jr. property located in Eden Prairie: Approximately 42 .14 acres of land situated in the County of ' Hennepin , City of Eden Prairie , State of Minnesota, and legally described as follows, to-wit: The South 1076 .58 feet of the West 1799 . 94 feet of the Southeast a of Section 7 , Township 116 , Range 22 , as measured at right angles to the South and West lines thereof lying North of the North line of State Trunk Highway No. 5 . Th , I I I I I I I I I I I I I I I I I I I