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HomeMy Public PortalAbout07/01/08 CCM257 MEDINA CITY COUNCIL MEETING MINUTES OF JULY 1, 2008 The City Council of Medina, Minnesota met in regular session on July 1, 2008 at 7:00 p.m. in the City Hall Chambers. Mayor Crosby presided. I. ROLL CALL Members present: Crosby, Cavanaugh (arrived at 7:07 p.m.), Smith (arrived at 7:08 p.m.), Weir, and Johnson. Members absent: None. Also present: City Attorney Ron Batty, City Engineer Tom Kellogg, Planning Director Tim Benetti, Public Works Superintendent Steve Scherer, City Administrator Chad Adams and Recording Secretary Carla Wirth. II. PLEDGE OF ALLEGIANCE III. ADDITIONS TO THE AGENDA Adams recommended removing item 9B from the agenda Moved by Weir, seconded by Johnson, to approve the July 1, 2008 Council agenda, as revised. Motion passed unanimously. IV. APPROVAL OF MINUTES A. Approval of the June 17, 2008 Special City Council Meeting Minutes Weir advised that she provided a minor technical correction to Adams. Moved by Weir, seconded by Crosby, to approve the June 17, 2008 special City Council meeting minutes as amended. Motion passed unanimously. Cavanaugh arrived at 7:07 p.m. B. Approval of the June 17, 2008 Regular Citv Council Meeting Minutes The following corrections were requested: Page 4, Line 15-16: "Weir inquired if Cavanaugh, a CPA, would be able to look into the accounting and to look+rg at the reports provided to the Council." Page 6, Line 11: "...findings found that there are about 120 firefighters that are able to respond: the present system it is cost efficient..." Page 11, Line 7-9: "Weir inquired if there are situations where grading the soils in a perpendicular fashion is not possible due to the grade. Carlson stated that there may be some situations where it is unsafe to get grade it perpendicular." Page 13, Line 28: "...smaller concrete system." Medina City Council Meeting Minutes July 1, 2008 258 Page 18, Lines 6-7: "Weir stated that she thinks the Met Council is concerned about the potential low density in the rural residential areas and how it might effect their future plans to bring sewer to the district." Page 18, Line 21: "...She stated that if no further fertilizers are added, it takes a long time for the crops soil to grow out the phosphate." Page 19, Line 7: "Crosby stated that there should be appropriate Staff at City Hall during the office hours for unscheduled visits." Moved by Weir, seconded by Cavanaugh, to approve the June 17, 2008 regular City Council meeting minutes as amended above. Motion passed unanimously. V. CONSENT AGENDA A. Approve Joint Powers Agreement Regarding Public Safety Related to 2008 Republican National Convention B. Approve Raffle Permit — Twin West Chamber of Commerce Foundation — August 18. 2008 at 400 Evergreen Road C. Resolution Granting Approval of a Conditional Use Permit with Variance to Greenwood Stables. LLC for Construction of an Accessory Structure Located at 1982 Hamel Road D. Lift Probationary Status for Police Officer Jeremiah Jessen E. Approve Manure Management Policy Moved by Smith, seconded by Weir, to approve the consent agenda. Motion passed unanimously. VI. COMMENTS A. Comments from Citizens on Items not on the Agenda There were none. B. Park Commission Scherer reported the Park Commission is now well into the Holy Name Lake Park Restoration Project, the rain garden is established and the base cut started for the trail. He stated that at the Hamel Legion Park, work on Well Number #7 has started. Adams stated the Park Commission is near completion on the Trail Study and has begun review of the Capital Improvement Plan. The Commission will look at construction and control of the concession building and how the City would become involved in facilitating or taking control of the recreational program. Those issues will be addressed during the budget discussions. C. Planning Commission Vicki Reid noted that the Planning Commission has not met since the last Council meeting. She reported that an onsite tour of the Northfield and Maple Grove wind turbines has been scheduled on July 17, 2008. Also, an open house was held last Thursday on proposed Accessory Building Standards in residential areas. Medina City Council Meeting Minutes July 1, 2008 259 Crosby asked if anyone went to the open house. Benetti advised that several staff members from the. Planning Department attended. There was a good turnout between 5:00-6:15 p.m. and then attendance tapered off to only a few people. Benetti noted that Weir was also in attendance. He estimated just over 40 people signed in. Smith asked where the open house notification was mailed. Benetti advised that notice was sent to all rural residential and rural residential reserve properties. Staff will now present the Rural Residential and Accessory Building Standards Ordinance at the Planning Commission's next meeting and it will then be presented to the Council at its first meeting in August. Crosby asked about the tour of the wind generators. Reid stated the Northfield wind turbine will be toured first and the Maple Grove turbine if time allows. Benetti reviewed the anticipated schedule. Benetti stated the Planning Commission will meet in August so the wind turbine information will be before the Council at its first meeting in September. VII. OLD BUSINESS A. County Road 201 (Homestead Trail and Parkview Drive) Turn Back Review from Hennepin County Adams noted the second supplemental analysis provided to the Council based on questions raised by Cavanaugh. Crosby commented that on October 2, 2007 a resolution was approved that requested Hennepin County to review the turnback of some, all, or portions of County Roads 115 and 201 to the City of Medina and to consider alternatives to reduce speeds generally and traffic on County roads. He stated there have been a number of discussions with County officials and the initial response of the County is under consideration tonight. Adams explained that Hennepin County is not willing to turn back the Hamel Road portion to Medina. Crosby pointed out that to get trucks to western Hennepin County, the ability to use Hamel Road is important. Adams stated Hennepin County has completed their internal road review and is amenable to turn back both Homestead Trail and Parkview Drive. Orono and Three Rivers Park District could be contacted next about this matter. Onsite visits would then be scheduled between Medina Engineers and Public Works staff and Hennepin County officials to determine the function and state of the roads and start negotiations on what needs to be upgraded prior to the turnback to Medina. Adams noted that some analysis was previously completed along with the supplemental analysis provided tonight. Crosby stated there were two ways to deal with this issue: 1.) Take the roads back and place City restrictions on them; or, 2.) Work with Hennepin County to place their own restrictions, which would solve some of Medina's issues. Crosby stated his position that if these issues could be solved through policing with Hennepin County, he would prefer to not take back the roads due to the expense. He asked whether the traffic control measures have done anything to address the problem. Medina City Council Meeting Minutes July 1, 2008 260 Smith asked what were the traffic control measures by Hennepin County. Adams explained that Hennepin County posted signs limiting semi -truck or truck with large side trailers but will not prohibit smaller dump trucks. Crosby asked if it is prohibition or a suggestion. Scherer clarified that signs are posted to say "no semi -trucks" and are a suggestion. Crosby noted that suggestion signage is posted at the turn on Highway 101 south of Grays Bay to keep large trucks off that right-angle turn. Scherer stated his impression that the posted signage has reduced the level of truck traffic. Clara Ueland of Homestead. Trail stated the signs have been very effective and there have been very few semi -trucks, except relating to the construction of Highway 12. She stated there are a lot of dump trucks using the road but she does not know where they are going. She stated she understands this is not mandatory. Adams stated this year the dump truck traffic is part of the Orono School project and last year truck traffic related to the Highway 12, landfill, and Leawood Farms projects. Crosby asked if the dump trucks are on the route due to the amount of fill that needs to be removed from the Highway 394 project. Scherer stated he believes the Orono High School parking lot is also being reconstructed, which may involve hauling out recycled concrete. Adams reminded the Council that the City has implemented soft enforcement measures in development agreements to require truck traffic routes so trucks get to County roads as soon as possible. Also, the grading permit process has required the use of defined truck traffic routes. Cavanaugh stated the County can require subcontractors and contractors to use certain routes. Adams stated that is a possibility and another alternative would be to talk to neighboring cities to reach consensus on this issue and create a joint cooperative effort to deter truck traffic. Smith noted that stopping truck traffic on Willow Drive will not stop truck traffic because trucks can still go by the school using Parkview Drive and Homestead Trail. Adams stated it may help and other roads can be prohibited for truck use. Smith stated she thinks it is an interesting idea but she does not think the City can make a decision without letting the people who live on Parkview Drive and Homestead Trail know what the potential assessment could be. She suggested sending out information to those residents to tell them that if the City continues to work with Hennepin County to take back the road, the City would assure the road is up to par. The residents should also be advised of the assessment policy that will be used and how much their assessment would be. Smith stated she does not know if those residents have determined what it may be worth to not have dump trucks and belly -dumper trucks on their road. Medina City Council Meeting Minutes July 1, 2008 261 Adams suggested that in addition an option is a general news article in the City's July newsletter. Smith stated that would be all right as long as those residents also get a mailed notice. Adams suggested all parcels abutting Homestead Trail and Parkview Drive receive the letter. Crosby stated the residents also need a report about the action that has been taken, next steps to be taken, and Hennepin County's position. He commented on the need for a general assessment policy for roads in Medina. Smith agreed that a more accurate dollar number can be provided to the impacted residents once the assessment policy is adopted. Cavanaugh stated his opinion based on these numbers it is not an expense the other residents want to pick up. He noted the average annual maintenance cost between Homestead and Parkview is about $125,000 a year. Twenty-one households are affected that contribute $50,000 a year in property taxes. Cavanaugh noted this would be an inequitable use of City funds for 21 households. He reviewed the other City services that are provided to residents. Cavanaugh stated he can think of better places to use these funds than to put in roads the County is already paying for. Weir stated her issue is safety and more with Homestead Trail than Parkview Drive because there are dogleg curves on Homestead Trail along with bus stops for school children. Cavanaugh mentioned other areas where residents live directly on County Roads and noted these were County Roads when the people purchased their homes. He stated there are safety issues everywhere. Crosby stated the extraordinary factor, which has been difficult to deal with, is the fill available on the Highway 394 project and combination of that and an illegal project. He suggested the rest of staffs report be given since a decision will not be reached tonight without being analyzed on a budget basis. Smith noted the road will be in good condition when it is turned over to Medina but in time it will need to be reconstructed and that reality needs to be looked at. She stated that, at this point, the Council does not have enough information to make a decision. Crosby asked if the Council needs to decide on a response to Hennepin County tonight. Adams stated they do not. Crosby noted the entire western portion is owned by the Park District and asked whether they will be assessed. Batty stated to his understanding the Park District may not be exempt from assessments. Moved by Weir, seconded by Johnson, to table further consideration until staff has developed a report incorporating the facts for residents abutting Homestead Trail and Parkview Drive, determined potential assessment impact, and whether the Three Rivers Park District can be assessed. Medina City Council Meeting Minutes July 1, 2008 262 Ueland noted their major objective is to eliminate truck traffic on rural roads. However, it may be necessary to reconsider truck traffic limitation on other roads because if Homestead Trail is the only north/south route for trucks, it would not be fair for residents of Medina. Motion passed unanimously. Smith noted that two Medina businesses create most of the truck traffic. She suggested that their Conditional Use Permit (CUP) be reviewed to see if some restriction can be placed, such as the Interim Use Agreement. Adams stated staff will look at the CUP, possibilities through code enforcement, and other options and report back to the Council in August. VIII. NEW BUSINESS A. Water and Sewer Intercommunity Flow Agreement with City of Corcoran Crosby noted staffs memorandum suggests this item is not ready for action tonight. Adams stated that is correct. Crosby stated he has not read the agreement to the point he is comfortable considering action but is willing to have it discussed tonight. Crosby explained that the proposal is for Medina to provide water and sewer to a narrowly defined area of Corcoran for a proposed commercial park (United Properties project) on the south west border of Corcoran. Adams noted the Corcoran City Attorney is in attendance if there are any questions about the agreement. Adams requested a broad substantive discussion by Council of the agreement to raise concerns, if any. Then staff will negotiate the termination clause, debt service clause, obligation clause, and rate analysis. Crosby asked what happens if the connection is built but this business park never realizes its potential. He noted at that point, Medina will have the pipes in the ground and costs but no businesses to pay for the costs. Adams stated the infrastructure is to be built by the developer and Corcoran so there is no immediate cost to Medina for the pipes. There will be a credit provided on the pipe oversized to allow for future Medina development; however, that is included as Corcoran and developer responsibility and a minimum payment is being required to Medina should development not occur. He explained that oversizing Medina's water tower has also been included with Corcoran's responsibility as well, should the anticipated development in Corcoran not occur. Crosby noted the cost estimate for Phase 1 improvements is $2.6 million and $758,000 for the sanitary sewers along TH55, so this is a much larger commitment for Corcoran than for Medina. Corcoran Attorney Joe Langel stated the Corcoran Council is very much in favor of this project because Corcoran needs commercial development, like many towns, to improve their tax base. However, they need the utilities brought in to accomplish it and this arrangement seems like a good fit. Langel stated Corcoran understands Medina's Medina City Council Meeting Minutes July 1, 2008 263 concerns about the finances and respects and acknowledges those concerns. He stated they are close in negotiations and are now at a point where they will start to educate councils and the public about the project. Crosby asked how Corcoran will pay for it. Langel stated he understands some bonding is involved as well as developer payments. Crosby noted it is really a credit call by Medina examining the credit of Corcoran. Johnson stated that is correct and if the tax base occurs there is every probability Corcoran will service the debt so it is not a "giant leap of faith". He noted language in the agreement to assure the payment covers Medina's costs. He stated Medina can feel comfortable about the credit question and structural provisions. Johnson pointed out that if, for whatever reason, the project goes in an unexpected direction, the obligation is for Corcoran to support the infrastructure. If Medina believes Corcoran is credit worthy, Medina should feel comfortable with this deal. Batty stated he has not reviewed the most recent revisions to the agreement but did have a question about financing. Crosby asked who drafted the agreement. Adams stated it was a team effort through a combination of Corcoran staff and attorney, Medina staff, with engineering and legal comments. He noted the debt service clause is new territory because they have not seen other agreements containing this type of requirement (Sections 4.23 and 4.37). In most joint municipal projects they just trust each other and that type of language is not included. Johnson stated it was drafted to assure there is a core commitment to cover the costs. Crosby stated if the agreement is entered into, Medina has to feel comfortable that they are not taking a credit risk with another city. Secondly, they need to make sure that by doing this they are not prejudicing negatively Medina citizens in provision of services because service is being provided to Corcoran. Scherer stated he is comfortable that will not be an issue because of Well #7 and if the water tower is expanded, it will be fine. Crosby questioned the timing of the project. Adams stated Corcoran wants the project in the ground by this fall. Langel stated that is correct. Adams pointed out that as a past policy Medina has not allowed property owners and developers to connect to sewer as a growth management issue. Medina uses the MUSA area as a growth management area. Smith asked how Medina will determine Corcoran's bond rating and payment history on bonds. She asked if the Corcoran annual report will indicate if they have sufficient funds for operating. Johnson stated typically a financial advisor, like Ehlers, would do standard financial ratios to look at their indebtedness versus tax base or revenue base to support the indebtedness. He stated he would suggest Ehlers prepare such a report. He commented that it would take a big mess for a municipal entity to default on something Medina City Council Meeting Minutes July 1, 2008 264 like this. That is why many such arrangements are taken on faith; because defaults in municipal areas are so rare. Crosby stated his desire to assure the language is "bullet proof." Smith stated her reluctance to consider this proposal if it involves "breaking new ground." Johnson clarified the "ground" being broken is that the agreement language is being written tougher rather than the traditional "trust me" deal. Adams noted Corcoran paid for the Ehlers financial analysis study on this project. In that study it indicated a potential $400,000 risk to Medina of over sizing the water tower »if Corcoran were to drop off. However, that issue has been addressed in the language of the agreement. Crosby questioned whether the Council is prepared to move forward if it is assumed the agreement is "bullet proof and the background work has been done to assure Medina is not being disadvantaged in terms of providing services to Medina residents. Johnson stated "bullet proof in his mind means it is 100% but nothing is 100%. He stated it is highly improbable, given the structure built into the agreement, that Medina would be left on the hook for expenses; however, it would be prudent to do a last review and check on the agreement language, to have Ehlers revisit the assumptions made a year ago since there have been economic changes, and determine whether Corcoran has applied for a rating from Standard and Poors or Moody's. Crosby stated Medina should also want to assure Corcoran adopts a resolution. Crosby stated he or Johnson, or both, should be in attendance at that Corcoran Council meeting when they take action. Smith stated she has some conservation issues. She referenced Section 3.1, and asked whether limits are being placed on the capacity being given Corcoran. She also noted Medina developers have been required to put in a well or use storm water ponds to water their grass. She asked if the City's water conservation measures for businesses are as up -to -speed as they should be. Scherer stated they were revised just last summer. Smith asked whether low flow toilets are an ordinance requirement. Scherer stated he is unsure but requirements for sprinklers with rain sensors and utilization of storm ponds are included. Smith questioned whether any of the businesses will be high users of water and/or sewer. She stated her belief that water conservation will become more important than the current concern about oil. She stated her support to look at enforcing water conservation measures, noting that Medina will have the opportunity to review the building plans for this project to see if they fit in Medina's ordinance. Crosby asked if there are limits to the gallons to be provided. Johnson stated that is usually a function of the pipe size. Medina City Council Meeting Minutes July 1, 2008 265 Johnson stated that the Met Council generally has meters along the pipe to determine flow, where it is arriving from, and who is responsible. He noted ultimately this project will connect to a Met Council facility so there will be such a meter to look at the flow. Smith stated her concern that Corcoran not use more resources than their share. Adams stated Medina is allocated a certain number of SAC units and that has been evaluated by Bonestroo for the pipe and Ehlers as it relates to cash flow and utility rates. Smith stated she would like a limitation included in the agreement. Adams explained there will ultimately be three phases of this development so the pipe phasing has been taken into consideration. He noted the SAC number is governed by the Met Council but it could be restated in the Agreement. Johnson suggested it would be prudent to consider that the Met Council is tracking carbon footprint associated with their processes. He stated at some point in time the Met Council may manage carbon footprints more aggressively and he wouldn't want Medina assessed charges that cannotbe passed through for projects in Corcoran. He stated that any pass through fee from the Met Council, or increase in fee, needs to be passed through to Corcoran and so stated in the agreement. Weir asked what jurisdiction a Medina ordinance would have in Corcoran. Scherer stated the Agreement indicates Corcoran must abide by Medina ordinances. Smith noted the technology to conserve energy and water is changing rapidly. She stated her support for low maintenance landscaping as well. Smith reported the City of Champlin already has an odd/even sprinkling ban in place. Adams stated staff will research adding resource conservation language to the agreement. Eric Simmer, United Properties, advised that for the past three years they have been seeking entitlements, the final plat has been recorded, they are waiting for the utility agreement, and then they will survey the site and start grading. Crosby asked for additional details. Simmer stated the site is 55 acres on Pioneer Trail and Highway 55 and extending eastward. They propose 500,000 square feet of Office/Industrial and 25,000 square feet of projected retail when the traffic signal goes in. Simmer advised they are obligated under the development agreement to irrigate this three-phase project from their pond. Crosby asked whether they are prepared to move forward considering the current economic circumstances. Simmer answered in the affirmative and explained they would start with mass grading of the site, installation of backage road and storm water, and prep the site for development. Simmer advised that United Properties will pay $1.5 million for site improvements plus there are a TIF package and assessment package. Adams stated this item will be on the next Council agenda. B. . Ordinance Creating the Uptown Hamel-1 Zoning District and Uptown Hamel-2 Zoning District; Adding New Sections 834.1 and 834.2 Medina City Council Meeting Minutes July 1, 2008 266 Benetti noted the Council has been provided with two versions of the Uptown Hamel Ordinance, one showing changes in strikeout and the other a "clean" copy. He stated the Comprehensive Plan identifies the Uptown Hamel area as Mixed Use Business (MU- B) and noted the objectives for Mixed -Use designations. He explained that Mixed use Business provides opportunities for multiple, compatible uses on one site including two or more of the following: residential, general business, commercial, or office. Residential densities in this designation will be between 7 units per acre and 45 units per acre and may include some vertically integrated uses. Benetti provided a presentation, reviewing the five objectives contained in the staff report, developable acres, and potential densities. He explained the staff is proposing the creation of two new districts: UH-1 and UH-2. The difference being that UH-1 has an overall density of 10 units per acre and UH-2 can include a mixture of residential and retail service, or only residential, or only commercial. Approximately 120 units would be available if entire area develops as UH-1 at 10 units per acre. Benetti stated staff proposes using the general use list for office, retail, and service uses instead of the list of 103 specific uses. The Planning Commission expressed concern should a use inadvertently be left off the list. However, if that were to occur, Planning Staff can consider whether it should be allowed. Smith stated she thinks there is a danger of using the specific list because it may omit a use that someone wants. Weir explained the Planning Commission's concern is how to keep out unwanted uses, like a porn shop. Crosby pointed out that Page 3 lists some of the items not permitted. However, he felt some should be allowed, such as a footware and leather goods repair shop. He stated his support for use of the six categories. Batty stated he strongly favors the six uses rather than the longer list of 103 specific uses. He suggested addressing the problem of specific uses that are undesirable (pawn shop) by specifically excluding them. The other issue is not wanting big versions of some uses. He noted that with the list of 103 specific uses, Target and Home Depot and others could arguably fit so a square footage limit can be considered if small scale retail shops/office uses are desired. He also noted that if something is not on the list that the City wants, it may be found to be similar to something on the list. The ordinance can also contain a list of not desired uses that Medina wants to specifically exclude. The Council indicated their support for the six category list, inclusion of a list of not desired uses that will be excluded, and to also indicate a square footage limit. Crosby commented on the need for the ability to override the ordinance. Benetti explained there could be a threshold square footage limit and anything beyond that would require a CUP. Weir questioned why heavy density is being considered for the preserve property. Benetti stated staffs understanding that St. Anne's is thinking about some type of housing or senior housing. He noted that the City does have a tree preservation ordinance as well as a wetland ordinance so they will be protected. Medina City Council Meeting Minutes July 1, 2008 267 Weir stated she is surprised how much is proposed for commercial considering the City wants density. She asked whether the map should be changed or if commercial should have a minimum of so much residential. Also, if some underground parking is being required for residential, it would heavily favor commercial development because of the high cost to build underground parking. She asked if it would be feasible to require a smaller component of residential in the commercial development so they would also have to provide some underground parking and infrastructure. That would also provide more density and sense of community. Smith stated her agreement that the current proposal favors commercial. Weir stated her support to have more land zoned UH-1 or else require some residential units in the UH-2 zone. Benetti explained that the zoning map follows the current land use. Crosby commented on the importance of a creating commercial core. Weir again stated her concern with the high level of commercial and noted there is no reason to not have commercial on the street level with residential on the upper level. Johnson stated he has seen very attractive mixed use developments with retail below, interior parking, office on the second level, and residential above. That also resulted in the creation of a commercial area as a core. Weir asked if he is saying it is reasonable to require a certain amount of residential density within commercial. Johnson stated the City can create incentives to provide residential. Weir stated that was the original vision for Uptown Hamel. Smith stated the issue is that UH-2 requires no residential which concerns her that things will not change from what they are today. Crosby asked why have UH-2 at all. Benetti explained that staff wants developers to have the ability to present a plan that is only commercial. Staff feels that any development in this area would be good development. The UH-1 zoning does require residential and a ten unit per acre threshold so having both allows flexibility. Weir stated her concern about requiring underground parking for one district, but not the other because it is so expensive. And, for that reason, no one will want to construct residential in UH-2. Smith asked how retail will be vital without parking, noting that having only on street parking is not sufficient. Weir agreed and noted it is also not a pedestrian friendly community when buildings are surrounded by parking lots and some density is needed to feed the office and commercial uses. Adams asked what would require the residential component. Benetti stated under the review process a residential component would be required for any remodel or expansion project in Downtown Hamel. Smith stated that she would support making the UH-2 area smaller in size. Medina City Council Meeting Minutes July 1, 2008 268 Batty noted the discussion tonight is the text of the ordinance, not mapping. However, if the Council desires only one district then the other will fall away. He explained that a mapping process will occur separately where the properties will have to be rezoned. Adams described a parcel that St. Anne's has indicated they may want to use for a cemetery. He asked if a cemetery would be permitted under UH-2. Benetti stated it would not without an Interim Use Permit (IUP). Benetti pointed out there are a lot of residential uses on the north side and staff does not want them to become non -conforming. With the proposed zoning, the property owner is able to reconstruct should the structure be destroyed or damaged, or if they want to expand beyond 50% of the value. He advised that only the uses listed on Page 3 of the clean version could become an IUP. Weir asked if an IUP has to have a sunset date. Batty stated it does not need to have a date certain but could have a triggering event, such as redevelopment. Weir asked if it would be appropriate to have a cemetery as an IUP. Benetti explained that semi-public uses would fall into a potential new zoning category. He pointed out that the zoning as currently being identified on the map would provide St. Anne's with more opportunity. Adams noted the church can always request a rezoning, if needed. Crosby asked how the Council is to decide whether the zoning map should be changed and if it wants two zoning districts. Batty stated the map is for illustration only and not under consideration tonight. Also, it has not been presented at a public hearing. The consideration tonight is the text of the ordinance. Smith stated she believes the map is a huge part of the discussion. Adams asked if it is Council's direction for staff to add more residential components. Or, if the Council wants one district with a minimum residential requirement. Johnson stated it appears the Council would support keeping two districts with different weighting of residential ratios and density requirements in both. He noted that would also provide flexibility to developers. Weir stated it is her opinion that it would "level the playing field." It was noted if the developer wants to provide no residential in a UH-2 area, it would require a variance. Cavanaugh asked about the potential user for a parcel. Benetti advised that Ron Jacobs has purchased that site plus two additional parcels and will propose a restaurant use. However he has indicated no interest in a residential component. Cavanaugh asked if this will stall development in Uptown Hamel or be of benefit. Benetti stated the City would like to see as much residential as possible. But if the City Medina City Council Meeting Minutes July 1, 2008 269 gets another Argent Parc, then the density numbers will be there. He explained that the Council can change the zoning of the parcels but he thinks it is key to keep a core district and the development flexibility available. Weir asked if the free-standing restaurant developer could be required to build a foundation and walls so the building can support future upper floors. Crosby stated a free-standing restaurant probably has a theme and the roof design is a big part of that identity. Johnson noted you may not want to live above it either. Smith named several restaurants and bars that have residential above. Crosby stated his concern that if an area is having a tough time getting started, you have to "prime the pump" in some way. He stated his support to have two categories and change the map. Smith stated it is not fair or a "level playing field" to require underground residential parking for one district and not the other. Benetti stated staff is trying to keep parking flexibility alive. Johnson pointed out the difference and rationale is that with commercial uses the car does not need to stay overnight. However, with residential the car does stay there overnight. He noted that is the difference so it is logical to have a parking requirement for residential since the car needs to be there over night. Smith stated if she cannot find a place to park, she will not shop or eat in that area. She stated that parking is already an issue in Uptown Hamel so she questions whether it is the right thing to require underground parking. Weir noted residential units require one parking space but most will have two cars. She referenced the number of potential cars for the residential areas and asked where they will park. Crosby noted right now there are no "players on the field" and the requirements have to be reasonable. Weir stated she did hear public comments that it is not a "level playing field" because of the underground parking requirement. Johnson suggested preparation of an analysis or report on the parking dynamics since availability of parking will drive the project and density. Smith stated there has been past discussion about a municipal parking lot. Johnson stated there would have to be "teams on the field" to justify a municipal parking lot. Weir noted that Hopkins built their performance arts center and parking ramp at the same time. They provided easy and ample parking and the Hopkins area took off. Crosby recessed the meeting at 8:55 p.m. The meeting was reconvened at 9:02 p.m. Benetti explained that the Planning Commission found Mr. Farr's development is not a consistent use in this area. Mr. Farr first proposed a full nursing memory care facility Medina City Council Meeting Minutes July 1, 2008 270 and now indicated he will be doing half memory care and half assisted living. Benetti asked the Council whether or not it should be allowed. Weir stated the use must be something that qualifies as a living unit. Johnson stated that does not appear to be the highest and best use of the land so he is inclined to agree with the Planning Commission's recommendation. Smith stated that memory care facilities are needed. She asked where this type of use could be located. Johnson suggested they are not appropriate in a business district. Weir stated she likes the design and would support it if it qualifies as a living unit. Benetti noted the need to add language indicating: "Residential dwellings with a density under 10 units per acre if combined with another allowed use" to Permitted Uses in UH- 2. He explained that this provision will allow the developer the ability to provide a typical retail service use with a lower residential density (below 10 units per acre). Weir stated if this change is made, it will never reach the density required by the Metropolitan Council. Benetti stated the goal is to maintain an average of 10 units per acre on developable land. Council consensus was reached to use the general list of six categories for both UH-1 and UH-2. Smith stated if the City already has the density it needs with the map, then she supports not requiring residential in UH-2. Crosby stated he will want to see the revised text because it depends on the definition of residential uses. Benetti stated that is correct. Weir noted a project could also provide more density than required. Benetti stated staff would welcome that type of project. Crosby asked if it is practical to adopt the UH-1 and UH-2 language without seeing the actual land on a map. Weir stated she would like to see the map before making that decision. Batty stated maps can be brought back but the only thing that has been subject to a public hearing to date is the proposed ordinance text. He noted that this is the first of a year long series of ordinances that will come forward. Batty noted that some ordinances may be straightforward enough that they could be adopted and put into effect immediately. However, other ordinances may require suspension until the Comp Plan is approved. Batty advised that the action does not repeal the existing Uptown Hamel Ordinance. The idea is that this ordinance would be adopted but have no meaning until it is mapped in the future once the Comp Plan is finally approved. At that point, the existing Uptown Hamel ordinance will be repealed. Batty stated the Council could work with proposed Medina City Council Meeting Minutes July 1, 2008 271 maps until they find a ratio that works so staff knows what the Council supports when it is time to consider the mapping. Weir stated until the Comp Plan is approved and ordinances adopted to support it, the existing ordinance stands so the property can be developed under the current ordinance standards. Benetti stated that is correct. Benetti continued with the presentation by addressing the use of canopies, which will be encouraged to remain but required to be supported outside of the right-of-way. Canopies could still be an amenity and extend over the sidewalk, but must be attached to the building. Benetti advised that the drive-thru regulations will be redrafted to restrict distances and architectural designs will remain the same. He advised the Planning Commission requested explicit language to break up long fagades. The draft ordinance requires fagade modulation a minimum of once per 40 feet of frontage. He asked if Council supports that revision. The Council indicated support for that amendment. Benetti presented Low Impact Design practices and affordable housing incentives. He advised that buildings are generally limited to three stories but the Planning Commission was asked about allowing a four story structure if the building is LEED certified or if 10% of the residential units are dedicated as affordable units. The Planning Commission was concerned that allowing the fourth story for LEED certified buildings may be too easy to achieve and may hurt the chance that the incentive will result in affordable housing options. The Planning Commission recommended only allowing this incentive for affordable housing. Adams stated the broader issue of affordable housing will be further discussed by the Council at a future date. Weir stated she thinks many developers will go with LEED certification rather than affordable housing. She noted that it was discussed at the Planning Commission to reduce permit fees for LEED or affordable projects. Smith stated there are different categories within LEED and she supports some requirements for best management building requirements. Benetti stated the Planning Commission also discussed how parking may become a concern within the district and suggested fees in lieu of parking if a given development does not meet standard parking requirements. He stated this may result in disincentive and a fair amount of administrative work so staff did not add that language and asked the Council if they support fees in lieu of parking. Weir stated she finds this to be a disincentive. Benetti stated developers do not want to pay impact fees, depending on what the fee is. Batty stated he understands there will be a parking requirement and it can be met by supplying the number of spaces, which has a cost. Or fewer spaces could be provided but would contribute to some sort of common parking. He stated he is not sure whether Medina City Council Meeting Minutes July 1, 2008 272 that would be an impact fee or a disincentive. Batty noted the advantage in exploring the option is that it may result in shared parking that comes with mixed -use areas. Benetti presented Weir's suggestion requiring the first level of all public and private parking ramps be at least 50% under grade. He noted this would significantly increase the cost of construction. Weir asked who would build a parking ramp in this area and stated she believes the City would be the only one. Crosby stated in other communities the parking ramps are always at grade and up. Weir stated she was hoping to reduce the visual impact. Council consensus reached to not support requiring 50% of the first level of parking ramps to be below grade. Benetti explained the process to be taken and that consideration can be tabled tonight and staff can bring it back for review. He stated the current Uptown Hamel Ordinance remains in place. Weir stated the current ordinance allows development to move forward and while she supports one district, she does not want to discourage development. Smith stated if two districts are created she would like UH-2 made smaller with no requirement for residential, and to condense it around Sioux Drive and Hamel Road. Crosby pointed out that if Plymouth's Erickson 1,500 residential unit project, the Speak the Word Church, and the Holasek and Brockton Lane projects all go forward, this will be a great place for a restaurant and small "local" commercial hub. He cautioned that you have to be careful to retain the ability to be the commercial hub so someone else does not do it for Medina. He noted you have to be user friendly and if you put too many restrictions on the development, it will not happen in Uptown Hamel. He stated he thinks requiring residential should be an option, but not a requirement. Johnson noted there is also the opportunity to give incentives if residential is provided. He stated that a lot of restrictions are being talked about tonight (the "stick" approach) but another way to talk about it is to create incentives and give developers reasons to provide desired projects. Adams agreed and noted that incentives could be given related to providing affordable housing, or more affordable housing. Weir asked if language should be inserted stating strong preference for lot combination. Crosby advised that Wayzata has the opposite requirement because they believe small lots result in affordable housing. Weir stated it is a different situation in Wayzata where small lots are combined, the houses razed, and a large home constructed. Crosby stated he thinks small lots will work in Uptown Hamel, reviewing the earlier discussion about desiring small shops. Medina City Council Meeting Minutes July 1, 2008 273 Cavanaugh suggested market forces be allowed to drive this issue. Batty stated the stronger the housing incentive included, the more likely there will be requests to combine lots. Council consensus was reached to use six categories, retain both UH-1 and UH-2, create a proposed map to determine if density will be achieved, and to draft language so it is not perceived that Medina is over regulating but, rather, to also provide incentives. Weir offered amended language for Subdivision 9, relating to impervious cover. Crosby stated this is too much detail for consideration tonight and asked that such suggestions be submitted in writing to staff. Weir stated she will provide a list of her suggestions to staff so it can be circulated. Adams stated this item will be on the next Council agenda. 1. Resolution Authorizing Publication by Title and Summary This item will be on the next Council agenda. C. Road Special Assessment Policy Adams explained this is a follow-up to the 2008 budget discussions that took place last fall, noting Staff has outlined some discussion points for a possible street assessment policy, which would plan to be implemented in 2009. Another future discussion will be bonding for street projects. Council and staff discussed and identified roads that would be within each of the four classifications. Adams reviewed the four road classifications and type and road work to be assessed. Staff is recommending that mill and overlay, and reconstruction/rehabilitation projects be assessed. Staff does not recommend crack seal and seal coat projects to be assessed. Crack seal and seal coat projects would continue to be funded through general property taxes because they are more maintenance and it would be difficult to identify benefit. Adams stated there would be different rates established for existing land use/zoning. As an example, single-family residents assessed in the Uptown Hamel project were assessed at different rates dependent upon their zoning. Properties in the Uptown Hamel zoning district were assessed at a higher rate than those outside the district. Adams advised that staff has not determined the rate and will work toward establishing the rates in the policy. Crosby raised several scenarios using property location (including Medina Morningside), perceived benefit, and assessment. Scherer stated staff has not gotten to that level of detail but the assessment formula could be a combination of front footage and number of units or square footage. Adams noted that collector roads would generally be assessed at a lower rate than other local roads. Medina City Council Meeting Minutes July 1, 2008 274 Johnson stated there is no correlation of wear and tear on the road and front footage. Scherer stated a per parcel basis could also be considered. Crosby asked if enough money can be raised through assessments if based on a fairness issue. He stated .that while he usually does not, he is having a hard time dealing with this on a theoretical basis. He asked whether, after all of the arithmetic, at the end of the day, it is politically acceptable. Cavanaugh noted there is another side of political acceptability and that is placing these numbers into the budget. Scherer stated staff could put together numbers for a mill and overlay example. Crosby stated that would be very helpful to him. He explained he is not against this policy but would like more information. The Council reviewed and discussed the chart provided showing assessment policies from other cities. Staff was directed to prepare assessment examples for the Council's review. Crosby cautioned that if the assessment policy is not done in the right way, it will force development. Cavanaugh stated it is important for Medina to create a fair assessment policy because otherwise it will impact the City's budget. This way it goes back to usage, who is using the roads, which is fair. Adams stated the new development information is not new language and the assessment method will have to be explored again by staff and examples provided for Council's review. Adams stated the level of assessments is standard and assessment payment period would continue. It was agreed that this item will be tabled for several meetings to allow time for Staff to provide more examples for each of the four road classifications showing specific segments and assessment rates. D. Ordinance Regulating Open Burning Adams advised that Staff is recommending the repeal of the City's existing open burning ordinance and to replace the ordinance with the drafted version. He explained that due to the number of changes to the ordinance, Staff found it more practical to simply rewrite the ordinance without using the track changes (strikethrough, underline) method. Batty and Chief Belland worked together to make substantive changes to the ordinance includeing addition of prairie burning procedures, removal of diseased tree burning sites, and stronger administrative processing language, including penalty for revocation of a past burn permit. Adams stated Staff recommends approval. Smith asked why the City would not allow the burning of diseased trees. Batty explained the section taken out dealt with having a whole site dedicated to the burning of trees, which the City would not want. Medina City Council Meeting Minutes July 1, 2008 275 Crosby stated he could not find the use for the defined term "diseased tree." Batty stated it should be included in the ordinance. Crosby asked what happens if a land owner wants to burn diseased trees. Weir stated they will need to get a burning permit. Crosby stated that he has known people who have a 25 foot burn pile, with marshmallows on the side (to be a recreation fire), so they don't need to get a burning permit. Crosby stated this may also relate to fallen trees but he agrees a burning permit should be required. Adams stated that as the ordinance stands, diseased trees can be burned on a person's property with a burning permit. Smith stated there is also an issue with fallen trees so that should be addressed. Crosby noted Page 3, Subdivision 1, indicates burning permits may be issued and Subdivisions 2, 3 and 4 each deal with a special case. He stated the Fire Warden has the authority to issue burning permits. Smith stated she thought the Police Chief issued burning permits. Adams explained that adoption of this ordinance will result in the Police Chief being named the Fire Warden so he is able to issue burning permits. Crosby stated everything in the draft ordinance is consistent with the permit issued by Medina but includes some exemptions. Batty stated the proposed ordinance indicates if you had a permit revoked once, there will be a greater degree of scrutiny. Crosby asked that the permit be valid for 90 days (instead of 45 days). Discussion ensued regarding the appropriate term for burning permits. Cavanaugh suggested the Fire Warden be allowed discretion to approve longer permits terms and that the following language be used: "45 days or longer as determined by the Fire Warden." Adams advised the definitions "Commissioners and "Diseased Shade Tree" should be removed as they are no longer referenced in the ordinance. Moved by Weir, seconded by Johnson, to approve the ordinance including the removal of the "Commissioner" and "Diseased Shade Tree" definitions, revision of 90 days to 45 days for permit term, and formatting for the sections where Subd. 1 begin. Motion passed unanimously. 1. Resolution Authorizing Publication by Title and Summary Moved by Weir, seconded by Johnson, to approve the Resolution Authorizing Publication by Title and Summary. Motion passed unanimously. Medina City Council Meeting Minutes July 1, 2008 276 IX. CITY ADMINISTRATOR REPORT A. Logo Design Committee and Process Adams explained that Staff is recommending appointment of the following committee members for soliciting and reviewing a new City logo: Councilmember Carolyn Smith, Planning Commissioner Robin Reid, Park Commissioner Beth Nielsen, Staff member Jodi Wunsch, Business person Peggy Rasmussen, and At -Large resident Dan Bennis. Moved by Cavanaugh, seconded by Weir, to approve the appointment of the following committee members for soliciting and reviewing a new City logo: Councilmember. Carolyn Smith, Planning Commissioner Robin Reid, Park Commissioner Beth Nielsen, Staff member Jodi Wunsch, Business person Peggy Rasmussen, and At -Large resident Dan Bennis, as requested. Motion passed unanimously. B. Well No. 7 Pumping Facility Change Order This item was removed from the agenda. Adams reported on the Fire Board meeting held last Thursday and action items on which they will follow through. He explained they are looking at options including a merger between the two fire departments without City involvement, a merger with City involvement, and a hybrid option with City facility ownership but no service involvement. Johnson stated the discussions were extremely collaborative, challenges being faced were discussed, and it is agreed that a plan is needed to allow the fire departments to meet the needs of a rapidly growing community. He explained both departments acknowledge that need and that alone they don't have the financial resources so it makes sense to look at options, pros and cons of the options, and benefits that can be obtained. Johnson stated the discussion was cordial and all agreed the options need to be studied. He advised that issues remain regarding compensation structures and post - retirement benefits structures. X. MAYOR & CITY COUNCIL REPORTS Weir reported that the federal transportation bill didn't have enough money for the projects proposed so $142 million was taken away from Minnesota. Adams reported an attempt is now being made to have a corrections bill. He explained that with the 116/55 Highway project, the first round of funding was received but now there will be a lot of competition for the second round of funding. Smith stated while doing some web research, she found a city website that contained a link for "e-news" where people can sign up for a variety of items like agendas and minutes but also development updates, redevelopment, and city alerts. She stated this may be something Medina can consider. Adams stated that Minnetonka's website offers the same thing. Crosby stated the Summer Social event will take place at his house for City staff, consultants, Councilmembers, and Commissions on July 10, 5-8 p.m. He noted July 10 is also the first night of the Hamel Rodeo. Medina City Council Meeting Minutes July 1, 2008 277 Smith asked about the parade. Adams stated it was cancelled due to constraints with the Hamel Road project. Scherer stated the Hamel Road project is on schedule or maybe a bit ahead of schedule. XI. APPROVAL TO PAY THE BILLS Moved by Smith, seconded by Weir, to approve bills, EFT 000257-000263 for $27, 080.01 and order check numbers 032605-032647 for $388,309.25 and payroll check number 020184 for $1,241.80 and EFT 501335-501363 for $40, 837.16. Motion passed unanimously. XII. ADJOURN Moved by Weir, seconded by Smith, to adjourn the meeting at 10:16 p.m. Motion passed unanimously. T.M. Crosby, Jr. Mayor Attest: Chad M. Adams, City Administrator -Clerk Medina City Council Meeting Minutes July 1, 2008 278 This Page Intentionally Left Blank Medina City Council Meeting Minutes July 1, 2008 279 ORDER CHECKS June 13.2008 - June 26.2008 032605 OFFICE OF CHILD SUPPORT $92.31 032606 ALDEN POOL & MUNICIPAL $560.16 032607 AMERICAN SUPPLY GROUP $315.71 032608 AMERICAN TIRE $420.53 032609 AMERIPRIDE LINEN & APPAREL $103.00 032610 BONESTROO, ROSENE, $67,715.08 032611 CLASSIC CLEANING $692.26 032612 COMMERCIAL ASPHALT CO. $2,402.31 032613 DELL MARKETING L.P $887.90 032614 ERICKSON, ROLF ENT., INC $5,946.11 032615 FORTIN CONSULTING, INC. $711.25 032616 GEISLINGER AND SONS INC $249,246.68 032617 GRAND VIEW LODGE $200.00 032618 GREEN STUFF $824.31 032619 HAMEL ELECTRIC, INC. $205.60 032620 HAWKINS INC. $3,631.20 032621 HEALTHPARTNERS (NEW) $20,769.80 032622 HENN COUNTY SHERIFF (JAIL) $150.00 032623 HENN COUNTY TEASURER ( $504.00 032624 HONEST AUTO $367.51 032625 J & B LAWN, TREE & STUMP $3,775.00 032626 KENNEDY & GRAVEN $16,722.57 032627 KNIFE RIVER CORPORATION $1,292.62 032628 KONICA MINOLTA (COPIER $600.04 032629 LAKE BUSINESS SUPPLY $47.79 032630 LAWSON PRODUCTS, INC $66.40 032631 MEDIACOM $79.95 032632 MEDINA, CITY OF $1,443.83 032633 NAPA AUTO PART $40.40 032634 OFFICE DEPOT $163.46 032635 OLSEN COMPANIES $107.89 032636 ON SITE SANITATION $575.10 032637 QWEST $460.00 032638 SERVICEMASTER $25.00 032639 ST JOSEPH EQUIPMENT INC $336.06 032640 STREICHER'S $1,411.07 032641 SUN PRESS & NEWSPAPERS $92.78 032642 TIME SAVER OFF SITE SEC. $361.56 032643 TRUST TELECOMMUNICATIONS $125.00 032644 WESTSIDE EQUIPMENT $20.45 032645 WESTSIDE WHOLESALE TIRE $81.98 032646 WRIGHT HENNEPIN $2,479.00 032647 XCEL ENERGY $2.255.58 Total Order Checks $388,309.25 E-CHECKS June 13.2008 - June 26.2008 000257E MINNESOTA, STATE OF $131.00 000258E ACCLAIM BENEFITS- $2,510.27 000259E PR PERA $9,635.50 000260E PR FED/FICA $11,463.40 000261E PR MN Deferred Comp $925.00 000262E PR STATE OF MINNESOTA $2,394.84 000263E FARMERS STATE BANK OF $20.00 Total E-Checks $27,080.01 Medina City Council Meeting Minutes July 1, 2008 280 PAYROLL CHECKS June 13.2008 —June 26.2008 020184 REINKING, DEREK M $1.241.80 Total Payroll Checks $1,241.80 PAYROLL DIRECT DEPOSIT June 13.2008 - June 26.2008 501335 ADAMS, CHAD M. $2,585.41 501336 ANN, KIMBERLY $475.63 501337 BARNHART, ERIN $1,280.30 501338 BELLAND, EDGAR J. $2,451.13 501339 BENETTI, TIMOTHY $2,008.00 501340 BOECKER, KEVIN D. $2,435.56 501341 CONVERSE, KEITH A. $1,677.81 501342 DAY, JEANNE M $1,895.95 501343 DINGMANN, IVAN W $1,698.63 501344 DOMINO, CHARMANE $1,237.00 501345 DRESSEL, ROBERT P. $1,387.14 501346 FINKE, DUSTIN D $1,383.32 501347 GREGORY, THOMAS $1,786.45 501348 HALL, DAVID M. $1,854.88 501349 JESSEN, JEREMIAH S $1,087.78 501350 KLAERS GROTHE, ANNE M. $559.54 501351 LANE, LINDA $1,211.81 501352 LEUER, GREGORYJ. $1,435.59 501353 MAROHNIC, NICHOLAS $499.62 501354 MCGILL, CHRISTOPHER R. $1,698.36 501355 MCKINLEY, JOSHUA D $497.64 501356 NELSON, JASON $1,718.85 501357 PETERSON-DUFRESNE, $1,264.97 501358 PORTINEN, TERI $1,213.43 501359 REINKING, DEREK M $1.00 501360 SCHERER, STEVEN T. $1,808.31 501361 VIEAU, CECILIA M. $1,039.29 501362 VINCK, JOHN J. $1,472.95 501363 WUNSCH, JODI M $1,170.81 Total Payroll Direct Deposit $40,837.16 Medina City Council Meeting Minutes July 1, 2008