1999-06-29AGENDA
MOUND CITY COUNCIL
SPECIAL METING
TUESDAY, JUNE 29, AT 5:00 P.M.
MOUND CITY COUNCIL CHAMBERS
5:00 P.M. OPEN MEETING - PLEDGE OF ALLEGIANCE.
PUBLIC HEARING:
REGARDING SUBMISSION OF MINNESOTA
DEPARTMENT OF TRADE AND ECONOMIC
DEVELOPMENT, MINNESOTA INVESTMENT FUND
GRANT FOR THE CITY OF MOUND/ACT, INC.
®
RESOLUTION TO APPROVE AN OPERATIONS PERMIT FOR ACT II, INC., 5330
SHORELINE DRIVE.
e
WATER & SEWER AGREEMENT WITH MINNETRISTA - WARA PROJECT -
SOUTH SAUNDERS LAKE.
FYI:
A.
Update from Bruce Chamberlain on the Post Office.
June 29, 1999
RESOLUTION NO. 99-
RESOLUTION AUTHORIZING THE MAYOR AND
ACTING CITY MANAGER TO EXECUTE SUCH AGREEMENTS, AND
AMENDMENTS THERETO, AS ARE NECESSARY TO IMPLEMENT THE
PROJECT(S) ON BEHALF OF THE APPLICANT
BE IT RESOLVED, that the City of Mound (Applican0 act as the legal
sponsor for project contained in the Business and Community Development
Application to be submitted on June 29, 1999 and that the Mayor (Title of First
Authorized Official) and Acting City Manager (Title of Second Authorized Official)
are hereby authorized to apply to the Department of Trade and Economic
Development for funding of this project on behalf of City of Mound (Applicant).
BE IT FURTHER RESOLVED, that the City of Mound (Applicant) has the
legal authority to apply for financial assistance, and the institutional, managerial, and
financial capability to ensure adequate construction, operation, maintenance and
replacement of the proposed project for its design life.
BE IT FURTHER RESOLVED, that City of Mound (Applicant) has not
incurred any costs and has not entered into any written agreements to purchase
property.
BE IT FURTHER RESOLVED, that City of Mound (Applicant) has not
violated any Federal, State, or local laws pertaining to fraud, bribery, kickbacks,
collusion, conflict of interest or other unlawful or corrupt practice.
BE IT FURTHER RESOLVED, that upon approval of its application by the
State, the City of Mound, (Applicant) may enter into an agreement with the State of
Minnesota for the above-referenced project(s), and that City of Mound (Applicant)
certifies that it will comply with all applicable laws and regulations as stated in all
contract agreements and described on the Compliance Section (page 7) of the Business
and Community Development Application.
BE IT FURTHER RESOLVED, that the City of Mound (Applicant) has
obtained credit reports and credit information from ACT II, Inc. & ACT, Inc. (Name
of Company) and Nabil Nasser (Name of Owners). Upon review by the City of
Mound (Applican0 and City Attorney, John Dean (Applicant's Legal Counsel), no
adverse findings or concerns regarding, but not limited to, tax liens, judgements,
court actions, and filings with state, federal and other regulatory agencies were
identified, except as noted in the credit report which was reported to the State of
Minnesota.
June 29, ~999
NOW, THEREFORE BE IT RESOLVED, that Mayor (Title of First
Authorized Official) and Acting City Manager (Second Authorized Official), or their
successors in office, are hereby authorized to execute such agreements, and
amendments thereto, as are necessary to implement the project(s) on behalf of the
applicant.
The foregoing resolution was moved by Councilmember
and seconded by Councilmember
The following Councilmembers voted in the affirmative:
The following Councilmembers voted in the negative:
Mayor
Attest: City Clerk
2
PLANNING REPORT
Hoisington Koegler Group Inc.
TO: Mound City Council
FROM: Loren Gordon, AICP
DATE: June 29, 1999
SUBJECT: American Coating Technologies Operations Permit - Balboa Center
OWNER: Balboa Center Ltd. Partnership
LOCATION: 5330 Shoreline Drive
EXISTING ZONING: Planned Industrial Area (PIA)
COMPREHENSIVE PLAN: Industrial
BACKGROUND: American Coating Technologies (ACT) has submitted an operations permit
for space in the Balboa Business Center located at 5330 Shoreline Drive. ACT is a paper coating
company that develops and manufactures paper products with coatings for major paper
companies. The main office and research and development center in located in the Freshwater
Center in Navarre. Manufacturing plants are located in Eau Claire, Wisconsin, and at an overseas
facility is located in Germany. The cutting and packaging of the paper product at Balboa will
serve the Eau Claire plant.
The space in Balboa encompasses approximately 38,000 square feet, of which 8,000 square feet
is office, 16,000 square feet will be used for paper cutting, and 14,000 square feet will be used
for storage of paper product. ACT anticipates it will initially employ 40 - 50 persons, 25 on the
1st shift and 15 on the 2nd shift. A 3ra shift is a possibility if needed to meet customer demands. In
terms of shipping, ACT anticipates 3 deliveries and 3 shipments per day by semi-trailer.
Packaging of paper and plastics film is permitted in the PIA district as stated in Section 350:680
Subd. 6(A)(7), Standard Industrial Code 2671.
As of the writing of this report the Fire and Building Inspectors had not yet inspected the space.
Any fire and safety issues that are recommended need to be adhered to by the tenant.
DISCUSSION: The proposed company operations fit within the range of uses outlined for the
Planned Industrial Area District. The business should not pose problems with noise or fumes.
The cutting process is relatively quiet and the company has stated that there are no noxious
chemicals used. As with any industrial use in Balboa, there will be semi-trailer transfer of
products. The anticipated number of deliveries would not have a substantial impact on traffic.
123 North Third Street, Suite 100, Minneapolis, Minnesota 55401
(612) 338-0800 Fax (612) 338-6838
p. 2
American Coating Technologies Operations Permit
dune 29, 1999
Based on the information submitted, conversations with the company, and a tour of the building
space, Staff has no other concerns with the use at this time.
In evaluating the merits of a conditional use the Council may make the following findings in
rendering a decision. These conditions which may be considered include but are not limited to
the following:
1. That the conditional use will not be injurious to the use and enjoyment of other property in
the immediate vicinity for the purposes already permitted, nor substantially diminish and
impair property values within the immediate vicinity.
2. That the establishment of the conditional use will not impede the normal and orderly
development and improvement of surrounding vacant property for uses predominant in the
area.
3. That adequate utilities, access roads, drainage, and other necessary facilities have been or are
being provided.
4. That adequate measures have bee or will be taken to provide sufficient off-street parking and
loading space to serve the proposed use.
5. That adequate measures have bee or will be taken to prevent or control offensive odor, fumes,
dust, noise and vibration, so that non of these will constitute a nuisance, and to control
lighted signs and other lights in such a manner that no disturbance to neighboring properties
will result.
6. The use, in the opinion of the City Council, is reasonably related to the overall needs of the
City and to the existing land use.
7. The use is consistent with the purposes of the zoning code and the purposes of the zoning
district in which the applicant intends to locate the proposed use.
8. The use is not in conflict with the policies plan of the City.
9. The use will not cause traffic hazards or congestion.
10. Existing adjacent uses will not be adversely affected because of curtailment of customer trade
brought about by intrusion of noise, glare or general unsightliness.
RECOMMENDATION: Staff recommends the Council approve the operations permit for
American Coating Technologies as requested with the following condition:
1. The Fire and Building Inspectors recommendation for compliance to any fire and safety code
issues be adhered to by American Coating Technologies.
123 North Third Street, Suite 100, Minneapolis, Minnesota 55401
(612) 338-0800 Fax (612) 338-6838
City Council Date:
,,.,,.,, JUN 1 0 1999
. OPERATIONS PERMIT APPLICATION ~ V~
CITY OF MOUND, 5341 MAYWOOD ROAD, MOUND, MN 5536~ITY~
OF
MOUND
Phone: 472-0600, FAX: 472-0620
~~ ~ql ~ Operations ~ermit Fee: ~250.00
Distribution:
City Planner:
Other:
Building Official
Uses by Operations Permit: Within any Planned Industrial Area, no structure or land shall be used
for the uses listed within the Zoning Ordinance, Section 350:680, Subd. 6. (attached), except
by operations permit. Criteria for granting operation permits is the same as listed in Zoning
Ordinance Section 350:525, Subd. 1, A - L (attached).
All operations permits must be approved by the City Council. Applications must be received two
weeks prior to the City Council meeting to allow time for staff review. The City Council meets
on the second and fourth Tuesday of each month. The City Council meetings are held at City
Hall in the Council Chambers, and commence at 7:30 p.m. The applicant or a representative is
encouraged to be present at the meeting.
Section I - Application Information
1. Street Address of Property:
2. Legal Description of Property: Lot Block ~E~ c~~~_,.
Addition
Address:
PID
3. Phone
Applicant (if other than owner):
Name j~,~.~c.~,, Q~-T~.~.~,~.~¥ "~.~. Phone
Address
Section 2 - Business Information
o
Name of Business
Total Floor Area
Manufacturing Area
Sales Floor Area
Describe,~cx[~j¢ Nature~.~ ~.r~.-°f Business C~.c~t.~ ¢~ ~z~ ~._~ .
Wholesale xvt. Retail
.% <~, ~ ~:~.1~..~. Office Area
~o,C~::~ ~'~.~r Warehouse Area ~,CY::~ ~,ci' ~'.
Other (please specify}
Operations
Rev. 11-16-98
Location (cite unit number or attach floor plan)
Number of Employees: 1st shift
3rd shift
~Z S 2nd shift t 5
6. Adjacent Uses (list businesses)
Section 3 - Business Operations
Describe Products produced or services offered (attach product brochures if
available)
What types of materials will be shipped into and/or stored within the premises ?
Will materials be shipped by: rail
Other (specify)
Semi truck
Will delivery vehicles be stored on the property? Yes
No,/'
Does the business plan future expansions at this location? Yes
No If yes, describe amount of anticipated expansion and
timing. ~-
Will the business require any modifications to the exterior of the existing building
including but not limited to doors, windows, overhead doors, cooling towers, HVAC
units, etc? Yes ~' No
If yes, please describe and attach a floor plan and exterior building elevation
drawings.
Will the proposed operation involve: Noise Generation: Yes __
If yes, describe source and amount
No ~,
Odor Generation: Yes
No v/ . If yes, describe source and amount_
Toxic and/or Hazardous Waste Generation: Yes
If yes, describe source and amount
Operations
Rev. 11-16-98
Provide a detailed listing of all chemicals which will be discharged into the sanitary
sewer system.
Will the operations include either interior or exterior storage of bulk chemicals? Yes
~ No ?/._ If yes, attach floor plan and/or site plan showing location and
describe spill/leakage containment provisions. __
Other than chemicals, will the operation require outdoor storage of any materials?
Yes ~ No __ If yes, describe materials and attach site plan showing
locations and identifying proposed screening by type and location.
Section 4 - Certification
I certify that all of the above statements and the statements contained in any required
papers and plans to be submitted herewith are true and accurate. I consent to the entry
in or upon the premises described in this application by any authorized official of the City
of Mound for the purpose of inspecting, or of posting, maintaining and removing such
notices as may be required by law.
Signature of Applicant ~ Date
Section 5 - City Review and Action
Reviewed by: Building Official
City Engineer
City Manager
Fire Chief
Other
City Planner
RESOLUTION//99-
RESOLUTION TO APPROVE AN OPERATIONS
PERMIT TO ALLOW WAREHOUSE AND OFFICE
SPACE FOR AMERICAN COATING
TECHNOLOGIES LOCATED AT 5330 SHORELINE
DRIVE (BALBOA BUILDING)
WHEREAS, American Coating Technologies is a company involved in paper coating.
The company is expanding its operations and needs space to cut and package paper
products, and;
WHEREAS, the American Coating Technologies plans to lease 38,000 square feet
initially in the Balboa Business Center to accommodate these operations. Within this
space 8,000 square feet will be used for office, 16,000 square feet will be used for cutting
paper rolls, and 14,000 square feet will be used for storage paper product, and;
WHEREAS, the company will employ approximately 40 persons in 2 shifts with the
possibility of a 3rd shift in the future, and;
WHEREAS, American Coating Technologies anticipates three deliveries and three
shipments per day during normal business hours by semi-trailer and smaller delivery
trucks, and;
WHEREAS, packaging of paper and plastics film is permitted in the PIA district as
stated in Section 350:680 Subd. 6(A)(7), Standard Industrial Code 2671, and;
WHEREAS, adequate parking is available for employee use within the property and;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mound,
Minnesota, to approve an Operations Permit for American Coating Technologies for
occupancy of approximately 38,000 square feet within the Balboa Building, providing
that the nature of the business and products stored on the premises remains essentially
unchanged. Approval is conditioned on compliance with all building and fire codes.
EXHIBIT A
LEGAL DESCRIPTION
Lots 19 to 21 inclusive Block 11, "Abraham Lincoln Addition to Lakeside Park, Mound, Minnetonka."
That part of Lots 22 and 23, Block 11, lying south of a line drawn from the most westerly comer of Block 9 to the point of intersection of the
southeasterly line of Block 11 with a line drawn parallel to and 40 feet northerly measured at dght angles, from the southerly line of Block 11 and its
extension, allin "Abraham Lincoln Addition to Lakeside Park, Mound, Minnetonka."
Lots 1 to 5 inclusive, B, Iock 11, "Abraha, m L,!ncoln.Addition to Lakeside Park, Mound Minnetonka" according to the duly recorded plat thereof. The
northerly, westerly ana southerly boun(3ary lines oT said Lot 1, the northerly and southerly boundary lines of said Lots 2, 3 and 4, and the northerly,
easterly and southerly boundary lines of said Lot 5 are marked by judicial landmarks set at the northwest and southwest comers of said Lot 1, at the
southeast corner of said Lot 5 and at a point on the Easterly line of said Lot 5 distant 4 feet Southeasterly from the northeast corner of said Lot .5,
pursuant to Torrens Case No. 15803
Lots 23 to 28 inclusive, "Koehler's Addition to Mound", Lake Minnetonka aocording to the recorded plat thereof. The north, east and southerly
boundary lines of said Lot 23, the north and south boundary lines of said Lots 24, 25, 26 and 27, the north west and southerly boundary lines of
said Lot 28 are marked by judicial landmarks s~t at the northwest and southwest corners of said Lot 28 at the northeast and southeast comers of
said Lot 23, pursuant to Torrens Case No. 15804.
Lots 6 to 12 inclusive, Block 11 "Abraham Lincoln Addition to Lakeside Park, Mound, Minnetonka", according to the duly recorded plat thereof.
Lots 13 to 18 inclusive, Block 11, "Abraham Uncoln Addition to Lakeside Park, Mound Minnetonka", according to the duly recorded plat thereof.
The easterly line of Lot 18, Block 11, sa d subdivision is marked b y judicial landmarks set pursuant to Torrens Case No. 15803.
The part of Lot 36, Auditor's SubdMsion No. 170, Hennepin County, Minnesota, and that part of the southwest % of the southwest % of Section 13,
Township 117, Range 24, all described as beginning at a point onthe north line of said Lot 36, distant 25 feet west from the northeast comer
thereof, which point ~s marked by a judicial landmark set pursuant to Torrens Case No. 15078; thence east to the northeast comer of said Lot 36,
which point is ma.rked by judicia/landmark set pursuant to Torrens Case No. 16002; thence south along the east line of said Lot 36 and its
extension to an intersection with a line drawn parallel to and 33 feet southerly from the southerly line of said Lot 36; therme westerly along the last
descdhed parallel line 34.15 feet to a. point _rr.~. rked by a judicial landmark setpursuant to Torrens Case No. 15078 thence continuing north along
said last described line 121.9 feet to [ne poin[ of beginning.
That part of Lot 8, Block .5, S~van Heig. hts' Addition to Mound-Minn,e. tdsta Towns, hip, Hennepin County, Minnesota, described as follows: beginning
at the north.west corner or sa~d Lot 8, which point i,s marked by a. juoicial landmark set pursuant to Torrens Case No. 16002, thence ease along the
,north line o~ said Lot 8, 35~.35 feet. to a I~?int whicn is 134.4 fee[ westedy from the northeast comer of said Lot 8, which point is marked by a judicial
~andmarK set pursuant to/orrens ~ase r~o. 15805; thence south paralle/to the east line of said Lot 8 287.3 feet to the south line of said Lot 8,
which point is marked by a judicial landmark set pursuant to Torrens Case No. 15805, thence westerly and northwesterly along the south line of said
Lot 8, 207.77 feet to a point which is marked by a judicial landmark set pursuant to Torrens Case No. 16002 thence continuing northwesterly along
said south line 162.58 ~,eet to a point which is marke~l, by a judicial landmark set pursuant to Torrens Case No. 16002; thence continuing
northwesterly along saia south hne to the west line or said Lot 8; thence northerly along the west line of said Lot 8 to a point which is 40.14 feet south
of the northwest corner of said Lot 8, which point is marked by a judicial landmark set pursuant to Torrens Case No. 16002; thence according to the
recorded plat thereof.
That part of the southwest './. of the southwest '/., Section 13, Township 117, Range 24 described as beginning at the northeast comer of Lot 36,
Auditor's Subdivision No. 170. Hennepin County, Minnesota, said point being marked by a judicial landmark set pursuant to Torrens Case No.
16002; thence westerly, along the north line of said Lot 36 a distance of 25 feet to a point marked by a judicial landmark set pursuant to Torrens
Case No. 1507~; thence north parallel with the east line of said southwest % of the southwest %, to the point of intersection with a line 40 feet
northerly of measured at a right angle to and parallel with the northerly line of said Lot 36 said point of intersection being marked by a judicial
landmark set pursuant to Torrens Case No. 17105 thence easterly, along the last described parallel line a distance of 25 feet to the point of
intersection with the east line of said southwest '/. of the southwest I/., said point of intersection being marked by a judicial landmark set pursuant to
Torrens Case No. 16002; thence south, along said east line, to the point of beginning, according to the Government Survey thereof.
Lots 10 to 14 inclusive, and that part of Lot 15, lying north of the south 8 feet thereof, all in Block 2, L.P. Crevier's Subdivision of part of Lot 36
Lafayette Park.
Lots 1 to 11 inclusive, Block 5;
Lots 1 to 7 inclusive, and that part of Lot 8 lying eastedy of a line drawn south, parallel to the east line of Lot 8, from a point on the northerly line
thereof distant 1 34.4 feet westerly from the northeast comer of Lot 8, Block 6;
All of Yost Street, vacated, lying between the extension across said street of the northerly lines of Lots 1 to 6 inclusive, Block 6, and a line drawn
from the southwest comer of Lot 1, Block 6, to the southeast corner of Lot 11, Block 5;
All in Sylvan Heights Addition to Mound-Minnetrista Township, Hennepin County, Minnesota, according to the recorded plat thereof.
The boundary lines of the above tract have been judicially determined and marked by judicial landmarks as shown by Torrens Case No. 15805.
Lot 1, Block 1 and Lot 1, Block 2, Balboa Addition, Hennepin County, Minnesota.
FROM : A['IER I CAN COAT ! HG TECP~ IOLOGY PHOI~E I~13.
: ?iS 859
10 i999 OS:5?AH P2
r
Jun. 28, 1999 i:10PM MCCOMB$ FRANK RO0$
-- No. 06§2--P, 2/4'
Eng~eering · Plann~g · Survey~g
' FRA
MEMORANDUM
DATE: June 28, 1999
TO:
Mound City Council
FROM:
John Cameron, City Engineer
SUBJECT:
Minnetrista./Mound Sewer and Water Agreement
South Saunters L~ke
MFKA #12149
As requested, we have reviewed the amount of the proposed connection fees based on differem
circumstances. The City of Minnetrista is considering having their own municipal water system in
place for this area within three years. This would reduce the longer term burden on the City of
Mound's water system, thus the mount of the connection fee could be reduced.
We are recommending T. hat the water connection fee could be reduced from $1 g00/unit to $680/nnit
based on the three year time line for Minnetrista to have their own water system operational. We
would further suggest that a schedule be included in the agreement which sets yearly payments of
$160 per year from the year 2003 through the year 2009 in case Minnetrista does not install their own
water system and this development continues to be served by Mound.
We also investigated the possibility of transferring to Metro the section of Mound sanitary sewer
which serves both cities. The criteria for a Metro interceptor was obtained from Metropolitan Council
Environmental Services 0VICES), a copy of which is enclosed. Using the design flows for new units,
this criteria would require over 1,S00 units before MCES would recognize this main as an interceptor
and assume ownership. Therefore it appears that Mound will be responsible for maintaining this
jointly used line for some time to come.
Further investigation of the amount to be charged as a connection fee for the sanitary, sewer indicates
it could be reduced from the $I000.00 figure previously discussed. Since Minnetrista, the developer
and ultimately the home owner ~511 be paying all the MCES charges, the City of Mound will need to
75050 23rd Avenue North , Plymouth, Mint~e$ota · 55447
phone 612/476.6010 · fax 612/476-8532
e-mail: mfra@mfra.com
Jun, 28, l§g9 l: 10PM
· Mound City Council
June 28, 1999
Page 2
MCCOMB$ FRANK ROOS No, 0692Ip, 3/4'
fund only the maintenance and eventually the replacement costs oft. his line. The user rates as
suggested are set to cover the maintenance expenses, which leaves the cost of future replacement to
be funded in part by this connection fee. We are suggesting this fee could be reduced at least
$500.00/unit from the $1000.00 originally suggested without jeopardizing the operation of Mound's
sanitary sewer system. If 64 homes are constructed as planned and charged a connection fee of
$500.00/unit, the City of Mound would realize a financial return of $32,000.00.
We must also keep in mind, that presently 23 homes and 11 mobile home units from Mound flow to
the Minnetrista lift station on Halsted Avenue and nothing is paid towards maintenance or capital
improvements of the list station. Granted, Mound's forcemain and gravity sewer do take the ilow
from this lift station, but the operating cost of a lift station is much higher then underground mains.
This lift station presently accommodates 46 Minnetrista homes and a new plat already approved
containing 25 lots, 5 of which are under construction. This situation will need to be addressed before
the new plat of the existing mobile home site is granted Final approval by either City.
If you have any questions or need additional information, please contact me.
c:'~nain:\l 2 lag:~n~mo6.2$
"i
1. Be clds/g~d to rece/ve, an average ~,~ly flow ofa~ least 500,000 gallons ~ ,t,¥ fzom or sen,¢ it :leas[ 1.o00
clevelopal~le amis in ~ 8ove=nmet~ other thau the oz~ in which it is pzimarily located; or ', J
l. ls loc~ecl.in one locnl Sovernmenz unit and conveys or is designed to convey at 1~ 90 percent[ ~{ the
wastc~at~r flow orig;irmting tn an upstr~r, local government; or
!
~. Is neede.~ito c]Lw.~y.com'=~ or. her ~d.lities ownecl or ~o be constructed bythe MetropoLitan Council.' ~
S,=~e inte:Cel:kors ~n Iongcr have a regior~aI role. See the sec:ion "P, econv~ring l=emeptm's [mm th.4 Council
Local Go~-nm¢~' un~le~ "Was~w~m Scrvict.' Under the criteria outlined in tl~t secuon, the follo~ng interc~p-
tn~s shouki no longer be a part of th= metmpoliun wastewater system and should be reconveyed to .~he appmp~ate
· The lower. G~e ~il~ o~ ch~ Prior'Lz~ inte:rctpw~, ' J
'I
· The reach'of the Rosmnounc immcepwr l:~tw~:n t/~ tzis:~ng Rosemoum t~menz pl~nc and a ziew lift s~ation
·
·
·
·
·
Th= WONE inm=pwr 1 WO 501 to :he sout. tm'n 0~1~1~ bc~nch~,
~ Shako'pet interceptor MSB 7023 and 7024,
Bloomtn~bn tnr. erceptor 3-BN-49g;
WATER AND SEWER AGREEMENT
BETVVEFaN THE CITIES OF MINNETRISTA AND MOUND
This agreement made and entered into this ~ day of May, 1999, by and between the City of
minnetrista, a municipal corporation organized under the laws of the State of Minnesota herein
referred to as "Minnetrista", and the City of Mound, a municipal corporation organized under the
laws of the State of Minnesota, herein referred to as "Mound".
Both Mound and Minnetrista operate municipal sanitary sewer water systems serving their respective
communities. The Metropolitan Council, Environmental Services Division provides for treatment and
disposal of sewage collected in both communities. Based on the Comprehensive Plan of both
communities it is economically advantageous for a portion of the land area within Minnetrista to have
water and sewer service provided through the Mound utility systems. The purpose of this Agreement
is to provide terms and conditions for this joint usage. The communities pursuant to Minnesota
Statutes 471.59 have authority to enter into a joint powers agreement for utility services.
NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter contained,
it is agreed by and between the parties as follows:
Section 1. Affected Area - Mound agrees to allow Minnestrista to connect at its option to the Mound
water and sanitary sewer mains to serve the land area within Minnestrista identified in Exhibit A.
Section 2. Connection Costs - All construction costs associated with connecting to Mound sanitary
sewer and water mains shall be borne by Minnestrista or their Developer.
Section 3. Plan Approval and Construction Standards - Minnetrista shall submit to Mound detailed
plans and specifications for the connections to Mound's water and sanitary sewer lines. All
construction associated with the connections shall be in accordance with the City of Mound's
standards. Both the plans and construction must be approved by engineers for both cities. Minnetrista
agrees to provide Mound with record plans of all connections made to Mound's water and sewer
mains.
Section 4, Ownership of Sewer and Water System - Upon completion and final acceptance of the
water and sewer system, ownership of all mains located within the Mound corporate boundary will
transfer to the City of Mound. All mains and appurtenances located within the corporate boundary of
Minnetrista shall be owned by the City of Minnetrista.
Section 5. Connection Fees - The City of Minnetrista agrees to pay the City of Mound a connection
fee per unit as follows:
Sanitary Sewer
Watermain
$ 500.00/residential unit
$1,800.00/residential unit
The sanitary sewer fee shall be paid to Mound at the time the service is connected to each unit. $680
of the per unit watermain fee shall be paid at the time the service is connected to each unit. The
balance of the watermain fee applies only to units which remain connected on or after January 5,
2003, and shall be paid beginning on that date and on each January 5, thereafter until the service is
disconnected or until the January 5, 2009 payment, whichever comes first.
Section 6. Area Changes - Minnetrista will charge the developer area charges for the installation of
the mains and keep for repairs and replacement of the main in the development.
Section 7. Rates and Billing - Minnetrista agrees to bill the property owners connected to its sanitary
sewer and water systems served by the City of Mound and include a monthly surcharge sufficient to
reimburse the city of Mound for providing water and sewer service. Said surcharge shall be
computed as follows:
Sanitary Sewer: amount equal to 30 percent of what a Mound customer would pay based on
the
billing rates as set by Mound ordinance.
the
Water: amount equal to 80 percent of what a Mound customer would pay based on
billing rates as set by Mound ordinance.
The City of Mmetrista shall be responsible for remitting the amount of said surcharge to the City of
Mound quarterly along with documentation in a format as agreed upon by the two cities. The City of
Minnetrista shall be responsible for payment of Metropolitan Council, Environmental Services
Wastewater Service and Minnesota Department of Health charges.
Section 8. Permits - Minnetrista agrees to obtain the necessary Metropolitan Council, Environmental
Services, Minnesota Pollution Control Agency, Minnesota Department of Health or other State or
Regional permits required prior to completing the utility connections. Permits for construction
(e.g. building, plumbing) would be obtained from Minnetrista.
Section 9. Infrastructure Capital - Initial construction of water infrastructure requirements would be
paid for by the developer. Future replacement of the infrastructure will be the sole responsibility of
Minnetrista.
Section 10. Usage - The average daily water usage will be no more than 300 gallons per day per
unit for thc areas identified in Exhibit A.
Section 11. Maintenance - The City of Minnetrista shall be responsible for routine inspection and
maintenance of the sewer and water system located within their corporate boundaries, including semi-
annual flushing of water hydrants. Hydrant use for purposes other then flushing or fire fighting shall
be subject to the same rules and regulations applied by the City of Mound.
Section 12. Water Meters - Water meters shall be provided by the City of Minnetrista.
Section 13. Interruptions to Water Supply - The City of Mound shall not be liable for any lack of
water supply to Minnetrista customers, in the event of repair of watermains or connection of new
watermains or in the event of fire prevention, or any other cause, and such water supply may be
interrupted for as long as is necessary to complete the necessary work. Mound practices and policies
shall govern in operation of the system.
Section 14. Future Service - If the City of Minnetrista constructs a utility system in the future that
could serve this area, Minnetrista residents served by Mound would become Minnetrista customers;
and thereupon the parties will be relieved of any further obligations under this agreement.
Section 15. Notices - Any notice or other communication into this Agreement by either party to the
other shall be sufficiently given or delivered after it is dispatched by first class mail, postage prepaid
or delivered personally to:
City of Minnetrista, City Hall, 7701 County Road l l0W, Minnetrista, MN 55364
City of Mound, City Hall, 5341 Maywood Road, Mound, MN 55364
Section 16. Binding Effect - This Agreement shall bind on the assessors and assign of the parties
hereto.
Section 17. Indemnification - Each City agrees to indemnify, defend and hold harmless the other for
any claim, action or liability due to its own negligence concerning any matter arising out of or
relating to this contract.
IN WITNESS TI-1ERE WHEREOF the parties hereto have mused these presence to be executed the
day and year first above written:
CITY OF MINNETRISTA
CITY OF MOUND
City Administrator
Acting City Manager
Mayor Mayor
Revised 6-29-99
Jun-29-99 13:41 P.02
RECEIVED
Hoisington Koeglcr Group Inc.
ti'lin
June 28,1999
Fran Clark, Acting City Manager
City of Mound
5341 Maywood Road
Mound, MN 55463
Dear Fran;
As you know, the Westoflk'a School District is considering offers on the community center site
including the City's offer. I am writing this letter and copying a number of people vested in the
issue to ensure that them are no misunderstandings regarding post office development as it relates
to the community center site.
Let me first recap the issue. The City's intent up until a couple of months ago was to pursue
relocation of the post office to the Langdon District in downtown Mound. The City had reached
agreement with the Postal Service on a preliminary site plan with the next stage for the City being
property acquisition. When a preliminary development a~eement was made in May with Beard
Group for redevelopment of the Langdon District, Bill Beard expressed his desire to find an
acceptable alternative site for the post office if possible because of conflicts between postal traffic
and housing he intends to develop on the site. Since that time, the City has refocused its post
office relocation pursuits to the community center site at the comer of County Roads 15 and 110
in the heart of downtown. This option meshed well with the School District's desire to sell the
site. The City recently submitted a bonafide offer for the site with one of the reasons for making
that offer being to work with the Postal Service to parcel off a piece of the site for a new post
office.
In a phone conversation today with Ginny MacCharles, the District's broker, I tried to clear up a
misunderstanding. She was under the Lmpression that since the City wants the post office on the
site, whomever gains control of the site will automatically be the developer and owner of the post
office, The City would very much like this to be the case but based on what has been outlined to
us by the Postal Service, it is not possible as long as the City wants to control where the new post
office is located. The City must have ownership control of the land before a new post office can
be placed on it. These are the simplified development steps, as I understand them:
1. City gains control of a future post office site (mutually agreed upon by the City and
Postal Service) either through acquisition or option to purchase. The City has to
control the site - a private developer cannot according to Postal Service bidding
policy.
2. City assigns a purchase option on the land to the Postal Service.
3. Postal Service prepares plans and specifications for site development.
4. Postal Service accepts bids from builders/developors for construction and ownership
of the new post office. Bids include site acquisition, turn key construction and lease
terrr~.
5. Postal Service selects the most favorable bid and assigns the ladd option it has with
the City over to the selected developer.
6. Land is sold to the selected developer aad they build a new post office.
123 North Third Street, Suite 100, Mittucapolis, MN $$401-1659
Ph (612) 335-0800 P'X {61~2) 338-6S~8
9~:80 6a N~£ EOd OSP aB]~BO~ NO±BNISIOW
Fran Clark, City of Mound
lune 28, 1999
Page 2
As you can see by this process, there is by no means a guarantee that the developer who buys the
community center site from the School District will be the developer and eventual owner of the
post office,
I have gotten the impression that there may be an expectation by the currem bidders for the
community center site that ff they get the site they will also get to develop a new post office. This
will not be the case. The City fully intends to work with the Postal Service toward finding a site
for the new post office. As long as this arrangement is in place to the mutual benefit to the Postal
Service and City, (unless the Postal Service is willing to relax it~ bidding policies for developer
selection) the City must control the land on which the post offic~ is to be placed.
Should the City's bid for the community center site not be successful, the City will work
diligently with the new owner to very quickly carve out a parcel of land on the sim on which the
post office can be placed and prepare a purchase agreement for that parcel. If tl~ new owner is
unwilling to work with the City to this end, the City will explore other options, which may
include eonderrmation or once again pursuing the previously discussed site. Time is of the
essence so the City cannot wait long before it pursues action.
I hope this clears up any misunderstandings and I'm sure the School District will make sure that
bidders on the property are not under any false expectations. If you have questions, please feel
free to call me.
Sincerely,
Bruce L. Chamberlain, PLA
Vice President
Mound Visions Coordinator
cc:
John Dean, Mound City Attorney
Bud Storm, Acquisition Specialist
Ginny Ma¢Charles, RE/MAX
Bill Beard, Beard Group
Ruthann Cobum, U.S. Postal Service
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