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1999-06-29MINUTES SPECIAL COUN¢IL MEETING- JUNE 29, 1999 MOUND CITY COUNCIL SPECIAL MEETING TUESDAY, JUNE 29,1999 The City Council of the City of Mound, I-Iennepin County, Minnesota, met in a special session on Tuesday, June 29, 1999, at 5:00 PM, in the Council Chambers at 5341 Maywood Road, in said City. Those present were Mayor Pat Meisel, Councitmembers: Andrea Ahrens, Bob Brown, Mark Hanus, Leah Weycker. Also in attendance were City Attorney John Dean, Acting City Manager Fran Clark, Assistant City Planncr Bruce Chamberlain, Assistant City Planncr Loren Gordon, Finance Director Gino Businano and City Engineer John Cameron. The Mayor opened the meeting at 5:06 p.m. and welcomed the people in attendance. The Pledge of Allegiance was recited. 1.0 PUBLIC HEARING: REGARDING DEPARTMENT OF TRADE AND MINNESOTA INVESTMENT FUND MOUND/ACT. INC. SUBMISSION ECONOMIC GRANT FOR OF MINNESOTA DEVELOPMENT. THE CITY OF Clark introduced Jodi Dalvey of ACT 11 to the City Council members and City Attorney Dean. Clark stated there were two items to look at, one was a resolution between the City of Mound to enter into the necessary agreements to implement the project for ACT 11, and authorizing the Mayor and Acting City Manager to execute these documents. The second item to consider, if approval of this resolution is granted, is an Operations Ppermit for ACT 11. This is a company out of Eau Claire, Wisconsin that deals with coated paper. Under private label, they coat paper as in labels and other paper requiring coating. The proposed operation in Mound would be cutting and packaging. There will be no coating in Mound except a small research lab. Anticipated traffic from this is three trucks a day. The required public hearing notices have been sent. Mayor Meisel opened the public hearing at 5:12 p,m. Jodi Dalvey represented ACT 11 of 2500 Shadywood Road and 3431 Hogar Street, Eau Claire, Wisconsin (corporate headquarters). She further described the business they would operate in Mound, Mayor Meisel asked if there was to be any selling from the Mound facility. Ms Dalvey indicated that she personally does 90% of the sales and would office three days a week in Mound. She also indicated that she would be on the.road one week out of five. The Mayor asked how the paper was sold, i.e., tonnage or to smaller quantifies. Ms Dalvey indicated that 85 % of their revenues were to companies that were $1 billion and larger such as Office Max. They package those companies' brands. 496 MINUTES SPECIAL COUNCIL MEETING- JUNE 29, 1999 Mayor Meisel asked how many anticipated employees would be housed in Mound. Approximately 50 employees would be at the Mound facility. They, have relocated two from · New York in senior positions. The other employees would be locally hired; Hanus asked if they used comniercial carriers to ship by or if they had their oWn fleet of trucks. Ms Dalvey indicated that for the most part contracts were used, however, they were looking at 1-2 trucks between Eau Claire and here. Hanus asked about storage of trailers on .the site. Some trucks may wait over night at the facility. At the most this would only be one truck at a time, however. Weycker asked if there would be nighttime deliveries. The operation of the business is eventually going to be three shifts, but deliveries would only be scheduled from 5 a.m. to 5 p.m. unless there was an emergency, Weycker asked what those shifts of operation would be. Right now, the operation has two shifts from 5 a.m. until 5 p.m. and 5 p.m. until 5 a.m. Eventually, the three shifts would be the typical from 7 a.m. until 3 p.m., 3 p.m. until I I p.m., and I I p.m. until 3 a.m. Brown thanked ACT 11 'for locating in Mound. The Mayor asked if there was a signed lease for the facilities they were locating into. Ms. Dalvey stated they had signed the lease prepared by United Properties and were waiting for United Properties to sign it. The Mayor closed the public hearing at 5:17 p.m. The City Attorney reviewed the resolution to be signed. This resolution would give Mound the legal authority to apply for financial assistance from the State of Minnesota Economic and Trade Department for funding of this project on behalf of ACT II, Inc. Hanus moved and Ahrens seconed the following resolution: RF_~OLUTION 99-57 RESOLUTION AUTHORIZING THE MAYOR AND ACTING CITY MANAGER TO EXECUTE SUCH AGREEMENTS THEREOF, AS ARE NECESSARY TO IMPLEMENT THE PROJECT(S) ON BEHALF OF THE APPLICANT (ACT 11). The vote was unanimously in favor. Motion carried. MOTION BY HANUS, SECONDED BY AHRENS, TO ISSUE AN OPERATIONS PERMIT FOR AMERICAN COATING TECHNOLOGIES, INC. (ACT H) AT 5330 SHORELINE DRIVE. MOTION CARRIED .%0. 497 MINUTES SPECIAL COUNCIL MEETING- JUNE 29, '1999 PROJECT- SOUTH SAUNDERS LAKE~ , Cameron introduced the proposed agreement between the City of Minnetrista and the City. of Mound. Dean reviewed the Agreement which was. the same as the Council previously had reviewed except for Section 5 that.outlines the connection fees for both sewer and water. The proposed hook up charge for sewer has not changed, Water is still potentially $1800/unit broken down to $680 initially (upon issuance of the building perm. it)'and, then if not COnverted to a Minnetrista served water system .by the end of three years would be $160/unit/year for the following seven years, WARA Development has a three to four year construction schedule that will eventually COntain 64 units. Sixty are shown on the enclosed packet map and the small piece of acreage in the Outlot is believed to be the site of the additional four units. This small piece of land is beyond the MUSA line. Cameron was asked about Metropolitan Council taking over the sewer line. Cameron does not see this happening since the Council has increased their criteria to hook up on the main line to 1800 units. Therefore, Mound will have to serve sewer for this project. The connection fee's purpose is for capital improvement. 'Me regularly billed user fees fund any operating and maintenance costs and is paid by Minnetrista. Ahrens asked for a more detailed breakdown of the costs. Businano indicated that right now it was broken down approximately 60% for Metropolitan Council's fees, 30% from maintenance and 10% for rsonnel cost. Cameron feels that the connection fee is fair at $500/unit. The sewer system will stay with Mound and not go to Mintrista if the City Council approves this resolution. He will be attending another meeting with Minnetrista on the Thursday coming up. He stated that Minnetrista has approved the compost site COntingent on approval of two permits, one from MNDOT and the second one from the Watershed District. He suggested, that if the Council was comfortable with the resolution, that they sign it COntingent upon the approval of these two pen-nits to keep the COmpost site fled to serving this development in Minnetrista. Ahrens asked Cameron if Minnetrista was planning their own water for a long period of time, Cameron stated that he was only aware of it recently. The Mayor stated that Minnetrista was looking at private, wells if necessary originally for this deVelopment. She doesn't feel good about holding the ,compost site contingency upon giving this development water and sewer COnnections. But she understands the need for Mound to have a COmpost site available. She feels it is a tough thing to tell the developer this, Hanus stated it was the right thing to do, however. Ahrens stated her feelings of a lack of sincerity on the part of Minnctrista regarding the COmpost site. She feels that Mound has been sincere regarding the water and sewer COnnections. T'he Mayor recognized this. rens stated that if Mound had their own land, they would open up this COmpost site, however, a large enough parcel is not available within Mound. 498 MINUTES SPECIAL COUNCIL MEETING - JUNE 29, 1999 Hanus stated that he felt he had two options. One w to vote with a contingency on the compost site opening for business and some guarantee of it staying in business or vote against the resolution. He doesn't care whom the guarantee is between. For exwnple, it could be between the City of Mound and the compost site owners or between the City of Mound and the City of Minnetrista. Mayor asked Hanus if he was looking at sonic ing like a "first option to buy" type lease. Hanus stated that it could be that Minnetrista would guarantee some landfor Mound to Operate a compost site if is one closed. ~ stated that the lease piece was fairly easy to do, If the operator or tenant were in default, we would receive notice to take over. The second option is not as likely (Mirmetrista giving Mound the opportunity to run the compost site if it defaulted) since it hasn't been done before and that it hasn't worked in the past and would require lots of negotiation. Hanus stated that now,' however, Mound had something that Minnetrista wanted and he felt it was the right time to offer that option. Dean stated that this certainly could be put into the resolution as an option. Ahrens stated that the company propos to operate the compost site is a "for profit" company. She is not sure she wanted to be in the position of taking over the lease and having to charge Mound residents a higher fee. She would rather get three acres to operate their own compost site elsewhere. Dean stated that another issue could be taking over any other contamination that might happen and the risks sociated with that when they were not regulating that. Brown stated that he feels Mound has been open and honest with Minnetrista and he feels that all he hears is a "give-me" attitude. The Mayor stated that he hasn't been around to hear is from Minnetrista, but rather heard it discuss from previous issues. However, she sated they do need the compost site and need to move forward with this issue and not keep debating it. Weycker stated that the reason Minnetnsta changed their mind about looking at their own system is that two additional developers have indicated an interest in developing near by lands, is would be additional 43 units, She also stated that Minnetrista is serving some Mound residents with their lift station with normal usage fees, no maintenance fees built in.. Ahrens stated that what is fair is fair. However, she is asking for a sincere attitude from Minnetrista. We will @ serving 65 homes valued at over one-half million dollars each. She personally has no problem with the contingency. Hanus stated that all he wanted to do is make sure there is protection of the compost site. Dean stated they could add a contingency making sure .the compost site was operational prior to hook up of water and sewer from Mound. MI~$ SPECIAL COUNCIL MEETING- JUNE 29, 1~9 There was some discussion over the map attached to this packer and what was included in the area Minnetrista expected to be served by Mound. Exhibit A to 'the resolution is unclear. Hanus asked that the number of units to be served be indicated also and the geographic area it encompasses. . Dean suggested the contingencies be that the compost site is opened for business and that in · the case of default, a compost site be available in Minnetrista for Mound residents and that Minnetrista take over the operations of the site or make land availablefor Mound and identify that land now prior to hookup 'of water and sewer. Hanus stated that the property to be served by Mound be identified as "South Saunders Lake and be limited to 64 uni ~ Dean also suggested that in Section 5, the amount of $160 per year be added. MOTION BY HANUS, SECONDED BY BROWN, TO ENTER INTO AN AGREEMENT TO PROVIDE WATER AND SEWER TO THE WARA DEVELOPMENT, SOUTH SAUNDERS LAKE, A MAXIMUM OF 64 UNITS, SUBJECT TO THE ABOVE CONDITIONS. MOTION CARRIED 5-0. Hanus stated that the Planning Conunission has referred'streamlining back to the City Council and asked for a joint meeting to discuss the issue. This will be on the July 13'h agenda. The Mayor indicated that she feels a joint meeting between the Planning Commission and the Council would be beneficial, however the July 13'h meeting is pretty full already. She su ested an alternative date. After discussion, July 27th at 6 p.m., was decided upon for ajoint meeting. The Planning Commission could attend the July 1.3 meeting if they wanted. The Purchase Agreement has been submi to the 'school district. The School District is considering two offers ahead of theirs reported Chamberlain. If they are unsuccessful in obtaining this property, the city should contact the successful bidders for an option on a piece of this property that is big enough for the proposed post office site. is would not be an ideal location, however. Chamberlain stated that they would only need a small portion (about 115 of the buildable land) of this site for the post office in response to questions asked. If they cannot obtain this, the alternative site of Lani,,don would need to be looked at again. Hanus is concerned over contacting another owner; he feels c price would be too high. Brown asked if the other bidders were aware that the City would not fund the purchase of this site with TIF dollars. Clark covered another FYI item that was given to the Council members from a previous executive session (except Weycker). The changes and agreement is to be made public tomorrow, she stated, · MINUTES spECIAL COUNCIL MEETING ~ JUNE 29, 1999 MOTION made by. Ahrens, s~c~ onded by Brown to adjourn' at 6:30 P.M. The vote was unanimously in. favor. Motion carried. Fran Clark, Acting City Manager Attest: Council Secretary 501