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06-23-2003 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT LIONS PARK CENTER MONDAY, JUNE 23, 2003 Members Present: Members Absent: Staff Present: Mayor Klinzing, Councilmembers Dietz, Kuester, Mot.in, and Tveite None City Administrator Pat Klaers,City Engineer Terry Maurer, Police Chief Jeff Beahen, City Attorney Peter Beck, Director of Economic Development Catherine Mehelich, and Recording SecretaryJessica Miller Call Meeting To Order Pursuant to due call and nodce thereof, the meeting of the Elk River City Council was called to order at 6:35 p.m. by Mayor Klinzing. Consider 6/23/2003 Agenda COUNCILMEMBER TVEITE MOVED TO APPROVE THE AGENDA. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Consider Consent Agenda Councilmember Tveite questioned why the change order for the signage is so much. City Administrator Pat Klaers stated that the original sign was been changed per Bryan Adams request to read "Elk River Municipal Utilities" and this increased the cost of the sign. Mr. I~daers stated that Mr. Adams is aware of the cost of the additional wording. COUNCILMEMBER KUESTER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 6/16/2003 CITY COUNCIL MINUTES (POSTPONED UNTIL JULY 14) CHECK REGISTER CONSIDER PUBLIC SAFETY FACILITY AND CITY HALL/UTILITIES CHANGE ORDERS PAY ESTIMATES REQUEST TO PURCHASE THE FINAL 2003 SQUAD CAR AUTHORIZATION TO HIRE REPLACEMENT FOR OFFICER ELLINGWORTH CONSIDER TRANSIENT MERCHANT LICENSES FOR MPMD PROMOTIONS COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. City Council M. inutes June 23, 2003 4. HRA Downtown Revitalization Project Page 2 Director of Economic Development Catherine Mehelich stated that the Housing and Redevelopment Authority has been working with MetroPlains for the past six months to redefine the downtown redevelopment plan. Ms. Mehelich stated that as directed by the HRA, MetroPlains held an open house for the public to view the proposed downtown designs. Ms. Mehelich stated that at this time, MetroPlains is seeking Council input and will seek formal approval at a later date. Vern Hanson of MetroPlains, Michele Mongeon of JLG Architects, and Jim Prosser of Ehlers & Associates provided the City Council with a presentation which included an overview of the City's project goals, a presentation of redevelopment concepts, and an overview of the financial and market feasibility issues regarding the project. Councilmember Dietz questioned if MetroPlains has held discussions with the property owners that will be affected by the redevelopment and whether they have an agreement on sale and price. Mr. Hanson stated that they have had discussions with property owners but that purchase agreements are contingent on a development agreement with the HRA. Councilmember Tveite asked how the cridcal mass of businesses would be preserved during the two years of construction. Mr. Hanson stated that there would be ample displacement parking and access to businesses would remain open during construction. Catherine Mehelich stated that staff received comment forms back from residents and business owners and the major concerns seem to be parking and the use of the Jackson block. Ms. Mehelich stated that staff will be reporting on the results of the comment forms to the HRA Monday, June 30 at their special meeting. Mayor Fdinzing stated that she likes the plan, has heard support for the plan from downtown business owners, and that the project is needed to keep Elk River competitive with neighboring communities. City Administrator Pat Klaers indicated that MetroPlains will be applying for a once a year grant from the MN Housing Finance Agency. Mr. I~aers stated that the grant must be submitted by July 24, 2003 and MetroPlains will come before the Council on July 14 with a memorandum of understanding that the city is committed to the development of Jackson Square and the downtown and is willing to form a partnership with MetroPlams. Vern Hanson indicated that the local banks will be asked to display the model of the proposed downtown redevelopment in their lobbies for everyone to view. 5. Open Mike No one appeared for open mike. 6.1. Transitional Housing Program City Administrator Pat Klaers indicated that the city will be taking possession of a house near the library soon and the Mayor has asked the city to consider allowing this house to be used for the Love Elk River transitional housing program. Mr. Kdaers stated that the city currently owns a house north of the golf course that is leased to Harvest Evangelism dba Love Elk River for use with the transitional housing program. The city receives $300 a City Council M. inutes Page 3 June 23, 2003 month rent for this house which basically only covers the taxes on the property. Mr. Klaers stated that based on the information he received from Mel Beaudry of Remax, the city could receive anywhere from $1000-$1200 a month rent for this house, providing all appliances, heating, and air conditioning is functioning properly. It was noted that the rooms in the basement would need to be evaluated to see if they meet code for use as bedrooms. Nix. Klaers stated that if this house is leased to Love Elk River, the appropriate rent amount would need to be determined. It was noted that the city would receive substantially less money per month if the city leased the house to Love Elk River rather than renting it out in the market. Mayor IClinzing acknowledged that this is a larger house and would cost more to keep up. Mayor KLinzing indicated that she does not believe that the city should be in the rental property business. Mayor Klinzing stated that if the house is leased to Love Elk River, there is a committee that would govern the house and would take care of everything. Mayor IClinzing noted that the family that is in the house north of the golf course is doing well and hopes to move on by spring so the house will be open to a new family. Councilmember Kuester questioned if Sherburne County currently provides any form of subsidized housing. Mayor Klinzing stated that the county has programs to assist people on a short-term basis but that subsidized housing is handled through the HRA in St. Cloud. Councilmember Kuester stated that she likes the concept of the transitional housing but is not sure she's comfortable with the city performing social service work. Councilmember Dietz questioned if the city rented the house out for the going rate of $1000-$1200, if there would be a high turnover rate because people could purchase a house for that amount. Councilmember Motin stated that he believes that some people prefer to rent a house rather than buy. Councilmember Dietz also questioned if because the city used library funds to purchase the house, if the rent proceeds would go back into the library fund for the future library expansion. Mr. Klaers stated that this is a logical recommendation but it would be the Council's decision. Councilmember Tveite stated that he believes that it would be worth it to receive less money by leasing the property to Love Elk River because they would be the ones dealing with the frustrations of rental property. Councilmember Motin questioned if four to five years for the library expansion to take place was a good estimate. Mr. Klaers stated that it was a good estimate. Councilmember Motin stated that if the time before the expansion was shorter he would support the city allowing the house to be used for transitional housing but since it will be four to five years, he supports the city renting the property. He stated that the city would lose approximately $40,000 over the five years by renting the property to Love Elk River. Councilmember Motin stated that he supports putting the money back into the library fund. MAYOR KLINZING MOVED TO LEASE THE BAILEY HOUSE TO HARVEST EVANGELISM DBA LOVE ELK RIVER FOR ONE YEAR TO BE USED FOR TRANSITIONAL HOUSING WITH A SIMILAR LEASE AGREEMENT TO THE HOUSE NORTH OF THE GOLF COURSE CURRENTLY BEING LEASED BY LOVE ELK RIVER WITH THE RENT AMOUNT TO BE SET BY THE CITY. COUNCILMEMBER TVEITE SECONDED THE MOTION. City Council Minutes June 23, 2003 Council discussion on a lease timeframe took place. Page 4 COUNCILMEMBER MOTIN MOVED TO TABLE THE BAILEY HOUSE LEASE MOTION UNTIL THE JULY 14, 2003 MEETING IN ORDER TO OBTAIN ADDITIONAL FIGURES AND MORE INFORMATION ON THE BASEMENT CONDITION. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 4-1. Council_member Tveite opposed. 6.2. 2:00 a.m. Bar Closing Legislation City Administrator Pat I~aers stated that the 2:00 a.m. bar closing legislation was approved and signed into law by Governor Pawlenty. Mr. Klaers stated that the law goes into effect July 1, 2003 and in order for the local liquor establishments to be open until 2:00 a.m. the city must first change its ordinance making it legal. Mr. Fdaers stated that if the Council agrees, staff would send a letter to all local liquor establishments informing them that they cannot stay open until 2:00 a.m. until they obtain a permit from the dty and a permit cannot be obtained until the ordinance is changed. Mr. Klaers stated that each bar would have the ultimate decision on whether or not they choose to stay open until 2:00 a.m. It was the consensus of the City Council to direct staff to send letters to the local liquor establishments, to discuss the ordinance change at the July 14, 2003 City Council meeting, and to invite the local liquor establishment owners to the July 14 meeting. 6.3. Consider Shooting/Gun Range Request City Administrator Pat Klaers stated that the bid for the mechanical system of the shooting/gun range is still good but the city would have to go out for bids again for the "guts" of the system. Sheriff Anderson was in attendance to voice his support for the city completing the shooting/gun range. Sheriff Anderson stated that forming a partnership and sharing a range was discussed a couple years ago, but it was decided that the departments have different needs in a range. The Sheriff also stated that he would like to build a range in the future but he has no idea of where or when that would take place. Sheriff Anderson indicated that he believes the Elk River Police Department has a need for their own range and it would be in the best interest of the city to complete it at this time. Councilmembers Kuester and Motin expressed their concern about possible competition if the city were to rent the range out to other departments or to citizens. Sheriff Anderson stated that he would work with the city if a conflict arose. Police Chief Jeff Beahen stated that the city committed a long time ago to building the shell of the range and he would like to see it followed through and the range be completed at this time. Councilmember Tveite stated he believes it would be worth it to complete the range now as the savings would grow as the department grows. Councilmember Dietz stated that the money for the shell has already been spent and that the entire thing may as well be completed. City Council Minutes Page 5 June 23, 2003 COUNCILMEMBER DIETZ MOVED TO AWARD THE BID FOR THE MECHANICAL COMPONENT OF THE SHOOTING/GUN RANGE TO SENTRASOTA AND TO AUTHORIZE STAFF TO ADVERTISE FOR BIDS FOR THE REST OF THE RANGE. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Pat Fdaers provided and update to the Council on the Public Safety/City Hall/Utilities project. 6.4. Consider Boston/Concord Street Area Assessment Options City Engineer Terry Maurer stated that he met with Finance Director Lori Johnson regarding available payment options for the assessments by the affected property owners in the Boston/Concord Street Improvement area. Mr. Maurer stated that the f-mst option is the 15-year constant principal payment method. Mr. Maurer stated that Ms. Johnson would like only one additional assessment offer extended to the residents. Mr. Maurer stated that the second option being offered is the 20-year constant annual payment payment method. A letter will be sent to the affected property owners indicating that they have an option to change their assessment to a 20-year constant annual payment method. If the resident doesn't reply, the assessment will be recorded as the 15-year constant principal method. The Council suggested that the city require something in writing from the residents requesting the alternate option. It was the consensus of the Council to offer both a 15-year constant principal method and a 20~year constant annual payment method to the affected property owners in the Boston/Concord Street Improvement area. 6.5. Update on Transportation Issues City Engineer Terry Maurer stated that he has a few transportation issues from the joint City Council/County Board meeting on May 27, 2003, that need further attention. County. Road 33 (CR33)/County Road 77 (CR77) Realignment Mr. Maurer stated that at the joint meeting, Mr. Schwarting questioned if the City Council ever envisioned the new road alignment that had been shown previously on the city's transportation plan going between Elk River Country Club and Woodland Trails Park to meet up with County Road 1. Nit. Maurer stated that if this road is not going to be constructed, Mr. Schwartmg would like to change his design to have CR 33 be the through movement in the realignment of CR 33 and CR 77. COUNCILMEMBER DIETZ MOVED THAT THE CITY'S CURRENT TRANSPORTATION PLAN STAND AND THAT THE ROAD NOT BE EXTENDED. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. County. Road 33 alignment east of TH 169 City Engineer Terry Maurer stated that at the joint meeting, the potential alignment of CR 33 with Anoka CR 22 was discussed but no consensus was reached on whether or not the city or the county would undertake this alignment study. Mayor Klinzing stated that she believes that District 3 of MnDot should get involved. Mr. Maurer stated that the best way to do this would be to add it to the spring tour and discuss it at that time. City Council Minutes Page 6 June 23, 2003 City Administrator Pat I~daers indicated that a resolution was sent to the county asking them for an alignment study last year but the city has received no response. Mr. Iadaers suggested that the Council direct staff to send a letter to the County Board of Commissioners asking them to direct county staff to conduct a study of the curves close to 169 and a realignment study and let the county formally respond to the request. COUNCILMEMBER TYEITE MOVED TO DIRECT STAFF TO SEND A LETTER TO THE SHERBURNE COUNTY BOARD OF COMMISSIONERS REQUESTING THAT COUNTY STAFF BE DIRECTED TO CONDUCT A COUNTY ROAD 33 STUDY ON THE CURVES CLOSE TO TH169, A REALIGNMENT STUDY, AND A SPEED STUDY. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. County, Road 40 (Cleveland Ave) City Engineer Terry Maurer stated that the county has been successful in obtaining a TEA 21 federal grant for the project. Nix. Maurer stated that Mr. Schwarting has indicated that the county is requesting to delay the project and reserve the federal funds until the project develops. This will give the city time to see if development in this area will provide an opportunity to acquire right-of-way ~vith little or no cost through the platting process. Mayor IZdinzing stated that she and County Commissioner Arne Engstrom will be facilitating a meeting with property o~vners in the area to see how many of them would be interested in dedicating right-of-way. 4. County Road 44 ,(Upland Ave/Meadowvale Road) City Engineer Terry Maurer stated that Sherburne County has indicated that the upgrading of County Road 44 is in their 2004 program but they will not have time to produce the plans for the project. Mr. Maurer indicated that County Engineer Dave Schwarring discussed the potential of allowing the city to lead this design and construction project with the county providing funding for their portion of the construction cost and a set percentage of overhead cost. Mr. Maurer stated that the county would continue jurisdiction over the road once the project is completed. Councilmember Dietz stated that he believes the city has to do what they can to expedite this project. City Administrator Pat Kdaers stated that his notes indicate the county was going to submit a formal proposal to the city but nothing has been received yet. Mr. Klaers stated that the city would be in favor of taking the lead and moving forward with this project providing the additional cost to the city is not substantial. Mr. I4Aaers suggested that staff send a letter to the county stating the city is interested in seeing this project move forward and would be willing to take the lead in the design of this project and that the city will respond once a formal proposal is submitted from the county. The Council concurred that this letter be sent. Mayor Klinzing stated that she believed that the county cost sharing policy is unfair to dries and that the county is also unfairly restricting accesses to county roads within dries. She stated that the dty needs to be more proactive in implementing its transportation plan and in advising the county as to how it needs the county roads to function within the city. City Council NLinutes June 23, 2003 Page 7 7. Other Business Councilmember I<uester noted that she recently attended a homeland security meeting at which Police Chief Jeff Beahen and Fire Chief Bruce West were both in attendance and she was very impressed with their knowledge of homeland security issues. 8. Staff Updates There were no staff updates. 9. Adjournment There being no further business, Mayor I(flinzing adjourned the meeting of the Elk River City Council at 9:37 p.m. Jessica Miller Recording Secretary