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03-03-1997 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY~ NL~RCH 3, 1997 Members Present: Vice Mayor Die~, Councilmembers Thompson and Holmgren. Councilmember Farber arrived at 6:05 p.m. Members Absent: Mayor Duitsman Staff Present: Lori Johnson, Finance Director; Pat Klaers, City Administrator; Sandra Thackeray, City Clerk; Terry Maurer, City Engineer; Tom Zerwas, Police Chief; Sergeant, Brad Rolfe; Sergeant/Investigator, Tom Tyler 1. Call Meetin.q To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:00 p.m. by Vice Mayor Dietz. 2. Consider March 3, 1997 Council A.qenda Item 8.1., Request for Participation in Deregulation was added to the agenda. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE MARCH 3, 1997, AGENDA AS AMENDED. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 3-0. Consider Consent A.qenda COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 3.2. 3.3. CHECK REGISTER - APPROVED 2/18/97 CITY COUNCIL MINUTES - APPROVED 2/22/97 SPECIAL CITY COUNCIL MINUTES- APPROVED COUNClLMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 3- O. 4.1. Lowell Avenue Public Hearin.q and Assessment Hearin.q City Engineer, Terry Maurer, indicated that the proposed improvements for Lowell Avenue consist of reconstruction of Lowell Avenue between Trunk Highway 10 and Main Street. He explained that the existing street is proposed to be reconstructed to a similar width and also that adjacent sidewalks are proposed to be reconstructed where necessaw. He stated that the proposed assessment is $42.00 per front foot. Vice Mayor Dietz opened the public hearing. There being no one for or against the matter, Vice Mayor Dietz closed the public hearing. Elk River City Council Meeting Page 2 March 3, 1997 COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 97-16, A RESOLUTION ORDERING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS IN THE MAlrER OF THE LOWELL AVENUE IMPROVEMENT OF 1997. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Vice Mayor Dietz opened the public hearing to consider the assessment roll for the Lowell Avenue improvement. There being no one for or against the matter, Vice Mayor Dietz closed the public hearing. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 97-17, A RESOLUTION ADOPTING THE FINAL ASSESSMENT ROLL FOR THE LOWELL AVENUE IMPROVEMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Orono Lake 3rd Assessment Hearing City Engineer Terry Maurer explained that the Orono Lake 3rd Addition improvements consist of constructing sanitary sewer, water, and storm sewer improvements along with new streets including concrete curb and gutter. He indicated that Fresno Street was previously upgraded with improvements of sanitary sewer, water, and storm sewer, and the streets were upgraded to a new urban type street with concrete curb and gutter. He explained that these improvements were constructed in conjunction with the Heritage Landing and Mississippi Oaks Additions improvements. He further explained that assessments to the abutting properties on Fresno Street were for street and storm drainage only. Property owners were told at the time of the assessment hearing for those assessments that they would not be assessed for sanitary sewer and water main until they chose to hook up individually, or utility improvements were constructed throughout the Orono Lake 3rd Addition. Terry Maurer explained that properties abutting Fresno Street are proposed to be assessed for sanitary sewer and water improvements in the amount of ,$7,275 per lot. He indicated that the other properties within the Orono 3rd Addition will be receiving assessments for street, sanitary sewer, water, and storm sewer in the amount of .$$12,150 per lot. Terry Maurer informed the Council that David and Debra Krocak of 18273 Denver previously owned two abutting lots in the Orono 3rd Addition. He indicated that the Krocaks have since combined the two lots creating one parcel. He recommended that the City Council consider that one of the assessments be deleted against one of the parcels of property. Vice Mayor Dietz reviewed the appeal process for individuals wishing to appeal the assessment against their property. Vice Mayor Dietz opened the public hearing. Vice Mayor Dietz entered the following formal assessment appeals into the record. Offo and Charee Waggenpfeil, 18259 Fresno Street, PID# 75-491-0305 Steve Dee, 18230 Fresno Street, PID# 75-491-0140 Gwen R. Smith, 18290 Fresno Street, PID# 75-491-0110 Elk River City Council Meeting March 3, 1997 Page 3 Mary Wells, 13109 Mississippi Road, indicated her concern regarding the looping of the water around to Denver Street. Terry Maurer informed Mary Wells that the looping of the water is included in the design. Rita Schmahl, 18254 Denver Street, indicated her concerns regarding homeowners hiring a contractor to complete the sewer and water hook up, re- establishment of lawn irrigation systems, access to driveways during construction, re-establishment of driveway, water qualify, placement of fire hydrants, and inclusion of street lights in the project. Gwen Smith, 18290 Fresno Street, indicated she was opposed to the assessment. She indicated there is no need for the improvements at this time and requested the Council to delay ordering the improvements for another ten years. Paul Bell, 18270 Fresno Street, indicated his concern regarding the residents on Fresno Street who were previously assessed three years ago for street and storm sewer improvements. He indicated that if this assessment is adopted, the people on Fresno Street will have double assessment payments as the first assessment will not be paid off until the end of 1998. Paul Bell indicated his concern regarding the 8 percent interest. He requested the Council to consider waiving the proposed assessment until their current assessment is paid off. Lori Johnson indicated that the 8 percent may actually be lower when the bonds for this project are issued. The interest rate will be adjusted after the bonds are sold. Terry Newstrom, 18141 Fresno Street, indicated that two assessments will be a hardship. She requested the Council to defer the proposed assessment until the first assessment is paid so as to avoid double assessment payments. Maria Dierks, 18210 Fresno Street, raised some questions regarding requirements for existing septic systems and contractors who will be working in the city of Elk River. Charee Waggenphfeil, 18259 Fresno Street, indicated that the assessment will be an extreme hardship to the family. She further indicated that property taxes will increase when the improvements are installed. She stated that she lives at 183rd and Fresno and does not want a street light installed in her area. Nicole Olson, 13084 182.d Avenue, indicated that she is in favor of the assessment project as they are in need of city sewer and water. Jeff Bulger, 13131 Mississippi Road, indicated that he would like the water looped from Fresno to Denver Street. Mr. Bulger indicated that he would be reconstructing his driveway to a horseshoe shape and indicated his concern regarding the ditch area. Deb Krocak, 18273 Denver Street NW, questioned whether the SAC and WAC charges would increase if they chose not to hook up for four years. She indicated that she has combined their two lots into one parcel of property and therefore requested that the Council only assess them for one lot. She further indicated her concern regarding replacement of landscaping. Ms. Krocak indicated that she was in favor of the project. Elk River City Council Meeting March 3, 1997 Page 4 Lee Nyquist, 18152 Fresno Street, indicated he was told that there were no plans for sewer and water when he recently stopped at City Hall to check on the parcel prior to purchasing. He indicated that he was opposed to sewer and water and requested that the Council delay the project for five to ten years. Tom Newstrom, 18141 Fresno Street, questioned whether the residents would be required to hook up to sewer and water in four years. Vice Mayor Dietz indicated that it is a city requirement to hook up to sewer and water within a four year time frame. Mr. Newstrom indicated that the cost for the improvement would be hard to justify and will far exceed the value of the home. He further indicated his concern about the trees on his property not being damaged and the ditch on his property being very steep. He requested the city engineer to see if it would be possible to reconstruct the ditch. The city engineer indicated that he would meet with the county to discuss the ditch situation. Brian Layer, 13133 182.d Avenue NW, indicated that a majority of the people in Orono 3rd Addition wanted the project to move forward. He indicated that he is in favor of the project. Jeff Bulger, 13131 MississipDi Road, questioned whether he would still have the option to hook up to the utilities if the project does not move forward. Gwen Smith, 18290 Fresno Street, indicated that she is a single parent and that the assessment would create a hardship. Ken Wells, 13109 Mississippi Road, indicated that he is in favor of the project as his existing water supply is bad. There being no further comments from the public, Vice Mayor Dietz closed the public hearing. Councilmember Holmgren indicated that payment of assessments is always a hardship. He indicated that this project has been delayed a couple of times and feels that it is time to move forward with the project. He indicated that existing wells and septics that have not been upgraded make financing nearly impossible and indicated that the improvements will benefit the property owners. Councilmember Holmgren indicated that he feels payment for the assessments for Fresno Street residents should be delayed for one year. Vice Mayor Dietz stated that he agrees that it would be best to delay the assessment payment for people of Fresno Street. He suggested that the City begin charging interest on the balance of the assessment at the 1993 assessment rate until the second assessment begins and at that time the interest rate should be the same as the assessment rate. Vice Mayor E)ietz also suggested giving the residents the option of a ten or fifteen year payment plan. COUNCILMEMBER FARBER MOVED TO DENY THE ASSESSMENT APPEAL FROM OTTO AND CHAREE WAGENPFEIL, 18259 FRESNO STREET, PID# 75-491-0305, IN THE AMOUNT OF $7,275 ON THE GROUNDS THAT THE PROPERTY IS BENEFITED BY AN AMOUNT IN EXCESS OF THE ASSESSMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. Elk River City Council Meeting March 3, 1997 Page 5 4.3. COUNCILMEMBER FARBER MOVED TO DENY THE ASSESSMENT APPEAL FROM STEVEN AND DONNA DEE, 18230 FRESNO STREET NW, PID# 75-491-0140, IN THE AMOUNT OF S7,275 ON THE GROUNDS THAT THE PROPERTY IS BENEFITED BY AN AMOUNT IN EXCESS OF THE ASSESSMENT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEMBER FARBER MOVED TO DENY THE ASSESSMENT APPEAL FROM GWENDOLYN SMITH, 18290 FRESNO STREET NW, PID# 75-491-0110, IN THE AMOUNT OF $7,275 ON THE GROUNDS THAT THE PROPERTY IS BENEFITED BY AN AMOUNT IN EXCESS OF THE ASSESSMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNClLMEMBER FARBER MOVED TO DELETE PARCEL # 75-491-0510 FROM THE ASSESSMENT ROLL BECAUSE THIS PARCEL WAS COMBINED BY DAVID AND DEBRA KROCAK INTO ONE PARCEL WITH THE NEW PID# BEING 75-491-0520. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4- 0. VICE MAYOR DIETZ MOVED TO ADOPT RESOLUTION 97-18, A RESOLUTION ADOPTING FINAL ASSESSMENT ROLL FOR THE ORONO LAKE 3~D ADDITION IMPROVEMENTS WITH THE FOLLOWING CONDITIONS: THE RESIDENTS ON FRESNO STREET WHO CURRENTLY HAVE AN ASSESSMENT AGAINST THEIR PROPERTY HAVE THEIR FIRST ASSESSMENT PAYMENT FOR THIS PROJECT DEFERRED UNTIL 1999, WITH INTEREST THE YEAR OF DEFERRAL ONLY, TO BE THE SAME RATE AS THE PREVIOUS FRESNO ASSESSMENT. UNLESS THE CITY IS NOTIFIED OTHERWISE BY THE ASSESSED WITHIN 30 DAYS WITHIN THE PASSAGE OF THIS MOTION, IT WILL BE ASSUMED THAT THOSE ASSESSED THE $7,275 WILL BE ON A TEN YEAR PAYMENT PLAN AND THOSE ASSESSED $12,150 WILL BE ON A FIFTEEN YEAR PAYMENT PLAN. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4- 0. Consider Award of Construction Contract for Orono Lake 3-~ Addition, Lowell Avenue, and Joplin Street Improvements Terry Maurer indicated that out of sixteen bidders for the Orono Lake 3ra, Lowell Avenue, and Joplin Street improvements, R. L. Larson Excavating came in Iow at $490,952.60. TerW Maurer recommended that the city contract with R. L. Larson Excavating for these projects. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 97-19, A RESOLUTION ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT TO R. L. LARSON, INC., IN THE MATTER OF ORONO LAKE 3~D ADDITION, LOWELL AVENUE, AND JOPLIN STREET IMPROVEMENT OF 1997. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. The City Council recessed at 7:30 p.m. and reconvened at 7:34 p.m. Elk River City Council Meeting Page 2 March 3. 1997 COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 97-16, A RESOLUTION ORDERING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS IN THE MATTER OF THE LOWELL AVENUE IMPROVEMENT OF 1997. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Vice Mayor Dietz opened the public hearing to consider the assessment roll for the Lowell Avenue improvement. There being no one for or against the matter, Vice Mayor Dietz closed the public hearing. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 97-17, A RESOLUTION ADOPTING THE FINAL ASSESSMENT ROLL FOR THE LOWELL AVENUE IMPROVEMENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Orono Lake 3rd Assessment Hearin.q City Engineer Terry Maurer explained that the Orono Lake 3rd Addition improvements consist of constructing sanitary sewer, water, and storm sewer improvements along with new streets including concrete curb and gutter. He indicated that Fresno Street was previously upgraded with improvements of sanitary sewer, water, and storm sewer, and the streets were upgraded to a new urban type street with concrete curb and gutter. He explained that these improvements were constructed in conjunction with the Heritage Landing and Mississippi Oaks Additions improvements. He fur}her explained that assessments to the abutting properties on Fresno Street were for street and storm drainage only. Properh/owners were told at the time of the assessment hearing for those assessments that they would not be assessed for sanitary sewer and water main until they chose to hook up individually, or utility improvements were constructed throughout the Orono Lake 3rd Addition. Terry Maurer explained that properties abutting Fresno Street are proposed to be assessed for sanitary sewer and water improvements in the amount of $7,275 per lot. He indicated that the other properties within the Orono 3rd Addition will be receiving assessments for street, sanitary sewer, water, and storm sewer in the amount of $12,150 per lot. Terry Maurer informed the Council that David and Debra Krocak of 18273 Denver previously owned two abutting lots in the Orono 3rd Addition. He indicated that the Krocaks have since combined the two lots creating one parcel. He recommended that the City Council consider that one of the assessments be deleted against one of the parcels of property. Vice Mayor Diefz reviewed the appeal process for individuals wishing to appeal the assessment against their property. Vice Mayor Dietz opened the public hearing. Vice Mayor Dietz entered the following formal assessment appeals into the record. Cftc and Charee Waggenpfeil, 18259 Fresno Street, PID# 75-491-0305 Steve Dee, 18230 Fresno Street, PID# 75-491-0140 Gwen R. Smith, 18290 Fresno Street, PID# 75-491-0110 Elk River City Council Meeting March 3, 1997 Page 6 4.4. 5.1. Consider Purchase of Additional E-au!pment for Wellness Room The City Administrator indicated that Sergeant Ron Nierenhausen is requesting authorization to purchase a treadmill for the wellness room. He indicated that the cost of the treadmill is approximately ,$4,000. COUNCILMEM'BER HOLMGREN MOVED TO DIRECT SERGEANT NIERENHAUSEN TO BRING BACK QUOTES FOR THE TREADMILL. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. The City Administrator indicated that as the Council supports this purchase from equipment reserves, this item would be on the March 17, 1997, consent agenda. Derrick Investment, Case No. P 96-9 The City Administrator indicated that Mr. Derrick has requested the City Council continue this public hearing to the March 17, 1997, Council meeting to allow time to work on the issues raised at the Planning Commission meeting. Vice Mayor Dietz opened the public hearing. Donna Lowden, 11837 193rd Avenue, indicated that one of the big selling points for the development was that there would be a 55 year and older age restriction on the occupants of the townhomes. She stated that it seems a lot of decisions hinged on the age restrictions such as the density increasing if the age restriction is removed and less traffic problems with this age group. She requested the City Council deny the Derrick Investment Companies request to change the age restriction. COUNCILMEMBER HOLMGREN MOVED TO CONTINUE THE PUBLIC HEARING FOR THE COTTAGES OF ELK RIVER BY DERRICK INVESTMENT COMPANY TO MARCH 17, 1997. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. Open Mike No one appeared for this item. Annual Report/Police Department The t996 Police Department Annual Report was presented by Police Chief Tom Zerwas, Sergeant Brad Rolfe, and Sergeant/Investigator Tom Tyler. Other Business Dere.qulation - City Administrator Pat Klaers requested the Council authorize the city to participate in lobbying efforts to work against the property tax exemption of utility attached machinery and other related utility tax issues. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE EXPENDITURE OF UP TO $1,000 TO SUPPORT THE LOBBYING EFFORTS AGAINST THE UTILITY TAX CHANGE. Elk River City Council Meeting March 3, 1997 Page 7 COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4- O. 9. Staff Updates There were no staff updates. 10. Adjournment There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE MEETING. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River City Council was adjourned at 9:00 p.m. Respectfully submitted, Sandra Thackeray City Clerk