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08-05-1997 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 4, 1997 Members Present: Members Al)sent: Staff Present: Also Present: Mayor Duitsman, Councilmembers Dietz, Farber and Thompson Councilmember Holmgren Pat Klaers, City Administrator: Terry Maurer, City Engineer; Kevin Johnson, City Attorney; Steve Rohlf, Building & Zoning Administrator; Laurie Mezera-Kerr, Environmental & Zoning Code Officer; Paul Steinman, Director of Economic Development; Debbie Kleckner, Recording Secretary Jeff Asfahl, Community Recreation Director; Dana Anderson, Park & Recreation Commission Chair; Ron Westrum, Park & Recreation Commissioner Call Meetinq 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 Mayor Duitsman. Consider 8/4/97 Aqenda The following items were added to the Council agenda: - 5.2. -8.1. - 3.2. Environmental Updates - Energy City Film Phil Hals - Vehicle Auction 7/28/97 Executive Session Minutes - Remove from Consent Agenda COUNClLMEMBER FARBER MOVED TO APPROVE THE AGENDA AS AMENDED. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. Consider Consent Aqenda COUNClLMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 3.3. 3.4. 3.5, 3.6. 7/28/97 CITY COUNCIL MINUTES - APPROVED CHECK REGISTER - APPROVED RESOLUTION ADOPTING SPECIAL ASSESSMENT REAPPORTIONMENTS- APPROVED TEMPORARY ON-SALE BEER LICENSE BY ELK RIVER LIONS FOR HERITAGE FESTIVAL ON AUGUST 9TM AND 10TM - APPROVED TEMPORARY ON SALE LIQUOR LICENSE BY ELK RIVER LIONS FOR FIRE DEPARTMENT OPEN HOUSE ON SEPTEMBER 20TM - APPROVED COUNClLMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. City Council Minutes August 4, 1997 Page 2 2.1. 7/28/97 Executive Session Minutes COUNCILMEMBER FARBER MOVED TO APPROVE THE 7/28/97 EXECUTIVE SESSION MINTUES WITH THE FOLLOWING AMENDMENT: - STAFF PRESENT - ADD "TOM ZERWAS, POLICE CHIEF" COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. Macon/Riverview Improvement Project 4.1. Assessment Hearinq for Macon/Riverview Project IConsider Resolution Adoptin.q Assessment) Terry Maurer reviewed the method used to determine the assessments for the street, storm sewer, sanitary sewer and water. Terry indicated the total costs were divided among the 41 lots; 17 which are existing lots and 24 which are part of the Country Crossing 3rd plat. The existing lots will only be assessed for street and storm drainage at this time. Existing lots will not be assessed for sewer and water unless the residents choose to hook up now, or when sewer and water is extended through the entire neighborhood. Terry noted the interest rate has gone down from 6.75% to 6.31%. Mr. Sanudo has chosen to combine his two lots, and he will only be assessed for one unit. Staff is recommending that the assessment rates for sewer and water remain in effect for five years, after which a 1% annual inflation factor be included. A petition by 16 property owners was submitted, expressing their objection to the proposed assessment. City Attorney Kevin Johnson explained the appeal process to the residents. He indicated the petition which was submitted meets the minimum criteria for written objection to the assessment. Mayor Duitsman opened the public hearing. Tom Graber, 13548 Riverview Drive, indicated the Palmer Addition was deleted from a project by submitting a petition similar to this group's petition. He requested the residents on Macon and Riverview Drive not be included in the assessment. Mr. Graber explained the original project was for a street overlay only,, and that the development of Country Crossing 3rd was forcing the issue of including curb and gutter and utilities. Mr. Graber felt the benefit of the improvements to his property would only be $2,000 compared to $4,800 in street assessment costs. Mr. Graber estimated costs could be as high as $19,300 to hook up to sewer and water, including contractor costs to bring the lines to his home, tear up his basement, fill in the septic system, etc. Mr. Graber stated he felt Councilmember Dietz should not have voted on an amendment to a resolution for the Palmer Addition since he abstained from voting on the original resolution. Rick Sjogren, 18010 Macon, stated his objection to the proposed assessment. City Council Minutes August 4, 1997 Page 3 Al Sanudo, 13416 Riverview Drive, asked what the total cost would be to hook up to sewer and water. Terry explained the total assessment for sanitary sewer and water is estimated at $5,000; $2,450 for water and $2,550 for sewer. The cost varies to bring the pipes from the street to his home. Aisc, there is a cost to the homeowner to pump, crush, and fill their existing septic tank. Residents may choose fo keep their wells for outside irrigation. A monthly bill will be sent to them by the Elk River Utilities for water and sewer usage. Mr. Sanudo stated that the residents did not want these improvements and should not have to pay for them. Mike Heinecke, 18038 Macon Street, stated he did not know that sewer and water was guaranteed when the preliminary and final plat were approved. He stated he felt there should be some type of process for residents to work with City before a decision is made to extend sewer and water. Mr. Heinecke asked for some type of assurance their cost would not be any more than Mr. Emmerich's. Mayor Duitsman explained that if the Council adopts the proposal, the homeowners would be able to hook up by paying the SAC and WAC charges in effect at the time of hookup during the five year time period. Mr. Heinecke indicated that no one except the developer of Country Crossings is planning to pay for sewer and water at this time, and would like to be assured that the cost of the assessment would not be any higher for the existing residents at the time they are required to hook up than they will be for the developer at this time. Lu Ann Sjogren, 18010 Macon Street, questioned whether or not their front setback would be affected by the improvement project. T. erry Maurer indicated setbacks are measured from the right of way, and the right of way will not be changed by this project. Gall Johnson, 18024 Macon Street, questioned when the assessment would start. Mayor Duitsman explained that if anyone wants to pay assessment with no interest, it must be paid by mid-November. Ms. Johnson requested the assessment period be extended to 10 years. There being no other comments from the public, Mayor Duitsman closed the public hearing. City Attorney Kevin Johnson explained the appeal process. Mayor Duitsman indicated the Council attempts to treat all areas of Elk River consistently. He noted the new road will have a much longer life than an overlay would have and it would not be fair to assess these residents only $1,300. Mayor Duitsman expressed his support for the proposal as presented. The Councilmembers discussed the proposed assessments costs versus the Fresno area. Councilmember Dietz felt the cost was reasonable. Councilmember Thompson felt the roads were in bad shape and the improvements were definitely needed. Councilmember Farber felt the request by the residents to pay only $1,300 was not realistic, but he could not support the $4,800 assessment. COUNCILMEMBER DIETZ MOVED TO APPROVE RESOLUTION NO. 97-70, A RESOLUTION ADOPTING FINAL ASSESSMENT ROLL FOR THE MACON/RIVERVIEW PROJECT WITH THE FOLLOWING AMENDMENT: City Council Minutes August 4, 1997 Page 4 - INCLUDE THE FOLLOWING LANGUAGE IN THE FIRST PARAGRAPH AFTER THE PHRASE "PASSED UPON ALL OBJECTIONS": "INCLUDING WRITTEN AND ORAL OBJECTIONS RECEIVED AT THE AUGUST 4, 1997 ASSESSMENT HEARING" MAYOR DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 3-1. Councilmember Farber opposed. COUNCILMEMBER DIETZ MOVED TO REDUCE THE SANUDO ASSESSMENT FROM TWO UNITS ($9,600) TO ONE UNIT ($4,800), AND, THAT THE $5,000 ASSESSMENT RATE FOR SEWER AND WATER REMAIN IN EFFECT FOR FIVE YEARS, WITH A 1% PER YEAR INFLATIONARY FACTOR ADDED AFTER 5 YEARS. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Consider Resolution Awardinq the Construction Contract for the Macon/Riverview Project COUNCILMEMBER THOMPSON MOVED TO APPROVE RESOLUTION 97-71, A RESOLUTION ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE MACON STREET AND RIVERVIEW DRIVE IMPROVEMENT OF 1997. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.1. SAC Calculation Formula - Restaurant Uses Paul Steinman introduced a proposal to reduce the Sewer Availability Charge (SAC) calculation for restaurant uses locating in an existing facility in certain downtown areas. SAC charges for restaurant uses in these areas would be calculated at 1 unit per 22 seats, rather than the current 1 unit per 8 seats. Councilmember Thompson questioned how the number of units proposed was determined. Paul indicated the 1 unit per 22 seats is comparable to fast food restaurants. Councilmember Thompson questioned if the special rate would provide an unfair advantage to restaurants in the downtown. Paul indicated restaurant owners willing to take risk by locating in the downtown are faced with disadvantage such as less visibility, less traffic and available parking. Also, city building code, and ADA requirements make it difficult and expensive to develop downtown. Paul indicated he feels it makes sense to provide incentives to attract this type of use in downtown Elk River. COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE SAC CHARGE TO BE CALCULATED AT ONE UNIT PER 22 SEATS FOR RESTAURANTS LOCATING IN EXISTING BUILDINGS IN CERTAIN DOWNTOWN GEOGRAPHIC AREAS DESCRIBED AS FOLLOWS: -MAIN STREET (BOTH SIDES) FROM THE PARRISH AVENUE BRIDGE TO LOWELL AVENUE; JACKSON AVENUE (BOTH SIDES) FROM HIGHWAY 10 TO MAIN STREET; AND KING AVENUE {BOTH SIDES) FROM HIGHWAY 10 TO MAIN STREET. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. City Council Minutes Augusl 4, 1997 Page 5 5.2. Environmental Update Laurie Mezera-Kerr noted that 60.2 tons of items were collected during the spring clean up event. She noted recycling containers have been located in the city parks. Laurie indicated staff is working on SCORE grants for Energy City and a tub grinder for tree waste disposal. In reviewing the Complaint Log, Laurie explained problems staff is experiencing with Case 97-30, which involves numerous barrels of used oil filters. Laurie noted the last deadline for the property, owner to clean up the site was August 1st. and that nothing has been done since mid-June. COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE STAFF TO PROCEED WITH LEGAL ACTION TO RESOLVE COMPLAINT CASE NO. 97-30. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. Sherburne County will be sponsoring a household hazardous waste clean up event on Saturday, September 27th from 8 a.m. to 2 p.m. Steve Rohlf provided an update on Complaint Case No. 97-31 - Charest Property. Steve noted significant progress has been made in cleaning up the site, including the removal of 40- 50 junk vehicles. Steve indicated staff will be making a follow- up inspection and expects the issue to be resolved by that time. Steve indicated staff has taken water samples at Lake Orono and testing for fecal colonies is being done by the Wastewater Treatment Facility. Ener.qy City Update Enerqy Technoloqy Video - Environmental Journal. The video was viewed by the Council and audience. Steve Rohlf indicated the video will be aired on Channel 17 in the near future. Landfill .qas - Steve explained the methane gas at the Elk River Landfill is currently producing a Iow number of cfm's, but as more areas are capped and wells are installed, he feels will become more economical to produce electricity in the future. Steve proposed the City dedicate $8,000 a year from the 25% landfill surcharge special fund to build help finance the gas extraction program. Members of the City Council expressed support for helping to fund the gas extraction program and asked that a written proposal be presented for consideration when the project moves forward. Wind .qenerator- Steve indicated the proposed wind generator would have approximately $29,000 of risk per year for the first 10 years. After the first 10 years, there is basically no cost for generating electricity with the wind generator, except some maintenance. Steve proposed $1 per month could voluntarily be added to utility bills to finance the wind generator. Steve felt Elk River residents would be willing to pay this minimal charge for power which is generated without contamination. The Energy City Marketing Committee will meet Thursday, August 7th, to discuss an ad campaign to gain support for the ,$1 per month added to the City Council Minutes August 4, 1997 Page 6 utility bill. An article will be appearing in the Star News and an informational notice will be placed in the bills. 5.3. Consider Candidate for WWTS Operator Position COUNCILMEMBER DIETZ MOVED APPROVAL TO HIRE BRIAN JOHNSON FOR THE POSITION OF WWTS OPERATOR STARTING AUGUST 11, 1997 AT $12.07 PER HOUR, WITH A COST OF LIVING INCREASE IN JANUARY, 1998, AND A STEP INCREASE IN JULY, 1998, IF JOB PERFORMANCE IS SATISFACTORY. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.4, Consider Resolution Approvin.q Plans and Authorizinq Bids for Simonet Drive and Hi.qhway 10 COUNCILMEMBER THOMPSON MOVED APPROVAL OF RESOLUTION NO. 97-72, A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND ORDING THE ADVERTISEMENT FOR BIDS IN THE MATTER OF THE SIMONET DRIVE/TH 10 IMPROVEMENT OF 1997, WITH THE FOLLOWING AMENDMENTS: - BID OPENING DATE SHALL BE AUGUST 28, 1997 - BIDS TABULATED AT THE SEPTEMBER 2, 1997 CITY COUNCIL MEETING COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 6. Open Mike No one appeared for Open Mike. 7. Discussion on Park Bond Referendum Dana Anderson reviewed the process which lead to the Park & Recreation Commission's recommendations for projects to be funded by the proposed park bond referendum. Woodland Trails Shelter Phil Hals provided examples of shelters proposed for Woodland Trails Park, Oak Knoll and the Cass property. Phil indicated he will research other types of shelters, as well as costs for the electrical, plumbing, concrete and footings. Discussion followed regarding the proposed facility at Woodland Trails. Phil indicated there will be a maintenance equipment storage area, and the ski grooming equipment will be stored there, as well. Councilmember Thompson did not feel the indoor area would be adequately used, other than as a warming house. It was suggested nature classes could be held inside the proposed building, and possibly could be rented out by various groups such as scouting. Jeff Asfahl suggested the possibility of renting skis and selling concessions to cross country skiers in the winter. Councilmembers and staff discussed the proposed cost for bathrooms at $50,000. Phil explained the cost is much greater to construct bathrooms which are less vulnerable to vandalism. Phil noted other cities have indicated the extra expense will pay for itself. City Council Minutes August 4, 1997 Page 7 Cass Property Improvements Councilmember Farber questioned why soccer fields are not being proposed for the Cass property. Park & Recreation Chair Dana Anderson stated the softball and baseball associations have committed funds to develop the Cass property fields. Dana felt the Soccer Association's immediate needs are being met through the Otsego soccer fields complex. The Soccer Association has indicated they are earmarking funds for irrigation of the Otsego fields. Pat Klaers noted the City, School District and the Park & Recreation Commission will be meeting with the Soccer Association to discuss their needs, as well as the loss of the soccer field at the Oak Knoll site. Discussion followed regarding tournaments for soccer, softball and baseball to generate funds for field improvements, and the economic impact on the community. Councilmember Dietz indicated the complex as proposed could attract national tournaments, but the city's lack of hotels would be an influencing factor. Councilmember Dietz asked whether or not after Phase II is completed, there would be land available for the Minnesota Sports Federation (MSF) to do a 4-field complex. Phil indicated this property will be used for sludge disposal as long as possible. Coun¢ilmember Dietz noted that youth softball and baseball will be given first oppodunity for use of the fields and will need to submit a schedule in the spring, and the remaining weekends will be available for MSF. Trails Phil Hals explained the proposed trail link from Highway 169 to County Road No. 1 which will cross School District property. After speaking with Mike Hanlon of District #728, Phil felt the School Board would react positively to the proposal when it is presented. Phil indicated when MN/DOT recently toured Elk River, they expressed support for a bituminous trail along the south side of Highway 10 Highway 10 from the Dairy Queen out to the Elk River bridge. MN/DOT has offered suggestions to continue across the bridge to Gary Street and connect with Orono Park, such as hanging a walkway on bridge. Phil will discuss with Terry Maurer how this proposal may be tied in with the Simonet Drive and Highway 10 improvement project. Dana Anderson noted John Kuester will facilitate an organizational meeting of the park bond referendum committee on Tuesday, August 5th at 7:00 p.m. Sub- committees will be established for communications (printing material, public speaking, fundraising, and a phone bank to contact voters. Other Business 8.1. State Vehicle Auction Phil Hals indicated the State of Minnesota will conduct an auction of used vehicles on Saturday, August 9th. Pat explained that the Economic Development Department, Panning Department and clerical staff could make use of a vehicle which would carry more than 3 passengers, such as a van. Phil stated he has a City Council Minutes August 4, 1997 Page 8 qualified staff person who could attend the auction to evaluate the vehicles and bid on a good prospect. COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE EXPENDITURE OF UP TO $7,000 FOR THE PURCHASE OF A USED VAN AT THE STATE VEHICLE AUCTION ON SATURDAY, AUGUST 9, 1997. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. 9. Staff Updates There were no staff updates. 10. Adjournment There being no further business, COUNCILMEMBER FARBER 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 9:15 p.m. Respectfully submitted, Debbie Klecknet" Recording Secretary