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04-06-1998 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, APRIL 6, 1998 Members Present: Mayor Duitsman, Counciimembers Dietz, Thompson, Farber, and Holmgren Members Absent: None Staff Present: Pat Klaers, City Administrator; Sandra Thackeray, City Clerk; Terry Maurer, City Engineer; Lori Johnson, Assistant City Administrator; Paul Steinman, Director of Economic Development; Tom Zerwas, Police Chief Aisc Present: School Board Members - Zach Fox, Jack Hines, Mary McDevitto Kraljic, and Mark Strafer, and Dr. David Flannery, Superintendent Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called fo order at 6:00 p.m. by Mayor Duitsman. Consider Agenda Item 3.5 - Eagles Premises Permit Renewal was pulled from the Consent Agenda. COUNCILMEMBER FARBER MOVED TO APPROVE THE APRIL 6, 1998, CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED S-0. Consider Consent Agenda COUNClLMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 3.2. 3.3. 3.4. 3.6. 3.7. 3.8. 3/9/98 CITY COUNCIL MINUTES - APPROVED CHECK REGISTER - APPROVED TEMPORARY GREENHOUSE FOR TARGET - APPROVED AUTHORIZATION TO MOVE AHEAD WITH DEVELOPMENT OF A COMMUNITY RESOURCE AND RESIDENTS GUIDE - APPROVED WINE AND 3.2 PERCENT MALT LIQUOR ON SALE LICENSE FOR THE OLDE MAIN EATERY AND SWEET SHOPPE AT 313 JACKSON AVENUE - APPROVED FINAL PAY ESTIMATE FOR ORONO LAKE THIRD ADDITION, JOPLIN STREET AND LOWELL AVENUE PROJECTS TO R.L. LARSON EXCAVATING, INC. IN THE AMOUNT OF $27,355.32 - APPROVED AUTHORIZATION FOR STREET DEPARTMENT JOINT EQUIPMENT PURCHASE WITH CITIES OF BUFFALO AND MONTICELLO - APPROVED COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED City Council Minutes April 6, 1998 Page 2 4.1. 3..5. Consider Premises Permit Renewal for Fraternal Order of Eaqles Councilmember Dietz indicated his concern that the Eagles did not meet the requirement of the city's ordinance to spend 75% of net profits in the city's trade area. He indicated that he felt this could be due to the fact that there are two gambling organizations selling pull tabs at the Eagles Club. The City Clerk distributed a letter of explanation from the Eagles indicating that they are aware of the situation and that it is the Eagles intention to meet the 75% requirement in the future. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 98-30 APPROVING PREMISES PERMIT RENEWAL FOR THE FRATERNAL ORDER OF EAGLES AERIE #3264. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Ice Arena Update The City Administrator stated that at the 3/23/98 Council meeting, this item was continued until tonight's meeting and that the project cost summary was included in the packet. The City Administrator indicated that funding of the heating, dehumidification and ventilation improvements for the ice arena could amount to $150,000. The City Administrator suggested that ,50 percent of the net proceeds from the selling of the Holt and Jackson commercial site be used to pay this expense. Mayor Duitsman indicated that the city has received a back payment from the landfill. He indicated that $121,000 of this money is designated for the library and government building funds. The Mayor proposed that this $121,000 be used to pay the dehumidification, heating, and ventilation project at the ice arena and that any additional funds that are needed come from the net profit of the sale of the Holt and Jackson lot and, further, that the balance of funds from the sale of this lot be put into the development fund. City Administrator Pat Klaers indicated that there is a need to build up the government building fund as this is the main source of money for the future city hall expansion. Councilmember Holmgren indicated that he did not wish to earmark any of the balance of funds from the Holt and Jackson sale until the Council knows how much money the city will obtain from the sale. Councilmember Thompson indicated that he was in favor of the Mayor's proposal with the exception of keeping the $11,000 in the library fund. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE EXPENDITURE OF $110,000, WHICH IS THE LANDFILL BACK PAYMENT THAT IS IN THE GOVERNMENT BUILDING FUND, FOR THE DEHUMIDIFICATION, HEATING, AND VENTILATION PROJECT AT THE ICE ARENA WITH THE FOLLOWING CONDITIONS: City Council Minutes April 6, 1998 Page 3 4.2. 4.3. A. THAT $11,000 IN THE LIBRARY FUND NOT BE USED. ADDITIONAL FUNDS FOR THIS IMPROVEMENT COME FROM THE HOLT AND JACKSON LAND SALE AND THAT THE BALANCE OF THE NET REVENUES FROM THE SALE NOT BE COMMITTED TO THE DEVELOPMENT FUND AT THIS TIME. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4- 1. COUNCILMEMBER DIETZ OPPOSED. Public Hearinq Re,qardin,q Establishment of Tax Increment Financin,q District No. 18 and Adoption of Resolution Approving Tax Increment Plan for Tax Increment Financinq District No. 18 Director of Economic Development Paul Steinman reviewed the tax increment plan for tax increment financing District No. 18. He indicated that the plan calls for assistance to Morrell Trucking in the amount of $300,000. The funds are proposed to be used for soil corrections and site work at Morrell's future location at 171st Avenue and Highway 10. Paul Steinman indicated that the method of assistance has been discussed at several EDA meetings. Mayor Duitsman opened the public hearing. There being no one for or against the matter, Mayor Duitsman closed the public hearing. Council discussion took place regarding the present location of the Morrell business at School Street and Jackson and that ceasing operation at that location is a major issue. Discussion was also held regarding the amount of assistance the Morrell's needed to accomplish their project. Councilmember Thompson indicated that the present use at the Jackson and School Street site should be removed and the site cleaned up by June 2000. He suggested that the amount of assistance provided to the Morrell's be $300,000 up front based on a $2 million project and that assistance up front does not exceed 15 percent of the total estimated finished market value. Councilmembers Farber and Holmgren concurred with Councilmember Thompson. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-31 MODIFYING DEVELOPMENT DISTRICT NO. 1 AND ADOPTING THE DEVELOPMENT PROGRAM THEREFOR; AND ESTABLISHING WITHIN DEVELOPMENT DISTRICT NO. 1, TAX INCREMENT FINANCING DISTRICT NO. 18, AND ADOPTING THE RELATED TAX INCREMENT FINANCING PLAN THEREFOR. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-1. COUNCILMEMBER DIETZ OPPOSED. Railroad Drive Utility and Street Improvements City Engineer Terry Maurer reviewed the project as proposed in the Feasibility Study. He explained that the project consists of the extension of sanitary sewer from Jackson Avenue to the west, looping of watermain from Jackson Avenue City Council Minutes April 6, 1998 Page 4 4.4. 4.5. to the existing 4-inch line and the reconstruction of the road to drain toward Jackson Avenue. He also reviewed the project costs and project schedule. Mayor Duitsman opened the public hearing. Tom Weise, lumber yard owner, indicated that he was in favor of the project. There being no further comments, Mayor Duitsman closed the public hearing. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-32 ORDERING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS IN THE MATTER OF THE RAILROAD DRIVE STREET AND UTILITY IMPROVEMENT OF 1998. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5- 0. Boston Street Improvements Public Hearin.q City Engineer Terry Maurer reviewed the project as proposed in the feasibility study. He indicated that the project includes the extension of sanitaw sewer and watermain to serve properties on Boston Street north of Orono Road, and the reconstruction of the road. He also reviewed the project costs and schedule. Mayor Duitsman opened the public hearing. Dave Dirkes indicated he petitioned for the improvements and is in favor of the project. Robert Larson questioned whether the Council is considering the extension of sewer and water to serve properties on Boston south of Orono Parkway. The Council indicated that this has been proposed in the past but the majority of the property owners were not in favor of a project. The Council indicated that the Council would be in favor of a project in that area if the residents were also in favor. The City Administrator indicated that staff would provide Mr. Larson information regarding the last time this was discussed with the property owners. There being no further comments, Mayor Duitsman closed the public hearing. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 98-33 ORDERING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS IN THE MATTER OF THE BOSTON STREET IMPROVEMENT OF 1998. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Update on Proposed Park and Recreation Bond Referendum The City Administrator updated the Council on the Park and Recreation Bond Referendum process. He indicated that it was the consensus of a subcommittee and staff that a follow-up survey is necessary to help determine why the last proposal failed. The cost for this survey is expected to be about $4,000. The City City Council Minutes April 6, 1998 Page 5 4.6. $.2. Administrator suggested that the funding for this survey come from the council contingency fund. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE A FOLLOW UP SURVEY BY DECISION RESOURCES AT A COST OF APPROXIMATELY $4,000 WITH FUNDING FOR THIS SURVEY TO COME FROM THE COUNCIL CONTINGENCY FUND. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Update on Old Northbound Liquor Store Mayor Duitsman indicated that a lease has not yet been negotiated with the Watz Up? Caf~ Club for the old Northbound Liquor Store. He indicted that the Watzes, the Boys and Girls Club and Youth Initiatives groups are meeting to see how all three the these projects can work together. The City Administrator indicated that it would be beneficial for the city to do some basic improvements at the old liquor store site. COUNCILMEMBER HOLMGREN MOVED TO DIRECT THE CITY ADMINISTRATOR TO TAKE NO ACTION ON LEASING THE ELK HILLS FAMILY RESTAURANT FACILITY. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER HOLMGREN MOVED TO PROCEED WITH THE $37,000 WORTH OF IMPROVEMENTS, AS INDICATED IN THE APRIL 6, 1998 CITY COUNCIL MEMO, TO RENNOVATE THE OLD NORTHBOUND LIQUOR STORE WITH THE CEILING HEIGHT TO BE DETERMINED AFTER ALL OTHER IMPROVEMENTS HAVE BEEN MADE. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Other Business Rivers of Hope Councilmember Thompson recommended that $2,000 be included in the city budget for a contribution to the River's of Hope. COUNCILMEMBER THOMPSON MOVED THAT $2,000 BE INCLUDED IN THE CITY BUDGET ON A YEARLY BASIS, TO BE GIVEN TO THE RIVER'S OF HOPE ORGANIZATION TO BE USED SPECIFICALLY ON A PROGRAM BENEFITTING THE CITY OF ELK RIVER WITH THIS YEAR'S CONTRIBUTION TO COME FROM THE COUNCIL CONTINGENCY FUND. COUNCILMEMBER FARBER SECONDED THE MOTION. Councilmember Farber indicated that although this is a start, he would like to see more than $2,000 be given to this organization. THE MOTION CARRIED 4-1. COUNCILMEMBER DIETZ OPPOSED. Use of Contin.qency Funds Mayor Duitsman questioned whether the Council would authorize funding from the Council Contingency fund for council members to attend a Chamber of Commerce golfing event. City Council Minutes April 6, 1998 Page 6 COUNCILMEMBER FARBER MOVED TO AUTHORIZE FUNDS FROM THE COUNCIL CONTINGENCY FUND FOR COUNCIL MEMBERS TO ATTEND THE CHAMBER OF COMMERCE GOLFING EVENT. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 3-1-1. COUNCILMEMBER HOLMGREN ABSTAINED AND COUNCILMEMBER DIETZ OPPOSED. 6. Staff Updates No staff updates were presented. 7. Open Mike Brian Doran, 115 Baldwin Street indicated his concern about the present conditions of the Hohlen Trailer Park. He indicated that no progress has been made with the developers, and further indicated that there is no shelter for the residents in case of inclement weather. Mayor Duitsman recessed the City Council meeting at 7:10. The City Council moved to the training room for a joint meeting with the School Board. Mayor Duitsman reconvened the City Council meeting at 7:20 p.m. 8. School Board/City Council Joint Meeting. The School Board members and City Council members introduced themselves. · Residential Development Plans The City Administrator and City Engineer discussed the city's plans for future growth. Terry Maurer discussed the city's plans for development in the eastern area of the city. Dr. Flannery reviewed the School District's comprehensive plan. Police Uaison Program Police Chief Tom Zerwas gave an update on the school liaison program. Discussion was held regarding the School District's plans to continue the program. Dr. Flannery indicated that the school is satisfied with the service. Coun¢ilmember Dietz indicated that he would like to see a resolution about the city receiving increased fees for the liaison officers. Dr. Flannery indicated that this will have fo be discussed. · ALC/Oak Knoll Fields Dr. Flannery provided an update on the progress of the Area Learning Center construction. Discussion was held regarding the Oak Knoll Fields and it was noted that the Joint Powers Agreement for the Varsity field has been approved. City Council Minutes April 6, 1998 Page 7 · School Street City Administrator Pat Klaers indicated that it has long been a goal of the city to expand School Street to four lanes. He indicated that the city would like to discuss this issue to see what the School Board's commitment is to this project. He further stated that it is the city's intention to work with the School Board on this issue. City Engineer Terry Maurer updated the School Board on the scope of the project and gave some very preliminary cost estimates. Terry Maurer indicated that this city would pay for one half of the project and that the School District would be assessed for the other half as they own 100 percent of the property on the north side of the road. Discussion was held by the School District regarding the need for the project, the timing and the School District's responsibility to pay for the assessment. It was determined that this issue would be discussed by the School District in the near future. · Joint Meeting Date Dr. Flannery indicated that a joint meeting with the School District and municipalities within the district is planned to take place in 1999. A tentative date of January 12 was set for this meeting. Dr. Flannery indicated that the School District is planning on meeting with its legislators after the legislative session ends. He indicated that the City Council is invited to attend, however a date has not yet been set. 9. Adjournment There being no further business, Mayor Duitsman adjourned the meeting at 8:50 p.m.. Respectfully submitted, Sandra Thackeray City Clerk