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