07-06-1998 CC MINSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 6, 1998
Members Present:
Members Absent:
Staff Present:
4.1.
Mayor Duitsman, Councilmembers Dietz, Thompson, Farber, and
Holmgren
None
Pat Klaers, City Administrator; Sandra Peine, City Clerk; Lori
Johnson, Assistant City Administrator;, Phil Hals, Street/Park
Superintendent; Terry Maurer, City Engineer
Call Meetin.q To Order
Pursuant fo 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 A.qenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE JULY 6, 1998, CITY COUNCIL
AGENDA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Consider Consent Aqenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. CHECK REGISTER - APPROVED
3.2. 6/29/98 CITY COUNCIL MINUTES - APPROVED
3.3. TEMPORARY 3.2 PERCENT BEER LICENSE FOR SHERBURNE COUNTY LIONS AT
THE COUNTY FAIR - APPROVED
3.4. OUT OF STATE ANNUAL CONFERENCE ATTENDANCE FOR THE ECONOMIC
DEVELOPMENT DEPARTMENT - APPROVED
3.5. MECHANICAL AMUSEMENT DEVICE LICENSES FOR YOUTHBOUND -
APPROVED
3.6. EXEMPT GAMBLING PERMIT/RAFFLE LICENSE FOR RIVER CITY SNOWRIDERS -
APPROVED
COUNCILMEMBER HOUVIGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Assessment Hearin.qs
Guardian Anqels/Orono Lake Development
City Engineer Terry Maurer gave a brief review of the assessment project. He
explained that the proposed improvements consisted of sanitary sewer, water,
storm sewer, street construction, and bituminous trail, however assessments will be
levied only for sanitary sewer, water, and bituminous trail. The street and storm
Elk River City Council Minutes Page 2
July 6, 1998
sewer are private and funded directly by the developer. Terry explained that
there are three properties affected by the assessment; Guardian Angels of Elk
River, Elk Motel, and Mr. Donovan Goossen.
Terry Maurer indicated that Mr. Goossen will be appealing the assessment based
on the fact that when he recently purchased the property it was already
connected to sanitary sewer and water. The City Engineer indicated that it would
be the city's position to assess the property for lateral sewer and water and that
the issue of whose responsibility it is to pay the assessment would be between the
home seller and home buyer.
The City Engineer stated that the owners of the Elk Motel have indicated that they
will be paying three assessments which include Western Area 11 trunk assessment,
the proposed Guardian Angels/Orono Lake Development assessment, and the
Orono Lake Sediment Removal assessment. He stated that the owners of the
motel are requesting to extend the assessment terms so as to decrease the
annual payments. Terry Maurer stated that staff recommends that in certain
cases such as these, the assessment period be extended.
Mayor Duitsman opened the public headng.
Mr. Donovan Goossen, 18034 Sunrise Circle, submitted an appeal to his assessment
for Parcel # 75-132-2440. Mr. Goossen informed the Council that he purchased
the properly with city sewer and water already hooked up to the property. He
indicated that according to some papers he received from fhe City of Elk River,
the previous owner had agreed to pay for the sewer and water upon sale of the
property. He indicated that this was never done. Mr. Goossen further indicated
that he was under the impression that the assessment was paid when he
purchased the property and further indicated that because there was sewer and
water connected to the property, he is receiving no benefit to the property.
There being no further comments, Mayor Duitsman closed the public hearing.
The City Clerk entered into the record the appeal received by Mr. Donovan
Goossen for Parcel ID# 75-132-2440.
COUNCILMEMBER THOMPSON MOVED TO REJECT THE APPEAL SUBMITTED BY
DONOVAN GOOSSEN FOR PARCEL ID# 7.~-132-2440 BASED ON THE BENEFIT TO THE
PROPERTY EXCEEDING THE COST OF THE ASSESSMENT. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-7.~ ADOPTING FINAL
ASSESSMENT ROLL IN THE MATTER OF THE GUARDIAN ANGELS/LAKE ORONO
IMPROVEMENTS OF 1998 WITH THE CONDITION THAT THOSE PROPERTIES WITH
NUMEROUS AND/OR HIGH ASSESSMENTS BE ALLOWED THE OPTION TO EXTEND THE
ASSESSMENT TERM. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE
MOTION CARRIED .~-0.
Elk River City Council Minutes
July 6~ 1998
Page 3
Boston Street
City Engineer Terry Maurer indicated that the Boston Street Improvement Project
consisted of the extension of sanitary sewer and water main and the
reconstruction of Boston Street. Terry Maurer briefly reviewed the components of
the project.
Mayor Duitsman opened the public hearing. There being no one for or against
the matter, Mayor Duitsman closed the public hearing.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 98-76 ADOPTING THE
FINAL ASSESSMENT ROLL IN THE MATTER OF THE BOSTON STREET IMPROVEMENTS OF
1998. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-
O.
Railroad Drive Improvement
City Engineer Terry Maurer reviewed the proposed improvements for this project.
He indicated that the proposed improvements consist of the extension of sanitary
sewer from Jackson Avenue to the west, looping of the watermain from Jackson
Avenue to the existing 4 inch line, and street reconstruction. Terry Maurer
reviewed the project cost and proposed assessments for the improvements.
Mayor Duitsman opened the public hearing.
Russ Martie, owner of Martie's Feed Mill, questioned why the bookstore located
next to him along Jackson Avenue is not being assessed for the street component
of the project. City Engineer Terry Maurer indicated that the focus of the
bookstore operation is on Jackson Avenue and not along Railroad Drive.
Mayor Duitsman indicated that the city should consider assessing the bookstore
for the street portion of the project. Further discussion was held regarding
assessments being levied against the bookstore. It was the consensus of the
Council that the bookstore should be further evaluated. City Engineer Terry
Maurer indicated that he would review the situation with the owners of the
bookstore and, if appropriate, recommend to the Council that a supplemental
assessment hearing be held to add the bookstore to the assessment roll.
There being no further comments from the public, Mayor Duitsman closed the
public hearing.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 98-77 ADOPTING THE
FINAL ASSESSMENT ROLL IN THE MATTER OF THE RAILROAD DRIVE IMPROVEMENTS OF
1998. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-
0.
COUNCILMEMBER HOLMGREN MOVED TO CONSIDER A SUPPLEMENTAL ASSESSMENT
HEARING TO ADD THE BREAD OF LIFE BOOKSTORE TO THE ASSESSMENT ROLL.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Elk River City Council Minutes Page 4
July 6, 1998
COUNCILMEMBER THOMPSON MOVED TO ADOPT RESOLUTION 98-78 ACCEPTING
BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE BOSTON
STREET, RAILROAD DRIVE, GUARDIAN ANGELS/LAKE ORONO, JACKSON/HOLT
UTILITY, AND SCHOOL STREET IMPROVEMENTS OF 1998 CONTINGENT UPON THE CITY
RECEIVING THE EASEMENTS FROM THE SCHOOL DISTRICT FOR THE EAST SIDE OF
PROCTOR AND AN AGREEMENT FROM THE SCHOOL DISTRICT TO PAY 50 PERCENT OF
THE WEST SIDE IMPROVEMENT. COUNCILMEMBER FARBER SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
4.2. Telephone and Voice Mail Year 2000 Compliance
Assistant City Administrator Lori Johnson provided quotes to the Council to update
the city's voice mail and to make the telephone and voice mail year 2000
compliant. She indicated that the price for the voice mail system is `$$9,594.54 and
the pdce to bring the phone system into compliance for the year 2000 is `$$6,732.59.
COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE FOLLOWING
EXPENDITURES TO COME FROM THE COUNCIL CONTINGENCY FUND: $9,594.54
PAYABLE TO AVT CALLXPRESS 3 TO UPGRADE THE TELEPHONE SYSTEM; AND
$6,732.59 PAYABLE TO THE EXECUTONE SWITCH WHICH WILL BRING THE PHONE
SYSTEM INTO COMPLIANCE FOR THE YEAR 2000. COUNCILMEMBER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.3. Consider Health and Dental Insurance Proposals
Assistant City Administrator Lcd Johnson explained that the city's non union health
and dental insurance contracts with Medica will exlbire on July 31. She indicated
that the city no longer qualifies to be pad of the Minnesota Chamber Coalition
and, therefore, staff has requested proposals for insurance coverage. She
indicated that the city received proposals from Medica, Blue Cross and Blue
Shield, League of Minnesota Cities Insurance Trust, Epic Life, and Hanratty and
Associates. Lori Johnson informed the Council that after reviewing premium rates
and coverage, Medica and Blue Cross/Blue Shield were selected as the two best
proposals. Lori distributed a handout explaining the rates from Blue Cross and
Medica.
Representatives from Hanratty and Associates gave a presentation to the Council
regarding a self funding select 105 program. The consultants indicated that
although there would be risks involved to the city by picking up the deductible for
city employees and family members, they felt that the city and employees would
come out ahead with this type of proposal.
Barry Rosenberg, the city's insurance consultant, indicated that he did not feel
the city was in a position to assume any additional dsk and recommended that
the city stay with a fixed cost insurance coverage. He further indicated that it
was his recommendation that the city renew with Medica.
Councilmember Diefz questioned why the city does not consider a policy which
offers a `$200 deductible or an 80/20 plan so as to lower the insurance premium
cost to the employees. Lori Johnson indicated that this could be a possibility.
Elk River City Council Minutes Page 5
July 6, 1998
COUNCILMEMBER HOLMGREN MOVED TO HAVE COUNCILMEMBER DIETZ MEET WITH
LORI JOHNSON TO REVIEW INSURANCE PROPOSALS AND TO BRING THE ISSUE BACK
TO THE CITY COUNCIL FOR REVIEW ON JULY 13. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED .~-0.
4.4. Consider Retirement Benefit for the Elk River Fire Relief Association
Elk River Fire Relief Association President Jim Nystrom distributed information on
the Elk River Fire Department's proposal for retirement benefits. He indicated that
the Elk River Fire Department is requesting the Council to approve an increase of
benefits for 1999 to $2,970 for each year of service compared to $2,674 for 1998.
Mayor Duitsman indicated that he would like time to review the information
distributed and would like to have this brought back to the Council for
consideration on July 27, 1998.
The City Administrator stated that his recommendation for increasing the per year
amount will be lower than $2,970 based on more conservative growth projections.
COUNClLMEMBER HOLMGREN MOVED TO BRING THIS ISSUE BACK TO THE CITY
COUNCIL ON JULY 27, FOLLOWING STAFF'S REVIEW OF THE PROPOSAL.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED S-O.
4.5.
Consider Request for Preliminary Approval to Issue Revenue Bonds for Guardian
An.qels
Carol Mills, Guardian Angels, and Richard Helde, Faegre and Benson,
representing Guardian Angels, introduced themselves to the Council. Carol Mills
indicated that Guardian Angels is requesting the city to issue revenue bonds for
their upcoming project on Joplin Street and to refinance some previous projects.
She indicated that the previous projects include refinancing of the nursing home
and Evans Park. The City Administrator distributed two resolutions which give
preliminary approval for the issuance of revenue bonds. He indicated that
adoption of the resolutions do not hold the city liable to continue with the project
at this time.
COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-79 GIVING
PRELIMINARY APPROVAL TO AND CALLING A PUBLIC HEARING ON A PROPOSED
HOUSING PROGRAM AND PROPOSED HOUSING FACILITIES PROJECTS AND THE
PROPOSED ISSUANCE OF REVENUE BONDS THEREFOR BY THE CITY OF ELK RIVER,
MINNESOTA, PURSUANT TO A JOINT POWERS AGREEMENT TO BE ENTERED INTO IN
CONNECTION THEREWITH. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
COUNClLMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-80 GIVING
PRELIMINARY APPROVAL TO AND CALLING A PUBLIC HEARING ON PROPOSED
HEALTH CARE FACILITIES PROJECTS AND THE PROPOSED ISSUANCE THEREFOR OF
REVENUE BONDS BY THE CITY OF ELK RIVER, MINNESOTA, PURSUANT TO A JOINT
POERS AGREEMENT TO BE ENTERED INTO IN CONNECTION THEREWITH.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Elk River City Council Minutes
July 6, 1998
Page 6
6.1.
4.6.
Consider Postin.q Victoria Lane to 5 Ton Axle Weiqht
Street/Park Superintendent Phil Hals informed the Council that he has received
concerns from area residents on Victoria Lane regarding the proposed overlay.
He indicated that there is a resident living on Victoda Street who ddves a fully
loaded semi tractor and trailer on Victoria Lane in order to get to his properly. He
fudher indicated that this fully loaded semi would cause damage to the newly
overlaid road. Phil Hals indicated that he is proposing to post Victoria Lane as a 5
Ton Axle Weight limit until the winter freeze.
Discussion was held between the Council and the owner of the semi tractor and
trailer regarding his options other than using Victoria Lane. It was suggested that
the homeowner contact Sherburne County to see if he could possibly obtain an
access onto his property from County Road 32. It was the consensus of the
Council to have Phil Hals arrange a meeting between the Sherburne County
Engineer and the owner of the semi trailer/tractor to work af getting an access off
of County Road 32 onto his property.
Nodhbound AnnualRepo~
Nodhbound LiquorStore ManagerFritz Dolejspresentedthe 1997LiquorStore
AnnualRepod.
Open Mike
No one appeared for this item.
Other Business
A. Special Assessment Reapportionment
COUNCILMEMBER FARBER MOVED TO APPROVE THE SPECIAL ASSESSMENT
REAPPORTIONMENTS FOR LOTS IN WESTERN AREA PHASE II TRUNK WATER
AND SEWER ASSESSMENT AND IN ELK RUN STREET AND UTILITIES ASSESSMENT.
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
B. City Lot Bid
City Administrator Pat Klaers informed the Council that the city received
three bids for the city lot located at Lot 1, Block 1, Parkview Addition. The
City Administrator recommended awarding the lot to the highest bidder.
COUNCILMEMBER HOLMGREN MOVED TO ACCEPT THE BID FROM JOHN LENZ
FOR A PURCHASE PRICE OF $58,100 FOR LOT 1, BLOCK 1, PARKVIEW
ADDITION. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE
MOTION CARRIED .~-0.
Elk River City Council Minutes
July 6, 1998
Page 7
C. City Planner Applicant Update
City Administrator Pat Klaers updated the Council on the City Planner
applications that have been received. He indicated that he is proposing
to interview a few of the candidates.
D. Sherburne County Parade
Councilmembers Holmgren and Farber indicated that they would like to
be in the Sherburne County Parade.
E. School Board/Special Meetinq
The City Administrator indicated that the School Board has called a
special meeting to discuss the School Street improvements. He further
indicated that the School Board has indicated that two of the School
Board members will be present and are requesting two of the.
Councilmembers to be present at the meeting.
COUNCILMEMBER FARBER MOVED TO CALL A SPECIAL MEETING OF THE CITY
COUNCIL ON JULY 20, 1998, AT 5:00 P.M., IN THE ELK RIVER CITY HALL
TRAINING ROOM TO MEET JOINTLY WITH THE ELK RIVER SCHOOL BOARD TO
DISCUSS THE SCHOOL STREET IMPROVEMENTS. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
F. Northstar Corridor Meetin.q
Mayor Duitsman advised the Council about the upcoming July 9 Northstar
Corridor meeting. He indicated that the preferred site for a train station is
downtown Elk River. He further indicated that this is not a final decision.
7. Staff Updates
There were no staff updates.
8. Adjournment
There being no further business, Mayor Duitsman adjourned the meeting at 8:40
p.m.
Resp~tfully submitted,
,Sar~dra Peine-
City Clerk