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06-10-2002 CC MINPIEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL PIONDAY, JUNE I 0, 2002 Members Present: Members Absent: Staff Present: Mayor Iadinzing, Councilmembers Kuester, Modn, and Tveite Councilmember Dietz City Administrator Pat I<aaers, Finance Director LoriJohnson, Director of Economic Development Catherine Mehetich, Building and Zoning Administrator Stephen Rohlf, Police Chief Tom Zerwas, and City Clerk Sandra Peine Call Meedng To Order Pursuant to due call and nodce thereof, the meeting of the Elk River City Council was called to order at 7:10 p.m. by Mayor K3inzing. Consider 6/10/2002 Agenda The City Clerk requested that item 3.3 be pulled from the Consent Agenda and be moved to item 5.0. COUNCILMEMBER TVEITE MOVED TO APPROVE THE AGENDA ~S AMENDED. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Consider Consent Agenda COUNCILMEMBER MOTIN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS WITH THE CONDITION THAT THE CHECK RELEATING TO THE PURCHASE OF BOELTER'S PROPERTY BE REMOVED FROM THE CHECK REGISTER: 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 5/28/2002 CITY COUNCIL MINUTES CHECK REGISTER REQUEST FOR THERAPEUTIC MASSAGE LICENSE - PULLED FROM CONSENT AGENDA - SEE ITEM #5.0 RESOLUTION 02-48 APPROVING PREMISES PERMIT RENEWAL FOR THE ELK RIVER LION'S CLUB WAIVE SAC FEE OF $3,510 FOR GARAGE AND OFFICE ADDITION AT POWER PI.ANT INCREASE HOURS FOR LANA HUBERTY, RECREATION OFFICE ASSISTANT TO 40 HOURS PER WEEK RESOLUTION 02-49 AWARDING THE SALE OF THE CITY'S $500,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATE OF 2002; FIXING ITS FORM AND SPECIFICATIONS; DIRECTING ITS EXECUTION AND DELIVERY; AND PROVIDING FOR ITS PAYMENT City Council bfinutes June 10, 2002 3.8. 3.9. 3.10. Page 2 RECOMMENDATION BY PERSONNEL COMMITTEE TO APPROVE THE POSITION POINT VALUE OF 73 AND PAY GRADE OF 1E FOR THE PARK PLANNER/PLANNER REQUEST TO MOVE GARY LORE, MAINTENANCE I EMPLOYEE FROM PAY GRADE 8 LEVAL A TO PAY GRADE 8 LEVEL C ON JULY 1, 2002 REQUEST FOR TEMPORARY 3.2% MALT LIQUOR ON-SALE LICENSE BY ELK RIVER AREA CHAMBER OF COMMERCE FOR JULY 4, 2002 CELEBRATION AT LAKE ORONO COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4. Open Mike No one appeared for Open bIike 5.0. Request for Massage Therapist License -Jessica Maas The City, Clerk indicated that Jessica Maas has requested a license to practice therapeutic massage at a local salon in Elk River. She noted that Jessica has met the educational requirements for the license; however, she did not pass the background check. The Police Chief stated that Jessica did not provide factual information on the license application. Jessica Maas stated that she did not intentionally leave out the information. After further discussion, it was the consensus of the Council to grant the license to Jessica ~vith the stipulation that a background check is done on her future application renewals. COUNCILMEMBER MOTIN MOVED TO GRANT A THERAPEUTIC MASSAGE LICENSE TO JESSICA MAAS TO PRACTICE THERAPEUTIC MASSAGE AT WATERFALL TANNING AND DAY SPA WITH THE STIPULATION THAT A BACKGROUND CHECK IS DONE AT THE TIME OF RENEWAL. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER TVEITE OPPOSED. 5.1. Public Hearing and Consideration of Property, Tax Abatement for Elk Path, LLC Professional Office Building Project Director of Economic Development Catherine Mehelich indicated that the Economic Development Authority on May 13, 2002, recommended that the City Council consider the Elk Path, LLC application request of up to $200,000 in tax abatement for the construction of a 42,000 square foot professional office building located in the West Business Park. She explained that the public hearing is based on granting the abatement and grandng this business subsidy exceeding the amount of $100,000. Mayor Klinzing entered the following documents into the record: Memo to the Mavor and City Council from Councilmember Dietz opposing the request for Property Tax Abatement for Elk Path Memo to Pat Iadaers from Gary Santwire on behalf of Equity, Management, Inc., Rivers Crossing, Inc. and D. Russell Norha and Linda M. Norha requesting the Council to deny the request for Property Tax Abatement, plus attached exhibits relating to financing. City Council Minutes June 10, 2002 Page 3 Mavor K&inzing opened the public hearing. Gary, Santwire, 200 5th Street, Elk River, was present representing Equity Management, Inc., Rivers Crossing, Inc. and D. Russell Norha and Linda M. Norha. M.r. Santwh:e reviewed the issues specified in his letter. The issues he discussed included the folloWing: 1) The application does not meet objectives in the Rebate Policy. 2) Subsidization of speculative office building xvas not the intent of the Rebate Policy. 3) Discussion about making the goal of creating 100 new jobs a requirement if this proposal is approved. The issue of whether or not speculative office space meeting really creates any new jobs. 5) The applicant not meeting the "but-for" requirement. N~. Santwire presented his review of the project financial figures that were part of the rebate request. Mr. Santwire requested the Council to deny the request due to the application not meeting the but-for test, and based on the precedent that would be set by subsidizing speculative office space, and based on the questions that he brought up regarding the applicant's financial figures. There being no further comments, Mayor Ia-dinzing closed the public hearing. John Weicht, 13330 Islandview Drive, responded to the questions regarding the financial figures. He noted that he completed the application honesty. Lynn Cas~vell 11801 Brentwood Lane discussed the issue of needing more office space in the community. The Council concurred that the project was a good project, that the project location in the west business park would help jump start business in that area, and that it was good to have local developers proposing the project. The Council had some questions regarding the policy and suggested that the policy and any guidelines be reviewed by staff and be presented to the EDA and Council. Some of the issues discussed by the Council included whether the City should be subsidizing speculative office space, whether or not job goals should be part of the policy, job creation criteria, having the financial proposals reviewed by a professional financial consultant, and if speculative space is to be subsidized, under what condition or guidelines. COUNCILMEMBER KUESTER MOVED TO CONTINUE THE ISSUE TO JULY 8, 2002, AND TO AUTHORIZE STAFF TO DRAFT SOME GUIDELINES TO BE REVIEWED BY THE CITY COUNCIL AND EDA ON JUNE 24, 2002. COUNCILMEMBER TYEITE SECONDED THE MOTION. THE MOTION CARRIED 4-0. City Council Minutes June 10, 2002 5.2. Request by the City of Elk River for Ordinance Amendment Section 900 - Regarding Building Permit Escro~vs Requirements - P.H. Page 4 Building and Zoning Administrator Steve Rohlf requested Council to consider an ordinance amendment that xvould require an escrow of a maximum of 50% of the value of the unfinished landscaping when a C.O. is requested. Mayor IClinzing opened the public hearing. Tom Bakritges, representing D.R. Horton revie~ved the issues in his letter to the Mayor and City Council on June 4, 2002. He noted that D.R. Horton would prefer that escrow be done through the City and not a dde company, bank, or other financial institution as it would hold up closings and financial and title company processes and could be a hindrance to future homeo~vners. He stated that he would prefer to see the escrow at the time of building permit issuance. There being no further comments, Mayor 1,7~inzing closed the public hearing. COUNCILMEMBER MOTIN MOVED TO ADOPT ORDINANCE 02-09 AMENDING SECTIONS 000.a0 AND ooo.a8 OF THE CITY CODE OF ORDINANCE8 - CASE NO. OA 09~-09.B WITH THE DELETION OF THE WORD "ONLY" IN SECTION ooo.a$ 2 (B). THE MOTION CARRIED 4-O. 5.3. Consider Hiring Environmental Technician Building and Zoning Administrator Steve Rohlf requested authorization to advertise for an Environmental Assistant. Steve reviewed the proposed duties for tkis position. COUNCILMEMBER TVEITE MOVED TO AUTHORIZE STAFF TO ADVERTSIE FOR THE POSITION OF ENVIRONMENTAL ASSISTANT. COUNCILMEMBER ICUESTER SECONDED THE MOTION. THE MOTION CARRIED 4-O. 5.4. Liquor and Tobacco Fees The City Clerk indicated that the Council previously requested Staff to research the city's existing liquor and tobacco fees to see if expenses are being recovered. The City, Clerk indicated that she compiled information in a survey from other cities regarding tobacco and liquor fees. The City Clerk noted that of those surveyed, the approximate average charged for tobacco Licenses is $160 compared to Elk River's fee of $100. She noted that based on the cost of enforcement and administration, the fees could be increased in the City of Elk River. The City Clerk noted that according to the survey, Elk River's Liquor fees are also quite a bit lower than the average. She indicated that the on-sale liquor fees have not been increased for at least 20 years. She also noted that after reviewing the police reports, it is evident that there is an increase in demand on law enforcement due to liquor licenses. The Clerk indicated that if the Council ~vants to consider increasing the license fees, it would be best to coordinate the increase with the resolution considering the fee schedule at the end City Council Minutes Page 5 June 10, 2002 of the year so that new license fees are in place at the beginning of 2003. She also noted that liquor fee increases require a public hearing and notification of the hearing to all liquor licensees. The Clerk also noted that State Statute indicates that on-sale liquor fees are intended to cover the costs of issuing, inspecting and other direcdy related costs of enforcement. It was the consensus of the Council that liquor fees and tobacco fees should be increased to meet the City's cost of enforcement. The Council authorized the City Clerk to have further research the cost of police enforcement related to liquor licenses. 5.4A. Renewal of Liquor Licenses The City Clerk presented the list of liquor licenses for approval. She noted that all liquor fees have paid, and all Licensing requirements have been met. COUNCILMEMBER TVEITE MOVED TO APPROVE THE LIQUOR LICENSE RENEWALS AS INDICATED ON THE STAFF REPORT. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.5. Consider Amendment to Animal Ordinance Relating to Kennels The City Clerk indicated that staff is requesting an amendment to Section 502 of the City Code pertaining to animals. She indicated that the amendment is necessary due to confusion in interpreting the ordinance. The existing ordinance indicates that a person can have 3 dogs or cats before a kennel license is required. The Clerk noted that the question always arises as to whether this means 3 dogs and 3 cats or a total of 3 animals. She noted that the proposed ordinance reflects that a kennel License is required for anything over 3 animals. Discussion was held regarding the total number of 3 animals. The Council requested Staff to rewrite the ordinance using language that allows up to 4 animals, but no more than three dogs. 5.6. Consider Amendment to Billiard Hall Ordinance Council recendy directed staff to revise the e.,dsdng Billiard Hall Ordinance to allow the Council fle.,dbility to extend the hours of operation beyond the 1:00 a.m. requirement through a conditional use permit. COUNCILMEMBER TVEITE MOVED TO ADOPT ORDINANCE 02-10 AMENDING SECTION 712.10 OF THE CITY CODE RELATING TO BILLIARD HALLS. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.7. Consider Lease for House at Woodland Trails Park The City Administrator indicated that the City owns a house that has been rented out since it was purchased. He noted that the most recent renters have now moved out and the house is currently vacant. He indicated that the Mayor has suggested that the Council consider using the house as transitional housing by renting the house to a non-profit organization. City Council Minutes Page 6 June 10, 2002 Mayor Iadinzing indicated that she and HILh member Jean Lieser have been in contact with an organization called LOVE Elk River who is involved in transitional housing. Mayor Klinzing talked about the need for transitional housing in the City. She indicated that the LOVE Organization would be ~v511Lng to handle the leasing arrangements if the City agreed. Councilmember Tveite indicated that he felt this was a good use of City assets but would like to see a policy in place in order to protect the asset. He also indicated that he would not want the City involved in the administration of the project. Mayor I~linzing indicated that LOVE Elk River ~vould be responsible for the administration of the project. It was the consensus of the City Council to proceed with the project. The Council directed Staff to work with LOVE Elk River to draft a policy for the leasing of the City's property for the use of transitional housing. 6.1. Update on Tree Committee - Councilmember Kuester Councilmember Kuester presented an update on the City's Tree Committee. She noted that the Committee is looking for Council direction on how to proceed. Councilmember Kuester indicated that during the past 18 months the Committee has explored many approaches to increasing City involvement in preserving and promoting the presence of trees in the City. She indicated that there is no clear recommendation and that the opdons impact staff work assignments and budgeting. Councilmember Kuester reviewed the alternatives that the Committee has considered regarding tree preservation, which included the following: · Developing an ordinance regarding tree preservation · Adopting an ordinance for maintenance of trees on City property · Working ~vith other agencies to develop a program of tree education and promotion · Tree preservation as a consideration in re-evaluating the present zoning and land use Ron Halpaus addressed the Council and indicated that the Tree Committee did prepare a tree preservation ordinance that has been presented to the Planning Commission. Councilmember Kuester indicated that a lot of work was put into drafting the ordnance. She indicated that different members of the committee had other views and thoughts relating to tree preservation other than just a tree preservation ordinance. The Council suggested that the issue of tree preservation be included in the comp plan review. The Council directed Staff to research where the tree preservation ordinance is in the process and to research costs of enforcement. 7. Staff Updates The City Administrator indicated that the bid deadline for City Hall/Public Safety buildings has been extended by one week and that the Council will review the bids on June 24, 2002. The City Administrator indicated that the HRA has invited the City Council to attend the HIL5 meeting on June 24, 2002, at 5 p.m. to discuss affordable housing. City, Council Nfinutes June 10, 2002 8. Adiournment Page 7 There being no further business, Mayor Kdmzing adjourned the meeting of the Elk River City, Council at 10:30 p.m. Sandra Peine City Clerk