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