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11-30-1998 CC MINSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 30, 1998 Members Present: Mayor Duitsman, Councilmembers Dietz, Thompson, and Farber Members Absent: Councilmembers Holmgren (due to attendance at the Volleyball Banquet at the High School) Staff Present: Pat Klaers, City Administrator; Lori Johnson, Assistant City Administrator: Sandra Peine, City Clerk: Terry Maurer, City Engineer: Scott Harlicker, Planning Assistant; Bruce West, Fire Chief; Peter Beck, City Attorney; Bryan Adams, Utilities Superintendent Also Present: Dave MacGillivray, Bond Consultant 1. Call Meetinq To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council was called to order at 6 p.m. by Mayor Duitsman. 2. Consider A.qenda COUNCILMEMBER THOMPSON MOVED TO APPROVE THE NOVEMBER 30, 1998, CITY COUNCIL AGENDA AS PRESENTED. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider Consent Aqenda COUNCILMEMBER THOMPSON MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1, REQUEST TO ADD ADDITIONAL ITEMS TO THE 12/7/98 SPECIAL CITY COUNCIL MEETING AGENDA - APPROVED RESOLUTION 98-129 ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE EMERGENCY VEHICLE PREEMPTION LED SIGNAL INDICATORS IMPROVEMENT OF 1998 - APPROVED COUNClLMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.'1. Request by Associated Developers of the Twin Cities, Inc. for Rezoning Public Hearin.q, Case No. ZC 98-9 Planning Assistant Scott Harlicker indicated that Associated Developers of the Twin Cities are requesting the Council to consider rezoning 60.43 acres from C3/highway commercial and R2b/two family residential to PUD/Planned Unit Development. The property is located on the southeast corner of Highway 169 and Main Street. Scott Harlicker discussed the criteria upon which the Council should review the proposed zoning request. He reviewed the staff report on the Elk River City Council Meeting November 30, 1998 Page 2 issue. He indicated that the Planning Commission recommended approval of the zone change. Mayor Duitsman opened the public hearing. Kathy Swanberg indicated that she owns property directly south of the proposed rezoning and questioned whether her property would become landlocked due fo the rezoning. City Engineer Terry Maurer indicated that her property would not be landlocked. Kathy Swanberg stated that she wanted the Council to be aware that she is interested in selling her property as part of the proposed project, however she was not informed of the project or the rezoning issue. There being no further comments, Mayor Duitsman closed the public hearing. COUNCILMEMBER FARBER MOVED TO ADOPT ORDINANCE 98-27 AMENDING THE CITY OF ELK RIVER ZONING MAP TO REZONE CERTAIN PROPERTY FROM C3/HIGHWAY COMMERCIAL AND R2B/TWO FAMILY RESIDENTIAL TO PUD/PLANNED UNIT DEVELOPMENT, CASE NO. ZC 98-9. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5.1. Discuss Fire Inspection Pro.qram Fire Chief Bruce West updated the City Council on the fire inspection program. Bruce West indicated that the program consisted of both code enforcement and facility preplanning. Councilmember Dietz indicated that he felt it was the Council's intent to have three or four part time firefighters doing the inspections on a part time basis. Bruce West indicated that there were, at one time, three or four firefighters doing this job, however, at the present time, there are only two inspectors. He indicated that the lack of interest is due to the time commitment for the job and the fact that most firefighters already have a full time job. Discussion was held regarding the request to increase the wage for the fire inspectors to $12.00 per hour. Councilmember Dietz suggested increasing the wage based on the number of hours worked rather than a flat rate. He stated that this may entice more firefighters to continue working as fire code inspectors. Councilmember Thompson requested that a memo be presented to all firefighters informing them of the position and indicating that the city of Elk River is making a commitment to those who are interested in this position. It was the consensus of the City Council to defer any action on the wage increase at this time. Elk River City Council Meeting November 30, 1998 Page 3 5.2. 5.4. Resolution Providing for the Issuance and Sale of the City's $1,375,000 General Obligation Improvement Bonds, Series 1998A. Resolution Providing for the Issuance and Sale of the City's $820,000 General Obli.qation Wafer Improvement Bonds, Series 1998B Bond Consultant Dave MacGillivray indicated that the GO Improvement Bonds fund the 1998 overlay, Railroad Drive, Boston, Business Center Drive, Lake Orono, and Guardian Angels projects. He indicated that the Iow bidder for the GO Improvement Bonds was Piper Jaffray, Inc. at 4.3091 percent. Dave MacGillivray indicated that the $820,000 GO Water Revenue Bonds Series 1998B would fund well #6 and related treatment facilities. He indicated that the Iow bid for the GO Bonds was from Norwest Investment Services, Inc. at 4.7755 percent. Dave MacGillivray recommended that the City Council adopt the resolutions providing for the issuance and sale of the GO Bonds and the Water Revenue Bonds. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-130 PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $1,375,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 98-131 PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $820,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1998B. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0. Discuss Proposed Public Improvements for East Elk River City Administrator Pat Klaers indicated that the purpose of this Council worksession is to update the City Council on the issues relating to the east Elk River project. He reviewed the issues to be discussed which included reviewing the bids for the project, the shortage between the bids and the assessment amounts, funding options for the shortage, and cash flow issues. The City Administrator informed the Council that the trunk sewer and water project is only part of the entire east Elk River public improvement project. Assistant City Administrator Lori Johnson reviewed the project costs, revenues, and balance to be funded. Following her review of the east Elk River project funding options, she noted that there is funding yet to be identified in the amount of $2.6 million to cover the shortage in the streets, storm sewer, sewer, and water improvements, after funding the railroad crossing and lift station through tax increment financing. Bond Consultant Dave MacGillivray addressed the shortfall. He indicated that some of the uncertain issues include the life of the TIF District, special assessments, connection fees, and storm water management fund. Mayor Duitsman indicated that there are other issues that are not part of the equation. Some of the issues include expenses for County Road 12 and the purchase of the Brown property. Elk River City Council Meeting November 30, 1998 Page 4 Discussion was held regarding possible funding for the purchase of the Brown property. Mayor Duitsman indicated that 10 percent of the total TIF issue can be used off site. The Mayor fudher suggested putting the total deficit, $2.6 million, into the TIF District. Discussion was held about the possibility of using the Development Fund for the purchase of the Brown property and for the payment of assessments on the Brown property. Councilmember Dietz stated that, if eligible, he would like to plan some of the TIF revenue for the sewer and water shortfall. The City Administrator indicated that he felt the city should keep the length of the TIF District as short as possible. Dave MacGillivray discussed the risk factors which included non payment of assessments, cash flow concerns associated with Green Acres, the TIF district not being developed as projected, etc. He discussed options to address these risk factors which included internal transfers or a different type of bond structuring. Lcd Johnson indicated that cash flow and making sure that the timing of revenues matches debt and other payment obligations is a concern which needs fo be considered. Mayor Duitsman indicated he felt it was important that the Council was fully aware of all of the risk factors and various components involved in this project. 6. Other Business There was no other business. 7. Staff Updates There were no staff updates. 8. Adjournment There being no further business, Mayor Duitsman adjourned the meeting at 8:10 p.m. Respectfully submitted, Sandra Peine City Clerk