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03-08-2004 CC MIN MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER HIGH SCHOOL LITTLE THEATER MONDAY, MARCH 8, 2004 Members Present: Members Absent: Staff Present: Mayor Klinzing, Councilmembers Dietz, Kuester, Tveite, and Motin None City Administrator Pat Klaers, City Engineer Terry Maurer, Director of Economic Development Catherine Mehelich, and City Clerk Joan Schmidt Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:45 p.m. by Mayor Klinzing. Consider 3/08/04 Agenda Three other items were added under Other Business: -Brimeyer Update; -Discussion on Proclamation of Congratulations for hockey team; -Discussion regarding the Library. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER KUESTER TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 5-0. Consider Consent Agenda MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILEMBER KUESTER TO APPROVE THE FOLLOWING CONSENT AGENDA: 3.1. 3.2. 3.3. 3.4. 3.5. 3.7. 2/23/04 COUNCIL MINUTES CHECK REGISTER CALL SPECIAL MEETINGS FOR ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE WORKSESSIONS CALL SPECIAL MEETING FOR MARCH 17, 2004 TO DISCUSS DOWNTOWN REVITALIZATION PROJECT CONSIDER RENEWAL OF REFUSE HAULER LICENSES CONSIDER PURCHASE OF PICKUP TRUCK FOR FIRE DEPARTMENT CONSIDER MASSAGE THERAPIST LICENSE FOR JEAN DAYLE. MOTION CARRIED 5-0. City Council Minutes March 8, 2004 ............................. 4. Open Mike Page 2 No one appeared for Open Mike. Administration/Engineering Administrative Hearing for Elk River Gas and Convenience Store, Inc., Regarding Alcohol Compliance Check. City Clerk Joan Schmidt explained to the Council that the Elk River Police Department in conjunction with the Sherbume County Health Department had conducted an alcohol compliance check of all licensed liquor establishments within the City of Elk River on January 28. During the compliance check at the Elk River Gas and Convenience Store, Inc., 13374 Highway 10, an employee of the store sold alcohol to a person under the age of 21 years. A letter by certified mail was sent on February 13m informing the licensee of this incident and on February 25m a request was received from licensee Mai Yang for an administrative hearing. This hearing is scheduled for tonight and Ms. Yang was notified in person on February 26 of this date, time, and purpose. The Council has the authority to impose a $500 civil penalty. Mayor Klinzing asked the Council if they accepted the role of being an administrative hearing board. The Council was in agreement. Licensee Mai Yang, who is also the owner of CENEX, where the Elk River Gas and Convenience Store, Inc., is located asked the Council to reconsider and she cited the following three reasons: · The establishment had started selling beer and alcohol during that week and the employee thought that the correct age for selling alcohol was 18. · Prior to owning the business she was a social worker and agrees that we must protect our youth and will enforce this law in the future. · Since this incident, all employees were instructed to read the laws associated with liquor and tobacco, and the employees have signed an agreement indicating that they understand the consequences of selling alcohol and tobacco to minors. Councilmember Kuester asked if oral instructions were also provided. Ms. Yang responded that, yes, the employees looked at a video tape and they had a staff meeting informing them of the incident. Mayor I~inzing asked if there were any instructions before the incident. Ms. Yang replied that, yes, they had handouts. However, she felt that the employees had been given too much information because they had only started the business a short while before and had a lot of rules and policies to read and learn. Mayor Klinzing asked Police Chief Beahen if the employee is also fined. Chief Beahen replied, yes, the employee appeared in court on March 1. He was given a $500 fine with 60 days. However, this fine was deviated to $125 and if it should happen again, the employee could be fined the total amount and have to serve the 60 days. City Council Minutes March 8, 2004 ............................. Page 3 5.2 Councilmember Tveite felt that it was reasonable to impose the penalty since the establishment should have been up to speed when opening their business and known the laws. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO IMPOSE THE $500 CIVIL PENALTY. ROLL CALL VOTE: DIETZ - AYE; KUESTER - NAY; KLINZING - NAY; TVEITE - AYE; MOTIN - NAY. MOTION FAILED 3-2. Councilmember Motin stated that the establishment has taken the steps to remedy the situation and felt that there should be some sort of deviation. Mayor I~inzing stated that the council has been given assurances from the owner that this would not happen again and felt that since the judge had deviated with the employee that the council could do the same with the owner. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER KUESTER TO SET A PENALTY IN THE AMOUNT OF $250 WITH REASONS FOR DEVIATION BEING THAT THE COMPANY JUST BEGAN TO SELL ALCOHOL, A POLICY WAS NOT IN PLACE, AND THEY HAVE SINCE TAKEN PRECAUTIONS TO PREVENT THIS FROM HAPPENING AGAIN. ROLL CALL VOTE: DIETZ - NAY; KUESTER - AYE; KLINZING - AYE; TVEITE - NAY; MOTIN - AYE. MOTION CARRIED 3-2. Consider proposed property tax abatement for Orluck Industries, Inc. Light Industrial Building Project, Public Hearing. Director of Economic Development Catherine Mehelich updated the Council on the staff report. She stated that the EDA Commission is recommending approval of the property tax abatement request and the selling of the Joplin street lot for the Orluck Industries, Inc. project. Mr. Orluck proposes to build a 20,000 square foot light Industrial/business Park building on the City owned lot located at the southwest corner of Joplin and Business Center Drive intersection. Orluck Industries and mutli-tenants would occupy the building. Mr. Orluck is requesting that the new job and wage goals for the project be set at 0 following the public hearing. Orluck Industries of Dayton currently employs 15 full-time positions at $15 - $22 per hour wage. Mr. Orluck is willing to commit only the existing jobs of the company. Mr. Orluck has submitted a similar application for TRF from the County. Mayor I~inzing opened the public hearing. No one was present to address the Council. Mayor I~inzing closed the public hearing and brought it before the Council. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TVEITE TO ADOPT RESOLUTION 04-14 APPROVING PROPERTY TAX ABATEMENT FOR THE ORLUCK LLC PROJECT AND SELLING THE LAND FOR $1.00 WITH THE PROCEEDS OF THE PROPERTY TAX ABATEMENT COMING BACK TO THE CITY AND ALSO City Council Minutes Page 4 March 8, 2004 ............................. THE APPROVAL OF THE TAX ABATEMENT AND BUSINESS SUBSIDY AGREEMENT. MOTION CARRIED $-0. 5.3 Consider Concept Approval of the Gradient Technology, Inc. Expansion Site Proposal Director of Economic Development Catherine Mehelich updated the Council on the staff report. Gradient Technology proposes to construct a 13,000 square foot light industrial/business park building for their office, research development, and equipment fabrication operation. The company is relocating from Blaine. Ms. Mehelich reported staff has proposed the company purchase up to two acres in the Elk River Business Park and the City consider a write down of the land cost (at $1.61/square foot) to $0 through a pay-as-you-go tax abatement note to the company. Eric Haehn, Vice President/Chief Financial Officer of Gradient Technology described the company operations. Ms. Mehelich stated there has been concern by EDA/Councilmembers on whether or not the Elk River Business Park is eligible to receive TIF on TRF assistance. She stated that a third party attorney has reviewed the TIF 19 project agreement and provided written opinion to staff that the agreements do not preclude the City from providing public assistance to eligible businesses that locate in the Business Park. Gradient will submit a similar application for TRF from the County. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER KUESTER TO APPROVE THE PRELIMINARY PROPOSAL CONCEPT FOR THE GRADIENT TECHNOLOGY PROJECT AND TO DIRECT STAFF TO COMPLETE THE DUE DILIGENCE PROCESS FOR THE FINANCIAL ANALYSIS AND TAX REBATE FINANCING PROCESS. MOTION CARRIED $-0. 5.4 Consider Release of Arts Alliance Funds Executive Director Sharon Tracey of Elk River Area Arts Alliance distributed to the Council the M,J'e, Central Minnesota Arts Community Magazine, stating that the Arts in Harmony art exhibition had been featured in this publication. She stated how grateful this organization is to the City for the continued support in the organization's efforts to community development through the arts. She updated the Council on the future of the arts and stated that the Handke Center will be looked at after the referendum. She asked that the Council release the fgl0,000 that was designated for their organization. MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY COUNCILMEMBER MOTIN TO RELEASE THE $10,000 DESIGNATED FOR ELK RIVER AREA ARTS ALLIANCE FOR THE YEAR 2004. MOTION CARRIED $-0. 5.5 Consider Petition for Water and Sewer Services. City Administrator Pat Klaers explained that this item had been tabled from the February 23, 2004 meeting to receive an opinion from the attorney regarding the applicability of the City Council Minutes Page 5 March 8, 2004 ............................. 60-day statute regarding the petition received requesting sewer and water services in the area east of Cleveland Street. It was the attorney's opinion that "a request must be submitted in writing to the Agency on an application form provided by the Agency and no request shall be deemed made if not in compliance." MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO DIRECT STAFF TO SEND A LETTER TO THE PROPERTY OWNERS INFORMING THEM OF THE FACT THAT THE PETITION WAS DENIED BECAUSE IT WAS NOT ON THE CORRECT APPLICATION FORM; AND SENDING THE CORRECT PETITION AND LAND USE APPLICATION FORMS TO THE HOMEOWNERS INSTRUCTING THEM TO RESUBMIT FOR ACTION. MOTION CARRIED 5-0. 5.6 Consider Resolution Establishing State Aid Highways City Engineer Terry Maurer explained that the City currently has just over 2.5 miles of undesignated mileage to be placed on the City's MSA system. He is recommending that the two locations this mileage be placed is Elk Hills Drive from Dodge Avenue easterly to connect with CSAH 13, and 221st Avenue from Trunk Highway 10 easterly to CSAH 21 at Monroe Street. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-15 ESTABLISHING STATE AID HIGHWAYS. MOTION CARRIED 5-0. 5.6.1 Consider Resolution Authorizing the City to Enter a Partnership Agreement with Mn/DOT. City Engineer Terry Maurer explained that Mn/DOT had approached the City regarding District 3 requesting that the City Council consider entering into a partnership contract. He stated it is his understanding that the contract allows monies paid by the City of Elk River for services on street projects to flow back to District 3 from where the service was provided rather than into the general fund of Mn/DOT. This item was continued to this meeting to allow time to review the contract language with the city's attorney. Mr. Maurer stated that the attorney felt that this was standard language in a contract and there was no problem with the City entering into this contract. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-16 AUTHORIZING THE CITY TO ENTER INTO A PARTNERHSIP AGREEMENT WITH MINNESOTA DEPARTMENT OF TRANSPORTATION. MOTION CARRIED 5-0. Other Business 6.1 Brimeyer Update Councilmember Kuester explained to the Council that she and staff had met with Mr. Brimeyer and that the date of May 15, which had been set for the retreat, is the opening of fishing. It was also the opinion of those present at the meeting that to meet all day would be too tiring for everyone. It was suggested to have two or three 3-4 hour sessions. The first session would be focusing on orientation, establishing common City Council Minutes Page 6 March 8, 2004 ............................. ground, what our expectations are and our shared direction, shared values. The second session would be to work on strategic goals and establish a work plan. It was the consensus of the Council to meet on April 26 from 3 - 6 p.m. prior to the Board of Equalization that will begin at 6:30. It was also the consensus of the Council to meet on May 10 after the EDA meeting from 6:30 p.m. to about 10:00 p.m. and if needed on the fourth Monday in May from 6 - 10 p.m. 6.2 Proclamation Mayor Klinzing asked the Council if they wished to have a proclamation or letter sent congratulating the Elk River Girls Hockey Team on being the state champions. It was the consensus of the Council that a proclamation should be done and brought back at the next meeting. 6.3 Discussion of the Libra~ City Administrator Klaers informed the Council that staff met today with Mr. and Ms. Koehler regarding their interest in selling their home to the city. The Koehler property is next to the Bailey property that the city recently purchased for the future expansion of the Library. Consensus of the Council was given to obtain an appraisal of this property. 7. Staff Updates City Administrator Klaers reminded the Council of the State of the City Address to be given on Tuesday, March 16, 2004 at the EOC. 8. Adjournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 8:05 p.m. Joan Schmidt City Clerk