12-07-1998 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 7, 1998
Members Present:
Members Absent:
Staff Present:
Also Present:
1.
0
4.1.
Mayor Duitsman, Councilmembers Dietz, Thompson, Farber, and
Holmgren
None
Pat Klaers, City Administrator; Lori Johnson, Finance Director; Steve
Wensman, Planner; Sandra Peine, City Clerk; Dave Sellergren, City
Attorney
Ty Bischoff, County Assessor
Call Meetin.q To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6 p.m. by Mayor Duifsman.
Consider A.qenda
Item 5.2. was moved fo follow Item 5.5.
COUNCILMEMBER FARBER MOVED TO APPROVE THE AGENDA AS AMENDED.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Consider Consent Aqenda
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1a. 11/23/98 REGULAR CITY COUNCIL MINUTES - APPROVED
3.1b. 11/30/98 SPECIAL CITY COUNCIL MINUTES - APPROVED
3.2. CHECK REGISTER - APPROVED
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Request by Dou.q Rin.qold for Ordinance Amendment Re.qardin.q Commercial
Recreational Use, Public Hearin.q Case No. OA 98-6
Planner Steve Wensman stated that Doug Ringold has made an application for
an ordinance amendment to allow commercial recreation as a conditional use
with retail sales as an accessory use for unplatted property in the Il/Light
Industrial zoning district. Steve Wensman reviewed the staff report on this issue.
Mayor Duitsman opened the public hearing.
Doug Ringold, applicant, stated that he is proposing to operate an indoor and
outdoor radio controlled race track at 15536-15546 Cleveland Street. He stated
Elk River City Council Minutes
December 7, 1998
Page 2
that he will be using an existing structure and building pad for this commercial
recreation endeavor.
4.2.
There being no further business, Mayor Duitsman closed the public hearing.
COUNCILMEMBER FARBER MOVED TO ADOPT ORDINANCE 98-28 AMENDING
SECTION 900.10 OF THE CITY CODE OF ORDINANCES, CASE NO. 98-6.
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0-
1. Mayor Duitsman abstained.
Request by Dou.q Rin.qold for Conditional Use Permit, Public Hearin.q Case No. CU
98-27
Planner Steve Wensman indicated that Doug Ringold is requesting a conditional
use permit to operate a radio controlled race track and a hobby shop as an
accessory use in the I1 zone. Steve reviewed the staff memo on this request.
Mayor Duitsman opened the public hearing. There being no one for or against
the matter, Mayor Duitsman closed the public hearing.
COUNCILMEMBER FARBER MOVED TO APPROVE A CONDITIONAL USE PERMIT
REQUESTED BY DOUG RINGOLD TO OPERATE A RADIO CONTROLLED RACE TRACK
AND A HOBBY SHOP AS AN ACCESSORY USE IN THE I1 ZONE WITH THE FOLLOWING
CONDITIONS:
THE USES OF THE BUILDING AND ANY MODIFICATIONS CONFORM WITH ALL
BUILDING AND FIRE CODES.
SCREENING BE PROVIDED FROM CLEVELAND STREET AND THE ADJACENT
RESIDENTIAL ZONE AS DIRECTED BY PLANNING STAFF.
3. THE SITE BE LANDSCAPED AS DIRECTED BY PLANNING STAFF.
THE PARKING AREAS BE RESURFACED AND STRIPED AS PER ELK RIVER ZONING
ORDINANCE.
THE EASTERN-MOST ENTRANCE BE PAVED.
THE SITE BE ILLUMINATED ACCORDING TO THE ELK RIVER ZONING
ORDINANCE.
o
NEW SIGNAGE CONFORM TO THE ELK RIVER SIGN ORDINANCE AND
REQUIRED SIGN PERMIT.
THE OUTSIDE RECREATION USE BE LIMITED TO THE HOURS BETWEEN 9AM TO
9PM.
ANY OUTDOOR SOUND SYSTEM CONFORM TO THE NOISE NUISANCE
ORDINANCE (SECTION E,00.12)
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Elk River City Council Minutes
December 7, 1998
Page 3
5.1.
Review Residency Issue Relating to City Boards and Commissions
City Clerk Sandra Peine indicated that the City Council recently received a
petition requesting that only Elk River residents be allowed to serve on any board
or commission of the city. The Ci~ Clerk provided research on this issue as
requested by the City Council. She reviewed the residency requirements for the
boards and commissions of the city.
Cecilia Scheel stated that she does not believe non-residents of the city of Elk
River should be allowed to serve on boards and commissions of the city because
commission and board members make decisions which affect the citizens of Elk
River.
Paul Motin indicated that the commissions and boards which allow non-residents
restrict the number of non-residents to a small percentage of the commission or
board. Paul Motin indicated that the park and recreation commission affects
people outside of the FIk River area as does the utilities commission and library
board. He stated that the city would be limiting itself by not allowing non-
residents of the city to apply for these positions.
John Kuester concurred with Paul Motin. He indicated he is against a residency
requirement for board and commission members.
Chris Halbeck, Elk River High School, indicated he felt that board and commission
members in the city of Elk River should be city residents as they are taking part in
the government process and should have an idea of what Elk River issues entail.
Dale Martin indicated that he concurs with allowing a limited number of non-
residents on boards and commissions.
Mayor Duitsman indicated that the City Council has the right to review and
interview all applicants and therefore did not see the need to limit applications
by placing a residency restriction on boards and commissions.
Councilmember Thompson indicated that he felt boards and commissions that
have the ability to impose fees or to propose a tax levy should require the
members to be residents of the city of Elk River.
Councilmember Farber stated that he concun:ed with Councilmember Thompson
as the issue relates to the park and recreation commission. Councilmember
Farber further stated that he felt it was acceptable for some non-city residents to
be members of the ice arena commission. He stated that the youth hockey
association reaches beyond the city of Elk River and has representatives on the
Ice Arena Commission.
Councilmember Dietz stated he did not feel the Council should be able to pick
and choose which commissions should have a residency requirement. He further
stated that the City Council is the body that makes the final decisions in
increasing fees and levying taxes. Councilmember Dietz indicated that he was
opposed to placing residency requirements on boards and commissions.
Elk River City Council Minutes
December 7, 1998
Page 4
5.3.
5.4.
Councilmember Holmgren gave the background as to how the ordinance was
amended to allow non-resident members on the park and recreation commission.
He stated that this amendment was made ten years ago himself. He indicated
that he is in support of changing the ordinance back to not allowing non-resident
members on the park and recreation commission because the ci~ of Elk River is a
growing city and has capable residents fo serve on the commission.
COUNCILMEMBER THOMPSON MOVED THAT ANY BOARD OR COMMISSION THAT
HAS THE ABILITY TO RECOMMEND OR PROPOSE A TAX LEVY OR FEE INCREASE
ALLOW ONLY RESIDENTS OF THE CITY OF ELK RIVER ON THE BOARD OR COMMISSION.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
Councilmember Farber indicated that he felt the ice arena commission should be
excluded from the motion. Councilmember Thompson indicated that he felt the
restriction should apply to all of the boards and commissions.
THE MOTION FAILED 2-3. Councilmembers Farber and Dietz, and Mayor Duitsman
opposed.
City Planner
City Administrator Pat Klaers reviewed the executive search proposal from The
Brimeyer Group for the city planner position.
COUNCILMEMBER FARBER MOVED TO APPROVE THE HIRING OF THE BRIMEYER
GROUP FOR THE CITY PLANNER EXECUTIVE SEARCH AS OUTLINED IN THE SEARCH
PROPOSAL. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Truth in Taxation Bud.qet Public Hearin.q
City Administrator Pat Klaers indicated that as required by state law, staff would
be presenting the proposed 1999 city budget and tax levy. City Administrator Pat
Klaers reviewed the general fund revenues and the percentage each category
represented in the total budget. He followed up with a review of the general
fund expenditures and provided a break down for each categow. The budget is
proposed at $5,363,450. This is a 9.3 percent or $458,200 increase from the
adopted 1998 budget.
The City Administrator reviewed the supplemental budgets which include library,
surface water management, equipment certificates, equipment reserve, landfill,
and ice arena.
Pat noted that the proposed tax levy for taxes payable in 1999 is $3,629,214. This
is a 11.6 percent or $378,105 increase from the 1998 amount of $3,251,109.
Finance Director Lori Johnson explained how the city's budget will affect property
taxes.
Mayor Duitsman opened the public hearing.
Elk River City Council Minutes
December 7~ 1998
Page 5
Barb Merrick indicated that her taxes have increased by 11 percent from last
year. She objected to the city hiring consultants and economic development
managers and to the increase in her taxes.
Gary Atkinson questioned why his taxes increased so dramatically.
County Assessor Ty Bischoff explained issues relating to the market value and how
the market value affects residential homestead taxes.
Tom Thompson indicated his concern that the property tax information he
received from the county was difficult to understand.
Paul Sawatzke requested the City Council to be prudent in its spending.
There being no further comments from the public, Mayor Duitsman closed the
public hearing.
COUNCILMEMBER FARBER MOVED TO SET THE TAX LEVY AND ADOPT THE 1999
BUDGET ON DECEMBER 21, 1998. COUNCILMEMBER HOLMGREN SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
Mayor Duitsman requested Ty Bischoff to convey to Sherburne County the need
to inform green acres property owners of accruing interest on deferred special
assessments. Mayor Duitsman suggested including a notice on the tax
statements. Ty Bischoff indicated that the county is in the process of reviewing this
request.
5.5. Consider Pay Resolution
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 98-133 ADOPTING THE 1999
PAY PLAN FOR NON-ORGANIZED EMPLOYEES. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.2. Consider Lease Between City and Boys and Girls Club for Property in Lions Park
City Administrator Pat Klaers indicated that the city is proposing to lease land in
the southeast corner of Lions Park to the Boys and Girls Club. City Attorney Dave
Sellergren reviewed the terms of the ground lease agreement.
Boys and Girls Club Director John Fitzgerald indicated that there were three issues
that he wished to discuss with the City Council in regard to the lease agreement.
The first issue relates to the length of term of the lease. The ground lease is set up
for a 30 year lease with two 10 year options. John Fitzgerald requested that the
City Council consider extending the term of the lease to a time period of more
than 50 years. Mr. Fitzgerald suggested a time of 50 years with two 20 year
extensions.
It was the consensus of the Council that the 50 year time period stand as
indicated in the lease agreement.
The second issue relates to the right of first refusal. Mr. Fitzgerald indicated that he
is requesting the right of first refusal only if the city sells the property to a private
Elk River City Council Minutes
December 7, 1998
Page 6
party. It was the consensus of the council that this change be made in the lease
agreement.
Mr. Fitzgerald noted that the third issue relates to conflicting comments on page
15 and Exhibit D. Attorney Dave Sellergren indicated that these conflicting
comments would be corrected.
City Attorney Dave Sellergren noted that the legal description was not included
on the Exhibit. Discussion was held as to what the legal description of the leased
property would entail. Staff and Council supported leasing the smallest amount
of property possible.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE GROUND LEASE AGREEMENT AS
REVIEWED AND SUBJECT TO THE LEGAL DESCRIPTION BEING ACCEPTABLE TO STAFF.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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 8:1 7
p.m.
Respectfully submitted,
Sandra Peine
City Clerk