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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