06-07-2004 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 7, 2004
Members Present:
Members Absent:
Staff Present:
Mayor Ia-dinzing, Councilmembers Dietz, Kuester, Tveite, and Motin
None
City Administrator Pat I~daers, Finance Director Lori Johnson, City Engineer
Terry Maurer, Director of Planning IV[ichele McPherson, City Attorney Peter
Beck, Fire Chief Bruce West, Police Chief Jeffrey Beahen, Building and
Environmental Administrator Steven Rohlf, and Recording Secretary Jessica
Miller
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to
order at 6:30 p.m. by Mayor IYdinzing.
Consider 6/07/04 Agenda
The following items were added to the agenda: · Hiring of Building Inspector after item 5.6.
· Update on EDA Finance Committee under Other Business
· Discussion regarding City Council agendas under Other Business
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER DIETZ TO APPROVE THE AGENDA AS AMENDED.
MOTION CARRIED 5-0.
Consider Consent Agenda
MOVED BY COUNCILM'EMBER TVEITE AND SECONDED BY
COUNCILEMBER MOTIN TO APPROVE THE FOLLOWING CONSENT
AGENDA:
3.1o
3.2.
3.3.
3.4.
3.5.
3.6.A.
3.6.B.
3,7.
05/17/2004 COUNCIL MINUTES
CHECK REGISTER
ORDINANCE 04-08 GRANTING ZONE CHANGE FOR CASE NO.
ZC 04-04
CHANGE ORDERS (WITHDRAWN)
2004 RELEAF GRANT FUNDING
REQUEST BY RAPID SPORT MARINE CENTER FOR GENERAL
PLANNING PERMIT TO ALLOW OUTDOOR BOAT SALES IN THE
COBORN'S PARKING LOT, CASE NO. GP 04-08
REQUEST BY RAPID SPORT CENTER FOR TRANSIENT MERCHANT
LICENSE
TRANSIENT MERCHANT LICENSE FOR KARLIE BLACK, T.A.P.
ENTERPRISES
City Council ~vfinutes
June 7, 2004
3.8.
3.9.
3.10.
3.11.
3.12.A.
3.12.B.
3.13.
3.14.
3.15.
3.16.
Page 2
RENEWAL OF FIREWORKS APPLICATION FOR WAL-MART
RENEWAL OF FIREWORKS APPLICATION FOR HOLIDAY COMPANIES
RESOLUTION 04-42 EXTENDING THE TERM OF THE CABLE
FRANCHISE
RESOLUTION 04-43 DESIGNATING THE MAXIMUM HOUSEHOLD
INCOME LEVEL FOR QUALIFICATION FOR DEFERRAL OF SPECIAL
ASSESSMENTS BASED ON HARDSHIP
ANNUAL RENEWAL OF LIQUOR LICENSES EFFECTIVE FROM JULY 1,
2004 TO JUNE 30, 2005
CONSUMPTION AND DISPLAY PERMIT FOR WAPITI PARK
CAMPGROUND
ACCEPT RESIGNATION FROM AL PUDLICK AND AUTHORIZE THE
ADVERTISEMENT FOR REPLACEMENT
REQUEST BY CITY ADMINISTRATOR FOR ATTENDANCE AT
NATIONAL CONFERENCE
REQUEST BY RIVERS EDGE DOWNTOWN ASSOCIATION TO USE THE
MUNICIPAL UTILITIES BUILDING
HIRE INFORMATION TECHNOLOGY INTERN
5.1.
5.2.
Swearing in of Police Officer Paul Schulte
Ponce Chief Beahen introduced new police officer Paul Schulte. Mayor I~dinzing swore in Mr.
Sct~ulte and his father pinned his badge to his uniform.
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:rbume County Commissioner Engstrom stated that the CARES Commission survey that
; completed named Elk River as an optimal site for placement of a VA outpatient,clinic.
anty Commissioner A_rne Engstrom was in attendance to ask for the City Council s support
~pproving future legislation and funding for the creation of a VA Community Based
tpatient Clinic in Elk River. Commissioner Engstrom indicated that he is traveling to
shington, D.C. and he would like to hand deliver letters of support from the City Council to
tator Coleman, Senator Dayton and Congressman Kennedy.
)VED BY COUNCILMEMBER TVEITE AND SECONDED BY
~UNCILMEMBER KUESTER TO SEND A LETTER TO SENATOR COLEMAN,
NATOR DAYTON, AND CONGRESSMAN KENNEDY SUPPORTING THE
_EATION OF A VA COMMUNITY BASED OUTPATIENT CLINIC IN ELK
VER. MOTION CARRIED 5-0.
Congressman Kennedy was in attendance at the meeting and his letter was given to him.
Wtl-Mart Presentation of Public Safety, Donation
Pete Reiner on behalf of Wal-Mart and the Wal-Mart Foundation, presented Fire Chief Bruce
W~st and Police Chief Jeff Beahen with grant donations of $1,000 each for their respective
det~arp'nents. Mr. Reiner stated that Wal-Mart appreciates the support and response from both
agencies when needed.
Chief West and Chief Beahen thanked Nit. Reiner and Wal-Mart for their tremendous support
of both departments.
City Council lNfinutes
June 7, 2004
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5.4.
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'or Klinzing also expressed her gratitude for Wal-Mart's support in the community.
:ept FEMA Grant from Congressman Mark Kennedy
: Chief Bruce West stated that the Elk River Fire Department received a 2004 Assistance to
:fighters Grant under the category of operations and fzrefighter safety. Mr. West stated that
approved project costs totaled $143,360. The Federal share is 90% or $129,024 of the
,roved amount and the city's share of the costs is 10% or $14,336. Mr. West stated that the
ney will be used to purchase 800 MHz mobile and hand held radios and personal protective
ipment for the 40 f~refighters. Mr. West stated that the new radios will ensure interoperability
amunicafion with our mutual aid partners as Anoka and Hennepin Counties use 800 MHz
iOS.
:h District Congressman Mark Kennedy presented the grant to Chief Bruce West on behalf
he Elk River Fire Department. Congressman Kennedy thanked Chief West and the Elk River
fighters for all their hard work and commended Chief West for his proactive stance in taking
time and effort to apply for grants to ensure that the lute fighters have the proper equipment.
5,or Klinzing thanked Congressman Kennedy for taking the dine to present the award to the
River Fire Department.
zas the Consensus of the City Council to use contingency funds for the city's 10% share of
the Assistance to Firefighters Grant.
20(~4 Biruminous Overlay Improvement - Public Hearing
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Engineer Terry Maurer reviewed the areas being considered for the overlay improvement
ect. Mr. Maurer indicated that four bids were received and the low bidder was Universal
.=rprises, Inc at a total bid of $447,907.50. He stated that this bid was approximately 10
cent below the estimated construction cost presented in the project feasibility study;
refore, staff is recommending a reduction in the proposed assessment rate from $2,175 per
:ssable unit to $1,975 per assessable unit. Mr. Maurer presented the amortization schedule.
Maurer stated that any resident wishing to preserve the fight to appeal the assessment must
,mit written objection to the assessment prior to the close of this public hearing. He indicated
t after the public hearing, the Council will be acting on three resolutions: ordering the
)rovement and preparation of plans and specifications, adopting the final assessment roll, and
trding the bid.
. Maurer suggested that Shem4n and Leora Cohrs be removed from the assessment roll
:ause the lot they are proposed to be assessed for is unbuildable because of the size of the
,petty. Mr. Maurer stated that all properties on the 2004 overlay improvement are proposed
>e assessed one unit with two exceptions: 1) Solid Rock Church owns Block 9 of the original
:ntwood Addition which was originally platted into eight separate lots so it is proposed to be
essed the eight units based on the original plat and 2) Oudot A of Brentwood Additon is
rently being developed as Elk Ridge Addition and it is proposed to be assessed ten units
ed on its total size relative to the total size of Block 9.
M~yor Klinzing opened the public hearing.
/
M~ty Stewart, 205?2 Ulysses Street - questioned how the interest rate and the pay back me
period are figured. Ms. Stewart also stated that heavy construction equipment has been driving
City Council Minutes
June 7, 2004
Page 4
thr )ugh her neighborhood and she believes they did damage and questioned if some of the
ow:flay costs could be recouped from Mn/DOT.
Fin ance Director Lori Johnson explained that the interest rate is figured based on 1.5 percent
plu the bond rate estimate. City Engineer Terry Maurer stated that a number of years to pay
badk the assessment are chosen based on a number that will make the payments reasonable and
tha will not require excessive interest to be paid by the owner. Mr. Maurer also indicated that
the roads in Ms. Stewart's neighborhood have been on the agenda to overlay for a few years and
tha the construction traffic is not the cause of the deterioration.
Pe :er Leinonen, 11120 207th Avenue NW - questioned if the overlay ~vill bring the road back
to he original quality and if the overlay will be relied upon for road strength. Terry Maurer
exr lained that the wear and deterioration occurs from the top down and that any isolated spots
tha may have exceptional wear will be repaired prior to the overlay.
Jill Merchant, 21176 Concord Street - questioned how long each area would be undrivable.
Sh{ also indicated that she doesn't mind paying for the improvements but doesn't want to be
ass :ssed again in a few years when utilities come through.
Mr Maurer stated that the roads are usually drivable the same day they are overlaid. Mr. Maurer
als( stated that Ms. Merchant's neighborhood is far enough outside the urban service district
tha city sewer and water may never be installed and the other minor utilities are able to be
ins' ~lled without digging up the road.
Sta cy Johnson, 20111 Zebulon - indicated that her property is not located within any of the
ad4itions slated for the overlay but received notification of the assessment. Terry Maurer stated
tha~ he has a map and he will review her property location with her after the public hearing.
She'.Jla Deiotte, 19938 Norfolk Avenue - asked if all streets are assessed the same, including
ma n arterial streets. Mr. Maurer stated that collector or arterial streets are not always assessed
the same because of the traffic they are designed to carry. He stated that they are assessed for
cot struction projects but not for routine maintenance. Ms. Deiotte asked if the contractors will
notify property owners when they are going to be in the area. Mr. Maurer stated that the
cot tractor will submit a schedule that will be provided to the property owners and contact
ph(~ne numbers will also be provided. Mr. Maurer noted that the schedule is subject to change.
An :onio Luciano, 19757 Irving Street NW - questioned how the overlay will effect property
ow ~er's driveways. Terry Maurer stated that normally there is no affect on driveways but that if
nee ded, the bid includes the ability to mill in front of the driveways. Nh:. Luciano also questioned
wh handles grievances and complaints regarding this project. Mr. Maurer stated that each
pfc ,erty owner will be provided with a cell phone number to contact or they may always contact
hin city staff, or the Council.
Pa~ Pertl, 19796 Lowell Street - stated that she believes the heavy trucks caused the wear on
the roads. She also questioned who will stand behind the overlay project years from now. Mr.
Ma arer explained that the contractor puts up a bond that guarantees the work for one year,
wit ch is the industry standard, and after that the city will provide maintenance and repair on the
roa :ls.
Le&nne Brown, 19737 Lowell Street - stated that she is not in favor of the assessment. She
q~.'u~stioned if it is common practice to assess the p ptyro er owners for road maintenance as she
thopght that is what property taxes were for. Mr. Maurer stated that it is very common for the
City Council NLinutes
June 7, 2004
5.5.
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petty owners to be assessed for street overlays and some cities even assess for sealcoatmg,
.ch Elk River does not. Ms. Brown also questioned why the current property owner must pay
assessment before the sale of their house. Mr. Maurer stated that it is not a city requirement
the assessment to be paid off prior to the sale of a home, that it may be a financial institution
uirement.
.'re being no further publ/c comment, Mayor Fdinzing closed the public hearing.
)VED BY COUNCILMEMBER TYEITE AND SECONDED BY
~UNCILMEMBER MOTIN TO ADOPT RESOLUTION 04-44 ORDERING THE
PROVEMENT AND PREPARATION OF PLANS AND SPECIFICATIONS IN
[E MATTER OF THE BITUMINOUS OVERLAY IMPROVEMENT OF 2004.
)TION CARRIED 5-0.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
CQUNCILMEMBER KUESTER TO ADOPT RESOLUTION 04-45 ADOPTING
THE FINAL ASSESSMENT ROLL. MOTION CARRIED 5-0.
MI)VED BY COUNCILMEMBER TVEITE AND SECONDED BY
C£ ~UNCILMEMBER KUESTER TO ADOPT RESOLUTION 04-46 ACCEPTING
BIi~ AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF
T}[E BITUMINOUS OVERLAY IMPROVEMENTS OF 2004. MOTION CARRIED
54
Cit/Engineer Terry Maurer informed the Council that staff received a letter from Richard and
Nancy Huss at 11954 196th Circle NW stating that they are unable to attend the meeting but are
no~ in favor of the overlay improvement because they do not feel their streets need any
imI ~rovements. The letter did not state it is an appeal but City Attorney Peter Beck suggested
that the Council treat the letter as an appeal.
MI)VED BY COUNCILMEMBER DIETZ AND SECONDED BY
C£ tUNCILMEMBER MOTIN TO DENY THE APPEAL SUBMITTED BY
RI ZHARD AND NANCY HUSS, 11954 196TM CIRCLE NW, FOR A STREET
07'ERLAY ASSESSMENT ON THE BASIS THAT THE BENEFIT OF THE
IMPROVEMENT EXCEEDS THE COST OF THE ASSESSMENT. MOTION
C3..RRIED 5-0.
Co nsider Hiring of Parks and Recreation Director
City Administrator Pat Kiaers thanked the Parks and Recreation Director Selection Committee
for theft twne. Mr. Klaers stated that the Select. ton Comrmttee s recommendation ts to h~re B
M~ertz with the terms and conditions as outlined in the staff report. Mr. I~aers noted that Mr.
M~ertz will be available to begin work on July 19, 2004 as opposed to July 26, 2004.
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ancilmember Dietz stated that the interview process was interesting and that many good
didates were interviewed but that he believes Mr. Maertz is the best candidate for the
;it/on.
ancilmember Tveite stated that he believes Mr. Maertz will do very well in this position and
he was impressed with the wide range of local and out of state candidates.
City CouncilI Minutes
June 7, 2004
5.6.
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:ks and Recreation Commissioner John Kuester stated that the Parks and Recreation
mmission is excited about having Nix. Maertz begin employment and thanked the City
uncil for acknowledging the need for a Parks and Recreation Director.
)VED BY COUNCILMEMBER DIETZ AND SECONDED BY
)UNCILMEMBER TVEITE TO HIRE BILL MAERTZ AS PARKS AND
!CREATION DIRECTOR BEGINNING JULY 19, 2004 AT STEP D, PAY GRADE
WITH COST OF LIVING AND STEP INCREASES CONSISTENT WITH
:HER EXEMPT EMPLOYEES AND FOR VACATION TO BE EARNED AT A
~TE OF 15 DAYS PER YEAR, MOVING TO 16 DAYS AFTER ONE YEAR AND
tEN MOVING FORWARD ACCORDING TO THE ADOPTED VACATION
HEDULE. MOTION CARRIED 5-0.
Maertz stated that he is very honored to be the first parks and recreation director for the
r of Elk River and he is looking forward to working with staff and assisting the City of Elk
er move forward with their parks and recreation program.
:sentation of Archeology Modeling and Literature Search
· Richard Rothaus of St. Cloud State University provided the Council with an update on the
haeological modeling and literature search as written in the draft report presented to the
uncil. Building and Environmental Administrator SteVen Rohlf stated that once completed,
report will be sent to the State Historic Office and that staff recommends that this report be
de an addendum to the city's Comprehensive Plan and used as a planmng tool.
· Rohlf stated that Elk River is being featured in the State Preservation Conference being held
Ft. Cloud September 23 and 24. Mr. Rohlf asked the Council to let him know if they are
.=resting in attending.
.yor Iadinzing thanked Dr. Rothaus for presenting the report and stated that the Council will
forward to receiving the final report.
:ing of Building Inspector
ildmg and Environmental Administrator Steven Rohlf indicated that the Building Department
planning to recommend the hiring of William Badnar as a building inspector intern but
,ld now like to hire him as a full-time building inspector. Mr. Rohlf stated that Mr. Badnar is
remely qualified and has been offered two full-time positions at other cities. Mr. Rohlf stated
.t an intern was meant to take some of the additional workload for this year and a full-me
pector position was going to be ~:equested for 2005.
DVED BY COUNCILMEMBER TVEITE AND SECONDED BY
)UNCILMEMBER KUESTER TO HIRE WILLIAM BADNAR AS FULL-TIME
JILDING INSPECTOR BEGINNING JUNE 10, 2004 AT PAY GRADE 13, STEP A,
.US MARKET INCREASE PREVIOUSLY APPROVED FOR BUILDING
'SPECTOR POSITION. MOTION CARRIED 5-0.
'. Klaers stated that this position is not in the 2004 budget and so Council Contingency funds
1 need to be used.
City Council[ Minutes
June 7, 2004!
5.7.
Page 7
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;cussion on Woodland Hills Plat
:ector of Planning M, ichele McPherson stated that the following Condition 24 was made in
motion to approve the Woodland Hills Plat and staff is asking for clarification in order to
~finue work with the developer on the plat:
"Require a 150-foot buffer from the trail property line to the house and allow the final
plat to come back with some minor modifications."
Ms:. McPherson stated that it is staff's interpretation that the Council intended that:
a) the 150-foot buffer be measured from the trail property line, not the physical trail;
b) the 150-foot buffer includes no grading and no removal of trees within that 150-
feet; and
c) the 150-foot buffer can end within the yards of the residential lots located adjacent
to the Great Northern Trail, but the trees within them must be protected from
grading and removal.
City Attorney Peter Beck stated that the reason this item is back on the agenda is because staff
interpreted the condition to mean that the 150-foot buffer was from the property 1/ne and the
developer interpreted the 150-feet to be from the trail center line and the Council needs to
clarify the condition.
Steven Yoch, Attorney for S&A, stated that he has reviewed the transcript of this item from
the May 17, 2004 meeting and he believes the condition is still unclear. Mr. Yoch stated that
there is no rational basis for the Council to require the 150-foot buffer from the trail property
line. He stated that his client will lose 11 lots if the city requires this condition. He also stated
that he does not believe that the other developers in the area have had to follow the same
requirements and that his chent is being treated unfairly and the conditions are inconsistent with
staff reports provided to Mr. Breuer. Mr. Yoch stated that the developers request is for 111 lots
with no cutting or grading within 150 feet of the center line of the trail with all lots meeting the
R1C zoning and for the developer to work with staff to meet those limitations to put together a
final plat.
Mayor K2inzing stated that the question being asked tonight is if the Council intended the 150-
feet to be from the physical trail or from the trail property line.
Councilmember Tveite noted that he made the motion approving the plat and that restrictions
are almost always based on the property line and not on the center line and that he thought the
developer and Council were in agreement with this.
Jim Nord, 19645 Hudson Circle and property owner of proposed plat, stated he believes
this entire thing is unprecedented and arbitrary and the City Council should make a decision and
allow the property to be developed.
Mayor Klinzing stated that she had a different understanding of the condition when she voted in
favor of the motion and believes the motion should be reconsidered.
MOVED BY MAYOR KLINZING AND SECONDED BY COUNCILMEMBER
MOTIN TO RECONSIDER THE MOTION MADE ON MAY 17, 2004, APPROVING
THE WOODLAND HILLS PLAT. MOTION CARRIED 4-1. Councilmember Tveite
opposed.
City Council Minutes
June 7, 2004
Page 8
5.8.
MOVED BY MAYOR KLINZING AND SECONDED BY COUNCILMEMBER
MOTIN TO AMEND CONDITION 24 OF THE ORIGINAL MOTION AS
FOLLOWS:
24.
REQUIRE A 150-FOOT BUFFER FROM THE CENTER LINE OF
THE TRAIL AND ALLOW THE FINAL PLAT TO COME BACK
WITH SOME MINOR MODIFICATIONS AND THAT THE 150-
FOOT BUFFER INCLUDES NO GRADING AND NO REMOVAL
OF TREES WITHIN THAT 150-FEET AND THE 150-FOOT
BUFFER CAN END WITHIN THE YARDS OF THE RESIDENTIAL
LOTS LOCATED ADJACENT TO THE GREAT NORTHERN
TRAIL, BUT THE TREES WITHIN THEM MUST BE PROTECTED
FROM GRADING AND REMOVAL.
MOTION FAILED 2-3. Councilmembers Dietz, Kuester, and Tveite opposed.
Councilmember Dietz questioned if the item could be put back on the agenda for the June 21
meeting so information can be put together and the Council will have time to think about the
item. Mr. Beck suggested that a motion be made to table the item until the June 21 meeting.
MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY
COUNCILMEMBER KUESTER TO TABLE THE MAY 17, 2004 MOTION
APPROVING THE PRELIMINARY PLAT OF WOODLAND HILLS UNTIL THE
JUNE 21, 2004 MEETING. MOTION CARRIED 5-0.
Scott Breuer, S&A Family Investments, stated that he first came to the city a year ago to be
proactive and begTM discussions and he has done everything staff and city have asked him to do
and he doesn't understand what continuing this item will do. Mr. Breuer stated that his belief
was that the buffer was 150-feet from the center trail line based on the drawing he was provided
by staff. Mr. Breuer asked that the Council reconsider and make a motion to require the buffer
150-feet from the property line so that the development can proceed.
The Council took a five minute break at 9:05 p.m.
Boys and Girls Club Presentation
Don Heinzman, Lana Huberty, and Duane Howard of the Boys and Girls Club were in
attendance and made a presentation to the Council regarding the current status of the Boys and
Girls Club and to request a city partnership in funding two positions within the Club as
described in the information from the Boys and Girls Club included in the staff report.
Council and staff discussion took place on the Boys and Girls Club request, including the
authority the city has to fund these positions.
MOVED BY MAYOR KLINZING AND SECONDED BY COUNCILMEMBER
TVEITE TO FUND THE TWO POSITIONS AS REQUESTED WITHIN THE BOYS
AND GIRLS CLUB WITH THE UNDERSTANDING THAT IT IS PROGRAMMING
THAT IS BEING FUNDED AND THAT THESE POSITIONS WILL WORK
CLOSELY WITH THE POLICE DEPARTMENT AND WITH CITY RECREATION.
Motion failed due to lack of Council vote.
City Council Minutes Page 9
June 7, 2004
Councilmember Kuester stated that she feels rushed and that she would like to have more time
to discuss the issue and different funding options.
MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY
COUNCILMEMBER MOTIN TO TABLE THE DISCUSSION ON THE FUNDING
REQUEST BY THE BOYS AND GIRLS CLUB UNTIL THE JULY 12, 2004 CITY
COUNCIL WORKSESSION. MOTION CARRIED 5-0.
5.10.
Request by Robert Tousignant, General Manager of Timeout Restaurant, to Discuss 2:00 a.m.
Closing Time
(The City Council discussed this item prior to item 5.9.)
Robert Tousignant, General Manager of Timeout Restaurant, was in attendance to request that
the City Council discuss allowing liquor establishments to remain open until 2 a.m. Mr.
Tousignant stated that St. Michael, Albertville, and Ramsey have all approved the 2 a.m. closing
time and it is causing his establishment to lose business.
City Administrator Pat Iadaers stated that the Council reviewed this issue a year ago and no
action was taken by the Council at that time because no public interest was expressed. Mr.
I~daers indicated that if the City Council wishes to allow the 2 a.m. closing time, the ordinance
would need to be changed and each establishment wishing to remain open until 2 a.m. would
need to apply through the city. He noted that if the ordinance is changed, any establishment in
Elk River would have the choice whether or not they want to remain open until 2 a.m.
Councilmember Dietz asked if Police Chief Beahen has any issues with the 2 a.m. closing. Mr.
Klaers stated that he spoke to Chief Beahen prior to the meeting and his concerns are minor and
they could be addressed if the Council decides to proceed with the ordinance change.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER MOTIN FOR STAFF TO PROCEED WITH THE
ORDINANCE CHANGE TO ALLOW LIQUOR ESTABLISHMENTS IN ELK
RIVER TO REMAIN OPEN UNTIL 2 A.M. AND FOR STAFF TO OBTAIN
COMMENTS FROM POLICE CHIEF BEAHEN. MOTION CARRIED 5-0.
5.9. Presentation and Consideration of Utility Bond Consortium
Finance Director Lori Johnson stated that the Elk River Municipal Utilities is requesting that the
City Council consider joining a joint venture that will allow the Utilities to participate in a bond
pool. Ms. Johnson stated that the Utilities Commission approved becoming a member by a 2-1
vote. Ms. Johnson also stated that City Attorney Peter Beck has reviewed the legalities and has
conf~rmed that there is statutory authority to participate in a consortium for the purpose of
issuing bonds. Ms. Johnson noted that there are several issues to consider when deciding if a
bond pool has any advantage over issuing bonds on your own but the three main factors are
interest rates, term, and timing. The League of Minnesota Cities had a bond pool for equipment
certificates several years ago, but discontinued it because of lack of participation.
Elk River Municipal Utilities General Manager Bryan Adams stated that they believe they can get
lower interest rates by joining the consortium.
Max Richter, of Midwest Consortium of Municipal Utilities, reviewed the risks and liabilities as
well as the benefits of joining a consortium with the Council.
City Council Nhnutes
June 7, 2004
Page 10
Councilmember Tveite questioned the membership costs. Mr. Richter stated that the
membership cost will be between $200-$250 per year plus administrative fees if bonds are
issued.
Mr. Adams indicated that the resolution before the Council only reserves the right for Elk River
Municipal Utilities to become a member and purchase bonds but does not require them to do
either.
Councilmember Dietz stated that he believes it is a bad idea to join the consortium and it has no
advantage for the Utilities. He stated that Elk River Municipal Utilities is doing fine issuing
bonds through the city. Councilmember Dietz stated that he would like to see the consortium
have more members before the Elk River Utilities join.
Councilmember Motin asked Utilities Commission President Jerry Takle for his comments. Nit.
Takle stated that he is in favor of joining the consortium as he feels it may be a more responsive
and timely process than issuing bonds through the city.
Councilmember Motin questioned if there is any risk or liability to the city or Utilities other than
paying the membership fee. City Attorney Peter Beck stated that he has reviewed the Articles of
Inclusion and they are drawn up correctly.
MOVED BY MAYOR KLINZING AND SECONDED BY COUNCILMEMBER
KUESTER TO ADOPT RESOLUTION 04-47 AUTHORIZING ELK RIVER
MUNICIPAL UTILITIES TO BECOME A MEMBER OF MIDWEST
CONSORTIUM OF MUNICIPAL UTILITIES. MOTION CARRIED 3-2.
Councilmembers Dietz and Tveite opposed.
5.11. Approval of Fire Department Pumper Track Bid
Fire Chief Bruce West informed the Council that two bids were received for the Fire
Department pumper. Chief West stated that the Fire Department's Truck Committee has
reviewed the bids to ensure compliance of all specifications and is recommending that the bid be
awarded to the iow bidder, Pierce Manufacturing at $374,975.
Finance Director LoriJohnson reviewed funding options with the Council
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER MOTIN TO ACCEPT THE LOW BID OF $374,975 FROM
PIERCE MANUFACTURING FOR THE PURCHASE OF THE FIRE
DEPARTMENT PUMPER USING FIVE-YEAR EQUIPMENT CERTIFICATES
FOR THE PURCHASE AND TAKING ADVANTAGE OF THE SAVINGS BY
PREPAYING FOR THE CHASSIS AND USING THE ESCROW OPTION AS
OUTLINED IN THE PIERCE MANUFACTURING PROPOSAL FOR THE
BALANCE OF THE PURCHASE. MOTION CARRIED 5-0.
Chief West thanked the Truck Committee for all their time and effort on this project.
5.12. Council Discussion on Annual Reports
City Administrator Pat Fdaers asked the Council for feedback on the Annual Report
presentation.
City Council Minutes
June 7, 2004
Page 11
Mayor Fdinzing stated that the presentation went well, she 1/ked the reception afterwards, and
hasn't heard any negative comments.
Councilmember Dietz stated that he likes the idea of having the presentation during a
worksession so that the meeting can start earlier. He dislikes limiting the time that department
heads have to speak but understands that time limits are tmportant to limit the total length of the
presentation.
Councilrnember Tveite stated that he also liked the presentation and he has no interest in
splitting the department heads up into two nights as he believes it is important for all of the
department heads to be there at the same time.
Councilmember Kuester indicated that she enjoyed the emphasis on the future goals because it
helps her with issues that arise to the Council.
Councilmember Motin indicated that he would like to see the City Council and staff review long-
term goals (5-10 years). He noted that this may be too much for the annual report presentation
but he would like to see this discussed.
5.13. HKA Update - Paul Motin
5.14.
5.15.
Councilmember Motto provided an update on the Housing and Redevelopment Authority
meeting held prior to the Council meeting. Councilmember Motin noted that the July HRA
meeting has been cancelled due to the Fourth of July holiday.
Update on May 11, 2004 City/County (Staff and Elected Officials) En~neering Meeting
Discuss County Road 40 Turnback
City Engineer Terry Maurer presented the minutes from the May 11, 2004 City/County
engineering meeting for Council review.
Mr: Maurer stated discussion took place at the May 11, 2004 meeting regarding the County
trying to increase the size of their County State Aid system by adding CR40 between CR 12 and
CR13 but this was rejected by the state aid engineer as he felt it would be better on the city's
Municipal State Aid system. Mr. Maurer stated that he agreed to bring the issue before the City
Council to get a consensus as to whether the City Council would like to pursue a turnback of
CR40 from the County to the city jurisdiction. Mr. Maurer summarized the positives and
negatives as outlined in his staff report. Mr. Maurer stated that if the Council decides to pursue
the turnback, that discussion on this item would be appropriate between the City and County
Administrators and Engineers.
It was the consensus of the Council for city staff to proceed with discussions with the County
regarding the possible turnback of CR40 to the city.
City Engineer Terry Maurer provided an update on the status of CR44. Mr. Maurer stated that
because of budget cutbacks and the increasing demand of transportation issues, the County
Board will be discussing whether or not to pursue as aggressively in the furore reconstruction of
roads like CR44 or look at alternative means such as mill and overlay or recycling of the surface
as a way to cut costs but maintain a clrivable surface.
City. CouncLl Minutes
June 7, 2004
5.16 Update on Naples/186m Avenue
Page 12
City Engineer Terry Maurer indicated that Miles Knutson came to open mike asking for the City,
Council assistance in paving Naples and 186th. Mr. Maurer has researched the file and reviewed
the city's options with the Council. Mr. Maurer stated that the city does not have all the
easements needed to pave the streets. Mr. Maurer also stated that the city has enough easements
to do a very small part of the project on Naples. The city could let the neighborhood residents
discuss it amongst themselves and come back before the Council when a solution is reached, or
the city could inform the residents that they will not pave the area within the sewer and water
district that has lots without these services and see if any of them are interested in getting city
sewer and water.
Discussion took place and it was the consensus of the Council to allow Mr. Knutson to talk to
the two property owners that did not return their executed easement agreements and see if they
will change their minds and then come back before the Council.
5.17 Discussion on Draft Wastewater Treatment Plant Master Plan
Du~e to time constraints, this item was postponed to the June 14, 2004 worksession.
5.18 Review of 6/14/04 Worksession Agenda
City Administrator Pat I~aers reviewed the tentative agenda for the June 14, 2004 City Council
worksession and asked for Council feedback on this agenda as well as items they wish to be
added to future worksession agendas.
Council feedback listed issues for future worksession agenda items as follows: · Downtown redevelopment
· Transportation related issues as related to the County's transportation plan
Library discussion (activities, funding, and expansion)
· Natural resource inventory (what is the next step)
· Affordable housing
· Board/commission communication (Mr. Fdaers noted that this item will be
discussed at the June 14 or july 12 worksessions)
Councilmember Motin stated that he would like to see time at each meeting set aside ~for an
open forum type discussion that would allow the Council to throw out ideas and voice any
concerns.
6. Other Business
Councilmember Motto reviewed with the Council the discussion that the EDA Finance
Committee has been having regarding eliminating incentives at the West Business Park.
Councilmember Motin stated that the Finance Committee is meeting again on Wednesday, June
9 to continue discussion on this item and asked the Council to let him or Councilmember Tveite
know if they have any strong feelings on this item.
Councilmember Dietz indicated that he would like to see the Administration items moved to
after the Planning items on the third Monday of the month's Council meeting agenda.
City Council ~finutes
June 7, 2004
Page 13
Councilmember Dietz stated that he doesn't think the residents that are there to speak on a
planning item should have to sit through the entire meeting. Councilmember Dietz asked
Dizector of Planning Michele McPherson to put items that staff feels will draw the public in to
the top of the planning item agenda. Ms. McPherson concurred.
Nix, ICdaers noted that the Administration items were originally placed f'lrSt on the agenda so that
the public would have more time to make it to the meeting prior to their item being discussed.
7. Staff Updates
City Administrator Pat IClaers stated that the city received a certificate from the MPCA
recognizing the Wastewater Treatment Facility's compliance efforts.
Mr, IClaers stated that the city received notification that the MPCA has approved the primary
digester improvement project.
8. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City
Council at 11:20 p.m.
Minutes prepared by Jessica Miller.
Joan Schmidt
City Clerk