07-10-2000 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 10, 2000
Members Present:
Mayor Klinzing, Councilmembers Dietz, Thompson, Farber, and
Motin
Members Absent: None
Staff Present:
Pat Klaers, City Administrator; Sandra Peine, City Clerk; Lori
Johnson, Finance Director; Cathy Mehelich, Director of Economic
Development; Marc Nevinski, Assistant Director of Economic
Development; Phil Hals, Street/Park Superintendent; Terry Maurer,
City Engineer; Peter Beck, City Attorney; Bruce West, Fire Chief
1. 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 7:07 p.m. by Mayor Klinzing.
2. Consider Council A.qenda
Finance Director Lori Johnson requested to move Item 6.5. to Item 3.6.
COUNCILMEMBER FARBER MOVED TO APPROVE THE JULY 10, 2000, CITY COUNCIL
AGENDA AS AMENDED. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
3. Consider Consent Agenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1.
3.2.
3.3.
3.4.
3.5.
CHECK REGISTER - APPROVED
6/26/00 CITY COUNCIL MINUTES - APPROVED
CONSIDER PURCHASE OF PORTABLE PUBLIC ADDRESS SYSTEM FROM ALPHA
VIDEO AT $1,638 - APPROVED
REQUEST FROM LIBRARY BOARD TO PURCHASE ITEMS FOR THE LIBRARY IN
THE AMOUNT OF $4,100 FROM THE CAPITAL OUTLAY BUDGET - APPROVED
RESOLUTION 00-49 APPROVING THE USE OF TAX REBATE FINANCING BY R.W.
ENTERPRISES - APPROVED
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3.6. Financial Consultant Presentation by Ehlers and Associates, Inc.
A presentation was made to the council by the financial consulting firm of Ehlers
and Associates, Inc. The council thanked Rusty Fifield and Sid Inman for their
presentation.
Elk River City Council Minutes
July 10, 2000
Page 3
IN THE MAI'rER OF THE MAIN STREET AT TH 169 AND CSAH 13 SIGNAL
IMPROVEMENTS 2000. COUNCILMEMBER THOMPSON SECONDED THE
MOTION. TI-IE MOTION CARRIED 5-0.
Main Street Stripin.q - City Engineer Terry Maurer indicated that as the city
proceeds with the overlay of Main Street between TH 169 and the railroad
tracks to the west, the council should consider potential restriping of Main
Street after the overlay. He explained that Main Street is currently striped
for two lanes of traffic and two parking lanes. He suggested that the
council consider restriping Main Street to eliminate the parking and to
provide more traffic lanes.
Discussion was held by the council regarding whether the road should be
striped for three or four lanes and whether or not parking on the street
should be eliminated.
It was the consensus of the council to eliminate the parking on Main Street
and to authorize the city engineer to bring back striping options for Main
Street for a three lane road.
5. Open Mike
No one appeared for this item.
6.1a. ANC Proposal
Director of Economic Development Marc Nevinski indicated that the EDA has
received a proposal from Opus Northwest in conjunction with Advanced
Nutrifionals Corporation/PouchPac Industries (ANC) to develop the 13.97-acre
Emmerich property in the West Business Park. Marc Nevinski reviewed the
proposed financial package for the project, which includes:
· Refund 100 percent of land costs over a four to five year period (interest
rate to be negotiated)
· $100,000 micro loan at four points below prime
· 20 percent reduction in water rates for a three year period of all water
usage in excess of 2 million gallons per month.
Assistant Director of Economic Development Marc Nevinski noted that the EDA
adopted a resolution requesting the City Council to consider the use of Tax
Increment Financing for the project.
COUNCILMEMBER MOTIN MOVED TO ADOPT RESOLUTION 00-52 CALLING FOR A
PUBLIC HEARING BY THE CITY OF ELK RIVER ON THE PROPOSED ADOPTION OF THE
MODIFICATION TO DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ADOPTION
OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
DISTRICT NO. 21. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
COUNCILMEMBER THOMPSON MOVED TO ADOPT RESOLUTION 00-53 CALLING FOR
A PUBLIC HEARING ON THE PROPOSED ADOPTION OF A BUSINESS ASSISTANCE
Elk River City Council Minutes
July 10, 2OO0
Page 2
4.1.
4.2.
Resolution Approvin.q Plans and Authorizin.q Bid for Western Area Phase IV
Improvements
City Engineer Terry Maurer explained that revisions to the plans and specifications
of the Western Area Phase IV Improvement project have been made. He noted
that a public hearing and assessment hearing for the project has been scheduled
for August 7, 2000.
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 00-50 APPROVING THE
PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS IN THE
MATTER OF THE WESTERN AREA PHASE IV IMPROVEMENT OF 2000. COUNCILMEMBER
FARBER SECONDED THE MOTION.
Mayor Klinzing stated that she would vote against the motion because she
believes that growth in the city should be controlled at this time and this project
will open up more residential land to sewered lots.
THE MOTION CARRIED 4-1. Mayor Klinzing opposed.
Main Street Issues
Consider Construction Bids - City Engineer Terry Maurer reviewed the bids
received for the Main Street project located between County State Aid
Highway 13 and the railroad tracks. He recommended the council award
the bid to the lowest responsible bidder, Hardrives, Inc.
COUNCILMEMBER FARBER MOVED TO AWARD THE BID FOR IMPROVEMENTS
ON MAIN STREET BETWEEN CSAH 13 AND THE RAILROAD TRACKS TO
HARDRIVES, INC., AT $847,023.37 CONTINGENT ON THE FOLLOWING
CONDITIONS:
ELK RIVER MUNICIPAL UTILITIES APPROVE THE WATERMAIN
COMPONENT OF THE PROJECT AND AGREE TO PAY FOR THEIR
SHARE.
THE DEVELOPERS OF ELK RIVER CROSSING PLACE WITH THE CITY AN
AMOUNT EQUAL TO THEIR CONSTRUCTION COST PLUS FIELD
ENGINEERING OVERHEAD AT APPROXIMATELY 10 PERCENT OF THE
TOTAL CONSTRUCTION COST.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-
0.
Consider Resolution Authorizin.q Advertisement for Bids for Si.qnal
Improvements - City Engineer Terry Maurer explained that the locations of
the signals are at T.H. 169 and Main Street and at CSAH 13 and Main
Street. He further noted that the costs are the responsibility of the
developer.
COUNClLMEMBER DIETZ MOVED TO ADOPT RESOLUTION 00-51 APPROVING
PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS
Elk River City Council Minutes
July 10, 2000
Page 4
CRITERIA FOR TAX INCREMENT FINANCING DISTRICT NO. 21. COUNCILMEMBER
MOTION SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.1b. Gary Santwire Proposal
Executive Director Cathy Mehelich indicated that the EDA has received a
proposal from Gary Santwire, Rivers Crossing, Inc. for the development of the EDA
site located at Joplin Street. Cathy noted that the city purchased the 4.36-acre
site from Country Ridge, Inc. in December 1997, with the use of excess TIF funds
from TIF District No. 5 in the amount of $198,750. She stated that following the
transaction, the property was transferred to the Economic Development
Authority. Cathy explained that because the city used excess TIF for purchasing
the property, any sale proceeds would have to be returned to the county for
distribution. She noted that the current fair market value of the property is
estimated at $218,500.
Cathy Meheiich reviewed the development proposal submitted by Gary
Santwire. She explained that the development proposal requests the EDA to
subdivide the lot into two lots with the north lot being sold for $1 to Equity
Management and the south lot being sold for $1 to Dave and Carol Riplinger
(Track of the Wolf, Inc.)
Councilmember Motin expressed his concerns about maximizing the usage of the
site and that the south part of the property had been earmarked for a possible
fire station and questioned whether the city has a good plan for an alternative
location. Fire Chief Bruce West indicated that there are alternative sites for a
second fire station.
Mayor Klinzing indicated she had the same concern as Councilmember Motin
and felt it was important for the city to identify a site for the second fire station.
6,2.
Consider Resolution Approvin.q the Issuance and Sale of Multi-Housin.q Revenue
Bonds
Finance Director Lori Johnson indicated that the council recently approved a
resolution providing for the issuance and sale of bonds to provide $3,600,000 for
several apartment projects in the city. She indicated that a final resolution is
needed to complete the bond issuance for these projects.
COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 00-54 APPROVING THE
ISSUANCE AND SALE OF MULTI-HOUSING REVENUE BONDS 1'O PROVIDE FUNDS FOR
A MULTI-FAMILY HOUSING PROJECT ON BEHALF OF WEST SUBURBAN HOUSING
PARTNERS II LIMITED PARTNERSHIP. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
6.3. Discuss Fire Relief Association Benefit Request and 2000 City Contribution
Rob Dreissig, president of the Elk River Fire Relief Association, indicated that the
Association is requesting an increase in the per year benefit from $3,370 to $3,575
per year of service.
Elk River City Council Minutes Page 5
July 10, 2000
COUNCILMEMBER FARBER MOVED TO INCREASE THE PER YEAR OF SERVICE BENEFIT
FOR THE ELK RIVER FIRE RELIEF ASSOCIATION FOR 2001 TO $3,575. COUNCILMEMBER
THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE BUDGETED RETIREMENT
CONTRIBUTION OF $22,000 TO THE FIRE RELIEF ASSOCIATION FOR 2000.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.4. Fire Inspector/Administrative Assistant
Fire Chief Bruce West indicated that the interview committee for the position of
fire inspector/administrative assistant is recommending that Clifford Anderson be
hired to fill the position at a starting salary of $44,500,
COUNCILMEMBER FARBER MOVED TO HIRE CLIFFORD ANDERSON TO FILL THE
POSITION OF FIRE INSPECTOR/ADMINISTRATIVE ASSISTANT BEGINNING JULY 31,
2000, AT A STARTING SALARY OF $44,500 WITH A MOVE TO $46,000 AFTER
SUCCESSFUL COMPLETION OF A SIX MONTH ORIENTATION PROCESS AND WITH A
POSITION PROFILE TO BE COMPLETED FOR THE POSITION BY JULY 1,2001, AND THE
RESULTS FORWARDED TO THE PERSONNEL COMMITTEE FOR A RECOMMENDATION,
WITH ANY CHANGE IN THE PAY PLAN TO BE RETROACTIVE TO JULY 1,2001.
COUNCILMEMBER MOTIN SECONDED THE MOTION.
Councilmember Dietz indicated that he felt the starting pay for the position is too
high and that the position had been tailored for Cliff.
Councilmember Thompson also indicated he had a concern with the rate of pay.
He further indicated that with a proposed salary of $44,500, the city should be
considering an assistant fire chief position instead of fire inspector/administrative
assistant.
THE MOTION CARRIED 3-2. Councilmembers Dietz and Thompson opposed.
6.6. Personnel Committee Recommendations
Finance Director Lori Johnson indicated that the personnel commi~ee recently
reviewed numerous positions to determine whether position point value and pay
grade changes were appropriate. She indicated that the building and zoning
department positions were also reviewed at this time. Lori Johnson explained that
a recommendation regarding the building and zoning employees would be
forthcoming to the council at a later date.
Lori Johnson reviewed the recommendations made by the personnel committee
for the following positions: building maintenance; mechanic; park foreman;
assistant director of economic development; and wastewater treatment plant
operator.
COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE FOLLOWING POINT VALUE
AND PAY GRADE CHANGES AS RECOMMENDED BY THE PERSONNEL COMMII'rEE:
· BUILDING MAINTENANCE POSITION - NO CHANGE RECOMMENDED
· MECHANIC- NO CHANGE RECOMMENDED
Elk River City Council Minutes
July 10, 2000
Page 6
· PARK FOREMAN - REVISED POINT RANKING 74, PAY GRADE 12
· ASSISTANT DIRECTOR OF ECONOMIC DEVELOPMENT- REVISED POINT
RANKING 86, PAY GRADE 2E
· CHIEF WASTEWATER TREATMENT PLANT OPERATOR - REVISED POINT
RANKING 88, PAY GRADE 3E
COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
City Administrator Pat Klaers noted that associated with the recommendation
from the personnel committee, he is also recommending that some positions
receive an increase in pay. The city administrator made the following
recommendations:
· Assistant Director of Economic Development pay increase $42,110.09 as of
July 1, 2000
· Chief Wastewater Treatment Plant Operator pay increase to $50,793.80 as
of July 1, 2000.
· Director of Economic Development be moved to Pay Grade 4E until the
time spent profile is completed in 2001 (no pay increase associated with
this move).
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE RECOMMENDATIONS
FROM THE CITY ADMINISTRATOR. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
6.7. Transient Merchant Ordinance
City Clerk Sandra Peine indicated that the City Council recently requested to
review the city's existing transient merchant ordinance to determine whether the
council should consider expanding the current regulation of transient merchants.
The city clerk noted that Assistant City Attorney Mark Mathison has prepared a
memo explaining case law on this subject. She further explained that the city's
existing ordinance does regulate transient merchants and others who are doing
business temporarily within the city.
Councilmembers Dietz and Thompson noted their concerns regarding transients
not paying taxes within the city of Elk River and creating a nuisance with door-to-
door selling. The city clerk indicated that the ordinance does allow residents to
prohibit solicitation upon premises they occupy.
Discussion was held regarding whether the existing license fee covers the
administrative costs for processing the application and issuing the license. The
City Council requested staff to review whether the existing license fee is sufficient
to cover the cost of processing the licenses and the cost of enforcement.
6.8. Discuss Number of On-Sale Liquor Licenses
City Clerk Sandra Peine indicated that the council requested staff to research the
possibility of special legislation to increase the number of on-sale liquor licenses
from 12 to 18. The city clerk noted that she spoke with the League of Minnesota
Cities who indicated that this type of special legislation is not uncommon and
indicated that it would more than likely pass if the city has the support of its
Elk River City Council Minutes Page 7
July 10, 20OO
legislators. She explained that she spoke with Senator Ourada who indicated that
he would be willing to sponsor special legislation for additional on-sale licenses if
the request came from the City Council and if there was a commitment from
Representative Bruce Anderson. Representative Anderson indicated that he
would also be willing to consider special legislation, however he wanted some
assurance from local businesses that they were not opposed to this type of
legislation.
The city attorney indicated that this type of legislation would merely be
addressing a disparity in the current law. It was the consensus of the council to
proceed with the necessary steps to request special legislation to increase the
number of liquor licenses for the City of Elk River from 12 to 18. The city clerk
indicated that she would bring a resolution back to the council for its
consideration regarding this issue.
6.9. Recommendation for Employee Advancement
Street/Park Superintendent Phil Hals and Assistant Street Superintendent Mark
Thompson recommended to move three maintenance I employees to
maintenance II, Phil Hals noted that all three employees have been performing
maintenance II duties for several years.
COUNCILMEMBER FARBER MOVED THAT JOE PIPENHAGEN AND CHRIS HOI. ZEM
ADVANCE TO MAINTENANCE II, STEP D, AT $16.74 PER HOUR AND THAT DENNIS
TOTH ADVANCE TO MAINTENANCE II, STEP C, AT $15.40 PER HOUR RETROACTIVE TO
JULY 1,2000. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
8.1. Sherburne County Parade Participation
City Clerk Sandra Peine informed the council that they are invited to participate
in the Sherburne County Parade on July 14, 2000.
8.2. YMCA Update
Mayor Klinzing informed the council that the northwest branch of the YMCA has
been exploring the city's interest in having the organization come to Elk River.
Mayor Klinzing stated that she does not believe that the YMCA will be duplicating
what is presently available in Elk River for youth and family activities. The city
administrator noted that the YMCA will be meeting with the Boys and Girls Club
and Community Recreation and will be requesting city participation in financing
a feasibility study regarding membership and funding for a facility.
8,3. Smith House
The city attorney informed the council that the city has presented a civil lawsuit to
the Smith's attorney to have the property brought into conformance with the
terms and conditions set forth by the council.
Elk River City Council Minutes
July 10, 2000
Page 8
8.4. Babinski House
The city affrorney questioned whether the council was interested in proceeding
with criminal or civil action to abate the nuisance created by the abandoned
Babinski house located on Proctor Avenue, It was the consensus of the City
Council to begin the legal process to have the Babinski house removed.
9. Executive Session
COUNCILMEMBER THOMPSON MOVED TO CALL AN EXECUTIVE SESSION OF THE
CITY COUNCIL TO DISCUSS THE CARGILL ASSESSMENT APPEAL. COUNCILMEMBER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
10. Adiournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk
River City Council at 9:45 p.m.
City Clerk