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08-25-2004 CC MIN - SP-JOINT SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL-UTILITIES CONFERENCE ROOM WEDNESDAY, AUGUST 25, 2004 Members Present: Members Absent: Utilities Commission Members Present: Staff Present: Mayor KImzing (6:33 p.m.), Councilmembers Dietz, Kuester, Tveite, and Motto None President Jerry Takle and Commissioners Tralle (6:25 p.m.), and Dietz City Administrator Pat I~daers, Utilities General Manager Bryan Adams, Line Superintendent Glen Sundeen (6:15 p.m.), Purchasing Clerk Judy McSpadden, Director of Economic Development Catherine Mehelich, Street Superintendent Phil Hals, and City Engineer Terry Maurer Call Meeting To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council was called to order at 6:00 p.m. by Vice Mayor Motin. Worksession-Joint Meeting with the Ci.ty Council and the Utilities Commission Highway 10 Street Lights City Administrator Pat I~aers provided an overview on this issue. The concern is mainly the replacement cost for the Highway 10 street lights and also the timing as to when these lights will need to be replaced. Utilities General Manager Bryan Adams noted that what gets decided with this issue will likely carry over to when other highway street lights need to be replaced. The Mn/DOT agreement on the street lights was reviewed. The "survey of other communities" in the memo from the general manager was also reviewed. The style of lights, the lifespan of the lights, the cost for replacement of the lights, the pole material for the lights, and the possibility of changing the location of the lights were all discussed. Commissioner Tralle arrived. Commissioner/Councilmember Dietz indicated that he thought the local street lights were more of a Utilities issue and that this decision should deal with highway street lights. He stated that if any precedent was being set it should only be for the highway street lights. Vice Mayor Motin stated he thought the highway street lights should be a city responsibility. Councilmember Tveite concurred. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY VICE MAYOR MOTIN THAT THE CITY BE RESPONSIBLE FOR THE City Council Nfinutes Page 2 August 25, 2004 REPLACEMENT OF THE HIGHWAY 10 AND HIGHWAY 169 STREET LIGHTS WHEN NECESSARY. MOTION CARRIED 3-0-1. Councilmember Dietz abstained. 2.2. Utility. Hookup Requirements Utilities General Manager Bryan Adams introduced this topic and indicated his concerns regarding obtaining compliance to city and utility requirements for the hookup to utilities when they are available. Mayor ICdnzing arrived. Commissioner/Councilmember Dietz stated his support for billing homeowners for WAC fees and for a minimum monthly service charge as a means of obtaining funds and encouraging connections. It was noted that this is a more significant issue to the water department than the sewer department for a number of reasons, including the fact that private wells are a major source of water contamination and that sewer hookups are often times required when homes are sold/purchased. Discussion continued regarding how to address the water connection issue for homeowners that had the utility available prior to the ordinance being adopted in 2001. Utilities General Manager Bryan Adams indicated that he would check with the city attorney regarding this issue. The City Council stated its support for changing the city ordinance that would allow for the charging of SAC fees and a minimum monthly sewer bill to homeowners that have not connected to the utility when it was available per the two year requirement. 2.3. Central Business District Project Director of Economic Development Catherine Mehelich reviewed the downtown project and the £mancial concerns regarding SAC and WAC payments. The payback plan was reviewed. The payback of SAC and WAC would take place before the payback for the Jackson Square land. It was noted that this is not a forgiving of SAC and WAC but a delayed payment plan. The City Council and Utilities Commission were made aware of the fact that the amount of assistance to the developers will be based on the analysis of need as a "but for" test. The final development agreement will reflect this analysis. MOVED BY COMMISSIONER TRALLE AND SECONDED BY COMMISSIONER DIETZ TO DEFER PAYMENT OF THE WAC WITH INTEREST CONSISTENT WITH WHAT THE CITY COUNCIL DOES WITH SAC FOR THE DOWNTOWN REDEVELOPMENT PROJECTS. MOTION CARRIED 3-0. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TVEITE TO DEFER PAYMENT OF THE SAC WITH FIVE PERCENT INTEREST FOR THE DOWNTOWN REDEVELOPMENT PROJECT. MOTION CARRIED 5-0. The City Council indicated that it would address the price and value of the Jackson Square · property at a later date. City Council Minutes Page 3 August 25, 2004 The city administrator and city engineer provided an update on the timing of the utilities building removal and the expansion of the downtown parking lot. Council_member Motin left at 7:08 p.m. 2.4. Mechanic Program Street Superintendent Phil Hals provided an update on the status of the mechanic program and the work which the city does for the utilities. Overall both Bryan and Phil believe that the program was going welt but that there needs to be some improvement in the scheduling of work. Discussion took place regarding record keeping of maintenance work being completed on vehicles and equipment and what could be done to make improvements in this regard. Councilmember/Commissioner Dietz requested information regarding the cost to have the city mechanics certified in order to work on the boom trucks, which the utilities operate. 2.5. Water Facilities Utilities General Manager Bryan Adams reviewed plans for future water facilities in both east and west Elk River. Discussion took place regarding the summer lawn watering demands on the water system. Discussion took place regarding the need for another well near City Hal on city property. Bryan Adams responded to a question from Commissioner/Councilmember Dietz regarding providing water services to the area east of County Road 40. It was noted that this is a timing issues and not a capacity issue. 2.6. Shared Operating Expenses The city administrator and utilities general manager briefly updated the Commission and City Council on the sharing of some operating expenses in the new municipal complex. 2.7. Other Discussion Items President Gerry Takle provided an update on the recently attended utilities conference. Topics discussed included: terrorist attacks, contributions to the host communities in lieu of taxes, and the difficulty in locating underground facilities now that the use of plastic pipes has become widespread. 3. Adjournment There being no further business, Mayor Klinzing adjourned the special meeting of the Elk River City Council at approx/mately 8:00 p.m. Pat Klaers City )2drmnistrator