09-13-2004 CC MIN
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM)
MONDAY, SEPTEMBER 13,2004
Members Present:
Mayor Klinzing, Councilmembers Dietz, Kuester, Tveite, and Morin
Members Absent:
None
Staff Present:
City Administrator Pat Klaers, Finance Director Lori J ohm on, Fire Chief
Bruce West, Street Superintendent Phil Hals, Director of Planning Michele
McPherson, Liquor Store Manager Dave Potvin, Ambulance Coordinator
Steve Dittbenner, and City Clerk Joan Schmidt
1. Call Meeting To Order
Pursuant to clue call and notice thereof, the meeting of the Elk River City Council was called
to order at 6:38 p.m. by Mayor Klinzing.
2. Consider Council Agenda
City Administrator Klaers stated that he had two updates under Open Mike and two other
updates under Staff Updates.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER TVEITE TO APPROVE THE AGENDA AS AMENDED.
MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY
COUNCILEMBER TVEITE TO APPROVE THE FOLLOWING CONSENT
AGENDA (with a correction to Special Meeting Minutes - should be Acting Mayor
Motin instead of Mayor Klinzing):
3.1 8/25/04 Special Meeting Minutes
3.2 Consider Massage Therapist License for Rita Schurman
MOTION CARRIED 5-0.
4. Open Mike
No one appeared for Open Mike.
City Administrator Pat Klaers reminded the Councilmembers of the Special Meeting on
September 16 at 5:00 p.m. to canvass the results of the Primary Election.
City Clerk Schmidt updated the Councilmembers on the duties of an Absentee Ballot Board.
City Council .Minutes
September 13, 2004
Page 2
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5.0 Worksession
5.1 Council Open Forum
City Administrator Pat Klaers stated that in the past the Council wanted to set some rime
limits for agenda items, so this issue is on the agenda for discussion. Councilmember Tveite
suggested not to set rime limits but to be cognizant of the long agenda.
Councilmember Dietz requested to have on the council agenda of September 20, the
reconsideration of the Line Avenue cul-de-sac. This road is the small part of C.R. 13 that
was dealt with when Tyler Street was built. He felt that the road has turned into a shortcut
for people. He would like City Engineer Terry Maurer to give the Council information on
this issue and for the Council to revisit this item with the idea of a cul-de-sac being
constructed. The Councilmembers concurred with this request.
5.2 Revised Layout - River Park
Director of Planning Michele McPherson distributed information received today in regards
to the River Park development on the Miske farm. The units have increased from 585 to
609. The mix of single family to townhomes is 54 percent, opposed to 56 percent of single
family and 44 percent of townhomes, which was in the memo for tonight's meeting.
Staff wished to receive feedback from Council to take back to the developer. Neighbors
have been re-notified that this item will be on the September 20'h meeting agenda.
Dr. Ron Bratlie from the School District stated that he was not included in all of the
meetings and might not have all of the information. Nonetheless, he stated that the
proposed school building would need to be located east/west to facilitate 100 percent
daylight. His second concern was the close proximity of the power highline to this facility's
proposed location. Ms. McPherson explained the approved and proposed developments for
that area of the city.
Mayor Klinzing asked who from the School District had been involved in the discussions.
Ms. McPherson stated that Superintendent Dr. Jensen and School Board Member Hines
have been part of the discussions and meetings with representatives of Orrin Thompson
Homes.
City Administrator Klaers stated that the Planning Commission recommended denial of the
proposal that had been before them and the developers expressed some frustration on how
to proceed. There were two courses of action. One, to do nothing in terms of a PUD and
develop as Rid; and two, to pursue another development option and try to work with the
School District in having the school relocated to this parcel. Staff indicated that if the
school was included it would have a good chance for approval provided that the majority of
the townhomes were located at a major intersection. Staff did not choose the site but noted
that it ties closely to a park, and the city could have a joint agreement with the School
District for maintenance and use of outside facilities. Staff felt the need to keep the
development area under 600 units in order to have a chance for approval.
I\:Is. McPherson stated that the school site is consistent with the direction received from
Superintendent Dr. Jensen and School Board Ivlember I-lines. There were some concerns
and the app~cant was looking at other alternatives in trying to move the school away from
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September 13, 2004
Page 3
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the power lines. The Park Commission would like to acquire additional parkland in that
general vicinity.
A student from the audience inquired as to what type of school would be built in this area.
Mayor Klinzing stated that this would be an elementary school.
Councilmember Dietz stated that he had talked to Darryl Thompson and it was indicated
that he was going to try to get the school to move more to the south to be further away
from the power lines.
Ms. McPherson stated that it is her understanding that Dr. Jensen and ?Vir. Hines were aware
of the proposed school site when they met with Orrin Thompson.
Councilmember Dietz inquired if the school board would have to pay for this land or if it
was free. Ms. McPherson stated that she does not know if the land will be free.
Councilmember Tveite stated that when this plat comes before Council, clear guidance is
necessary from the school in that this is what they are interested in doing. It was suggested
that a letter from Dr. Jensen would be necessary so the Council knows if this land meets
their needs.
Mayor Klinzing stated that she is not interested in having a school located next to a power
line. She stated that the developer could give land somewhere else on this development. If
they are trying to use the school site for higher density then it should be located in a piece of
property better suited for the students. She felt the location of County Road 13 and County
Road 40 would be better.
Councilmember Motin agreed that the school should be more centrally located to avoid
buses coming from many routes. He objects to having townhomes in this development.
Councilmember Tveite stated and it was the consensus of the Council to have this school
site:
. Centrally located;
. Away from the power lines;
. Placement being from east to west; and
. Need a link to the Sunset Ridge area.
Mayor Klinzing stated that she too is not interested in townhomes in this area.
Councilmember Dietz stated that he is not opposed to some townhomes in this area and if
the developer agrees to a school in this area he is open to some concessions.
Councilmembers Tveite and Kuester agreed with this statement. Councilmemher I<uester
expressed that it was difficult to speak to central locations for the school as the region as a
whole needed to be considered.
Councilmember Dietz asked that Dr. Jensen be present at the meeting on September 20 or a
letter from him be submitted.
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September 13, 2004
Page 4
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5.3 Koehler House and Libra", Expansion Update
City Administrator Klaers brought this item to the council for discussion on whether the
City should invest money for repairs and rent out the Koehler House or remove the house
in anticipation of the library expansion. He explained the costs involved. He stated that this
house might not work for Love Elk River to rent because of the expenses per month for
rent and in energy costs.
Mayor Klinzing stated that this house is not energy efficient, everything is very old, and a lot
of water damage has taken place so a lot of repairs would be needed. The house may also
have to be rewired.
Street Superintendent Phil Hals stated that in evaluating the Koehler house, the garage, the
floor areas, and miscellaneous work would cost $10,000 to make this house rentable. He
reported that replacement of the nine windows is not included in the $10,000 cost. He
stated that there is also asbestos in the basement. He stated that this house would be very
difficult to rent out without these repairs.
It was the consensus of the council that spending money to repair this house would be a bad
investment and it should not be rented out.
Mr. Hals stated that there might be a mover interested in buying and moving this house.
Councilmember Dietz agreed that this item should go out for bids for someone to either
move the house or to tear it down. Council concurred.
5.4 Westbound Liquor Store Discussion
Finance Director Lori Johnson distributed the Northbound Liquor Store profit and loss
history and end of Year 2004 estimates, the Westbound Liquor Store profit and loss
analysis, and 2004 Westbound assumptions used for analyses and general comments.
Liquor Store Manager Dave Potvin explained that his resource for the analysis was Jeff
Wrede from Tushie Montgomery Architects. (Tushie Montgomery was the architect on
Northbound.) He stated that he was given a figure of about $175 per square foot for a
"turnkey" structure and based on a 10,000 square foot store it will cost $1,927,500 to build.
The current store is 13,000 square feet including the basement.
Ms. Johnson explained that the Westbound calculations are all estimates with future year
estimates based on the first year estimate. These calculations assume a Westbound bond
issue of $1,100,000 payable in ten years. She explained that the scenario provided had a
realistic number of $1,800,000 in sales.
Liquor Store Manager Dave Potvin stated that there is competition coming so it would help
us to get Westbound opened first and it would be nice to get the visibility of a comer lot.
The Dakota Study showed that this lot was in a good location. There is the possibility of a
liquor store in Otsego, which could affect Northbound.
Councilmember Dietz inquired on the interest rate of 60/0. Ms. Johnson stated that this is an
estimate and that the actual rate should be lower depending on the market at the time and
whether the local banks are interested in underwriting the bond.
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September 13, 2004
Page 5
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Councilmember Dietz felt tbat we should move forward and ask tbe architect that did the
last store for a quotation for services.
Councilmember Morin agreed and felt we need to move ahead.
Councilmember Tveite stated tbat we need to look at tbe comer lot and see if land swap is a
possibility.
Councilmember Kuester started tbat whenever you start any new business there will be a
loss and feels we need to go forward.
Mayor Klinzing stated tbat she is not in favor of a second liquor store and tbat she feels tbe
City should not be in the liquor store business. She questioned the location. She stated that
perhaps this store should be located downtown. She stated that she would not vote in favor
of this proposal.
MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY
COUNCILMEMBER MOTIN TO GET A QUOTE FROM TUSHIE-
MONTGOMERY AND TO MOVE FORWARD WITH THE CONSTRUCTION
OF A SECOND LIQUOR STORE. MOTION CARRIED 4-1 (Klinzing opposed).
It was the consensus of tbe Council to contact Mr. Hartman about the comer lot being
available.
5.5 Consider Tax Lew Resolutions and Discuss 2005 Budget
City Administrator Klaers gave an overview of the staff report explaining tbat the Council
had decided on September 7,2004, tbat tbere should be no city tax rate increase for next
year. It was also noted that cuts in expenditures in the amount of $112,500 would be made
from the draft budget tbat was presented on August 23, 2004.
He stated that tbe City Council on September 7,2004 also decided tbat it would levy the
maximum available provided tbat no city tax rate increase takes place. The council decided
tbat available funds, based on a 16.1 % increase in the city net tax capacity, would be used
mainly for staff additions. Staff additions for 2005 include seven full-time and two part-time
positions. It was also decided if possible, to move some equipment items into the general
fund. The tax levy amount becomes $7,623,985.00 and tbe general fund budget is
$9,281,915.00.
Mayor Klinzing stated that she feels it is very important not to have a tax rate increase. She
feels that the comparisons with other surrounding cities and metro cities indicated that we
are in a good position.
Ms. Johnson stated tbat tbe net tax capacity provided from Sherburne County is an estimate.
This estimate was used to determine tbe amount of levy possible witbout increasing tbe tax
rate. Ms. Johnson informed the Council tbat tbe final net tax capacity usually changes
slightly and tbat tbe tax rate would change accordingly.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-71 AUTHORIZING
THE PROPOSED PROPERTY TAX LEVY FOR COLLECTION IN 2005.
MOTION CARRIED 5-0.
City Council Minutes
September 13, 2004
Page 6
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MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 04-72 APPROVING
THE 2005 TAX LEVY FOR ECONOMIC DEVELOPMENT PURPOSES FOR
THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY. MOTION
CARRIED 5-0.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER KUESTER TO ADOPT RESOLUTION 04-73 APPROVING
THE HOUSING AND REDEVELOPMENT AUTHORITY 2005 TAX LEVY.
MOTION CARRIED 5-0.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER KUESTER TO SET DECEMBER 6,2004 AT 6:30 P.M. AS
THE DATE AND TIME FOR THE TRUTH-IN-TAXATION PUBLIC
HEARING ON THE TAX LEVY AND BUDGET WITH A CONTINUATION
TIME AND DATE OF 6:30 P.M. ON DECEMBER 13,2004. MOTION CARRIED
5-0.
The Mayor thanked Finance DiIector J ohmon and City Administrator Klaers for theiI hard
work in putting together the budget.
5.6 Review October 11 Board/Commission Toint Meetin~ with Cit;)' Council
City Administrator Klaers stated that during the Brimeyer worksessions one concern
identified was good two-way communication between the Council and the
Boards/Commissions on a city vision and goals. Steps taken by the City Council for better
communication have been to appoint Council Liaisons to city boards/ commissions and to
hold an annual joint meeting to discuss city goals and action steps that are necessary to
achieve these goals. This joint meeting has been set for October 11, 2004 at 6:30 p.m. at
Lions Park Center.
Mr. Klaers stated that staff liaisons to the city boards/ commissions have met and theiI
thoughts for this meeting include the Mayor opening with comments about what has led up
to the calling of this joint meeting and what the City Council would like to see accomplished
at this joint meeting. Following these opening statements, each Chair would introduce thill
members and three or so of the top goals of the board/commission would then be shared
with the entire group. After all of the goals are presented, then Council feedback on
whether or not these goals are consistent and on track with their goals is needed.
Councilmember Kuester inquiIed as to "how the Council felt, how do we see the advocacy
position with these commissions?" She stated that if this came up at the meeting, she didn't
know how the others felt.
Councilmember Motin stated that the problem with the HPC (Heritage Preservation
Commission) was they would state their position, advocate it, council would state their
direction, and then they would come from other directions, from the outside, and basically
advocate again.
Councilmember Motin stated that the members can have theiI positions but it seemed that
some members used theiI role on the HPC in getting the information and then trying to put
roadblocks in the way.
City Council !vfinutes
September 13, 2004
Page 7
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Mayor Klinzing feels that we need to talk about what is appropriate conduct. The
commissions/boards can give the Council their recommendation, council can listen to their
recommendation but then council may go in different directions. She felt that once they
agreed to be on a commission, that is their avenue of input. They should put all their focus
to that avenue of input. She stated that she is not sure that all the commission/board
members agree. She also stated that she has struggled 'With what criteria to use for the
Council to reappoint members and this may be something for the Council to look at.
Councilmember Kuester stated that she has heard grumbling from members that the
Council doesn't like what they do or doesn't agree with the commissions.
It was the consensus of the Council that having liaisons would help this situation.
Councilmember Dietz stated that they can advocate but when they come to the Council,
then the Council has to make a decision, and then they have to live with that decision. They
can't keep going down a separate path. They have to understand that the Council makes the
final decision.
Councilmember Motin stated that he hoped the commission members who did not agree
'With Council would not want to resign and that he hoped they did not get on a commission
for one issue. He stated that he felt the group is broader focused.
Councilmember Tveite felt that a meeting of the whole is important. He stated that the
Council could communicate to the commissions/boards what the council views as
important. The example of the Parks and Recreation Commission coming up with a
recommendation that is contrary to the comprehensive plan and if that is what the Parks
and Recreation Commission views is best for the parks, that is exactly what they should do,
they should be an advocate for what they view is best for parks and recreations. But, then
they should not be surprised if the Council does not go along with a recommendation that is
contrary to the comprehensive plan. He stated that the Council has to look at what is the
greatest good for Elk River, not specifically for parks and recreation.
He stated that this communication should help the commissioners feel that the Council
members are not trivializing what they are doing but to understand that the Council is
valuing what they are doing. However, they should not be surprised if the Council doesn't
always agree with them.
Mayor Klinzing stated that the commissioners should not be directing developers as to what
they are to do. They should be reacting to what is presented to them and giving the council
recommendations.
Councilmember Motin stated there could be problems with the planning commission stating
one thing and the park and recreation commission stating something else with the developer
making modifications from what they are being told by the commissions.
City Administrator I<laers stated that the council might wish to state that they want the
commissions to make recommendations that are clear and consistent with the vision of the
Council. He stated that he felt some commissions are looking for direction from the
Council on what is the city's vision and goals.
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September 13, 2004
Page 8
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Councilmember Dietz stated that he felt dle liaison position will be very important and can
offer some immediate feedback to the commissions.
The Council felt ilie criteria set by staff for the joint meering was good.
Councilmember Morin inquired as to what commissions were included. :tvIr. Klaers stated
iliat staff included all of the groups (eight) that the council appoints.
Councilmember Kuester felt there might be value in having this opportunity for the
commissioners to ask each other questions. Councilmember Tveite stated that some groups
are looking forward to having the interaction with each other.
5.7 Elk River Ambulance Discussion
Fire Chief Bruce West provided an overview of the relationship between ilie City/Elk River
Fire Department and ilie ambulance service and introduced Ambulance Coordinator Steve
Dittbenner.
Steve Dittbenner stated that expansion of ilie ambulance service has been a major topic of
discussion over ilie last year and more so since the Fourili of July celebration. (At ilie July
4th event, there was at least one very public incident that, to many, showed the need for a
second ambulance in ilie city.) Mr. Dittbenner indicated iliat ilie Ambulance Board will be
approving a plan of action to address service needs in ilie Elk River area and iliat this plan
will be activated by spni1g of 2005. It was noted that in addition to various scenarios for
adding a second ambulance, iliat one of the oilier options is to take no action regarding
adding a second ambulance. Steve reviewed three scenarios for adding a second truck as
outlined in his August 3, 2004 memo with the City Council. It was noted iliat initially the
second ambulance is proposed to be located at the fIre station at Jackson Avenue. The
statistics in ilie August 3, 2004 memo were reviewed by Steve as it relates to ilie number of
times when a second ambulance was needed and the cost/benefit of having a second
ambulance. Staff concerns regarding a second ambulance were reviewed and the distinction
between BLS and ALS was outlined.
It was noted that a follow-up report will be provided to the City Council in late November
or early December 2004. The City Council ilianked Mr. Dittbenner for ilie information and
his presentation.
6. Other Business
There was no Other Business.
7. Staff Updates
In response to a question from ilie Mayor at ilie EDA meering, the City AdministIator
noted that ilie GRE peaking plan proposal is still alive and being considered and discussed
at ilie county level. A recommendation on this proposed plant is expected in ilie next few
months.
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City Council1.1inutes
September 13, 2004
Page 9
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The City Administrator updated the Council on discussions that are taking place with Mr.
Dickerson regarding the city leasing land with an option to buy for the city composting
program. This site is directly north of the city street garage.
8. Adjournment
There being no further business, Mayor Klinzing adjourned the meering of the Elk River
City Council at 8:50 p.m.
c;pJ >>z.~
,.'
Joan Schmidt
City Clerk