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11-08-2004 CC MIN MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) MONDAY, NOVEMBER 8,2004 Members Present: Acring Mayor Morin, Councilmembers Dietz, Kuester, and Tveite Members Absent: Mayor Klinzing Staff Present: City Administrator Pat Klaers, Finance Director Lori Johnson, Payroll Clerk Lauren Wipper, Director of Planning Michele McPherson, Director of Economic Development Catherine Mehelich, and City Clerk Joan Schmidt Others Present: Paul Bockenstedt and Liz Gould, Bonestroo & Associates 1. Call Meeting- To Order Pursuant to due call and notice thereof, the meering of the Elk River City Council was called to order at 6:35 p.m. by Acring Mayor Morin. 2. Consider Council Agenda .- Added to the Consent Agenda as Item 3.3 was acceptance of resignation of Joseph Wokson. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 4-0. 3. Consider Consent Ag-enda MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILEMBER KUESTER TO APPROVE THE FOLLOWING CONSENT AGENDA: 3.1 Acknowledge Wal-Mart Stores Currency Exchange License 3.2 Accept Resignation of Recreation Assistant Kathy LeGare 3.3 Accept Resignation of Wastewater Operator Joseph Wokson. MOTION CARRIED 4-0. 4.0 Worksession 4.1 Health Insurance Renewal Finance Director Lori Johnson distributed and reviewed information obtained from Medica and Blue Cross/Blue Shield regarding health insurance renewals. She stated that Health Partners also had been contacted. She explained that the city has been with Medica since January 2004 and have proposed an increase of 30% or 15% if a $500 deductible is the only plan offered. She assessed the calculations on an assumption of a $15 pet month employee City Council ~finutes November 8, 2004 Page 2 ----------------------------- benefit increase by the council. which is consistent with the budget and union contract. She stated that meetings have been held today with all employee groups. She stated that the two things evaluated were that employees would not have to change their doctor and premium differences. She 'explained that Blue Cross/Blue Shield's premiums would have an annual savings over the amounts paid in 2004 for employees for family coverage of $3,000; for single coverage of $900. She explained that this plan would be through Central Minnesota Service Co-op, which serves ciries, school districts and other government agencies. She stated that the Utilities also has their coverage through this co-op. Councilmember Dietz inquired if the Utilities could go with our group. Ms. Johnson stated that they could but that they have a different structure. The Council agreed that the Blue Cross/Blue Shield proposal was the best option available. It was the consensus of the Council to enter into a contract with Blue Cross/Blue Shield unless there are renewal or other concerns that the Finance Director may have after meeting with them in the near future. This item will be placed on the November 15 Council Agenda for formal action. 4.2 .Joint Meeting- with EDA to Discuss Industrial Development President Gongoll called the EDA ~eering to order at 6:48 p.m. Members also present were Larry Koenig and Pat Dwyer. Executive Director Catherine Mehelich explained that in the past the EDA has directed staff to work with the private landowners before considering development of city-owned sites. Over the past 6 months staff has received a number of inquires for the City-owned Cargill land and the EDA-owned Brown land. Staff has worked with Ehlers & Associates to analyze the cost barrier and has met with private owners. A draft agreement for joint markering and development was provided to landowners in July and to date staff has not received any comments from the landowners regarding this draft agreement. The strategy is to put all land in the city on a level playing field and yet be competitive with the market. Recently the EDA Markering Committee recommended that the EDA consider opening a phase of its property for industrial development. Ms. Mehelich explained that the Cargill property could have the first two lots developed but that the remainder is not available for development until late 2005. If the YMCA should develop on the Brown property, they may need 10 acres, which may include lots 17, 18, 1, and 2 on the concept design. She explained how other cities have funded infrastructure improvements: City of Ramsey with excess revenues from an older TIF District (Elk River doesn't have any), City of Big Lake with Tax Increment Bond with the city reimbursing itself, or City of Monticello where the EDA levied $I million, purchased the first part of the property with that money, makes payments from the levy and writes down from $3 to $1 per square foot. She stated that the MN Department of Economic Development has grant money available for cities to open Industrial Parks and is accepting applications on an open basis. She stated that the manufacturers are price sensitive and wish to put as little cash down as possible. Tbe estimated cost to develop an industrial park on the Brown property owned by City Council.l\finutes November 8, 2004 Page 3 ----------------------------- the EDA would be $1,205,600, not including price of land. This is with 45 developable acres. To develop a Phase 1 area with approximately seven lots would cost $500,000 to $600,000. She is inquiring from the EDA and Council if it is time for the city to get into this business and wishes approval to proceed. The following comments were expressed: . Would like to see more activity; . Potential projects should be made available; . Should encourage Brown property to develop; . Been waiting for other projects/areas to take off - it's rime for the City to move ahead; . The developers aren't filling the needs; . Would like to move forward first with Cargill land because the City is lacking light industrial land; . Some current industrial businesses are land locked. It was the consensus of the EDA and Council to have staff move forward in developing a strategy. The EDA meeting adjourned at 7:35 p.m. 4.3 Overview of Greater MN Housing- Fund Growth Corridor Initiative Conference and Consider Pre-Application Submittal for Initiative ProgJ'am Director of Planning Michele McPherson explained that at the November HRA meeting, the HRA had discussed the Greater Minnesota Housing Fund's (GMHF) Growth Corridor Initiative program and whether or not the HR!\. should consider submitting a Pre- Application for the program. It was the HRA consensus that the City Council should consider the submittal. The program will respond to issues affecting high-growth communities located at the edge of the seven-county metro area. Four elements to the program include: coordinated planning; land use; housing; and community participation and local control. She explained that a city received up to $50,000 for technical assistance. She explained that this program won't initially help the city buy land but this program could lead to grant money that could be used for this purpose. The money obtained from this program would be geared toward technical assistance in looking at new development or new redevelopment. Councilrnember Tveite felt that it was not worth the staffs time to fill out the application. He stated that we have staff talented enough to research these issues and can do these items on our own. The rest of the Council concurred. Acting Mayor Motin called for a recess at 7:56 p.m. The meeting reconvened at 8:01 p.m. 4.4 Discussion on Natural Resource Invento:cy Reports/Project Director of Planning Michele McPherson introduced Paul Bockenstedt and Liza Gould from Bonestroo & Associates who prepared the Natural Resources Inventory Draft Report. !v1r. Brokenstedt and Ms. Gould provided an overview of the report contents and reviewed the recommendations. City Council Minutes November 8, 2004 Page 4 ----------------------------- Councilmember Dietz inquired as to the proper way to implement this report. Mr. Bockenstedt stated that the Park and Recreation Commission could review the recommendations and bring them to the Council. Acting Mayor Motin inquired if there was a plan for creating more green space. Mr. Bockenstedt stated that this is an opportunity to protect natural areas and an opportunity to do reconstruction of natural areas. He stated it is best to bring the development community on board early, if they are involved in the planning process, it is easier to get buy-in and support. Ms. McPherson stated that the Planning Commission wishes to have this information incorporated into staff reports. She stated that staff would share this information with developers. 4.5 Council Open Forum Councilmember Dietz stated that at the recent Library Board meeting, members were surprised at the expenses involved in the leasing and maintenance of the Bailey property. He stated that the Board would like to be in attendance at the meeting when the Love Elk River agreement is discussed and they wish to be included in the process. 5. Other Bn~ine~s There was no Other Business. 6. Staff Updates There were no Staff Updates. 7. Adjournment There being no further business, Acting Mayor Motin adjourned the meeting of the Elk River City Council at 8:56 p.m. ~'m..~ Joan Schmidt City Clerk