11-22-2004 CC MIN - SPECIAL
SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 22, 2004
Members Present:
Mayor Klinzing, Councilmembers Dietz, I<:'uester, Morin, and Tveite
Members Absent:
None
Staff Present:
City Administrator Pat Klaers, Finance Director Lori Johnson, Director of
Planning Michele McPherson, City Engineer Terry Maurer, Fire Chief
Bruce West, Liquor Store Manager David Potvin, and Recording Secretary
Jessica :rv1il.ler
Also Present:
Planning Commissioners:
Dana Anderson, Pete Lemke, Leo Offerman, Howard Ropp, Brad Stevens,
Kevin Scott, and Matthew Westgaard
1. 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 Klinzing.
2. Request by Roth Development for a Conditional Use Permit to Construct Banking- Facilil;y
(US Banki Elk Ridge Center- Case No. CU 04-30
Director of Planning Michele McPherson stated that the City Council tabled the request by
Roth Development for one week so that the Brent\Vood residents would have more time to
gather their thoughts and provide some solutions to the concerns regarding signage, lighting,
landscaping, and transportation noted in the Brentwood Owners United (BOU) letter dated
November 15, 2004. Ms. McPherson indicated that Jon Hempel of Hempe1 Properties
contacted the property owners and that according to a letter received today, the landscaping
and lighting issues have been resolved.
Antonio Luciano, 19757 Irving Street - complimented Jon Hempel of Hempel Properties
for taking the initiative to contact d1C property owners regarding their concerns and for
replying quickly on the issues. 1vf.r. Luciano reviewed the remaining transportation concerns
that the Brentwood Owners have.
Jon Hempel, Hempel Properties - stated that an agreement has been reached with the
property owners regarding landscaping, signage, and landscaping issues. Mr. Hempel
indicated that he feels that the transportation issues have been properly addressed by the
city.
Mayor Klinzing stated that she appreciates the comments brought forward by the
Brentwood Owners United and that their points were taken into consideration but believes
that the traffic analysis was well done.
The validity.of the traffic study was questioned by the property owners because "fast food
with drive thru window" was used as one of the developments and according to the public
hearing for the PUD, this .use would not be allowed in the development. Ms. McPherson
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November 22, 2004
Page 2
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stated that the traffic study was completed prior to the final PUD approval and fast food
was used as a worse case scenario for traffic generation. She noted that both the PUD
agreement and the development agreement prohibit fast food establishments in this
development. City Engineer Terry Maurer noted that a fast food restaurant generates the
most pm peak traffic. Mr. Maurer stated that if there is no fast food restaurant, then the
traffic impact would be less and therefore, the study is not flawed.
Councilmember Tveite noted that any building that is proposed in the Elk Ridge Center
location will have to come before the City Council for approvaL
Ms. McPherson indicated that the only type of restaurant allowed in a PUD is a Class 1
restaurant which states that food is served to customers to be consumed on the premises
and that take-out is permitted but must be incidental to the use.
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER MOTIN TO APPROVE THE REQUEST FOR A
CONDITIONAL USE PERMIT TO CONSTRUCT A US BANK BUILDING
WITH THE FOLLOWING CONDITIONS:
1. ALL COMMENTS OF THE CITY ENGINEER SHALL BE
ADDRESSED.
2. CONSTRUCTION TRAFFIC SHALL NOT BE ALLOWED TO ACCESS
THE SITE FROM 197TH AVENUE.
3. ONLY ONE SANITARY SEWER SERVICE SHALL BE ALLOWED.
4. IF THERE IS TO BE AN EXPANSION OF EITHER THE BUILDING
OR THE PARKING LOT, THE APPLICANT SHALL APPLY FOR AN
AMENDMENT TO THE CONDITIONAL USE PERMIT.
5. SIGNAGE SHALL BE REQUIRED AT THE ENTRANCE FOR THE
DRIVE-THRU INDICATING THAT IT IS "DRIVE-THRU TRAFFIC
ONLY."
6. THE LANDSCAPE PLAN SHALL BE AMENDED TO ADD SIX
ADDITIONAL TREES ALONG 197TH AVENUE FOR SCREENING
PURPOSES. THE TREES MAY BE EVERGREEN OR DECIDIOUS OR
A COMBINATION THEREOF.
7. SITE, BUILDING, AND SIGN LIGHTING SHALL MEET ALL ELK
RIDGE CENTER DEVELOPMENT DESIGN STANDARDS AND
ORDINANCE REQUIREMENTS. LIGHTING STANDARDS IN THE
PARKING LOT SHALL NOT EXCEED 20-FEET IN HEIGHT.
8. AN INDIVIDUAL MONUMENT SIGN FOR THE TENANT SHALL
NOT BE ALLOWED.
MOTION CARRIED 5-0.
The City Council recessed at 6:58 p.m. into the Upper Town Conference Room. The City Council
reconvened at 7:01 p.m.
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November 22, 2004
Page 3
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3.1. City Council Open Fonlm
The Council had no items to discuss under Open Forum.
3.2. Bovs & Girls Club - Charter School Discussion
Duane Howard, Executive Director of the Boys & Girls Club - stated that a local
community group has decided to start a Charter School with an emphasis on core
knowledge. Mr. Howard stated that the group has approached the Boys and Girls Club to
assist in their need for rental space for the school. The Charter School would use the Club
facility during the school year, beginning in September 2006. The school would operate on
school days only, during regular school hours. Mr. Howard stated that this would be a
positive revenue source for the Boys and Girls Club as well as an opportunity to serve more
youth.
Mayor Klinzing questioned if the School District has been approached with this proposal.
Mr. Howard stated that the Boys and Girls Club wanted to see if the City Council had any
concerns regarding the school first and that the next step will be to contact the School
District.
Councilmember Motin questioned how the set-up of the classrooms will work.
Lana Huberty, Boys and Girls Club Representative, stated that it is very common for Boys
and Girls Clubs to coexist in schools and share the space.
Councilmember Tveite indicated that the concept of the Charter School makes sense and
that it is a creative use of the Boys and Girls Club space.
City Administrator Pat Klaers noted that the Charter School would require a Conditional
Use Permit and would need to be reviewed by staff and Council before approval.
It was the consensus of the City Council for the Boys and Girls Club to proceed with
discussions regarding the Charter School.
3.3. Westbound Liquors
City Administrator Pat Klaers stated that City Attorney Peter Beck and Mr. Hartman's
attorney are working on this paperwork to finalize the Westbound land exchange.
!:vIr. Klaers indicated that after discussing the pros and cons with Liquor Store Manager
Dave Potvin and Finance Director Lori Johnson, it was unanimously agreed to recommend
to the City Council against becoming landlords and building a facility any larger than what
meets the city's immediate needs.
Gary Tushie of Tushie Montgomery Architects (TMA) reviewed details of the building plan
and layout.
Councilmember Morin questioned which direction expansion would take place at if
necessary in the future. Liquor Store Manager Dave Potvin stated that it is not believed that
an expansion to the store will be necessary but if it was, the building would more than likely
be expanded to the north.
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November 22, 2004
Page 4
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Councilmelnber Morin questioned if the store would be visible to those traveling northwest
on Highway 10. City Engineer Terry Maurer stated that the State may allow some of the
scrub trees to be repositioned on the property so visibility would be improved.
Mr. Klaers reviewed the three options available to the City Council for the construction of
Westbound Lquor: construction management (ClY!) approach, general contractor approach,
or to have city staff provide the construction management services. IvIr. I<laers indicated that
he believes either using the CM or the general contractor approach would be best.
Discussion took place on the pros and cons of each of the options.
Councilmember Dietz questioned what the savings would be if the city acted as the CM. Mr.
Klaers stated that the city would save approximately 40/0.
Mayor Klinzing stated that she is in favor of the general contractor approach because they
get to select sub-contractors that they are comfortable working with and who work well with
each other.
Councilmember Dietz questioned if the CM approach is more appealing to the local
contractors. Mr. Tushie stated that it is because local contractors get to bid directly to the
city rather than bidding for multiple general contractors.
Councilmember Tveite indicated that he is in favor of a CM because they act as an advocate
for the city. He stated that building Northbound Liquor was a positive experience and since
the same construction manager is available to work on the \Vestbound project, he believes
that would be the best option for the city.
MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY
COUNCILMEMBER TVEITE TO HIRE GREYSTONE CONSTRUCTION
COMPANY AS CONSTRUCTION MANAGERS FOR THE WESTBOUND
LIQUOR STORE PROJECT PER THE GREYSTONE PROPOSAL. MOTION
CARRIED 4-1. Mayor Klinzing opposed.
Mr. Tushie stated that due to the building market condition, he would like to move the
project forward quickly so that the city can go out for bids as soon as possible. The city
administrator noted that the project will be going through some city approvals (i.e. CUP) at
the same time that. the project is out for bid. The finance director noted that the fmancing
plan needs to be approved in the next few months (and before the project begins).
3.4. Discuss Transportation Plan Implementation
City Engineer Terry 1'vlaurer provided an overview of the four items relating to
transportation that the Council may want to discuss. They include: implementation of the
Comprehensive Transportation Plan, MN/DOT TH169 Enviwnmental and Geometric
study, County Road 40 turnback and the Sherburne County cost participation policy.
Mr. Maurer reviewed the three items needed to be discussed regarding the Transportation
Plan implementation. They include: philosophy of implementation, corridor studies and
improvements, and identifying within the northern 1/3 of the city access points and working
with the county to identify existing, temporary and new access points in concert with the
county's access management policy.
Special City Councill'v1i.nutes
November 22, 2004
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Mayor Klinzing stated that the last item focuses on the need to meld the county access
policy with the City of Elk River's needs for access points for developable parcels within the
city.
Councilmember Motin asked if the county has bought into the city's Comprehensive
Transportation Plan. Councilmember Tveite stated a joint meeting between the City Council
and County Board should be scheduled to review the Transportation Plan and the concept
plan for access points north of CR 33.
Councihnember Kuester indicated that the city should be more proactive in its
transportation planning. The county's change in financing transportation projects will
require city projects to be on the "needs list" sooner as they will compete with other county
projects.
City Administrator Pat l<Jaers indicated that besides taking a proactive approach in the
transportation corridor studies with the county, there is the proacriveapproach to
establishing and building city street corridors that may require the use of condemnation.
Mayor Klinzing stated that condemnation may be too proactive. Councilmember Motin
stated that the 193" and School Street extensions to Tyler Street need to be made.
Mayor I<Jinzing stated that the Transportation Plan is too broad and that the next level of
srudy needs to occur. Once the priorities are defined, then the city can go to the county for
funding sources and scheduling.
Councilmember Dietz asked about the 1997 Transportation Plan. City Engineer Terry
Maurer stated that ille 1997 Plan, which identified corridors to move people around the city,
did not really address the deficiency issues noted in the current plan.
Councilinember Dietz stated that all the corridors noted needed county participation and
questioned which one the city should tackle first. Mr. Maurer stated that the city should be
continually conversing with the county on its transportation needs. He explained the
continuum of options the Council can consider from access management, to corridor
mapping, to actual road construction.
Mayor Klinzing noted the presence of the Planning Commission and asked if they had any
input. Director of Planning Michele McPherson distributed the Planning Commission's list
of priorities. Planning Commissioner Lemke provided information regarding Anoka
County's developer requirements relating to transportation infrastructure.
Mr. Maurer reviewed the County Road 40 discussions that have been occurring with staff
and the subcommittee of policy makers. He reviewed the cost estimate breakdown by city
and county portions. There was some discussion relating to acquisition of right-of-way on
the part of the city and whether or not the estimated four acres included land dedicated by
developers. ]I;[r. Maurer indicated that the four acres of land is outside of existing right-of-
way and land that would be dedicated as part of a current development project.
The Council concurred that the turnhack of County Road 40 should be pursued based on
the Engineer's estimate and cost breakdown between the city, county, and Federal
government.
City Engineer Terry Maurer asked that the Council reaffirm their position supporting
MN/DOT taking the next step for the Highway 169 srudy. He noted that there are no
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November 22, 2004
Page 6
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monies in MN/DOT's 2s-year plan to complete any of the potential improvements that
would be identified as part of the study; however, if monies were available these projects
would be ready to implement. In addition, the study would allow the city to plan for right-
of-way acquisition. Mr. Maurer indicated that right-of-way can be used to offset the city's
share of tvIN lOOT improvements in the future. The downside to completing the study
would be the creation of a state of limbo for those living or owning businesses within the
potential right-of-way acquisition areas. Councilmember Motin stated that the city should
move forward with its support of the MN/DOT next level of study. The Council
concurred.
Mayor Klinzing stated that she was interested in having the Planning Commission explain its
transportation priorities. Commissioners Stevens, Offerman, and Anderson provided
explanations regarding some of the items noted in the priority list. Specifically, the resolving
of jurisdictional issues, establishment of ring roads, extending School Street west to
1vfeadowvale Road, and identifying additional corridors north and south to eliminate
congestion on TH 169 by local traffic.
Commissioner Anderson stated that he disagreed with the interchange at TH 169 and Main
Street concept as he felt that School Street would be a better location. Commissioner
Anderson stated that TH 169 is the backbone of the city's transportation system and that
the Council needs to identify connections to that backbone which would best serve the city
and would encourage commerce and business. Mayor Klinzing stated that the Planning
Commission is encouraging the Council to look at improving the system in a different way,
especially regarding funding opportunities. She stated that the tendency of the Council has
been to take large problems and move them to another jurisdiction (NIN/DOT or the
county) due to lack of funding. The Council needs to think creatively in order to resolve
some of the city's transportation issues.
The Council reviewed the information provided by the City Engineer regarding other
counties' cost participation policies.
3.5. 2005 Budget Update
City Administrator Pat l<Jaers briefly reviewed the eight supplemental budgets that will be"
part of the Truth in Taxation public hearing scheduled for December 6, 2004.
Library
Mr. l<Jaers stated that this budget is not changing much from 2004 to 2005. He stated that
the tax levy amount has remained the same at $69,000. This amount goes towards operating
expenses and any excess revenues are placed into the Library reserve for future expansion.
Sur/a,', Wat,r Management (SWMi
tvfr. Klaers indicated that the S\V?vf revenues come from the tax levy and from development
fees. He noted that SWM expenses include restoration and repair of county ditches, trunk
storm sewer improvements, and storm sewer expenses associated with the pavement
rehabilitation program.
City 5 vedal_4ssusments
Mr. Klaers stated that revenue for city special assessments is identified in the tax levy
resolution. He stated that there is a slight decrease in the special assessment amount that is
due in 2005 as compared to 2004. Mr. !<Jaers noted that unless additional special
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November 22, 2004
Page 7
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assessments are assumed next year, then special assessments should go down in 2006 by
approximately $7,700.
Ire Arena
Mr. !(]aers stated that the proposed 2005 budget shows expenditures and revenues in the
amount of $705,500. The budget includes a general fund transfer of $64,100 and an
equipment reserve expenditure of $8,000. He also stated that the arena operating revenues
do not generate enough funds to pay for the operating expenditures, debt on the new
facility, and for capital outlay items and that general fund monies are used as a contribution
to fmance the operation of the arena.
EquiDmenl Certifi,uleJ and EquiDmenl Reserves
Mr. !(]aers stated that the equipment certificate budget is $345,000 and this translates into a
tax levy of $86,000 in 2005. He indicated that the main revenue source for the equipment
reserves is the cash contribution from the Municipal Utilities that does not go into the
general fund.
:tv1r. Klaers explained that in the long tenn, equipment fInancing will be a challenge for the
city because over the next few years the requests for capital outlay expenditures will
approach $1 million annually. Mr. !(]aers stated that a reasonable approach would be to have
40% included in the general fund, 40% financed with equipment certificates, and the
remaining 200/0 from equipment reserves.
LInd/ill
Mr. Klaers indicated that the landfill program has a significant fund balance but no annual
revenues other than interest income. He stated that expenses for this program include
expenses associated with the city compost program, staff time necessary to monitor landfill
activities, contractual services for consulting Brms to monitor landfill activities, public
education regarding waste management through the Boys and Girls Club, and the financing
of citywide clean-up day efforts.
Safety
Mr. Klaers stated that revenues for the safety budget come from the insurance reserve. He
indicated that amost annually the city receives a rebate from the League of Minnesota Cities
for its insurance premiums. He stated that the main expenditure for the safety program is
the contract the city has jointly with Utilities for consulting services.
3.6. City Administrator - City of Elk River Work Program
Governam'e
City Administrator Pat Klaers provided a brief overview of the City Administrator-City of
Elk River Wark ProgralTI as outlined in his staff report. 111:. Klaers reviewed what was
accomplished in the spring warksessions and what has been accomplished since the
worksessioq.s.
Mr. Klaers indicated that the City Council may wish to provide a follow-up to the boards
and commissions on the October 11, 2004 joint meetingworksession. He stated that this
can be done by letter or through the staff liaisons.
Mayor I<Jinzing stated that she agrees there should be a follow-up but the Council needs to
decide the best way to provide it. Councilmember Motin suggested tllat the Council review
SpecIal City Council Minutes
November 22, 2004
Page 8
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and discuss the October 11, 2004 minutes at the December worksession and discuss the
appropriate way to follow-up to the October worksession.
!vir. I<laers indicated d1at the Council may need to have individual worksessions with the
Planning Commission and the Parks and Recreation Commission to discuss
recommendations that are being made on development proposals.
Council! 5 talf Rdationf
Mr. Klaers indicated the monthly Council worksessions seem to be working out well to
provide more informal Council discussions to evaluate proposals and policies prior to
formal Council approval.
He stated that "acceptable rules of behavior" for Council, staff, and administrator
interaction was an action step identified in the Brimeyer worksessions. 11r. Klaers indicated
that he was not in attendance at the meetings at which this was discussed and asked the
Council for direction on this issue.
Councilmember Kuester stated that she believes there is confusion on when it is appropriate
for Council to contact staff directly and when Mr. Klaers should be contacted first. She
indicated that there is no indication of which way is correct.
Councilmember Tveite indicated that he believes staff and Council should use common
sense and professional courtesy when determining if direct contact is appropriate.
Mayor Klinzing stated that she would like to find out if other cities have code of conduct
policies in place regarding staff and Council communication and communications with
boards and commissions. 1vfr. Klaers noted that the communication with boards and
commissions has been addressed in the new board and commission policy adopted August
2, 2004.
Councilmember Dietz stated that he believes that direct communication between the
department heads and the City Council should not be limited and that the department heads
should be able to contact the Council without notifying the city administrator at anytime if
they deem it appropriate.
On the topic of staff training, Mi. Klaers stated that he would like tl1e city to hire the
Stanton Group to provide on-site management/ supervisory training to department heads
and other fu:st-line supervisors. The plan is to hold the training on December 15, 2004. It
was the consensus of the City Council to use contingency funds for this training.
OrEani:::ational A1anagement
Ivir. I<laers stated that the hiring of a parks and recreation director was one part of the staff
reorganization plan that has been implemented and it is working out well. He stated that he
believes that the next step, as highlighted from the Brimeyer sessions, should be to hire a
community development director.
It was the consensus of the Council to support this position. This position is in the 2005
budget. :NIt. I<laers stated that in order to proceed with this position in a timely manner, the
job description and pay grade need to be established this winter and advertisement for this
position needs to begin in March. The Council directed the Personnel Committee to review
the pay of the community development director at their December meeting.
Special City Council Minutes
November 22, 2004
Page 9
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Finance Director Lori Johnson asked the Council to review the job descriptions for the
human resources position, community development director, and the finance and
administrative services director positions. She asked the Council to provide her v.rith any
comments or suggestions they have.
Mr. Klaers stated that the Council should consider appointing Lori Johnson to the finance
and administrative services director position. He stated that having Ms. Johnson be the
director of fmance and administrative services works vet)' well but in the long term, there
may be issues if the director of finance and administrative services does not perform the
duties if the finance director.
MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY
COUNCILMEMBER TVEITE TO APPOINT LORI JOHNSON AS FINANCE
AND ADMINISTRATIVE SERVICES DIRECTOR EFFECTIVE
IMMEDIATELY WITH AJOB ANALYSIS QUESTIONNAIRE TO BE
COMPLETED IN JUNE OF 2005. MOTION CARRIED 5-0.
Mr. I<Jaers stated that the City Council should also consider adopting an organizational
chart. Mr. I<Jaers stated that his recommendation is for the Council to adopt chart A with
ille understanding that the public works director and the assistant city administrator
positions are not planned to be filled for the foreseeable future.
Discussion took place regarding the two organizational charts presented.
MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY
COUNCILMEMBER KUESTER TO ADOPT ORGANIZATIONAL CHART CAS
PRESENTED. MOTION CARRIED 4-1. CounciImember Tveite opposed.
4. Adiournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 10:40 p.m.
Minutes prepared by Jessica JV!ilIer.
c;p.J >>t.4.4 .A-
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v
Joan Schmidt
City Clerk