08-09-1999 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 9, 1999
Members Present:
Mayor Klinzing, Council members Dietz, Thompson, Farber and
Motin
Members Absent:
None
Staff Present:
Lori Johnson, Finance Director; Sandra Peine, City Clerk; Michele
McPherson, Director of Planning; Terry Maurer, City Engineer; Peter
Beck, City Attorney; Tom Zerwas, Police Chief; Jeff Beahen,
Assistant Police Chief; Bryan Adams, Utilities Superintendent; and
Rich Czech, Ice Arena Manager
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 7: 12 p.m. by Mayor Klinzing.
2. Consider 8/9/99 Council Aaenda
The following items were added to the agenda.
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8.1 . Northstar Corridor
8.2. Open Space Cluster Meeting
8.3. Main Street/Highway 10 Intersection
COUNCILMEMBER DIETZ MOVED TO APPROVE THE 8/9/99 COUNCIL AGENDA AS
AMENDED. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
3. Consider Consent Agenda
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. 7/26199 CITY COUNCIL MINUTES -APPROVED
3.2. CHECK REGISTER - APPROVED
3.3. REQUEST TO INSTALL WIRING FOR THE ELECTRICAL GENERATOR TO
ALLOW HEATING AND VENTILATION DURING AN EMERGENCY SITUATION, AT
A COST OF $13,000 - APPROVED
3.4. REQUEST FOR TOBACCO LICENSE TRANSFER FOR ELK RIVER SMOKE SHOP AT
19112 FREEPORT AVENUE FROM ANTAR WAZWAZ TO ZAID WAZWAZ-
APPROVED
3.5. RESOLUTION 99-58 RELATING TO PARKING RESTRICTIONS ON TYLER STREET
FROM 1715T AVENUE N.W. TO EXISTING CSAH 13 -- APPROVED
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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4.
Open Mike
No one appeared for Open Mike
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August 9, 1999
Page 2
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5.1 . Presentation bv David MacGillivrary, Sprinasted
David MacGillivray of Springsted Financial Advisors informed the council that
Moody's Investors Service has increased the city's bond rating from Baal to A3.
He indicated that the upgrade reflects the city's diversifying and growing tax
base and an expectation that the growth will continue. In addition, the city's
financial position has strengthened which is evidenced by the growing reserves in
the general fund, and the city's debt burden is expected to moderate as the city
has in place the necessary infrastructure to accommodate the planned future
growth.
David MacGillivray presented Mayor Klinzing with a plaque commemorating the
bond rating upgrade.
5.3. Consider Proposal From Allina
Mayor Klinzing explained that Allina has offered the city two options regarding a
piece of property that the city owns. The options consist of the following:
ODtion 1- Purchase the City's parcel of land for $6.50 per square foot.
ODtion II - Purchase the two end parcels of land and offer a land exchange with
the city trading the westerly parcel for the center parcel owned by the City.
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Lori Johnson, Finance Director, indicated that the City Administrator has listed his
concerns and recommendation regarding this issue in his memo to the Mayor
and City Council. Michele McPherson, Director of Planning, reviewed the
potential zoning issues regarding Allina's request.
Mr. McKee of Timco Construction stated that Allina has re-evaluated the situation
and feels that after taking the zoning issues into consideration, the only way that
the only way Allina's proposal will work is to use all three lots. He indicated that
the request made by Allina at this time is to purchase the city's property.
Discussion was held regarding the purchase price of $6.50 per square foot that
Allina is offering to pay for the city's property. It was noted that the City
purchased the property at $5.50 per square foot in 1997.
Council member Dietz indicated that he would have been agreeable to a land
swap, however, he is not interested in selling the lot. He indicated that the City
took the initiative to plan ahead for the purchase of property for a future liquor
store and stated that the City should keep the property for that purpose.
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Council member Motin indicated that he concurred with Councilmember Dietz.
He noted that selling the lot for $6.50 per square foot will only realize an 18%
increase in over three years. He further noted that there have been several
improvements in the area since the city purchased the land including the
completion of Joplin Street and the construction of Guardian Angels.
Councilmember Motin stated that the City was wise for planning ahead when
purchasing the site for a liquor store. He indicated that the city's population rate
will continue to grow and there will be a need for another liquor store to service
the western area. He stated that he is not interested in selling the site.
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August 9, 1999
Page 3
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Council member Thompson indicated that Allina would be a good addition to the
community who would be bringing high quality jobs to the community. He stated
he is in favor of working out an agreement with Allina to sell the city's lot.
Councilmember Thompson stated that he is not sure if he is interested in the city
pursuing another liquor store.
Councilmember Farber indicated that he was involved in the planning process of
purchasing the lot for the future liquor store. He further stated that he remembers
that the previous liquor store manager, Fritz DOlejs, recommended that a second
liquor store was not necessary. He stated that because of that he is in favor of
selling the lot to Allina.
Mayor Klinzing stated that she is not interested in seeing a second liquor store in
the city and therefore she would be interested in negotiating with Allina for the
city's lot. She further indicated that she would like to negotiate a higher
purchase price than the $6.50 per square foot.
COUNCILMEMBER FARBER MOVED TO AUTHORIZE STAFF TO CONTINUE
NEGOTIATIONS WITH ALLlNA FOR THE PURCHASE OF THE CITY'S PARCEL OF
PROPERTY. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION
CARRIED 3-2. MAYOR KLINZING, AND COUNCILMEMBERS THOMPSON AND FARBER
VOTED AYE. COUNCILMEMBERS DIETZ AND MOTIN VOTED NAY.
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6.1.
Consider Administrative Subdivision Reauest bv Seton Foster, Public Hearina Case
Nos. AS 99-3/ AS99-4
Michele McPherson, Director of Planning, indicated that Mr. Foster has made
application for two Administrative Subdivisions to allow the creation of three lots.
The property is located at the southwest corner of 225fh Avenue and County
Road 32. Michele reviewed the staff report on this request. She noted that Mr.
Foster will have a total of 30 total acres that he wants to split into 3 - 10 acre lots.
She noted that four acres of the 30 are located in Big Lake Township.
Mayor Klinzing opened the public hearing. Mr. Foster approached the council
and noted that he would impose a restrictive covenant on the property in Big
Lake Township that would not allow any future splits of the property. This would
then ensure that the city's ten-acre minimum requirement would be met.
There being no further comments, Mayor Klinzing closed the public hearing.
COUNCILMEMBER FARBER MOVED TO APPROVE THE ADMINISTRATIVE SUBDIVISION
REQUESTED BY MR. FOSTER, AS 99-3, TO SPLIT 4.5 ACRES WITH THE FOLLOWING
CONDITION:
1. THAT THE PROPERTY BE COMBINED WITH THE APPLICANT'S PARCEL TO FORM
ONE PARCEL;
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AND TO APPROVE THE ADMINISTRATIVE SUBDIVISION REQUEST BY MR. FOSTER, AS
99-4, TO CREATE THREE PARCELS WITH THE FOLLOWING CONDITIONS:
1. THAT THE APPLICANT GRANT DRAINAGE EASEMENTS OVER THE DELINEATED
WETLAND AREAS;
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August 9, 1999
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2. THAT THE APPLICANT PAY PARK DEDICATION AND SURFACE WATER IMPACT
FEES AS REQUIRED BY ORDINANCE; AND
3. DEEDS SHALL BE CROSS-RECORDED FOR THE FOUR ACRES LOCATED IN BIG
LAKE TOWNSHIP AND THE SIX ACRES LOCATED IN ELK RIVER TO PREVENT
FUTURE SUBDIVISION OF THE PARCELS.
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.2A. Consider Resolution Dedicatina a Trail Easement for Pedestrian Bridae
6.2B. Consider Resolution Reauestina MnDOT APproval of Bid for Pedestrian Bridge
City Engineer Terry Maurer presented these two items to the council.
COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 99-59 REGARDING A
TRAIL EASEMENT FOR A PEDESTRIAN PROJECT. COUNCILMEMBER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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COUNCILMEMBER THOMPSON MOVED TO ADOPT RESOLUTION 99-60 AWARDING
THE BID FOR THE PEDESTRIAN BRIDGE PROJECT TO REDSTONE CONSTRUCTION IN THE
AMOUNT OF $525,513.53. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
6.3.
175th Avenue Improvement Proiect Land Acauisition
City Engineer Terry Maurer indicated that staff has been researching the
necessary easements and preparation of right-of-way plans for the 175th Avenue
improvement project. He indicated that there are approximately 17 easement
parcels that need to be acquired for this project located along 175th Avenue
from Tyler Street to Filmore Street.
COUNCILMEMBER MOTIN MOVED TO AUTHORIZE STAFF TO ACQUIRE A QUOTE
FROM EVERGREEN LAND SERVICES FOR THE ACQUISITION OF THE NECESSARY
RIGHT-OF-WAY. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
7.1. Reauest to Authorize Bids for Ice Arena Bleachers
Lori Johnson indicated that staff is requesting authorization to go out for bids for
the replacement of bleachers at the Barn located in the Ice Arena.
COUNCILMEMBER FARBER MOVED TO AUTHORIZE STAFF TO ADVERTISE FOR BIDS
FOR NEW BLEACHERS AT THE BARN IN THE ICE ARENA. COUNCILMEMBER MOTIN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
7.2.
Consider Authorization to Replace Damaaed Sauad Car
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Police Chief Zerwas indicated that Assistant Chief Beahen's squad car was
damaged in an automobile accident. He requested authorization for
replacement of the vehicle. Chief Zerwas presented three bids for replacement
vehicles.
City Council Minutes
August 9, 1999
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COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE THE PURCHASE OF A 1999
CHEV LUMINA FROM SAXON MOTORS AT A PURCHASE PRICE OF $15,900.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
7.3. Review Policv for Use of City Prooertv
City Clerk Sandy Peine presented a draft policy for the use of city property for
council review. Councilmember Motin suggested that the policy specify that
city property include HRA and EDA property. Councilmember Motin also
suggested that community events be restricted to "not-for-profit entities." It was
the consensus to adopt the policy as presented with these two amendments.
COUNCILMEMBER MOTIN MOVED TO ADOPT THE POLICY FOR THE USE OF CITY
PROPERTY WITH THE TWO AMENDMENTS RELATING TO HRA AND EDA PROPERTY AND
NOT-FOR-PROFIT ENTITIES. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
7.4.
Acceot Resianation from Darrell Mack and Discuss Wastewater Treatment Plant
Suoerintendent Position
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Lori Johnson requested the council to consider Darrell Mack's resignation. She
noted that Gary Leirmore will take charge in the interim until a replacement for
Darrell is hired.
COUNCILMEMBER FARBER MOVED TO ACCEPT DARRELL MACK'S RESIGNATION AS
WASTEWATER TREATMENT SUPERINTENDENT WITH REGRET AND INDICATING THAT THE
29 YEARS OF SERVICE THAT HE PROVIDED THE CITY HAVE BEEN COMMENDABLE.
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The council discussed the issue of combining the position of water and sewer
superintendent. It was the consensus of the council that this was an opportune
time to discuss this issue as both superintendents are retiring. Councilmember
Dietz indicated that it is not the city's intention to take over the water department
but to structure the position so as to have one employee. He further stated that
he will be asking the Utilities Commission to look at this again due to Darrell's
retirement.
Bryan Adams felt that there are issues that have to be resolved regarding statute
412.321 dealing with the authority in operating a utilities commission.
City Attorney Peter Beck suggested that the city hire a lawyer to review this issue.
He stated that a third party opinion would be non biased and could be obtained
for a reasonable fee.
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The Council directed the City Attorney to request a legal opinion from Jim
Strommen, Holmes & Gravin, on the issue of a shared sewer and water
superintendent position. The council directed staff to schedule a joint meeting
with the Utilities Commission to discuss the water and sewer positions and
structure. Councilmember Thompson recommended that the Utilities delay the
hiring process for the water superintendent until this issue is resolved. The council
concurred.
City Council Minutes
August 9, 1999
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Mayor Klinzing indicated that during the joint discussion by the Council and
Utilities Commission regarding this issue, the discussion should be all
encompassing which includes the possibility of a referendum to allow either the
utilities to take over the sewer department or the sewer department to take over
the water department. She noted that this is the time to look at all options.
8. Other Business
8.1. Northstar Corridor
Mayor Klinzing updated the council on a Northstar Corridor meeting held
to discuss station locations. She noted that the North Star Corridor
Commission has chosen the area of 171 st Avenue as the first choice for the
station location in Elk River. Michelle McPherson indicated that the
Planning Commission will be discussing this issue and that it will be
presented to the City Council for discussion on September 16.
8.2. Open Space Cluster Meetina
Mayor Klinzing informed the council that a meeting was held regarding
the concept of open space clustering. She indicated that residents
affected by this proposed ordinance were invited to attend the meeting.
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8.3.
Main Street/Hiahwav 10 Intersection
Mayor Klinzing indicated that she would like to see some improvements
made to the Highway 10 and Main Street intersection. The issue pertained
to the length of time it takes to go through the signal while waiting in the
right lane on Main Street heading west. Terry Maurer indicated that the
city controls the intersection. He suggested turning the right lane into a
right turn only lane. It was the consensus of the council to have the city
attorney put together a proposal that could be presented to the council
for review.
9. Staff Updates
The City Engineer indicated that MnDOT has acknowledged the city's continued
request for the need of a traffic signal at Trunk Highway 169 and County Road 33.
He noted that MnDOT is reviewing the issue.
9. Adjournment
There being no further business, the meeting of the Elk River adjourned at 8:36
p.m.
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~~~K-P
Sandra Peine
City Clerk