07-31-1995 CC MIN - SPECIAL
e
SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 31,1995
Members Present:
Mayor Duitsman, Councilmembers Dietz, Farber and Holmgren
Members Absent:
Council member Scheel
Staff Present:
Pat Klaers, City Administrator; Lori Johnson, Assistant City
Administrator; Peter Beck, City Attorney
Utilities Commissioners Present:
Jim Tralle, George Zabee and General Manager Bill
Birrenkott
1. Call Meetina To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River City
Council was called to order at 5:00 p.m. by Mayor Duitsman.
2.
Consider Council Aaenda
e
COUNCILMEMBER DIETZ MOVED TO APPROVE THE JULY 31, 1995 CITY COUNCIL
AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
3.
Consider Consent Aaenda
Councilmember Dietz requested to remove Item 8.2. from the Consent Agenda.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE JULY 31, 1995, AMENDED
CONSENT AGENDA AS FOLLOWS:
4.0. JULY 17, 1995, REGULAR MEETING CITY COUNCIL MINUTES -- APPROVED
4.b. JULY 24, 1995, REGULAR MEETING CITY COUNCIL MINUTES -- APPROVED
4.c. JULY 24, 1995, EXECUTIVE SESSION MEETING CITY COUNCIL MINUTES --
APPROVED
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0.
5. Joint City Council/Utilities Commission Meetina
Bill Birrenkott stated that In the last year and a half, the Utilities added over
$1.400,000 in new property consisting of a new substation located at the old west
site, and a major upgrade of the original east station. These improvements were
done in order to be ready for the next capacity increase. Both stations are now
on line and the Utilities now have the capacity to serve the entire loan without
one of the stations being in service.
e
In addition to the substation expenditures, the Utilities spent about $700,000 for
distribution lines. This was mostly in new subdivisions, however some of it was used
Elk River City Council Meeting
July31,1995
Page 2
...---......--.......---...-
e
to upgrade the existing lines. and on preventative maintenance. The Utilities had
no major purchase of equipment this year or last year as the Commission
extended the life of some of the older equipment for an additional year. The
Utilities have budgeted two trucks for late this year. however. the Commission will
delay them for as long as possible.
There were no major accidents last year involving personnel or high voltage
electricity.
Anoka Electric Takeov~rof Territorv
The Utilities did take over some of AEC's territory last year. but did not take any of
AEC's existing customers (with one small exception). Next year the Utilities will not
take any major areas of AEC's cvstomers, however, the Utilities does have a very
good working relationship with AEC, and. if an unexpected area comes up which
would be beneficial for the Utilities to serve (rather than exchange later). AEC
vsually will allow the Utilities to toke it. They have been very cooperative.
Personnel
No new personnel were added in the past year.
e
The Utilities changed one person in the office from part time to fvll time last year
becavse of the load caused by the increased number of customers, increased
regvlatory requirements. and the garbage billing. This increase is the first since
1982 and just bring them to the level that they were in 1980.
Rates
The Utilities sUII have the lowest rates in the area. Depending on vsage, the
Utilities are lower than NSP by around 2-3 percent. Wright Hennepin Coop by 30
percent. and AEC by about 4 percent (even with their recent rate decrease).
This is one thing that the Commission closely watches.
Generation
The Commissioners recently avthorized a feasibility study to determine if the
Utilities shovld enter into 0 long term generation project. The preliminary stvdy is
finished and is subject to further review. The feasibility of this project depends on
the cooperation of UPA and AEC to restrvctvre the contract. however the Utilities
do not see that as 0 problem. Presently. the Commission purchases 011 of its
energy. However, it appears that with the present long term natural gas rates
now available, and the new machine efficiencies. that the Utilities may be better
off to bvild new generation. If the project proves feasible, the Utilities will spend
around $18.000.000. The Commission will know more in a couple of months when
it gets some operating statistics in for the operation of the unit in Hvtchinson. This
could involve building a 30 Megawatt unit near the site of our west substation.
also near the passage of a high pressure natural gas pipeline.
e
Assessment of Charges for Underaround Electricity & Street liohts
Presently. the Utilities charge the developers for the cost of underground
installation of electrical lines and street lights. This involves letters of credit. and
Elk River City Council Meeting
July 31,1995
Page 3
e
many other arrangements. It has occurred that moybe this could be handled
the same way that sewer and water are handled in new subdivisions.
Street Liahts on the Orono Bridae
Material has been ordered and will be here in about six weeks. It will take some
time for installation after that, and should be completed by late fall.
Gary Street Water Proiect
The well and treatment plant are completed and in service. The water tower is
going to be painted next week, however the piping to fill it is not yet completed
nor have the controls been checked out.
Hillsk;le Water Proiect
This 500,000 gallon tower in Hillside Addition has been completed and filled. The
well is finished and accepted, however the treatment plant is not yet completed.
Hopefully it will be in service by winter. As of this time, only the footings have
been poured.
Water Capacity Problems
e
During this post June when it was extremely hot. the Water UtHities hod one day
when the pumps ran 24 hours and it actually lost capacity in the water towers.
This brought the Commission to the realization that it needs to have a system in
place to affect a sprinkling ban or some other form of usage curtailment. That is
why the Commission asked the Council to pass an ordinance similar to the one in
Anoka.
The Elk River Utilities Commission would like the City Council to consider an
ordinance to impose water use restrictions.
Jeff Gongoll stated that the developers would like to see an assessment fee
schedule and know in advance what project expenses could be expected.
Peter Beck, city attorney stated that staff should add expenses for street lights to
the developers agreement. Peter Beck will also look at assessing other electrical
expenses to the developments.
COUNCJLMEMBER HOLMGREN MOVED TO INCORPORATE FEES FOR STREET LIGHTS
INTO THE DEVELOPERS AGREEMENT AND TO HAVE PETER BECK LOOK AT ASSESSING
ELECTRIC DEVELOPMENT COSTS. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOnON CARRIED 4-0.
e
Both the Planning Commission and City Council worked diligently to establish a
new Business Park zoning designation for the western area of the city and this
zone contains some fairly stringent architectural standards. The standards
encompass both the design of buildings as well as landscaping improvements.
The two site plans approved for the Business Park are indicative of the product
staff and elected/appointed officials envisioned for this area.
Elk River City Council Meeting
July 31,1995
Page 4
e
Another component of the Park's development will be that of power lines that
are either out of view or unobtrusive. Both the City and the Utilities Commission
will
realize many benefits from the development of the Business Park. These include
property taxes, new employment opportunities, water connection fees, and
electrical charges, etc. For theSe reasons, city stoff believes that it is important to
explore every possible angle associated with underground electrical lines.
Property owners are not likely to be anxious to absorb these costs. However, if the
city and Utilities recognizes the long.term benefits of the Business Park, they wilt far
exceed the expense of underground lines.
Discussion was also mode on safety issues. Bill Birrenkott suggested to hire 0
shared safety coordinator to keep us in compliance with OSHA laws.
Sandy Thackeray city clerk will update us at 0 later dote on the ADA low. Sandy
will contact Bill Birrenkott to put it on the Utilities agenda.
George Zabee left the meeting at this time (5:55 p.m.).
Peter Beck will draft an ordinance on water usage restrictions and put 0 provision
in the ordinance to allow the general manager to restrict usage in on
emergency. This will be put on the August 7, 1995, agenda. Sandy Thackeray will
also put this in the City of Elk River newsletter next summer.
e
Bill Birrenkott stated that any developer now has two options on street light poles.
Discussion took place on 0 new law that requires cities to test employees who
hove commercial drivers licenses for drugs and alcohol. Sandy ThaCkeray is
working on this for the city with the League of Minnesota Cities.
6.
Motion tq Call Executive Session of City Council
COUNCILMEMBER HOLMGREN MOVED TO CALL THE EXECUTIVE SESSION TO ORDER
AT 6:19 P.M. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
7. Executive Session of the City Council
The City Council recessed at 6:24 p.m" to hold on executive session.
The meeting of the Executive Session was adjourned at 7;41 p.m.
COUNCILMEMBER HOLMGREN MOVED TO RECONVENE THE REGULAR CITY COUNCIL
MEETING AT 7:48 P.M. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
8. Administrative Items
8.1
Consider Action on Personnel Issues
.
No action or discussion took place on this time and it will be placed on
the August 7. 1995, agenda.
Elk River City Council Meeting
July 31, 1995
Page 5
e
8.2
Consider Use of Equipment Reserves for Pork/Street Equipment
The following purchases are recommended to the City Council:
· Power gate opener - approx. $2,150 - desired for safety and ease of
opening and closing the public works building yard gate.
· Tracks for the skid loader - approx. $2,150 - makes the skid loader
usable on soft ground and slopes.
· Gas card system upgrade - approx. $3,750 - provides better and faster
accounting of fuel usage and allows for data back up.
The power gate opener and gas cord system are proposed to come from
the street equipment reserve. The skid loader expense will come from the
parks equipment reserve.
COUNCILMEMBER FARBER MOVED TO APPROVE THE TRACKS FOR THE SKID
LOADER AND THE GAS CARD SYSTEM UPGRADE AND TO DISCUSS APPROVAL
FOR A POWER GATE OPENER AT THE AUGUST 7, 1995 COUNCIL MEETING.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
8.3
Consider Leaque of Minnesota Cities Personnel Services Proposal
e
Per direction from the City Council, staff has been working on putting
together a proposal for doing employee performance evaluotions. This
was one of the motions that was approved with the Comparable Worth
Plan.
The City Administrator reviewed his 7131/95 memo on the League of Cities
proposalldated 7/20/95) to develop an Elk River performance evaluation
system.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE PERSONNEL
PROPOSAL DATED 7120/95 FROM THE LEAGUE OF MINNESOTA CITIES.
SECONDED BY COUNCILMEMBER DIETZ. THE MOTION CARRIED 4-0.
804 1995 Leqislative Session Update
The Council noted thot it had received the Legislative summary.
8.5
Ice Arena Financina and Project Update
e
Since the lost presentation to the City Council on the ice arena project on
May 22, 1995, not much activity has taken place on this project. On 5/22
it was finally concluded that the project that was desired was about $2.8
to $2.9 million and that only about $2.1 million was ovailable. This $2.1
million that is available comes from a $100,000 contribution from youth
hockey and $2 million being available over the life of the bonds from the
revenue generated off of two sheets of ice as compared to the operating
expenses.
Elk River City Council Meeting
July 3], ] 995
Page 6
e
Since 5/22, the Task Force has met with the architects as a temporary
wrap up to the project and the Task Force has also met with the president
of youth hOckey. Additionally, Task Force Chair Jeff Gongoll and the city
administrator have been following the Mighty Ducks legislation and the
activities of the Minnesota Sports Commission as this group is charged with
the responsibifity of awarding grants from the Mighty DuCks money for ice
arena projects. At this point, it is anticipated that a city grant application
will need to be submitted in September and grants will be awarded later
in the fall or in early winter.
Even if the city is fortunate enough to receive $250,000 in Mighty Ducks
money, the project is still short of funds. If the city is fortunate enough to
get the Mighty Ducks monies, then it will either have to tell the architects
to build the best project they can with the money that is ovailable or
obtain additional financial commitments from youth hockey or other
agencies (i.e., the school or the city).
Everyone in Elk River wants a second arena that they can be proud of
and does not want to construct another "tin" structure. Accordingly, if the
city has only $2.35 million available, the building will be a very bare
minimum shell type of structure. The city does not want to end up
compromising a design in 1996 which we may regret in the year 2006,
simply because we were $200,000 or so short of funds.
Discussion will continue at a later date.
e
8.6
Consider Amendina Dates for Solid Rock Church Tent. Revival
COUNCILMEM8ER HOLMGREN MOVED TO AMEND THE DATES fOR SOLID
ROCK CHURCH'S TEMPORARY USE Of OUTLOT A TO AUGUST 1 Sf THROUGH
AUGUST 17TH AND AUGUST 19TH. COUNCILMEMBER Dim SECONDED THE
MOTION. THE MOTION WAS CARRIED 4-0.
9. Other Business
No other business at this time.
11. City Council Worksession on East Elk River Public Improvement Proiect
City Administrator Pat Klaers provided an introduction as to the current status of
the east Elk River public improvement project. This project was last discussed at a
worksession of the City Council on June 26, 1995. At that 6/26/95 meeting the
Council reaffirmed their desire to have a fall, 1995, publiC hearing on the
proposed improvements for east Elk River. This public hearing would follow a
benefit study on this project being reviewed and accepted by the Council and
this public hearing would begin the 429 assessment process.
e
City Engineer Terry Maurer reviewed with the City Council the overall project for
the County Road 12 corridor and the East Highway 10 corridor which, combined,
make up the east Elk River public improvement project area. Three different
alternatives were presented as the initial (Phase I) construction project area and
assessment area. It was noted that with either of the three alternatives, there are
some oversizing and start up costs that would be required to be financed through
Elk River City Council Meeting
July31,1995
Page 7
e
a method other than direct assessments to the construction ar project area.
These costs are for such items as lift stations and looping the water system. These
costs would be recaptured in future phases of the project when the actual
construction costs are lower than the assessment amount. The City Council
reaffirmed its desire to have one assessment amount for the entire project and
not have one assessment rate for Phase I. another rate for Phase II. another rate
for Phase III, etc.
Financial Consultant Dave McGillivray from Springsted reviewed the project cost
for aU three alternatives on a per acre basis versus an assessment amount of
$5,060 per acre. Dave indicated that there is a potential of a city wide levy
being necessary in order to meet the bond obligations for aU three project
alternatives. A tax levy may not be necessary if other funding was identified,
and/or if the project cost came in lower, and/or if the assessment rate was higher.
AU three of the alternatives did not cash flow based on the project cost
compared to the assessment amounts and the worse case scenario identified 0
10 to 20 percent tax levy increase for the life of the bonds in order to make the
city bond payments. A handout of the financial information, dated July 27 and
28, 1995, was distributed to the City Council.
Mayor Duitsman and City Council indicated their desire to have a public hearing
on this project in the fall in order to receive public input on the desirability of the
public improvements in the various project areas. The City Council indicated its
support for alternative number three which had a bond issue size of
approximately $5.6 million.
e
The City Council spent approximately 45 minutes discussing the potentiol
improvements to the East Highway 10 area and emphasized its desire to have
utilities in this oreo for future commercial and industrial development.
10.
Stoff Uodates
The City Administrator distributed the Notional League of Cities Annual
Conference registration information.
The City Administrator requested permission to obtain an appraisal quote for a
potential Westbound Liquor Store site from St. Cloud Appraisal, Inc. The Council
agreed and further indicated that the appraisal could start if the quote was
under $1,000.
The City Administrator updated the City Council on the planned improvements
by the school on the tennis courts and fence. Additionally, the school
superintendent has requested that the city improve the lighting system around
the tennis courts. The City Council concurred to finance this expenditure from the
pork equipment reserve provided that the expenditures were in the $3,000 range.
e
Elk River City Council Meeting
July31,1995
Page 8
e
12.
Adjournment
There being no further business, COUNCILMEMBER HOLMGREN MOVED TO
ADJOURN THE MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
The meeting of the Elk River City Council was adjourned at 9:05 p.m.
Respectfully submitted,
'''i11Letlu:. (' (e L-1J8.jZA/o-u-
Michelle Dwyer
Recording Secretary
"WAt-<.tL {:j24uL{ -s L
Patrick D. Klaers
City Administrator
e
e