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12-11-1995 CC MIN . SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, DECEMBER 11, 1995 Members Present: Mayor Duitsman, Councilmembers Dietz, Scheel. Farber, and Holmgren Members Absent: None Staff Present: Pat Klaers, City Administrator. Sandra Thackeray, City Clerk; Lori Johnson, Finance Director; Steve Ach, City Planner 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 7 p.m. by Mayor Duitsman. 2. Consider Aaenda e COUNCILMEMBER FARBER MOVED TO APPROVE THE DECEMBER 11. 1995. COUNCIL AGENDA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider 11/20/95,11/27/95, and 12/4/95 City Council Minutes Addition be included under Open Mike of the December 4 City Council minutes "The City Administrator indicated that because Kathy Specht had been at City Hall several times during the past few weeks. she could have hand delivered the information. The City Administrator further stated that in today's society. one can never tell of the danger that could be present". 4. Truth in Taxation Public Hearina on Tax Levv and General Fund Budoet The City Administrator explained that the public hearing tonight is required by the Truth in Taxation Law to receive citizen input on the proposed 1996 Budget and Tax Levy for the City of Elk River. The City Administrator stated that in September, 1995. the Council adopted the proposed maximum budget and levy with a balanced budget in the amount of $4,094,750. He indicated that this proposed budget amount for 1996 reflects a 9]1 percent increase over the adopted 1995 Budget. He indicated that the proposed city net. tax levy for 1996 is $2.570.439. The City Administrator reviewed the budget expenditures and revenues proposed for 1996. Mayor Duitsman opened the public hearing on the Tax Levy and Ge:!eral Fund Budget. . Ed Hunt. 21777 Olson Street, Elk River. indicated his concern over the rural and urban taxing districts being taxed at the same rate. Elk River City Council Minutes December 11, 1995 Page 2 e Tom Droegemueller, owner of a business in the Industrial Park and resident of Heritage Landing, indicated that it appeared that his taxes increased 13 percent and questioned how this could happen when the city is claiming that there was no tax rate increase. Sherri Emerson, Guardian Angels, indicated that taxes for the Guardian Angels property on Lake Orono increased 100 percent. Lori Johnson indicated that the Guardian Angels situation could be due to a tax classification change. There being no further comments, Mayor Duitsman closed the public hearing. Mayor Duitsman indicated that the City Council would be considering the proposed adoption of the budget and levy on Monday, December 18, 1995, between 6 and 7 p.m. The City Council recessed at 7:55 p.m. and reconvened at 8 p.m. 8. Consider Action on Comprehensive Plan e City Planner Steve Ach spoke on some of the concerns of the residents from the previous public hearing on the Comprehensive Plan. He reviewed the issues of cluster development, the urban service area, and the ramifications of not looking to the future and not providing an area for urban growth. He explained that the idea of a large urban service area is to accommodate long term urban growth. Steve Ach reviewed maps showing portions of the proposed urban service area that are wetlands and lands that are already developed. Councilmember Scheel indicated her concern regarding George Deschenes property and why it was not zoned industrial. Hank Duitsman indicated that he felt the Council should discuss the areas of concern prior to making a decision on the Comprehensive Plan. Urban Service Area Mayor Duitsman indicated that he supported the proposed urban service area of the Task Force. He further indicated that he sees the benefit of having a larger urban service area as suggested by the Planning Commission, however he also sees the advantage of keeping Elk River rural in nature. Mayor Duitsman offered a modification to the Steering Committee I s urban service area which included property north of County Road 12. - Councilmember Dietz indicated that the urban service area is a critical issue for the development of the city. He indicated he felt that there is too much wooded and wetland area in the Planning Commission's proposed urban service area. Councilmember Dietz stated that he concurs with the Steering Committee's recommendation for an urban service area. Elk River City Council Minutes December 11, 1995 Page 3 . Councilmember Scheel indicated that the most important factor in this decision is the people and indicated her concern regarding the cost to the property owners. She stated that the extension of urban services to the eastern area would be too costly for the people and that she is not in favor of extending utilities to the east. Councilmember Farber stated that lack of planning in the city has been a concern of the residents. He stated that he concurs with the Planning Commission's and Steering Committee's recommendation to extend the urban service area to the eastern area of the city. Councilmember Farber further indicated that he also concurred with Mayor Duitsman's compromise to the Steering Committee's recommendation. Councilmember Holmgren stated that the city does need to plan for the future. He further indicated that he concurred with the Mayor's compromise of the urban service area. Councilmember Holmgren stated that the result of managed growth is lower property taxes. He further explained that the reason for extending services to the east Highway 10 area is to develop a commercial and industrial tax base. Hiahwav Business e Mayor Duitsman indicated that at the 11/27/95 Council meeting, discussion was held regarding the land use for the area between 194th and 197th, east of Highway 169. Discussion was held regarding tha land use for this area being highway business and being 850 feet deep from the highway. Mayor Duitsman indicated he supported the land use designation of highway business for this area with a buffer zone on the north. COUNCILMEMBER FARBER MOVED TO CHANGE THE LAND USE MAP TO REFLECT HIGHWAY BUSINESS WITH A FRONTAGE OF 850 FEET DEEP FOR THE AREA ALONG THE 194TH ALIGNMENT TO 197TH AVENUE, EAST OF HIGHWAY 169. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 4-l. Councilmember Dietz opposed. Ten Acre Minimum Councilmember Scheel stated that the people in the neighborhood that is affected by the ten acre minimum will not be able to sell their property because the cost for developing in ten acre pieces would be prohibitive. Councilmember Scheel indicated that those people should be able to compete with two and one-half acre developments in surrounding areas. COUNCILMEMBER SCHEEL MOVED TO REDUCE THE TEN ACRE MINIMUM LOT SIZE AND ALLOW DEVELOPMENTS OF TWO AND ONE-HALF ACRES NORTH OF CR33. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION FAILED 2-3. Councilmembers Dietz and Farber and Mayor Duitsman voted against the motion. e COUNCILMEMBER HOLMGREN MOVED TO ADOPT THE MAYOR'S COMPROMISE ON THE URBAN SERVICE AREA FOR THE EXTENSION OF UTILITIES. COUNCILMEMBER FARBER SECONDED THE MOTION. Elk River City Council Minutes December 11, 1995 Page 4 e Councilmember Dietz indicated he did not feel comfortable voting on the Mayor's proposal at this time. He stated he would like some time to review the proposal. Councilmember Holmgren and Councilmember Farber withdrew their motion and second. COUNCILMEMBER HOLMGREN MOVED TO ADOPT THE COMPREHENSIVE PLAN WITH THE EXCEPTION OF THE URBAN SERVICE DISTRICT AND THE LAND USE PLAN. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councitmember Scheel opposed. Councilmember Scheel indicated she was not comfortable with the institution of the Plan. Mayor Duitsman indicated that the Council would make a decision on the urban service area and the land use plan on December 18 at 7 p.m. 5.2. Ice Arena Proiect Update e City Administrator Pat Klaers indicated that the city's grant request for funds for the ice arena is still under consideration by the Minnesota Amateur Sports Commission. He indicated that the city has been requested to reveal its cash commitments for the Mighty Ducks ice arena project. The City Administrator distributed a handout which detailed the contributions that would be made to the project. The administrator noted that this financial summary included a $50,000 contribution to the project from the city. The Council stated that if funds are received, then the project should be completed in 1996. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE COMMITMENTS AS INDICATED ON THE RECOMMENDATION LETTER FOR THE MIGHTY DUCKS ICE ARENA PROJECT. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Scheel opposed. 5.1. Consider Fillina Plannina Assistant Position City Planner Steve Ach indicated that the application process has been completed for the Planning Assistant. He indicated that staff is recommending that the Council hire Scott Harlicker at $30,000 with an increase to $31,970 after the six month orientation and that he then move to $33.405 on July 1, 1997. The Council indicated that it would be appropriate to meet Mr. Harlicker prior to hiring him. It was the consensus of the Council that Mr. Harlicker be available for a Council interview on December 18, 1995. 7. Staff Updates The City Administrator advised the Council that the City Hall closed due to snow emergency on Friday. December 8. at 1 :30 p.m. 9. Adiournment e Elk River City Council Minutes December 11, 1995 Page 5 e There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. The special meeting of the Elk River City Council was adjourned at 9:30 p.m. Respectfully submitted, Sandra Thackeray City Clerk e e