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07-11-1994 CC MIN e eJ. e MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 11, 1994 Members Present: Mayor Duitsman, Councilmembers Farber, Dietz and Holmgren Members Absent: Council member Scheel Staff Present: Lori Johnson; Finance Director, Steve Rohlf; Building and Zoning Administrator, Steve Ach; City Planner, Terry Maurer; City Engineer, Peter Beck; City Attorney 1. Call Meetina To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:03 p.m. by Mayor Duitsman. 2. Consider July 11, 1994 Aaenda Item 8.2 - Auto Mall; and Item 8.3 - Main Street and Evans, were added to the July 11, 1994, City Council Agenda. COUNCILMEMBER FARBER MOVED APPROVAL OF THE JULY 11, 1994 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider Consent Aqenda COUNCllMEMBER HOLMGREN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 4.1 CONSIDER JUNE 20, 1994 CITY COUNCIL MINUTES 4.2. CONSIDER JUNE 27, 1994 CITY COUNCIL MINUTES 9. CONSIDER CHECK REGISTER COUNCllMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5. Consider Hiring of a Buildinq Inspector Steve Rohlf reviewed the staff's recommendation to hire Mr. Dennis Anderson to fill the position of building inspector. COUNCILMEMBER HOLMGREN MOVED TO ACCEPT THE BUILDING AND ZONING ADMINISTRATOR'S RECOMMENDATION TO HIRE DENNIS ANDERSON FOR THE POSITION OF BUILDING INSPECTOR AT A SALARY OF $15.96 PER HOUR, WITH A COST OF LIVING INCREASE JANUARY 1, 1995, AND; THAT AN INCREASE OF 50 CENTS PER HOUR INCREASE BE GIVEN AT THE END OF A ONE YEAR ORIENTATION PERIOD. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-1. MAYOR DUITSMAN VOTED NAY. City Council Minutes July 11, 1994 Page 2 e 6. Accept Donation of an Office Buildinq from the Chuba Company Peter Beck explained that a lease agreement was drafted and sent to the Chamber for their review. He stated that the lease agreement includes a bill of sale from the Chuba Company to the City of Elk River, and that the Chamber will lease the building from the City. Council member Holmgren questioned whether or not the property would be considered tax exempt, once the City enters into a lease. Peter Beck stated that the lease agreement provides that if the property is not tax exempt, the Chamber will be responsible for paying the taxes. He noted that the City will only be leasing the westerly portion of the property that the Chamber building occupies. COUNCILMEMBER MOVED TO ACKNOWLEDGE RECEIPT OF THE BUILDING DONATED BY MR. CHUBA OF THE CHUBA COMPANY. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER HOLMGREN ABSTAINED. 7. Consider Surface Water Manaqement Proqram Mayor Duitsman indicated that he would like to start the Storm Water Impact Fee 20 percent higher than the proposed $600, with a 3 percent increase at a later date. e He stated that the City needs approximately $330,000 a year in Surface Water Management fees, in order to payoff the financing and to complete other projects, such as County ditch system improvements. Mayor Duitsman suggested the following rates: Government - $4.00/acre Commercial/Industrial - $15.00/acre Residential - $2.00/unit Multifamily - $15.001 acre Undeveloped - $1.00/ acre Mayor Duitsman indicated that based on his calculations, this would generate approximately $332,250 a year. Lori Johnson explained that the government classification for city, church, school, state, etc., presently includes parks and building sites. Lori stated that the proposed ordinance excludes parks, but if parks are included, it is suggested that they billed at the undeveloped rate, along with recreation fields. Building sites would be included under the Government rate. e Lori Johnson indicated that there may some property that will be deleted from the government rate. She explained that the City would pay approximately $2,300 per month for all its properties based on a rate of $3.50 per acre. Also, the State of Minnesota property may be exempted, which totals approximately $700 per month. Lori noted that the Historical Society has property including the Kelley Farm which is included in the Government rate. City Council Minutes July 11, 1994 Page 3 e Mayor Duitsman noted that if the undeveloped lands were deleted from the government rate at $4.00 per acre, the annual revenue may end up being only about one-half. or $30,000. Lori Johnson added that if the park land was excluded, as the ordinance states, that would take out a large portion of the 1,262 total acres in the government classification. Discussion followed regarding making exclusions on property 10 acres or more in size, or, excluding property north of of the County Road 33 boundary. Also, it was discussed whether or not to charge a surface water management fee to all the area north of County Road 33 . Lori Johnson indicated that the Utilities needs the information in within two weeks in order to process the billing for August. She stated that each month delay in billing costs approximately $25,000 to $30,000. Therefore, it is important to be ready for the August billing.She explained that there is still some cross-checking with the acreage and units on the government classification that needs to be done. Lori further explained that if the Council could agree on the residential fee, that portion could be started. . Council member Farber expressed his concern that he felt using County Road 33 as a boundary would place an unfair hardship on farmers south of County Road 33. e Marlon Glines, Elk River resident and developer, expressed his concern that the surface water management proposal is unfair to property owners and developers who take care of their storm drainage on-site. Mayor Duitsman stated that the storm water drainage problem is a city problem and everyone should help pay for the improvements. City Engineer Terry Maurer explained that he felt it makes sense to charge a nominal fee to owners of undeveloped property now with an increase when developed, rather than excluding them now and charging a high fee when the property is developed. Terry Maurer indicated that if all property in the City was included, with the undeveloped land at $1 .00, it would add approximately 50 percent in revenues. The City Council reached the following consensus on surface water management issues: A rebate program would be set up for property owners presently receiving a county ditch assessment. An appeal board will be established, similar to the refuse collection appeal board. The proposed initial Storm Water Impact Fee will be increased by 20 percent, with a 3 percent increase at a future date. e City Council Minutes July 11, 1994 Page 4 e COUNCILMEMBER HOLMGREN MOVED TO ADOPT THE FOLLOWING SURFACE WATER MANAGEMENT FEES: COMMERCIAL/INDUSTRIAL - $15.00/ ACRE RESIDENTIAL - $2.00/ ACRE MULTIFAMILY - $15.00/ACRE UNDEVELOPED - .50/ ACRE GOVERNMENT - TO BE DETERMINED AT A LATER DATE COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. Marlon Glines expressed his concern that everyone is being assessed for a problem caused by and affects a specific area, such as the Main Street and Evans Avenue area. Terry Maurer explained that there are other factors that contribute to the Main and Evans problem. He stated that water comes from the Proctor and School Street area, filling the storm sewer lines going to the river, and prevents water from the Main Evans area to drain into the line. 8.1 . Consider No Parkinq Siqm Request COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE FOLLOWING "NO PARKING" SIGNS: "NO PARKING ANYTIME" ON MAIN STREET FROM 400' EAST OF EVANS AVENUE TO EVANS AVENUE; e "NO PARKING" ON MAIN STREET FROM EVANS AVENUE TO FREEPORT AVENUE; "NO PARKING" ON EVANS AVENUE FROM 2ND STREET TO 3RD STREET ON BOTH SIDES OF THE STREET; "NO PARKING" ON ORONO PARKWAY FROM THE DRIVEWAY INTO THE HOULTON FARM TO THE NORTH SIDE OF THE ORONO BRIDGE ON THE EAST SIDE, AND JUST ON THE BRIDGE ON THE WEST SIDE. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 8.3. Main Street and Evans A venue Terry Maurer explained that he is working with Phil Hals on this issue and that it will be placed on the City Council agenda in the next 1-2 weeks. He stated that they are working to get this project completed in 1994, rather than 1995 as proposed. 8.2. Auto Mall Proposal By Oarkenwald Family COUNCILMEMBER HOLMGREN MOVED TO PLACE THE DARKENWALD FAMILY AUTO MALL PROPOSAL ON THE AUGUST 1, 1994 CITY COUNCIL AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. e City Council Minutes July 11, 1994 Page 5 tit 8.4. Well Testina Request by Stephen Rohlf; Buildinq and Zonina Administrator COUNCILMEMBER DIETZ MOVED TO AUTHORIZE TESTING OF A RESIDENTIAL WELL IN THE AREA OF THE OLD CITY DUMPSITE, TO BE DONE IN THE FALL OF 1994. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE MEETING. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River City Council adjourned at 6:55 p.m. Respectfully submitted, '\Qu~ r;~ Debbie Kleckner Recording Secretary e e