05-23-1994 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 23, 1994
Members Present:
Mayor Duitsman, Councilmembers Dietz, Scheel, Farber and
Holmgren
Members Absent:
None
Staff Present:
Pat Klaers, City Administrator; Lori Johnson, Finance Director; Steve
Rohlf, Building and Zoning Administrator; Gary Schmitz, Planning
Assistant
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 6:00 p.m. by Mayor Duitsman.
2. Consider 5(23/94 City Council Aaenda
The following items were added to the agenda:
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3.5.
3.6.
3.7.
3.8.
Update on 5/21/94 Clean Up Day
Review City Composting Proposal and Request
Receive Country Crossing EA W Material for 5/31 /94 Meeting
Consider Request to $e1l1990 Police Vehicles
COUNCILMEMBER FARBER MOVED TO APPROVE THE 5/23/94 CITY COUNCIL
AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
3.1. Update on UP A/NSP Traffic Issues
Building and Zoning Administrator Steve Rohlf provided the City Council with an
update on two traffic issues related to the UP A/NSP Refuse Derived Fuel (RDF)
program. Steve indicated that, on a temporary basis, the RDF trucks going from
NSP to UP A would be taking an alternate route due to reconstruction activities at
UP A. This temporary route is expected to last about two weeks. Also, Steve
updated the Council on the permit requirements relating to RDF trucks on Friday
evenings.
Glen Kaas, representing the NSP plant, offered the City Council additional
information on the Friday traffic patterns of the RDF trucks.
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Elk River City Council Meeting
May 23, 1994
Page 2
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3.2.
Consider Resolution providina for the issuance and sale of the City's $3A95,000
G.O. Improvement Bonds, Series 1994A; Resolution providina for the issuance and
sale of the City's $1.280,000 G.O. Sewer Revenue Bonds, Series 1994B; and,
Resolution providina for the issuance and sale of the City's $1.080,000 G.O. Storm
Sewer Revenue Bonds, Series 1994C
Finance Director Lori Johnson provided an overview of the three bond issues that
are before the City Council. These issues include a $3.495 million G.O. Bond for
general development, a $1.28 million G.O. Sewer Revenue Bond for
improvements to the treatment plant and a $1.08 million G.O. Storm Sewer Bond
for city-wide storm sewer improvements. The Finance Director also provided an
update on the cities credit rating and bond rating per information from Moody's.
The Mayor discussed with the City Council the impact of the school debt on the
City's bond rating. He indicated that the City's financial picture is improving
annually, but the City's bond rating is not likely to change due to the high
overlapping debt that is typical for a growing school district.
The City financial consultant from Springsted, David Drown, explained how
Moody's goes about rating communities and the factors that Moody's evaluates
in establishing a City's bond rating.
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David Drown distributed a handout of the results of the bond sales. David
indicated that there are eight bids for the $3.495 G.O. Bond and the lowest bid
was from Piper Jaffrey, Inc. There were four bids for the $1.28 Sewer Revenue
Bonds with Cronin and Company being the low bidder. There were four bids for
the $1 .08 Storm Sewer Revenue Bond and Cronin and Company was again the
low bidder. All of the bids were lower than the original estimate and the rates
were between 5.51 and 5.69 percent true interest rate. Additionally, David
indicated that the bonds include insurance and this is a good indication that the
City is deemed to be a good risk in the bond market.
A brief discussion took place regarding the library project and the finances for this
project. It was indicated that the City can anticipate a true interest rate of about
6 percent for this project.
COUNCILMEMBER FARBER MOVED TO APPROVE RESOLUTION 94-55, A RESOLUTION
PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $3.495 MILLION GENERAL
OBLIGATION IMPROVEMENT BOND, SERIES 1994A. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE RESOLUTION 94-56, A
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $1.28 MILLION
GENERAL OBLIGATION SEWER REVENUE BOND, SERIES 1994B. COUNCILMEMBER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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COUNCILMEMBER FARBER MOVED TO APPROVE RESOLUTION 94-57, A RESOLUTION
PROVIDING FOR THE ISSUANCE AND SALE OF THE CITY'S $1.08 MILLION GENERAL
OBLIGATION STORM SEWER REVENUE BOND, SERIES 1994C. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Elk River City Council Meeting
May 23, 1994
Page 3
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3.3.
Consider Reauest for Buildina Inspector Position
Building and Zoning Administrator Steve Rohlf provided some background
information on the need for a building inspector in 1994. Steve indicated that the
request calls for an additional inspector to relieve some of the residential
inspection work load that is currently on Terry Zajac, and also to have Terry begin
doing some commercial and industrial inspection to assist Building Official Cliff
Skogstad. Furthermore, as time allows, the City will begin a rental inspections
program that hopefully can begin this winter.
The Council discussed the need for an additional inspector based on the growth
the City is experiencing. It was indicated that a single building inspector cannot
do over 150 homes per year and that it takes somewhere in the neighborhood of
15 hours to do all of the paperwork and inspections on each new home.
Discussion continued on the financing for a building inspector position and it was
noted that revenues will exceed the budget projection and, therefore, the
additional revenues that are now anticipated in 1994 can finance this additional
position.
Council member Dietz expressed his concern that this position should be looked at
in conjunction with all of the City's employment needs.
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COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE ESTABLISHMENT OF AN
ADDITIONAL BUILDING INSPECTOR POSITION AND AUTHORIZED THE ADVERTISEMENT
FOR THIS POSITION WITH THE fUNDING COMING fROM INCREASED REVENUES
ABOVE THE ADOPTED 1994 BUDGET AMOUNT FOR BUILDING PERMITS.
COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3.4.
Consider Resolution Approvina Use of MSA Funds
The City Administrator provided a brief review of the purpose of the resolutions. It
was indicated that approval of the resolutions will keep the City's options open in
terms of potentially using MSA funds to finance public improvements on School
Street in 1994 and for the Highway 10 turn lane.
COUNCILMEMBER DIETZ MOVED TO APPROVE RESOLUTION 94-58, A RESOLUTION
APPROVING THE USE OF MSA STREET FUNDS FOR THE HIGHWAY 10 TURN LANE
PROJECT. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
COUNCILMEMBER DIETZ MOVED TO APPROVE RESOLUTION 94-59, A RESOLUTION
APPROVING THE USE Of MSA FUNDS FOR THE SCHOOL STREET IMPROVEMENT
PROJECTS IN 1994. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
3.5.
\ Update on 5/21/94 Clean Up Day
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Planning Assistant Gary Schmitz indicated that the Clean Up Day last Saturday
went very well. The City spent about $8,000 in SCORE Funds for this project. Gary
distributed a summary of the items collected and indicated that the volumes for
appliances, tires, batteries, and scrap metal were similar to previous years. No
major problems were experienced during this program.
Elk River City Council Meeting
May 23, 1994
Page 4
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3.6.
City Compostina Request
Planning Assistant Gary Schmitz distributed to the City Council a memo from Phil
Hals dated 5/20/94 that outlined the proposal for a City composting project. It
was indicated that $14,000 was available from SCORE Funds for this project and
that the City's financial contribution would come from its Landfill Waste
Abatement Fund. The total project, excluding City equipment and manpower,
was in the $19,000 range. The project -calls for the construction of a composting
shed at the City garage and for the compost material to then be collected at
this site and spread on City park property.
COUNCILMEMBER SCHEEL MOVED TO APPROVE THE CITY COMPOSTlNG PROJECT AS
OUTLINED IN THE 5/20/94 MEMO FROM PHIL HALS. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3.7. Country Crossina EA W
Building and Zoning Administrator Steve Rohlf distributed the EAW material for the
Country Crossing project. This material included a draft resolution and Steve
indicated that this item would be on the 5/31/94 City Council agenda.
3.8.
Sale of 1990 Police Vehicles
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The City Council reviewed a memo from Chief of Police Tom Zerwas regarding
the sealed bids that were received for the two 1990 police vehicles that the City
desires to sell. The memo indicates that the high bid was from Suburban Auto of
Minneapolis, and that we have sold vehicles to this business in the past.
COUNCILMEMBER SCHEEL MOVED TO ACCEPT THE BIO fROM SUBURBAN AUTO IN
MINNEAPOLIS fOR THE SELLING OF TWO POLICE VEHICLES IN THE AMOUNT OF
$6,118. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
The City Council took a recess at 6:58 p.m. and reconvened at 7:03 p.m.
4. Open Mike
No one appeared for this item.
5.1. Administrative Subdivision Request by Peter Seelan/P.H. Case No. AS 94-08
Planning Assistant Gary Schmitz provided background information to the City
Council on this request. Issues for the City Council to consider included lot size,
driveway locations, wetlands, and the existing oak trees on this property. These
issues are outlined in the 5/23 memo to the Mayor and Council from Gary
Schmitz.
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Mayor Duitsman opened the public hearing. There being no one for or against
the matter, Mayor Duitsman closed the public hearing.
Elk River City Council Meeting
May 23,1994
Page 5
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COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE ADMINISTRATIVE
SUBDIVISION REQUEST BY PETER SEELAN, CASE NO. AS 94-08, WITH THE fOLLOWING
CONDITIONS:
1. PAYMENT Of PARK DEDICATION fEES IN THE AMOUNT OF $450.00 BE PAID TO
THE CITY PRIOR TO RECORDING.
2. A TREE PROTECTION PLAN BE IMPLEMENTED AT THE TIME Of BUILDING PERMIT
APPLICATION.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.2. Consider an Administrative Subdivision Reauest by Rooer Tarnowski/P.H. Case No.
AS 94-04
Planning Assistant Gary Schmitz provided the City Council with some background
information on this request. This information is outlined in his 5/23 memo to the
Mayor and City Council. Gary indicated that this subdivision is in the Westwood
area where sewer' and water was extended in 1992. Gary indicated that staff is
recommending approval of the administrative subdivision and also noted that a
number of variances were approved at the 5/16/94 meeting subject to approval
of this subdivision.
Mayor Duitsman opened the public hearing. There being no one for or against
this matter, Mayor Duitsman closed the public hearing.
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The Council discussed the need for Park Dedication Fees associated with this
subdivision.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE ADMINISTRATIVE SUBDIVISION
REQUEST BY ROGER TARNOWSKI, CASE NO. AS 94-04, WITH THE CONDITION THAT
PAYMENT OF PARK DEDICATION fEES IN THE AMOUNT Of $450 BE PAID TO THE CITY
PRIOR TO RECORDING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 3-2. Councilmember Scheel voted against the motion
because she does not believe the City can have it both ways; either the lot has
been subdivided or is one parcel. Councilmember Holmgren voted against this
motion based on the Park Dedication requirement and the fact that this was a
previously recorded lot of record.
6. Consider an Ordinance Chanaino the Mayor's Term of Office from Two Years to
Four Years
Mayor Duitsman indicated that he is supportive of this change, but he would not
vote on this issue as he has announced his intention to run for the Mayor's office
this fall.
The City Administrator indicated that this issue had been discussed at a number
of previous Council meetings and that the information in the packet is from the
City Attorney. This material outlines all of the relevant issues associated with this
proposal.
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Mayor Duitsman opened the public hearing.
Elk River City Council Meeting
May 23, 1994
Page 6
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Elk River resident John Plaisted voiced his support for a four year term of office for
the Mayor.
There being no further public comment, Mayor Duitsman closed the public
hearing.
COUN~ILMEMBER SCHEEL MOVED TO ADOPT ORDINANCE 94-6, AN ORDINANCE
ESTABLISHING A FOUR YEAR TERM OF OfFICE FOR THE MAYOR. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION.
Council member Holmgren indicated that since very few people are present at
this public hearing on this issue, there must not be a strong feeling in the
community one way or the other on this situation. He indicated that he did not
know if it was a good or bad idea for a four year term of office for the Mayor, but
that he was generally supportive of the idea.
Councilmember Farber indicated that one of the issues brought to his attention
was whether or not this should be a public referendum issue and whether or not
the citizens should be allowed to vote on this request. It was noted that State law
requires this change by ordinance and does not mandate a public referendum
on this issue.
THE MOTION CARRIED 3-1-1. Councilmember Farber opposed. Mayor Duitsman
abstained.
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7.
Other Business
Councilmember Oietz requested that the EDA agenda for 6/13/94 include a
discussion on the EOA site downtown. The Council concurred that this was an
appropriate issue to discuss in June.
8. Staff Updates
No staff updates were presented at this time.
9. Adjournment
There being no further business, COUNCILMEMBER SCHEEL MOVED TO ADJOURN
THE MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
The meeting of the Elk River City Council was adjourned at approximately 7:45
p.m.
Respectfully submitted,
7JJ jdJ~
Patrick Klaers
City Administrator
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