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05-23-1994 CC MIN e 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: e 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. e Elk River City Council Meeting May 23, 1994 Page 2 e 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. e 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. e 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 e 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. e 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 e 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 e 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 e 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. e 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 e 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. e 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. e Mayor Duitsman opened the public hearing. Elk River City Council Meeting May 23, 1994 Page 6 . 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. e 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 e