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02-15-1993 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL CAPITAL IMPROVEMENT PROGRAM WORK SESSION HELD AT THE ELK RIVER CITY HALL MONDAY, FEBRUARY 15, 1993 Members Present: Mayor Duitsman, Councilmembers Scheel, Farber and Dietz Members Absent: Councilmember Holmgren Staff Present: Pat Klaers, City Administrator; Terry Maurer, City Engineer; Phil Hals, Street/Park Superintendent; Lori JOhnson, Finance Director 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the City Council Capital Improvement Program Work Session was called to order at 6:00 p.m. 2. Consider 2/15/93 City Council Agenda COUNCILMEMBER DIETZ MOVED TO APPROVE THE 2/15/93 CITY COUNCIL AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider 1/18/93 CIP Work Session Minutes COUNCILMEMBER DIETZ MOVED TO APPROVE THE 1/18/93 MINUTES. COUNCILMEMBER FARBER SECONDED THE MOTION. 4-0. CIP WORK SESSION THE MOTION CARRIED Consider 2/1/93 City Council Minutes COUNCILMEMBER FARBER MOVED TO APPROVE THE 2/1/93 CITY COUNCIL MINUTES. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.1. Authorize Publication of Notice of Intent to Request Release of Funds The City Administrator explained that because Tescom was changing lot locations in the Elk River Industrial Park it was necessary to publish findings of facts in order to release DTED funds. COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE PUBLICATION OF THE FINDING OF NO SIGNIFICANT IMPACT AND THE NOTICE OF INTENT TO REQUEST RELEASE OF FUNDS. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Consider Pay Estimate #6 and #7 to Bor-Son Construction Mayor Duitsman questioned why City Hall had a cedar shake roof. Councilmember Dietz explained that this had been an item of discussion earlier and the Council concluded at that time that a cedar shake roof . . . Capital Improvement Program Minutes February 15, 1993 Page 2 was appropriate in order to make the facility blend in to the residential atmosphere of the area. COUNCILI'iEMBER FARBER MOVED TO APPROVE BOR-SON CONSTRUCTION. COUNCILMEMBER MOTION CARRIED 4-0. PAY ESTIMATES '6 AND '7 DIETZ SECONDED THE MOTION. TO THE 4.3. Update on 1993 Urban/Rural Taxing Districts Finance Director, Lori Johnson, updated that City Council on recent developments on Urban/Rural Taxing Districts. She indicated that at the last meeting the Council had authorized a public hearing for March 22 to change the ratio of the Urban/Rural Tax Districts. Lori explained that after speaking with the Department of Revenue, it was learned that the County was not calculating the tax rates properly based on an October, 1992, Directive from the Department of Revenue and once the proper calculation was applied, the Rural rate was once again lower than the Urban rate. However, she indicated that the Rural rate is now approximately 7% lower than the Urban rate and in the past the difference had been approximately 2-1/2%. Lori indicated that because State law indicates that any change to the Urban and Rural Taxing Districts, including a change in the ratio, must be done prior to August 1 of the year preceding the tax year, any change for the 1993 payable tax year would have had to been done prior to August I, 1992. She stated that she had requested that the Department of Revenue waive that date given the circumstances so that a correction could be made. The Department would not waive the August 1 date, therefore, the City cannot make any change to the Urban/Rural Taxing District for taxes payable 1993. This information will be presented to the City Council prior to August I, 1993, so that a change can be made for taxes payable 1994. COUNCILMEMBER SCHEEL MOVED TO CANCEL THE MARCH 22, 1993, PUBLIC HEARING ON URBAN AND RURAL TAXING DISTRICTS. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.4. Call 2/17/93 City Council/Utilities Commission Meeting The City Administrator indicated that a joint meeting between the City Council and Utilities Commission was needed to discuss utility issues. Mayor Duitsman briefly updated the Council on his discussion with a Commission member who indicated that the Utilities will pay for the wells and thinks that the water utility can generate additional funds to pay for other projects. Terry Maurer gave an update on the progress of the water tower project. Councilmember Scheel questioned the water tower location and whether or not it would be more appropriate to move the tower farther north. City Engineer, Terry Maurer, explained the rationale behind the location of the water tower. COUNCILMEMBER DIETZ MOVED TO CALL A JOINT MEETING OF THE CITY COUNCIL AND UTILITIES COMMISSION FOR FEBRUARY 17, 1993, AT THE POWER PLANT AT . . . Capital Improvement Program Minutes February 15, 1993 Page 3 6:00 P.M. COUNCILMEMBER FARBER SECONDED THE MOTION. CARRIED 4-0. THE MOTION 4.5. Mayor Duitsman Update on Fire Relief Association Mayor Duitsman informed the Council that he had attended the Fire Relief Association meeting. He explained that the Fire Relief Association is considering switching from a defined benefit to a defined contribution retirement plan. He indicated that would be to the City's benefit. Mayor Duitsman was concerned that the Council review the investments of the Fire Relief Association as the City has responsibility over those investments. Finance Director, Lori Johnson, gave a brief history on the changes that have been made in the last several years in the Fire Relief Association's investments. She noted that the Fire Relief Association now meets State requirements whereby less than 75% of their investments are held in mutual funds. Lori further indicated that much progress has been made in getting the Fire Relief Board to more closely review its investments and change its investment procedures. Mayor Duitsman indicated that he had spoken with the Fire Chief regarding a satellite station which may be located in Otsego. A brief discussion took place on financing the Fire Relief Association and fire expenditures. 4.6. Highway 101 Update Pat Klaers, City Administrator, updated the Council on the Highway 101 project. The bid letting for Highway 101 has been accelerated. Pat indicated that original completion was scheduled for fall, 1995, and this has been moved to fall, 1994, for the stretch of road between the Mississippi River to County Road 42. Pat stated that the rest of the project will remain on schedule. 4.7. Check Register COUNCILMEMBER SCHEEL MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5. Discussion on Capital Improvement Program Mayor Duitsman turned the meeting over to Pat Klaers for discussion on the Capital Improvement Program. It was agreed that the City Council would pick up where it had left off at the last CIP meeting. The City Administrator reviewed the 1990 Capital Improvement Plan to update the City Council on projects remaining from that list. There was a discussion on the western area utility and road improvement project including a discussion regarding the fairgrounds property and the need for the City to acquire approximately 2 acres from the County for road and utility purposes. . . . Capital Improvement Program Minutes February 15, 1993 Page 4 There was further discussion on the possibility of the City purchasing a portion of the fairgrounds parking lot. The City Administrator continued his review of the 1990 Capital Improvement Project list. There was discussion on the sale of the UPA property and the possibility of a Chamber Office locating on this parcel. Councilmember Scheel questioned whether the City was ga~n~ng anything by selling this property to UPA or if it would be better off selling the property to someone else. Councilmember Dietz indicated that the previous City Council did not want to sell the property for retail or commercial use because the Council did not want more traffic on an already congested corner. Councilmember Scheel opened a discussion on the road from the Liquor Store through Rons Food's parking lot. She felt that the road was not functioning properly and requested that something be done to improve the situation. Pat Klaers indicated that staff and previous Councils had discussed this project before, however the options for improving the situation were very expensive, therefore no major changes had been made. Mayor Duitsman requested that east/west traffic patterns connecting to Anoka County '22 be added to the list of future projects. He felt that the City should designate a roadway for east/west traffic at this time. Terry Maurer indicated that the traffic study should be complete in mid March and at that point the City Council can change the MSA designation and redesignate a portion of the MSA mileage for an east/west traffic route. Mayor Duitsman indicated that he would like a road location planned some time this year. The City Administrator went over the 1993-97 projects and described each project. The City Council recessed at 8:00 p.m. and reconvened at 8:10 p.m. There was discussion on the Wastewater Treatment System expansion. Terry Maurer reviewed his February 3 and February 8 memos with the City Council. He indicated that the revised plan shows a 3 million gallon per day capacity. Terry stated that in order for the City to use this capacity, it would need to grow 5% for the next twenty years and the current service area would need to be expanded slightly. There was discussion on the size of the plant and the City of Otsego's request for use of the City's Wastewater Treatment Plant. Mayor Duitsman said that economics will dictate whether this is a 2.2 million or 3 million gallon per day expansion. It was the consensus of the City Council that Terry proceed with the expansion plans. Terry Maurer updated the City Council on the variance request to the MPCA which would allow the City to possibly increase its discharge into the Mississippi River. He estimated that the cost to apply for the variance would be approximately $1,000. However, if the variance was approved, there would be substantial savings on the construction of a new facility because the cost of treating the sewage to meet the MPCA standards would be decreased. . . . Capital Improvement Program Minutes February 15, 1993 Page 5 COUNCILMEMBER SCHEEL MOVED TO REQUESTING A VARIANCE FROM MPCA. MOTION. THE MOTION CARRIED 4-0. AUTHORIZE TERRY MAURER TO PROCEED WITH COUNCILMEMBER FARBER SECONDED THE Pat Klaers indicated that the City Council had received an old East Highway 10 feasibility study. There was discussion on that feasibility study including the fact that the sewer cost is only one-half of the water cost, the timing of the water project, that extra sewer capacity would not be available in 1996, and the issue of how to finance the $1.2 million incurred to extend utility lines before reaching any assessable property. The City Administrator discussed the Jackson Avenue/Highway 169 feasibility study indicating that a water tower and well are necessary and that financing a water tower would be a major item of discussion at the joint City Council/utilities Commission meeting. Discussion took place on the Elk Park Center development including the traffic study and EAW. Councilmember Farber questioned the numbers in the traffic study, wondering whether the information presented at the neighborhood meeting was accurate. The City Administrator informed the City Council that he had given special assessment estimates to the Elk Park Center developers which would include both the internal and external development costs. Terry Maurer indicated that the County had agreed that improvements should be made to CSAH #1. He provided a resolution which would allow the City to proceed. The resolution includes a statement that Maier Stewart and Associates would provide interim financing for the engineering portion of the project and those charges would be billed at a later date when the project proceeds. This project would be funded totally by County funds. COUNCILMEMBER DIETZ MOVED TO APPROVE RESOLUTION 93-4, A RESOLUTION REQUESTING SHERBURNE COUNTY PROGRAM THE UPGRADING OF COUNTY STATE AID HIGHWAY 1 (CSAH #1) FROM THE INTERSECTION OF COUNTY ROAD #77 TO THE INTERSECTION OF COUNTY ROAD #32 FOR 1994. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. The City Administrator updated the City Council on the Lake Orono dredging issue. He indicated that there is a homeowners meeting on Thursday, and Mayor Duitsman would be in attendance. There was discussion regarding the fact that Lake Orono is a river and not a lake. Terry Maurer gave the Council some history on the project. Councilmember Scheel indicated that she did not feel that this was a City issue. Terry Maurer indicated that he would work with Street/Park Superintendent, Phil Hals, to establish a base to see if there really is a sediment problem. Discussion took place regarding the sale of the City's property on Highway 169. The Council agreed that it is appropriate to sell that property and authorized staff to negotiate the sale of that property. . . . Capital Improvement Program Minutes February 15, 1993 Page 6 There was discussion on the storm drainage plan. indicated that he would like to have it on the March 1 Hals stated that Phase II of the storm drainage plan to Maier stewart would be a very useful tool for both his the Building and Zoning department. Mayor Duitsman agenda. Phil be completed by department and Councilmember Farber indicated that he would like to attend the "Beyond the Basics" planning workshop. The City Administrator will register Councilmember Farber for the April a, session. The City Administrator discussed the letter from Bob and Ann Oster regarding their assessment for the western area improvement. The letter will be published in the star News. The City Administrator pointed out to the Council several errors in the letter. First, City Hall did not drive the project. This project had been planned fOr several years. Second, the road which Ann Oster is referring to was not redone two years ago, that was simply an overlay in order to hold the road together until a major reconstruction project was completed. Third, assessments are always done in open meetings. Fourth, the previous assessment of $aOO that the letter refers to was a sewer trunk assessment. Fifth, it is not necessary to have an attorney in order to appeal an assessment. There was a brief discussion on the special assessment process. Councilmember Scheel was concerned that all property owners be aware of the process they need to go through to appeal an assessment. Staff indicated that a letter goes out to each property owner outlining the steps necessary to appeal an assessment and further that the City Attorney reiterates that information at the special assessment hearing. 6. Adjournment COUNCILMEMBER FARBER MOVED TO ADJOURN THE MEETING. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Elk River City Council Capital Improvement Program Work Session adjourned at 10:10 p.m. Respectfully submitted, 7t (9.~ (1/vVl ;>ev\ f. Lori JoK~son ~) Finance Director