Loading...
05-04-1992 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY, MAY 4, 1992 MEMBERS PRESENT: vice Mayor Holmgren, Councilmembers Kropuenske and Dietz MEMBERS ABSENT: Mayor Tralle and Councilmember Schuldt STAFF PRESENT: Patrick Klaers, City Administrator; Lori JOhnson, Finance Director; Sandra Thackeray, City Clerk; Bill Rubin, Economic Development Coordinator; and Peter Beck, City Attorney ALSO PRESENT: Gary Groen, City AUditor and Rusty Fifield, Bond Consultant 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 7:00 p.m. by Vice Mayor HOlmgren. 2. Consider 5/4/92 City Council Agenda .. Councilmember Kropuenske added Item 9.1. - Jarvis Street, to the agenda. The 5/4/92 City Council agenda was approved by Council consensus. 3.1. 4/20/92 City Council Minutes COUNCILMEMBER DIETZ MOVED TO APPROVE THE 4/20/92 CITY COUNCIL MINUTES. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 2-0-1. Councilmember Kropuenske abstained due to his absence at the meeting. 3.2. 4/21/92 City Council Minutes COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE 4/21/92 CITY COUNCIL MINUTES. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 3.3. 4/27/92 City Council Minutes COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE 4/27/92 CITY COUNCIL MINUTES. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 3.4. 4/29/92 Board of Review Minutes COUNCILMEMBER DIETZ MOVED TO APPROVE 4/29/92 BOARD COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. 2-0-1. Vice Mayor Holmgren abstained due to OF REVIEW MINUTES. THE MOTION CARRIED his absence at the . . . city Council Minutes May 4, 1992 Page 2 meeting. He indicated that he did not attend the meeting because he is a County employee and it would create a conflict of interest. 4. Open Mike No one appeared for this item. 5. Discussion of Land Use Between Highway 169 and Jackson Road North of school street Councilmember Dietz stated that he had received several requests for this issue to appear before the City Council so that citizens may voice their concerns. Gary Santwire introduced the following people for this issue: Roger Scherer; Linda and Russ Norha and David Decker, REP, Ltd.; Paul Bell; Dave Locker from True Value; and John Griese, Legal Counsel for REP, Ltd. George Dietz was represented by a letter from his legal counsel. John Griese stated that it has been requested that this item appear before the Council because of a decision which the Council previously made regarding friendly condemnation of the Dickenson property. He indicated that in a letter submitted to Mr. Dickenson by the City's Attorney, it was stated that the City Council concluded that the proposed development mentioned in the April 3,~Ericson letter is in the best interest of the City. Mr. Griese stated that the City Council made this determination without public input. Mr. Griese requested the council to reconsider the April 6 Council discussion and also to reconsider the motion authorizing the City's Attorney to threaten condemnation proceedings against Mr. Dickenson's land. Mr. Griese reviewed some history regarding the development of the Elk River mall. He stated that when the mall was proposed, there was concern as to the type of retail business proposed for the mall and the affect the new businesses would have on existing retail stores in the downtown area. Mr. Griese further indicated that the City Council had received much public input regarding the mall issue. Councilmember Kropuenske stated that the Council decision in regard to Mr. Dickenson's property was not a blanket development approval, nor was it an approval for a specific project. He stated that it was an indication that the Council would be considering the property for commercial uses. He stated that the process of council review and public input will come later when a development proposal has been submitted. Mr. Roger Scherer suggested that the City stay out of the development business so that he can have a chance to fill the shopping center. He stated that the letter sent by the City's Attorney to Mr. Dickenson makes it impossible to find tenants for the shopping center. Mr. Russ Norha questioned how the Council could determine that this action was in the best interest of the businesses, citizens, and people of Elk River. . . . City Council Minutes May 4, 1992 Page 3 Patrick Klaers, City Administrator responded that the letter was written to indicate the City Council's support for commercial development in the area and not for anyone particular development. The City Administrator further indicated that the City has not endorsed a particular project, nor has the City approved any project. John Weicht, a partner in the proposed development, indicated that Cub Foods has signed the final agreement papers on the proposal and have indicated their intention to come to Elk River. Paul Bell indicated his concern regarding the City assisting incoming businesses. He stated that he loses his advantage when the City is involved in assisting new businesses. Gary Santwire requested the Council to withdraw the letter sent to Mr. Dickenson regarding the friendly condemnation and further requested the City to not get involved in subsidizing commercial development. David Decker stated that he had the same concern as Paul Bell. He stated that friendly condemnation is substantial assistance and gives the edge to other developers. John Weicht indicated that Bill Dickenson signed the sales agreement based on the letter of condemnation. Peter Beck, City Attorney, indicated that the letter does not start condemnation proceedings. It is only an indication of the City's intent to acquire the property. He further stated that the there is no liability to the City because of the letter. Peter Beck further advised the City Council that there has been no financial assistance offered or granted to this project. Vice Mayor Holmgren stated that the night the letter was authorized by the Council, there was no thought by the Council regarding a certain development. He further stated it was not the intention of the City Council to give anyone an advantage over other developers. He further stated that he did not want to make a decision on this issue because there are two Councilmembers absent from this meeting. Councilmember Kropuenske indicated that the letter to Mr. Dickenson may reflect more of an endorsement than intended by the City Council. He stated that the City Council was looking at the fact that the roads and utilities must be installed in the area before any development occurs. He further indicated that if development is going to occur in the area, the City must look at these issues in order to make the development happen correctly. Councilmember Dietz indicated that he would take all that was said tonight into consideration before making a decision. COUNCILMEMBER DIETZ MOVED TO CONTINUE THE DISCUSSION ON THIS ISSUE UNTIL THE MAY 18, 1992, CITY COUNCIL MEETING. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0. City Council Minutes May 4, 1992 Page 4 ~ 6.1. Resolution Setting Bond Sale Date Series 1992A G.O. Bonds and 1992B G.O. State Aid Road Bonds Lori Johnson, Finance Director, indicated that the City is requesting to sell G.O. Improvement Bonds in the amount of $3,445,000 for the Westwood Area and Western Area Improvement Projects. Rusty Fifield, from Springsted, Inc. was present to discuss the proposed General Obligation Improvement Bonds. Rusty explained that the $2,350,000 General Obligation Improvement Bond was for the Western Area and Westwood Area improvement projects. He indicated that special assessment revenues would be used for repayment of the debt. Rusty Fifield further explained that the second General Obligation State Aid Road Bond was in the amount of $1,095,000. He indicated that this bond is used to cover the MSA portions of the Western Area Project, the Main Street Bridge replacement, intersection improvements at Highway 169 and Main Street, and intersection signalization at 193rd and Main Street. COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 92-35, A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $2,350,000 IN GENERAL OBLIGATION IMPROVEMENT BOND SERIES 1992A. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0. ~ COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 92-36, A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $1,09~,000 GENERAL OBLIGATION STATE AID ROAD BOND SERIES 1992B. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 6.2. Highway 101 The City Administrator indicated that MnDOT has submitted material for Council review relating to the Highway 101 improvement project. He stated that the project is ready to move forward and that MnDOT is requesting the City Council to adopt a resolution which approves the preliminary layout for the improvements. The City Administrator indicated that Terry Maurer has recommended that the Council adopt the resolution with the stipulation that one more discussion be held with MnDOT to indicate the City's concern regarding the design of the highway. The Council reviewed this traffic safety concern as outlined in a May 4, 1992 memo from the City Engineer. COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 92-37, A RESOLUTION AUTHORIZING LAYOUT APPROVAL FOR HIGHWAY 101 WITH THE STIPULATION THAT THE CITY DISCUSS THE REMAINING ELK RIVER HIGHWAY DESIGN CONCERN WITH MNDOT. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0. 6.3. Blandin Foundation Information ~ The City Administrator stated that the County has received a $60,000 leadership grant from the Blandin Foundation. The purpose of the program is to strengthen rural communities through improved team leadership. It was the consensus of the Council to offer the opportunity to members of City staff who are interested to attend. . . . City Council Minutes May 4, 1992 Page 5 6.4. Action on City Attorney Services The City Administrator indicated that the City Council has heard presentations from David Sellergren and Peter Beck regarding City Attorney services. The Council reviewed both presentations. It was the general consensus of the City Council that the decision is a difficult one to make. It was further indicated that the Council felt comfortable with the present services of Larkin Hoffman and further that Larkin Hoffman offered more municipal experience in law than Dave Sellergren's new firm. COUNCILMEMBER DIETZ MOVED TO RETAIN THE LARKIN, HOFFMAN, DALY, LINDGREN LAW FIRM. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0. 6.5. Call Special City Council Meeting COUNCILMEMBER KROPUENSKE MOVED TO CALL A SPECIAL CITY COUNCIL MEETING ON MAY 11, 1992, FOLLOWING THE EDA MEETING AT APPROXIMATELY 8:15 P.M. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0. 8. Check Register Lori Johnson indicated that she would like to add a check to the check register in the amount of $325 for April c~eaning services of Police Department. COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE CHECK REGISTER $325 ADDITION. VICE MAYOR HOLMGREN SECONDED THE MOTION. CARRIED 3-0. WITH THE THE MOTION 9.1. Jarvis Street Councilmember Kropuenske indicated that at the Board of Review meeting a concern was raised by Dennis Peterson regarding the condition of Jarvis Street in the northern area of the City. The City Administrator stated that phil Hals, the City Street Superintendent, would look into the matter and report back to Councilmember Kropuenske with an update. 10. City Administrator Update The City Administrator updated the Council on the Handke fire. The City Council recessed at 8:30 p.m. and reconvened at 8:38 p.m. 7. 1991 Audit Presentation Gary Groen, of Abdo, Abdo and Eick, presented the City's 1991 Audit report to the City Council. Gary Groen explained that the City's fund balance at the end of 1991 was about $37,000 more than the 1990 fund balance. He explained that the fund balance is necessary to finance the first four to five months of government operations until property tax credits and local government aid are received. He indicated that the City's fund balance in 1991 represents approximately 26.5% of the . . . City Council Minutes May 4, 1992 page 6 anticipated expenditures for 1992. He stated that the fund balance has progressed in the last five to six years. He further indicated that there is still about a month to six weeks in which the City operated with a deficit. He stated that the City's goal should be to increase the fund balance to provide sufficient capital to operate the City without borrowing money until City revenues become available. The enterprise funds were reviewed by Gary Groen. Gary commented on the fact that some employee time is not being charged into the garbage service fund, therefore, the operating income does not fully reflect the cost of the operation. Gary Groen indicated that the Liquor store's operating income is very good and that it is a very profitable operation which finances a lot of City services. Discussion was held regarding the utilities annual transfer to the City of $72,000. It was indicated that this amount has not been increased since 1987. The Council discussed the possibility of requesting an increase from the Utilities. Pat Klaers indicated that although the dollar amount contributed by the Utilities has not increased since 1987, the Utilities does now pay some of the City's electric bills. Following the City's audit presentation, Gary Groen informed the Council that the City of Elk River was in gooo shape; however, the fund balance could be a little higher. Councilmember Kropuenske thanked the finance staff for 1991. The City Council and Gary Groen commented on the put out by the Finance Department with so few employees. their work in amount of work It was the consensus of the City Council to accept the 1991 City Audit as presented. 11. Adjournment There being THE MEETING. CARRIED 3-0. no further business, COUNCILMEMBER DIETZ MOVED TO ADJOURN COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION The meeting of the Elk River City Council adjourned at 10:00 p.m. Respectfully submitted, /f ~4f~~~ Sandra Thackeray .~ City Clerk