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06-29-1992 CC MIN - JOINT . . . JOINT MEETING OF THE ELK RIVER CITY COUNCIL AND THE ELK RIVER MUNICIPAL UTILITIES COMMISSION HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 29, 1992 CITY COUNCIL PRESENT: Mayor Tralle, Councilmembers Schuldt, Dietz, Kropuenske and Holmgren UTILITIES COMMISSION MEMBERS PRESENT: President George Zabee, Trustee Jim Simpson, and Trustee (and Mayor) Jim Tralle UTILITIES STAFF PRESENT: General Manager Bill Birrenkott and Bob McCartney CITY STAFF PRESENT: Pat Klaers, City Administrator; Lori Johnson, Finance Director; Sandra Thackeray, City Clerk; Terry Maurer, City Engineer; Peter Beck, City Attorney 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 Mayor Tralle. 2. Consider 6/29/92 City Council Agenda Item 6.1, Lake Orono Silting Problem, was added to the agenda. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 6/29/92 AGENDA AS AMENDED. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3.1. Ms. Elk River Proclamation COUNCILMEMBER SCHULDT MOVED TO ADOPT A PROCLAMATION PROCLAIMING MS. ELK RIVER WEEK JUNE 22-26, 1992. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Joint City Council/Utilities Commission Meeting Bill Birrenkott distributed a report from himself which was an update of the Elk River Utilities activities. 4.1. Water Towers and Wells Terry Maurer explained that the issues relating to water towers and wells is how to that w~ll be needed in the western area of need for a water tower and well near the Avenue and Highway 169. that need to finance the the City, and intersection be reviewed water tower the potential and Jackson Discussion was held regarding the need for a water tower and well near the intersection of Jackson Avenue and Highway 169. Terry Maurer indicated that a feasibility study has been completed for the area. The report recommended that for total commercial and residential Elk River City Council Minutes June 29, 1992 Page 2 . development of the area, a new well and a minimum of a one-half million gallon water tower needs to be constructed in that site. Discussion was held as to whether or not it was appropriate to have taxpayers pay for the utilities in this area. Possible financing methods of the improvements were discussed. Some suggested financing methods included payment by the developers, an area-wide assessment policy which would assess old and new development in the area, City contributions, increase in water connection fees, a possible two tier water rate structure, and an assessment for the entire City (for water that is used as fire protection). The Council discussed the differences between the western area water tower and the Jackson Avenue water tower. It was indicated that the Municipal Utilities will be paying for the wells in the western area. Discussion was held regarding whether the Utilities had previously agreed to pay for one well or all three wells. Terry Maurer indicated that three wells will be needed eventually in the area and it was the City's understanding that the utilities committed to paying for all three wells. The total cost for the wells (and treatment) was estimated at one million dollars in 1989 when this was discussed by the Utilities Commission. Commission members recalled this amount being discussed. . The City Administrator stated that the City also has RDF TIF money that has been designated for expansion of the utilities in the western area. He indicated that this money may be used for the water tower in the western area. The City Council is currently evaluating now to spend these funds. The City Administrator indicated that the City and Utilities will also have to look at other methods of financing the western area water tower. It was the consensus of the Council that the City's assessment policy be revised to more clearly state that water tower assessments for commercial property be assessed more than residential property. The Council directed City staff to begin working on a method to finance the one-half million dollar water tower and well near Highway 169 and Jackson. 4.2. Electric Utility Update Bill Birrenkott explained that the Elk River Municipal Utilities have reached an equitable solution regarding the Anoka Utilities territory acquisition. He indicated that the Elk River Municipal Utilities plan on beginning the actual assumption of some of the Anoka Electric Cooperative properties on August 1, 1992. He further stated that the entire process will take up to six years and could cost the Municipal utilities between $1,500,000 and $2,000,000. . Bill Birrenkott indicated that the Elk River Municipal Utilities are in the process of creating a new substation on the site of the present west substation in order to bring in more power to serve future loads and back up existing loads. ~lk River City Council Minutes June 29, 1992 Page 3 . Bill Birrenkott reviewed some of the operating conditions of the Utilities including tree trimming and meter reading. He also reviewed the rate structure of the electrical service in comparison to other utility companies. He indicated that the Elk River Municipal Utility residential rates are significantly lower than other surrounding utility companies. He further stated that the Elk River Municipal utilities has not had a general rate increase for the last ten years. Bill home this Birrenkott infOrmed the Council protection security systems for two years. that the Utilities is offering to customers and have been offering Bill Birrenkott discussed the water utility operation with the Council. He indicated that the water utility operates with one half of an operating person (Bob McCartney). 4.3. utilities Contribution to City . The Utilities yearly contribution to the City was discussed. Mayor Tralle indicated that the Utilities Commission annually pays the City $72,000 in lieu of taxes. He further stated that in addition to the $72,000, the Utilities Commission make several other donations to the City such as payment for street lights, electricity and other miscellaneous payments. He indicated that in 1991, adding all the other donations to the City together with the $72,000, an amount of $171,349 was donated to the City by the Utilities. Mayor Tralle indicated that he did not feel it would be a good idea for the utilities to make payments to the City on a percentage of usage basis, especially at this time, because of the amount of money required for the AEC territory purchase, the substation addition and payment for the wells in the western area. Pat Klaers indicated he partners in the City City a share in the Utilities. Pat also the utilities report District donations and would like the City and the Utilities to be growth. A percentage commitment would allow the growth of the electric revenues with the noted that some of the city donations listed in are actually Chamber of Commerce or School not City items. It was the consensus of the Council and Utilities to continue payments to the City in a lump sum and to continue the current miscellaneous contributions the utilities are providing the City. 4.4. Street Lights . Bill Birrenkott indicated that the Utilities Commission has appointed a street Light Committee consisting of Glenn Sundeen, George Zabee and Tom Zerwas. He indicated that the Committee will be meeting shortly to determine certain areas in the City in which street lights should be provided. The Council requested that the Westwood improvement project area be considered for lights as outlined in a previous City Engineer letter to the Utilities General Manager. . . . Elk River City Council Minutes June 29, 1992 Page 4 and style of lights for the area and that the City and Utilities will pay for the lights. 4.5. New State Laws Lori Johnson, Finance Director, reviewed the new State Law regarding payment of sales tax for electrical and water utilities. She requested the Utilities Commission to consider a special government rate for the City which would allow the elimination of sales tax. It was the consensus of the Council and Utilities Commission to set a government rate for the City of Elk River for payment of utilities. 4.6. Water Master Plan Terry Maurer, City Engineer, indicated that the City has a 1982 Water Utilities Comprehensive Plan. He indicated that this plan is in the process of being updated. Mayor Tralle suggested that a joint meeting between Utilities and City Council be held prior to formal approval of the new plan. 4.7. Building Improvement Projects Bill Birrenkott informed the City Council that the utilities Commission will be undertaking two building construction activities this summer. One is a facelift of the existing Utilities building and the other is the reconstruction of the well house at the old creamery site. He stated that a clean up of the downtown parking area should be done in conjunction with the facelift of the utilities building. Trustee Simpson requested the City to consider overlaying the parking lot and to look at the drainage in that area. John Weicht was present and questioned what the City Council decision was regarding the proposed water tower for the Jackson Avenue/Highway 169 area. Mayor Tralle explained that the Council discussed this issue at the beginning of the meeting and explained that staff will be looking at assessing the benefitted areas for the water tower in conjunction with other sources of funding for the water tower. The Council recessed at 9:00 and reconvened at 9:10 p.m. 5.1. Resolution of Summary Publication for Utilities Ordinance The City Clerk indicated that the City Council adopted an ordinance amending Chapter 1300 pertaining to sanitary sewer connections at the June l~ Council meeting. She stated that staff is requesting to publish a summary of the ordinance which must be done by resolution. COUNCILMEMBER SCHULDT MOVED TO ADOPT RESOLUTION 92-57, APPROVING NOTICE OF PUBLICATION OF ORDINANCE 92-17. KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. A RESOLUTION COUNCILMEMBER . . . ~lk River City Council Minutes June 29, 1992 Page 5 5.2. Consideration of Liquor License Renewals Sandy Thackeray, City Clerk, informed the Council that liquor licenses expire on July 1. She indicated that all liquor license establishments have submitted the required applications, liquor liability insurance or waiver forms and license fees. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE RENEWAL OF ALL OF THE LIQUOR LICENSES LISTED ON THE COUNCIL AGENDA MEMO FROM SANDY THACKERAY, CITY CLERK, DATED JUNE 24, 1992. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.3. Health Insurance Approval Lori Johnson, Finance Director, informed the Council that the City's present insurance group, Medica, has increased the City's rates by 15% effective August I, 1992. She indicated that Group Health has agreed to accept the City as a group without health history information. Lori Johnson requested to advertise for bids for health insurance providers and to accept the bids on July 29. COUNCILMEMBER KROPUENSKE MOVED TO GO OUT FOR BIDS FOR HEALTH INSURANCE PROVIDERS FOR THE CITY OF ELK RIVER AND TO RUN THE BID PERIOD FROM JULY 8 TO JULY 29. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. Councilmember Holmgren indicated his concern regarding the high cost of health insurance for the City and employees. He indicated that the City is receiving the cadillac of health insurances and stated that the City should consider an 80/20 plan which would lower the cost to both the City and the employee. MOTION CARRIED 5-0. COUNCILMEMBER DIETZ MOVED TO CALL A SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL ON JULY 29, 1992, AT 5:00 P.M. TO BE HELD AT THE ELK RIVER CITY HALL FOR THE PURPOSE OF CONSIDERING HEALTH INSURANCE BIDS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.4. Review Highway 169/Main Street Appraisals The City Administrator indicated that the City has had appraisals completed by Panger and Benson for property on the south side of Main Street at Highway 169. The City Administrator indicated that the property purchases will be funded through MSA Funds. He indicated that there are two property owners, Doctor Howard Johnson and Mr. Earl Hohlen. He stated that Doctor Johnson has agreed to accept the apprais~l dollar amount for his property, however, an agreement on the purchase price for Mr. Hohlen's property has not been reached. COUNCILMEMBER HOLMGREN MOVED TO OFFER DOCTOR JOHNSON $19,909 FOR 3,872 SQUARE FEET OF HIS PROPERTY TO BE USED FOR RIGHT-OF-WAY. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. ~lk River City Council Minutes June 29, 1992 Page 6 . COUNCILMEMBER HOLMGREN MOVED TO OFFER EARL HOHLEN THE APPRAISED VALUE OF $125,823 FOR HIS TWO PARCELS OF PROPERTY FOR RIGHT-OF-WAY PURPOSES. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. It was the consensus of the Council to continue working with Mr. Hohlen in negotiations for his property and a right of entrance to his property so that construction of the project can take place in 1992. 5.5. Consider Traffic Signs The City Administrator indicated that at a previous Council meeting, the Council authorized the installation of a crosswalk south of Jefferson Lane. He stated that the Street Superintendent has since further evaluated the crosswalk and is requesting the Council to authorize the installation north of Jefferson Lane. COUNCILMEMBER HOLMGREN MOVED TO MOVE THE LOCATION OF THE CROSSWALK FROM THE SOUTH SIDE OF JEFFERSON LANE TO THE NORTH SIDE OF JEFFERSON LANE AT FREEPORT AVENUE. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. . COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE PLACEMENT OF A STOP SIGN AT AUBURN PLACE AND 5TH STREET AND ALSO TO AUTHORIZE A WARNING SIGN INDICATING A WHEEL CHAIR AT BALDWIN AVENUE AND 5TH STREET AND TWIN LAKES ROAD AND 5TH STREET. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.6. Landfill Update The City Attorney distributed a memo from himself to the City Council regarding Elk River Landfill. Peter Beck reviewed the situation with the City Council. He indicated that the first conditional use permit for the Elk River Landfill was issued in 1988 and a renewal was authorized in 1990. He stated that the Elk River Landfill never signed the conditional use permit renewal. He further indicated that there is a bonding provision in the conditional use permit requiring the Landfill to furnish a surety bond in the amount of $300,000 to ensure compliance with terms and conditions of the conditional use permit and license and to protect the City in the event the City has to expend monies for Landfill clean up activities as a result of the Landfill's failure to do so. Elk River Landfill requested that the City allow an escrow account option in lieu of the bonding requirement. He further indicated that the bonding requirement and escrow option were both in the Landfill's original conditional use permit. . The City Attorney stated that a bond has never been posted by the Elk River Landfill and the escrow account was never funded until late 1991 when $2,453.14 was deposited in the escrow fund. He further indicated that since the deposit into the escrow fund, the City has received a letter from the Landfill's attorney requesting that the conditions be deleted from the conditional use permit and license. He further stated that the City has not received any further payment into the escrow fund since the late 1991 payment and also that the Landfill has not paid past due City license fees and other City Landfill related expenses. . . . ~lk River City Council Minutes June 29, 1992 Page 7 The Council discussed different options which the City could take in order to receive payment from the Elk River Landfill. COUNCILMEMBER HOLMGREN MOVED TO START LEGAL ACTION AGAINST THE ELK RIVER LANDFILL TO RECOVER THE DELINQUENT FEES OWED TO THE CITY WITH THE STIPULATION THAT THE LEGAL ACTION BE STARTED WITHIN 30 DAYS AFTER CONTACT WITH THE ELK RIVER LANDFILL AND THAT PAYMENT BE MADE TO THE CITY WITHIN 90 DAYS FROM THE DATE OF ANY AGREEMENT MADE BETWEEN THE CITY AND ELK RIVER LANDFILL. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.1. Lake Orono Silt Conditions Terry Maurer informed the Council that he has been in contact with Lake Orono's Homeowner's Association. He stated that he has informed the homeowners that no action has been taken regarding the study of the silt in Lake Orono. He indicated that the City will be looking at the situation some time in the fall and that he would update the homeowners at that time. 7. City Administrator Update Roads The City Administrator updated the Council regarding the Orono Road status for the 4th of July and also updated the Council regarding the parade route. Towing The City Administrator informed the Council that it is the City of Elk River and Boelter's Towing will regarding payment for a vehicle which was towed by indicated that the court decision will help responsibility of Boelter's Towing versus the City's The Council discussed the City's option to hire out its very likely that be going to court Boelter's. He to clarify the responsibility. own towing. Westwood Project The City Administrator informed the Council that he has received a letter from Mr. Ken Case regarding the Westwood Subdivision. He indicated that Mr. Case is unhappy with the placement of the water and sewer lateral pipes. He indicated he would like both pipes to extend farther down along the front footage of his home. The City Administrator indicated that Terry Maurer has responded to Mr. Ken Case, however, Mr. Case is not satisfied with the City Engineer'S response. Terry Maurer explained that he feels Mr. Case has bean treated no differently that any other property owner involved in the project and also indicated that he has worked with Mr. Case in the location of the water and sewer pipes. Elk River City Council Minutes June 29, 1992 Page 8 . It was the consensus of the City Council that no action be taken and if Mr. Case is still unhappy, he should appear before the City Council and make his request in person. The City Administrator informed the City Council that there were three property owners involved in the l89th Avenue change order to the Westwood Project regarding the replacement of the street. He indicated that two of the owners have signed a waiver to the assessment, however, the third owner has requested that the street not be replaced and informed the city that he would not sign the waiver. It was the consensus of the Council to continue with the change order in the replacement of the street. 8. Adjournment There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE MEETING. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River City Council adjourned at 10:25 p.m. Respectfully submitted, . ).~4 :::II-; Ci..-CJce/L4-f Sandra Thackeray (~) city Clerk .