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10-12-1992 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY, OCTOBER 12, 1992 MEMBERS PRESENT: Mayor Tra1le, Counci1members Dietz, Kropuenske, Schuldt, and Holmgren MEMBERS ABSENT: None STAFF PRESENT: Lori Johnson, Finance Director; Pat Klaers, City Administrator; Sandra Thackeray, City Clerk; Peter Beck, City Attorney; and Terry Maurer City Engineer 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order by Mayor Tral1e at 8:15 following the Economic Development Authority meeting. 2. Consider 10/12/92 City Council Agenda COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE AGENDA. COUNCILMEMBER KROPUENSKE SECONDED CARRIED 5-0. 10/12/92 CITY COUNCIL THE MOTION. THE MOTION 3.1. Consider 9/28/92 City Council Minutes Mayor Tral1e noted that on Page 9 of the minutes, the second paragraph should state "Vice Mayor Holmgren" instead of "Mayor Tralle." COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 9/28/92 CITY COUNCIL MINUTES AS AMENDED. COUNCILMEMBER KROPUENSKE SECONpED THE MOTION. THE MOTION CARRIED 4-0-1. Mayor Tra1le abstained due to his absence from the meeting. 3.2. Consider 10/5/92 City Council Minutes The following corrections were made to the 10/5/92 City Council minutes: - Under Item 5.5 - the sentence referencing unpaid balances until the end of the year should state until September 1 - Item 7.7 the last sentence should state that it was the consensus of the City Council Council to authorize Lori Johnson to have a consultant review the phone specs at an amount not to exceed $750. - Item 9.2 - the following sentence should be added to the end of the paragraph "Councilmember Holmgren responded by stating that he requested the Utilities to see if it would be feasible for them to do the garbage billing and then to make a presentation to the City Council regarding what it would entail to turn the garbage billing over to the utilities." . . . City Council Minutes October 12, 1992 Page 2 COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 10/5/92 MINUTES AS AMENDED. COUNCILMEMBER SCHULDT SECONDED THE MOTION CARRIED 5-0. CITY COUNCIL MOTION. THE 4. Open Mike No one appeared for this item. 5. Consider Adoption of Western Area Assessment Roll Pat Klaers, City Administrator, stated that at the September 28, 1992, City Council meeting, the Council held a public hearing regarding the Western Area Assessment Project. He indicated that one major issue that was left undecided related to the farm land properties that were proposed to be assessed for the trunk water and sewer improvements. Pat Klaers stated that the Council must decide whether the farm properties should be assessed as originally proposed or whether it would be appropriate to provide some type of alternative relating to the assessment and the interest on the Green Acre properties. Pat Klaers stated that the City staff has completed a survey regarding agricultural land assessments. He stated that most of the municipalities surveyed assess the agricultural land. He further stated that there were some municipalities that worked with the agricultural land owners and excluded or delayed the assessment to the land. He stated that staff is recommending that the Council assess the properties as originally proposed. Mayor Tralle opened the public hearing. Irv Moldenhauer stated that if their property was assessed as originally proposed, all the lots would have to be sold right away in order to compensate for the assessment cost. He stated he would prefer to develop the property in phases and requested that only a portion of his property be assessed. Rich Kincanon stated that he explored the possibility of developing his property and found that the money is not available to develop the property. He stated that if his property were assessed as proposed and he deferred the assessment to the Green Acres law, the interest on his land would amount to $1,500 per month. He stated he would prefer not to have his property assessed. Bud Houlton stated that the assessment must be based on the benefit to the property. He indicated that the existing value of the property is $600 per acre and that the assessment would increase the value 723%. He stated it is his intention not to develop the property. Bud Houlton referenced a State Statute which allowed deferments of assessments to certain properties. He requested the Council to consider this option. Peter Beck, the City's Attorney, stated that there are three Statutes that apply to the proposed deferment of assessments. One of them is the Green Acres Statute M.S. 273.111 Subd. 11, which allows payment of the assessment to be deferred, however, interest of the assessment continues to accrue. . . . City Council Minutes October 12, 1992 Page 3 Another statute, M.S. 429.051, allows the City to not assess certain properties at this time. A third Statute, M.S. 429.061, allows cities to defer assessments against unimproved property until a designated future year, until the property is platted, or until improvements are constructed on the property. Interest on the deferred assessments can be made payable annually, can be added to the principal amount, or can be forgiven. Bud Houlton requested the Council to grant the large land owners the same opportunities that was granted to the existing single family homes that were excluded from the trunk assessments. Councilmember Holmgren stated that he prefers Option #2 in the staff memo to the Mayor and City Council dated October 8. Option #2 would allow the City to assess the project to all benefitted property owners, but allows the elimination of interest on the assessment to farm lands for two years. Councilmember Holmgren requested the City Attorney to pursue this alternative and to incorporate it into the Assessment Manual. Bud Houlton stated that two years would not be enough time as his intent is not to develop the farm land. Councilmember Dietz stated that he would not be in favor of a general levy to carry the debt that would be created by eliminating the interest on the assessments for the farm lands. councilmember Kropuenske stated that options #2 the Mayor and City Council dated October 8 Moldenhauer development; however, these options Houlton or Kincanon farm property. and #3 in the memo to would benefit the would not benefit the Gordon Moldenhauer stated that the City is forcing people to develop their land with the proposed assessments. He requested that the City delete the interest on the Green Acre land. He stated that the taxes from the developed lots would cover the cost of the interest. Councilmember Schuldt stated his concern regarding a city-wide cover the deferred interest on the farm land. He stated he was to any type of levy for this purpose. levy to opposed Mr. Kincanon stated that the assessments against his property were too high. He stated that he has been offered $7,500 per acre for his property and that he would not make a profit from the property due to the high amount of the assessment. There being no further comments, Mayor Tralle closed the public hearing. COUNCILMEMBER HOLMGREN MOVED TO DIRECT THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE ASSESSMENT RESOLUTION CONSISTENT WITH OPTION #2 IN THE MEMO TO THE MAYOR AND CITY COUNCIL DATED OCTOBER 8 WHICH DEFERS THE ASSESSMENT FOR TWO YEARS ON TILLABLE, GREEN ACRE PROPERTY AND FORGIVES INTEREST FOR THE PERIOD OF DEFERRAL. COUNCILMEMBER SCHULDT SECONDED THE MOTION. . . . city Council Minutes October 12, 1992 Page 4 ) Councilmember Kropuenske this decision, but he was regarding this matter. the farm properties that indicated that he was not comfortable with aware that there are not a lot of options He indicated his continued concern regarding do not want to develop. THE MOTION CARRIED 4-1. Councilmember Kropuenske opposed. COUNCILMEMBER DIETZ MOVED TO DENY THE MOLDENHAUER OBJECTION AND REQUEST TO EXCLUDE THE WESTERN PORTION OF THE MOLDENHAUER PROPERTY FROM THE ASSESSMENT ROLL ON THE GROUNDS THAT THE PROPERTY WILL BE BENEFITTED IN EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER SCHULDT MOVED TO DENY THE KINCANON OBJECTION AND REQUEST TO EXCLUDE THE KINCANON PROPERTY, PARCEL '75-005-2101, FROM THE ASSESSMENT ROLL ON THE GROUNDS THAT THE PROPERTY WILL BE BENEFITTED IN EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Kropuenske opposed. COUNCILMEMBER HOLMGREN MOVED TO DENY THE HOULTON OBJECTION AND REQUEST TO EXCLUDE THE HOULTON FARM PROPERTY FROM THE ASSESSMENT ROLL ON THE GROUNDS THAT THE PROPERTY WILL BE BENEFITTED IN EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Kropuenske opposed. Terry Maurer indicated that he has received a letter of written objection from Jeff and Mary Lundeen to the assessment levied against a portion of their property. He explained that Orono Road divides their property and the back property which abuts the lake is a small parcel that is unbuildable. He stated that the reason the property was assessed for the street assessment was because the property adds value to the entire parcel. COUNCILMEMBER KROPUENSKE MOVED TO DENY THE OBJECTION MADE BY JEFF AND MARY LUNDEEN FOR LOT 4, BLOCK 2, HEATH ADDITION BASED ON THE GROUNDS THAT THE PARCEL BENEFITS THE LUNDEEN PROPERTY AND THE PROPERTY IS BENEFITTED IN EXCESS OF THE AMOUNT OF THE ASSESSMENT. COUNCI LMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE ASSESSMENT HEARING UNTIL MONDAY, OCTOBER 19 TO BE HELD AT THE ELK RIVER PUBLIC LIBRARY AT 7:00 P.M. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.1. Klein Easement Request Terry Maurer indicated that staff has received a request from Mr. and Mrs. Klein for reimbursement of $999 for the easement they have given to the City on the corner of their property, Lots 3, 4, and 5, Block 5, Orono Addition. Terry Maurer explained that although the City acquired the easement, Mr. Klein was made aware of the fact that the City could have completed the project without acquiring the easement as the project could be done through prescriptive rights. Terry Maurer also informed the Council that Mr. Klein stated that he was interested in . . . City Council Minutes October 12, 1992 Page 5 giving the City an easement in order to clean up his property description and also to slightly reduce his area assessment for trunk water. He indicated that following this decision and following the recording of the easement, Mr. Klein has requested reimbursement from the City for $999. COUNCILMEMBER DIETZ MOVED TO DENY THE REQUEST FROM MR. AND MRS. KLEIN FOR REIMBURSEMENT OF $999 FOR THE EASEMENT GIVEN TO THE CITY FOR THE RECONSTRUCTION OF ORONO ROAD BASED ON THE FACT THAT THE ROAD COULD HAVE BEEN RECONSTRUCTED WITHOUT ACQUIRING THE EASEMENT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.2. Main street/Highway 169 Project Update Terry Maurer, the city Engineer, updated the Council on the progress of the Highway 169/Main Street intersection improvement. 6.3. Filing system Purchase/New City Facility The City Clerk informed the Council that staff will be converting to a central mechanical filing storage system at the new City Hall. She indicated she received quotes from two companies and is requesting that the Council authorize the staff to sign the contract with Space Saver Filing Systems. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE STAFF TO SIGN FOR THE SPACE SAVER FILING SYSTEM FOR THE POLICE ADMINISTRATION DEPARTMENT. COUNCILMEMBER KROPUENSKE MOTION. THE MOTION CARRIED 5-0. THE CONTRACT DEPARTMENT AND SECONDED THE 6.4. Main Street Bridge Update Terry Maurer updated the Council on the progress of the Main Street bridge replacement. He indicated that construction would start very soon and that the new bridge would be complete some time in early summer of 1993. COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 92-101, A RESOLUTION AGREEING TO USE MUNICIPAL FINANCING FOR COST IN EXCESS OF STATE GRANTS IN THE MATTER OF THE 1992 MAIN STREET BRIDGE REPLACEMENT PROJECT. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Other Business There was no other business. 8. Staff Updates The City Administrator questioned whether the Design Committee was interested in looking at the colors for City Hall. It was the consensus of Councilmember Schuldt and Councilmember Kropuenske that they do not want to see the color scheme and that they would leave it up to staff discretion. The City Administrator also questioned whether the Design Committee was interested in being involved with the . . . City Council Minutes October 12, 1992 Page 6 furniture selection process. It was the consensus to leave this decision to staff but that the Council wanted updates on this purchase. The City Administrator informed the Council that Zack Johnson with Eos Architecture will be leaving the firm. The City Administrator informed the Council that the traffic study for the area around the Highway 169 and 193rd intersection will be discussed at the Planning Commission meeting scheduled for October 21. He stated that some of the information from the August traffic study has already been outdated due to anticipated changes in a development proposal. Old City Hall Property Pat Klaers questioned whether the Council wished staff to get involved and finalize the sale of the old City Hall property. It was the consensus of the Council that staff proceed with the sale of the old City Hall property to UPA with the stipulations that the Park and Ride continue at that location, that a landscaping plan be provided and approved by City staff, and that any future use of the property be limited. Mayor Tralle requested the Building and Zoning Department intersection of County Road 33 City Administrator to regarding the selling and Highway 169. with at the the check of cars 9. Adjournment There being no further business, COUNCILMEMBER ADJOURN THE MEETING. COUNCILMEMBER DIETZ SECONDED MOTION CARRIED 5-0. HOLMGREN MOVED THE MOTION. TO THE The meeting of the Elk River City Council adjourned at 10:05 p.m. Respectfully submitted, if? 17 -If L _. . I . ~tA< ~Ltu~ -"Sandra Thackeray t/ City Clerk