10-12-1992 CC MIN
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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."
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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.
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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.
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city Council Minutes
October 12, 1992
Page 4
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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
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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
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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