06-25-1991 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL FACILITIES WORKSESSION
HELD AT THE ELK RIVER CITY HALL
TUESDAY, JUNE 25, 1991
Members Present:
Mayor Tralle, Councilmembers Schuldt, Holmgren (7:05),
Kropuenske and Dietz
Members Absent:
None
Staff Present:
Pat Klaers, City Administrator; Tom Zerwas, Chief of
Police; Tom Tyler, Police Sergeant; Brad Rolfe, Police
Sergeant; Lori Johnson, Finance Director
Others Present:
Zack Johnson, EOS Architecture; George Zabee
1. Call Meetin~ To Order
Pursuant to due call and notice thereof, the meeting was called to
order at 7:00 p.m. by Mayor Tralle.
2.
Consider 6/25/91 A~enda
Item 7.3, City Administrator Update, was added to the agenda and agenda
Items 3 and 4 were reversed in order.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE 6/25/91 AGENDA AS AMENDED.
COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0.
4. Gospodor Site
Mayor Tralle and the City Administrator reviewed the 6/20/91 staff memo
on the Gospodor land purchase. It was indicated that the negotiated
purchase price for the approximately 7.5 acres of land is proposed at
$220,000. The City would also have to pass a resolution acknowledging
the 10 acre gift from Mr. Gospodor valued at $107,800 (per appraisal
fromMf. Lawrence). The City would be purchasing the property over a
five year contract with $60,000 down and $40,000 paid each year plus
8.5% interest. Furthermore, the Ci ty is expected to pay the second
half real estate taxes, closing costs, State Deed tax, agree to
relocate the road and agree that the property would remain public for
at least fifty years.
The Council discussed the two different appraisals for the land that is
desired to be purchased and noted that the agreed upon price is more
than the appraisal from Mr. Lawrence but less than the appraisal from
Shenehon and Associates. It was the consensus of the City Council that
the overall package is acceptable and that the City would be obtaining
approximately 17 acres of land for the City Hall/Police facility and a
future community center at a very reasonable price.
City Council Minutes
June 25, 1991
Page 2
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COUNCILMEMBER KROPUENSKE MOVED TO ACCEPT THE OFFER FOR THE GIFT AND
PURCHASE OF THE GOSPODOR PROPERTY IN THE AMOUNT OF $220,000 PLUS
ASSOCIATED CLOSING EXPENSES AND OTHER TERMS OF THE TRANSACTION AS
OUTLINED IN THE 6/20/91 CITY ADMINISTRATOR MEMO. COUNCILMEMBER DIETZ
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
It was the consensus of the Ci ty Council that the staff should move
forward in getting soil tests completed.
Citizens Jeff Dogerty and Terry Davis, who live in the vicinity of the
Gospodor property, were present to discuss some neighborhood concerns
over the project. Issues discussed included traffic concerns,
extension of sewer and water into the area, the design of the site and
future input from the neighbors. The Council indicated that
informational meetings will be held and that the public will be invited
to provide input into the project.
3. Review Public Facilities Committee Meetin~ Results
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Zack Johnson reviewed with the City Council the results of the staff
meetings and public facility committee meeting. Since the May City
Council meeting, the staff and consultants have been working on
revising the square footage needs for the facility and evaluating the
costs for the project.
It was noted that the large meeting room has been deleted from Phase I
of the project since this element caused the facility to come in over
budget. With the removal of this meeting room space from Phase I, more
monies were available for some of the offices in the Police Station and
Ci ty Hall originally included in Phase II. For discussion purposes,
the staff and committee have been working on a $2,000,000 facility. In
addition to this cost there are approximately $800,000 of other
expenses in order to complete the project. This figure includes
$200,000 for furniture, fixtures and equipment and $250,000 for site
acquisition. Both of these items may be financed with funds outside of
the lease/purchase plan that is anticipated to be necessary for the
financing of this project. Also, this $800,000 amount excludes any
expenses related to utilities or road work, and it is anticipated that
these two expendi ture items may also be outside of the lease/purchase
plan.
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Regarding the finances for the project, the City Administrator noted
that a large part of the road work may be financed through MSA monies
and that a reserve has been established for furniture, fixtures and
equipment. Additionally, the land purchase will take place over time
and, for the most part, is an eligible expenditure for TIF funds. TIF
funds can also be used for util i ties. It was' further noted that NSP
makes an annual contribution to the City which can be used for part of
the project. Assessments to benefitted property owners, along with
City wide assessments, are possible other sources of financing for the
road and utility parts of this project.
The City Council discussed the alternatives for the police firing range
and the police garage.
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City Council Minutes
June 25, 1991
Page 3
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The Council discussed the desired quality of the building and indicated
that this facility will be the permanent, long term home for City Hall
and that they preferred a higher quality and less quantity if
necessary. The Council stated that they prefer somewhat of a middle
ground position on the quality of the building and do not want to be
extravagant, but, at the same time, do want something that will make
everyone proud.
Discussion took place regarding future steps in this project and it was
noted that the design and layout of the facility would be the next step
along with work on the utilities extension and road realignment. Staff
was directed to work on the finances for the project including the
entire facility, the land purchase, the extension of utilities and the
road expenses.
6. Architectural Contract
Zack Johnson, EOS Architecture, reviewed with the City Council a
proposal for architectural services for the City Hall/Police Station
project. It was noted that the proposal is for a fixed fee for the
entire project based on a $2,000,000 facility. The fees include master
planning for the entire community center/City Hall project.
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Zack indicated that he has negotiated the contract with the City
Administrator and has included a number of additional services into the
basic contract. The proposal is for a total of $206,400 wi th some
add i tional expenses (estimated at $3,000-$4,000) for the printing of
plans for the bids and other reproduction costs.
The City Council discussed the level of service which they would be
recei ving in this project. It was npted that EOS Architecture is
proposing a visit and one-half each week for this project which amounts
to approximately 9-10 hours on the site each week. This is in addition
to the 12-15 hours per week which are anticipated to be needed in the
office.
Discussion took place regarding add alternatives for the project and it
was noted that if these add alternatives are included at the front end
of the project, then there would not be any additional archi tectural
expenses. Zack indicated that there would be additional arci tectural
expenses if these add alternatives were not incorporated into the
original proposal.
Discussion took place regarding a model for public review of the
project. It was noted that drawings may be sufficient in this regard,
but that this item could receive more discussion at a future meeting.
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COUNCILMEMBER HOLMGREN MOVED TO HIRE EOS ARCHITECTURE FOR THE CITY
HALL/POLICE STATION PROJECT FOR $206,400 PLUS ADDITIONAL REPRODUCTION
COSTS AND INSTRUCTED THE STAFF TO WORK ON ANY NECESSARY CHANGES IN THE
B141 ARCHITECTURAL AGREEMENT. COUNCILMEMBER KROPUENSKE SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
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City Council Minutes
June 25, 1991
Page 4
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6. Next Meetin~ Date
COUNCILMEMBER SCHULDT MOVED TO HAVE THE NEXT MEETING OF THE CITY
HALL/POLICE STATION COUNCIL WORKSESSION ON JULY 29, 1991, AT 7:00 P.M.
AT THE ELK RIVER CITY HALL CONFERENCE ROOM. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
7.1 Outlot A Proposal
The City Administrator reviewed with the City Council the proposal to
purchase three residential lots that the City owns. The original
proposal was submitted by Mel Beaudry, Century 21 White Dove at the
6/17/91 meeting. The proposal was adjusted to reflect a $30,000
purchase price and 10% interest rate with $8,000 down. Additionally,
if all of the $30,000 in the contract for deed proposal is paid to the
City within one year, a $1,000 rebate would be provided to Mr. Beaudry.
COUNCILMEMBER KROPUENSKE MOVED TO ACCEPT THE PURCHASE OFFER FROM MEL
BEAUDRY FOR THREE RESIDENTIAL LOTS WHICH THE CITY OWNS. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
7.2
Liquor License Renewals
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The City Administrator reviewed a 6/19/91 memo from the City Clerk to
the City Council regarding the annual renewals of the liquor licenses.
The City Administrator noted that a clause was added to the bowling
alley license which allows them to serve liquor in the outside area
which is fenced in for people to play horseshoes. Additionally, the
Ci ty Administrator recommended that the approval of the Sunshine Depot
license be contingent upon receiving the license fee.
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE LIQUOR LICENSE AS SHOWN IN
THE ATTACHED 6/19/91 MEMO FROM THE CITY CLERK WITH THE ADDITION OF A
STATEMENT IN THE BOWLING ALLEY LICENSE REGARDING HORSESHOE ACTIVITIES
AND CONTINGENT UPON THE SUNSHINE DEPOT PAYING ITS LICENSE FEE.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE MECHANICAL AMUSEMENT DEVICE
LICENSE FOR WAPITI PARK. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
7.3
City Administrator Update
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A letter was distributed from the Chair of the Elk River Library Board
regarding discussions that are taking place on the possible expansion
of the library. The Library Board requested that the City hire Zack
Johnson to help the Board evaluate its options and ultimately decide on
future expansion plans. It was stated that Zack Johnson estimates the
fee to work with this group will be within the $3,000 to $5,000 range.
More information on this fee will be known after the first meeting with
the Library Board on 9/17/91.
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City Council Minutes
June 25, 1991
Page 5
Councilmember Schuldt questioned whether or not the original architect
for the library building should be retained. The City Administrator
noted that this issue was discussed at the 6/18/91 Library Board
meeting and that the Library Board was comfortable using Zack Johnson
for the requested work and that there is no special attachment to the
original architect.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE USE OF ZACK JOHNSON, EOS
ARCHITECTURE, TO WORK WITH THE LIBRARY BOARD WITH ITS EXPANSION PLANS.
COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 3-0.
The City Administrator distributed an update letter on the ambulance
system from Health One.
The City Administrator reminded the Council about the City newsletter
deadl ine.
The City Administrator advised the City Council that there will be a
Fire Department "burn" of the old school barn located north of the
Community Education building on 7/11/91.
The City Administrator updated the Council on an increase in the offer
that is being made to the Industrial Prospect that has been discussed
at previous EDA and City Council meetings.
8.
Adjournment
There being no further business, COUNCILMEMBER HOLMGREN MOVED TO
ADJOURN THE 6/25/91 CITY COUNCIL WORKSESSION MEETING. MAYOR TRALLE
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The meeting of the Elk River City Council was adjourned at approximately
9:30 p.m.
Respectfully submitted,
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Patrick D. Klaers
City Administrator