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06-26-1989 CC MIN e e e ~lliETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY. JUNE 26. 1989 Members Present: Mayor Tralle. Councilmembers Holmgren. Dobel. and Kropuenske Members Absent: Councilmember Schuldt Staff Present: Patrick Klaers. City Administrator; Sandy Thackeray. Deputy City Clerk; Tom Zerwas. Police Chief. Darrell Mack. Waste Water Treatment Superintendent; Philip Ha1s. Street Superintendent; Steve Rohlf. Building and Zoning Administraor; Fritz Dolejs. Liquor Store Manager; Russ Anderson. Fire Chief; and Lori Johnson. Finance Director 1. Pursuant to due call and notice thereof. Mayor Tralle called the meeting of the Elk River City Council to order at 7:00 p.m. 2. Consider 6/26/89 City Council Agenda Item 9.5 Check Register was added to the agenda. COUNCILMEMBER DOBEL MOVED TO APPROVE THE 6/26/89 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Open Mike Attorney. Ron Black, approached the City Council and indicated that he was representing Mr. George Carlson of 10596 181st Avenue Northwest in Elk River. He stated that Mr. Carlson's garage is located on the lot line between his property and Hillside park. which is owned by the City of Elk River. He indicated that Mr. Carlson is requesting a deed from the City for a triangular shaped parcel of property which is .38 acres in size so that his garage would be on his own property. Mr. Black indicated that Mr. George Carlson is in the progress of selling his property and this is the reason he is requesting consideration of the matter. Steve Rohlf. Building and Zoning Administrator. indicated that the City staff is recommending that the Council quit claim this property to Mr. Carlson with the stipulations that Mr. Carlson pay $380.00 for the property and that Hillside park is researched to make sure that there are no covenants on the property. Mr. Rohlf further indicated to the Council that it would be appropriate for the City to put the public on notification regarding this matter so that if there are any concerned citizens. they may voice their concerns to the Council. COUNCILMEMBER KROPUENSKE MOVED TO SELL THE TRIANGULAR PARCEL OF PROPERTY OWNED BY THE CITY OF ELK RIVER OF APPROXIMATELY .38 ACRES TO MR. GEORGE CARLSON FOR $380.00 WITH THE STIPULATION THAT HILLSIDE PARK IS RESEARCHED TO MAKE SURE THAT THERE ARE NO COVENANTS ON THE PROPERTY WHICH WOULD HINDER THE TRANSACTION. AND FURTHER THAT THE CITY RECEIVE NO NEGATIVE PUBLIC INPUT REGARDING THIS MATTER BY JULY 10. 1989. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. Page 2 City Council Minutes June 26. 1989 e The Building and Zoning Administrator indicated that this would be published as a public notice in the Elk River Star News. 4. Extension of Time Request/Danny's Tranny's Steve Rohlf. Building and Zoning Administrator. indicated that Danny's Tranny's is a nonconforming industrial use. located in an agricultural zone. He indicated that the business consists of smelting aluminum. Mr. Rohlf stated that he has been working with Dan Karst to relocate his business. He stated that Mr. Karst is in the process of relocating to a building in the City of Ramsey. but the relocation process has been slower than anticipated. Mr. Rohlf indicated that Mr. Karst had been given a time frame for cleanup of his operation. which was spring of 1989. Due to the site in Ramsey not being ready for his relocation. Mr. Karst is requesting a time extension. Building and Zoning Administrator further stated that soil testing has been done and the soil has been found to be free of contaminants. Mayor Tralle indicated that this was not a public hearing. but that the affected citizens have been notified of this meeting and. therefore. the Council would receive public input. e Edward Soltis. of 13909 227th Avenue Northwest. indicated that the area residents are taking the brunt of the noise and the black smoke. He stated that the area is an eye soar in general. He further indicated he would like to see some relief from the activity. as the activity goes on all hours of the night and day. He would also like to see a firm deadline as to when the operation will cease. Mr. Dan Karst. owner of Danny's Tranny's stated that he was raised on the farm. He stated that his business started out as a small business and grew to 32 full time employees and nine part time employees. He stated he is struggling very hard to move his business and that he has spent a lot of money in legal fees. consulting fees. and testing fees to the sum of $21.125.00 in the process of trying to relocate his business. He stated he has bought a building and he is now waiting for the equipment and for the testing of the equipment to be accomplished. He indicated that if the Council would shut his business down this evening. he would have no money to keep the testing and the cleanup operation going at the present site. Mr. Karst submitted two letters. one from David Perkins. and one from Julius Nemeth. area residents. stating that they had no problem with Mr. Karst's operation. Mr. Karst stated he is looking at a possible deadline date, or extension date, of August 31, 1989. He stated that if his equipment gets in sooner than that. he would move out of his current location at that time. Beth Erickson. 13871 227th Avenue. indicated that she is concerned about the black clouds of smoke that come from the building. Steve Rohlf indicated that MPCA representatives have been out and checked the building twice. and they had found no problem with the air emissions. e Cindy Soltis. of 13909 227th Avenue, questioned when the MPCA did the testing. She stated that the bulk of the black smoke is emitted in the early morning and late evening. She stated that she is concerned about what goes on in the evening and during off hours. Page 3 e City Council Minutes June 26. 1989 Steve Rohlf indicated that he had received a telephone call from a Mr. Wilbur Taylor. an area resident. stating that he had no problem with the Karst operation. Mayor Tralle stated that the City has been working with Mr. Karst to relocate and if he does relocate cleanup of the present site will be guaranteed. He stated that if a court battle is ensued. cleanup could last a long time. Mayor Tralle stated that Mr. Karst has spent a lot of time and money to move out of Elk River and indicated that he was in favor of an extension. Councilmember Kropuenske stated that he appreciated Mr. Karst cooperating with the Building and Zoning Administrator and indicated that he would like to see the deadline extended. COUNCILMEMBER DOBEL MOVED TO GRANT A TIME EXTENSION OF AUGUST 31. 1989. TO DAN KARST, AND FURTHER THAT HIS BUSINESS WILL CEASE OPERATION ON THAT DATE. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0. 5. Cliff Lundberg/Council Proposal e Mr. George Raymond. representing the Elk River Arts Council. indicated that he was before the Council on behalf of Cliff Lundberg. Mr. Raymond indicated that he is requesting support of the City Council to designate an Elk River area Arts Council and further that he is requesting funding of $10.000 per year for three years as they have an opportunity to receive a matching grant for this money from the Federal Government. Mr. Greg Ringsted was present from the Federal Minnesota Arts Board. Mr. Ringsted stated that July 15. 1989. is the deadline for the application. Mayor Tralle indicated that the City's budgeting process begins the end of July. and the City has no idea of what type of funding they will be receiving from the State. Councilmember Holmgren questioned what other source of revenue the Arts Council is pursuing. Mr. Raymond stated that they requested funds from local organizations in Elk River. The City Administrator suggested that the City may be able to offer secretarial help and that another possibility would be for the Arts Council to operate a pull tab operation. COUNCILMEMBER HOLMGREN MOVED THAT THE GREATER ELK RIVER AREA ARTS COUNCIL BE DESIGNATED AS THE OFFICIAL ELK RIVER ARTS COUNCIL. AND FURTHER THAT THE CITY COUNCIL WILL COMMIT NO FUNDING AT THIS TIME BUT WILL LOOK AT THE POSSIBILITY OF FUNDING AS THE BUDGET PROCESS IS COMPLETED. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. e Mayor Tralle encouraged the Arts Council to fill out the application and requested City staff to plan $10.000 into the 1990 budget. He indicated that the City will do everything they can to help get the funds. Page 4 e City Council Mintes June 26, 1989 6. Consider Liquor Request for Sale of On-Sale Strong Beer in Conjunction with Restaurant License The Deputy City Clerk stated that State Law change now allows for restaurants to obtain a strong beer license if the City passes an ordinance allowing this. She indicated that she has had a request from Sneaky Pete's Restaurant to obtain a strong beer license. Ms. Thackeray stated that in order to obtain a beer license the restaurant has to have a wine license. a 3.2 license and further that 60% of the gross sales must be attributable to the sale of food. She further stated that according to State Law. if the Council adopts such an ordinance no license fee application or license is required for the sale of strong beer. However. liquor liability insurance would be required. COUNCILMEMBER DOBEL MOVED TO HAVE THE CITY ATTORNEY DRAFT AN ORDINANCE AMENDMENT ALLOWING FOR THE SALE OF STRONG BEER IN RESTAURANTS THAT CURRENTLY HOLD A WINE AND 3.2 LICENSE. MAYOR TRALLE SECONDED THE MOTION. Counci1member Holmgren stated that he was not in favor of the motion as a restaurant that sells strong beer is not inducive to a family environment. e THE MOTION CARRIED 2-1-1. Counci1member Dobe1 and Mayor Tra11e voted for the motion. Counci1member Holmgren voted against the motion. Counci1member Kropuenske abstained as indicated he did not feel strong enough to vote for it. nor did he feel strong enough to vote against it. Sandy Thackeray indicated to the City Council that as of August 1. the State has passed a law that would eliminate the bonding requirement for liquor license holders. She indicated that she had spoken with the City Attorney and that he felt that the surety bond was unnecessary. Ms. Thackeray indicated that the dram shop insurance. which is now required. is sufficient insurance. It was the consensus of the City Council to not require a surety bond for liquor license holders. 7 Consider Liquor License Renewal Sandy Thackeray. Deputy City Clerk. stated that she had received all liquor license applications except for two. She indicated that liquor licenses expire on July 1. The two applications she did not receive were from Sunshine Depot and Wapiti Park. COUNCILMEMBER UPON PAYMENT RECEIVED BY DISCONTINUE IS MADE. CARRIED 4-0. HOLMGREN MOVED TO APPROVE ALL LIQUOR LICENSES CONTINGENT OF LICENSES BY JUNE 30. AND FURTHER THAT IF PAYMENT IS NOT JUNE 30. THAT THE POLICE DEPARTMENT BE AUTHORIZED TO THE SALE OF LIQUOR IN THE ESTABLISHMENTS UNTIL SUCH PAYMENT COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION e 8. City Staff Discussion Items DEPUTY CITY CLERK Sandy Thackeray. Deputy City Clerk. indicated that she had researched the purchase of a tape recording system as requested by the City Council. She reviewed the options at this time with the City Council. e e e Page 5 City Council Minutes June 26. 1989 COUNCILMBMBER DOBEL MOVED TO APPROVE THE PURCHASE OF A SONY 5000EB PROFESSIONAL STANDARD CASSETTE RECORDING SYSTEM AT A PRICE OF $792.00 FOR THE PURPOSE OF RECORDING COUNCIL MINUTES AND PLANNING COMMISSION MINUTES. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Ms. Thackeray indicated to the Council that Elk River Ducks Unlimited has requested a renewal of Charitable Gambling License for activities of bingo and raffle tickets at the Elk River Bowl. The Council took no action to deny the gambling request by Elk River Ducks Unlimited. CITY ADMINISTRATOR The City Administrator distributed the 1988 Truth in Taxation Law. He indicated that due to the uncertainty of the 1989 law. the City will be complying with the 1988 law. COUNCILMBMBER KROPUENSKE MOVED TO CALL A SPECIAL CITY COUNCIL MEETING ON JULY 31, AT CITY HALL CONFERENCE ROOM, AT 7:00 P.M. FOR THE PURPOSE OF BUDGET DISCUSSIONS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. The City Administrator distributed a letter from Mr. Rob VanValkenburg stating that the developers have decided to go ahead with the motel plans and further that they are still hoping that sewer and water extension to the east end of the City will be a reality. POLICE CHIEF Tom Zerwas. Police Chief. indicated that the Legion Club. Eagles and the VFW have all expressed interest to use proceeds from gambling money to help fund a canine (K-9) unit for the Police Department. He indicated that they are willing to contribute about $22.000 to the City for this canine unit. The Police Chief indicated that the yearly cost for a canine unit would be approximately $2.000 for maintenance. The Council discussed the canine unit and how the dog would be used in different situations. Councilmember Holmgren questioned the type of liability insurance required by the City and also what other cities have canine units at the present time. The Police Chief indicated that canine units are used in all different size cities. small and large. He further indicated that the potential for liability is handled the same as for any other liability the City may incur. COUNCILMKMBER DOBEL MOVED TO PROCEED WITH THE CANINE UNIT CONTINGENT ON FUNDING BEING AVAILABLE FROM THE PRIVATE SOURCES. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0. CITY ADMINISTRATOR Pat Klaers. City Administrator. indicated th~t he has had one meeting with Carol Carlson regarding hiring her as a personnel consultant. He indicated that the City is in need of some personnel work being done and stated that some of the needs include; personnel ordinance. policy and precedures. sexual harrassment manual. data privacy. written evaluation forms. personnel incentive pay. employee handbook. job descriptions. safety committee. and many other personnel areas. It was the consensus of the City Council to authorize the City Administrator to investigate whether or not the City would have to advertise for this position and further that an interview be set up with the City Council and Carol Carlson. Page 6 e City Council Minutes June 26, 1989 LIQUOR STORE MANAGER Fritz Dolejs, Liquor Store Manager, indicated that sales are even with last years. He stated that the beer cooler has been completed and that the sign face replacing the old liquor store sign will be completed in August. Mr. Dolejs indicated that the liquor store will be receiving a temporary sign permit for a Budweiser sign. CITY ADMININSTRATOR Pat Klaers, City Administrator, indicated that he and Dr. Flannery have come to terms on the joint building and use of the City garage between the School District and the City. The City Administrator indicated that the building will cost $185,000 and about $25,000 for labor and equipment use. He stated that the School District will be using the building from 11/15/89 to 11/15/94 and further that by September 1. 1989, the School District will give the City $150,000 in cash. Starting on 11/15/94, the City will then proceed to reimburse the School District $15,000 each year for 5 years totaling $75,000, therefore, giving back the School District one half of the $150,000. The City Administrator indicated that the City may have to go into the Capital Projects Outlay Reserves for the building expenses. e Councilmember Holmgren questioned whether the School District would be leasing the building from the City and he indicated that if this were the case the building would not be tax free. The City Administrator indicated that the School District would not be leasing the building but would in actuality be financing part of the building. COUNCILMEMBER COUNCILMEMBER HOLMGREN MOVED TO ADVERTISE FOR BIDS FOR THE CITY GARAGE. KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0. It was the consensus of the City Council to send a letter to Dr. Flannery with the terms as discussed by the City Council and that this letter be presented to the School Board on July 11. BUILDING & ZONING ADMINISTRATOR Stephen Rohlf, Building and Zoning Administrator updated the Council of the Recycling Task Force progress. He stated that a draft proposal will be ready to present to the City Council on the second Monday in August. Mayor Tral1e questioned whether staff has been searching for a replacement for the Planning Commission vacancy. Discussion was held whether or not to replace Nick Olsen's vacancy right away or to wait until January 1, when his term actually expires. After discussion regarding this matter, it was the consensus of the Council to advertise for a replacement for Nick Olsen as it was the feeling of the Council that the remaining six months of the term would give a new member time to become familiar with the Planning Commission meetings. e e e e Page 7 City Council Minutes June 26. 1989 WASTE WATER TREATMENT SUPERINTENDENT Darrell Mack. WWTS. updated the Council on the operation of the Waste Water Treatment Plant. He indicated that all is running well and he has encountered no problems. Mayor Tralle questioned whether Darrell has had any further conversations with Otsego Township regarding them using Elk River's sewer system. Mr. Mack indicated that he had not heard from Otsego. The City Administrator indicated that the City Engineer has sent a letter to Otsego Township regarding cost and finances for a study project such as this and that Otsego has agreed to the finances. FIRE CHIEF Russ Anderson. Fire Chief. indicated that the Emergency Preparedness Plan is being started. Mayor Tralle indicated that he would like to see a draft of the proposal in approximately four months. The Fire Chief thanked the Council for the meeting with the Fire Department at a special meeting on 6/22/89. The Fire Chief indicated to the Council that he would like the Council to consider bids for the Fire Station on July 17 and for the fire truck on July 31. FINANCE DIRECTOR Lori Johnson. Finance Director. updated the Council on the City's health insurance. She indicated that health insurance proposals will be before the Council on July 10. and further that final proposals will be taken on June 29. STREET SUPERINTENDENT Phil Hals. Street Superintendent. distributed maps of his proposed seal coating program for 1989. He indicated that the budget contains $25.000 for seal coating approximately 5 miles of City streets. Mr. Hals stated that he would like to contract about $20.000 of this money for seal coating and keep $5.000 to purchase asphalt and aggregate to resurface areas in the City. by the City crew. in lieu of an overlay. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE CITY STAFF TO ADVERTISE FOR BIDS FOR THE 1989 SEAL COATING PROGRAM. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0. The Street Superintendent indicated that the three areas that would receive attention with the asphalt and aggregate would be 176th Avenue. Orono Road and Riverview Drive. Phil Hals. Street Superintendent. indicated that the 1989 budget provides for $40.000 to be used for overlays. He stated that he is proposing to overlay Orono Road. 209th Avenue. Waco Street and the Liquor Store Road. COUNCILMEMBER KROPUENSKE MOVED TO AUTHORIZE THE CITY STAFF TO ADVERTISE FOR BIDS FOR THE STREET OVERLAY PROJECT OF 1989. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. The Street sidewalks in basic groups. 2) Serviceable major repairs replaced with Superintendent indicated that he had done an inventory on the City and that he has divided the sidewalks into four The groups include; 1) Those that are being serviceable. but in need of minor repairs. 3) Unserviceable needing and 4) Unused or deadend areas that could be removed and grass. He further indicated that sidewalks are a major Page 8 e City Council Minutes June 26, 1989 liability to the City and that a policy should be established in the near future regarding the sidewalks. He indicated that there were no funds budgeted in the 1989 budget for sidewalk repair. The Council discussed the possibility of replacing sidewalks and how this would be funded. The City Administrator indicated that sidewalks are an assessable project to homeowners. The Street Superintendent indicated that the cost would be $7.00 per lineal foot to replace sidewalks. Mayor Tralle indicated that this may be too large of an assessment for the homeowners to bear the entire cost and felt that the method of payment should be looked into for sidewalk replacement. He further stated that it would be his preference to do the necessary minor repairs and remove the sidewalks in poor condition and plan on completing the rest of the sidewalk replacement program in 1990. Councilmember Holmgren suggested that the City look at the possibility of installing a sidewalk along Gates Avenue to Main Street. He stated that there are several people using this area for walking and felt that it was an unsafe condition. He further questioned whether this could be done through the use of MSA funds. e CITY ADMINISTRATOR The City Administrator indicated that he would like direction from the Council regarding the Tyler/Knollwood project. He stated that he is questioning whether the City should go ahead and authorize the contractors to start work or if they should wait and see if the assessment appeals which they received will go to court. It was the consensus of the City Council to authorize the contractors to start the proj ect. The City Administrator updated the Council negotiations. He indicated that Mr. Morrell had and that a meeting has been set up for Thursday. on the Larry Morrell been in contact with him The City Council discussed the number of hours that they spend in City government. It was the consensus of the Council that an increase of salary should be made to the Council to compensate for the number of hours. It was the consensus that this would be looked at at budget time. 9.5 Check Register COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CHECK REGISTER AS SUBMITTED. COUNCILMEMBER DO BEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. 10. Adjournment There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE MEETING. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. e The meeting of the Elk River City Council adjourned at 11:05 p.m. Respectfully submitted, S{}/!1Lj~ 7ArufztJ~ Sandy Thackeray Deputy City Clerk