04-04-1988 CC MIN
e
e
e
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
MONDAY, APRIL 4, 1988
Members Present: Mayor Gunkel, Councilmembers Tralle, Holmgren, Dobel,
and Schuldt
Members Absent: None
Staff Present: Pat Klaers, City Administrator; Terry Maurer, City Engineer;
Greg Korstad, City Attorney
1. Pursuant to due call and notice thereof, the meeting of the Elk River
City Council was called to order by Mayor Gunkel at 7:00 p.m.
2. Consideration of 4/4/88 City Council Agenda
Item 3.2 was deleted from the agenda.
Item 7A, Administrative Update was added to the agenda.
COUNCILMEMBER DOBEL MOVED TO APPROVE THE 4/4/88 CITY COUNCIL AGENDA AS
AMENDED. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED
5-0.
3.1. 3/21/88 City Council Minutes
On item 7.2, Page 7, add the word "future" before
nonresidential users.
the
words
Page 7, Item 8 should state that the motion was seconded by
"Councilmember Holmgren."
4. Open Mike
No one was present for this item.
5.1. Sanitary Sewer/Main Street/Public Hearing
Mayor Gunkel indicated that the Council is holding a Main Street
supplemental public hearing for property owners who were not notified
of the first public hearing on sanitary sewer improvements in the Main
Street project. Mayor Gunkel indicated that the City Engineer was
present and would review the project and answer any questions that
arise.
Mayor Gunkel opened the public hearing at this time. There being no one
present for this issue, Mayor Gunkel closed the public hearing.
Mayor Gunkel indicated the Council would dispense with the explanation
of the sanitary sewer portion of the project due to the fact there were
no citizens present for the public hearing. Mayor Gunkel then stated,
that the City had received one letter of opposition of the future
assessment from Judith and James Wilhelmy of 18613 Simonet Drive.
Page 2
e
City Council Meeting
April 4. 1988
5.2. Central Business District Beautification Improvement Assessment Hearing
Public Hearing
Mayor Gunkel eXplained that the project is priced as low as possible and
meets the objectives for beautification of the downtown area. She
noted that the bids were open for the lighting aspect of the project and
that most of the prices in the project were firm.
Greg Korstad. City Attorney. explained the assessment hearing process.
He noted that the purpose of the meeting is to receive input from the
people proposed to be assessed for the beautification improvement. He
noted that the City is proposing to assess the cost of the project on a
per unit basis. He noted this is based on the City Council evaluation
of the most fair way to proportion all of the costs to the properties
benefited. He explained that all property owners should have been
notified of the assessment and of the proposed assessment method and
that the property owners should make their objections known to the City
Council at this time. Mr. Korstad also explained that the lighting
contract may not be awarded until the appeal period is expired. which is
30 days from the date of the assessment roll being adopted.
e
Terry Maurer. City Engineer. explained that the City has received the
street lighting bids and also has received quotes on the other elements
of the project. Mr. Maurer reviewed the cost of the project which is as
follows:
ITEM ASSESSED OTHER TOTAL COST
Street Lighting $65.000 $35.000 $100.000
Trees -0- 18.300 18.300
Tree Grates 29.000 -0- 29.000
Trash Receptacles 11 . 500 -0- 11.500
Textured Sidewalk 11. 800 -0- 11.800
$117.300 $53.300 $170.600
Mr. Maurer eXplained that the method of assessment of a per unit basis
is based on the input from the mock assessment hearing held January 21.
1988. He noted there is a total of 40 assessable units; 37 whole units
to be assessed at a rate of $2.950 per parcel. and 6 half units to be
assessed at a rate of $1.475 per parcel. Mr. Maurer noted that the
interest is calculated at a rate of 10% but may be reduced when the
bonds are sold.
e
Mayor Gunkel opened the public hearing at this time.
Mr. Al Nadeau. property owner and business owner. presented a letter
including a list of property owners wishing to appeal the assessment.
the following names were included in the list:
Page 3
City Council Minutes
April 4, 1988
e
Ronald Kuhn
Harvey Wohlers
Allen Nadeau
Joseph Sipe
Michael Rafferty
Ronald Robeck
Robert Dare
Hetrick - Amoco
R. A. Dorsey
Dan Anderson (includes 4 parcels)
Mayor
Dale
zone.
Gunkel
Johnson,
indicated
who is
she had also received a notice of appeal from
a residential property owner in the commercial
Mr. Dan Anderson, property owner of 4 separate parcels of property,
indicated that while he did sign the document objecting to the
assessment, he was actually not opposed to the assessment or the
project, but was opposed to the fact that the commercial properties west
of Lowell were not included in the assessment. He indicated the
properties west of Lowell had requested to become part of the commercial
area and the Council extended the commercial area to accommodate the
request. He indicated that the total commercial area should be given an
opportunity to be part of the project and not to restrict the assessment
to only a portion of the downtown area.
e
Dick Dorsey, property owner and business owner of Dick's Main Tap,
indicated his opposition to the beautification project. He stated he
was against a majority of the improvements but was in favor of adding
trash receptacles to the downtown area. He stated he was also opposed
to the method of assessment and felt the assessment should be determined
by front footage. He stated this should be dealt with in the same
method as sewer and street assessments.
Steve Johnson, property owner and business owner of Johnson's
Department Store, indicated his support for the project. He indicated
that the City of Monticello is proposing the same type of project and
the price is much higher than the City of Elk River is charging. Mr.
Johnson stated that the. criteria for drawing new business to the
community is the location, and the beautification of downtown will draw
business to the downtown area. He also indicated that the assessment
method is the best compromise for determining the assessment amount due
per parcel of property.
Mike Rafferty, property owner and business owner of Elk
Chiropractic Office, indicated he was not totally opposed
assessment, but that he was opposed to the method of assessment.
River
to the
e
Mr. Al Nadeau stated that the people signed the document opposing the
assessment with the knowledge that the assessment per one full unit
would be $3,750. He indicated that with the new figure of $2,950, there
may be some people willing to withdraw their signature.
rage 4
City Council Minutes
April 4. 1988
e
Bud Houlton. property owner. indicated his support for the project. He
stated that creating an environment and atmosphere for the downtown area
is very important. Mr. Houlton stated the First National Bank would be
willing to contribute one extra unit ($3.750) towards the cost of the
project.
Duane Kropuenske. Senior Officer of the First National Bank. indicated
he was in favor of the project. Mr. Kropuenske stated that by adding up
the total assessment and dividing it out on a per month basis. the
figure is somewhere around $30 to $40 per month. He indicated this is a
relatively small price to pay to attract business to Elk River.
Mr. Ron Kuhn. property and business owner. stated his opposition due to
the fact that the commercial properties west of Lowell are not included
in the assessment district and also that the properties east of his
business will receive more benefit than his property. He indicated he
would like to see the project vetoed until the Council has a chance to
look at the benefitting properties and assess them according to benefit
received.
e
Mike Rafferty proposed a different
he indicated was a more fair method
Council. He indicated that his
burden of the large properties and
of the smaller properties. This
official City Council minutes.
assessment method at this time which
than that being proposed by the City
method would increase the financial
decrease the financial responsibility
proposal is placed on record with the
Mr. Jim Mulroy. business owner of Snyder Drug. indicated that he is in
favor of the project.
Mr. Rob VanVa1kenberg. property and business owner of three parcels.
indicated he was in favor of the project.
Counci1member Tra11e indicated that both the Governor's Design Team and
the 2001 group have heavily encouraged the City to work on the downtown
area. He indicated the downtown beautification would serve as a major
focal part of the community and it would encourage retail growth and
also encourage people to shop in the downtown area. Counci1member
Tra11e stated that the front footage assessment method was unfair in
that the large property owners do not receive much more benefit than the
small property owners. He further indicated that the Council should
possibly look at extending the assessment district to the commercial
properties west of Lowell since these properties are within a
commercially zoned area.
Robert Dare. business owner and property owner. stated that he is not
against the cost of the project but opposes the fact that the commercial
properties west of Lowell Avenue are not included.
e
Elmer Anderson. property and business owner. thanked the Council for all
they have done so far for the downtown beautification project. He
indicated his support of the project.
Mr. Keith Holme. business owner. indicated his support for the project.
Page 5
City Council Minutes
April 4. 1988
e
Mr. Cliff Lundberg. business and property owner. and Chairman of the
Downtown Committee. stated that the proposal before the Council and the
residents is a very cost effective proposal and that it would possibly
be more expensive if the project were delayed until a later date. He
stated that he would like to see the Council order the project tonight
so the electrical contractor can start work and not delay the project.
Charles Christian. property owner and business owner. indicated his
support for the project.
There being no further comments from the public. Mayor Gunkel closed the
public hearing.
Mayor Gunkel indicated that there was a lot of discussion and thought
process by the Council and Staff in determining the method of
assessment and the area to be assessed. She indicated that the main
element in this is timing and coordinating the lighting aspect of the
downtown beautification project with the entire Main Street Project.
She indicated that if the Council did choose to reconsider the method
and area of assessment. the carefully planned timing schedule would no
longer be valid.
e
Pat Klaers. City Administrator. informed the Council that if the
assessment roll is adopted at this time. the people who have submitted
letters of objection will have the right to appeal. however. there are
additional steps to the appeal process which must be taken by these
individuals.
Councilmember Dobel indicated that if the Council does not go ahead with
the project. valuable time from a number of people will have been lost.
He stated that this project is needed and has been needed for a long
time and if the opportunity is missed it may never present itself again.
He indicated he was in favor of approving the project but would like to
look again at the method of assessment.
Mayor Gunkel indicated that the Council has tried everything possible to
make the project acceptable. She stated that if property owners do
appeal the project. the City would be in a defensible position regarding
the amount and the method of assessment. She indicated that one of the
reasons for keeping the assessment area east of Lowell was to keep the
assessment at a defineable boundary. which is Lowell Avenue. She
indicated she felt the Council is satisfying a majority of the people
and that the project is very cost effective.
Councilmember Holmgren indicated he was in favor of the project.
however. would like to see the Council look at extending the assessment
area to the commercial properties west of Lowell.
e
Mayor Gunkel indicated that if the Council were to look at possibly
changing the assessment area. it would be a great inconvenience to the
customers. She noted a lot of preliminary work has went into
coordinating the project in order to keep a strict time schedule. She
stated that the Council has already reviewed and determined the area to
be assessed and method of assessment at a previous meeting. and stated
e
e
e
Page 6
City Council Minutes
April 4. 1988
there is no reason to reconsider these elements as it will result in
delaying the entire project.
The City Administrator indicated that if the four or five commercial
properties west of Lowell Avenue were added. it would add to the expense
of the project and more than likely would not decrease the assessment
amount to the property owners.
Councilmember Tralle indicated that he agreed with the City
Administrator and also with Mayor Gunkel in that changing the assessment
district would delay the project.
COUNCILMEMBER DOBEL MOVED TO ADOPT RESOLUTION 88-23. A RESOLUTION
ORDERING THE IMPROVEMENT IN THE MATTER OF THE DOWNTOWN BEAUTIFICATION
IMPROVEMENTS OF 1987. COUNCILMEMBER TRALLE SECONDED THE MOTION.
Councilmember Schuldt indicated that he has heard many indirect negative
comments from the business people (tenants) regarding the downtown
project. He stated he had hoped that the people would have come forward
and personally voiced their concerns. but has not heard any first hand
objections since the start of the project and noted that because of this
he would be voting to order the improvement.
THE MOTION CARRIED 5-0.
OOUNCILMlMBER
ADOPTING THE
BEAUTIfICATION
TRALLE MOVED '1'0 ADOPT RESOLUTION 88-24. A RESOLUTION
FINAL ASSESSMENT ROLL IN THE MATTER OF THE DOWNTOWN
IMPROVEMENTS. COUNCILMEMBER DOBEL SECONDED THE MOTION.
Councilmember Tralle indicated that to reconsider the method or area of
assessments would delay the project and would be too costly at this
point.
Councilmember Schuldt stated that street and sewer is based on a front
footage basis. He noted that the method of assessment for the
beautification items is a different matter as the items being assessed
do not run by properties on a front foot basis. He noted that it is
difficult to assess this in the same manner as the sewer and street
improvements. He noted that because the improvements are of the nature
they are. he is in favor of the method of assessment.
THE MOTION CARRIED 5-0.
COUNCILMIMB!R SCHULDT MOVED '1'0 ADOPT RESOLUTION 88-25. A RESOLUTION
ACCEPTING BID FROM SPENSOR ELECTRIC AT A PRICE OF $73.243 AND
AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE DOWNTOWN STREET
LIGHTING IMPROVEMENT OF 1988. COUNCILMEMBER HOLMGREN SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
Page 7
e
City Council Minutes
April 4, 1988
Councilmember Tralle indicated that there has been a letter of objection
submitted from Dale Johnson who owns residential property in the
commercial area. Councilmember Tralle questioned whether there would be
a chance of deferring the assessments until such time that the property
becomes commercial.
City Attorney, Greg Korstad, stated that the City is looking into
deferrment of special assessments and that a policy will be drafted,
therefore, allowing the deferrment of special assessments for certain
circumstances.
5.3. Engineering Fee for Sewer Study
e
Mayor Gunkel indicated that costs incurred by the City Engineer for the
preparation of three sewer studies exceeded the ceiling by $1,867. She
indicated that the City Administrator is requesting the Council to pay
the Engineers one-half ($934) of the overrun. Mayor Gunkel indicated
that the ceiling was set without realizing the complexities of the
project. She stated the studies were very important and something that
should have been done a long time ago. She stated that she would like
to see the Engineers reimbursed the full amount of the overrun.
COUNCILMEMBER SCHULDT MOVED TO PAY THE CITY ENGINEER ONE-HALF OF THE
OVERRUN INCURRED FOR THE SEWER REPORTS ($933). COUNCILMEMBER DOBEL
SECONDED THE MOTION. THE MOTION FAILED 2-3. MAYOR GUNKEL,
COUNCILMEMBER TRALLE AND COUNCILMEMBER HOLMGREN OPPOSED.
COUNCILMEMBER TRALLE MOVED TO PAY THE CITY ENGINEER THE FULL AMOUNT OF
THE OVERRUN INCURRED FOR THE SEWER REPORTS ($1,867). COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-2. COUNCILMEMBERS
SCHULDT AND DOBEL OPPOSED.
5.4. Consideration of Adjustment to Sewer Availability Charge
Mayor Gunkel stated that as a result of the discussion which took place
at the 3/21/88 City Council meeting regarding the sewer availability
charge, the Council is considering charging a $300 PRF (Plant
Replacement Fee) in addition to the SAC (Sewer Availability Charge) for
hook up to the City sewer.
COUNCILMlMBER TRALLE MOVED
CHARGING $1.000 TO THE SAC
HOLMGREN SECONDED THE MOTION.
TO INCREASE THE SAC CHARGE TO $1,300,
FUND AND $300 TO THE PRF. COUNCILMEMBER
THE MOTION CARRIED 5-0.
5.5.
Subdivision Moratorium Extension
e
Mayor Gunkel eXplained that the City Council at the January 4, 1988,
meeting adopted an ordinance calling for a moratorium on the subdivision
and improvement of certain unsewered lands within the City. She noted
that the Growth Management Plan Task Force has recommended that this
moratorium be extended.
City Council Minutes
April 4, 1988
ri:lge 0
e
The City Administrator explained that an extension of the moratQrium
involves a revision to the ordinance and a public hearing notice pr1nted
in the newspaper ten days prior to the public hearing date. He
indicated these requirements would be met and the public hearing will be
held on April 25, 1988.
5.6.
Recreation Board Appointments
Mayor Gunkel indicated that interviews for Recreation Board members have
been held. She noted that the following people were interviewed for the
positions: Charlie Blesener, Clete Litetzky, and Dave Anderson.
Discussion was held regarding the three possible candidates. The City
Administrator indicated that the City is removing two City employees
from the Rec Board. He noted that Charlie Blesener is directly involved
in receation with the School District and questioned whether the same
situation would ~e created if he were on the Rec Board, as with the City
Employees on the Rec Board. He further indicated that if Charlie is not
appointed as a member he should be considered as an advisor to the Rec
Board.
COUNCILMEMBER HOLMGREN MOVED TO APPOINT THE FOLLOWING PERSONS TO THE
RECREATION BOARD:
CLETB LIPETZKY - TWO YEAR TERM
DAVB ANDERSON - THREE YEAR TERM
BYRON HOUGHTELIN - THREE YEAR TERM
MARILYN VANPATTEN - THREE YEAR TERM
EXPIRES 1/ 1/ 90
EXPIRES 1/1/91
EXPIRES 1/1/91
EXPIRES 1/ 1/ 91
e
COUNCILMlMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0.
OOfmCIL~MlIR TRALLI MOVED TO HOLD A JOINT CITY COUNCIL/RECREATION BOARD
ftmlTINa ON TUISDAY. APRIL 12. 1988. AT THE ELK RIVER CITY HALL AT 7: 00
P.M. COUNCILMlMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.7. Mechanical Amusement Device License
OOYNCltMWaIR TRALLI MOVED TO APPROVE A MECHANICAL AMUSEMENT DEVICE
tICINliI1 'OR GARY DAIGTI TO OPERATE MECHANICAL AMUSEMENT DEVICES AT THE
ILl( RIVIR THIATRI BUILDING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
TMI MOTION CARRIED 5-0.
5.8. Royal Oaks Ridge - Awarding of Bids
OOUNCILM!MBER TRALLE MOVED TO ADOPT RESOLUTION 88-26, A RESOLUTION
ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATI'ER OF
ROYAL OAKS RIDGE ADDITION IMPROVEMENT TO S & L EXCAVATING, lNC. THE
LOWEST RESPONSIBLE BIDDER, AT A PRICE OF $318,243.31 WITH THE FOLLOWING
CONDITIONS:
1. THAT THE DEVELOPERS AGREEMENT AND PLAT BE SIGNED.
2. THAT THE FINAL PLAT BE RECORDED.
3. THAT A LETI'ER OF CREDIT BE PLACED WITH THE CITY OF ELK RIVER.
e
Page 9
City Council Minutes
April 4. 1988
e
COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6. Check Register
COUNCILM!MBER DOBEt. MOVED TO APPROVE THE CHECK REGI STER. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION PASSED 5-0.
7. Other Business
The City Administrator indicated that the Police Chief is requesting
that no parking signs be placed from the Orono Softball complex west ,to
Highway 10. He indicated that the request was due to highway safety
concerns during the County Fair and softball tournaments.
C{lYNCftlmQIUt, SCHULDT MOVED TO AUTHORIZE THE PLACEMENT OF NO PARKING
SIGNS ON THE ROAD FROM THE ORONO SOFTBALL COMPLEX WEST TO HIGHWAY 10.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
e
The City Administrator indicated that the Eagles Club is requesting a
gambling renewal license to operate the activity of pull tabs at the
Eagles Club. The Council took no action to deny this request.
COUNCILMEMBER TRALLE MOVED TO CALL A SPECIAL MEETING OF THE ELK RIVER
CITY COUNCIL ON MONDAY. MAY 9. 1988 AT 7 :30 P.M.. TO BE HELD AT CITY
HALL FOR THE PURPOSE OF DISCUSSING THE 1987 AUDIT. COUNCILMEMBER DOBEt
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8. Adjournment
There being no further business. COUNCILMEMBER TRALLE MOVED TO ADJOURN
THE MEETING OF THE ELK RIVER CITY COUNCIL. COUNCILMEMBER DOBEL SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
The meeting of the Elk River City Council ended at 9:25 p.m.
~
Sandy Thackeray
Deputy City Clerk
e