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08-25-1986 CC MIN e e e REGULAR WEEKLY MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER POLICE DEPARTMENT COMMUNITY ROOM MONDAY, AUGUST 25, 1986 Members Present: Mayor Hinkle, Councilmembers Gunkel, Schuldt, and Engstrom Members Absent: None Staff Present: Patrick Klaers, City Administrator; Lori Johnson, Finance Director; Phil Hals, Street Superintendent; Thomas Zerwas, Police Chief Also Present: Terry Maurer, City Engineer; Bill Birrenkott, Utilities Superintendent; Don Kettner, Doug Dill, and Hank Duitsman of the Utilities Commission A tour of the Sherburne Lodge was taken by the members of the City Council at 6:30 p.m. 1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 2. Agenda It was requested that Items 5 and 7 by ~eversed in order on the agenda and also that the following items be added: 16a. - Notice of Police Officer Resignation, 16b. - Industrial Park Improvements, 16c. - Discussion - tour of Sherburne Lodge. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE AGENDA FOR THE AUGUST 25, 1986, CITY COUNCIL MEETING AS AMENDED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0. 3. Minutes of August 18, 1986, City Council Meeting COUNCILMEMBER ENGSTROM MOVED TO APPROVE THE MINUTES OF THE AUGUST 18, 1986, CITY COUNCIL MEETING. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 3-0. 4. Resignation of Warren Williams COUNCILMEMBER ENGSTROM MOVED TO APPROVE RESOLUTION 86-56, ACCEPTING CITY COUNCIL RESIGNATION FROM WARREN WILLIAMS, WARD 2, AND DECLARING THE EXISTENCE OF A VACANCY FOR THIS POSITION. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. 5. Discussion with Elk River Municipal Public Utilities Commission Discussion of the plans for the Deerfield 3rd Addition water system was carried on. Commissioner Duitsman indicated that he understood there would be a 16" watermain through the plat. Mr. Maurer felt that there wasn't a need for a 16" line at this time and the plans call for a combination of 6", 8" and 10" lines with a booster station to maintain the correct water pressure. Council Minutes August 25, 1986 Page 2 e Mr. Maurer stated that there would be three pumps in the station; one for normal flow, and a second for peak normal flow, and a third for emergency use needs. Mr. Duitsman expressed his concern with non-looped water systems and related the problem with water in the 5th Street area. Mr. Maurer indicated that as surrounding areas developed a 16" watermain could be looped around. A major issue will be who pays for the watermain. Past experience has shown it to be difficult for property owners to understand why they should be assessed for water when they already have it. Mr. Maurer stated that they could prove benefit to the whole 400 acre area and the cost would only be approximately $200 to $300 per household. The following issues were discussed with comments noted as follows: (1) Utility Department annual payment to the City for the water tower as their participation in the TIF Project and bond repayment. e Mr. Klaers reviewed a letter from the City Attorney, Peter Beck, which states that a $20,000 a year contribution from the Municipal Utilities was a critical issue in the City's decision to go ahead with the $3,000,000 TIF Project. Commissioners Kettner and Duitsman stated that they understood the amount to be a one-time payment of $20,000 and that there is no way the Water Department could generate that kind of revenue every year to support such a project. Mr. Klaers stated that the April 1, 1985, City Council Minutes indicated that the Municipal Utilities agreed to a $20,000 payment to reduce the bond. Mr. Klaers further stated that two project schedules dated March 28, 1985 were available for the April 1, 1985, meeting. One Schedule shows a annual payment of $17,500 by the Municipal Utilities and the second schedule shows annual payments of $25,000. Mr. Klaers further stated that if the expected annual payments from the Utilities were a misunderstanding and would not be made, all monies generated from additional development in the TIF district would be needed for repayment of the bonds. He further explained that there would be no funds left to finance any proposed Industrial Park improvements, as the Council had hoped. Councilmember Gunkel stated that she is aware that there is not a large amount of funds available in the Water Department, but that the July 15, 1985, minutes indicate that the Council was still expecting a $20,000 annual payment because the City authorized to proceed with the Water Tower bond issue. Commissioner Kettner stated that last year the Water Department netted approximately $19,000. He further stated that they would research the possibilities with new developments, and the question of mandatory hookups. (2) Cost incurred for watermain replacement and improvements relating to the Gates Avenue construction. e Mr. Terry Maurer stated that the project in question is actually the East Main project, not Gates Avenue. Mr. Maurer explained that the total costs of the water construction were $32,900 plus overhead of 21.4%, for a final total of $39,952. Mr. Maurer stated that $7,635 was assessed to property owners. Mr. Maurer further stated that past City Council minutes reflect tha~ the Utilities participation would be one half of the water construction cost. Council Minutes August 25, 1986 Page 3 e Discussion was carried on regarding the ineligibility for use of MSA funds for water construction improvements in this project. Further discussion was carried on regarding determination of overhead costs. Commissioner Duitsman commented that since most of the watermain project proposed ended up not being necessary, and the fact that no assessment was levied to the Utilities, he assumed the Utilites contribution would not be necessary. He further commented that he assumed some of the City's decretionary MSA funds could be used to cover the shortfall. Councilmember Gunkel stated that the City Council had previously decided not to use any discretionary funds for the water project. Discussion was carried on regarding who would benifit from the Utilities contribution. Lori Johnson, Finance Director, stated that it would reduce the debt service and result in a lower levy in the future. The members of the Municipal Utilities expressed their willingness to pay half of the water construction costs. Both the Utilities Commission and City Council agreed that figure to be used would be the $39,900 figure (before assessments). (3) Maintenance of hydrant fee charged to City - e Patrick Klaers, City Administrator stated that the City is currently being charged a monthly hydrant maintenance charge for 164 hydrants at $3 per hydrant, for a total cost of approximately $5,900 per year. He stated that in 1982 the fee was raised from $2 to $3 per hydrant. Mr. Klaers explained to members of the Utilities Commission that the City would like some clarification as to what this charge is for and how it was determined. Russ Anderson, Fire Chief, questioned whether or not this fee was for changing the old fittings on the hydrants to accomodate the fire hoses. He noted that there are approximately 80 hydrants still to be changed and therefore, they must use an adapter to hook up the hoses. Mr. Anderson further noted that if the fee included cleaning out hydrants in the winter, this was not being done. He stated that often the hydrants cannot be found very easily and the Boy Scouts have shoveled out hydrants to help them. He further stated that flags have been placed on some hydrants in areas known to drift bad, but that only a few are flagged and children often remove them. Commissioners Duitsman and Kettner indicated that they would research this issue and have the Utilities Superintendent contact the City with an answer. (4) Payment in lieu of taxes paid to the City - e Commissioner Duitsman explained that the fee was originally based on a percentage of profits and later became a set amount of $1,000 per :monfh He further explained that prior to him serving on the Utilities Commission, the payment was dropped, but that former Mayor Frank Madsen requested that the payment be reinstated and back payments were made, to help the City with shortfunding. Council Minutes August 25, 1986 Page 4 e Discussion was carried on regarding services provided to the City by the Municipal Utilties such as street lighting. (5) Utility Commissioner Don Kettner's term expiring 12/31/86 Mr. Klaers brought this item to the City Council and Utilities Commission to make them aware this issue would becoming up. (6) Next Meeting Date between Council and Utilities Commission - See Item 7. (7) Establishment of Semi-annual Meeting Date between Council and Utilities Commission It was the consensus of the City Council and Utilities Commission that they wished to meet jointly every 3 to 6 months on a regular basis. It was determined that the Utilities Superintendent and City Administrator would be in contact to establish meeting dates. It was also requested that the Utilities be made aware of any new plats requiring water service so they could review them and provide their input at the public hearings. (8) Other Business A. West Main Street Project - e Discussion included size of line currently in Main Street (6") and the Utilities desire to replace the 50 year old line when the street project was done next year. B. 5-Year Capital Improvement Plan - Commissioner Duitsman questioned whether or not the 5 year plan was still a guide they could use. Councilmember Gunkel stated that many changes and deletions have been made. 6. Authorization for Payment on Improvement Projects on School Street, Simonet Drive, and Water Tower COUNCILMEMBER SCHULDT MOVED TO APPROVE THE FOLLOWING PAYMENTS: (1) PAY ESTIMATE #2 TO LATOUR CONSTRUCTION IN THE AMOUNT OF $55,138.90. (2) PAY ESTIMATE #7 TO HYDROSTORAGE, INC. IN THE AMOUNT OF $23,350.00 (3) FINAL PAY ESTIMATE TO J.P. NOREX, INC. IN THE AMOUNT OF $49,928.41. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 3-0. 7. Interview with Duane Kropuenske for Ward 2 Council Position 8. Interview with Henry Duitsman for Ward 2 Council Position e 9. Interview with James Tralle for Ward 2 Council Position Council Minutes August 25, 1986 Page 5 e 10. Resolution 86-57, Appointing Council Member for Ward 2 COUNCIL~lEMBER GUNKEL MOVED APPROVAL OF RESOLUTION 86-57, APPOINTING JAMES TRALLE AS CITY COUNCIL~~~ffiER FOR WARD 2 UNTIL THE TERM EXPIRES O~ 12/31/88. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. 10.5. COUNCILMEMBER GUNKEL MOVED TO APPOINT DUANE KROPUENSKE TO SERVE ON THE ELK RIVER PLANNING COMMISSION, AND THAT HIS TERM EXPIRE 12/31/87. COUNCIL- MEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. 11. Street Building Update Street Superintendent, Phil Hals, provided the following information on the progress of the planned Street Department building: (1) Soil boring complete. (2) Footing design complete. (3) Property description done and lot survey being completed by John Oliver. (4) Plans and specifications for the building shell are ready. (5) Bid package to include four types of building structure; all concrete, with steel bar joist roof, curtain wall and all steel. e (6) Bids to be opened September 4th, and reviewed with architect, Dan Lucas and Lloyd Barthel. (7) Recommendation for contracter and building system at September 8th City Council meeting. (8) Depending on type of construction, building shell could be complete in as little as 2 weeks after ordering the work. (9) Separate bid package will be prepared for electrical and mechanical. 12. Building Inspector Position It was the consensus of the City Council that City Staff advertise for the approved building inspector position with a pay range of $18,000 to $24,000 per year. 13. Ridgewood Overlay Project COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION #86-58, A RESOLUTION ORDERING THE IMPROVEMENT PROJECT OF BITUMINOUS OVERLAY FOR RIDGEWOOD EAST AND RIDGEWOOD EAST THIRD ADDITIONS. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. e COUNCILME~ffiER GUNKEL }lOVED APPROVAL OF RESOLUTION #86-59, A RESOLUTION ACCEPTING THE BIDS AND AWARDING THE CONTRACT FOR BITUMINOUS OVERLAY PROJECT FOR RIDGEWOOD EAST AND RIDGEWOOD EAST THIRD ADDITIONS. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. Council Minutes August 25, 1986 Page 6 e COUNCILMEMBER GUNKEL MOVED TO APPROVE RESOLUTION 86-60, A RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR BITUMINOUS OVERLAY PROJECT FOR RIDGEWOOD EAST AND RIDGEWOOD EAST THIRD ADDITIONS. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMEMBER ENGSTROM MOVED TO APPROVE RESOLUTION #86-61, A RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR BITUMINOUS OVERLAY PROJECT FOR RIDGEWOOD EAST AND RIDGEWOOD EAST THIRD ADDITIONS. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 14. Simonet Area Public Improvement Pro;ect COUNCILMEMBER ENGSTROM MOVED TO APPROVE RESOLUTION #86-62, A RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR SANITARY SEWER AND WATER MAIN IMPROVEMENTS ON SIMONET DRIVE, 6TH LANE AND XENIA AVENUE. COUNCILMEMBER .SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION #86-63, A RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR SANITARY SEWER AND WATER MAIN IMPROVEMENTS ON SIMONET DRIVE, 6TH LANE AND XENIA AVENUE. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 15. Urban/Rural Taxing Districts e Discussion was carried on regarding expanding the urban tax district to include fully developed plats that are continuous with the present urban district. MAYOR HINKLE MOVED TO AUTHORIZE THE CITY STAFF TO BEGIN WORK WITH THE CITY ATTORNEY AND CITY ENGINEER TO EXPAND THE URBAN TAX DISTRICT. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 16. Other Business A. Notice of Police Officer Resignation It was the consensus of the City Council that the Police Chief be authorized to hire two officers as a result of the interviews he has conducted, rather than one, due to the recent resignation of James Wilson. B. Industrial Park Improvements Mr. Klaers stated that as a result of tonights discussion with the Utilities is does not appear there will be any money available to finance the proposed improvements and the Industrial Park project is a dead issue. C. Sherburne Lodge Tour It was the consensus of the City Council that the following issues be addressed: e (1) Possibility of tour of Assembly of God property. e e e Council Minutes August 25, 1986 Page 7 (2) Recommendation from Citizens Committee. (3) More information on expenses for upkeep of present City offices. (4) Space sharing with Community Education. 17. Adjournment COUNCILMEMBER GUNKEL MOVED TO ADJOURN THE MEETING. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. The meeting adjourned at 10:30 p.m. Respectfully submitted, DWt:n- a.J-L K I-Gc~ Deborah Kleckner ~ Recording Secretary