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10-13-1986 CC MIN e e 3. e REGULAR MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER POLICE DEPARTMENT MEETING ROOM MONDAY. OCTOBER 13. 1986 Members Present: Mayor Hinkle. Councilmembers Schuldt. Gunkel. Tralle and Engstrom Members Absent: None Staff Present: Patrick Klaers; City Administrator. Stephen Rohlf; Building and Zoning Administrator. Thomas Zerwas; Chief of Police and Lori Johnson; Finance Director. Also Present: Terry Maurer; City Engineer. and David Sellergren; City Attorney 1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 2. Consideration of 10/13/86 Council Agenda The following items were added to the Employee Recommendation. lOb. - Lighting of Letter of Welcome to new Businesses. and Building Facade. agenda: lOa. - Public Works Water Tower Elk Logo. lOco - 10d. - Painting of City Hall COUNCILMEMBER GUNKEL MOVED TO APPROVE THE OCTOBER 13. 1986 AGENDA AS AMENDED. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION PASSED 4- O. Consideration of 10/6/86 City Council Minutes COUNCILMEMBER GUNKEL MOVED TO APPROVE THE MINUTES OF THE OCTOBER 6. 1986 CITY COUNCIL MEETING. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Site Plan Review for Coast to Coast/John Plaisted Mr. Stephen Rohlf stated that Mr. John Plaisted was present to request approval of the City Council to temporarily rent out 2.000 square feet of the Coast to Coast building. Mr. Rohlf stated that Mr. Plaisted also was requesting approval for a two foot by 26 foot sign to be placed on the mansard over the door of the requested second retail business. Mr. Rohlf stated that it is the City Attorney's opinion that since the use would be a temporary use until such time as the Coast to Coast needed to expand. it would not require amending the PUD agreement. Mr. Plaisted stated that he also is requesting the approval of the Council to accept the change in green space designated in the site plan. Mr. Plaisted stated that he had not seen the site plan when he took over construction of the parking lot from Mr. Ken Barthel and placed concrete in the area designated green space for ease in snow removal. Mr. Plaisted further stated that more plantings have already been placed around the building than is shown on the site plan and that eight more concrete planters with globe-shaped trees will also be placed in front of the building. Page 2 City Council Minutes October 13, 1986 e COUNCILMEMER TRALLE MOVED TO APPROVE THE FOLLOWING REQUESTS FOR THE COAST TO COAST BUILDING IN THE BARTHEL PUD: 1. THE CHANGE IN PLANTINGS FROM THOSE SHOWN ON THE SITE PLAN. 2. ALLOWANCE OF A SECOND TEMPORARY RETAIL USE IN THE COAST TO COAST BUILDING WITH THE FOLLOWING USES RESTRICTED FROM OPERATION: A. ALL NIGHT CONVENIENCE STORES B. GAS/SERVICE STATIONS C. INDOOR AND OUmOOR RECREATIONAL FACILITIES D. PARKING RAMPS E. TAVERNS AND BARS F. HOTELS G. LAUND ROMATS H. THEATERS I. ADULT BOOK STORES J. RESTAURANTS K. DEPARTMENT STORES 3. A '.tWO rOOT BY TWENTY-SIX FOOT SIGN TO BE PLACED ON THE MANSARD OVER THE DOOR OF THE SECOND RETAIL BUSINESS. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. e 5. Planning Commission Applicants It was the consensus of the City Council that staff be directed to contact the following applicants to be interviewed at the October 27th City Council meeting: Peter Kimball, Penny Klein, Tom Lamb, Gary Gadacz, Rohlf Anderson and Sue Myhre. 6. Partial Pay Estimate #2 for Deerfield 3rd Addition COUNCILMEMBER SCHULDT MOVED TO APPROVE PAYMENT OF PARTIAL PAY ESTIMATE /12 FOR DEERFIELD 3RD ADDITION IN THE AMOUNT OF $218,102.05 TO KENKO, INC. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Final Pay Estimate for School Street Sanitary Sewer and Water Main Improvements COUNCILMEMBER TRALLE MOVED TO APPROVE PAYMENT OF THE FINAL PAY ESTIMATE FOR SCHOOL STREET SANITARY SEWER AND WATERMAIN IMPROVEMENTS IN THE AMOUNT OF $19.615.66 TO LATOUR CONSTRUCTION. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 8. Consideration of City Hall Facilities e Mr. Klaers stated that four sites have been proposed for the location of City facilities as follows: the Sherburne Lodge, the Assembly of God Church, GarSan Building and a new facility to be constructed at 720 Dodge Avenue by REP, Ltd. Page 3 City Council Minutes October 13, 1986 e Mr. K1aers stated that in overly concerned with any However, he stated, they felt location for the long term. reviewing the proposals, the staff is not of the locations if it is to be temporary. the central business district was the best Mr. K1aers stated that in comparing the various sites, there is not a great deal of difference in the price per square footage; and that some options provide more space than necessary but all are adequate. Mr. K1aers stated the new building reasons: that the staff's recommendation is to lease space in to be constructed by REP, Ltd, for the following 1. Reasonable cost ($5.00 sq. ft.)for rental. The City does not want to purchase a building at this time. 2. Would be able to keep administrative offices and Police Department together, creating less confusion for citizens. 3. As the option into an willing building building would be newly constructed, there for arrangement of offices they would not have existing building. The owners have stated to work with the City on the interior layout to help serve the City's needs. would be some if they moved they would be design of the e 4. A new building would present an attractive and positive image. 5. Would save on utilities by combining police and administration facilities rather than having them separated. Mr. K1aers further stated that if the City were to locate their offices at the Sherburne Lodge, the Police Department would have to remain in its existing facility. He also stated that the Assembly of God Church and the GarSan building have more space than they need and the City would need to be choosy about tenants if they were to rent out part of the space. In conclusion, Mr. K1aers stated that staff was in favor of the new building to be constructed on Dodge Avenue which could be tailored to suit their needs. but that they would need assurance that the building would be constructed in a timely fashion. Counci1member Tra11e stated that he felt renting was the best option at this time. He further said that although the GarSan Building had a good location, the parking was not adedquate and also. that he did not like the idea of having the staff spread out over different levels. Counci1member Tra11e further stated that he felt it is necessary to keep the Police Department and Administrative offices together. e e e e Page 4 City Council Minutes October 13. 1986 Councilmember Gunkel stated that she was in favor of moving all the staff to one location. including the Police Department. She further stated that she would recommend the purchase/trade proposal for the GarSan building because it would meet their current needs and that whether the City decided to keep the building or sell it. it was an investment for the future. Councilmember Gunkel also stated that her second choice would be the new building on Dodge Avenue off Highway #169 for the same reasons that have already been presented. Mayor Hinkle stated that when the Council originally made the decision to lease space. the Sherburne Lodge was the only option available for consideration. Since that time. they have received several proposals which have warranted consideration. Mayor Hinkle stated that he realizes that it would not be in the best interests of the City to separate the Police and Administration. He further stated that he also was in favor of the new building proposed on Dodge by REP Ltd.. that it was the best option. the costs are feasible and that it would present a good image for the City. Mayor Hinkle also stated that he was not in favor of buying at this time. and felt the City needs time to explore alternatives for permanent City facilities. Mayor Hinkle further stated that if the Council decides on a proposal other than the Sherburne Lodge proposal. it will be necessary to rescind the previous motion to negotiate a lease with the Lodge. Councilmember Schuldt stated that initially he was not in favor of the new building proposal. but has since realized also that the departments should stay together. He also stated that he felt they should not give up their present property until permanent facilities are found. Councilmember Schuldt concluded by expressing his support for the new building proposal by REP as a good location for City facilities. Councilmember Engstrom expressed apologies on behalf of the Council to the Sherburne Lodge for any inconveniences they may have experienced in waiting for a decision from the City Council. He stated that the Council originally made the decision to temporarily lease space because they did not want to be tied into purchasing something now which might end up being their home for a long time. Councilmember Engstrom stated that he felt the present City Hall presented a negative image for the City. He stated that he was also in favor of the new building. provided it would be ready by a pre-established date. because he felt the site would provide good exposure. easy to find and would present a good image. Councilmember Engstrom commented that if and when the County Administration were to become available. they would have that option. if they didn't get tied into buying now. Councilmember Engstrom also commented from the public that the City does their present conditions and that outside appearance of the building. that he has received some concerns not leave its present facilities in some improvements be made in the e e e Page 5 City Council Minutes October 13. 1986 Mr. Klaers stated that the Gar San Building and the Assembly of God Church both have attractive proposals but felt there would be some problems with each of them and further that the Lodge proposal was the only offer at the time the decision to lease space was made. Mr. Klaers stated that he felt the Lodge would understand that it was a business decision to look at the other three proposals. and that the Council has a responsibility to decide what is best for the City. He commented that he felt that once the City actually did move out of their present building. they will surely get a number of various offers to buy or rent. Mayor Hinkle thanked the representatives present for their proposals and for their patience. COUNCILMEMBER SCHULDT LEASE CITY FACILITIES AVENUE. COUNCILMEMBER o. MOVED TO CONSIDER THE PROPOSAL OF REP. L'ID. TO AT A NEW BUILDING TO BE CONSTRUCTED AT 720 DODGE TRALLE SECONDED THE MOTION. THE MOTION PASSED 4- Mr. Klaers stated that he would begin discussions at the staff level for office arrangement and special needs requirements. Mr. Gary Santwire expressed his regret that none of the representatives for the three other proposals were permitted to speak but that he would respect their decision. He further stated that he was present not only on behalf of the GarSan building proposal but also was representing the Norhas on the REP. Ltd proposal as the broker lease agent and construction contractor. Mr. Santwire stated that he anticipates construction time to be 60 days from the date of building permit issuance to occupancy. and that constructon could begin in ten days if the permit can be issued by then. Mr. Santwire further stated that he has presented a draft developer's agreement to Mr. Rohlf this evening. He also stated that regardless of who rents the proposed building. they wish to begin as soon as possible and that they have scheduled occupancy for January 1. 1987. Mr. Rohlf stated that he could have the permit ready in ten days. provided plans are presented to him no later than mid-week. Mr. Santwire stated that the building proposed would be identical on the outside to the one right on Dodge except for the slight jog on the front. Mayor Hinkle stated that he felt February 1 was the latest date for occupancy that they could accept because a later date would cause problems for staff with the construction season fast approaching. Mr. Santwire stated that they intended to have January 1 occupancy. Mr. Santwire introduced Mr. Russ Norha and Mrs. Linda Norha. General Manager of REP. Ltd. He noted that Mr. Dave Decker was the other partner of REP. Ltd. and that the Norhas and Deckers had the controlling interest in the partnership and are the fee owners of the property. Mr. Santwire also noted that Mr. Decker owns the rear professional building off Dodge Avenue. Page 6 City Council Minutes October 13, 1986 tit Mayor Hinkle questioned whether or not it would be feasible to impose a penalty clause in the lease agreement if the City were not able to occupy the building by the established date. Mr. Klaers stated that this would be possible if agreed upon by both parties. Mr. Klaers also noted that proof of financing and the length of the lease contract should be considered. Mr. Sellergren stated that any of those type of concerns could be negotiated in a lease and suggested that a date be set after which the Council would be unwilling to accept the building for lease. It was the consensus of the City Council that the staff and City Attorney begin negotiations for a lease agreement with REP, Ltd, including design requirements, term of the lease, proof of financing, date of occupancy, etc. and that a draft lease be presented to the City Council as soon as possible for their consideration. COUNCILMEMBER TRALLE MOVED TO RESCIND THE OCTOBER 8. 1986 MOTION MADE BY THE CITY COUNCIL. AUTHORIZING STAFF TO BEGIN NEGOTIATIONS FOR A LEASE AGREEMENT WITH THE SHERBURNE LODGE. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. e It was the consensus of the City Council that staff be directed to send a letter to the representatives for the Sherburne Lodge, Assembly of God Church and GarSan building, thanking them for the time and effort spent on their proposals. Mr. Santwire expressed his clients' proceed with site work, foundation negotiation process, as they wished concern that they be allowed to and preparation of plans during the to get started as soon as possible. The Council expressed their agreement that they did not wish to slow down the project. Request for Leasing Lower Portion of City Hall Ms. Lori Johnson explained the request by Mr. Wes Anderson of Princeton to lease the lower level of the City Hall that is presently unoccupied. Ms. Johnson stated that Mr. Anderson wishes to lease the 2,600 square feet to operate a weight lifting facility. She explained that if a reasonable rent could be agreed upon, he was willing to make the necessary improvements in the rental space to make it useable. Ms. Johnson further explained that the rent would be calculated to include utility costs. She also noted the Mr. Anderson felt the concerns expressed by the Police Department could be worked out. Chief Zerwas stated that the senior high parents should be given some advance notice to get their things moved out of space in question. e Mr. Klaers stated that he felt the longest lease term that could be given would be 18 months. Ms. Johnson stated that Mr. Anderson has indicated that he would be willing to accept such a short term lease, as he is anxious to get his business started in Elk River right away and then later get his own building. e e e Page 7 City Council Minutes October 13, 1986 It was the consensus leasing out the lower to begin working out financial and personal tenant, Mr. Anderson. of the City Council that they were in favor of level of the City Hall and that staff be directed terms of a lease agreement and also. that a background investigation be done on the potential 9. Discussion on MSA Projects Mr. Terry Maurer stated that the purpose of this discussion was to review the MSA funds available now. the amount of funds which will be available in the future, which projects need to be done in 1987 and to prioritize and discuss timing of the remaining projects which are planned. Mr. Klaers stated that it is the staff's recommendation to wait until 1988 to do the Main Street project. He explained that there is much work to be done and decisions to be made before they will be able to proceed on the project. He further explained that he has received no input from the downtown business owners and there are many issues that they would be interested in such as assessments. elimination of diagonal parking and other parking issues. lighting. sidewalks. greenery. etc. Councilmember Gunkel stated that she felt the Council should take the initiative to involve the downtown business owners. Mr. Maurer stated that it would be necessary to rework the original feasibility study for Main Street. Councilmember Schuldt stated that although he would like to see the Main Street project proceed as soon as possible, he understood the reasons for postponing the project. He further stated that he felt the Chamber of Commerce would be in favor of proceeding with the Industrial Park improvements first. It was the consensus of the City Council that MSA funds be earmarked for use on the Main Street project to be done in 1988. Mr. Maurer explained the handouts presented to the City Council regarding the MSA construction fund status. MSA mileage status and the list of potential MSA projects for the future. Mr. Maurer explained that in order for a road to qualify for MSA status. it must begin and end on a State Highway. County State Aid Highway or other Municipal State Aid road. Mr. Maurer also explained that if State Aid money was spent on an MSA road it must remain on the MSA system. Page 8 City Council Minutes October 13, 1986 e Discussion was carried on regarding the following: 1. The drainage project on Proctor. 2. Possibility of doing a joint project with the County using MSA funds. 3. Main Street project. 4. Sewer line to Mississippi. 5. Setting up a sewer district. 6. Plans to formulate an assessment manual. 7. Tyler Street project and speed study. 8. 221st Project. 9. 201st and Highway 169 Intersection (North access to Deerfield 3rd) 10. Possibility for 201 to be turned back to City by the State. 11. Need to put School Street and 169 intersection on MSA system to complete porject. 12. Roads in M-Vale Subdivision. 13. States disapproval to include Simonet frontage road in MSA system. e Mr. Maurer stated that the final conclusion in the City's list of potential projects totals approximately 1.9 million dollars and only $784,000 in Municipal State Aid funds are available. Mr. Maurer explained that the Industrial Park improvements and the Elk Hills Drive/Highway #169 intersection improvements would use up approximately $340,000. He further stated that the remainder of the current balance and the 1987 allotment would total approximately $450,000 to be used on the Main Street Project; and by combining the 1988 allotment there would be approximately $700,000 available. He also noted that the City also would have the ability to borrow into the 1989 allotment, if necessary. Discussion was carried on regarding the possibility of reducing the amount of funds needed in the Industrial Park project. Mr. Maurer stated that part of the road is already completed and in fairly good shape, and that by leaving that part to be overlayed at a future date and constructing only the remainder of the road, they could save approximately $40,000 - $50,000. He also stated that concrete curb and gutter has not been planned and that the City may wish to consider it. COUNCILMEMBER TRALLE MOVED TO PROCEED WITH THE INDUSTRIAL PARK IMPROVEMENT PROJECT AS FINANCIALLY FEASIBLE IN 1987. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. For the Industrial existing section of for the new section. Park Project, the Engineer recommended leaving the road as is, and include concrete curb and gutter, e Page 9 City Council Minutes October 13. 1986 e Pat Klaers stated that in the Industrial Park Project. many financial elements need work; such as the amount of "extra" increment from the shopping center. the Utilities annual financial committment for the repayment of the water tower bonds and the Investors Association committment for selling property etc. COUNCILMEMBER SCHULDT MOVED TO AUTHORIZE TERRY MAURER TO PROCEED AS NECESSARY WITH WORK SCHOOL STREET/HIGHWAY 169/ELK HILLS DRIVE INTERSECTION AND 201/HIGHWAY 169 INTERSECTION. AND TO AUTHORIZE FUTURE USE OF MSA FUNDS FOR THESE ROADS. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. Terry Maurer stated that the 169/School Street/Elk Hills Street will need lanes for Elk Hills Drive. south edge of City is responsible for designing the Hwy. Drive intersection realignment. School right turn. left turn and straight ahead. road. will be the future north edge. COUNCILMEMBER GUNKEL MOVED TO AUTHORIZE THE MAIN STREET PROJECT AS 1988 MSA PROJECT AND TO SET FUNDS ASIDE. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4--0. The City Engineer stated that the staff will be coming back to the Council within a few months with a recommendation on additional streets to be designated as MSA roads. e lOa. Public Works Employee Recommendation COUNCILMEMBER SCHULDT MOVED TO APPROVE THE RECOMMENDATION OF MR. PHIL HALS TO HIRE ELDON LEE AT A STARTING WAGE OF $8.54 PER HOUR. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION PASSED 4-0. lOb. Lighting of Water Tower The council directed Mr. Maurer to investigate the possibility of lighting the Elk Logo on the water tower and also to check the status of the repainting of the old water tower. lOco Welcome Letter to New Businesses It was the consensus that no action be taken on this item at this time as the Council felt the Embassadors are doing a good job welcoming new businesses on behalf of the City. lOde Painting of City Hall Building Facade It was determined that this item would be further discussed at the staff level. e There being no further MEETING BE ADJOURNED. MOTION PASSED 4-0. business. COUNCILMEMBER TRALLE MOVED THAT THE COUNCILMEMBER .. GUNKEL SECONDED THE MOTION. TIm e e e Page 10 City Council Minutes October 13. 1986 The meeting was adjourned at 10:55 p.m. Respectfully submitted. D~~:: ~C~~ Recording Secretary