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03-05-1985 CC MIN . REGULAR WEEKLY SCHEDULED MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE COMMUNITY ROOM OF THE LINCOLN SCHOOL TUESDAY, l1ARCH 5, 1985 --, Members Present: Mayor Hinkle, CouncilmembersEngstrom, Williams, Schuldt and Gunkel Members Absent: None 1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 2. Agenda Item 7 - Easement Vacation Request, Scheibel Public Hearing, was omitted, Item 14C. - Structural Engineering Test, 14D. - Mayor Hinkle, and 14E. - Councilmember Gunkel, were added to the March 5, 1985 City Council agenda. COUNCILMEMBER WILLIAMS MOVED TO APPROVE THE MARCH 5, 1985 CITY COUNCIL AGENDA AS AMENDED. ~OUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Minutes COUNCILMEMBER ENGSTROM MOVED TO APPROVE THE MINUTES OF THE FEBRUARY 11, 1985 CITY COUNCIL MEETING. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE MINUTES OF THE FEBRUARY 25, 1985 CITY COUNCIL MEETING. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike No one appeared for this item. 5. Development Program - Tax Increment Financing Plan Mayor Hinkle indicated that Mr. Peter Beck, of Larkin, Hoffman, Daly and Lindgren was present to discuss the proposed tax increment financing plan with the City Council. Mr. Peter Beck indicated that the tax increment financing plan was developed because of the Elk River Plaza Planned Unit Development and the need for water service to that development. Mr. Peter Beck indicated that a water study recommended that the City Council consider a 1 million gallon storage tank to serve the Planned Unit Development and otner areas within the City. Mr. Beck indicated that he has worked with Mr. Bob Middaugh, David Sellergren of Larkin, Hoffman, Ron Langness of Springsted, Inc. and other staff people developing the plan for the financing of a water tower. Mr. Peter Beck indicated that a tax increment financing district must be located within an economic development or a redevelopment district, and further indicated that the establishment of an economic development district would serve the best purpose for the City of Elk River with the established di&rict in- cluding all areas that are served or will be served by the water tower. Mr. Peter Beck indicated that the proposed tax increment district within the economic develop- ment district was the six parcels of property in the Planned Unit Development that is proposed to be developed immediately. Mr. Beck indicated that the City can City Council Minutes March 5, 1985 Page Two capture the tax increment for an eight-year period, therefore, it was recommended that the tax increment district be established only ~or the area that is proposed to be developed immediately. Mr. Beck reviewed the financing plan proposed in the tax increment plan and the time table required for review by all required parties. Mr. Beck indicated that it was proposed that it would be a twenty-year bond issue with capitalized interest for a two-year period, therefore, allowing for the capture of the full increment. Mr. Beck indicated that the City Council establish other tax increment districts within the economic development district to help cover the shortfall in the last ten years of the bond issue. Discussion was carried on regarding the tax increment plan, the proposed water tower size, the proposed site of the water tower, the time schedule for the public hearings and review of the County and the School District, and the possible means of covering the shortfall. Mr. Peter Beck indicated that the City Council must de- cidehow to cover that shortfall either by rate increases!,1 general tax levy, special assessments, connection charges, or a combination of the above/possibilities. General discussion was carried on regarding other cities' experience in tax increment financing. Mr. Peter Beck indicated that the tax increment financing plan was approached from a very conservative standpoint to protect the City. Mr. Peter Beck indicated that the developers were required to provide personal guarantees in the amount of $93,000 should the development not happen. Discussion was carried on regarding the 90 days allowed for the establishment of a tax icrement district after the building permit is issued. Peter Beck indicated that he is proposing that a public hearing be held April 1st to stay well within the State Statute guidelines. General discussion was carried on regarding the establishment of other tax increment districts within the economic development district. Utility Commissioner Duitsman indicated that he felt the water utility could not meet more than the costs they are now facing. Commissioner Duitsman indicated that the City Council should consider the water department's recommendation regarding size and location. General discussion was carried on regarding the varioud means of covering the shortfall. COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-5, A RESOLUTION AUTHORIZING THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN TO BE FORWARDED TO THE PLANNING COMMISSION, THE COUNTY AND THE SCHOOL BOARD FOR REVIEW AND COMMENT AND THAT A PUBLIC HEARING ON THE DEVELOPMENT PROGRAM AND THE TAX INCREMENT FINANCING PLAN BE HELD APRIL 1, 1985. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 6. Preliminary Engineering Report - Water Tower Mayor Hinkle indicated that Mr. Terry Mauer of Maier Stewart and Associates, was present to discuss the water tower study with the City Council. Mr. Terry Mauer indicated that in 1982, a water study had been done which determined that the City did not have enough water storage. Mr. Mauer indicated that the water tower study proposes both a 1 million gallon storage tank and a 750,000 gallon storage City Council Minutes March 5, 1985 Page Three tank. Mr. Mauer indicated that the City Council should consider the size of the storage tank, the style, the location and the proposed financing. Mr. Mauer in- dicated that the water tower study recommends a 1 million gallon storage tank to meet fire flow requirements, and further indicated that the 750,000 gallon tank would not meet the fire flow needs but because of financial constraints, it is also proposed in the study. Mayor Hinkle indicated that he felt the 1 million gallon tank was definitely the best buy. General discussion was carried on regarding wells versus a water tower. Mr. Terry Mauer indicated that wells are used for ongoing average use, but a storage tower is necessary in the case of power failure and fire flow capacity. Mr. Don Kettner, Utility Commissioner, indicated that he felt the 1 million gallon tank should be the size considered by the City Council. Discussion was also carried on regarding the style of the tank, the benefits of each style and the cost. Mr. Mauer indicated that the major difference between the hydropillar style and the pedestal style is the ongoing maintenance of the hydro- pillar as there is more space to have painted. Mr. Mauer further indicated that the benefit of a hydropillar is the storage capacity at the base of the tower. Mr. Terry Mauer indicated that an acre of land is sufficient for the tower, but the City Council should consider obtaining temporary easements for construction, as the erection of the tower requires more area than one acre. Mr. Terry Mauer indicated that the time to construct the tower should be considered by the City Council, as it is expected to take one full year from the time of the authorization of preparing plans and specifications to service. Mr. Edson Stansfield, Utilities Superintendent, indicated that the City Council should also consider the possibility of a well at the water tower site at some point in the future. Further discussion was carried on regarding the financing of the water tower. Mr. Orvil Johnson, Acting City Administrator, indicated that Mendota Heights used a combination of rate increase, WAC Charges and assessments to finance a water tower. Commissioner Duitsman indicated that he recommended that the City Council obtain bids for both a 750,000 gallon tank and a 1 million gallon tank. COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-6, A RESOLUTION AUTHORIZING THE PREPARATION OF PLANS AND SPECIFICATIONS AND THE REQUEST FOR BIDS FOR A WATER TOWER WITH FOUR ALTERNATES: A 750,000 GALLON TANK, A 1 MILLION GALLON TANK, A HYDROPILLAR STYLE AND A PEDESTAL STYLE. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED. 4-0. The Utilities Commission indicated to the City Council that they would sell up to 10 acres of their property adjoining the Industrial Park to the City at a price of $2,000 per acre. . City Council Minutes March 5, 1985 Page Four ---, 7. Easement Vacation Request - Daniel Scheibel - Public Hearing This item was postponed to the April 1, 1985 City Council meeting. 8. Agreement for Engineering Services with Maier Stewart and Associates, Inc. Mayor Hinkle indicated that the proposed agreement for engineering services submitted by Maier Stewart and Associates reflects costs from February of 1~85 to February of 1986. General discussion was carried on regarding the proposed agreement for professional services and the percent of construction costs addressed in the agreement. Further discussion was also carried on regarding the general engineering fees. COUNCILMEMBER ENGSTROM MOVED TO AUTHORIZE THE CITY TO ENTER INTO AN AGREEMENT FOR PROFESSIONAL ENGINEERING SERVICES WITH MAIER STEWART AND ASSOCIATES. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Cowles Private Road Easement Agreement Mayor Hinkle indicated that Mr. Ron Black, representing Mr. George Cowles, was present to discuss the private road agreement required by the City for the property owned by Mr. Cowles on Cleveland Street. Mr. Ron Black indicated that Mr. George Cowles had requested an administrative sub- division for his property on Cleveland Street to separate the three buildings onto three separate parcels to then allow for the sale of the individual buildings. Mr. Black indicated that in March of 1984, one of the buildings was sold and at that time, an easement was approved by the City Council to the back buildings on the other parcel of property. Mr. Black then indicated that an administrative sub- division hearing was held in November of 1984, and at that time, the City Council approved the administrative subdivision with the requiement of a private road agree- ment. Mr. Black indicated that he did not become aware of the private road agree- ment until December after the closing on the property. Mr. Black indicated that the mortgage cannot be recorded because the administrative subdivision has not been filed. General discussion was carried on regarding the administrative subdivision, the history of the Cowles property, and the private road agreement. Mr. Black indicated that he was unaware of the private road agreement requirement and now that the proper- ty has been sold, it would be difficult to get a private road agreement. Additional discussion was carried on regarding the easement approved by the City Council, the size of the easement and the need of a private road agreement. It was the consensus of the City Council that Mr. Rick Breezee, the Building and Zoning Administrator provide the City Council with all the background information regarding the administrative subdivision and the private road agreement for the City Council to then consider at the March 25th City Council meeting. 10. Parking Ordinance Amendment Mayor Hinkle indicated that the parking ordinance amendment addresses certain parking violations such as handicapped parking, that the City's current parking -., City Council Minutes March 5, 1985 Page Five ordinance does not address. Mayor Hinkle further indicated that the ordinance amendment would include the regulations as set forth in Minnesota Statute. COUNCILMEMBER ENGSTROM MOVED TO APPROVE PARKING ORDINANCE 85-4, AN AMENDMENT ADOPTING PARKING REGULATIONS AS SET FORTH IN MINNESOTA STATUTES CHAPTER 169. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 11. Ordinance Amendment - Sanitary Sewer Charges for Users Mayor Hinkle indicated that the proposed ordinance amendment addresses standards used in determining sewer user charges for various types of commercial, public and institutional facilities that have not previously been included in the City's sewer user charges ordinance. The City Clerk indicated that the ordinance amendment would include the standard for sewage volume units for arenas, ballrooms, banks, body shops, cocktail lounges~ and handball, racquetball and tennis courts, which was not addressed in the Code. COUNCILMEMBER GUNKEL MOVED TO ADOPT ORDINANCE 85-3, AN ORDINANCE AMENDMENT REGARDING STANDARDS USED IN DETERMINING SEWER USER CHARGES FOR COMMERCIAL, PUBLIC AND INSTITU- TIONAL FACILITIES. COUNCILMEMBERS WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-1. 12. Bingo/Gambling Licenses Approval The City Clerk indicated that the bingo and gambling license approval is required by the State's Charitable Gambling Board. The City Clerk further indicated that the State is now issuing bingo and gambling licenses, but requires City approval of those licenses. The City Clerk further indicated that the SL' Andrew's bingo license, the Guardian Angel's bingo license, the Eagle's gambling license, the Legion's gambling license are all renewals of previous years. Discussion was carried on regarding the City's bingo and gambling license ordinance and the need for review because of the State now issuing bingo and gambling licenses. Mr. Peter Beck of Larkin, Hoffman, Lindgren & Daly indicated that he would review the City's ordinance to recommend amendments, if necessary. COUNCILMEMBER WILLIAMS MOVED TO APPROVE THE BINGO AND GAMBLING LICENSES FOR ST. ANDREW'S, THE GUARDIAN ANGELS, THE EAGLE'S CLUB, AND THE LEGION CLUB. COUNCILMEMBER ENGSTROM SECONDED THE MOTION ~ THE. MOTION. PASSED 4"':'0. 13. Mechanical Amusement Device License - Sunshine Depot Discussion was carried on regarding the outstanding bill in the amount of $500.00 to the Sunshine Depot for false alarm calls. It was the consensus of the City Council that the Police Chief talk with Mr. Rob VanValkenburg, owner of the Sunshine Depot, regarding that outstanding bill. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE MECHANICAL AMUSEMENT DEVICE LICENSE FOR THE SUNSHINE DEPOT. COUNCILMEMBERWILLIAMSSECONDEDTHE MOTION. THE MOTION PASSED 4-0. 14. Update Items A. Truck Bid - Street Department City Council Minutes March 5, 1985 Page Six ~ The City Clerk indicated that Elk River Ford would not consider selling the one- ton truck at the original purchase price, therefore, the Street Superintendent, Mr. Phil Hals, has advertised for bids for a one-ton truck. The City Clerk in- dicated that the specifications will be written to also allow for the bidding of a 1984 truck, should a dealer have one on hand. B. Liquor Store Sign It was the consensus of the City Council to request that the liquor store manager confirm that the proposed sign would meet the City's sign ordinance. C. Structural Engineering The City Clerk indicated that the Street Superintendent, Mr. Phil Hals, had talked with a structural engineer from TKDA regarding testing of the City Hall building. The City Clerk indicated that TKDA proposed a walk-through analysis of the building to be charged at an hourly rate and not to exceed $600.00. The City Clerk indicated that the engineer indicated a complete analysis of the building without plans would require x-rays and core borings at a cost of approximately $10,000. It was the consensus of the City Council that no further structural testing would be done at this time. D. Mayor Hinkle Items Mayor HInkle indicated that a meeting has been scheduled between the County Commissioners and the City Council for March 14th, 7:00 p.m. at the County Commissioner's Room to discuss purchase of the County Administration building. E. Councilmember Gunkel Item Councilmember Gunkel requested that the City send minutes of the City Council meetings to Mr. Edson Stansfield, Utilities Superintendent. 15. Check Register COUNCILMEMBER SCHULDT MOVED TO APPROVE THE FEBRUARY 28TH CHECK REGISTER. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. 16. Tentative Agenda The Beautification Committee, and the Star Cities Update are items tentatively scheduled for the next regular scheduled City Council meeting. There being no further business, COUNCILMEMBER GUNKEL MOVED THAT THE MEETING BE ADJOURNED. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 4-0. Respectfully submitted, Phyllis Boedigheimer City Clerk/Treasurer PB:dk