08-26-1985 CC MIN
THE REGULAR MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
MONDAY, AUGUST 26, 1985
Members Present: Mayor Hinkle, Councilmembers Gunkel, Williams and Engstrom.
Members Absent: Councilmember Schuldt
Staff Present: Tom Bublitz; City Administrator, Terry Maurer; City Engineer,
Phil Hals; Street Superintendent, Dave Sellergren; City Attorney,
and Tom Zerwas; Police Chief
1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle.
2. Agenda
Items 7D, Hockey Association and 7E Legal were added to the agenda.
COUNCILMEMBER GUNKEL MOVED TO APPROVE THE AUGUST 26~ 1985 CITY COUNCIL AGENDA
AS AMENDED. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0.
3. Citizen's Advisory Committee
Mayor Hinkle addressed the Citizen's Advisory Committee with the major reasons
for holding the meeting and stated that the Council would like some thoughts
from the Committee regarding the City Hall referendum and where the City stands
at the present time regarding this matter. The following are some of the main
though ts and ideas which resulted from the meeting:
Some reasons for failure:
1. Too much money proposed for facilities. It is difficult for people to vote
themselves a large tax increase. Members felt a price range of $400,000 to
$500,000 would have a better chance of being approved.
2. General public no~ aware or convinced of the urgency of the need of a new
facility.
3. Committee representatives felt Mr. Boarman was not totally honest with them
and would not listen to their suggestions.
4. Felt that remodeling of the old building was possibly not the best choice.
Possible ideas for future:
1. Contact Citizen's Committee first before any groundwork is done.
2. Have Citizen's Committee work with the City Council.
3. Make the public aware of the changes that must be done to existing City
Hall if employees are to stay, and the cost of these changes as compared
to the option of moving.
4. Have a Citizen's Committee of 20 - 25 people as opposed to 40.
.
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City Council Minutes
August 26, 1985
Page Two
4. School Street Sanitary Sewer Improvement - Public Hearing
Terry Maurer, the City's Consulting Engineer, addressed the public. Mr. Maurer
stated that in June of 1985, the City Council authorized a feasibility study on
the project, which was recommended by City Staff because of certain interest
shown from property owners in the area. Mr. Maurer explained the proposed layout
of the sewer project a.nd stated that the estimated construction cost was $57,000
and the estimated administrative, engineering, etc. costs were $14,600 totalling
$71,600. Mr. Maurer further stated that the first payment would .be paid on the
1986 taxes.
Mayor Hinkle opened the public hearing.
Discussion was held as to whether water would be put in at the same time as sewer.
Mr. Maurer indicated that water was not included in the feasibility study.
Mayor Hinkle closed the public hearing.
5. Assessment Hearing for School Street - Public Hearing
Mayor Hinkle opened the public hearing and stated that anyone who had any
questions regarding the proposed assessment charges on their property may
address the council at this time.
Gary Gunderson from Central Lutheran Church addressed the Council as to how the
number of dwelling units per pa.rcel was derived at. Terry Maurer stated that the
property is zoned R-4 and that the maximum number of dwelling units per acre is
22. Mr. Maurer further stated that to get the number of dwelling units per acre
he took the number of acres for each parcel and multiplied by 22.
Mr. Ron Kuhn who owns the Creative Estates property, addressed the Council. Mr.
Kuhn stated he felt the $10,697 was a high price to pay because of the fact that
he had been assessed for sewer on his property twice already and this would be
the third time assessed. Councilmember Williams stated that Mr. Kuhn owns two
seperate pieces of piIJoperty which is the reason for the two previous assessments.
Mr. Kuhn noted this was correct and further stated that the south piece would
still be assessed two times with the proposed sewer assessment.
Terry Maurer stated that the improvements could be made by excluding the
Creative Esta.tes piIJoperty, and further indicated that the reason for including
the property in the project was because the City staff was under the impression
that Mr. Kuhn would like to abandon the sewer easement across his property. Mr.
Kuhn noted that he would like to abandon the sewer easement, but he did not want
to pay $10,000 to do this.
Councilmember Gunkel noted that if Mr. Kuhn's property has two legal descriptions
and only one potential piece is legally involved in the project, maybe the assessment
charge should be for the one piece only. Mr. Maurer indicated that if this were
to happen, then Mr. Kuhn would pay a small fee, and the remaining property owners
would have to pick up the balance of the assessment.
Councilmember Engstrom indicated he would like to have Mr. Maurer come back with
hook-up charges and a projected cost for water.
City Council Minutes
August 26, 1985
Page Three
Larry Morrell questioned Mr. Maurer as to how he would obtain the necessary
easements. Mr. Maurer indicated that the costs for the project do not include
the buying of easements, but that the City is assuming the landowners will give
the easements.
COUNCILMEMBER WILLIAMS MOVED THAT TERRY MAURER, THE CITY'S ENGINEER, REESTABLISH
THE COST OF THE PROJECT BY LEAVING OUT CREATIVE ESTATES, AND FURTHER BY DISCUSSING
WITH THE STAFF OTHER POSSIBILITIES TO APPROACH CREATIVE ESTATES AND THEN PRESENT
THE FINDINGS TO THE COUNCIL. COUNCILMEMBER GUNKEL SECONDED THE MOTION.
Councilmember Engstrom stated that Terry Maurer should bring the formula for
figuring out SAC charges to the next Council meeting.
THE MOTION PASSED 3-0.
6. King Street and Main Street Tax Increment Financing Feasibility Report
The City Administrator stated that the Downtown Development Corporation had re-
viewed the development proposal for King and Main Street and had authorized Zack
Johnson to prepare a work plan. The City Administrator further indicated that
Zack Johnson could have the study done in three weeks, and further stated that the
preliminary study would cost approximately $3,600 to $3,800. The City Administrator
stated that if everything proceeds on schedule, the minimum amount of time would
be 14 weeks from the time the developers group provided information to Mr. Johnson
to the time the bonds would actually be issued.
Cliff Lundberg stated he felt Zack Johnson's charges for the study should be
broken down. Mr. Lundberg noted that he felt Mr. Johnson's fees were too high
for the amount of work he is actually doing because of the fact that the City
Staff and the Downtown Development Committee is providing him with most of the
information. The City Administrator indicated he would contact Zack Johnson and
ask for a breakdown of his fees.
COUNCILMEMBER WILLIAMS MOVED TO TABLE THIS ITEM UNTIL THE NEXT CITY COUNCIL MEETING
AT WHICH TIME THE CITY ADMINISTRATOR WOULD HAVE MORE INFORMATION REGARDING ZACK
JOHNSON'S FEES. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PAS SED 3-0.
7. Administrator's Update
A. Economic Development
The City Administrator indicated that at the present time Elk River does not
have a package of material to give to perspective businesses in Elk River,
and also there is no staff person devoted in economic development. The City
Administrator indicated that he felt it would be a good idea to use someone
from the City's lawfirm to make up a package as to what is available in Elk
River regarding topics such as IRB'S, HRA, Economic Development Commission and
TIF.
Dave Sellergrem, the City's Attorney, indicated that he would be interested
in preparing such a package and further that he could get a proposal to the
City Council for their review.
City Council Minutes
August 26, 1985
Page Four
COUNCILMEMBER ENGSTROM MOVED TO AUTHORIZE LARKIN, HOFFMAN, DALY, LINDGREN
TO PUT TOGETHER A PROPOSAL FOR AN INFORMATION PACKET ON WHAT ELK RIVER HAS
AVAILABLE FOR PERSPECTIVE BUSINESSES. COUNCILMEMBER WILLIAMS SECONDED THE
MOTION. THE MOTION PASSED 3-0.
B. Union Negotiations
The City Administrator indicated that according to State law, a special
executive meeting can be held and further stated he would like to hold such
a meeting.
C. League Of Minnesota Cities Regional Meeting and Coalition of Outstate
Cities Meeting.
The City Administrator stated that the League of Minnesota Cities and the
Coalition of Outstate Cities are holding meetings on the 11th and 27th of
September, and that the City Council may attend if possible. The Mayor
stated he felt the City Administrator should try to attend the Coalition of
Outstate Cities meeting.
D. Hockey Association
The City Administrator indicated that he is working with Steve Solomon of
Larkin, Hoffman, on the revenue bonds to assist the Hockey Association with
improvements and expense to the ice arena. The City Administrator further
stated that the Hockey Association was under the impression that the City
would cover the legal costs involved.
The City Administrator handed out a copy of the minutes in which the motion
was made regarding this matter, and it was the consensus of the City Council
that there was nothing in the motion which states the City would pick up the
legal fees.
E. Legal
The Mayor addressed Dave Se11ergren, the City's Attorney, and stated he felt
it was time for the City to take a look at where they were in regards to some
of the wo,rk load and how to improve it.
The City Administrator stated he felt it would be beneficial to the City to
have some contact time with the City's attorney, because there are times
when phone calls are just not enough to keep on top of things. The Mayor
indicated that the contingency calls for one meeting per month with the City
Attorney.
It was the general consensus of the City Council that a meeting once or twice
a month on a regular basis should be held with the City Attorney and City Admin-
istrator and possibly to include the City Staff.
Discussion was held regarding the City Attorney attending Council meetings.
City Council Minutes
August 26, 1985
Page Five
8. Check Register
-,
COUNCILMEMBER GUNKEL MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER WILLIAMS
SECONDED THE MOTION. THE MOTION PASSED 3-0.
9. Adjournment
There being no further business, COUNCILMEMBER WILLIAMS MOVED TO ADJOURN THE
CITY COUNCIL MEETING. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION
PASSED 3-0.
The City Council meeting adjourned at 10:50 p.m.
Respectfully submitted,
~
Sandra Thackeray
Administrative Secretary