11-18-1985 CC MIN
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REGULAR MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
MONDAY. NOVEMBER 18. 1985
PRESENT: MaYo~ Hin~:le. Councilmembe~s Schuldt. Gunkel.
Williams and En9st~om
Membe~s Absent: None
Staff Present:
Tom Bublitz. CityAdminist~ato~; Te~~Y Maure~.
City En9inee~; Dave Selle~9ren. City Attorney;
Phil Hals. St~eetSuperintendent; Tom ZerwBs.
Police Chief; Da~rell Mack. Sewer
Superintendent
1. Mayor Hinkle called the meetin9 to order at 7:30 p.m.
2. Consideration of Octobe~ 28. 1985 City Council Minutes
It was noted that the date Janua~Y 6. 1985. on page six
should be corrected to ~ead Janua~Y 6. 1986.
COUNCILMEMBER GUNKEL MOVED TO APPROVE THE OCTOBER 28. 1985
CITY COUNCIL MINUTES AS AMENDED. COUNCILMEMBER ENGSTROM
SECONDED THE MOTION. THE MOTION PASSED 4-0.
Conside~ation of Novembe~ 18. 1985 City Council Agenda
Councilmember Schuldt indicated he wo~ld like to see item #8
deleted from the agenda because he felt it was not proper
fo~ the City to make recommendations re9ardin9 what the
County should do ~e9ardin9 their property. MaYor Hinkle
stated he felt the item should remain on the agenda mainly
because there were people in the audience present for this
item. Councilmember Schuldt withdrew his request.
COUNCILMEMBER
COUNCILMEMBER
PASSED 4-0.
GUNKEL
ENGSTROM
MOVED TO
SECONDED
APPROVE THE
THE MOTION.
AGENDA.
THE MOTION
4. Open Mike
Councilmember Schuldt addressed the Council re9a~din9 the
City donatin9 money for the Senior Graduation Party.
Councilmember Schuldt noted that last Yea~ was the fi~st
Yea~ the 9raduation ni9ht party was held and stated that it
was a hUge success. He indicated he felt the City could take
the money the City is savin9 on police protection for
sraduation nisht and donate it to the committee for
9~aduation nisht. He further stated that he would like to
encourase the Council to find money in the budget to help
with the sraduation party in comins Years. Councilmember
Schuldt indicated that if the City Council werewillins to
donate money for this cause he would so to other su~roundins
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CITY COUNCIL MINUTES
NOVEMBER 18. 1985
Cities and request money for this cause from the City Councils.
COUNCILMEMBER SCHULDT MOVED TO DONATE $500.00 TO
GRADUATION COMMITTEE FOR THE SENIOR GRADUATION PARTY.
HINKLE SECONDED THE MOTION.
THE
MAYOR
Councilmember Williams indicated he supports the theory but
stated he felt with the budget problems he was hesitant in
donatin9 the money at this time. Councilmember En9strom
indicated he would like to talk to a few people re9ardin9 the
party and get more information on the results of the party
last year before he makes a decision.
COUNCILMEMBER
COUNCILMEMBER
PASSED 4-0.
ENGSTROM
WILLIAMS
MOVED
SECONDED
TO
THE
TABLE
MOTION.
THE MOTION.
THE MOTION
5. Consideration of Request for Final Payment for Trunk Highwav
169 Water Main Crossing Project
The City Administrator indicated that the City's EnBineer has
recommended acceptance of all work and final payment for the
Hi9hwav 169 watermain loop project.
COUNCILMEMBER WILLIAMS MOVED TO ADOPT RESOLUTION 85~67 A
RESOLUTION ACCEPTING WORK PERFORMED UNDER ELK RIVER PLAZA PUD
16 INCH TRUNK WATER MAIN IMPROVEMENT PROJECT AND AUTHORIZING
PAYMENT. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE
MOTION PASSED 4-0.
6. Consideration of Final Payment on Ridgewood Overlay Project
The City Administrator indicated that the City En9ineer has
inspected the work performed bvBuffalo Bituminous for the
Ridgewood overlay project and further stated that the work
was found to be in compliance with the contract documents,
technical sF'ecifications. and constr'uction plans. The City
Administrator further stated that the City En9ineer has
recommended approval of the final payment continsent on the
r'eceiF't of:
1. Minnesota Department of Revenue Form IC-134.
2. Consent of Surety Company to final payment.
3. Certification of Payment for Labor and materials.
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CITY COUNCIL MINUTES
NOVEMBER 18, 1985
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION
RESOLUTION ACCEPTING WORK PERFORMED UNDER RIDGEWOOD
IMPROVEMENT PROJECT 1985-1 AND AUTHORIZING
CONTINGENT ON THE RECEIPT OF THE AFOREMENTIONED
STIPULATIONS. COUNCILMEMBER WILLILAMS SECONDED THE
THE MOTION PASSED 4-0~
85-68 A
OVERLAY
PAYMENT
THREE
MOTION.
7. Conside~ation of Request Fo~ Pa~tial Payment On Elevated
Wate~ Towe~ P~oJect
Ter~y Mau~e~, the City's Enginee~ stated that the pa~tial pav
estimate *1 f~om HvdrO$to~age,fo~thewate~ is fo~ $296,846.25.
He fur-ther' stated the f-ayment is for' Design and Dr-awings,
Foundation, 801. of the fab~ication and 301. of the E~ection.
COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-68A, A
RESOLUTION AUTHORIZING PARTIAL PAY ESTIMATE #1 FOR ELEVATED
WATER TOWER PROJECT IN THE AMOUNT OF $296,846.25.
COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED
4-0.
Conside~ation of She~bu~ne County Cou~t House to the
National Registe~ of Histo~ic Places
MaYo~ Hinkle noted that the She~bu~ne County Cou~t House is
being considered bv the State Boa~d of Review fo~ nomination
to the National Registe~ of Histo~ic Places. Mavor Hinkle
fu~the~ indicated that the County Commissioner has asked
that the City gO on ~ecord stating that this buildins not be
designated as histo~ic. Mavor Hinkle furthe~ stated that he
felt the builins has no histo~ic value.
Councilmember Schuldt stated he felt this was a matter that
belonss with the Countv Commissione~s as it is a Countv
buldins on County land.
Councilmember Gunkel stated she had no st~ons feelins one wav
or the other. She stated the County has not fo~mallYor
publicly made a statement one wav or the other, and yet they
have asked the City to do 50. Councilmember Gunkel stated
she felt it is not appropri~te for Elk River to make a
formal statement on this issue.
Gress Guzv, Sherburne County
Sherburne County Courthouse
house in the State besides one
looking at brinsing it back
when it was orisinally built.
a landmark for Elk River.
Historian, stated that the
is the only remainins court
other. He said thev would be
to a wood structure as it was
He further stated it would be
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CITY COUNCIL MINUTES
OVEMBER 18, 1985
Councilmember Engstrom stated he felt the Citv needed this
to build UF"on for histor"v. He fur.ther" stated we should be
proud there is somethins in Elk River that professional
historians feel is worth keeping.
A vote was taken of the audience of those in favor or
opposed to making the builing a historical site. The vast
maJoritv of the people in the audience voted for considering
the building as a historical site.
The Citv Council took no action on this matter.
9. Westwood, Lundsren Homes First Addition, and Island View
Third Addition Sanitary Sewer and Water Main Project/Public
Hear i ns
Terrv Maurer, the Citv's Ensineer, presented the project to
the Citv Council and the audience. Terry Maurer stated that
the Citv is proposing to extend sewer and water to serve the
area of Westwood, LundsrenHomes First Addition and Island
View Third Addition. Mr. Maurer further indicated that in
earlv September the Citv Council invited the people in these
areas to an informational meetins because of some probelems
which have been developins in the area. He indicated that
there are some present svstems failins and because of the
smaller lot sizes it mav be impossible to rebuild existing
septic systems. Terrv Maurer gave a presentation of the
feasibilitv study at this time.
Mavor Hinkle noted that the Citv Council did not initiate
the project and further stated that it was a request from
people in the area.
Mavor Hinkle opened the public hearins at this time.
The following are persons who expressed opinions on this
F"r"o~i ec t:
Marilvn VanPatten -Stated she was interested in sellins her
house and would have a hard time with the assessment on it.
Ken Noltv Felt the assessment charse was too high.
Indicated he felt the homes would not sell because of the
high assessment charse. Totallv against the assessment.
Mark Davis - Question resardins the SAC charse.
Robert Bell - Questioned the cost of the storm sewer.
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CITY COUNCIL MINUTES
OVEMBER 18. 1985
Rikki Buttweille~ - Questioned whethe~ p~ope~ty taxes would
be~aised because evaluation of p~ope~ty would b~ ~aised.
EvonHetland - Questioned hGW the cost of the p~ope~ty could
be Justified with such a hish assessment. Totally opposed
because it would cost he~ mo~e than she would sain.
Joe Be~glove Questioned how many p~oper~y owne~s were
in~erested in the p~oJect and ~uestioned who would make the
final decision as to whethe~ or not the assessment would gO
th~ough.
Barbara Ernst - Stated she owns 9 lots. Indicated she would
be looking at Just walkins away from the lots if the
assessment were passed. Stated she was totally opposed to
the assessment.
Lloyd Anderson Questioned who would pay the taxes and
assessments if the owners walk away from the property.
Eleanor Todal -Understood the project was initiated because
only four people complained.
Peter Rohlf - Wanted to see a show of hands as to how many
people we~e in favor or opposed to the project.
Dick Hetland- Stated he was opposed to the project because
he sees no increase in value in the property.
Jane Williams Questioned how much it would cost to
rebuild a sewer system if it should fail.
Michelle Davis - Questioned if a lot line could be removed
soa person could pay for one unit as opposed to two.
Lorraine Lieber indicated she lives by a pond and was
questioning whether water would be drained into it.
Jim Hennum Stated the assessments would not raise the
property value by the cost of the assessments. Stated he is
opposed because he feels it is not needed in the area.
After discussion by the City Council, a vote of hands as to
those opposed to the assessment was taken. A vast maJo~ity
of the people we~e against the assessment.
The improvement project for sanita~y sewer, water main,
street restoration and storm sewer improvements for proprty
in the Westwood Subdivision, Lundgren Homes First Addition,
and Island View Third Addition was dropped at this time.
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CITY COUNCIL MINUTES
OVEMBER 18, 1985
Public Hearing on 1986 Proposed City Budget and Proposed Use
of Federal Revenue Sharing Funds
The Citv Administrator indicated that he did receive a time
extension from the State to set the levy. and indicated that
h& was requestins the Council to do so at this time.
The Citv Council discussed umbrella coveraee, and the
special levies of LAWCON. Dutch Elm and Civil Defvense.
Mavor Hinkle opened the publichearins at this time. No one
appeared for or asainst the matter. Mavor Hinkle closed the
1=- LI b lie h ea r- ins.
Mavor Hinkle closed the public hearins.
The Council discussed the purchase ofumtrella coveraeE for
the Citv. The City Administr'ator- ned-e-d that umbr'e-Ila
coveraee was a special levv over and above the general fund
levv limit. He also noted that the estimated cost for
umbrella coveraee would be between 525,000 and 535,000. He
also pointed out that presentlv onlv one carrier in the
state is offerins umbrella coveraee and that is the Leaeue
of Minnesota Cities Trust. He added that the umbrella
coveraeethe Leaeue offers is onlv for 51,OOO,QOO.
The Council continued to discuss the purchase of umbrella
coveraee and it was noted that the limits of liability under
State Statute limits a Citv's liabilitv to $200,000 per
claimant and $600.000 per occurrence. The Citv
Administrator pointed out that if a Citv purchases coveraee
in excess of these limits. it waives the limits to the
extent of the coverage it purchases. He also noted that the
$600.000 statutorvlimit had not been tested in court.
The Council continued this discussion and. based on the
prohibitive cost, the ~tatutorY limitations of liability and
the unavailability of a choice of umbrella coverages, the
City Council deleted the umbrella coveraee from the overall
tax levv.
COUNCILMEMBER GUNKEL MOVED TO ADOPT RESOLUTION 85-69, A
RESOLUTION AUTHORIZING TAX LEVIES FOR CALENDAR YEAR 1986.
COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION
PASSED 4-0.
The City Administrator indicated he was presenting the City
Council with a resolution which would authorize the
transferrins of the followins funds:
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PAGE 7
ITY COUNCIL MINUTES
OVEMBER 18. 1985
1. The transferring of $8,037 from the Orono Dam Capital
Projects fund to the Orono Dam Debt Service Fund.
2. ThE' transfer'r'ing of $510 from the Ge'ner'al Fund to 1983
Certificates of Indebtedness Capital Pr~Jects Fund to
elirninatethe fund balance deficit.
3. The tr'ansfer'r'ing of $50.492 of the 1978 Cer'tificates of
I ndebtendE'ss DE'bt Ser'vi c e Fund to thE' Gener.a 1 Fun.d",
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85-70. A
RESOLUTION REGARDING THE TRANSFERRING OF FUNDS FROM DEBT
SERVICE FUND. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE
MOTION PASSED 4-0.
The City Administrator noted that there was $36,100 in
revenue sharing funds.
MaY~r Hinkle opened the public hearing. No one was for or
in opposition of for this item.
COUNCILMEMBER ENGSTROM
REVENUE SHARING FUND
COUNCILMEMBER SCHULDT
PASSED 4-0.
MOVED TO ALLOCATE THE MONIES IN THE
TO THE STREET DEPARTMENT.
SECONDED THE MOTION. THE MOTION
COUNCILMEMBER GUNKEL MOVED TO CONTINUE THE PUBLIC HEARING
REGARDING THE DETAIL OF THE BUDGET. COUNCILMEMBER WILLIAMS
SECONDED THE MOTION. THE MOTION PASSED 4-0.
IDA. Review of Urban/Rural Tax Ratio
Discussion was held regarding the boundary lines of the
urban/rural tax ratio. It was indicated that once an area
is platted, it should then be put in the urban district.
It was the Council's feeling that it would take some time to
rE'do thE' boundary lines since the City has had so many new
subdivisions in the last couple of Years.
MAYOR HINKLE MOVED TO LEAVE THE URBAN/RURAL TAX RATIO AS IT
WAS IN 1985. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE
MOTION PASSED 4-0.
11. Public H~aring for $1.600.000 IRB for Scherer Ltd.
ThE' City Administrator indicated that a public hearing was
being held by the City Council on an industrial development
FTO~iE'ct F'r'oF'osed to be under'taken and financed by the Cit.y
and Scherer Limited Partnership. The City Administrator
further indicatE'd that the project consists of the
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PAGE 8
CITY COUNCIL MINUTES
NOVEMBER 18. 1985
construction of a 40.000sCJuar'e foot r'etail facility on Lots
5, 6 and 7, Block 2, Elk River Plaza, which will be leased
by Pamida.
Mayor Hinkle opened the public hearins.
John Gries explained the process for the IRB at this time.
Mayor Hinkle closed the public hearins.
COUNCILMEMBER ENGSTROM MOVED TO APPROVE RESOLUTION 85-71. A
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOPMENT PROJECT BY SCHERER LIMITED
PARTNERSHIP UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE
MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR
APPROVAL THEREOF. COUNCILMEMBER SCHULDT SECONDED THE
MOTION. THE MOTION PASSED 4-0.
12. Consideration of Request for IRB For Hardware Store
The City Administf'atof- indicated that Jay Mor'f-ell and Johr,
Plaistad ar'e F'resentins to the Council a F'f'oF-osal
reCJuestins that the'City undertake and finance a proJ~ct
con s i s tin s 0 f the con s t r. u c t ion 0 fan a F- F' f' 0 xi ma tel 0,000
sCJuare foot buildins for a hardware stor~ at part of Lot 7,
Block 2. Elk River Plaza. which would be owned and operated
by Jay Morrell and John Plaistad. The City Administrator
fur'ther' stated that this would follow the same pf'oceduf'E' as
the PamidaStore project.
COUNCILMEMBER ENGSTROM MOVED TO ACCEPT RESOLUTION 85-72. A
RESOLUTION GRANTING PRELIMINARY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOPMENT PROJECT. JAY MORRELL AND JOHN
PLAISTAD PARTNERSHIP UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT AND AUTHORIZING APPLICATION FOR BOND
ISSUANCE AUTHORITY THEREFOR. COUNCILMEMBER GUNKEL SECONDED
THE MOTION. THE MOTION PASSED 4-0.
13. Consider Resolution Acceptins bids and authof'izins Purchase
of Police Patrol Sedans
Police Chief Zerwas stated that on November 13. 1985, the
City received bids for the purchase of two police patrol
sedans. He further stated that the low bid was received
ff-om Br-oo~:dale FOf'd in the' amount of $11.288 F'ef' unit.
Chief Zerwas noted that on November 14. 1985, Hennepin
County awarded thE' bid for Police vehicles to
Vikins/Southdale Ford at a price of $11.111 per unit.
PAGE 9
CITY COUNCIL MINUTES
NOVEMBER 18. 1985
Chief Zerwas indicated that- the City has also received bids
for the sale of one 1983 and one 1984 Police Vehicles. He
indicated that the bids came in at $3,000 for the 1984
vehicle and $2.500 for the 1983 vehicle.
COUNCILMEMBER WILLIAMS MOVED TO GRANT AUTHORIZATION TO THE
CHIEF OF POLICE TO ACCEPT THE aIDS RECEIVED FOR THE 1983 AND
1984 OLD POLICE VEHICLES. COUNCILMEMBER ENGSTROM SECONDED
THE MOTION. THE MOTION PASSED 4-0.
COUNCILMEMBER WILLIAMS MOVED TO ADOPT RESOLUTION 85-73. A
RESOLUTION REJECTING BIDS AND AUTHORIZING THE PURCHASE OF TWO
POLICE PATROL SEDANS FROM VIKING/SOUTHDALE FORD AT A UNIT
PRICE OF $11.111. COUNCILMEMBER ENGSTROM SECONDED THE
MOTION. THE MOTON PASSED 4-0.
14. Consideration of Resolution Authorizin9 Purchase of IT28
Front End Loader
COUNCILMEMBER WILLIAMS MOVED TO ACCEPT RESOLUTION 85-74. A
RESOLUTION AUTHORIZING PURCHASE OF IT 28 FOUR WHEEL DRIVE
FRONT END LOADER. COUNCILMEMBER ENGSTROM SECONDED THE
MOTION. THE MOTION PASSED 4-0.
15. Administrator's Update
A. RDF Update
The City Administrator updated the Council on the RDF
and presented a handout to the Council.
B. Stop Si9n At School and Proctor
Mayor Hinkle stated that the County En9ineer and County
Commissioners were opposed to the stop si9n bein9 put back
at School Street and Proctor Street.
The Mavor' fur.ther. statf:'d he had r'eceivE'd some lE.ttE'r's in
favor of r'e-er'ectin9 the stop si9n. The Mavor' noted hE'
felt the Council should pass the resolution statin9 that
the stop si9n be re-erected at School and Proctor.
COUNCILMEMBER GUNKEL MOVED TO ADOPT RESOLUTION 85-75. A
RESOLUTION CALLING FOR THE RE-ERECTION OF A STOP SIGN AT
SCHOOL STREET AND PROCTOR AVENUE. COUNCILMEMBER SCHULDT
SECONDED THE MOTION. THE MOTION PASSED 4-0.
C. Stop Si9n At East Main and UPA Drive
PAGE 10
CITY COUNCIL MINUTES
NOVEMBER 18, 1985
COUNCILMEMBER SCHULDT MOVED TO INSTALL A $TOP SIGN AT
EAST MAIN STREET AND UPA DRIVE. COUNCILMEMBER ENGSTROM
SECONDED THE MOTION. THE MOTION PASSED 4-0.
16. Check Re9ister
COUNC I LMEMBER GUN~~EL MOVED TO APPROVE THE CHECK REG I STER.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED
4-0.
17. Adjournment
Ther~ bein9 no
MOVED TO ADJOURN
SECONDED THE MOTION.
furth~r business, COUNCILMEMBER ENGSTROM
THE MEETING. COUNCILMEMBER SCHULDT
THE MOTION PASSED 4-0.
The Elk River City Council meetin9 adjourned at 11:25 p.m.
sd~
R~cordin9 Secretary
Sa n dr'a Tha c k er'a Y