07-05-1983 CC MIN
REGULAR WEEKLY SCHEDULED MEETING OF THE
ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
JULY 5, 1983
Members Present: Mayor Hinkle, Counci1members Engstrom, Duitsman, Schuldt, and Gunkel
Members Absent: None
1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle.
2. Agenda
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE JULY 6, 1983, CITY COUNCIL AGENDA.
COUNCILMEMBER ENGSTROM SECONDED THE MOTION . THE MOTION PASSED 4-0.
3. Minutes
COUNCILMEMBER GUNKEL MOVED TO APPROVE THE MINUTES OF THE JUNE 20, 1983, CITY
COUNCIL MEETING. COUNCILMEMBER DUITSMAN SECONDED THE MOTION. THE MOTION PASSED
4-0.
4. Open Mike
No one appeared for this item.
5. Presentation from Guardian Angels on Senior Citizen Coordinator
The City Administrator indicated that representatives from the Guardian Angels
Foundation were present to submit a proposal for a Senior Citizen Center
Coordinator, and to answer any questions the City Council may have regarding
the foundation or the proposed position ofa Senior Citizen Coordinator.
Dee Kratzke, representative of the Guardian Angels Foundation, indicated that
the Elk River Senior Center is requesting that the City CounciL consider funding
of a part time Senior Center Coordinator for the Senior Center Facility located
in the Senior Highrise. Ms. Kratzke indicated that the Senior Center facility
is available for all senior residents of the community.
Mr. Dennis Carlson indicated that at the present time the Center has a student
intern from the college of St. Thomas working through the Community Education
Office. Mr. Carlson indicated that the present internship will be completed
at the end of July.
The City Administrator indicated that the City Council could consider the funding
of a part time Senior Citizen Coordinator in their 1984 budget cycle. Discussion
was carried on regarding the proposed duties of a Senior Center Coordinator and
how the position would be filled. Mr. Ivan Berg, a representative of the Senior
Citizens, indicated that a job description has been developed, and further in-
dicated that he felt the position should be published, and applications received
and reviewed regarding the position.
Discussion was also carried on regarding the present intern coordinator and the
activities that she has scheduled and implemented for the senior citizens within
the community. Discussion was also carried on regarding the position and what
City Council Minutes
July 5, 1983
Page Two
department would supervise the position. Mr. Dennis Carlson indicated that he
did not see a problem with the Connnunity Education Director as a supervisor,
but further indicated that he did see it as a growing problem for the Connnunity
Education Office.
Discussion was also carried on regarding the Community Education Offices tenta-
tively committed $1,000 towards a part-time coordinator for the Senior Center.
Mr. Carlson indicated that the $1,000 connnitted would be for the year July 1, 1983,
through June 30, 1984. The City Administrator indicated that the $1,000 in the
recreation budget for senior citizen's activities, and the $1,000 committed from
the Connnunity Education Office would be enough for the balance of the year for a
part-time coordinator.
Councilmember Schuldt suggested that the City Council consider the Senior Center
Coordinator Position during 1984 budget preparations. Councilmember Duitsman
indicated that he was in favor of getting the program started yet in 1983, and
would be in favor or connnitting $2,000 towards the program.
General discussion was carried on regarding the consideration and implementation
of the program in 1983 or the review and consideration of the program in the 1984
budget. Councilmember Gunkel indicated that she felt the Senior Center Program
would be an important part of the community.
Further discussion was carried on regarding the financing of the program in the
1984 budget. Councilmember Schuldt suggested that the City Council review the
funding of a part-time coordinator in a workshop session of the City Council.
It was the consensus of the City Council to consider the Senior Center Coordinator
position during a workshop session of the City Council.
6. Gates Avenue Improvement Project Bid Award
The City Administrator indicated that the issue before the City Council is to
consider the bid award for a major storm sewer project, the Gates Avenue Road
Improvement Project, and water improvements within the Gates Avenue road right-
of-way. The City Administrator discussed the actions and/or elements of the
issue for the City Council as submitted in his memo to the Mayor and City Council
dated July 1, 1983. The City Administrator indicated that the actions or elements
consist of:(l) the City Council awarding a contract to Barbarossa Construction
for a storm sewer improvement project, for a MSA road improvement referred to
as Gates Avenue, and for water improvements beneath the road portion. (2) That
the City Council assess the full cost of the storm drainage system as outlined
in the Engineer's Feasibility Study. (3) That the City Council assess 100% of
the lateral benefit cost of the water main improvement project to the PUD.
(4) That the City Council assess 100% of the cost of constructing a MSA road
improvement through the area of the PUD, and then defer said road assessments
until such time as the property developed. (5) That the City Council obtain
and use the maximum amount of MSA funding for the Gates Avenue Improvement Project.
The City Administrator indicated that in reviewing the Barthel Planned Unit
Developwent Project with Mr. George Dietz and Mr. Ken Barthel, two concerns were
expressed by the developers. The City Administrator indicated that in the original
City Council Minutes
July 5, 1983
Page Three
Planned Unit Development, ParcelD was identified as approximately 67 units of
townhousing to serve as a buffer between the single family residents on the
west side of the PUD and the proposed commercial center, and Parcel F was pro-
posed to contain a 45,000 square foot retail building with a single tenant.
The City Administrator further indicated that the developers have expressed their
concerns over the restrictions placed on Parcels D and F, and have proposed
amendments to the restrictions which would allow for 150 units of housing on
Parcel D, and that Parcel F, rather than a 45,000 square foot single tenant
structure, lJe identified as available for C-l, C-2, and C-3 uses with the City
retaining final site and building plans, review and approval.
The City Administrator indicated that the change would allow for more flexibility
and variety in the housing units for ParcelD,which would still be consistant
with the City's R-3 zo e. The City Administrator further indicated that the
City would require tha the westerly portion of Parcel D would range from single
family housing to town homes. The City Administrator further indicated that the
City would retain fina site approval of Parcel D as well as Parcel F.
The City Administrator
allow for more flexibi
that the suggested Ian
be consistant with the
Councilmember Engstrom
City Administrator ind
of Parcels D and F, an
requested.
Mayor Hinkle questione
City Administrator ind
assessments would be p
Councilmember Engstrom
The City Administrator
out-of-pocket expense
improvement, and then
cussion was carried on
ments. The City Admin
during the time of def
Councilmember Gunkel i
and Parcel F were not
great deal of time was
and phasing plans for
go back through that s
did not like the way t
made. Councilmember G
a Developer's Agreemen
Developer's Agreement.
the flexibility of Par
indicated that the Cou
Mayor Hinkle indicated
regarding the building
Unit Development, and
it was time the City a
the City of Elk River,
Elk River would get a
further indicated that on Parcel F the amendment would
ity in the development of Parcel F, and further indicated
uage regarding parcel F would require that the building
City's Downtown Redevelopment Plan.
questioned who would be developing Parcels D and F. The
cated that there were no firm agreements for the development
that is why the flexibility in Parcels D and F were
the time limit on the deferrment of the assessment. The
cated that it would be a self determining factor as the
id at the time of the beginning of the development.
expressed his concern of the deferrment of the assessments.
indicated that with the MSA funding, it would not be an
nd that the MSA funding could be used to finance the
ould be replaced when the assessments were paid. Dis-
regarding the interest rate for the deferrment of the assess-
strator indicated that an 8% interest rate would be charged
rrment.
dicated that she ~elt the changes proposed for Parcel d
andled properly. Councilmember Gunkel indicated that a
spent by the City Council reviewing preliminary plats
he PUD, and further indicated that any amendments should
me process. Councilmember Gunkel indicated that she
e changes in the preliminary plat and phasing plan were
nkel expressed her concern of the fact that there was not
, and that the developers have had 8 months to sign a
The City Administrator indicated that he did not believe
el F would have a bad impact on the downtown, and further
cil would have final approval.
.,.-"
that h~ felt Councilmember Gunkel had legitimate concerns
of a road and a storm drainage area through the Planned
he use of MSA funds. Mayor Hinkle further indicated that
dress the storm sewer and storm drainage problems within
and further indicated that the citizens of the City of
uch larger assessment if the MSA road was not constructed
City Council Minutes
July ~, 1983
Page Four
at the same time.
Discussion was carried on regarding the MSA Road through the PUD, and Dodge Avenue
in the l3arrington Place Planned Unit Development. Mr. Terry Maurer of Consulting
Engineers Diversified, indicated that at the time of the construction of the
improvements of the Barrington Place PUD, Dodge Avenue was not an MSA Street and
was later designated as an MSA road. Discussion was also carried on regarding
the water situation and the requirements of the developers to provide water for
the PUD. Councilmember Schuldt questioned the fact that if the road was not
built through the PUD, would it effect the funding for the Storm Sewer Project.
The City Administrator indicated that the City would lose MSA contributions for
the Storm.Sewer Project should the road not be constructed through the PUD.
Councilmember Schuldt indicated that he felt the citizens should not be penalized
by additional cost because of delays in the construction award.
Mr. Bruce Malkerson, attorney representing Mr. Gary Santwire, requested permission
to address the Council regarding the Gates Avenue Project and ultimately the
PUD. Mr. Malkerson requested that the City Council treat every developer fairly
and not give .an advantage to any one developer. Mr. iMalkerson indicated that
there were some areas of the previous discussions in 'which he questioned the
fairness of the City Administrator's recommendation. Mr. Malkerson indicated
that he did not feel the 8% interest rate to be charged for the deferred assess-
ments was a fair rate. Mr. Malkerson indicated that!if the City were to sell bonds
to finance the project, they would have to pay 9 to 9~ percent, and further in-
dicatedthathe felt the interest rate charged should reflect the rate of return
on an investment by the City. Mr. Dave Sellergren, Attorney for the City of Elk
River, indicated that the City was limited by State Statute to the 8% rate.
Mr. Malkerson further indicated that it was his recommendation that the City
Council insist that everyone involved in the parcel Of property sign the waiver
of objection to assessments for the project improvem~nts. Mr. Malkerson also
expressed his objection to the changes proposed in the PUD without a public
hearing. Mr. Malkerson further indicated that he reQo~endedthe City Council
hold a public hearing regarding any changes, or there could possibly be litigation.
Mr. Malkerson indicated that his client Mr. Gary Santwire, developed his PUD
within the l'lanned Unit Development Plat as accepted'l. and that he wanted other
developers t.o do the same. ,
The City Administrator indicated that the Barthel PU:q process is much more
sophisticated and more detailed than the Barrington ~lace PUD. Mr. Gary Santwire
indicated that in the developing of the Barrington Place PUD, he never asked for
a higher density beyond the accepted plan, and furthdr expressed his concern
for the request for higher density in the Barthel PUD. Mr. Santwire further
indicated that the City of Elk River would not lose $247,000 in MSA funds, but
only that portion that would apply to the PUD should ,the improvements not be
constructed in the PUD. Mr. Santwire furtherquestidnedthepossibility of the
City using the existing easement in the PUD for storm sewer lines.
Mr. Terry Maurer of Consulting Engineers Diversified ,indicated that to use the
existing easement in the PUD would cause some problerris with hooking up to the
storm sewer in the School Street.
City Council Minutes
July 5,1983
Page Five
Mr. Malkerson also requested that the City Council clearly set forth to the
developers of the Barthel PUD the requirements of a water storage tower before
development.
Mr. Jim Nielson, attorney representing Mr. George Di~tz, requested permission
to address the City Council in behalf of Mr. George Dietz. Mr. Nielson indicated
that Mr. George Dietz believed he had a developer to ,develop Parcel A through G
I
in the PUD, but has recently found that his developen is only interested in
I
developing parcels A, B, and C. Mr. Nielson indicat1d that Mr. Dietz is a land
owner and not a developer, and does not want to be a:developer, therefore, he
needs to sell the land. Mr. Nielson indicated that in order for Mr. Dietz to
I
sell the land, he needs more leeway in the Planned Urj.it Development Plan.. Mr.
Jim Nielson indicated that the City Council must deCide what is best for the City.
Mr. Nielson further indicated that the landowner canqot pay for the cost of the
improvements to the property, and that the property I1lust be able to be sold in
order to be developed. Mr. Nielson also questioned ~he requirement of a water
tower before development could begin in the PUD. Mr~ Nielson further indicated
that Mr. George Dietz is willing to sign if he knows Iwhat the City will require.
The City Administrator indicated that the question o~ a water tower has been
discussed with the Barthel Developers. The City Adm~nistrator further indicated
that the possibility of tax increment financing has been discussed with the City
Council for the financing of a water storage tower. '
i
Mr. Bruce Malkerson indicated that there is always a !possibility of a change in
the statute, therefore, the City should not count on Ithepossibility bf tax
increment financing to finance the water storage tower.
Councilmember Gunkel indicated that she is very concerned about the communication
between Mr. George Dietz and the developer.
The
and
the
City Council took a recess allowing the City
the City Attorney to research minutes on the
Planned Unit Development Plat.
Administrator, the City Engineer,
pre~ious public hearing regarding
I
I
The City Administrator indicated. that in checking past minutes and documents,
the City's Attorney Mr. Dave Sellergren, advised that the City Council should
hold a public hearing regarding the proposed changes in the Ba::rrthe-l Planned Unit
Development Plat. The City Administrator indicated that the City Council could
make the award. contingent upon a public hearing and the obtaining of easements
through the PUD. The City Administrator further indicated that if the City
Council should build the seven segments without the PUD improvements, he had a
concern regarding the functioning of the storm sewer from School Street and the
assessment methods for the project. The City Administrator further indicated
that if the City does not build a storm sewer system, something would have to be
done permanently for the ponding in the Planned Unit Development area.
Discussion was carried on regarding the timing of public notice for the public
hearing. Councilmember Schuldt questioned the length of time the City could
hold the contractor with a contingency on the bid. Mr. Terry Maurer, of Con-
sulting Engineers Diversified, indicated that there were no provisions in the
contract for contingencies and that the contractor could ask for more money.
Discussion was carried on regarding the use of the existing sanitary sewer
easement through the PUD and what alterations were necessary for the use of
that easement. The City Administrator indicated that not enough facts were
available at this time regarding the contingency factors and the fall back
City Council Minutes
July 5, 1983
Page Six
position should the improvements not be constructed through the PUD.
Councilmember Gunkel requested that the City Engineer investigate the possibility
of using the existing easement through the PUD. Councilmember Duitsman indicated
that he is not aware of the impact the changes in Parcels D and F could do, but
that they seem to make more sense than to try to use the existing easement through
the PUD.
Discussion was carried on regarding the awarding of the bids and the possibility
of awarding the seven portions of the bid. Mr. Santwire expressed his concern
of the water storage tower and the requirements of the developer of the PUD.
The City Administrator indicated that sufficient utilities are a requirement of
the conditional use of the PUD.
Further discussion was carried on regarding the r~equirement of '/R water storage tower .
the possibility of tax increment financing and the possibility of statute changes
regarding tax increment financing.
COUNCILMEMBER SCHULDT MOVED TO CONTINUE ITEM 6, THE BID AWARD FOR THE GATES AVENUE
IMPROVEMENT PROJECT UNTIL THURSDAY JULY 7, 1983, AT 7:30 P.M. AT THE ELK RIVER
PUBLIC LIBRARY. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED
4-0.
The City Administrator indicated that the proposed Lion's Park in what is known
as the peat bog is also an issue of the storm sewer project. The City Administrator
requested that the City Council consider the acquisition of the park land as it
is a part of the Comprehensive Storm Sewer Project, and therefore, a part of the
Gates Avenue Improvement Project. The City Administrator indicated that the middle
25 acres has been appraised by Ty Bischoff at $78,000. The City Administrator
further indicated that the City has been awarded a LAWCON grant of approximately
$37,000. The City Administrator further indicated that Mr. Bud EIhillton is interested
in selling an approximate total of 33 acres to the City for park land. The City
Administrator further indicated that Mr. H~llxtQUis asking $330,000 for that
33 acres.
Discussion was carried on regarding the value of the land and the value of the
soil on the land.
Discussion was carried on between the City Council and Mr. Clem Darkenwald, Real
Estate Agent for Mr. BudHGWl~onregarding the value of the black dirt on the
property. The City Administrator indicated that the City Council could make a
counter offer for the purchase of the property.
It was the consensus of the City Council that they would disCQSS a counter offer
at the July 7th special City Council meeting.
7. Resolution Regarding Road Standard Policies
The City Administrator indicated that Resolution 83-11 was a resolution estab-
lishing road standards and road maintenance policies for the City of Elk River.
Discussion was carried on regarding the Resolution and the intent of the City
Council in adopting the Resolution.
Discussion was carried on regarding the private road section of the Resolution.
Councilmember Gunkel indicated that in Section 2d the Resolution indicates that
City Council Minutes
July S, 1983
Page Seven
that the City Council will approve private roads. Councilmember Gunkel further
indicated that it was her understanding that the City would not accept private
roads. The City Administrator indicated that in certain situations, i.e.,
Administrative Subdivisions, it may be necessary to have a private road, and that
the Resolution would allow for private roads in situations, with a private road
agreement.
COUNCILMEMBER DUITSMAN MOVED TO APPROVE RESOLUTION 83-lw,A RESOLUTION ESTABLISH-
ING ROAD STANDARDS AND ROAD MAINTENANCE POLICIES. COUNCILMEMBER ENGSTROM SECONDED
THE MOTION. THE MOTION PASSED 3-2. COUNCILMEMBERS SCHULDT AND GUNKEL OPPOSED.
8. Heavenly Hills Improvement Proposal
COUNCILMEMBER GUNKEL MOVED TO POSTPONE ITEM 8, THE HEAVENLY HILLS IMPROVEMENT
PROPOSALS TO THE THURSDAY SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL. COUNCIL-
MEMBER DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0.
9. Vacation of Utility Easement for Warren Williams/Public Hearing
Mayor Hinkle indicated that Mr. Warren Williams has requested that the City
vacate a utility easement between lots 23 and 24 in block 1 of Greenhead Acres
Third Addition. Mayor Hinkle indicated that the City Staff has recommended that
the City Council grant the vacation to allow Mr. Williams to build a home in the
middle of the two lots.
Mayor Hinkle opened the public hearing. No one appeared in opposition of the
utility easement vacation.
COUNCILMEMBER DUITSMAN MOVED TO GRANT A UTILITY EASEMENT VACATION TO MR. WARREN
WILLIAMS ON HIS PROPERTY LOCATED IN BLOCK 1 OF GREENHEAD ACRES THIRD ADDITION.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0.
10. School Street Improvement Project Completion
The City Administrator indicated that the City's Engineers have been negotiating
with Bauerly Brothers regarding completion of the School Street Improvement
Project. The City Administrator further indicated that the City's Engineer
recommends that the City Council accept the offer of Bauerly Brothers asking for
a $9,000 participation by the City for a complete overlay of the project. The
City Administrator indicated that the proposal does appear to be fair, inasmuch
as the City does gain additional benefit. The City Administrator further in-
dicated that the $9,000 can be paid from State Aid Funds, therefore, it is recom-
mended that the City Council authorize the completion of the School Street Impro~e~
ment Project.
COUNCILMEMBER DUITSMAN MOVED TO APPROVE THE COMPLETION OF THE SCHOOL STREET
IMPROVEMENT PROJECT FGR AN ADDITIONAL $ 9,000 PARTICIPATION BY THE CITY. COUNCIL-
MEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0.
11. Sidewalk Restoration
Councilmember Schuldt indicated that there are some bad sections of sidewalk along
Main Street and Proctor and 4th Street, and therefore, he had requested that the
City Staff look into restorations of those sections of sidewalk with the use of
~
.
.
.
City Council Minutes
July ~, 1983
Page Eight
MSA Funding. Councilmember Schuldt further indicated that the City's Engineering
Firm has informed the City Council that the use of MSA Funding for sidewalk
restoration is not available. Councilmember Schuldt indicated that if the City
is to restore some sections of sidewalk, funding must be provided by the general
fund or some other means. Councilmember Schuldt further indicated that he felt
the City of Elk River should repair some of the worst sections of sidewalk in the
City of Elk River.
The City Administrator indicated that the sidewalk restoration could be constructed
with the use of the discretionary State Aid Funds. Councilmember Duitsman indicated
that he felt the City should adopt a policy of restoration of sidewalks.
COUNCILMEMBER SCHULDT MOVED TO AUTHORIZE THE CITY ADMINISTRATOR TO PRESENT A
SPECIFIC PROPOSAL OF SIDEWALKS THAT NEED TO BE IMPROVED AND THE COST FOR THE
RESTORATION. GOUNCILMEMBER DUITSMAN SECONDED THE MOTION. THE MOTION PASSED
4-0.
12. Employee Health Insurance
The City Administrator in his memo dated July 1, 1983, to the Mayor and City
Council indicated that the City's contract with Physician's Health Plan in
Minnesota expired July 1, 1983, and therefore, it was necessary that the City
Staff find other means of health insurance coverage. The City Administrator
reviewed the City's options for employee health insurance coverage and recom-
mended that the City Council approve a contract between the City of Elk River
and the HMO Minnesota Insurance Plan.
COUNCILMEMBER DUITSMAN MOVED TO APPROVE THE HMO MINNESOTA PLAN FOR HEALTH INSURANCE
FOR THE CITY OF ELK RIVER'S EMPLOYEES FOR THE YEAR OF 1983-1984. COUNCILMEMBER
GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0.
13. Mechanical Amusement Device License/Dick's Main Tap
The City Administrator indicated that Dick's Main Tap has requested a renewal
of his amusement device license for 1983-84.
GOUNCILMEMBER ENGSTROM MOVED TO APPROVE THE MECHANICAL AMUSEMENT DEVICE LICENSE
FOR DICK'S MAIN TAP. COUNCILMEMBERGUNKEL SECONDED THE MOTION. THE MOTION PASSED
4-0.
14. Liquor License Renewal
The City Administrator indicated that both the non-intoxicating and intoxicating
liquor licenses are up for renewal July 1, 1983. The City Administrator further
indicated that all of the applicants on the attached memo dated July 1, 1983,
to the Mayor and City Council are currently holding licenses and a~~ renewals
for the 1983-84 year.
COUNCILMEMBER DUITSMAN MOVED TO APPROVE THE NON-INTOXICATING AND INTOXICATING
LIQUOR LICENSES FOR 1983-84 FOR THE ESTABLISHMENTS AS LISTED ON THE MEMORANDUM
TO THE MAYOR AND CITY COUNCIL DATED JULY 1, 1983. COUNCILMEMBER SCHULDT SECONDED
THE MOTION. THE MOTION PASSED 4-0.
.'t
City Council Minutes
July S, 1983
Page Nine
IS. Administrator's Update
A. Cable Television
The City Administrator indicated that the Cities of Rockford, Dassel, Maple
Lake and Annandale have signed agreements with the Cable Television Com-
mission. The City Administrator indicated that the Cable Television
Commission is making progress in the Cable Television Franchise.
B. Softball Players Conduct
The City Administrator indicated that he had sent a letter to the Softball
Association regarding their conduct at the softball fields.
C. Menkfeldt Zoning Violation
The City Administrator indicated that the judge indicated that he would
agree to a January 1, 1984, clean up for the Menkfeldt property. The
City Administrator further indicated that that was not in agreement with
the City Staff, and that the City Staff has authorized the City's Attorneys
to proceed with the lawsuit regarding the zoning violation.
It was the consensus of the City Council to proceed as the City's Attorney
has reconnnended.
16. Check Register
COUNCILMEMBER DUITSMAN MOVED TO APPROVE THE JULY S, 1983, CHECK REGISTER. COUNCIL-
MEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0.
17. Tentative Agenda
The Gates Avenue Improvement Project and the Heavenly Hills Improvement Proposals
are scheduled for the special 6ity Council meeting scheduled July 7, 1983.
THERE BEING NO FURTHER BUSINESS, COUNCILMEMBER SCHULDT MOVED THAT THE MEETING BE
ADJOURNED. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0.
Respectfully Submitted,
G~1L tJo<<k~
Phyllis BOedigheim~
Deputy City Clerk/Treasurer
PB:st