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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