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07-07-1983 CC MIN - SPECIAL SPECIALLY SCHEDULED MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY JULY 7, 1983 Members Present: Mayor Hinkle, Counci members Duitsman, Schuldt, and Gunkel. Members Absent: Councilmember Engstr m. 1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 2. Continuance of the Consideration 0 Bid Award for Gates Avenue 1m rovement Pro'ect Mayor Hinkle indicated that Counci member Gunkel would like to address the City Council first, regarding the Gates Avenue Improvement Project. Councilmember Gunkel indicated tha she had spoken with Mr. Aswegan, from the State of Minnesota, Department of ransportation, regarding the State policy for MSA funds. Councilmember Gunkel i dicated that Mr. Aswegan has reviewed the project and indicated to her that 11 the MSA funds could be obtained for the construction of the storm sewer pr ject from School Street to the river, even if the road through the PUD was no constructed. Councilmember Gunkel indicated that Mr. Aswegan indicated another option was also possible. Basically, the Storm Sewer Project could be staged with the Lower Gates portion being Stage 1. When the road was eventually built thru the PUD area, that portion of the Storm Sewer would be installed. Councilmember Gunkel further indicated that Barthel's option to the property in the PUD has exp'red. Councilmember Gunkel indicated that in her conversation with Mr. George Dietz, she got the distinct impression that Mr. Dietz did not want the assessments on th property. The City Administrator indicatedt the project, and further indicated office does give final approval to indicated that it would be possibl street, but that it was his recomm the bid to Barbarossa Construction of the project through the PUD. conditions would be (1) to hold th changes by July 25th; (2) to obtai petition and waiver of objection t City Administrator indicated that that would be placed on the last t Discussion was carried on regardin the Storm Sewer Project. The City Sewer Project could not be constru receive benefit. The City Adminis would share in the cost of the pip date for those costs. at Mr. Aswegan does not have the final say on that Mr. Dave Reed from the Brainerd MnlDOT a project. The City Administrator further to build half of the street versus the whole ndation to award all construction elements of with three conditions on the three elements e City Administrator indicated that the three public hearing dealing with the proposed easements in the PUD; and (3) to receive a the assessments from the land owner. The he contractor is agreeable to the conditions ree elements of the project. the proposed areas that would be served by Administrator indicated that if the Storm ted in the PUD, areas E and E-l would not rator further indicated that area E and E-l s downstream and would be assessed at a future Councilmember Schuldt questioned w 0 would pay for the amount reserved for future assessments if the PUD would not d velop. The City Administrator indicated that City Council Minutes July 7, 1983 Page Two if there were a short-fall, genera that short-fall. The City Adminis would possibly be structured to al to be low in the beginning years a Discussion was carried on regardin Administrator indicated that if th proximately $67,700 would be reser assessed at the time of the improv indicated that the $67,000 was for stream. The City Administrator fu through area E and E-l be construc imately $1,537 per acre. The City ments to the PUD could not be cons sidered. First, the temporary pon permanent with an added cost of ap would have to be made regarding th E and area E-l. Mr. Terry Maurer, of Consulting En of using the existing sanitary sew indicated that the City would need foot depth needed for the sewer li the depth would eliminate the row indicated that the School Street S and surveys would have to be done that the storm sewer line would ha line in School Street. The City Administrator indicated t to the State of Minnesota that the for,~he City to receive at1 the MS Councilmember Gunkel indicated tha is not on any of the agreements, a member Gunkel questioned the valid Barthel Developers. Mr. Gary Santwire indicated that 0 Conditional Use Permit to the deve a number ot conditions; one being Agreement, and another being that facility is built. Mr. Santwire i the City will not lose the MSA fun PUD, therefore why would the City mente Discussion was carried on between the water tower and the requiremen Duitsman indicated that the develo Discussion was also carried on reg to obtain funds to build a water t -, property tax would have to take care of rator further indicated that the pay back ow for bond principle and interest payments d higher in the later years. the cost to area E and area E-l. The City improvements went in at a later date, ap- ed for the area E and the area E-l to be ments to the PUD. The City Administrator their share of the storm sewer pipe down- ther indicated that should the storm sewer ed, the cost to be assessed would be approx- Administrator indicated that if the improve- ructed at this time, two things must be con- in the PUD would have to be made more roximately $30,500, and second, a decision cost per acre that would be assessed to area ineers Diversified, addressed the possibility r easements through thePUD. Mr. Maurer additional easements because of the 20 to 30 The additional easement necessary for f trees behind the houses. Mr. Maurer further stems would have to be revised and new plans t additional costs. Mr. Terry Maurer indicated e to be that deep because of the storm sewer at the City would have to give a committment road in the PUD would be constructed within 2 years Funds. Mr. Dietz expressed concern that his signature d that the Barthel option has expired. Council- ty of the Conditional Use Permit issued to the November 22, 1982, the City Council issued a oper, Ken Barthel, for the PUD contingent upon hat the developer enter into a Developer's here be adequate water supply before the dicated that according to Councilmember Gunkel, s if the street is not constructed through the onsider putting the street through the develop- he City Council and Mr. Gary Santwire regarding of the conditional use permit. Councilmember ers would agree to pay for the water tower. rding the intent of tax increment financing City Council Minutes July 7, 1983 Page Three Mr. Santwire questioned the indication of the Council that if the developers would sign waivers of objection to the assessment, the developers would get the density changes requested. Councilmember.D itsmanindicated that the request for a change in the plan is actually the right t come back to the Council with a higher density plan if necessary. The City Admini trator indicated that the change requested from 67 units to the 120 units is consistant with the zoning. Councilmember Duitsman indicated that there is no guarante that there would be 120 units, and that the developers are asking for the right to consider 120 units. Councilmember Gunkel questioned the be developed for a number of years. would lose $78,000 in MSA funds, an Department of Transportation would years for the road to be constructe funds as proposed. Discussion was new bids should the contract not be Mayor Hinkle indicated that the sto make sense to use the current sanit indicated that he felt it was a was pond in the PUD. Mayor Hinkle furt around, as predicted, the City woul again, and further indicated that a if the project to the PUD was not c need of a road through a field which might not The City Administrator indicated that the City further indicated that the State of Minnesota ant a formal commitment of approximately two through the PUD in order to obtain the MSA arried on regarding the timing of obtaining awarded at the present time. m sewer is in School Street, that it does not ry sewer easements through the PUD, and further e of money to construct a temporary holding er indicated that he felt if the economy turns not receive as favorable bids as they have proximately $78,000 in MSA funds would be lost nstructed. Mr. Gary Santwire indicated that th City does not have a Developer's Agreement with the developers of the PUD, and furt er questioned the City's requirement regarding water supply. COUNCILMEMBER DUITSMAN MOVED TO ADO T RESOLUTION 83-13 ORDERING THE CONSTRUCTION OF WATER MAIN IMPROVEMENTS RELATED TO E GATES AVENUE IMPROVEMENT PROJECT AND TO AWARD THE CONTRACT TO BARBAROSSA AND SONS CONTINGENT UPON THE CITY OF ELK RIVER HOLDING A PUBLIC HEARING REGARDING THE PHASIN PLAN OF THE PUD, OBTAINING EASEMENTS FROM THE LANDOWNER AND DEVELOPER, AND OBTAIN NG WAIVER'S OF OBJECTION TO THE ASSESSMENTS FROM THE LANDOWNER AND DEVELOPERS F R THE PORTIONS OF THE CONTRACT INVOLVING THE PUD. COUNCILMEMBER SCHULDT SECONDE THE MOTION. THE MOTION PASSED 3-1. COUNCIL- MEMBER GUNKEL OPPOSED. COUNCILMEMBER DUITSMAN MOVED T RESOLUTION 83-14 ORDERING THE CONSTRUCTION OF THE GATES AVENUE IMPROVEMENT PRO ECT, AND TO AWARD THE CONTRACT TO BARBAROSSA AND SONS IN THE AMOUNT OF $1,059,88 .40 CONTINGENT UPON THE CITY OF ELK RIVER HOLDING A PUBLIC HEARING REGARDING THE PHAS NG PLAN OF THE PUD, OBTAINING EASEMENTS FROM THE LANDOWNER AND DEVELOPER, AND OBTAIN NG WAIVER'S OF OBJECTION TO THE ASSESSMENTS FROM THE LANDOWNER AND DEVELOPERS FOR TH PORTIONS OF THE CONTRACT INVOLVING THE PUD. COUNCILMEMBER SCHULDT SECONDED THE OTION. Councilmember Gunkel indicated that PUD, but was in favor of the other the improvement of Gates Avenue, th but because of the way the motion w THE MOTION PASSED 3-1. not in favor of the improvements for the egments of the improvement project involving storm sewer and the water for the lower portion, s worded, would have to vote against the motion. R GUNKEL OPPOSED. Councilmember Gunkel requested that individual notices be mailed to all parties that were previously notified in th original public hearing of the PUD. The City Administrator indicated t he had met with the Lion's Club regarding City Council Minutes July 7, 1983 Page Four the purchasing of the land for a p rk to be constructed in the location of the Peat Bog. The City Administrator 'ndicated that the members of the Lion's Club are very enthusiastic about the pu chase of the land and in the development of a park for the City of Elk River. T e City Administrator indicated that the Lion's would sign a Gift Agreement with t e City of Elk River for the funds that would be obtained from the sale of their property. Mayor Hinkle indicated that he felt a counter offer of approximately $ 40,000 to Bud Houlten for the purchase of the land in the bog would be a reasona le offer. Councilmember Duitsman indicated t dollars involved in the purchase 0 which would include the assessment amount the Lion's would contribute The City Administrator indicated t property in assessments, and that cash committed to the development seven acres of land owned by the L further indicated that the LAWCON Further discussion was carried on cost of development of a park in It was the consensus of the City C a counter offer to Mr. Clem Darken for the 33 acres of property in th 3. Heavenly Hills Road Improvement General discussion was carried on Heavenly Hills Addition. It was t less than a 30 foot roadbed shoul mente Councilmember Gunkel indicated tha Hills Committee to find a solution mente Councilmember Gunkel indica of the homeowners is an impossibil Committee proposed that the City p the road improvement in the Heaven at he was interested in knowing the total the property for park land development that are now on the property as well as the at approximately $45,000 is assessed to the he Lion's Club have approximately $22,000 in f park land, and an estimated $78,000 for the on's that is for sale. The City Administrator rant accounts for approximately $37,000. egarding the cost of the property and the e area. uncil to authorize the City Administrator to make ala, Real Estate Representative of Bud Houlten area known as the Peat Bog. egarding the size of the road bed in the e consensus of the City Council that nothing be constructed in the Heavenly Hills Develop- she has met with various members of the Heavenly to the problem of the roads in their develop- ed that it is apparent that 100% participation ty. Counc1lmember Gunkel indicated that the ck up some of the cost of the construction of y Hills Addition. Discussion was carried on regardin the existing roads that need repair and the roads in the Heavenly Hills Additi n. The City Administrator indicated that the roads in the Heavenly Hills Additi n are private roads and not owned by the City, whereby other roads that need impr vement are City roads. The City Administrator further indicated that if the City Council would agree to something less than their standards for the Heavenly HOlls Addition, it would be setting a precedent of which other developments could xpect the same consideration. The City Admin- istrator indicated that the City C uncil should review the appraisal of the property in the Heavenly Hills Addition pri r to any decisions to be made regarding the improvement of the roads. Discussion was carried on regardin owner for the assessments of the i carried on regarding the length of that he felt 20 years was too long the dollars per month required of a home- proVement project, and further discussion was term of the assessment. Mayor Hinkle indicated for the assessment of a road improvement. City Council Minutes July 7, 1983 Page Five The City Administrator indicated t at if the Heavenly Hills homeowners could not afford assessments for a blacktop oad, the City could help them contract for improvement of their private roads obtain a private road agreement, and have the homeowners sign a Maintenance greement. Counci1member Gunkel indicated that she did not feel the homeowners would be in 100% support of a Maintenance Agreement. Further discussion was carried on regarding total cost of the improvement pro- ject and the allocation of the cost. Counci1member Schuldt indicated that he felt the homeowner should pay the total cost of the project, and it was their option as to how long they would like tohave those assessments spread in order to pay those costs. Further discussion was carried on regarding assessment procedures, the obtaining of easements, and the cost of the improvement this year versus next year. It was the consensus of the City Council to wait until the appraisal has been received and reviewed by the City Council before a decision is to be made. Mr. Terry Maurer of Consulting Engineers Diversified, indicated that the survey crew could spend approximately an hour in the development to get an idea of what easements would be required for the improvement project. THERE BEING NO FURTHER BUSINESS, COUNCILMEMBER GUNKEL MOVED THAT THE MEETING BE ADJOURNED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. Respectfully Submitted, (J'! /I' /)", ,/ - i ti/ \ ,.L. di" " , - ' 'I """ I' / \~_ W, _ 0~o ex, (Jt.. ~ {~a,' 1.J1..vYYLZ ,./ F / / Phyllis Boedigheimer Deputy City Clerk/Treasurer PB:st