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10-03-1983 CC MIN REGULAR WEEKLY !SCHEDULED MEETING OF THE ELK RI~ER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY OCTOBER 3, 1983 Members Present: Mayor Hinkle, Counc~lmembers Engstrom, Duitsman, Schuldt and Gunkel Members Absent: None 1. The meeting was called to order a1 7:30 p.m. by Mayor Hinkle. Agenda 2. Item 9~ - City Insurance, was add~d to the October 3, 1983 City Council meeting. ! COUNCILMEMBER SCHULDT MOVED TO APPROVE THE OCTOBER 3, 1983 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Minutes COUNCILMEMBER GUNKEL MOVED TO APplioVE THE MINUTES OF THE SEPTEMBER 19, 1983 CITY COUNCIL MEETING. COUNCILMEMBE mjITsMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike No one appeared for this item. 5. Definition of Lot Area - Conti ued Public Hearin The City Administrator indicated that at the last City Council meeting, the question of lot area was discussed by the City Councilmembers and referred back to the Plan- ning Commission for additional reView because the Planning Commission proposed one solution to the issue and the staff proposed a different solution. The City Admin- istrator indicated that prior to the Planning Commission's reconsideration of the lot area definition, he had discu~sed the concerns regarding the definition with Mr. John Oliver, Mr. Brian Benson land Darrell Mack, the City's Sewer Superintendent. The City Administrator indicated ~hat based upon those discussions, it was agreed that the issue of ground water pollution could be eliminated from the lot area definition. The City Administrator indicated that the issue of ground water pollu- tion can be addressed and monitored through the City's building permits and inspec~ tions for site preparations for sJptic systems. The City Administrator indicated that the question of densities and the desired growth and development patterns of the City should be the consideration in the determination of the lot area defini- tion. The City Administrator indicated that in the discussion and the Planning Commission's reconsideration, it was agreed that certain exclusions from the City's definition of lot area were appropriate. The City Administrator indicated that it was determined that utilizing a state system of classifying wetlands would be appropriate. The City Administrator further indicated that the Planning Commission agreed to use the U.S. Corps of Engineers' publication describing certain wetlands. The City Administrator indicated that it was agreed that lakes, rivers and streams would be excluded from the lot area definition as well as the definition of water classification types 3, 4 and 5 in the U.S. Corps of Engineers' publication. The City Administrator indicated that it was also agreed that a certain minimum size of the wetlands should be established before the occasional pothole or wet area could be eliminated from consideration in the definition, and that the formula developed should also most appropriately apply in the large lot areas of the City City Council Minutes October 3, 1983 Page TWQ found in the A-I and R-la zones. The City Administrator indicated that the proposed minimum size would be 1 acre. The City Administrator further indicated that the rec~ ommended language for the lot area definition as presented in his September 29, 1983 memo to the Mayor and City Council should be changed to replace the word "water" with "rivers, lakes and streams" and rather than "U.S. Fish and Wildlife Service:, it should be "the U.S. Army Corps of Engineers." The City Administrator indicated that in the change proposed, it addressed the staff's needs and concerns regarding densi- ties and it still provided the developers in the City enou h flexibility to utilize parcels of property within the City of Elk River. The Cit Administrator indicated that the Planning Commission unanimously recommended the 1 nguage change to be adopted by the City Council. Mr. John Pearce, Planning Commission member, questioned th exclusion of rivers, lakes and streams, as he felt lot width and setback requirements would address those con- cerns. The City Administrator indicated that the lot area definition was to address the concerns of densities and the desired growth and devel pment within the City of Elk River. Further discussion was carried on regarding th language of the lot area definition as proposed by the City staff and Planning Comm'ssion. Councilmember Duitsman indicated that he felt the R-la sho ld be further defined to include "unsewered." Councilmember Gunkel indicated that she felt the U.S. Corp tion of types 3, 4 and 5 should be included in the languag consensus of the City Council toincludet.he date of the p Corps of Engineers classifications of wetlands types, 3, 4 of Engineers' defini- definition. It was the blication of the U.S. Army and 5. 6. Deerfield 1st Addition - Final Plat and the COUNCILMEMBER DUITSMAN MOVED TO ADOPT ORDINANCE 83-13, AS AMENDING THE LOT AREA DEFINITION OF THE CITY'S ZONING ORDI ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. NDED, AN ORDINANCE COUNCILMEMBER Mayor Hinkle called to order the joint meeting of the Plan City Council to consider the Deerfield 1st Addition final The City Administrator indicated that at the time of the p eliminary plat review, questions were raised regarding the definition of lot area and further indicated that the final plat has been presented based upon the lot defin'tion as recommended by the Planning Commission. The City Administrator indicated tha the final plat, due to the change in lot definition, has one lot less than the or'ginal preliminary plat. The City Administrator indicated that the change is fairly sim Ie and does not present a radical change from the original preliminary plat. The City Administrator indicated that the developer has informed the City staff that the necessary easements on the south side of the plat for road purposes have been obtained and that the developer's agreement will be signed. General discussion was carried on between the Planning Commission and the City Council regarding the naming of Dodge Street N.W. and 202nd Ave. N.W. in the final plat. It was the consensus of the City Council that the City's Building and Zoning Administra- tor should review the streets in the plat and determine if the name can be changed. Further discussion was carried on regarding the topography of the plat and the soils in the northeast corner of the plat. COMMISSIONER TRALLE MOVED TO RECOMMEND THAT THE CITY COUNCIL GRANT FINAL PLAT APPROVAL FOR THE DEERFIELD 1ST ADDITION SUBDIVISION. COMMISSIONER WILLE SECONDED THE MOTION. City Council Minutes October 3, 1983 Page Three THE MOTION PASSED 7-0. COUNCILMEMBER DUITSMAN MOVED TO GRANT FINAL PLAT APPROVAL TO THE DEERFIELD 1ST ADDI- TION SUBDIVISION CONTINGENT UPON THE RECEIPT OF THE NECESSARY EASEMENTS FOR ROAD PURPOSES AND THAT THE DEVELOPER ENTER INTO A DEVELOPER'S AGREEMENT FOR ALL THE APPROPRIATE IMPROVEMENTS~ COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THEMOTION PASSED 4-0. 7. Zoning Ordinance Amendment Permitting Commercial Uses as Conditional Uses in 1-1 Zones -Public Hearing The City Administrator indicated that the City Council had requested the Planning Commission to review and consider the question of whether or not a commercial use should be permitted as a conditional use in an I-I zone. The City Administrator in- dicated that at the Planning Commission's September 27th meeting, the Planning Com- mission decided at a 4-1 vote not to consider commercial uses as conditional uses in an I-I zone. The City Administrator indicated that during the Planning Commission's discussion, the Commissioners indicated very clearly that they were opposed to changing the I-I zone to permit commercial uses as conditional use, and that the change established a dangerous precedent of changing zones to suit particular situ- ations. The City Administrator indicated that the Planning Commissioners indicated that such a change would weaken the effectiveness of the City's zoning ordinance. The City Administrator further indicated that Mr. Zack Johnson, the City Planner, in his memorandum to the Planning Commission indicated that adding commercial uses to industrial zones would be an inappropriate use for an I-I zone and that it would only weaken the City's zoning ordinance. The City Administrator indicated that Mr. Johnson indicated that it is extremely difficult to isolate one particular use that would propose to offer dancing, video games, possibly food and beverages, and other types of entertainment to just a dry bar. The City Administrator indicated that the proposed use could fall into either a recreational, entertainment, restaurant, eating and drinking facility or a combination of any and by allowing that use in industrial zones, this type of use could also be granted as a conditional use in the City's In- dustrial Park or any other industrial area within the City of Elk River. The City Administrator indicated that it is the staff's recommendation to deny an amendment to the City's zoning ordinance to permit commercial uses to be created as conditional uses in an I-I zone. Mr. Jim Tralle, Planning Commission member, indicated that if the City Council be- lieves that this type of use belongs in the Cowles' property, the City Council should consider a new zone classification for the whole area. Councilmember Duitsman indicated that he did understand the concern of allowing commercial uses in an in- dustrial zone, but did have a problem with denying a particular business in a par- ticular area. Councilmember Gunkel indicated that she felt the City Council should consider the reclassification of a particular zone that would suit along the Highway tHO properties. Planning Commissioner Tracy indicated that he had concern with changing the City's zoning ordinance to fit one person only and that his major concern was the physical appearance of Highway #10 and #169 through the City of Elk River. Mayor Hinkle opened the public hearing. Further discussion was carried on regarding the classification of a new zone along Highway #10. Planning Commissioner Tracy requested that the Planning Commission meet in joint session with the City Council to discuss and consider a reclassification zone for the property. City Council Minutes October 3, 1983 Page Four Councilmember Schuldt indicated that the consideration of a reclassification of highway property would not affect the specific property in question, as that specific property does not have highway frontage. Further discussion was carried on regarding the consideration of a reclassification zone for Highway #10 and Highway #169. COUNCILMEMBER SCHULDT MOVED TO DENY AN AMENDMENT TO THE CITY'S ZONING ORDINANCE TO PERMIT COMMERCIAL USES TO BE CREATED AS CONDITIONAL USES IN AN I-I ZONE. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. A joint work session between the Planning Commission and the City Council was set for Tuesday, October 18th, 1983 at 7:30 p.m. to discuss the possibility of a reclassification zone for Highway Commercial Industrial property. 8. Authorization of Preliminary Tax Increment Feasibility Study Mayor Hinkle called to order a joint meeting of the City Council and the Housing and Redevelopment Authority. Mayor Hinkle indicated that over the past several months, the City Council, the Housing and Redevelopment Authority and the Downtown Development Corporation have been involved in discussions with the Kraus Anderson Development Corporation regard- ing redevelopment of the downtown area. Mayor Hinkle indicated that the Kraus Development Corporation has proposed a development plan for downtown which includes two phases with new buildings constructed in each phase. Mayor Hinkle indicated that Phase 1 is a 30,000 square foot building with office space upstairs and retail space in the lower level and a new parking area, and that Phase 2 at some point in the future would include a 16,000 square foot retail facility, plus additional parking. The City Administrator indicated that the Financial Advisory Committee of the Housing and Redevelopment Authority has reviewed the concept plans and, in their :opinion, Phase 1 of the proposed redevelopment project appears to be a feasible project. The City Administrator indicated that the Financial Advisory Committee recommends that the City Council and the HRA consider payment of one-half of the necessary fees for completing the preliminary tax increment feasibility study, and further indicated that the Downtown Redevelopment Corporation has agreed to commit the other half of the funds for the preliminary tax increment feasi- bility study. Discussion was carried on between the City Council and the HRA regarding the feasibility of Phase 1 and Phase 2. Mr. Don Schumacher, Chairman of the HRA, indicated that Phase 2 was not a viable project at this time, and further in- dicated that Kraus Anderson Development Corporation also believes that Phase 2 is not a viable project at this time. Mr. Rob VanValkenburg, representative of the Downtown Redevelopment Corporation indicated that they did not believe there was a demand for Phase 2 at this time. Mr. Don Schumacher indicated that in the preliminary tax increment feasibility study, Mr. Zack Johnson, assisted by the City's attorney, Dave Sellergren, and the City's financial and bond consulting firm would determine how much of the project would be feasible; that is, should the Elk River Municipal Utilities City Council Minutes October 3, 1983 Page Five building be torn down, should King Street be closed, or should they remain and the Phase 1 project only consist of the construction of the 30,000 square foot building. Further discussion was carried on regarding the type of redevelopment that would be included in the Phase 1 portion of the project. Mr. Don Schumacher indicated that the cost of demolition and acquisition of property would be con- sidered in the tax increment feasibility study. HRA MEMBER DUITSMAN MOVED TO RECOMMEND THAT THE CITY COUNCIL AUTHORIZE COMPLETION OF THE TAX INCREMENT FEASIBILITY STUDY AND TO PAY ONE HALF OF THE FEE. HRA MEMBER TOTH SECONDED TIlE MOTION. THE MOTION PASSED 4-0. COUNCILMEMBER SCHULDT MOVED TO AUTHORIZE THE COMPLETION OF A TAX INCREMENT FEASI- BILITY STUDY FOR THE DOWNTOWN PROJECT AND TO COMMIT PAYMENT OF ONE-HALF (~) OF THE FEE FROM THE CITY'S HRA BUDGET. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Cable Communications System Request for Proposals - Public Hearing The City Administrator indicated that the public hearing for the request for pro- posals for a cable television system is a part of the cable television process. The City Administrator indicated that the Cable Commission cannot award a franchise for cable television; therefore, the City Council is responsible for the award and must hold a public hearing. The City Administrator indicated that after receiving bids for the cable television system, the Commission will engage its attorney, Tom Creighton, and a consultant to review and analyze each of the bids prior to making a recommendation for award. The City Administrator indicated that ideally, one vendor would be awarded the total contract for all of the cities involved in the cable television commission, but the request for proposals is structured in such a way that the respective cities will receive bids from a variety of cable companies and each city must award their own contract. The City Administrator indicated that the request for proposals for a cable television system is not the ordinary bid process; the City would be acquiring a service rather than a product. The City Administrator indicated that the school systems have presented an attachment "c" that will be a part of the request for proposals that addresses the schools con- cerns. Mr. George Zabee, representing the school systems involved, indicated that they are concerned with public education and want their concerns to be addressed in the final negotiations with a cable television company. Mr. Zabee indicated that their primary concern is that the system will provide sufficient channels for the schools to use. The City Administrator indicated that the schools concerns; are included in the re- quest for proposal as an attachment in order to make the RiPiP an:c:easieLdocutnent for a cable television company to review and submit bids. Councilmember Duitsman indicated that he felt the schools needs were very important and that he would consider the addressing of their needs by the cable television companies in their bids as a very high priority. Mr. Jim Goodin questioned some of the language in the RFP. Discussion was carried on regarding the cable television process including two-way active and interactive City Council Minutes October 3, 1983 Page Six systems. The City Administrator i and the Cable Television Commissio feel that various cable companies tor indicated the Cable Television write a request for proposal that Further discussion was carried on available on a cable television sy costs of various systems and the v tor indicated that government enti dicated that the Cable Television Commission 's attorney are comfortable with the RFP and ill be able to submit bids. The City Administra- Commission feels that it is very important to ill allow cable companies to submit bids. egarding the type of programming that would be tem. Discussion was also carried on regarding rying distances for hookup. The City Administra- ies would receive free hookup. Discussion was also carried on reg rding cable vs. tower. Mr. Joe Yarnott explained that that much frequency can not b jammed on an antenna as compared to the amount a cable can carry. Mayor Hinkle closed the public hea COUNCILMEMBER GUNKEL MOVED TO APPR VETHE RESOLUTION 83-18, A RESOLUTION ADOPTING A REQUEST FOR A CABLE COMMUNICATIO SYSTEM FOR THE CITY OF ELK RIVER. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE OTION PASSED 4-0. 9~. City Insurance The City Administrator indicated that the City has received two quotes for insurance; one from the Home Insurance Compan and one from the American Insurance Management Company, which is affiliated with he League of Minnesota Cities. The City Ad- ministrator indicated that the quotes that have been received are less than the 1982-83 insurance costs. The City dministrator indicated that Mr. Dan Greene, the City's insurance agent, indica ed that the City of Elk River is rated as one of the top ten cities for insurance d e to the low claim rate and the cooperation the City staff provides. The City Adm. istrator indicated that even though the Home Insurance bid was slightly higher t an the AIM, it is recommended that the City award the City's insurance to the Home Insurance Company because of the high divi- dend program the Home Insurance Co pany offers. COUNCILMEMBER DUITSMAN MOVED TO AW RD THE CITY'S INSURANCE CONTRACT TO THE HOME IN- SURANCE COMPANY FOR THE 1983-84 Y R. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 10. Administrator's Update A. Gospodar Park Acquisition The City Administrator indicated that he had met with Gospodar's attorney, the City's attorney, Dave Sellergre , and Frank Madsen, representative of the County, regarding the Gospodarplat and the acquisition of property for both the City and the County. The City Administrator indicated that it appears through their discussion that the City will get exactly what they want, that is, the eleven acres of property for the development of four ballfields. The City Administrator indicated that the City will tr de the 7~ acres the City now owns with the County for 7~ acres that the County has. The City Administrator indicated that with the City Council Minutes October 3, 1983 Page Seven purchase of the land and the sale of the land to the County and the park dedi- cation from the plat, the bottom net cost to the City would be $7,000. The City Administrator indicated that the Gospodar's have placed a valuable price on the lake property and further indicated that they feel they will be able to develop three lots on the lake property. The City Administrator indicated therefore, the preliminary plat will be redrafted to contain three lake lots. The City Administrator further indicated that the Fairboard will pay to the City the same price for the 7~ acres as they paid to the Gospodars for the fifteen acres that the County will be purchasing. Councilmember Duitsman indicated that he could not approve the deal until he knew the exact dollars involved for the development of the new ballfield property. The City Administrator indicated that the development costs were included in the budget which would be reviewed at budget meetings and that the issue at hand is simply the acquisition of the property. Mayor Hinkle indicated that he felt the City should work in conjunction with the County in the purchase of the land to allow the City to acquire the land that they need for more ballfields and to allow the County to acquire the land that they need for more fairground space. Councilmember Engstrom indicated that he was in favor of working out the deal as he felt is was very important that the county fair stay in Elk River. Further discussion was carried on regarding the cost of the property the City is purchasing vs. the cost of the property the County was purchasing from the City. Councilmember Duitsman indicated that he had some problem with the County paying the same amount for developed land as the City was for undeveloped land. Further discussion was carried on regarding the possibility that the County would pay half of the $7,000 necessary for the land acquisition by the City. COUNCILMEMBER DUITSMAN MOVED TO AUTHORIZE THE SALE OF THE SEVEN AND ONE-HALF (7~) ACRES TO THE COUNTY FOR $33,500. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION~PASSED 4-0. B. Lion's Park Development The City Administrator indicated that Mr. Bud Houlton has agreed to a $75,000 price for the 33 acres of land known as the peat bod and that a purchase agree- ment is being executed. The City Administrator indicated that the contractor proposes to dig the hole after the ground freezes. The City Administrator further indicated that in the contract with the contractor $22,750 was for the construction of a 3 to 4 foot deep holding pond and that the contractors have submitted a change order in the amount of $55,080 for the construction of a five to six foot deep pond. The City Administrator indicated that an additional $60,000 was included in the bond issue for the moving of dirt from the pond, building of berms and hills. Further discussion was carried on regarding the cost of the development of the park in the peat bog area, the cost of easements and the funding available throught the Lawcon grant and the Lions. Discussion was also carried on regarding the construction of the road into the bog area. The City Administrator indicated that as the contractors dig the hole through the bog area for the pipe, they will fill with good fill which would then be the road into the bog area. City Council Minutes October 3, 1983 Page Eight COUNCILMEMBER DUITSMAN MOVED TO APPROVE CHANGE ORDER #2, IN THE AMOUNT OF $55,080, FOR THE CONSTRUCTION CONTRACT OF THE STORM SEWER PROJECT. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. The City Administrator indicated that the City would be applying again in 1984 for additional funding under a Lawcon grant. C. Gates Avenue Improvement Project The City Administrator indicated that the project has been moving along on schedule, that the contractors are past the houses on Gates Avenue and moving into the PUD area. The City Administrator indicated that they are expecting to get at least one layer of blacktop done before winter. D. Heavenly Hills Improvement Project The City Administrator indicated that the contractors are working in the Heavenly Hills Addition and further indicated that since the Council gave the City Administrator authority to proceed with condemnation of the Jacobson property, Mr. Jacobson has swapped that property with a person by the name of Joel Nystrom. The City Administrator indicated that he had met with Joel Nystrom and that it appears that he will be able to negotiate for the easement necessary. The City Administrator indicated that the contractors are still expecting to be completed with the project before the winter season. E. Meeting Date for Capital Improvement Program The City Administrator indicated that he has a Capital Improvement Program meeting scheduled for Thursday, October 20th at 7:30 p.m. at the Library. Councilmember Duitsman suggested that the City Administrator invite Mr. Don Kettner, Utility Commissioner, to the Capital Improvement Program meeting. 11~ Check Register COUNCILMEMBER ENGSTROM MOVED TO APPROVE THE OCTOBER 3, 1983 CHECK REGISTER. COUNCIL- MEMBER GUNKEL SECONDED THE MOTION. THE.MOTION PASSED 4-0. 12. Tentative Agenda The October 11th City Council meeting was cancelled. There being no further business, COUNCILMEMBER SCHULDT MOVED THAT THE MEETING BE ADJOURNED. COUNCILMEMBER DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. QPec:fL ~itted.. ~ Ph~S BOedighe~ Deputy City Clerk/Treasurer PB:dkk