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03-02-1981 CC MIN " REGULAR SEMI-MONTHLY MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY MARCH 2, 1981 Members Present: Mayor Hinkle, Councilmembers Schuldt, Engstrom, Toth and Duitsman Members Absent: None 1. The meeting was called to order at 7:30 p.m. by Mayor Hinkle. 2. Agenda Item 8~, Purchase Agreement from Dr. Dave Gildenbach, Item 8-1/3, Liquor License application by the Celt Corporation, and Item 8-1/2, Final Plat Approval of Belgin Acres were all items added to the March 2, 1981 City Council Agenda. COUNCILMAN SCHULDT MOVED APPROVAL OF THE AGENDA AS AMENDED. COUNCILMAN TOTH SECONDED THEMOTION~ THE MOTION PASSED 4-0. 3. Minutes Councilman Schuldt requested that Item 12, Administrator's Update, C. Street Maintenance, include the fact that the City Council stres~ed the importance of the Street Department not using the cinders containing the burned tire residue again. COUNCILMAN DUITSMAN MOVED APPROVAL OF THE MINUTES OF THE FEBRUARY 17, 1981 CITY COUNCIL.MEETING AS AMENDED. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 4 . OpenMike No one appeared for this item. 5. ConsiderHRA Appointment and Staff Services Mayor Hinkle indicated that Frank Madsen has resigned from the Housing and Re- development Authority and further indicated that he nominated Millie Busch to fill the vacancy created by Frank Madsen's resignation from the Housing and Redevelop- ment Authority. COUNCILMAN TOTH MOVED TO APPROVE THE APPOINTMENT OF MILLIE BUSCH TO THE HOUSING AND REDEVELOPMENT AUTHORITY. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. Councilman Toth questioned the amount of services the City Staff could provide to the Housing and Redevelopment Authority. The City Administrator indicated that the City Staff may not be able to keep detailed records for the Housing and Redevelopment Authority, but would have no problem providing minimum cleri- cal services such as typing of the minutes, paying approved bills, and other mini- mal routine services. COUNCILMAN DUITSMAN MOVED TO AUTHORIZE THE CITY STAFF TO PROVIDE CLERICAL SERVICES REQUIRED BY THE HOUSING AND REDEVELOPMENT AUTHORITY UNTIL SUCH TIME THAT THE SERVICES REQUIRED BECOME A PROBLEM FOR THE CITY STAFF. COUNCILMAN SCHULDT SEC- ONDED THE MOTION. THE MOTION PASSED 4-0. March 2, 1981 Page Two City Council Meeting --, 6. Consider Approval of the 1981-1982 Police Contract The City Administrator reviewed the changes in the 1981-82 Police Contract between the City of Elk River and the Minnesota Teamsters Public and Law Enforcement Employees Union for the City Council. The City Administrator in- dicated that there were some language changes in the contract, that the employer share of the hospitalization and life insurance would increase to $95 in 1981 and $105 in 1982, that the damaged uniform replacement would be subject to reasonable depreciation calculated by the employer with a cap of 9% in 1981 and 9~% in 1982, that the holidays would increase from 10 days to 11 days and payment in lieu of holiday time off would be made between December 1 and December 15, and the wage schedule changes for 1981 and 1982. COUNCILMAN DUITSMAN MOVED APPROVAL OF THE LABOR AGREEMENT BETWEEN THE CITY OF ELK RIVER AND THE MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT EMPLOYEES UNION LOCAL #320. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 7. Johnson Rezoning Request Public Hearing The City Administrator reviewed his memorandum of February 26, 1981 to the Mayor and City Council regarding Mr. Doug Johnson's request for a piece of property north of the intersection of County Road 1 and Proctor Avenue to be rezoned from R-IB, Single Family Residential, to R-4, Multiple Family Residential. Mr. Tom Kolar, a contractor/developer, was present to answer any questions the City Council may have regarding the rezoning request. Mr. Kolar indicated that the area requested to be rezoned consisted of approximately 4 acres and further indicated that the rezoning request was made to allow for multiple dwellings in the area because of the proximity to the school and the Industrial Park. Mr. Kolar indicated that the plan is to allow for a maximum of 36 units in approxi- mately 3 to 4 two-story buildings with financing applicati9ns to be made to the Minnesota Housing and Finance Authority or the Farmer's Home Administration. Mr. Jim Nystrom, Mr. Bill Brady, and Mr. Jim Swenson were present to express their objections to the rezoning due to the fact that they did not feel the area was suitable for apartment type buildings, that they felt the zoning ordinance approved approximately three months ago should show more stability than allowing for the change requested, and that they were not in favor of subsidized housing in that particular area. Mr. Bill Brady questioned where R-4 zoning has been planned in the City of Elk River. The City Administrator indicated that there was some R-4 zoning along School Street of which sewer was not available. Councilman Toth indicated that Mr. Gus Johnson, owner of the property, had con- sidered rezoning of the property approximately 1~ years ago, but did not do so because sewer and water was not available to the site, and therefore, left it as presently zoned. Mr. Toth further indicated that because sewer and water is now available, Mr. Johnson has asked for the rezoning. Councilman Duitsman indicated his preference to discuss the issue with other citi- zens in the community before making a decision. Councilman Toth asked if single- family dwellings could be put into the area. The City Administrator indicated March 2, 1981 Page Three City Council Meeting l that probably not, because of the roads not developed in the area, and also indicated that the R-4 zoning would provide a buffer between the industrial park and the school, and the residential area to the north. Mayor Hinkle indi- cated that this type of housing proposed for the area was needed in the community. COUNCILMAN DUITSMAN MOVED TO DENY THE REZONING REQUEST BY MR. JOHNSON FOR THE PROPERTY NORTH OF THE INTERSECTION OF COUNTY ROAD 1 AND PROCTOR AVENUE FROM R-1B ZONING TO AN R-4 ZONING. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 3-1. COUNCILMAN TOTH OPPOSED. 8. Dietz Rezoning Request Public Hearing The City Administrator indicated that the piece of property requested by Mr. George Dietz to be rezoned from R-2 to a PUD lies in the northwest corner of the intersection of 3rd Street and Evans Avenue and further indicated that the parcel in question is approximately 13 acres in size. The City Administrator further in- dicated that the piece of property in question would be adjacent ot the property zoned PUD to the north, also owned by Mr. Dietz. Mr. Tony Hippe, representative for the Ease Side Citizen Group, was present to question the use of the property requested to be rezoned from an R-2 to a PUD and further stated that the East Side Citizens Group argued against the R-4 zoning in the past and the Council agreed to have the property in question remain an R-2 zone. Mayor Hinkle explained that at the time of the Zoning Ordinance was adopted, the property in question was not zoned a PUD, as it was not owned by Mr. Dietz. The City Administrator indicated that Mr. Dietz had not indicated what use was planned for the PUD, but did indicated that he had a developer interested in multiple family dwellings for that area and further indicated that Mr. Dietz would have 53 acres zoned PUD and would have to have Council approval to divide the PUD into 20 acre parcels for development. Mayor Hinkle indicated that the Public Hearing was held but that the City Council could not take formal action until they had received recommendation from the Plan- ning Commission. Councilman Toth requested that the East Side Citizens be notified as to when formal action will be taken on Mr. Dietz's rezoning request. 8-1/4. Purchase Agreement by Dr. Dave Gindenbach The City Administrator indicated that the City had received a purchase agreement submitted by Dr. Dave Gildenbach to purchase the 5 acre parcel of land on Highway tf169 for the purpose of building a veterinary clinic and stable. Dr. Dave Gilden- bach was present to explain his desire to purchase the land to build a clinic and stable, as he has presently outgrown the facility he is now using for his clinic. Mr. Gildenbach indicated that his building would be architecturally designed and adaptable to the community and surrounding area and further indicated that he would like to expand his business, was interested in locating in the Elk River community, with highway exposure and easy access to the outlying areas. Mr. Glidenbach indicated that he did not have a need for City sewer and water, as there was not much waste from the facility he proposed, and further indicated that there March 2, 1981 Page Four City Council Meeting would not be a problem of animal odor, as it would be an enclosed facility and through proper management, a facility of this kind does not have the animal odor problem. Councilman Toth indicated that the area behind the f~ve acre parcel is zoned residential and that he did not feel commercial would enhance the residential area. Councilman Toth further indicated that he felt the City did not have a need to sell the property at this time. Councilman Engstrom indicated that it was a remote possibility that someday a City facility could be built on that parcel of land. The question was raised as to the proper zoning for an animal clinic facility. The City Administrator indicated that animal clinic facilities could be located in a commercial zone, and also possibly in an agricultural zone, and further indicated that if the City was interested in selling the property, Mr. Dave Gildenbach could proceed with his plans to purchase the property and build an animal clinic facility. Mayor Hinkle indicated that it was the concensus of the City Council to not sell the property at this time. 8-1/3. Liquor License Application by John McKinley - Celt Corporation, Inc. The City Administrator indicated that the Celt Corporation, Inc., Mr. John McKinley, President, has applied for a liquor license for the Campbell's Elk Bowl establishment, and further indicated that the Police Department has done a background check on Mr. John McKinley and has found that his background is acceptable except for 1 condition; that the Police Department is waiting for in- formation from the Canadian authorities. Mayor Hinkle asked if there was a problem issuing a license to a Canadian citizen. The City Administrator indicated that the State Statutes prohibit a Canadian citizen from the ownership of the liquor license, and further indicated that the Celt Corporation, Inc. is a Minnesota corporation incorporated in 1978. Mr. Bill Campbell of Campbell's Elk Bowl, was present to request the City Council to not approve the liquor license until the legality of the purchase of the Elk Bowl by Mr. John McKinley be investigated and accepted. Mr. Mike Mady, for- mer owner of the Elk Bowl, indicated that the issue before the City Council was not the legality of the purchase of the establishment. Mr. McKinley indicated that he has been operating the Campbell's Elk Bowl without selling liquor and asked for approval of the liquor license in order to begin selling liquor again. Councilman Toth asked the City Administrator to look into the legality of the ownership of the building, and also questioned Mr. McKinley as to how long his corporation has been in business. Mr. McKinley indicated that his corporation has been incorporated in Canada since 1973 and incorporated in the United States since 1978. COUNCILMAN DUITSMAN MOVED TO APPROVE THE LIQUOR LICENSE APPLICATION BY THE CELT CORPORATION, INC., JOHN McKINLEY, PRESIDENT, ON THE CONDITION OF THE CANADIAN AUTHORITIES POSITIVE REPORT. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. March 2, 1981 Page Five City Council Meeting ~ 8~. Belgin Acres Final Plat Approval The City Administrator indicated that the final plat for Belgin Acres had not been approved as the City was waiting for the signed developer's agree- ~ ment and the title opinion to be extended. COUNCILMAN DUITSMAN MOVED TO APPROVE THE FINAL PLAT FOR BELGIN ACRES. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 3-0. COUNCILMAN ENGSTROM ABSTAINED. 9. Municipal State Aid Street System Review and Discussion Mr. Terry Maurer and Mr. Jeff Roos, from Consulting Engineers Diversified, were present to answer any questions the City Council might have regarding their summary of the 1980 Municipal State Aid needs study for the City of Elk River. Gouncilman Duitsman questioned the possibility of getting the dam bridge done on MSA funds. Mr. Terry Maurer indicated that the dam bridge repair or replace- ment would cost approximately $700,000. The City Administrator indicated that the City of Elk River could apply for bridge bonding and that the MSA funds could be used for other projects in the City. Mr. Jeff Roos explained the MSA funds as a means of interim financing for capital improvement projects and further indicated that they were interested in the City Council's input into a planned five-year program. General discussion was carried on regar<ling streets to be designated as MSA streets, timing of the I projects and which projects would have priority. The City Administrator suggested the City Council look at the projects suggested by Consulting Engineers Diversified and prioritize which projects the City Council felt most important. Councilman Toth suggested that School Street be upgraded as a priority project and sidewalks be placed along Irving from School Street to the existing sidewalk. The City Administrator indicated that if School Street be considered as a project for the MSA funds, that storm sewer also be included in the project. It was the concensus of the City Council to authorize Consulting Engineers Diversified to do a feasibility study for School Street and to provide maps for the City Coun- cil with designated MSA streets and proposed projects for a meeting to be held on Monday, March 9th, at 7:30 p.m. by the City Council committee. 10. Administrator's Update A. Old 101 Bridge Replacement The City A<lministrator indicated that he would be meeting with TKDA and Wright County to discuss further input into the bridge replacement regarding future streets and roads, the direction of the downtown development, the course the HRA will dictate, and the historical data on the 101 Bridge. B. Establish day for Personnel Committee Meetings Mayor Hinkle indicated that there was business to be discussed by the Personnel Committee and suggested March 10th at 7:30 p.m. for a Personnel Committee meeting. March 2, 1981 Page Six City Council Meeting ., C. Farmer's Home Administration Grant Application for Sanitary Sewer Interceptor The City Administrator indicated that the City Council would have to adopt a resolution on future_ business in order to apply for the Farmer's Home grant. COUNCILMAN DUITSMAN MOVED TO ADOPT RESOLUTION 81-7, A RESOLUTION ON FUTURE BUSINESS. COUNCILMAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMAN TOTH MOVED TO AUTHORIZE THE APPLICATION FOR A FARMER'S HOME LOAN AND GRANT. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. The City Administrator indicated that the Upper Great Lakes Regional Commis- sion was out of business, but that the City would still apply for a grant, as Congress may not approve the President's proposals for budget cuts. D. League Conference The City Administrator indicated that a legislative action conference was scheduled and anyone interested could attend. 11. Check Register COUNCILMAN SCHULDT MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. 12. Tentative Agenda Santwire'sAdministrative Subdivisibn and the Municipal State Aid Street project are items tentatively scheduled for the March 16th, 1981 City Council meeting. 13. Riverside Liquor Store Mr. LeRoy Toth, representing Mr. Barney Gustafson, was present before the City Council to indicated his concerns and opinions regarding teh City Police Depart- ment occupying the office space adjacent to Riverside Liquor Store. Mr. Toth indicated his concern for Mr. Gustafson when the City removed their off-sale operation located next to the liquor store; also the concern of Mr. Gustafson regarding personal property tax and now the concern of the Police Department moving next door. Mr. Toth requested the City Council consider the impact that the location of the Police Department next to Mr. Gustafson's business may have on his business. There being no further business, COUNCILMAN TOTH MOVED THAT THE MEETING BE ADJOURNED. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. Respectfully Submitted, if~~~~d6fJ6 Phyllis Boedigheimer Deputy City Clerk/Treasurer PB:dkk