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10-05-1981 CC MIN REGULAR SEMI-MONTHLY MEETING OF THE CITY COUNCIL OF ELK RIVER HELD AT THE ELK RIVER PUBLIC LIBRARY OCTOBER 5, 1981 Members Present: Mayor Hinkle, Counci1members 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 10~ - Elk Hills Drive Turn Lane was added to the October 5, 1981 City Council Agenda. COUNCILMAN ENGSTROM MOVED TO APPROVE THE OCTOBER 5, 1981, CITY COUNCIL AGENDA AS AMMENDED. COUNCILMAN DUITSMAN SECONDED THE MOTION. . THE MOTION PASSED 4-0. 3. Minutes COUNCILMAN TOTHMOVED TO APPROVE TaE MINUTES OF THE SEPTEMBER 21, 1981, CITY COUNCIL MEETING. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike Mr~.Gary Rohling asked the City Council to request the sewer interceptor contractor to repair or improve the interceptor crossing on School Street. Mayor Hinkle in- dicated that the City Administrator is planning to notify the contractor to im- prove the crossing immediately. Mr. Tony Hipp questioned the City Council regarding the additional $3.00 service charge on the utility billing statement. Councilman Duitsman explained that the Utilities Commission establishes the rates for Elk River Utilities and further suggested that if Mr. Hipp had questions regarding the service charge, he was en- couraged to attend the Elk River Utilities Commission meeting. Mr. Tony Hipp ques- tioned the Commission's authority to establish rates without City Council approval. Councilman Duitsman indicated that the service charge was added to allow Elk River Utilities to remain competitive with other utility companies in the area. 5. Tescom Use of Salk Junior High School Mayor Hinkle indicated that Tescom Corporation is seeking to move its Pressure Con- trol Division to the City of Elk River. Mayor Hinkle indicated that Tescom Corpor- ation is in the process of negotiating a temporary lease for a portion of the Salk Junior High School building with the Elk River School system. Inasmuch as the use proposed by Tescom is temporary in nature and consistent with the use proposed by the School of the areas to be rented, the lease was supported by the School Bbard. Mr. Don G1esmann, Vice-President and General Manager of the Pressure Controls Di- vision, was present to discuss the Tescom Corporation and its intention of leasing a portion of the Salk Junior High on a temporary basis and the proposal of obtain- ing industrial revenue bonds to build a building in the Elk River community. Mr. G1esmann indicated that the Pressure Controls Division of Tescom Corporation designs October 5, 1981 Page Two manufactures and sells fluid control devices used in the aero space industry, electronics, the petroleum industry, the commercial diving industry, and other general industries. Mr. Glesmann indicated that the Tescom Corporation is com- mitted to move its Pressure Controls Division out of it metropolitan Twin Cities location by January 16, 1982, and through efforts of some of the community mem- bers, has been able to enter into negotiations with the Elk River School District for a short term lease for a poriton of the Salk. Junior High School. Mr. Glesmann explained that the Pressure Controls bivisionwould be considered a light manu- facturing industry and would not create adverse affects on the school or the com- munity. Mr. Glesmann indicated that it was the intent of Tescom Corporation to locate permanently in the City of Elk River and after the lease agreement was agreed to with the School. District, Tescom Corporation would be asking the City of Elk River to supportan industrial revenue bond for the financing of a permanent facility. Mr. Glesmann indicated tha ti',the permanent facility would consist of approximately 35,000 to 50,000 square feet, and would be a<l!:2 to 2 million dollar project. Mr. Glesmann indicated that Tescom Corporation would possibly be approach- ing the City of Elk River within the next two to three weeks, regarding industrial revenue bonds and further indicated that plans are now on the drawing board for the building, with an anticipated ground-breaking in the spring. Mr. Lloyd Brutlag, Business Manager for the Independent School District fl728, was present to inform the City Council of the School. District's intent to negotiate a l~ase with Tescom Corporation for a portion of the. Salk Junior High School. Mr. Brutlag indicated that the rental would be sufficient to cover the District's costs and comparable to other rents in the area. Mr. Brutlag further indicated that Tes- com Corporation would be using the east section of the building which consists of the shop areas and that the usage is consistent with the design of the facilities and intended use of those areas. Mr. Dick Gongoll, representing the Elk River Associated Investors, also asked the City's support of Tescom's request for industrial revenue bonds to build a perm- anent facility within the Elk River community. The Councilmembers reviewed and discussed the.findings and information in Resolu- tion 81-44. The Council felt that the resolution adequately stated the facts of the situation and agreed with the findings reflected. No additions or corrections to the resolution were suggested. Councilman Duitsman indicated his support of the Tescom Corporation's intent to locate a facility in the Elk River community. COUNCILMAN DUITSMA,NMOVED TO AUTRORIZE CONCEPT APPROVAL OF TESCOM'S REQUEST FOR INDUSTRIAL REVENUE.BOND.FINANCING.ON.A.NEW.FACILITY.WITHINTHE CITY.OF ELK RIVER. COUNCILMANENGSTROMSECONDEDTHEMOTION~ THE MOTION PASSED 4-0. 6. IndusttialL . Park. SanitarySewetLaterals The City Administrator indicated that Mr. Les Demorest of Mo-Con, Inc., located in the Industrial Park, has informed the Investor's Association and the city engineer that he would like to have the sewer lateral extended to the limits of his property, such that any future extensions would not require his property to be disturbed during construction. The City Administrator further indicated that City staff and the city engineer agree that Mr. Demorest's request is reasonable. The City Administrator also indicated that if the extension of the line is built October 5, 1981 Page Three as requested, the primary benef~ctor of the extension of that line would be Mr. John Oliver, who owns property north of County Road 1, which could then be serviced by the extension. The City Administrator further indicated that the Elk River Investor's Association and Mr. Oliver have discussed a method for paying the approximate $3,900 required for the extension. The City Administrator rec- ommended that because timing is important at this stage of construction, that the City Council authorize the construction of the extension with the specific under- standing that the construction would not proceed until there was a legally binding agreement between the Elk River Investor's Association and John Oliver, regarding the payment of the change order cost. Councilman Toth questioned the method of assessing the additional change order cost. Councilman Duitsman asked if the cost of the extension could be assessed differently than the rest of the project. Mr. Dave Sellergren, City Attorney, indicated that the, formula for the means of asses- sing the cost is not significant,,: as long as the assessment is no greater than the benefits to the property. Mr. Dick Gongoll, representative for the Elk River In- vestor's Association, indicated that an agreement for the change order costs could be reached with Mr. John Oliver and the Investors Group, and further indicated that two property owners still object to the sanitary sewer lateral design along the west side of thei:street. Mr. Gongoll indicated that representatives of the Elk River Investor's Association, the City Administrator and Mr. Chuck Wilson, of McCombs-Knutson engineering firm wduld be meeting in the next day to discuss the issue of moving the sanitary sewer lateral line to the other side of the street. Mr. Chuck Wilson of McCombs-Knutson and Associates, Inc., indicated that it was imperative that a decision be made asa pre-construction conference is scheduled for October 9th. Councilman Toth questioned the utilities on the opposite side of the street as posing a problem for the redesign of the sanitary sewer lateral. COUNCILMAN ENGSTROM MOVED TO AUTHORIZE A CHANGE IN THE DESIGN OF THE INDUSTRIAL PARK SANITARY SEWER LATERAL TO MOVE THE LINE TO THE EAST SIDE OF THE STREET RATHER THAT TRE EXlSTING DESIGN ON THE WEST SIDE, PROVIDING THAT SUCH MOVE IS ECONOMICALLY FEASIBLE AND AGREEABLE TO THE' PARTIES CONCERNED AND 'IN THE' EVENT THAT !SOCH "A MOVE TO THE WEST SIDE OF THE STREET IS NOT PRACTICAL, THAT THE SANITARY SEWER LATERAL BE EXTENDED TO THE END OF THE MO-CON PROPERTY ON THE EAST SIDE OF THE STREET. COUNCILMAN DUITSMAN'SECONDED THE'MOTION. THE MOTION PASSED 4-0. 7. Vacation of Utility and Drainage Easement in Barrington Place Subdivision- Public Hearing. Mayor Hinkle indicated that Mr. Gary Santwire, developer of Barrington Place, and McDonald's Corporation have requested that the City of Elk River vacate a utility and drainage easement on the common lot line of Lots 5 and 6, Block 6, Barrington Place Subdivision. Mayor Hinkle indicated that the request to vacate the easement has been made inasmuch as the McDonald's Corporation has purchased Lots 5 and 6, and plans to locate their restaurant on the common lot line between Lots 5 and 6, and further further indicated that there were utility and drainage easements 011< ,the remaining sides of Lots 5 and 6, and that the utility and drainage easement along the common lot line would serve no purpose for the City of Elk River. Mayor Hinkle declared the public hearing open. There being no persons wishing to address the subject, Mayor Hinkle closed the public hearing. . ~ October 5, 1981 Page Four COUNCILMAN SCHULDT MOVED TO APPROVE RESOLUTION 81-43, A RESOLUT:rON VACATING A DRAINAGE.AND.UTILITY.EASEMENT.IN.THE.BARRINGTON.PLACE.SUBDIVISION. COUNCILMAN ENGSTROM SECONDED THE MOTION. .THE.MOTIONPASSED 4~0. 8. Vacation of Freeport Avenue Street Easement - Public Hearing Mayor Hinkle indicated that Mr. Gene Kreuser has requested that the City of Elk River vacate a street easement formerly known as Freeport Avenue between 3rd Street and Main Street, as the street is not utilized by the City for street purposes and would be both impractical and improbable for the City of Elk River 1Jo utilize this easement at a future date for street construction. Mayor Hinkle declared the public hearing open. There being no persons wishing to address the usbject, Mayor Hinkle closed the public hearing. COUNCILMAN DUITSMAN MOVED 'fO ADOPT RESOLTUION 81-42, A RESOLUTION VACATING THAT PART OF FREEPORT AVENUE LYING SOUTH OF THE SOUTH LINE OF 3RD STREET AND NORTH OF THE NORTH LINE OF MAIN STREET IN THE CITY OF ELK RIVER. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PAS SED 4-0. 9. Kirkeide Rezoning Request - Public Hearing The City Administrator indicated that Mr. Kirkeide had requested that the City of Elk River rezone a piece of property located at 173rd Avenue and Highway fllO from its present zoning of C-3, Highway Commercial, to an A-I, Agricultural Con- servation zone. The City Administrator further indicated that Mr. Kirkeide proposes to build a home on the approximately 3 buildable acres of a total of 13 acres which he plans to purchase in the area. The City Administrator indicated that the current ownership patterns in the area makes the piece of property which Mr. Kirkeide pro- poses to buy impractical to use as C-3, Highway Commercial at the present time, because it is far removed from the highway. However, in the event an individual purchased both Mr. Kirkeide's piece of property as well as the property adjacent to and fronting on Highway #10, the resulting total piece of property would be a desirable piece of property for Highway Commercial purposes. The City Administra- tor indicated that the Planning Commission at first voted to deny the rezone re- quest, but the motion failed for lack of a majority, and after additional discus- sion, the Planning Commission voted to approve the rezone request with a vote of 2...1-1. The City Administrator further indicated that City staff and the city plan- ner have reviewed the rezone request and have recommended that it be approved for rezoning as Agricultural Conservation, since the property is too far removed from Highway #10 to be used practically as a Highway Commercial zone, and there is no indication that ownership patterns will change to allow the property to be used effectively as Highway Commercial. Mr. Kirkeide expressed his interest in buildIng a residential home on the approxi- mately 3 buildable acres, which is fully wooded and overlooking the river, and further indicated that he did not feel his intent for the use of the property would convlict with the commercial usage of the adjoining properties. Mr. Ronald Benson, property owner adjacent to the property in question, expressed his concern of down-zoning his property. Mr. Mapson, another property owner in October 5, 1981 Page Six B. Staff Attendance of aSch661/Seminar The City Administrator indicated that Mr. Kenny Nelson, Street Superintendent, will be attending a training session on recycling of asphalt for road repair and road building purposes. C. Police Service to Wright County The City Administrator indicated that he and the Police Chief met with the Sheriff and Chief Deputy of Wright County regarding the number of calls re- sponded to by the City's Police Department in Wright County. The City Admin- istrator indicated that Wright County was in the process of adding watch commanders/supervisors for each shift to better administer their department. The City Administrator further indicated that the dispatchers would communi- cate with the supervisors and the supervisors would make a specific request for police services from Elk River. The City Administrator further indicated that Wright County realizes there would be emergency-type calls required by the City of Elk River Police Department but would reciprocate with help from their department, i.e., the use of the polygraph. The City Administrator indicated that with regard to liability, a mutual aid agreement should be executed, and further indicated that our city attorney would draft one for their approval. It was the Council's concensus that the improvements suggested by the Admin- istrator be implemented. Councilman Duitsman requested a report after three months regarding the new policies and how they were working. D. Little Sands Group Home The City Administrator reviewed the sequence of events regarding the Little Sands Group Home per memo to the Mayor and City Council, dated October 1, 1981. The City Administrator indicated that in discussing the matter of the Little Sands Group Home with the city attorney, it was pointed out that the standards imposed within the home occupation permit section of the zoning ordinance were not practical when applied to the use proposed by the Little Sands Group Home. The City Administrator indicated that it was the city attorney's recommendation that the home occupation standards be reviewed and altered ,to allow the flexibility of the City Council with regard to unique situations. The Ctiy Administrator indicated that in his discussion with the city attorney regarding the home occupation standards, consideration was given to changes to the standards that would make them more general in nature, yet retain the City's ability to review all factors associated with the home occu- pation. The City Administrator asked that the City Council authorize the development of better language within the home occupation permit section of the zoning ordinance. The City Administrator further indicated that Mr. Jahn of the Little Sands Group Home was present to answer any questions the City Council may have, specifically regarding the Little Sands Group Home oper- ation. Mr. Jahn indicated that he and his wife have a group home on a lake in Reimer, Minnesota, for fourteen girls. Mr. Jahn indicated that he has a staff of three professional people with his Little Sands Group Home,working with a budget of. $127,000. Mr. Jahn indicated that his home is for girls that are victims; victims of neglect, alcoholism, incest and other problems. Mr. October 5, 1981 Page Seven Jahn indicated that the girls must be able to attend school and may not be pregnant, and further indicated that his group home teaches the girls to cope with their situations and skills to return back to their homes. Mr. Jahn indi- cated that one-third of his girls are from this area and therefore, has been requested by the County Board to locate a home in the Elk River area. Mr. Jahn indicated that they were in the process of negotiating a rent-with- option-to-buy agreement for a home located east of Highway #169 on County Road 33. Councilman Schuldt asked if any additions were proposed for the home. Mr. Jahn indicated that some interior alterations were necessary to comply with the health department and fire department which would include the alteration of a bathroom and the addition of a bathroom in the downstairs area, along with some additional railings. Mr. Dave Sellergren, City Attorney, indicated many cities had ordinances dealing with group homes only and that a specific ordinance could be drafted for the City of Elk River, or the other possibility that the language in the home occupation section could be changed. Mr. Sellergren indicated that under either of the options, the group home could be considered under a con- ditional use. COUNCILMAN TOTH MOVED 'TO 'AUTHORIZE THE CITY ATTORNEY TO DRAFT THE APPROPRIATE LANGUAGE FOR AN" ORDINANCE' DEALING' WITH GROUP HOMES. 'COUNCILMAN' DUITSMAN SECONDEDTHEMOTION~ 'THEMOTIONPASSED 4-0. COUNCILMAN DUITSMAN MOVED 'TO AUTHORIZE THE CITY ATTORNEY ,TO REVIEW AND DRAFT APPROPRIATE LANGUAGE'FOR'THE'AMENDMENT OF'THE'HOME OCCUPATION SECTION OF THE ZONING' ORDINANCE.' COUNCILMAN" ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4'-0. E. International City Manager's'C6nference Attendance The City Administrator reviewed the memorandum to the Mayor and City Council dated October 1, 1981, regarding the 1981 annual conference of the Internation- al City Management Association. 12. Meeting Dates Schedule The following dates have been tentatively scheduled for the discussion of the 1982 Citybudget: October 7th-. Budget meeting, 7:30 p.m., Elk River City Hall; October 19th .... Regularly scheduled City Council meeting to discuss the proposed use revenue sharing; October 26th - Final adoption of the City budget for 1982, 7: 30 p.m., Elk River City Hall; October 14th - Discussion of the storm drainage for the School Street project, 7 :30 p.m., Elk River City Hal1. 13. Check' Register . COUNCILMAN ENGSTROM MOVED TO" LWPROVE ' THE' CHECK REGISTER ~ COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. October 5, 1981 Page Eight 14. TentativeAgenda The Elk Rills Drive turn lane is tentatively scheduled for the October 19th, 1981 City Council meeting. There being no.furtherbusiness~.COUNCILMAN.TOTHMOVED.THAT.THE'MEETING BE ADJOURNED. COUNCILMAN DUITSMAN' SECONDED. THE. MOTION~. , 'THE' MOTION 'PASSED' 4-0. Closed City Council meeting with the city attorney to discuss legal options and possible actions relative to the Riverside Bar and Lounge Lease Negotiations. Open City Council Committee Meeting to discuss specific terms and/or conditions in the Riverside Bar and Lounge Lease. COUNCILMAN ENGSTROM MOVED TO.. AUTHORIZE. THE CITY ADMINISTRATOR TO RE-NEGOTIATE THE LEASE WITH CLIFFORD GUSTAFSON WITHIN THE PARAMETERS DISCUSSED BY THE CITY COUNCIL IN THE CLOSED MEETING ~ . COUNCILMAN DUITSMAN SECONDED' THE MOTION ~. THE MOTION PASSED 4..;.0. Respectfully Submitted, de Robert C. Middaugh City Administrator RCM:dkk