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06-07-1982 CC MIN REGULAR SEMI-MONTHLY MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER PUBLIC LIBRARY JUNE 7, 1982 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 10~ - meeting dates for July and August was added to the June 7, 1982 City Council Agenda. COUNCILMAN ENGSTROM MOVED TO APPROVE THE JUNE 7TH, 1982, CITY COUNCIL AGENDA AS AMENDED. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. 3. Minutes COUNCILMAN SCHULDT MOVED TO APPROVE THE MINUTES OF THE MAY 17, 1982 CITY COUNCIL MEETING. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. 4. Open Mike No one appeared for this item. 5. Final Approval of the Tescom Industrial Revenue Bond The City Administrator indicated that Resolution 82-10 is a resolution granting final approval for the issuance of $1,500,000 of industrial revenue bonds for the Tescom Corporation. The City Administrator indicated that the documents necessary for the industrial revenue bond issue have met with the City Attorney's approval and further indicated that approval of this resolution would be the final action necessary for the industrial revenue bond issue for the Tescom Corporation. Mr. Don Glessman, representative of the Tescom Corporation, was present to answer any questions the City Council may have. Mr. Glessman indicated that the construction of the new project is ahead of schedule and it is anticipated that they will have a July occupancy of the new building. COUNCILMAN .TOTH MOVED TO APPROVE RESOLUTION 82-10, A RESOLUTION GRANTING FINAL AP- PROVAL TO THE ISSUANCE OF $1,500,000 FOR INDUSTRIAL REVENUE. BONDS FOR THE TESCOM CORPORATION. COUNCILMAN ENGSTROM.. SECONDED THE MOTION. THE MOTION PASSED 5-0. 6. Ad Hoc Advisory Committee Final Report on City Operations Mayor Hinkle indicated that Mr. John Pearce, Chairman of the Ad Hoc Advisory Com- mittee, was present to review the report submitted to the Council by the Committee and answer any questions that the City Council may have. Mayor Hinkle further expressed his appreciation to the Ad Hoc Advisory Committee for. .their work in studying the City's operations and for the final report they ha~e submitted to the City Council. City Council Minutes June 7, 1982 Page 2 Mr. John Pearce indicated .that the Committee has met with various organizations within the City at eight different times throughout the period of their review of the City's operations. Mr. Pearce also indicated that the Committee contacted other cities and various local citizens for information and input into the review of t1)e City's operations. Mr. Pearce emphasized that their suggestions were not critical and were to be considered constructive in nature. Mr. Pearce indicated that it was the Committee's belief that the City of Elk River had a well-run and well-managed government and that the Committee's recommendations were long-ranged recommendations and not politically motivated. Mr. Pearce further indicated that the Committee would be willing to meet with the Committee of the City Council at their earliest convenience to discuss the report and the procedure of implementing suggestions as specified in the report. Mr. Pearce indicated that the Ad Hoc Advisory Committee discovered there were three areas of common concern expressed by the governmental bodies at all levels of the City government. They are as follows: A. Communiciations B. Lack of long~range comprehensive planning C. Coordination of salary, administration, equipment and personnel Mr. Pearce indicated that the Ad Hoc Advisory Committee's recommendations in the area of communications were to have group meetings between the City Council and representatives of each of the commissions and board, perhaps sometime mid-year, not for the purpose of discussing budgets, but for the purpose of communicating between the Council and the citizen representatives. The Committee also recommended that job descriptions and expectations be outlined for the commissions and board- members. Mr. Pearce also expressed the recommendation of the Committee for a sys- tem of notifying the public of agenda items. Mr. Pearce indicated that the Ad Hoc Advisory Committee made the following recommen- dation regarding a long-range plan for the City of Elk River: 1. that a formal plan system be adopted that will be responsible for the long range coordinating plans for sewer, water, electricity, streets, parks, new subdivision and zoning changes; and, 2. that .the Planning Commission should be the clearinghouse for citizens' in- put and further, that they should make recommendations to the Council on develop- ment plans which would include public hearings on all items that affect local neighborhoods. Mr. Pearce further indicated that with regard to the coord:!nation>of personnel, salary, equipment, and administration, the Ad Hoc Advisory Committee recommendation was to include both the electric and water utility.. operation under the control of the City Council, and further, to establish a new volunteer rate commission which would be appointed by the Council and have the final authority and responsibility to establish rates. Mr. Pearce thanked the City Council for the Advisory Committee's opportunity to serve the community. COUNCILMAN DUITSMAN MOVED TO ACCEPT THE REPORT FROM THE AD,HOC ADVISORY COMMITTEE ON LOCAL GOVERNMENT OPERATIONS. COUNCILMAN.ENGSTROM,SECONDEDTHEMOTION. THE MOTION PASSED 4-0. June 22, 1982, 8:00 p.m. at the Elk River City Hall, was established as a date for the City Council Committee and the Ad Hoc Advisory Committee to discuss the recom- mendations of the Ad Hoc Advisory Committee and the procedure for implementation. City Council Minutes June 7, 1982 Page 3 7. Peterson Addition Reassessment - Public Hearing The City Administrator indicated that the total cost for the Peterson Addition im- provements was $200,831.55, of which $136,765.17 is assessable to the benefited area, and further indicated that at the May 3, 1982, City Council meeting, the City Council determined that the benefited area for the Peterson Addition improve- ments should be the properties specifically in the area referred to as the Peterson Addition. The City Administrator further indicated that the City Council determined that the benefited properties in the. Peterson Addition should be assessed on a unit basis with all individual property owners assessed equally. The City Administra- tor indicated that there are 28 parcels of benefiting property in the Peterson Ad- dition which would amount to a total assessment of $4,884.47 per parcel. The City Administrator further indicated that the refunds or credits will be figured on an individual basis and that in making the refunds or credits for overpayment of assess- ments, Judge Dablo is his District Court order, specified that the City must pay interest for the overpayments. The City Administrator indicated that in Judge Dablo's order, a rate of interest was not specified and further indicated that the City At- torney has indicated that the legal rate of interest when no other rate of interest is specified, is six percent. Mayor Hinkle opened the public hearing. Mr. Wally Ohland questioned how the costs were arrived at and specifically, which parcels were included in the 28 parcels specified. The City Administrator explained that Mr. Ohland is assessed for one unit and further indicated that the parcel Mr. Ohland's home is actually located on is not specified as one of the benefiting properties. Mr. Cliff Lundberg, representing Christian and Peterson, questioned the method of assessment on a per unit basis, .as some of the parcels were five-acre parcels and some were two and one-half acre parcels. Mr. Lundberg indicated that a five-acre parcel could be split to 2 two and one-half acre parcel and therefore, would be paying less for an assessment. General discussion was carried on regarding the method of assessment on a per unit basis versus an acreage basis. Councilman Engstrom indicated that he felt the as- sessment should be based ona unit basis because of the equal use of the street improvement by each parcel. The City Administrator indicated that if the assessment were done on an acreage basis, that would presume that all lots could be split into two and one-half acre parcels.and and as the plat is laid out, some of the parcels could not be split. Mr. Lundberg also questioned the rate of interest and suggested to the City Council that the legal rate of interest on judgements is eleven percent and further indicated that the project Was assessed at eight percent and suggested that the City Council consider something more than the suggested six percent. The City Administrator indicated that the State Statute indicates that the local rate of indebtedness is six percent and if the percent of interest for judgements does apply, the City Council would have to pay that specified amount of interest. Councilman Toth indicated that it was his feeling that each lot benefited equally for the street improvement and therefore, felt the assessment should be done on an equal basis. Mr. Bill Beauchaine questioned the total amount of the project as compared to the estimated costs for the project. The City Administrator indicated that the project City Council Minutes June 7, 1982 Page 4 had many change orders due to the problems in the project and further indicated that there were still problems with patching that needed to be completed as well as the shoulders along the roadside. The City Administrator indicated that he contacted H & .s regarding the shoulders and further indicated that they would be out there to complete the project. The City Administrator indicated that there is no recourse against the contractor or the engineer for costs because the one year warranty has expired. Mrs. Roberta Beauchaine indicated that at the time of the original assessment it was determined that the fair way to assess the project was on a per unit basis. As no one else was interested in speaking to the issue, Mayor Hinkle closed the public hearing. COUNCILMAN DUITSMAN MOVED TO ADOPT THE ASSESSMENT ROLL AS PROPOSED FOR THE PETERSON ADDITION BASED. ON.. A PER . UNIT. COST; COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMAN ENGSTROM MOVED TO APPROVE THE RATE OF INTEREST FOR REFUNDS AT SIX PERCENT UNLESS STATE STATUTE SPECIFIES DIFFERENTLY. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. General discussion was carried on regarding the recourse a city may have with respect to problems in a construction project through neglect of the contractor or engineer. COUNCILMAN DUITSMAN MOVED TO AUTHORIZE THE CITY TO STUDY THE PROBLEM, REVIEW WHAT RECOURSE THE CITY MAY HAVE AND TO DEVELOP A SYSTEM OF INSPECTIONS IN ORDER TO PRO- TECT THE CITY AGAINST.POSSIBLE.PROBLEMSTHATMAYDEVELOP IN FUTURE PROJECTS. COUNCIL- MAN ENGSTROM SECONDED THE MOTION; THE MOTION PASSED. 4-0. 8. Barrington Place Commercial and Retail Facility Industrial Revenue Bonds The City Administrator indiated that Mr. Gary Santwire, developer of Barrington Place, was present to review several items related to the construction of a building in the Barrington Place Subdivision. The City Administrator further indicated that Mr. Santwire's proposal is for a 47,000 square foot commercial retail building for which he win be request.ing an industrial revenue bond, and further indicated that Mr. Santwire will be reviewing the necessity of an administrative subdivision and an easement vacation. Mr. Gary Santwire introduced Mr. Bob Shulze, Mr. Clem Darkenwald, Mr. Scott Anderson, Mr. Bob Benson and Mr. Sid Reed, as partners of his in various projects, to the City Council, and indicated that these gentlemen were interested in the Council's response to the items Mr. Santwire wanted to review with the City Council. Mr. Santwire in- dicated that there had been some various changes in the Barrington Place plat as com- pared to the original concept proposed to the City Council last fall. Mr. Santwire indicated that the McDonalds restaurant was built on two sites in the plat consisting of approximately 2,000 square feet rather than the proposed 16,000 square feet for a building at that location on the original concept. Mr. Santwire further indicated that the plan now shows for a restaurant at the other end of the commercial area and further indicated that with the shuffling of proposed buildings and square footages, City Council Minutes June 7, 1982 Page 5 ., the project will have approximately 7,000 square feet less of commercial retail space. Mr. Santwire indicated that the final site plan for Kentucky Fried Chicken was approved and they' are now negotiating for a loan and will then proceed with construction. Mr. Santwire indicated that McDonald's respresnts about twenty per- cent of the commercial land in the Barrington Place project and that the eighteen townhomes now constructed or under construction represent approximately fifteen percent of the residential densities. Mr. Santwire indicated that the Barrington Place project has represented approximately twenty-eight percent of the residential building permits in the City of Elk River in 1982, and further indicated that approx- imately $56,000 has been paid to date for improvements and $10,000 in sewer hookup charges. Mr. Santwire then indicated to the City Council that he is proposing to build a 47,000 square foot commercial--retail building with approximately 44,000 as lease space and 3,000 square feet for mall area. Mr. Santwire indicated that 47,000 square foot building is a large project and that he is looking to the City Council for full supp~t regarding industrial revenue bonds, the easement vacation, and the administrative subdivision. Mr. Santwire indicated that in Resolution 81-53 , the City Council gave preliminary approval for a $3,000,000 industrial revenue bond issue and further indicated that the need for the 47,000 square feet would be approximately $2.5 million in industrial revenue bonds. Councilman Duitsman indicated that another major developer would be making a pro- posal to the City Council at the June 21st City Council meeting for industrial rev- enue bonds and further indicated that it was his suggestion that the City Council postpone a decision regarding the Barrington Place Industrial Revenue Bonds until all information had been received from the community regarding both projects. Mr. Gary Santwire indicated that Barrington Place is being developed and money is being spent and that he is asking for the City Council's blessing, so to speak, to proceed with the project. Councilman Engstrom indicated that he felt Barrington Place is moving very nicely and expressed his appreciation to Gary.Santwilte for his development. COUNCILMAN DUITSMAN MOVED TO HAVE MR. SANTW1RE'S PROPOSAL PLACED ON THE JUNE 21ST 1982, CITY COUNCIL AGENDA, RIGHT AFTER THE BARTHEL CONDITIONAL USE PUBLIC HEARING. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. St. Louis Park Sportsman's Club Gun Club Permit COUNCILMAN TOTH MOVED TO GRANT A GUN CLUB PERMIT TO THE ST. LOUIS PARK GUN CLUB FOR ONE YEAR. COUNCILMAN DUITSMAN SECONDED THE MOTION. Councilman Schuldt questioned the options submitted by the City Administrator in his memo to the Mayor and City Council, dated June 3rd, 1982. Councilman Schuldt indicated that the City Administrator had suggested that the gun club permit be issued for an indefinite period of time, with the specific condition that the facil- ity be inspected annually, and should a condition arise affecting the public health, safety or welfare, the permit would be subject to immediate review. Councilman Toth indicated that he wanted to issue the permit on an annual basis and see what happens at the gun club. General discussion was carried on regarding the issuance of the permit on an annual basis or for an indefinite period of time, with an annual inspec- tion of the facility. City Council Minutes June 7, 1982 Page 6 COUNCILMAN DUITSMAN MOVED TO AMEND THE MOTION TO ISSUE A GUN CLUB PERMIT FOR AN INDEFINITE PERIOD OF'TIME, WITH THE SPECIFIC CONDITION THAT THE FACILITY BE IN- SPECTED ANNUALLY BY THE CHIEF OF POLICE. COUNCILMAN SCHULDT SECONDED THE MOTION. THE AMENDMENT TO THE MOTION PASSED 4--0. THE ORIGINAL MOTION PASSED AS AMENDED 4-0. 10. City Liquor License Policy Mayor Hinkle indicated that according to State Statute and the Liquor Control Com- mission,the City is only entitled at this point to issue six intoxicating liquor licenses within the City boundaries, and further indicated that because the number of licenses is established by the State, and the City has issued five, leaving one license still available, there is no' reason to address the issue of liquor licenses at this time. COUNCILMAN DUITSMAN MOVED TO DISMISS THE ISSUE OF THE NUMBER OF LIQUOR LICENSES AVAILABLE IN THE CITY OF ELK RIVER AT THIS TIME OR UNTIL SUCH TIME THAT A PROBLEM ARISES. COUNCILMAN 'SCHULDT ',SECONDED THE MOTION. THE MOTION PASSED 4-0. Councilman Schuldt indicated that as he reviewed the list of off-sale non-intoxicat- ing malt liquor licenses, he had some question as to why establishments that also sold on sale liquor should have to sell off sale. Councilman Schuldt indicated that it appeared come closing time, a person can also get a six pack to go and further indicated that he felt the on sale and off sale were not compatible. Councilman Schuldt also questioned the Elk River Country Club off sale non-intoxicating malt liquor license. The City Administrator indicated that the City Council could adopt a resolution or ordinance that would address the establishments holding both on sale liquor licenses and off sale non-intoxicating malt liquor licenses. Councilman Toth indicated that he felt the City Council can not pick and choose who should have licenses and who should not. Councilman Duitsman asked the City Administrator if the Police Department has reported problems with the establishments selling the off sale non-intoxicating malt liquor. The City Administrator indicated that the Police Department has not discussed such problems with him. Councilman Duitsman asked for a report from the Police Department regarding problems involving the off sale of non- intoxicating malt liquor. Councilman Duitsman indicated that he felt if the City is going to limit the off sale licenses, it should be, part of the City Code, and further indicated that he did not feel there was a problem with the off sale licenses holders and further indicated that he did not feel it was the City Council's right to pick and choose who should sell and who should not. The City Administrator indicated that the City Code refers to the moral character of a holder of a liquor license and further indicated that the City Council could adopt an ordinance change that would prohibit specific uses, i.e, the non-issuance of off sale non-intoxicating malt liquor licenses to On sale liquor license holders. Councilman Duitsman indicated that he felt the number of licenses could be limited but not the decision of who can have a license and who can not. General discussion was carried on regarding the specifying of a number of non-intoxi- cating malt liquor licenses to be issued versus who should ' have a license and who should not.. Councilman Duitsman indicated that some holders of non-intoxicating malt liquor licenses may ndt renew the license due to the increase in fees. City Council Minutes June 7, 1982 Page 7 COUNCILMAN DUITSMAN MOVED TO ADOPT ORDINANCE 82-4, AN ORDINANCE AMENDMENT LIMITING THE AMOUNT OF OFF SALENON~INTOXICATING MALT LIQUOR LICENSES TO TEN (10). COUNCIL- MAN SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. COUNCILMAN SCHULDT MOVED TO RESCIND RESOLUTION 82-3, A RESOLUTION DECLARING THE CITY OF ELK RIVER'S POLICY FOR ISSUANCE OF NON-INTOXICATING MALT LIQUOR OFF SALE LICENSES. COUNCILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 3-1. COUNCIL- MAN TOTH OPPOSED. 10~. City Council Meeting Dates Councilman Duitsman suggested that the City Council meeting be held on July 5th if the law permits, and further suggested that the second City Council meeting in August be scheduled for the 4th Monday, rather than the 3rd and that the Planning Commission schedule their meeting for the 5th Monday. COlJNCILMAN DUITSMAN MOVED TO APPROVE THE CITY COUNCIL MEETING DATES AUGUST AS FOLLOWS: JULY 5TH, IF LEGAL, OTHERWISE THE 6TH OF JULY, AUGUST 2ND AND AUGUST 23RD. COUNCILMAN TOTH SECONDED THE MOTION. PASSED 4-0. FOR JULY AND JULY 19TH, THE MOTION 11. Administrator's Update A. Joint Meeting Date with the Planning Commission The City Administrator indicated that the Planning Commission is having some problem regarding their role in City government, specifically in the area of nonconforming uses. The City Administrator suggested that the City Council meet with the Planning Commission and Dave Sellergren, the City Attorney, as well as Zack Johnson, to review the nonconforming use language and what the City Council really wants that ordinance to say. June 29th, 1982, at 7:30 p.m. at the City Hall was established as a meeting date for the City Council and Planning Com- mission joint meeting. B. Mayor and City Administrator Attendance at the Minnesota Star Cities Conference The City Administrator indicated that Mayor Hinkle, Mr. Dick Gongoll and himself attended the Minnesota Star Cities Conference sponsored by the State of Minne- sota for the purpose of helping communities learn how to enhance their community to provide a better business climate. The City Administrator explained that as businesses expressed interest in coming to the State of Minnesota, the cities that have the Star Cities designation are given preference. The City Administra- tor indicated that ways to promote the City were suggest~d and further indicated that a means of promoting the City would take money. The City Administrator in- dicated that he would put together some more specific suggestions to present to the City Council at their first meeting in July. . C. League of Minnesota Cities Annual Meeting Conference The City Administrator indicated that Councilman Schuldt has expressed an in- terest in attending the annual League of Minnesota Cities conference. The City Council Minutes June 7, 1982 Page 8 City Administrator further indicated that he felt it was important that two people should attend the conference and if another councilperson was not in- terested in attending, he would attend the conference with Councilman Schuldt. The City Administrator indicated I that the conference is primarily geared to elected officials and suggested that one of the other councilmen consider attending. Councilman Schuldt iydicated that he felt the conference would be of benefit to him in performing ~is job as a councilperson. Councilman Duitsman indicated that he was not convinxed that two people should have to attend the conference, expecially in a tighr economical year. COUNCILMAN TOTH MOVED TO AUTHORI E COUNCILMAN SCHULDT TO ATTEND THE MINNESOTA LEAGUE OF CITIES CONFERENCE. CO CILMAN DUITSMAN SECONDED THE MOTION. THE MOTION PASSED 4-0. D. Downtown Parkin Lot Cleanu and General Cit Cleanu The Cit. y Administrator ind icated~lthatAk-sar-Ben would be presenting. a plan for sodding, rock, trees and a solut on to the sidewalk problem in the downtown park at a cost of approximately $4,00 . COUNCILMAN DUITSMAN MOVED TO APP OVE THE EXPENDITURE OF UP TO $4,000 FOR THE IMPROVEMENT OF THE DOWNTOWN PARK AREA~ SUBJECT TO APPROVAL OF THE PLAN BY THE CITY ADMINISTRATOR AND COUNCI TOTH. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. The City Administrator indicated project which would involve esta junk and the street department c tendent, three trucks and two tr approximately $1,300. It was th pone the City cleanup project, d E. Date for Review of Fire Code The City Administrator indicated of June, the previously establis City Administrator indicated tha Fire Code be adopted as a starti suggested that the City Council meeting. F. Railroad Crossings Councilman Duitsman indicated th at Main Street and Proctor Avenu ing and suggested that the City Machinsky, and together approach problem. that the estimated cost for a City cleanup lishing a spot for citi~ens to pring their nsisting of three men and the street superin- ctors to haul the junk to the dump, would cost general consensus of the City Council to. post- e to the cost of the project. that Mr. Russ Anderson will be gone on the 14th ed date for the review of the Fire Code. The Mr. Anderson has suggested that the Uniform g point for the City of Elk River, and further eview the Fire Code at the June 21st City Council t the railroad has raised the railroad crossings to the extent that they are not safe for cross- dministrator contact the County Engineer, Russ the Burlington Northern Railroad regarding the G. Discussion of the Size of the Pr ased Planned Unit Development City Council Minutes June 7, 1982 Page 9 Item G., continued Councilman Duitsman suggested that the Council express their thoughts to the Mayor and City Administrator regarding the proposed size of the Barthel Planned Unit Development. Councilman Engstrom indicated that he approved of Gary Santwire's proposal and also felt that both planned unit developments could not go at the same time. Gouncilman Toth indicated that he was comfortable with the size of the proposed planned unit development, but also had some other questions that needed to be answered before making a decision. Councilman Duitsman in- dicated that he was comfortable with the proposed size of the Barthel Planned Unit Development and further expressed his interest in promoting the City to grow. Councilman Schuldt indicated that he has reservations regarding the size of the Barthel Planned Unit Development and the types of Businesses proposed. Councilman Schuldt further indicated that he was not in favor of the issuance of industrial revenue bonds for a project that would just transfer businesses from one location to another. The City Administrator indicated that the public hear- ing for the Barthel Planned Unit Development was scheduled for the June 21st City Council meeting. COUNCILMAN DUITSMAN MOVED TO REQUEST THAT ALL CITY EMPLOYEES SUBMIT AN EXPENSE REPORT FOR REIMBURSEMENT OF EXPENSES BEGINNING JULY 1, 1982. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION PASSED 4-0. 12. Check Register COUNCILMAN SCHULDT MOVED TO APPROVE THE JUNE 7TH, 1982 CHECK REGISTER. COUNCILMAN ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 13. Tentative Agenda The Barthel Planned Unit Development Conditional Use, Gary Santwire ... Barrington Project Industrial Revenue Bonds, Axelson Conditional Use, Fire Code, Broadway Bar Amusement Device Application and Dick's Main Tap Amusement Device Application are all items tentatively scheduled for the June 21st, 1982 City Council meeting. 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, ()J ()/J. . () . ~,_ ~ ~ IJ( )'{./.Vy~~ Phyl ~s BOedighe~ Deputy City Clerk/Treasurer PB:dkk