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05-05-1980 CC MIN ~ REGULAR SEMI-MONTHLY MEETING OF THE CITY COUNCIL OF ELK RIVER HELD IN THE ELK RIVER PUBLIC LIBRARY May 5, 1980 Members Present: Mayor Madsen, Councilmembers Otto, Toth, Engstrom, Duitsman. Members Absent: None. 1. The meeting was called to order at 7:30 p.m. by Mayor Madsen. 2. Agenda Item l5F, sealcoat project, Item l5~, road load limits, and Item 15 3/4, Update on the Peterson Addition project were added to the agenda. COUNCIL- MAN DUITSMAN MOVED APPROVAL OF THE MAY 5, 1980, CITY COUNCIL AGENDA. COUNCIL- MAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0. 3. Minutes COUNCILMAN DUITSMAN MOVED APPROVAL OF THE MINUTES OF THE APRIL 21, 1980, CITY COUNCIL MEETING. COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0. 4. Open Mike Mr. David Gow appeared before the City Council requesting information regarding the procedure necessary to obtain a street light at 190th Circle in the School- view Addition. Mayor Madsen suggested he contact the City Administrator for advice on the procedures necessary to $ubmit a request for installation of a street light. 5. Sewer Easement Vacation The City Administrator explained that a sewer easement had been granted in 1941 on the property currently occupied by Dick's Main Tap, and when the sewer line was constructed, it was located in such a place that the easement on Dick's Main Tap property was not affected. The City Administrator indicated that it was the City staff's recommendation to vacate the sewer easement for the property described as the east 30 feet of the west 89 feet of Lot 1, Block 4, Village of Elk River, since it was not necessary for future operation or maintenance of the sewer system. COUNCILMAN OTTO MOVED APPROVAL OF RESOLU- TION 80-4, AUTHORIZING THE VACATION OF THE SEWER EASEMENT ON THE PROPERTY DESCRIBED AS THE EAST 30 FEET OF THE WEST 89 FEET OF LOT 1, BLOCK 4, VILLAGE OF ELK RIVER. COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0. 6. Drainage Easement Vacation The City Administrator explained that a request had been received by Mr. Gary Santwire to vacate a drainage easement on Lot 17, Block 4, Ridgewood East Third Addition. The City Administrator indicated the easement covers the south 100 feet of Lot 17, and further indicated City staff could find no reason for the City to retain 100 feet of drainage easement, and there- fore, recommended vacating all but the southerly 10 feet and easterly 10 feet of the drainage easement on Lot 17, Block 4, Ridgewood East Third Addi- tion. COUNCILMA~ DUITSMAN MOVED APPROVAL OF RESOLUTION 80-5, AUTHORIZING THE VACATION OF A DRAINAGE EASEMENT ON LOT 17, BLOCK 4, RIDGEWOOD EAST THIRD ADDITION, CITY OF ELK RIVER. COUNCILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 4-0. May 5, 1980 Page 2 ~ 7. TachenyConditionalUsePermit The City Administrator indicated that the Planning Commission had unanimously approved the conditional use permit for Mr. Robert Tacheny to operate a small business repairing glass windows and screen windows in his home at 11922 191st Avenue N.W. in the Schoolview Addition. The City Administrator further indicated the conditional use permit was consistent with all applicable rules and regulations in the City of Elk River, and therefore, recommended approval of the conditional use permit. COUNCILMAN ENGSTROM MOVED APPROVAL OF THE CONDITIONAL USE PERMIT REQUESTED BY MR. ROBERT TACHENY TO OPERATE A SMALL BUSINESS IN HIS HOME AT 11922 1915T AVENUE N.W. COUNCILMAN OTTO SECONDED THE MOTION. MOTION PASSED 4~0. 8. Orono Dam Public Hearing Mayor Madsen opened the public hearing on the Orono Dam and explained that the bids received for the rehabilitation of the dam were considerably higher than the engineer's estimate and asked that anyone interested in addressing the engineer, Jim Schneider of CH2M Hill, regarding the construction of the project could do so at this time. Mr. Jim Schneider, engineer, CH2M Hill, indicated the bids received ranged from a low of $876,630 to the high of $1,245,480. Mr. Schneider indicated the spread between the high and low bid was approximately 20% and approximately 34% over the engineer's estimate. Mr. Schneider explained there were three reasons for the variation in the engineer's estimate and the low bid. 1. A mistake in the structural steel estimate. 2. The engineer's estimate of the booster pumps was too low. 3. The engineer's estimate of the granular fill was too low. Mr. Schneider indicated that in consideration of the errors made by the engineers the revised engineer's estimate would be $733,500 rather than the $651,000 originally estimated. Mr. Schneider indicated that in speaking with the four low bidders, their primary concern was the care of the water down stream and the sheet piling for the project. Mr. Schneider said that there were two possible options to take: 1. Redesign the project to reduce the construction costs of the project, but this would run into additional costs in redesign, rebidding, winter construction costs, and still no real guarantee that the bids would be lower. 2. Award the bid to the low bidder and issue possible change orders for costs that could be cut during construction; for example, the possibility that the overhead utility wires may not have to be relocated and the possibility that the City staff could install the fencing. It was Mr. Schneider's recommendation that the City Council accept the low bid of $876,630 and award the contract to Acton Construction. The following residents appeared before the City Council with concerns of the Orono Dam rehabilitation project: Mr. and Mrs. Harry Kreuser, Mr. Jerry Palmer, Mr. Ken Parker, Mr. Bill Webb, Mr. Tom Hartman, Ms. Carmen Rosenthal, Mr. Joe Bailey, Mr. David Hallgren, Mr. Art Bailey, Mr. Jack Hoyn, Ms. Judy Hallgren, Mr. Vern Lundberg, Mr. John Herzog, and Mr. Jack Klein. The primary concern of the area residents was the higher cost of the project and how it would affect them. Other concerns included if during construction the project May 5~ 1980 Page 3 ~ were flooded, who would pay necessary costs, was the engineer's fee a per- centage of the project, what was to be received from the HUD grant, and what from the DNR. The City Administrator reviewed the available funding and expenditures for the project as follows: $913,000 was ~urrent1y planned for and available to fund the repairs with $225,000 to be received from HUD and the balance of $688,000 to be divided between the DNR and the City. The City's share was planned to be composed of $115,000 from the Elk River Utilities, $40,000 from the lake owners, and the balance of $189,000 to be assessed. The City Administrator reviewed the current actual cost of the contract as follows: the base bid $876,630, the gate contract $66,000, engineering $121,000, for a total of $1,063,630, of. which approximately $50,000 could be cut in construction change orders leaving the total project at approximately $1,013,000. The City Administrator indicated with the new projected costs of the project to be $1.013,000 that would leave a balance of $289,000 to be assessed citywide, subject to Council review and alteration at the assessment hearing. Some discussion was carried on regarding the cost of tearing down the dam and doing nothing about the rehabilitation and who would pay for the costs of eliminating the dam. Mr. Schneider indicated the cost of tearing down the project would now be approximately $357,000. Mr. Jack Hoyn asked if it was possible to go back to the state and renegotiate the amount of the grant. Mayor Madsen indicated the grant was funded by a specific bill for the Orono Dam and four others, appropriated by the legis- lature. Discussion was carried on between the lake owners as to how the $40,000 would be assessed to each property owner, and how much benefit the property owners would receive from the rehabilitation of the dam. Further discussion was carried on regarding the cost assessed over the entire city, how the funds would be raised through a bond sale, and when the project would start and when it would be completed. Mayor Madsen indicated he felt the project needed to be done and soon, as costs were continually increasing, it would be a tight schedule to complete before winter,- and further indicated it would cost over $300,000 to dispose of the dam. COUNCILMAN TOTH MOVED APPROVAL OF RESOLUTION 80-6, APPROVING THE PLANS AND _S~~CIFICATIONS OF THE LAKE ORONO DAM R~HABILITATION AND ORDERING THE.IMPROVEMENT. COUNCILMAN DUITSMAN SECONDED THE MOTION. MOTION PASSED 4-0. 9. Orono DarilBid Award COUNCILMAN ENGSTROM MOVED APPROVAL OF RESOLUTION 80-7, ACCEPTING THE BIDS FO.RTHE LAKE ORONO DAM REHABILITATION AND AWARDING THE CONTRACT TO THE LOW BIDDER, ACTON CONSTRUCTION, FOR.$876,630. COUNCILMAN TOTH SECONDED THE MOTION; MOTIONPASSED4~0. 10. Sale of Hydro Generation Equipment The City Administrator indicated one proposal had been received in the amount of $2,500.00 for the purchase of the hydro equipment from the Orono Dam power house to be removed at the buyer's expense. The City Administrator further indicated that another proposal for considerably more money was expected within the next day and, therefore, recommended the City Council not take May 5, 1980 Page 4 " action at, this time regarding the sale of the hydro electric generating equipment. COUNCILMAN OTTO MOVED TO TABLE THE SALE OF THE HYDRO ELECTRIC GENERATING EQVIPMENT UNTIL THE NEXT SCHEDULED CITY COUNCIL MEETING. COUNCILMAN DUITSMAN SECONDED THE MOTION; MOTION PASSED 4~0. 11. Menkve1d Conditional Use Permit The City Administrator indicated the Planning Conunission had conducted a public hearing regarding the conditional use permit applied for by G. M. Investment Co. to operate a used car and truck sales lot at 15530 Hwy. 10 ip. the City of Elk River. The City Administrator further indicated that one individual appeared at the public hearing in opposition of the conditional use permit with concerns of aesthetic appearance of the proposed business and the existing accumulation of junk and trash on the site. The City Administrator indicated the Planning Conunission's action was to unanimously deny the request for a conditional use permit. Councilman Toth asked what could be done about the cleaning up of the cars and the junk if the condi- tional use was denied. The City Administrator indicated that the owner of the property would be informed of the City Council's action and then be requested to. move the vehicles and clean up the area. Legal action would follow if the City's request was not obeyed. COUNCILMAN TOTH MOVED TO DENY THE REQUEST FOR A CONDITIONAL USE PERMIT TO THE G. M. INVESTMENT CO. AND TO CONCUR WITH FINDINGS STATED IN A MEMO FROM THE CITY ADMINISTRATOR TO THE MAYOR AND CITY COUNCIL DATED MAY 1, 1980. COUNCILMAN DUITSMAN SECONDED THE MOTION. MOTION PASSED 4~0. 12. Acton Pay Estimate Mayor Madsen indicated the City engineers, McCombs-Knutson, had recommended approval of the final pay estimate of $20,526.64 to Acton Construction for the construction of the Wastewater Treatment Plan. Councilman Toth asked how much was yet to be received from the state and federal government on the project. The City Administrator indicated approximately $45,000 was left to be received from the grants for the project. COUNCILMAN OTTO MOVED APPROVAL OF THE FINAL PAY ESTIMATE OF $20,526.64 TO ACTON CONSTRUCTION FOR THE.CONSTRUCTION.OF.THE WASTEWATER.TREATMENT.PLANT. COUNCILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 4-0. 13. Legion Gambling License Councilman Otto asked if this application was their second application and also what type of gambling devices were to be used. The City Administrator indicated the license application was for gambling devices called pull tabs for the year 1980. COUNCILMAN DUITSMAN MOVED APPROVAL OF THE GAMBLING LICENSE APPLICATION BY THE AMERICAN LEGION POST 112 WITH THE CONDITION THAT THE LICENSE COMPLIES WITH STATE STATUTE. COUNCILMAN OTTO SECONDED THE MOTION;MOTIONPASSED4~0. 14.1' Appointment of Police Chief The City Administrator indicated the Public Safe.ty~Gomtnittee had reviewed approximately 55 applications for the Police Chief position and had selected six applicants for personal interviews, and further indicated that three of the six applicants were actually interviewed. The City Administrator indi- cated it was the recommendation of the Public Safety conunittee to appoint Tom Zerwas as Police Chief. COUNCILMAN DUITSMAN MOVED APPROVAL OF THE APPOINTMENT OF TOMZERWAS AS POLICE CHIEF. COUNCILMAN TOTH SECONDED THE MOTION. MOTIONPASSED4~0. May 5, 1980 Page 5 15. Administrator's Update A. Sewer Interceptor Mr. Skip McCombs, of McCombs-Knutson, appeared before the City Council to answer questions the Council may have regarding the eligibility of funding of the sewer interceptor from the PCA and EPA. General dis- cussion WqS carried on regarding the portion of the interceptor the funding would cover, when the funding would be available, and what portion of the sewer interceptor the City would agree to construct. It was the recommendation of Mr. Skip McCombs that the City submit two letters to the MN Pollution Control Agency, one to request the Elk River interceptor system be placed on the 1981 Needs List for grant funding, and the other letter a commitment from the City that the City would construct the proposed interceptor line past the Industrial Park in accordance with the proposed plan at a later date and asking that the initial phase be allowed to stop at the Industrial Park. COUNCIL- MAN DUITSMAN MOVED TO AUTHORIZE THE CITY ADMINISTRATOR TO SUBMIT A LETTER TO THE PCA REQUESTING THE CITY OF ELK RIVER TO BE PLACED ON THE 1981 NEEDS LIST FOR GRANT FUNDING .FOR THE SEWER INTERCEPTOR. COUNCIL- MAN TOTHSECONDED THE MOTION. MOTION PASSED 4-0. COUNCILMAN DUITSMAN MOVED TO AUtHORIZE THE CITY ADMINISTRATOR TO SEND A LETTER TO THE PCA REGARDING THE CITY'S COMMITMENT TO CONTINUE THE SEWER INTERCEPTOR AS PROPOSED. COUNCILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 4-0. B. Downtown Development, HRA Creation The City Administrator indicated he had met with the City attorney to discuss the creation of a Housing and Redevelopment Authority for the City of Elk River, and further indicated a Housing and Redevelopment Authority could be created within a 30-60 day period with the following steps' involved: 1. City Council conducting public hearings regarding the formation of a Housing.and Redevelopment Authority and adopt a resolution making certain findings relative to the need for Housing and Redevelopment Authority. 2. The resolution adopted by the City Council is filed with the State Housing Commissioner and the State Planning Agency. 3. The City Council approve articles of incorporation and by-laws for the Housing and Redevelopment Authority. 4. The Mayor appoint five Housing and Redevelopment Authority commis- sioners subject to the review and confirmation of the remainder of the City Council. The City Administrator indicated that if the Mayor appointed the City Council to serve on the five member board rather than appoint a mixture of Council and private individuals, an. alternate solution for input by the downtown businesses would be to appoint an advisory committee com- posed of members of the private sector. Mr. Dave Sellergren, City Attorney, WaS present to answer questions regarding the creation of a Housing and Redevelopment Authority. Councilman Otto asked if the board was a policy making body, how it affected the Planning Commission, how the members were appointed and for what terms. Mr. Dave Sellergren indicated the members were appointed by the Mayor to be coterminous with the City Council terms, and further indicated the Housing and Redevelopment Authority was a policy making body capable of condemning land, selling bonds, selecting May 5~ 1980 Page 6 ~ developers and also capable of imposing a mill levy of up to 1/3 of the mill. Mr. Dave Sellergren also indicated the Housing and Redevelop- ment Authority would have to go through the Planning Commission with their projects, but that the Planning Commission could not veto the project. Mr. Ken Parker, representative of the Downtown Task Force Committee, indicated the Task Force Committee recommended two people from the private sector be appointed to the board, but if the City Council chose not to do so, the .Task Force Committee supported the appointment of an advisory committee. The City Administrator indicated the major concerns of the Downtown Development Task Force committee were to provide input into the Housing and Redevelopment Authority, and a fear that the Housing and Redevelopment Authority may become a politically motivated body. The Task Force members felt that appoint- ment of private sector individuals to the Housing and Redevelopment Authority would provide nonpolitical stability. Councilman Duitsman expressed his concern that the City Council should be actively involved in the Housing and Redevelopment Authority. Councilman Otto expressed his concern that the City Council was involved with many other projects of the City and recommended the Housing and Redevelopment Authority board consist of all noncouncil people. Mayor Madsen suggested the City Council consider the alternative and the appointment of a Housing and Redevelopment Authority board would be again discussed at a later date. C. City Code Mr. Dave Sellergren indicated the City codification became much more of a project than anticipated, and therefore, the cost is approximately $4,000 over estimate, and further indicated that the cost could go higher, depending on changes necessary due to public hearings. Mayor Madsen indicated the codification must be finished and might be paid for from the contingency fund. COUNCILMAN OTTO MOVED APPROVAL OF THE ADDITIONAL COSTS FOR THE CODIFICATION TO BE PAID AT THE END OF THE CURRENT YEAR FROM THE CONTINGENCY FUND, UNLESS IT WAS FOUND NECESSARY TO BUDGET FOR CODIFICATION COSTS LN THE 1981 BUDGET AS A RESULT OF INSUFFICIENT GENERAL FUNDS. COUNCILMAN ENGSTROM SECONDED THE MOTION. MOTION PASSED 4-0. D. Minnesota Managers' Seminar May 7-9 The City Administrator indicated he would be attending the Minnesota Managers' Seminar May 7-9 at Brainerd, MN, and further indicated he would be co-leading a session on budget preparation. E. LAWCON Grant The City Administrator indicated he had been working with the City planner, Zack Johnson, gathering information for submission of an application for LAWCON grants and had discovered the owner of the bog, a potential park site project, was not interested in selling part of the property for a park. The City Administrator further indicated that, in gathering in- formation for a grant to develop the old dump site, it was found that LAWCON funding has been severely restricted and the City would need approximately $8,000 of in-kinp match or cash in order to get a grant. It was the City Administrator's recommendation that the City Council not endorse submission of a LAWCON grant application in calendar year 1980 for 1981. It was the concensus of the City Council not to pursue LAWCON grants in calendar year 1981. May 5, 1980 Page 7 ~ F. Sea1coat The City Administrator indicated the Street Superintendent had received a letter from the City's engineers, McCombs-Knutson, listing the most urgent priorities for street sealcoat and a list of the streets with the least urgent priorities along with the estimated costs for the work. Also included in the letter was a list of streets needing more than a seal coat and suggested means for repairing these streets. The Adminis- trator asked for Council comments on the list between this and the next Council meeting. 15~. Road Load Limits The City Administrator indicated that it was recommended by the Street Super- intendent that a 7 ton load limit be placed on Fillmore and 175th Streets to eliminate the heavy gravel trucks from traveling that road and causing damage. COUNCILMAN OTTO MOVED APPROVAL OF THE 7 TON LOAD LIMITS TO BE PLACED ON FILLMORE AND 175TH STREETS. COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0. 15 3/4. Peterson Addition Update The City Administrator indicated the project was to be fine graded within the next week and then blacktopped as soon as the contractor's schedule would allow. 16. Check Register COUNCILMAN.OTTO MOVED APPROVAL OF THE CHECK REGISTER. COUNCILMAN ENGSTROM SECONDED.THE MOTION. MOTION.PASSED4-0. 17. Tentative Agenda The downtown parking problem, creation of a Housing and Redevelopment Authority, and the sale of the hydro units are items tentatively scheduled for the May 19, 1980, City Council meeting. There being no further business, COUNCILMAN OTTO MOVED THAT THE MEETING BE ADJOURNED. COUNCILMAN TOTH SECONDED THE MOTION. MOTION PASSED 4-0. Respectfully Submitted, Q~1L~~~ Phyllis Boedigheimer Deputy City Clerk/Treasurer PB:ab