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05-11-1998 ERMU MIN - SPECIAL MTG SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, MAY 11, 1998 Members Present: Mayor Duitsman, Councilmembers Dietz, Farber (7:12 p.m.), Holmgren and Thompson Members Absent: None Staff Present: Pat Klaers, City Administrator,Terry Maurer, City Engineer; Peter Beck, City Attorney; Bryan Adams, Municipal Utilities General Manager; Debbie Huebner, Recording Secretary Also Present: County Assessors Ty Bischoff and Jerry Kritzeck; Elk River Municipal Utilities Commissioners George Zabee and Jim Tralle 1. Call Meeting To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council was called to order at 7:10 p.m. by Mayor Duitsman. 2. Consider Agenda COUNCILMEMBER THOMPSON MOVED TO APPROVE•THE MAY 11, 1998, CITY COUNCIL AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider Consent Agenda COUNCILMEMBER HOMGREN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 4/27/98 CITY COUNCIL MINUTES-APPROVED 3.2. 5/4/98 CITY COUNCIL MINUTES-APPROVED 3.3. RESCHEDULE PUBLIC HEARING ON PROPOSED TIF DISTRICT NO. 19- HOHLEN PROJECT - RESOLUTION NO. 98-46 - APPROVED 3.4. AUTHORIZATION TO HIRE SEASONAL EMPLOYEE FOR WWTS DEPARTMENT - APPROVED COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. Councilmember Farber arrived at this time (7:12 p.m.) 4.1. Consider Resolution Approving Front Yard Setback Variance for Art Johnson, Case No. V 98-1 Staff report by Scott Harlicker. Art Johnson has requested a variance to the minimum front yard setback for an accessory structure. This issue was reviewed by the City Council on April 20th and May 4th. At the May 4th City Council Special City Council Meeting May 11, 1998 Page 2 meeting, the Council directed staff to prepare a resolution listing the findings to support granting the variance request. COUNCILMEMBER HOLMGREN MOVED APPROVAL OF RESOLUTION NO. 98-47, GRANTING A VARIANCE FROM THE FRONT YARD SETBACK AS REQUESTED BY ART JOHNSON, CASE NO. V 98-1. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Dietz opposed. 5. Local Board of Review- Continued from 4/30/98 Councilmember Holmgren did not participate in the Board of Review process due to a conflict of interest, as he is employed by the Sherburne County Assessor's office. A. James and Marjorie Anderson - 75-571-0115 (Heritage Landing) COUNCILMEMBER THOMPSON MOVED THAT THERE BE NO CHANGE IN 1998 ASSESSED VALUATION FOR JAMES AND MAJORIE ANDERSON'S PROPERTY - 75-571-0115. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. COUNCILMEMBER HOLMGREN ABSTAINED. B. Scott Flett- 75-480-0124 (Riverview Heights 3rd Addition) Ty Bischoff indicated that an inspection of Mr. Flett's home was done and the County Assessor recommended that the home be depreciated, due to its condition and the need for updating and repairs. COUNCILMEMBER FARBER MOVED TO REDUCE THE ASSESSED VALUATION FOR THE HOME ON PARCEL NO. 75-480-0124 FROM $73,000 TO $59,000 AND THE LAND VALUE TO REMAIN AT THE 1998 ASSESSED VALUATION OF $30,000, FOR A TOTAL ASSESSED VALUATION OF$89,000. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. COUNCILMEMBER HOLMGREN ABSTAINED. C. Kenneth Harell - 75-503-0724 (Brentwood) Ty Bischoff indicated the assessed valuation for Mr. Harell's lot was reduced from $40,000 to $35,000 after discussion at the April 30, 1998 Board of Review meeting. D. Larry Hickman - 75-587-0105 (Furniture and Things - 15612 Jarvis Street Mr. Hickman expressed his objection to the $3,013,400 1998 assessed valuation for the new furniture store on East Highway 10. Jerry Kritzeck explained that the valuation was determined using the Marshall-Swift Building Appraisal guide. The 1998 assessed valuation of the building is $2,863,400 ($28.57 sq. ft.) and land is valued at$150,000. Mr. Kritzeck also referred to the Sworn Construction Statement which reflects the cost of construction to be $2,020,888.50. Discussion followed regarding the market value appraisal by R.A. Fields and Associates. Mr. Hickman indicated the property has been appraised at$3,100,000 including the proposed addition which is not yet built. Discussion followed regarding • Special City Council Meeting May 11, 1998 Page 3 assessed valuations for other discount-type large buildings in Elk River. Mr. Kritzeck indicated the 89,745 sq. ft. Target store was assessed at$30.88 sq. ft. and the 164,640 sq. ft. Menards at$32.98 sq. ft. The Councilmembers discussed adjusting the assessed valuation downward by half the discrepancy amount of approximately$750,000. COUNCILMEMBER DIETZ MOVED THAT THE 1998 ASSESSED VALUE FOR LARRY HICKMAN'S PROPERTY, FURNITURE AND THINGS - 75-587-0105, BE REDUCED BY $375,000. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. COUNCILMEMBER HOLMGREN ABSTAINED. E. Mark Joncas- 75-584-0120 (11966 215th Avenue NW) Ty Bischoff indicated Mr. Joncas's questions were addressed at the April 30, 1998 meeting. Mayor Duitsman closed the Board of Review meeting. 6. Joint Meeting with Utilities Commission Annual Report-The 1997 Elk River Municipal Utilities Annual Report was presented by Bryan Adams, General Manager. Mr. Adams noted that the sprinkling restrictions which were implemented in 1997 will become a permanent regulation during the summer months. Mr. Adams indicated the auditors have advised that the cash fund balance should be in the $1 million range, and currently is approximately$200,000. Discussion followed regarding the use of cash funds to finance projects versus issuing bonds. The Council and Utilities Commissioners also discussed the possibility of combining the water and sewer departments. Elk River Municipal Utilities Eastern Area Participation and Costs - Bryan Adams reviewed the possible financial impacts of the Eastern Area Expansion project on the water and electric departments, as outlined in his memo dated May 3, 1998. Mr. Adams indicated he felt the shortfalls could be met best through a phased in approach rather than doing the entire eastern area at once. Electric Deregulation Issues- Bryan Adams referred the Council to his memo regarding deregulation. The City Council, Utilities Commissioners and staff discussed the impacts this issue may have on Elk River Municipal Utilities. Utility Contribution to City-The Council indicated they were satisfied with the 3 year contribution schedule previously agreed upon. Commissioner Tralle felt the contribution should be reviewed annually due to the changes which may be forthcoming in deregulation. He suggested the contribution be based on kilowatt usage. The Council and staff expressed concern that a year-to-year basis will not allow adequate planning for budget purposes. Utility Contribution to Watermain Lateral Projects-City Engineer Terry Maurer indicated the shortfall in the western area project is due to costs for looping of the lateral watermain to service the Guardian Angels project. Terry explained looping is required to provide adequate water flow for fire protection. • Special City Council Meeting • May 11, 1998 Page 4 Approximately$12,000 of the$50,000 shortfall will be assessed, including an assessment to the Elk Motel and former garage door business property. 7.1. Update on the Timing of the Police Computer Needs and Voice Mail System Police Chief Tom Zerwas explained the Police Department's request to upgrade their computer system. He noted that their request for a 25% match grant is at the "top of the list" and they are hoping to receive between $100,000-$125,000. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE EXPENDITURE OF APPROXIMATELY$10,000 FROM THE COUNCIL CONTINGENCY FUND FOR UPGRADING THE POLICE DEPARTMENT'S COMPUTER SYSTEM BY ADDING FIVE PERSONAL COMPUTERS, AND THAT THE EXPENDITURE BE ADJUSTED TO COME OUT OF THE POLICE DEPARTMENT BUDGET AT THE END OF THE YEAR IF POSSIBLE. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Tom Zerwas indicated he expects the cost for the server and network will be approximately$12,000.00. It was the consensus of the Council to authorize staff to request bids for the computer server and local area network. 7.2. Update of Lake Orono Sedimentation Analysis City Administrator Pat Klaers referred to the memo from Steve Rohlf, indicating they will not know if the required 90,000 cubic yards of sandy material can be obtained until they start digging. 7.3. Update on Cleaning Services for City Facilities City Administrator Pat Klaers indicated that staff supports the approach the cities of Golden Valley and Chanhassen have used to deal with their maintenance and cleaning needs. He explained that these cities hired a building maintenance person for routine interior and exterior building maintenance, snow removal and mechanical system maintenance. General cleaning is done by this employee, if possible, or is contracted out and the cleaning service's performance is overseen by the maintenance person. The building maintenance worker would be under the supervision of the Streets/Parks Department Superintendent. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE ADVERTISEMENT FOR THE POSITION OF BUILDING MAINTENANCE WORKER, AND TO OBTAIN QUOTES FOR GENERAL CLEANING SERVICES. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7.4. Discussion on School Street Improvement Project The Council discussed a proposed project to widen School Street between Jackson and Proctor. Police Chief Tom Zerwas distributed information regarding the number of accidents which have occurred on School Street between Jackson and Proctor from 1996 to the present. The statistics indicate a great majority of the accidents occur during school hours, and usually in the morning just before school starts or in the afternoon at the end of the school day. He felt the widening of School Street to accommodate turning vehicles and re-routing r - 4I Special City Council Meeting May 11, 1998 Page 5 of the buses would greatly reduce the number of accidents. Councilmember Holmgren expressed his concern that the City Council move as quickly as possible to do the project, before a fatality occurs. Discussion followed regarding the school district's participation in the project. By consensus, the following actions were ordered by the City Council: - Preparation of a resolution ordering plans and specifications and calling for a public hearing a project to widen School Street between Jackson and Proctor. - Request the School District for 50%financial participation in the project. - Installation of a sidewalk on the south side of School Street between Jackson and Proctor with assessments for this sidewalk to the south side property owners. 8. Other Business A. City Engineer Terry Maurer distributed information regarding Municipal State Aid funds, the Business Center Drive project, and the Upland Avenue and Highway 10 improvement project. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION NO. 98-48, A RESOLUTION APPROVING AN ADVANCE FOR FINANCING APPROVED MUNICIPAL STATE AID STREET PROJECTS IN THE CITY OF ELK RIVER IN AN AMOUNT UP TO $500,000.00. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER HOLMGREN MOVED TO APPROVE RESOLUTION 98-49, A RESOLUTION ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE BUSINESS CENTER DRIVE STREET AND UTILITY IMPROVEMENTS OF 1998. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER THOMPSON MOVED TO APPROVE THE COOPERATIVE AGREEMENT WITH MN/DOT, SHERBURNE COUNTY, AND THE CITY OF ELK RIVER FOR THE UPLAND AVENUE AND TRUNK HIGHWAY 10 TRAFFIC SIGNAL AND INTERSECTION IMPROVEMENTS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER FARBER MOVED TO APPROVE RESOLUTION NO. 98-50, A RESOLUTION ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE TRAFFIC SIGNAL AND STERET IMPROVEMENT AT THE INTERSECTION OF UPLAND AVENUE AND TRUNK HIGHWAY 10 OF 1998. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 9. Staff Updates A. Resignation of City Planner Pat Klaers distributed a letter of resignation from City Planner, Steve Ach, indicating he has accepted a position with a land development and Special City Council Meeting - May 11, 1998 Page 6 home building company. Mr. Ach's last day of employment with the City of Elk River will be June 5, 1998. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE ADVERTISEMENT FOR THE POSITION OF CITY PLANNER. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 10. Adjournment The meeting was adjourned by Mayor Duitsman at 9:45 p.m. Respectfully submitted, i`V-4-1-474tAp_ei_ Debbie Huebner Recording Secretary