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
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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.
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May 11, 1998
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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
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Special City Council Meeting
May 11, 1998
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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
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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