05-09-2005 CC MIN
.
.
.
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 9, 2005
Members Present:
Mayor Klinzing, Councilmembers Dietz, Farber, Gumphrey, and Motin
Members Absent:
None
Staff Present:
City Administrator Pat Klaers, Director of Economic Development
Catherine Mehelich, Assistant Director of Economic Development Heidi
Steinmetz, City Engineer Terry Maurer, Planning Director Michele
McPherson, Finance and Administration Services Director Lori Johnson,
and City Clerk Joan Schmidt
BRA Members:
Louise Kuester, Jean Lieser, Larry Toth, and Stewart Wilson
Others Present:
Bill Helliwell, Tom LaSalle, and Anita Lancello form the YMCA; Greg
Albrecht of Sathe Executive Search
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called
to order at 6:30 p.m. by Mayor Klinzing.
2.
Consider 5/9/2005 Agenda
Mayor Klinzing added to the agenda the receiving of information from Mary Edwards.
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER MOTIN TO APPROVE THE AGENDA AS AMENDED.
MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILEMBER GUMPHREY TO APPROVE THE FOLLOWING CONSENT
AGENDA ITEMS:
3.1. APRIL 25, 2005 BOARD OF APPEAL AND EQUALIZATION MINUTES
3.2. AUTHORIZATION TO PURCHASE PICNIC SHELTERS FOR YAC
AND TROUT BROOK PARK FROM ICON SHELTER SYSTEMS INC.
AT A COST OF $24,728
3.3. CONSIDER RESOLUTION ACKNOWLEDGING CONTRIBUTION
FROM GREAT RIVER ENERGY.
MOTION CARRIED 5-0.
4.
Open Mike
Majdi Almadien who leases space at Jackson's Shop to sell tobacco asked that his tobacco
license be extended. The Council did not wish to place this item on another part of the
.
.
.
City Council Minutes
May 9, 2005
Page 2
agenda for formal action. The Council in the past had directed that taxes be paid or the
license be revoked.
Mary Edwards from Fairview Services gave an update regarding the hospital to be built in
Maple Grove and the status of the legislation. There are three groups vying to build at this
location and the House currently has selected North Memorial Hospital.
5. Worksession
5.1. Council Open Forum
There were no items presented for discussion.
5.2. Discuss HRA's Redevelopment Concept/Narrative Description for North of Highway 10
Assistant Director of Economic Development Heidi Steinmetz explained that the HRA
wished to have input from the City Council in regards to the redevelopment concept and
narrative description for the downtown area north of Highway 10.
Chair Wilson stated that when they learned about Arrow Building Center vacating their
building, that started the HRA talking about redevelopment possibilities in this part of the
city. They decided to start along J ackson Avenue.
Councilmember Gumphrey inquired as to what uses the Mixed Use area would include.
Chair Wilson stated Mixed Use could include retail, office, or housing and that this decision
was a struggle especially along Jackson. Commissioner Motin stated that the HRA is
showing Single Family Rehab on the west side of Irving and not sure if this will allow the
Mixed Use portion to be viable, there may be parking issues, and it may need more space.
Councilmember Farber was concerned about the small lots along Jackson and felt that the
Mixed Use Area should be extended to Irving. Commissioner Toth stated that the
commissioners realize the lots are small and he had concerns with Irving and felt it was
advantageous to have commercial in the backyard of homeowners rather than the
homeowners along Irving having it in their front yard. There is also a sewer line that runs
under the alley.
Mayor Klinzing inquired about townhouses and would they be included in Mixed Use.
Chair Wilson stated that townhomes would not be in this area. Perhaps houses and retail
along Jackson; in the south more Office Retail.
Mayor Klinzing inquired if they had decided on higher density between Irving and Freeport.
Mr. Wilson stated that the HRA decided that the integrity of that neighborhood should stay
in place as a Single Family area and requested input on higher density housing for the area
along the west side of Irving.
Commissioner Kuester stated that traffic patterns are very crucial.
Mayor Klinzing stated that she was envisioning this area being developed much the same as
the redevelopment being done in the City of Big Lake (around the church where old homes
were tom down and row townhouses built).
Mayor Klinzing expressed concerns of Mixed Use along Jackson to be limiting.
.
.
.
City Council :Minutes
May 9, 2005
Page 3
Councilmember Farber inquired if twin homes could be considered in the Mixed Use.
Mayor Klinzing inquired about the houses that are now up for sale and is there a financial
vehicle in place to obtain or hold these properties and why this hasn't been done.
Director of Economic Development Catherine Mehelich stated that she felt the reason the
HRA hasn't pursued acquisition was financial. Also, the HRA has discussed a general policy
in whether the HRA wants to be in front of a redevelopment or work with the private sector
in encouraging them to consider this area for redevelopment. The developer would
undertake those initial costs of acquisition and negotiate the best they can similar to what the
HRA has done on the south side for the MetroPlains development. The HRA has decided
to wait and to encourage discussions among developers for opportunities for that area.
Councilmember Farber stated that he feels we should take a more aggressive approach to
buy properties that are up for sale with the possibility of putting a project together.
Councilmember Morin stated that he felt we should float the ideas first, let the market take
over with the hope the developers would work with uS first rather than the HRA buying up
the properties now. If it looks like it is going nowhere, we can move into that mode. Part of
the reason is that we are still recovering from the other part of the downtown area.
Hopefully enthusiasm will catch on for this part of north downtown and if it doesn't then
the HRA can take action at that point.
Mayor Klinzing stated that she was recently asked about parking for businesses that are
going into homes on Jackson and the east side of Main, whether there is leniency on parking
requirements. She stated that she would like uS to find a program that would allow the City
to buy these properties. She suggested looking at Small City grants.
Chair Wilson stated that the HRA is in agreement but wishes to have a plan or concept to
work from. He is glad that the Council is in agreement and wishes to have the HRA make
this happen.
Ms. Mehelich asked for discussion of other priority areas such as the potential of relocation
of the post office and the Arrow Building Center area.
Mayor Klinzing feels there is a lack of commercial in the city and feels there is more
potential for commercial development in the city and if we have an extension of downtown
that can be used for commercial uses, she feels this should be pursued.
Commissioner Toth stated that he feels the main area is from the gas station down to the
post office which is somewhat blighted but could be made to compliment the downtown
area. His hope is that something would develop there prior to some of these other areas.
Ms. Mehelich stated that we have not received a lot of interest in the north side of
downtown. She feels that marketwise that area will be the biggest challenge. She stated that we could have HRA acquire some of these properties, market it, and felt that the homes on
the eastside of Main Street would go first because of their proximity to highly visible
corridors.
.
.
.
City Council Minutes
May 9, 2005
Page 4
Commissioner T oth inquired as to how much BRA is allowed to spend. Chair Wilson
stated that we have a limited amount of money annually to spend and will have to figure out
a way to acquire and pay for these properties.
Ms. Mehelich stated that we could add this to the action steps that the BRA can be working
on which is identifying financial resources and identifying resources for the single family
rehabilitation portion and defining and taking small action steps on some of these priority
areas.
5.3. East Elk River Urban Service District
City Administrator Pat Klaers reviewed his memo regarding (1) the County Road 40
Improvement Project; (2) the need for a City Council policy decision on the possible
expansion of the Urban Service Area east of County Road 40 from County Road 12 on the
south to County Road 31 on the north; and (3) the expansion of utilities into this same area.
City Engineer Terry Maurer explained that if the City Council believes that it is a matter of
when this area should be brought into the Urban Service Area and not necessarily a question
of ifit should be brought into the area, then a number of issues need to be seriously
considered. These issues consist of: the Middle School site; County Road 40 right-of-way;
County Road 40 financing; no townhomes to be built; trunk sewer and water assessments;
development timing; River Park infrastructure sizing; and Waste Water Treatment Plant
capacity.
Mr. Klaers stated that the timing of 2008 for housing construction is good because of
staffmg levels. Another key factor in moving forward with a policy change and this
development concept is the issue of a schooL The school gets a free site and provides some
city recreational opportunities. Staff requested feedback if Council felt we are going in the
right direction.
Councilmember Dietz asked how this affects the people in the south half of the area. Mr.
Maurer stated that the timing of their development will be dependent on the development to
the west bringing sewer and water to them. He suggested that when the City does an
assessment along County Road 40 for future road improvements, that the owners will be
assessed with a portion of the assessment deferred until urban development.
Councilmember Dietz asked if the owners of the individual lots are aware it may be awhile
before utilities come through. Michele McPherson stated that she has told the owners that
sewer and water has to go through River Park first and that it will not be immediate to their
property. She feels they are interested in marketing their properties to someone else to
develop.
Councilmember Dietz inquired if the City is locked in if the Council approves this concept.
Mr. Klaers stated that the plat is considered on its own merits at a later date; but the
requirements listed in his memo are needed to be agreed to for this property to come into
the Urban Service District.
City Attorney Beck stated that the terms and conditions outlined in the memo would be the
conditions to bring this property into the Urban Service Area. He stated that one thing to
consider if we move ahead and actually put this into the Urban Service Area would be to
process a rezoning into PUD at the same time and this would require concept plans so we
.
.
.
City Council Minutes
May 9, 2005
Page 5
could get some certainty both ways. For instance to our benefit we would lock in the timing
so we can't be forced in the future to push utilities out there earlier, we would lock in the
school site, and then approve some general parameters for the number of lots, sizes, etc. but
a plat would still get processed and there would still be discretion for changes to end up with
the best project possible. That kind of approach would give the developer more certainty as
he decides whether to make an investment and move forward and it would give the City
protection against a situation where we have put this area into the Urban Service Area but it
may be awhile before we can extend the utilities.
Councilmember Motin stated that it's not a matter of if but when and personally he is not in
favor of adding this area to the Urban Service District but that we need to look at what's the
best for the long term planning of the City. He stated he is concerned about the Cargill
Industrial area and that ultimately we may need to expand the sewer capacity. He stated he
would like to see maintaining lots at 14,000 square feet.
Councilmember Farber stated that he feels it is not if but when also and he feels that the
owners wish to get the most out of that area. He feels the present owners realize they can
no longer have hobby farms with all the development around them. He feels we're on the
right track.
Mayor Klinzing stated she would like the city to pressure Sherburne County to provide four
lanes on Twin Lakes Road (CR13) and to widen CR12. She feels we need to press the point
of increasing the capacity of both CR12 and CR13. She feels this development is a win, win,
win situation and it will come together.
Councilmember Gumphrey feels that this should have been part of the Comprehensive Plan,
that we need to move forward and make this happen, and he agrees with the larger lots.
Councilmember Motin inquired if the utilities can be brought into the properties south of
Holzeim if the Foster property doesn't get developed. Mr. Maurer stated that he feels there
are possibilities to bring utilities down from the north to serve the areas to the south.
Councilmember Dietz inquired of Dr. Ron Bratlie, Director of Special Projects ISD
#728, if the building of a middle school on this property has been discussed by the school
board. Councilmember Dietz requested that the City Council be given something in writing
from the School Board regarding this issue. He feels Council needs to know if the school
board members support this. Dr. Bratlie stated that will be done.
The Mayor recessed the meeting at 7:57 p.m. The meeting reconvened at 8:08 p.m.
5.4. YMCA
Chair of the Northstar YMCA Community Board Bill Helliwell, YMCA staff member Anita
Lancello, and Tom LaSalle who works with new developments for the YMCA, discussed the
status of the YMCA project.
Mr. Helliwell stated that the need for the YMCA is here. The membership provides dollars
for programs. He stated that studies done for this community shows enough potential for
membership but not enough for the YMCA to raise capital funds. They would like to see
the City and the County work together to provide a Y for this area. If the Council agrees to
this philosophy, the Y has volunteers to help but they cannot do it by themselves.
.
.
.
City Council Minutes
May 9, 2005
Page 6
Mr. LaSalle stated that they can look at how deep the social services go and structuring of
the program and building. Often the services/programs cost more than they provide but it
is part of the hosting of the Y. He stated that what is making the Y a success in the cities is
the City providing land and waiving fees, and it is an alternative to the community center.
The Y can't meet the total cost of the bricks and mortar. He would like to have a
partnership with the City, a fund raiser, and also work with the County.
Councilmember Gumphrey feels we need to have someone step up to the plate and get this
going. It could cost millions of dollars. He is willing to be that person.
Mr. LaSalle stated that if the Council has this type of commitment, his staff needs to look at
what is needed for this community, work with the County, and then put a dollar amount
together.
Councilmember Gumphrey would like to see the site go back over to the County as
discussed years ago.
Councilmember Motin asked if use of the facility is still mostly by kids. Ms. Lancello stated
that 65 percent is family mix at the suburban sites. She stated that they work out of the
schools in many communities.
Councilmember Motin stated he is not in favor of this being a community type issue and
would like to see a matching type of funds with the City, for instance, paying 25 percent; the
County paying 25 percent and the Y coming up with 50 percent. He questions the viability
of the whole plan.
Ms. Lancello stated that they know that if they can get this building built, the support to use
the facility is here. The marketing study revealed that people will use it but the corporate
commitment to build was not here.
Mr. LaSalle stated that if the Council feels this is something that the community would
support, they can work on putting information together. He felt they need to re-scope the
project.
MOVED BY COUNCILMEMBER GUMPHREY TO HAVE THE CITY MATCH
ONE-THIRD OF THE FUNDS TO THE YMCA, NOT TO EXCEED
$3,000,000.00, WITH THE YMCA COMING UP WITH WAYS FOR THE
REMAINING TWO-THIRDS.
After further discussion COUNCILMEMBER GUMPHREY WITHDREW HIS
MOTION.
It was the consensus of the Council to direct staff to investigate where the City could come
up with funding for the YMCA.
5.5. Community Development Director Executive Search Firm Update
Greg Albrecht of Sathe Executive Search discussed the compiled qualifications survey,
sample salary survey, and tentative timetable for the Community Development Directorsposition.
He asked to have consensus on items #1, 10, 13, 15, and 16.
.
.
.
City Council Minutes
May 9, 2005
Page 7
Mayor Klinzing felt that for #1 if this was important then individuals from inside the City
would not be able to apply for this position. Some of the Councilmembers stated that this is
only one factor. Councilmember Farber changed his number to agree with the Mayor.
Mr. Albrecht stated that not every candidate will have all of these qualifications. This is one
of many factors.
Councilmember Farber stated he would like to see less importance placed on this
qualification. Councilmember Gumphrey was willing to move his score down to 41/2.
For item 10, "PK" and "PM" agreed to a score of 6 after the word "public" was removed.
For item 13, "PK" agreed to a score of 4.
For item 15, "SK" agreed to a score of 5. Mr. Albrecht removed the word "programs" and
"PM" agreed to a score of 10.
For item 16, Mayor Klinzing again felt this could eliminate some of the internal candidates.
It was explained that again this is only one factor. Not every candidate will meet every
qualification that everyone wants and we will have to meet in the middle along the way.
Mr. Albrecht asked about the salary range. He stated that he would recommend looking at a
range of $70,000 to $90,000.
Mr. Klaers stated that most of the people we have hired recently have come in at the top of
the range and some have taken a pay cut. He stated that we look at being as conservative as
possible in setting the starting pay. He stated we will have a comp worth issue coming back
to Council in July and he felt the recommendation will be to increase salaries 1.8 to 2 percent
without including the building inspectors.
Council suggested a pay range of $75,000 to $85,000 for this position.
Finance and Administration Services Director Lori Johnson stated that Sathe Executive
Search has looked at different cities than the Personnel Committee uses for wage
comparisons. The Personnel Committee looks at growth cities similar to ours and
comparable in population. She stated that this didn't appear to be a true comparison
because we are not comparing the same cities.
Mr. Klaers wished to clarify the time frame. He stated that the information on the top ten
candidates, remaining nameless, will be given to Council for their review for the June 6
meeting; at the June 20 meeting, Mr. Albrecht will have the names of the top 2 or 3
candidates to be considered; and these top 2 or 3 candidates will be interviewed by Council
on June 27 at a Special Meeting.
6. Other Business
None
.
.
.
City Council Minutes
May 9, 2005
Page 8
7.
Staff Updates
None
8. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 9:30 p.m.
(~~
U Schmidt,
City Clerk