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11-14-1994 ERMU MIN JOINT JOINT MEETING OF THE ELK RIVER CITY COUNCIL • AND THE ELK RIVER UTILITIES COMMISSION HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 14, 1994 Councilmembers Present: Mayor Duitsman, Councilmembers Dietz,Scheel, Farber, and Holmgren Commission Members Present: Commissioners Tralle,Simpson,and Zabee Utilities Staff Members Present: Bill Birrenkott and Glenn Sundeen Members Absent: None Staff Present: Pat Klaers, City Administrator; Bill Rubin, Economic Development Coordinator;Sandy Thackeray, City Clerk; Lori Johnson, Finance Director;Terry Maurer, City Engineer; Peter Beck, City Attorney;Steve Ach, City Planner 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 5:30 p.m. by Mayor Duitsman. 2. Consider 11/14/94 Council Agenda Item 3 was moved to Item 6.1, and added to the agenda was Item 5.b., Request for extended hours by Barbarossa. Mayor Duitsman indicated he would like to add item 8.2, "Discussion on Pending litigation of Bud Houlton Property," to the Executive Session of the City Council COUNCILMEMBER FARBER MOVED TO APPROVE THE 11/14/94 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Joint Meeting with the Utilities Commission Utilities Cash Contribution to the General Fund - City Administrator Pat Klaers presented the past history of the cash contributions from the Utilities Commission to the City of Elk River's general fund. Finance Director Lori Johnson reviewed cash contribution amounts from electric utilities in other cities. She indicated that out of four cities surveyed, 7.3 percent to 10 percent of the gross sales was contributed to the city's general fund from the municipal utilities. • Elk River City Council Special Meeting Page 2 November 14, 1994 III enterprise Tralle questioned whether the Utilities was supposed to be an enterprise fund. He stated that one third of the people in Elk River do not pay into the electric utility fund and did not feel it would be fair to use the Utility fund as an enterprise fund. Commissioner Zabee stated that he was not opposed to giving money to the City of Elk River, but was unsure as to how much should be given. Discussion was held regarding the amount of funds annually available in the Elk River Utilities electrical fund. The Commissioners indicated that available funds are planned to be used for the growth and expansion of the electrical utility. Mayor Duitsman indicated that the City of Elk River is requesting the Elk River Utilities to consider assistance in funding of the front end loader. He further indicated that he is not in favor of the Utilities doing any more than they are presently doing for the City of Elk River. Commissioner Tra11e indicated that he felt it would be best for the City to request funds on an as needed basis as opposed to a percentage of the gross sales. Commissioner Simpson concurred with Commissioner Tralle in that it may be detrimental for the City to request a percentage of the Utilities gross sales. Commissioner Simpson suggested that the City consider a three year time limit if the City wishes to proceed in this fashion. He indicated that after three years the City can re-evaluate the percentage from the Utilities. Ill COUNCILMEMBER HOLMGREN MOVED TO REQUEST 3 PERCENT OF THE GROSS REVENUE FROM THE ELK RIVER UTILITIES ANNUALLY BE PAID TO THE CITY FOR A THREE YEAR PERIOD STARTING IN 1995 WITH THE UNDERSTANDING THAT THIS 3 PERCENT OF GROSS REVENUE IS IN EXCHANGE ONLY FOR THE$72,000 CASH AMOUNT THAT HAS BEEN PROVIDED THE PAST SEVEN YEARS AND THAT ALL THE OTHER TYPICAL CONTRIBUTIONS THAT THE CITY OBTAINS FROM THE UTILITIES WILL CONTINUE. COUNCILMEMBER DIETZ SECONDED THE MOTION. Mayor Duitsman indicated that the request for 3 percent from the Utilities may work to balance the City's 1995 budget, but it may not work for the City's future growth needs. Councilmember Scheel indicated she would rather see the City request funds for special issues and projects. Councilmember Holmgren noted that the motion made does not mean that the City will not be able to request funds from the Utilities for other special uses. THE MOTION CARRIED 3-2. Councilmember Scheel and Mayor Duitsman opposed. Meetings - It was the consensus of the City Council and Elk River Utilities that a joint meeting be held between them three times per year; in March, July, and November. 0 Elk River City Council Special Meeting Page 3 November 14, 1994 4.2 City Contribution to the Western Area Water Tower 4.3. Utility Commission Participation in the Business Park City Administrator Pat Klaers stated that in 1987 the City captured TIF funds from the RDF project with the goal in mind to use these funds for infrastructure improvements. He indicated that in 1992 the Council informally decided to use these funds for the Western Area water tower. The City Administrator indicated that since 1992, the goal of developing a business park has become closer to reality and this project is in competition for any funds that are available for public improvements. The City Administrator stated that the City Council and Utilities must decide at what level of funding the City should participate for the Western Area water tower project. The Council and Commission discussed the financial needs of the water utility in financing the western area water tower. If growth continues at its current high rate, it is estimated that sufficient water connections will take place to finance this water tower. However, if the rate of growth decreases, then a shortfall in meeting its bond obligations may take place. Mayor Duitsman indicated that he is in support of building a new high school in the community and feels that some of the TIF funds could be used for this purpose. COUNCILMEMBER DIETZ MOVED TO ISSUE BONDS FOR $1,010,000 AND TO USE THE • APPROXIMATELY $429,000 IN TIF FUNDS FOR THE BUSINESS PARK AND TO POSSIBLY WRITE DOWN THE UTILITIES FOR THE NEW SENIOR HIGH SCHOOL. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.4. Street Liahtina Standards Discussion was held regarding the possibility of offering higher quality street lighting for both residential and commercial developments. Bill Birrenkott stated that he will be working on offering other options to residential developers, however, the developers will have to pay for the upgrade. He further indicated that he has been working with commercial developers regarding this issue. 4.5. 1995 New Street Liahts Glenn Sundeen indicated that the fifteen new street lights that were approved in December, 1993 for installation in the City of Elk River will be installed within a month. Councilmember Farber requested that the Utilities consider more street lighting along Jackson Avenue for safety purposes. 4.6. Water Ordinance The City Attorney handed out a draft water ordinance which would require water connections similar to the required sewer connections in the sewer ordinance. It • was the consensus that the Utilities would review the ordinance and make their recommendations to the City Council. Bill Birrenkott suggested that the City Elk River City Council Special Meeting Page 4 November 14, 1994 • Council consider grandfathering in some residents such as those on Simonet Drive and the Westwood Subdivision. 4.7. City Audit Finance Director Lori Johnson questioned whether there were any concerns about the City's audit and the late May timeframe when it is presented to the Council. The Utilities Commission indicated that it would try to coordinate their audit with the City audit for a more timely presentation. 4.10. Open Meetina Law City Attorney Peter Beck briefly reviewed the Open Meeting Law changes with the Elk River Utilities Commission. He indicated that the Open Meeting Law applies to the Utilities Commission and that two members of the Commission constitute a quorum. 4.11. City Ethics Ordinance City Attorney Peter Beck indicated that the City Ethics ordinance was previously distributed to the Utilities. Commissioner Simpson indicated that the Utilities have reviewed the ordinance and have no concerns. 4.12. Surface Water Management Fee • Mayor Duitsman informed the Utilities Commission that the City is planning to do a city-wide levy to help finance the surface water management improvements rather than including a fee on the monthly utility bill. 4.13. Other Business There was no other business. The City Council recessed at 8:00 p.m.and reconvened at 8:08 p.m. 4.9. 1995 Commission Appointment COUNCILMEMBER SCHEEL MOVED TO FOLLOW CURRENT POLICY AND TO ADVERTISE FOR THE UTILITIES COMMISSION AS ONE OF THE MEMBER'S TERM WILL BE EXPIRING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.a. Review Elk Hills Drive/Dodcae Avenue/5th Street Potential Construction Timetable City Engineer Terry Maurer reviewed the plans showing the grade being changed on Dodge Avenue and on Dodge Street. Discussion was held by the Council regarding the proposed improvements to the intersection. Discussion was also held regarding who would be responsible for payment of the improvements of the intersection. Mayor Duitsman indicated he would like to hold a meeting with the surrounding • property owners who will be affected by the improvements. Elk River City Council Special Meeting Page 5 November 14, 1994 • COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 94-118, A RESOLUTION OF THE CITY OF ELK RIVER ORDERING A PRELIMINARY FEASIBILITY REPORT IN THE MATTER OF THE ELK HILLS DRIVE/DODGE AVENUE AND STREET/5TH AVENUE IMPROVEMENTS OF 1995. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The Council directed the City Engineer to begin the survey work for this project as soon as possible. 5.b. Reauest for Extended Hour by Barbarossa City Engineer Terry Maurer indicated that Barbarossa and Sons have requested to work a double shift on the construction project involving the trunk line in the western area of the City. He stated this would mean that the contractors would be working from 6:00 a.m. to 11:00 p.m., for approximately one week. It was the consensus of the Council that the lateness of the hour would affect the neighboring residents and, therefore, the Council authorized that Barbarossa and Sons could work from 6:00 a.m. to 8:00 p.m. 6. Other Business Councilmember Farber requested that the contractors clean up the sidewalk and the bike paths on Jackson Avenue. Councilmember Farber also noted that the exit on westbound Highway 10 • heading north on Highway 169 is dangerous. He indicated that it would be safer if a barrier were installed in that location. Terry Maurer indicated that he would speak to MnDOT regarding this situation. 3. Consider a Modification to the EDA Enabling Resolution to Change the Composition of the EDA Membership Economic Development Coordinator Bill Rubin stated that on November 7, the City Council voted to continue discussion on this matter in order to decide a rotation method of choosing which Councilmember would not serve on the EDA. Bill Rubin indicated that he provided the Council with three options which outline both strengths and weaknesses. Councilmember Holmgren stated he is not opposed to adding a third citizen, but until he is sure how to handle the rotation, he will abstain from voting. Discussion was held regarding a method of rotation. It was the consensus that the Councilmember acting as Vice Mayor for a particular year will not be a member of the EDA during that year. COUNCILMEMBER HOLMGREN MOVED TO DIRECT THE ECONOMIC DEVELOPMENT COORDINATOR AND CITY ATTORNEY TO DRAFT AN AMENDMENT TO THE ENABLING RESOLUTION TO REFLECT THAT THE VICE MAYOR WILL STEP DOWN FROM THE EDA TO ALLOW THE APPOINTMENT OF A THIRD NON-ELECTED CITIZEN. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 3-2. Councilmember • Scheel and Mayor Duitsman opposed. Elk River City Council Special Meeting Page 6 November 14, 1994 • 7. Motion to Call Executive Session of the City Council MAYOR DUITSMAN MOVED TO CALL AN EXECUTIVE SESSION OF THE CITY COUNCIL TO DISCUSS THE ELK RIVER POLICE DEPARTMENT UNION CONTRACT PROPOSAL AND PENDING LITIGATION OF THE BUD HOULTON PROPERTY. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. The City Council recessed at 8:45 p.m. into Executive Session and reconvened its regular meeting at 8:59 p.m. 9. Adjournment There being no further business, COUNCILMEMBER FARBER MOVED TO ADJOURN THE MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The City Council adjourned into executive session at 9:00 p.m. Respectfully submitted, .b/It_ F Thackeray • City Clerk •