Loading...
03-13-2006 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) MONDAY, MARCH 13, 2006 Members Present: Mayor Klinzing, Councilmembers Dietz, Motin, and Gumphrey Members Absent: Councilmember Farber Staff Present: City Administrator Lori Johnson, Parks and Recreation Director Bill Maertz, Environmental Administrator Rebecca Haug, and City Clerk Joan Schmidt Also Present: County Attorney Kathy Heaney, County Chief Financial Officer Diane Arnold; Library Board Members Allison Olson, Karen Stelk, and Anne Schroeder; District Manager Elk River Landfill Debra Walters, Waste Management, Inc.; Project Architect Jennifer Anderson-Tuttle and Principal Muhammed Lawal of KI<E Architects 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 Council Agenda To be discussed after Item 5.5 will be Historical Society and HPC. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE FOLLOWING CONSENT AGENDA ITEMS: 3.1. MARCH 6, 2006 REGULAR CITY COUNCIL MINUTES 3.2. ADOPT RESOLUTION 06-31 ACKNOWLEDGING CONTRIBUTIONS TO THE POLICE DEPARTMENT FROM CARING RIVERS UNITED WAY 3.3 REQUEST TO PURCHASE ONE TON CAB AND CHASSIS MOTION CARRIED 4-0. 4. Open Mike There was no one present for Open Mike. City Council Minutes March 13, 2006 Page 2 5. Worksession . 5.1. Council Open Forum Councilinember Morin stated that the Northstar Corridor did get approved with ranking modified. The Federal Transportation Administration may be recommending the rail to go into flOal design. He stated that the Legislature will also be asked to approve the final $60 million bonding and the Northstar Corridor project could begin in 2009. Councilinember Dietz asked City Administrator Lori Johnson to check into the legality of having signage to warn citizens not to have for-sale cars parked in the highway right-of way. Ms. Johnson indicated she will check on this issue. 5.2. Presentation from Sherburne Coun1y Administrator on Utility Property Tax Legislation Sherburne County Attorney K.athy Heaney provided a brief presentation on proposed utility legislation that is currently in the Senate. Ms. Heaney asked if the Council had any questions regarding the legislation. Ms. Heaney responded to questions from the Council regarding the proposed legislation. Ms. Heaney stated that if the Council supports the legislation, a letter of support would be greatly appreciated. Mayor Klinzing indicated that staff will have the City Attorney review the proposed legislation and the Council can draft a resolution of support. Councilinember Motion indicated that the wording in this proposed legislation makes it sound as though tax abatement cannot go beyond 10 years and he questioned if this is the case. Ms. Heaney stated that this is not her area of expertise and she would defer the question to someone who has more experience in tax abatement. Mayor Klinzing indicated that this is an issue the city needs to have clarified. . Mayor Klinzing stated that the city is holding a Developer's Forum on March 29 and a Bankers Forum on May 24. She asked Ms. Heaney to pass the information on and if the County has any information they would like to present at either of these forums they are invited to do so. 5.3. Update on Landfill Expansion Application Environmental Administrator Rebecca Haug stated that she would like to provide the Council with a brief update on the status of the landfill expansion. Debra Walters, District Manager Elk River Landfill, Waste Management, Inc. - distributed a timeline on the Elk River Landfill's south expansion. Ms. Haug explained that the Environmental Impact Statement (EIS) will go before the Minnesota Pollution Control Agency (11PCA) Board on March 28 and then if approved, the expansion will move on for local city and county approvals. She stated that it is anticipated that city approval will be sought in July or August 2006. . '. . . City Council Minutes March 13,2006 Page 3 Councilmember Dietz questioned if Ms. Walters has had any additional meetings with the residents of the Ridges of Rice Lake. Ms. Walters explained that information regarding meetings has been distributed to the residents and she has been in contact with the Ridges of Rice Lake housing association president Dave Steiner to set up meetings but a meeting has yet to be scheduled. Ms. Haug noted that staff has been waiting until the EIS is complete prior to scheduling public meetings with the neighbors of the landfill. Councilmember Dietz questioned if the EIS has been completed. Ms. Haug explained that it has been completed and the MPCA Board will score the EIS with either a positive declaration which means that further studies need to be conducted, or with a negative declaration that means that the expansion can move on to local city and county approvals. 5.4. 2005 NPDES Permit Update Environmental Administrator Rebecca Haug explained that the city applied for a National Pollution Discharge Elimination System General Storm Water Permit (NPDES) in 2003 and as part of that permit, the city was required to develop and implement Best Management Practices and achieve measurable goals to satisfy six minimum control measures. Ms. Haug stated that the six goals are: Public Education and Outreach, Public Participation Involvement, Illicit Discharge Detection and Elimination, Construction Site Runoff Control, and Pollution Prevention/Good Housekeeping. Ms. Haug stated that in 2005 the City of Elk River was able to meet goals in each of the six measures and she provided some examples. She indicated that staff will continue to improve the city's storm water program in 2006 by implementing additional measures. Councilmember Dietz questioned who performs the storm drain inspections. Ms. Haug stated that the Street Department conducts these and they also make repairs to the storm drains when necessary. 5.5. Update on Northern Lights Expansion Project-Natural Gas Pipeline Project Environmental Administrator Rebecca Haug stated that Northern Lights is proposing to expand its natural gas transmission system to provide additional natural gas in their market area. Ms. Haug stated that Northern will be replacing approximately 3.3 miles of 3-inch diameter pipeline loop 'with 10-inch diameter pipeline in Sherburne and Wright Counties. Ms. Haug reviewed some of the environmental issues that have been identified with this project. She stated that the pipeline will not affect any areas identified in the city's Natural Resource Inventory but the pipeline will be impacting one known historical resource in the city and the applicant will be working with the State Historical Preservation Office on this issue. Ms. Haug indicated that several wetlands will also be impacted so the applicant will be required to go through the Wetland Conservation Act process. She noted that the comment period ends March 24 and staff would like Council approval to send comments addressing the environmental issues as described. Councilmember Motin questioned if there was any possibility that Northern could shift the line to make it easier for development purposes for the city because a large portion of the line runs through the Northstar and Gateway Business Parks. Ms. Haug indicated that she will address that in the comment letter. City Administrator Lori Johnson noted that staff received information today that an information meeting will be held March 14 at 7 p.m. at Riverwood Conference Center and this is a chance for the public to attend and comment on the project. City Council :Minutes March 13, 2006 Page 4 MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO AUTHORIZE STAFF TO SEND A LETTER OF COMMENT TO FEDERAL EMERGENCY REGULATORY COMMISSION REGARDING THE CITY'S ENVIRONMENTAL CONCERNS AS THEY PERTAIN TO THE NATURAL GAS LINE EXPANSION PROJECT BY NORTHERN LIGHTS AND TO REQUEST THAT THE PIPELINE BE RELOCATED TO EASE DEVELOPMENT OF THE CITY'S BUSINESS PARKS. MOTION CARRIED 4-0. . 5.5.B Sherburne County Historical Society Environmental Administrator Rebecca Haug indicated that the Sherburne County Historical Society is celebrating its 150th Anniversary. Ms. Haug stated that they are in the process of constructing a new facility and they are asking cities and townships to purchase a tree. Ms. Haug indicated that the Heritage Preservation Commission is recommending that the City Council purchase a white pine and if possible, have a member of the Council attend the anniversary celebration on June 17. Councilmember Dietz questioned if the tree would be planted at the Historical Society's new facility. Ms. Haug stated that it would. Councilmember Motin questioned if the city is allowed to make this type of contribution to the Sherburne County Heritage Preservation Commission. City Administrator Lori Johnson indicated that Heritage Preservation Commissions are among the groups that are allowed to make contributions. . Mayor Klinzing offered to attend the June 17 celebration. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO PURCHASE A WHITE PINE TREE IN HONOR OF THE SHERBURNE COUNTY HERITAGE PRESERVATION COMMISSION'S 150TH ANNIVERSARY FOR $125.00 WITH HERITAGE PRESERVATION COMMISSION FUNDS. MOTION CARRIED 4-0. 5.6. Discussion on YMCA/Library Joint Facility Parks and Recreation Director Bill Maertz explained that as directed by the Council, staff asked KKE Architects to review the Northstar Business Park site and the Lake Orono water tower site for feasibility of a joint Library/YMCA project Mr. Maertz indicated that based on the original criteria used in the original site analysis, neither YMCA site would be large enough for a joint project Mr. Maertz stated that YMCA staff evaluated the Lake Orono water tower site and they believe it is a great site for their needs and moving the YMCA to the Lake Orono water tower site would free up the Northstar Business Park site, thus expanding the inventory of property available for economic development. Mr. Maertz indicated that the Council is asked to reaffirm the Orono Parkway site for the library project and consider the Lake Orono water tower site for the YMCA. It was the consensus of the Council to reaffirm the Orono Parkway site for the library project . City Council Minutes March 13, 2006 . 5.7. 5.7.A. . . Page 5 Library Project LEED Certification Parks and Recreation Director Bill Maertz stated that the Energy City Commission made a recommendation at their February 22, 2006 meeting to have the proposed new library be built to Leadership in Energy and Environmental Design (LEED) certification standards. Mr. Maertz stated that there are four levels of LEED certification and explained that in order to qualify for LEED certification, points must be obtained in several areas including sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation and design process. Mr. Maertz indicated that the additional costs associated with obtaining LEED certification are estimated to be between 5%-12%. He also indicated that the energy savings could be up to 50%. Mr. Maertz noted that the Library Board met and also recommended that the city pursue LEED certification for the library project and that if the Council concurs, staff would like direction on which level of certification to pursue. Councilmember Dietz questioned if the city seeks the platinum certification, if the cost would be the 12%. Environmental Administrator Rebecca Haug indicated that the additional cost associated with pursuing LEED certification is based on the products used and not the certification sought. Ms. Haug noted that the Energy City Commission feels that because Elk River is Energy City, the city should be setting an example with their buildings. Mr. Maertz indicated that costs could be offset by using landfill abatement funds and obtaining grants if recycled products are used. Mayor Klinzing stated that she believes that the library project would be a great way to provide an example of what can be achieved by being energy efficient and using recycled products. She noted that the School District has experienced greater energy savings on the schools with LEED certification than what they had projected. Councilmember Motin indicated that he is concerned that with the additional up front cost, that the city will not see the energy savings as projected. He noted that the city did not experience the energy savings with the Geothermal system at the Public Safety Building as projected. City Administrator Lori Johnson explained that initial problems with the Geothermal system prevented the city from experiencing energy savings but the system is now energy efficient since it is functioning properly J ennifer Anderson-Tuttle, KKE Architects - stated that as part of the LEED certification process, schematic designs and energy modeling is done which projects actual savings. She stated that the Council would then be provided with project strategies and cost estimates to make their decision. Councilmember Motin questioned if there would be a display at the library explaining the energy efficiency. Ms. Johnson indicated that an educational component would be required if landfill abatement funds are used and that it is also a requirement of the LEED certification. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY MAYOR KLINZING TO PURSUE THE PLATINUM LEED CERTIFICATION FOR THE LIBRARY PROJECT. MOTION CARRIED 4-0. City Council Minutes March 13, 2006 Page 6 5.7.B. Financing City Administrator Lori Johnson stated that included in the 2007 Capital Improvement Plan (CIP) is $1.5 for a library expansion. Ms. Johnson indicated that no final budget has been set for the current library expansion but that the estimated amounts substantially exceed the amount in the CIP. The city will need to use bonding and reserves in conjunction with the money set aside in the CIP to fund the proposed project. Ms. Johnson indicated that her recommendation would be to use Capital Improvement Bonds. She stated that in order to use Capital Improvement Bonds, the city would need to have an officially approved CIP for which a public hearing must be held. She noted that a public hearing would also be required for issuance of the bonds. . Ms. Johnson reviewed special revenues, reserve funds, and host fees. Mayor Klinzing questioned how the project would be affected if the city decides to sell the existing library building. She stated the money would be used to fund the library construction. Ms. Johnson indicated that she has received inquiries regarding the existing library building and that an appraisal would need to be completed before a value could be determined. Ms. Johnson noted that the Council should also consider what to do with the Bailey house and the vacant lot adjacent to it. Ms. Johnson indicated that she would also like Council direction on how to proceed with the CIP. She stated that her recommendation would be to update portions of the CIP and hold the public hearing for approval of the CIP and then to refine the entire CIP in the fall and approve it with the budget so it is in place for 2007. . Councilmember Motin indicated that he would like to wait to do anything with the Bailey house and the neighboring lot until a decision is made on what to do with the existing library building. He noted that the property may be more valuable with the adjacent lots included. Councilmember Dietz suggested that Mr. Maertz and Ms. Johnson return to the Council after the library project has been approved for discussion on what to do with the existing library building. Ms. Johnson indicated that staff could return when the CIP is approved. 5.7.C. Project Schedule Parks and Recreation Director Bill Maertz reviewed the proposed library schedule. He stated that if Council approval takes place in March, the library construction could be completed by August 2007. Councilmember Gumphrey questioned if the size of the building would have to be determined tonight. Mr. Maertz indicated that it would be helpful in assisting staff to enter into an agreement with KKE Architects and to work up a [mal budget. It was the consensus of the City Council to build a 16,000 square foot building and for stafffto return to the Council on March 20 with an agreement between the city and KKE Architects. 5.8. Tobacco Settlement from Blue Cross . . . . City Council Minutes March 13, 2006 Page 7 Lori Johnson indicated that the city received $10,381.56 of tobacco settlement funds from BlueCross BlueShield (BCBS) of Minnesota. Ms. Johnson explained that the settlement funds have been set aside to fund programs that meet the requirements of the settlement. She stated that many employees have expressed interest in smoking cessation programs and staff recommends that be the first program funded with the money. Ms. Johnson stated that she recommends that these funds be spent on programs that will help control or reduce health insurance costs such as health awareness and screening, healthy eating, and other preventative health programs. Ms. Johnson indicated that the Health Rewards Committee, which is made up of city and utility employees, currently coordinates these programs for employees with a small allotment from the consortium ($1,000 - $1,500 a year). Councilmember Dietz stated that it would make sense for the.Elk River Municipal Utilities to pool their settlement money with the city's so programs can be offered to all employees. He stated that he will discuss this at the next Utilities Commission Meeting. Ms. Johnson stated that she believes another program that could be funded is an Employee Assistance Program (EAP) as BCBS currently does not offer this with the health insurance plan through the consortium. Councilmember Dietz questioned what services an EAP provides. Ms. Johnson explained that an EAP provides confidential services to employees on such things as mental illness, diseases, grief counseling, and legal issues. Councilmember Gumphrey indicated that his place of employment has an EAP and it is very beneficial to the employees. Councilmember Dietz questioned how funding on the EAP would continue once the tobacco funds run out. Ms. Johnson stated that it could be included in the budget or it may become part of the employee's health insurance plan if the city changes plans. Councilmember Motin indicated that he would like to see the EAP included in the budget and have the tobacco settlement money set aside for other programs. 6. Council Updates There were no Council updates. 7. Staff Updates City Administrator Lori Johnson provided an update on the Pinewood Purchase. Ms. Johnson explained that upon review of the lease and purchase agreements, staff found two issues of question. The first has to do with the rental of tee-boxes and this is in the process of being investigated. She stated that the second issue has to do with the protective covenants. She indicated that she spoke to City Attorney Peter Beck and has been informed that there may not be a mechanism in place to remove the protective covenants. Councilmember Motin indicated that he will contact Mr. Beck to discuss the options. Ms. Johnson indicated that Investigator Steve Bockwitz recently retired from the Elk River Police Department after 18 years of service. Ms. Johnson stated that anotller Investigator may also be retiring soon. Discussion took place on whether the positions should be filled with experienced investigators or promoted from within. It was the consensus of the City Councill\1inutes March 13, 2006 Page 8 Council for that issue to be brought back before them when more information is available on the other retirement. . Ms. Johnson noted that rather than having voluntary resignations on the agenda for formal Council approval since no action is requited, she would like to include them to the Council as informational items. The Council concurred. Ms. Johnson provided an update on Planning Manager and Finance Director positions. She indicated that interviews were held for both positions but that staff would like to continue to advertise for these positions. Ms. Johnson indicated that she received the final tax rate from the city and was projected to be the same as last year but the Net Tax Capacity (NTC) came in lower than the County's original estimate so the tax rate increased slightly. Ms. Johnson indicated that according to the County, the change in NTC was prompted by a new law regarding apartment building values which caused the city's NTC value to decrease by $77,000. She has asked the County to notify the city if significant changes in the NTC could occur after the County estimated value is provided in September. 8. Adjournment The meeting of the Elk River City Council adjourned at 8:07 p.m. . Minutes prepared by Jessica Miller. ~ .