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04-10-2006 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) JOINT MEETING WITH THE PARKS AND RECREATION COMMISSION MONDAY, APRIL 10, 2006 Members Present: Mayor Klinzing, Councilmembers Dietz, Motin, Farber and Gumphrey Members Absent: None Staff Present: City Administrator Lori Johnson, Parks and Recreation Director Bill Maertz, Community Development Director Scott Clark, and City Clerk Joan Schmidt Also Present: Parks and Recreation Commissioners Mike Niziolek, John Kuester (left at 7 p.m.), Duane Peterson, Dawn Polston-Hork, andJames Nystrom 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 Items 3.8, 3.9, and 3.10 added to the Consent Agenda. To be discussed with Council Open Forum - coverage for when City Administrator Lori Johnson is gone. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 5-0. 3. Consider Consent Agenda MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE THE FOLLOWING CONSENT AGENDA ITEMS: 3.1 APRIL 3,2006 REGULAR CITY COUNCIL MINUTES 3.2. CONSIDER TEMPORARY ON-SALE INTOXICATING LIQUOR LICENSE FOR ELK RIVER ROTARY 3.3 CONSUMPTION AND DISPLAY PERMIT FOR WAPITI PARK CAMPGROUND 3.4 CONSIDER ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE FOR PINEWOOD GOLF COURSE 3.5 AUTHORIZATION TO HIRE TEMPORARY BUILDING INSPECTOR 3.6 CONSIDER APPROVAL OF ASSIGNMENT OF TAX ABATEMENT PAYMENTS FROM JAN JACOBS (QUALITY LABEL) TO GREAT NORTHERN BANK 3.7 CONSIDER PROMOTION OF INVESTIGATOR VITA TO SERGEANT 3.8 AUTHORIZATION TO HIRE KANDY NASH FOR PINEWOOD CLUBHOUSE COORINATOR City Council Minutes April 1 0, 2006 Page 2 3.9 AUTHORIZATION TO HIRE PAUL ANDERSON FOR PINEWOOD SUPERINTENDENT 3.10AUTHORIZATION TO HIRE MECHELL TUROKAS ACCOUNTING CLERK . MOTION CARRIED 5-0. 4. Open Mike There was no one present for Open Mike. 5. Worksession 5.1. Council Open Forum Councilmember Motin stated that there are fluorescent signs on Freeport that staff needs to monitor. He asked that discussion of the Wetland Buffer Ordinance be delayed until May. Councilmember Farber has concerns until a Finance Director is hired as to who would take charge in the event that City Administrator] ohnson is on vacation. Ms. ] ohnson stated that the department heads continue to be the contact for their areas and that Chief] eff Beahen would be in charge with public safety issues. She stated that City Clerk] oan Schmidt is very knowledgeable about open meeting laws and would be present at the council meetings and take the information back to staff. She stated that she could always be reached by cell phone. If a department head had an issue and Chief Beahen was in charge, they could go to him or call her on her cell phone. She stated in the past when the City Administrator was gone there wasn't always a phone number to call and that problems were always resolved. The Mayor is also a resource for staff. . Councilmember Farber stated that he felt the Annual Report presentation was too short and that some questions went unanswered. He felt that it did not reflect the many tasks of some divisions and he wishes to have more information provided from these divisions at this setting with more question and answer time. Counc:ilmember Motin stated that if there are significant concerns the division could come before council at a work session. Mayor Klinzing stated that she doesn't wish to have the Annual Report meeting to be any longer and likes the written information provided. She stated that sometimes staff members are reluctant to discuss pending issues on cable television. Councilmember Dietz stated that time at the meeting should be for dialogue between council and staff versus repeating the written information provided. City Administrator Lori] ohnson stated that council will be receiving more information from department heads with the budgeting process. It was the consensus of the council to have the Annual Report focus on highlights, not reading the goals, and to have more in-depth discussion at budget time. . . . . City Council Minutes April 10,2006 Page 3 5.2. Mayor's Discussion of Briggs Proposal Mayor Klinzing explained that this item has to do with the issue of commercial property in the city and whether or not we have enough flexibility with the types of property and locations that will work for people. She stated the council in the past has struggled with whether or not a request fits into the proper zoning and whether or not council wanted to put those uses in that zone when council wanted the type of uses that should be in the office park zone. She stated the council did not want to cause a conflict. She stated the issues are - where do they go, how do we serve them, and possibly the rezoning of property behind the new furniture store to allow the use for a professional dance studio. Pam Sitts of PS Dance Studio and Pat Briggs of Briggs Properties discussed with council some of the sites owned by Briggs Properties seeking advice for a location for a dance studio. Councilmember Morin stated that the council is trying to keep the business park area, the Northstar Business Park, and the Gateway for light industrial use. He stated there is the Home Depot and the Maxsum Furniture Store but the furniture store was allowed with the idea that it would be the end of the commercial area. He stated that there may be other industrial locations that aren't as prime of a location where a studio could be located. Councilmember Farber agreed with not using prime industrial land for this use; that staff needs to work with Mr. Briggs; and that he is not ready to make a decision. Mayor Klinzing stated that this issue will not be resolved with the current ordinances and if the council is not interested in changing these ordinances that they could say no or can give direction to staff to look at drafring potential changes. Council wishes to accommodate this dance studio. The majority of the council indicated that rezoning in light industrial may be difficult for council to approve. It was the consensus of council to have staff work with Mr. Briggs citing options that he has for development of property that he owns. Councilmember Morin would like staff to look at the potential to designate certain areas that are light industrial to be Tier I and Tier II and stated that he doesn't wish to open up all light industrial areas to be zoned for dance studios. 6.1. Pinewood Financing City Administrator Lori J ohoson stated that du.s item has been discussed in the past and that council has received a letter from Dawn Polston-Hork on behalf of the Parks and Recreation Commission regarding their opinion on financing using the Park Dedication fund to finance Pinewood. She stated there are funds available in the Park Dedication fund, the RDF Reserve ($714,000), the Landfill Construction Debris fund ($193,000). She stated that the Park Dedication fund currendy does not have enough cash to cover the full balance paid at closing because of improvements taking place this year. The amount that was paid at closing on Thursday was $300,000 for the down payment and $90,000 for the first year lease payment. She stated that she would like council to discuss where to charge those two upEront payments and the ongoing payments. City Council Minutes April 10, 2006 Page 4 Ms. Johnson explained that the RDF Plant payment in lieu of taxes has paid for part of the city hall property; in addition, $20,000 was used for the Youth Athletic Complex, $47,000 for Lions Park Center remodeling, $344,000 for the Ice Arena, and $338,000 for the school theatre. Further, this payment in lieu of taxes has funded about $831,000 in city hall debt and $474,000 of transfers to the General Fund. She indicated that recreational purposes have been one of the main focuses of this reserve fund. . She distributed information on funding sources. Councilmember Farber asked the commissioners their stance on payments. Commissioner Nystrom stated that they can see this as a recreational activity but that council has to be careful about expending too may funds in one spot. He stated that the commission had talked at length and thought that about $600,000 could be used for this purpose. Councilmember Dietz inquired of Bill Maertz what this would do to his budget for this year if the $390,000 that was paid on Thursday had to come from his budget - what would be the balance in the Park Dedication fund. Mr. Maertz stated that there is no Park Dedication budget and that his Park balance was about $1.7 million; approved improvements for this year is $1.2 million and then $195,000 was added to do the trail and tunnel under CR 33. Ms. Johnson indicated that as of the beginning of March there was about $115,000 and that additional park dedication fees have been received since then, but there was not enough to cover the full $300,000 for the initial down payment. . Councilmember Dietz clarified that in the RDF funds there is $714,000 and the city will receive approximately $300,000 each year through 2009. Ms. Johnson stated that half of those funds are designated for the payment of the city hall debt and that there is $450,000 that will be received through 2009 that is undesignated. The $450,000 is in addition to the $714,000 in the fund now that is undesignated. Councilmember Dietz stated that he feels we should pay for this with one-half out of Park Dedication funds and one-half out of RDF money since the Park Dedication Fund has so much money already committed for this year. He stated that the $390,000 that was already paid should come out of the RDF money for this year. Councilmember Gumphrey inquired as to future improvements needed and the funding source. Mr. Maertz indicated that the budget included $15,000 for improvements to the Clubhouse; and, equipment can be leased and come out of the Pinewood budget. He stated that due to the nature of the lease, the city cannot do any major improvements on the course or Clubhouse for two years. Maintenance will need to come out of a reserve fund. Commissioner Polston-Hork explained that the commissioners had a concern if the land needs to be sold and Park Dedication funds were used as to what happens. . . . . City Council Minutes April 10, 2006 Page 5 Councilmember Morin stated that it was his view that if you paid anything towards it and if the property was sold you would get your money back. Councilmember Farber stated that he agrees that one-half should come from Park Dedication funds. Ms. Johnson stated that if the council wished a plan could be developed to determine an amount to be reserved each year in the Park Dedication fund to fund the principal payment due at the end of the contract. Commissioner Peterson indicated that they were concerned of the full balloon payment coming out Park Dedication funds. Commissioner Polston-Hork stated that she felt we needed to be very cautious in using Park Dedication funds. Mayor Klinzing stated that this is a park that was purchased by dle council and also a recreational program. She stated that we all need to come together in support. Commissioner Niziolek stated that he sees this as a recreational opportunity but he wants to make sure that we have sufficient funds to make critical steps in the future and that we don't make decisions too quickly. He wants to make sure that when other property becomes available for parks that we have money available to acquire. Councilmember Morin agreed that the council also doesn't want the commission to run out of money. He stated that part of having reserves is to be able to take advantage of opportunities as they come up. He stated that the council decided that as a recreational opportunity it was important to plan for this now. Commissioner Peterson stated that it is a one shot deal and that they are trying to save parcels. He stated that we have to develop and acquire all at the same time making it very difficult with funding. He stated that no one is against acquiring but the council never came back to the commission asking their opinion on acquiring and funding. He expressed concerns of communication and concern that all of the money would be coming from the Park Dedication funds. The council stated that time didn't allow coming back to the Commission and that they had to make a decision fast. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER MOTIN TO USE $390,000 FROM RDF RESERVE FUNDS; AND FIFTY PERCENT OF THE REMAINING BALANCE TO COME FROM PARK DEDICATION FUNDS AND FIFTY PERCENT FROM RDF RESERVE FUNDS OR THE HOST FEES (WHICHEVER HAS FUNDS AVAILABLE); AND IF THE CITY EVER SELLS THE GOLF COURSE THAT THE PARK DEDICATION FUND IS REIMBURSED FOR ANY MONEY THAT THIS FUND PUT INTO PINEWOOD TOWARDS THE PURCHASE PRICE AND TOWARDS INTEREST. MOTION CARRIED 5-0. Ms. Johnson stated that staff would bring this back annually for Council action on using either the RDF Reserve or landfill host fees. The Council concurred. City Councill\.1inutes AprillO, 2006 Page 6 6.2 6.3 Trail Financing and Future Referendum for Parks and Trails . Parks and Recreation Director Bill Maertz stated that there will be significant opportunity to develop trails in Elk River over the next 10 years as east Elk River becomes developed, and Sherburne County reconstructs and improves county roads. The Park and Recreation Commission have indicated that a comprehensive and citywide trail system is a high priority. Staff believes that Park Dedication fees, at their current levels, will be insufficient to fund a citywide trail system. Options for funding mechanisms for trails are: increase in park dedication fees; Parks and Trails Referendum; grant opportunities; and stipulating trail construction as part of the PUD process. He continued on with item 6.3 stating that the Commission had expressed from the day he came onboard an interest in looking at a park referendum knowing that land values are increasing and the costs of all sort of recreational facilities. He stated that the 5-year Capital Improvement Plan for parks is about $4,296,000; trail development estimated at $4 million; the purchase of Pine wood having an impact of over $1 million; land acquisition will be substantial even with matching grants; and athletic associations are advocating for increased field development. Staff recommends looking at revising and updating the 1997 Park System Master Plan; hire a consultant; hold extensive series of neighborhood public meetings; and create a system plan that reflects resident's values. He stated that staff is recommending to include $45,000 in the Park Dedication budget for this process citywide to determine whether there is a need or a desire to have a referendum. Councilmember Dietz expressed concern about future developments in the eastern part of the city since the Trail Master Plan hasn't been updated. He stated that when projects come to the council and they don't have a Master Plan to look at that it's difficult to suggest or state that there's suppose to be a trail located in the development. He feels developers will want to locate the trail anywhere and argue that since it's not in the Master Plan question why the council is making them do it. The Park Commission will say we really want a trail in this area but it's not in the plan. He inquired as to how we could speed up the process. . Mr. Maertz stated that when any development comes in the planners do review it with the existing plan and with a concept of what is needed. He stated that updating the Plan is part of the process needed. He stated that there are trails in the eastside and the county will widen the shoulders. Councilmember Farber agrees and would like some way to speed up the process and for staff to come up with some idea of what we are looking for. He stated that what comes to mind is looking for trails along Trott Brook. He stated that since there wasn't a plan he had a hard time agreeing to this type of project and that council needs to be more aware. He stated that he doesn't want to have to wait if staff has some sort of vision. Mr. Maertz stated that he can have Mr. Leeseberg work on and develop internally at the staff level. Mayor Klinzing stated that she thinks the consultant is something council should consider. Councilmember Farber likes the idea of going to the neighborhoods and if people have ownership into the parks and trails they will probably vote for a referendum. . . . . City Council Minutes April 10, 2006 Page 7 Mr. Maertz stated that if we include hiring a consultant in the 2007 budget that staff could be prepared to start with request for proposals in January, completing the process in six- months, and if support is indicated to have a referendum in Fall of 2007 or Spring of 2008. Commissioner Niziolek stated that the timing of an election depends on the economy and what the school district brings forward. He stated that he feels there needs to be a discussion with the school board and to look at the economy before deciding. Mr. Maertz stated that if the value really is to become known as the city with the great parks and trails, to place the question on the ballot of the election were most people are going to turnout, and not to try to strategize but put it out for the most voters. Councilmember Dietz stated that once people realize we are spending hundreds of thousands of dollars on parks they will realize we are trying to go forward for their benefit and develop the parks so they can take full advantage of them. Councilmember Gumphrey inquired what will be done from now until a future consultant is hired to work with future developers. Mr. Maertz stated that he will work with Chris Leeseberg to develop a new trail Master Plan and bring this before the Park and Recreation Commission and for council approval in May. Commissioner Niziolek stated that another tool to use is the NRI and this guides us as to strategic properties that should be acquired and preserved. He stated that if we develop a program for transfer development rights, it would buy us time to acquire those parcels. 'Ibis would help us to set our community up to have sufficient open space without burdening us fmancially. He stated that Chis ago County does this currently. Mayor Klinzing stated that she is glad that tlle commission and council were able to have this discussion and that she knows everyone will work together. She thanked the members for their hard work. 7.0. Adjournment The meeting of the Elk River City Council adjourned at 8:12 p.m.