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11-20-2006 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 20, 2006 Members Present: Mayor Klinzing, Councilinembers Dietz, Motin, Farber, and Gumphrey Members Absent: None Staff Present: City Administrator Lori Johnson, Community Development Director Scott Clark, Planning Manager Jeremy Barnhart, Senior Planner Sheila Cartney, Planner Chris Leeseberg, Police Chief Jeff Beahen, City Prosecuting Attorney Chris Johnson, Economic Development Director Catherine Mehelich, City Attorney Peter Beck, and Recording Secretary Tina Allard Also Present: Planning Commissioner Dana Anderson HRA Commissioners: Stewart Wilson, Larry Toth, Louise Kuester, and Jean Lieser HPC Commissioner Lance Lindberg 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 11/20/2006 Agenda Mayor Klinzing noted the following changes: Pay Estimates removed from Consent and added after Open Mike; a resignation added to Other Business; and an Ice Arena Update added to Council Updates. 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 GUMPHREY AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE THE FOLLOWING CONSENT AGENDA: 3.1 CHECK REGISTER 3.3. SPECIAL ASSESSMENT REAPPORTIONMENTS AS OUTLINED IN THE STAFF REPORT 3.4. INCREASE CITY ADMINISTRATOR LORI JOHNSON'S SALARY TO $113,900. MOTION CARRIED 5-0. City Council Minutes November 20,2006 Page 2 4. Open Mike . Noone appeared for Open Mike. 3.2. Pay Estimates Councihnember Farber questioned if funds have been set aside to pay for the rest of the unfinished items in the HigWand Avenue Reconstruction project. He stated there are still some cracked driveways, sod, and signage issues that need to be resolved. It was the consensus of the Council to discuss the HigWand Avenue project and pay estimates at the December 4, 2006 City Council meeting when the city engineer can be present. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE PAY ESTIMATES AS OUTLINED IN THE STAFF REPORT WTH THE EXCEPTION OF THE HIGHLAND AVENUE RECONSTRUCTION PROJECT. MOTION CARRIED 5-0. 5.1. Authorize Hiring of Finance Director Candidate-Timothy Simon Ms. Johnson stated an interview committee is recommending the city hire Timothy Simon as finance director. She reviewed his prior job experience, then introduced Mr. Simon. Mr. Simon stated he is excited to work with Council, employees, and citizens. . MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER FARBER TO HIRE TIMOTHY SIMON AS FINANCE DIRECTOR WITH THE TERMS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. 6.1. Downtown Revitalization Project A. Parking Analysis Mr. Clark outlined the three phases of parking issues expected in the downtown area over the next 3-5 years based on assumptions made by city staff. He stated the city should establish a proactive policy for these phases so staff can act, rather than react, in an appropriate and timely manner. He requested the following from Council: . review and make recommendations on the assumptions outlined in the staff report create a task force to establish long term parking solutions cap the issuance of parking permits temporarily so Chief Beahen and a team can review and modify the existing permitting process . . Councilmember Farber stated the timeline for resolving parking issues should be condensed. He stated additional residential parking will be required when the Jackson and Bluff Blocks are completed in the spring. He stated if there is no downtown parking, businesses may . City Council :Minutes November 20, 2006 Page 3 . suffer. He further expressed concern with the safety of pedestrians crossing Highway 10 and doesn't want the city to rely on the parking lots across the highway. Councilmember Gumphrey concurred with Council.member Farber. He stated he would like to see the timeline accelerated and the parking across from Highway 10 taken out of the equation. Chief Beahen stated the city is looking at pedestrian crossing improvements with the state but there have been issues with the railroad crossing located nearby. He stated safety concerns with pedestrians crossing the highway and noted that state highways are not intended to have pedestrian traffic. He stated a pedestrian crossing would help but is costly and suggested creating additional parking on the west side of downtown. Councilmember Motin stated he has no issues with the timeline. He stated a ramp may be needed in the future but the city needs to find the funds to build a ramp and he is not in favor of a ramp unless some of the cost can be assessed to downtown property owners. He stated there are enforcement issues with employee parking because downtown business owners don't want the city to enforce parking regulations. Council.member Motin stated there are too many unknowns at this time to know how to resolve future parking issues. He stated concerns with rushing to turn existing buildings into parking lots when the city may want to continue with redevelopment. Council.member Dietz stated he doesn't object to spending some funds to make pedestrian crossing safe on Highway 10. He questioned if Mn/DOT would be willing to cost participate for funding. . Chief Beahen stated he was unsure if Mn/DOT would assist with any funding. He stated Mn/DOT is trying to eliminate crossings on highways. Keith Holme, property owner of Kemper Drug-Stated safety concerns with pedestrians crossing the highway. He started that during the winter snow builds up on the sidewalks and there is no where for pedestrians to safely wait for traffic except on the highway. He requested to be on the task force. Tom Robertson 9956 153rd Avenue-Suggested the city install a pedestrian bridge. Mayor Klinzing stated a pedestrian bridge creates issues with the disabilities act, funding, and possible changes with the realignment of Highway 10. ChiefBeahen stated the snow buildup along the highway is a concern and it would be difficult for the city to keep up with cleaning up after Mn/DOT plows through each time. HRA Commissioner Larry Toth volunteered to serve on the Advisory Focus Group as the HRA representative. Council.member Farber stated he would like the solution portion for future parking issues moved up whether they are acted upon or not. . MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER GUMPHREY TO ESTABLISH AN ADVISORY FOCUS GROUP, CONSISTING OF EXISTING DOWNTOWN BUSINESS OWNERS, REPRESENTATIVES FROM THE NEW REDEVELOPMENT PROJECT, AND City Council Minutes November 20, 2006 Page 4 STAFF IN ORDER TO ESTABLISH LONG-TERM PARKING POLICIES, REGARDING ENFORCEMENT AND PARKING PERMITS WITH THE FOLLOWING TWO APPOINTMENTS TO THE FOCUS GROUP: . . · LARRY TOTH · KEITH HOLME MOTION CARRIED 5-0. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER DIETZ TO PUT A TEMPORARY CAP ON PARKING PERMITS. MOTION CARRIED 5-0. B. Loan Program Ms. Mehelich stated the Council asked staff to consider a grant or loan program to assist downtown business owners. She stated staff had discussions with the city's auditor and legal counsel regarding any issues with the city providing financial assistance in the form of a grant to businesses. She stated the auditor conftrmed that the city has no statutory authority to provide grants to businesses for their hardship as a result of a construction project. Ms. Mehelich stated the city would need to establish findings for a public purpose on the grant. Ms. Mehelich reviewed a draft loan program for existing businesses for downtown revitalization with recommendations by the EDA as outlined in the staff report. She stated the city has received limited interest on the loan program from the downtown businesses. Councilmember Motin stated the personal guarantees the EDA is requiring are personal financial statements of the owners. . MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THE DOWNTOWN BUSINESS REVITALIZATION LOAN PROGRAM AS OUTLINED BELOW: PURPOSE: THE DOWNTOWN BUSINESS REVITALIZATION LOAN PROGRAM IS AVAILABLE TO BUSINESS OWNERS IN THE DOWNTOWN DISTRICT (DD) AS A SHORT-TERM, LOW INTEREST OPERATING LOAN THAT COULD BE USED TOWARD WORKING CAPITAL, CASH FLOW, BUSINESS SUSTAINABILITY AND CAPITAL EXPENDITURES. AMOUNT: UP TO $25,000. RATE: 3%. TERM: 2- YEARS. CRITERIA: 1. PERSONAL GUARANTEE OF THE BORROWER WILL BE REQUIRED. . . . . City Council Minutes November 20, 2006 Page 5 2. APPLICATIONS TO BE ACCEPTED UNTIL DECEMBER 31, 2007. 3. IN ADDITION TO THE PERMITTED FUND USES LISTED IN SECTION U(l) OF THE MICRO LOAN FUND POLICY, THE PERMITTED FUND USES FOR THIS SPECIFIC PROGRAM INCLUDES WORKING CAPITAL, REFINANCING OF EXISTING DEBT, AND INVENTORY. 4. BORROWER MUST BE LOCATED IN THE DOWNTOWN DISTRICT (DD). MOTION CARRIED 5-0. 6.2. Resolution for Redevelopment District No.2 and Project Plan for Medical Technology Center. Elk Path Business Park Third Addition-Public Hearing Ms. Mehelich stated Sherburne County is requesting approval of the redevelopment program for redevelopment district 2 and project plan for a technology center for UnitedHealth. She stated this project is similar to the Target Technology Center that was approved in 2005. Mayor Klinzing opened the public hearing. Brian Benson, Sherburne County Administrator-Stated he is pleased with the support of Elk River city staff and that the purchase agreement is contingent upon the city permitting approvals. Mayor Klinzing closed the public hearing. Councilmember Dietz questioned what the county intends to do with the rest of the property they own. Mr. Benson stated it would be for future county expansion. Mayor Klinzing expressed her congratulations to the new business coming to Elk River. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO ADOPT RESOLUTION 06-126 FINDING THAT THE SHERBURNE COUNTY HOUSING AND REDEVELOPMENT AUTHORITY'S REDEVELOPMENT PROGRAM FOR REDEVELOPMENT DISTRICT NO.2 AND PROJECT PLAN FOR THE TECHNOLOGY CENTER CONFORM TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY OF ELK RIVER. MOTION CARRIED 5-0. City Council Minutes November 20, 2006 Page 6 6.3. Request for Approval of a Redevelopment Plan for Downtown Elk River Redevelopment Project Dated November 1. 2006-Public Hearing . Mr. Clark stated the HRA, Planning Commission, and City Council must review and adopt a redevelopment plan prior to any action that would result in land acquisition and other types of traditional redevelopment objectives. Mayor Klinzing opened the public hearing. There being no one to speak to this issue, Mayor Klinzing closed the public hearing. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE REDEVELOPMENT PLAN FOR DOWNTOWN ELK RIVER REDEVELOPMENT PROJECT DAT~D NOVEMBER 1, 2006 BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, MINNESOTA, INCLUDING THE FINDINGS OF FACT AS ESTABLISHED WITH THE PLAN. MOTION CARRIED 5-0. 6.4. Request by Edward Dulak (preserve Ponds) Ms. Cartney stated the applicant is requesting a zone change and preliminary plat approval for Preserve Ponds. She discussed natural resources, parks, utilities, grading, landscaping, and the Planning Commission recommendation. A. Ordinance to Approve Zone Change from RId to RIc (Single Family Residential). Public Hearing-Case No. ZC 06-05 . Mayor Klinzing opened the public hearing for the zone change. Ross Abel, John Oliver and Associates-Stated concerns with a 50' trail outlot because it will affect the buildability of two lots. He stated he would prefer the trail to be an easement. He stated further concerns with the energy easement along Block 3 and how it may inhibit some of the homes from building decks. Mayor Klinzing closed the public hearing. Councilmember Farber questioned why the 50' trail outlot is needed when there is a trail proposed just to the east of the outlot. Mr. Leeseberg stated the Parks Commission had concerns with pedestrians crossing over a county road. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER MOTIN TO ADOPT ORDINANCE 06-13 AMENDING THE CITY OF ELK RIVER ZONING MAP TO REZONE CERTAIN PROPERTIES TO R1C (SINGLE FAMILY RESIDENTIAL), CASE NO. ZC 06-05. MOTION CARRIED 5-0. B. Preliminary Plat Approval (preserve Ponds). Public Hearing-Case No. P 06-1 Mayor Klinzing opened the public hearing for the preliminary plat. There being no one to speak to this issue, Mayor Klinzing closed the public hearing. . City Council Minutes ~over.nber20,2006 Page 7 . CounciImember Farber stated he doesn't see the need to have two trails located near each other. Mayor Klinzing concurred. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE PRELIMINARY PLAT FOR PRESERVE PONDS, CASE NO. P 06-1 WITH THE FOLLOWING CONDITIONS: 1. ALL COMMENTS AND CONDITIONS OF THE CITY ENGINEER'S MEMO DATED NOVEMBER 8, 2006 SHALL BE ADDRESSED. 2. ALL COMMENTS AND CONDITIONS OF THE SHERBURNE COUNTY MEMO DATED OCTOBER 5, 2006 SHALL BE ADDRESSED. 3. THE DEVELOPMENT SHALL MEET ALL APPLICABLE BUILDING CODES. 4. THE DEVELOPMENT SHALL MEET ALL APPLICABLE FIRE CODES. THE FIRE CHIEF SHALL VERIFY LOCATION OF ALL FIRE HYDRANTS, AND MAY REQUIRE ADDITIONAL HYDRANTS NECESSARY TO PRESERVE THE HEALTH AND GENERAL WELFARE OF THE RESIDENTS. . 5. IN ADDITION TO THE EASEMENTS SHOWN IN THE PRELIMINARY PLAT, THE FOLLOWING EASEMENTS SHALL BE PROVIDED: A. A 15 FOOT TRAIL EASEMENT IS REQUIRED ON BOTH SIDES OF COUNTY ROAD 40. B. A 15-FOOT LANDSCAPE EASEMENT SHALL BE PROVIDED ALONG COUNTY ROAD 40 WITH THE PROPOSED LANDSCAPING AND A BERM. 6. AN EARTH BERM OF AN UNDULATING HEIGHT OF 2-4 FEET SHOULD BE INSTALLED ON LOTS 8-12 BLOCK 1, AND LOT 14, BLOCK 3. 7. A WETLAND BUFFER OF 25 FEET APPLY TO ALL WETLANDS AND A STRUCTURE SETBACK OF 20 FEET FROM THE BUFFER APPLIES. 8. THE APPLICANT SHALL PROVIDE DOCUMENTATION THAT SANITARY SEWER AND WATER WILL BE AVAILABLE FROM THE RIVER PARK DEVELOPMENT TO SERVE THIS DEVELOPMENT. . 9. STORM DRAINAGE CALCULATIONS ARE REQUIRED PRIOR TO FINAL PLAT APPROVAL. City Council Minutes November 20, 2006 Page 8 10. A NPDES PERMIT APPLICATION FOR STORM WATER POLLUTION PREVENTION PLAN (SWPPP) SHALL BE SUBMITTED PRIOR TO FINAL PLAT APPROVAL. . 11. ALL REQUIRED SUBDIVISION/PARK INFORMATION SHALL BE PROVIDED IN AN ELECTRONIC FORMAT (.DWG FILE) AS REQUIRED BY THE CITY ORDINANCE AND LAND USE APPLICATION PRIOR TO RECORDING OF THE PLAT. 12. THE FOLLOWING FEES SHALL APPLY: A. PARK DEDICATION SHALL BE IN THE FORM OF CASH AT THE RATE APPLICABLE AT THE TIME OF FINAL PLAT RECORDING. B. A SEAL COAT FEE SHALL BE PAID, AT THE RATE APPLICABLE AT THE TIME OF FINAL PLAT RECORDING, PRIOR TO RELEASING THE PLAT FOR RECORDING. 13. A LETTER OF CREDIT IN THE AMOUNT OF 100% OF THE COST OF THE IMPROVEMENTS SHALL BE SUBMITTED PRIOR TO THE RELEASING OF THE PLAT FOR RECORDING. 14. THE APPLICANT SHALL EXECUTE A DEVELOPER'S AGREEMENT OUTLINING THE TERMS AND CONDITIONS OF APPROVAL. 15. APPROVED STREET SIGNAGE PLAN SHALL BE SUBMITTED PRIOR TO FINAL PLAT APPLICATION. . 16. NO BUILDING IS ALLOWED ALONG THE ENERGY EASEMENT OF BLOCK 3. MOTION CARRIED 5-0. 6.5. Request by Elk River Holdings (Liberty Heights Estates of Elk River) A. Resolution to Amend the Land Use Map for Certain Property from RR ()l.ural Residential) to UR (Urban Residential). Public Hearing-Case No. LV 06- B. Conditional Use Permit for Residential Planned Unit Development. Public Hearing-Case No. CU 06-02 C. Ordinance to Amend the Zoning Map to Rezone Certain Property from RIa (Single Family Residential) to PUD (planned Unit Development) Public Hearing-Case No. ZC 06-01 D. Preliminary Plat Approval Public Hearing-Case No. P 06-03 Mr. Barnhart stated the applicant has agreed to continue this item to the December 4, 2006 Council meeting. He stated this item was advertised as a public hearing and that the hearing needs to be held and continued to December 4. Mayor Klinzing opened the public hearing on all the items. . City Council :Minutes November 20, 2006 Page 9 . Duane Hoff, 9643 Viking Boulevard-Stated concerns with the setbacks on county roads due to high speed traffic. He stated Anoka County is not in favor of creating an access onto a county road at the county line. He stated concerns with added traffic. Chris Holzem, 19256 Baugh Street-Stated concerns with the lot sizes. He stated he lives in Bums Township and he will have 14 lots butting up to his property. He would like to see wider frontages and deeper lots. He stated he would also like to see some screening or a buffer along his property lines. Ron Bratlie, 19863 Dodge Street-Stated he was speaking on behalf of the school district. He stated the district is in favor of the Liberty Heights Estates plat. Councilmember Dietz questioned if the school would be building on the site being offered to them by the developer. Mr. Bratlie stated it may be 7~10 years before a middle school would be needed at this location. Councilmember Motin questioned if Mr. Bratlie was speaking for the school board. He stated the city would not be considering adding this development to the urban service area if it were not for the developer donating land to the school district for a new school. Mr. Bratlie stated he is speaking for the school superintendent and that he hasn't heard that the School Board was not supportive. He stated the school being built will depend on the growth and fmances of the district along with other needs in the district. . Mayor Klinzing continued the public hearing to the City Council meeting on December 4, 2006. Mayor Klinzing stated county road permits are issued by the county and not determined by the city. Councilmember Gumphrey directed staff to meet with representatives from Bums Township and Anoka County. It was the consensus of the Council to send another notification to abutting property owners to let them know this item will be on the December 4, 2006 Council meeting. Councilmember Motin stated he would like this item to go back to the Planning Commission for review prior to the Council meeting. He stated he would like the Planning Commission to look at the plat as if it were already approved but to pick out specific things they would like to see changed with the plat. He stated the denial by the Commission was vague. Councilmember Gumphrey stated he would like to see the east end of the plat near the county border to be less dense. Planning Commissioner Dana Anderson reviewed the action taken at the Planning Commission meeting. He listed the following concerns: . . Urban service area abutting rural areas in another community Burdens on the traffic system . City Council Minutes November 20,2006 Page 10 . Public safety issues Schools located across from each other over a county road and crossing safety Favor ofR1d to blend with neighboring communities . . . Brent Christianson, 18835 Cleveland Street-Stated when Burns Township was building along his property, they did not give consideration to him so he doesn't think Elk River should give consideration to them. Mayor Klinzing stated the applicant has indicated in the past that he would keep the lots at 14,000 sq. ft. and she would like to see most of the lots at 14,000 sq. ft. She stated the Council has agreed to allow this plat into the urban service area if the lots were larger and the applicant gave land to the school district. The Council took at 10 minute recess at 8:55 p.m. 6.6. Request by L & K RV (Lori Stephenson) for Conditional Use Permit for Trailer Sales, Public Hearing-Case No. CU 06-26 Ms. Cartney stated the applicant is requesting a conditional use permit to store and sell travel trailers. She provided an overview of the site and discussed parking, circulation, and landscaping. She stated at the Planning Commission meeting, the applicant requested an increase in the storage of trailers to 25 but that the Planning Commission did not formally increase the amount. Mayor Klinzing opened the public hearing. There being no one to speak to this issue, Mayor Klinzing closed the public hearing. . Lawrence Davidson, applicant stated he would like to be able to store 25 trailers. Planning Commissioner Dana Anderson stated the Planning Commission was okay with allowing the 25 trailers. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE CONDITIONAL USE PERMIT, CASE NO. CU 06-26 WITH THE FOLLOWING CONDITIONS: 1. ALL APPLICABLE BUILDING CODES SHALL BE MET. 2. ALL APPLICABLE FIRE CODES SHALL BE MET. 3. THE PARKING LOT SHALL HAVE DELINEATED 5 PARKING STALLS. 4. SIX LANDSCAPE TREES SHALL BE INSTALLED, 3 OVERSTORY TREES AND 3 ON THE OUTDOOR STORAGE SIDE. 5. THE OUTDOOR STORAGE AREA SHALL CONSIST OF CLASS V GRAVEL. 6. IF THE DISPLAY AREA IS MOVED FROM THE WESTERN SIDE OF THE PROPERTY IT MUST BE APPROVED BY CITY STAFF. . . . . City Council Minutes November 20,2006 Page 11 7. UP TO 25 TRAILERS CAN BE STORED ONSITE. MOTION CARRIED 5-0. 6.7. Request by William Matthews for Conditional Use Permit for Used Auto Sales and Classic Car Restoration. Public Hearing-Case No. CU 06-28 Mr. Leeseberg stated the applicant is requesting a conditional use permit for an auto sales business. He discussed parking, landscaping, and the Planning Commission recommendation. Mayor Klinzing opened the public hearing. There being no one to speak to this issue, Mayor Klinzing closed the public hearing. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE CONDITIONAL USE PERMIT, CASE NO. CU 06-28 WITH THE FOLLOWING CONDITIONS: 1. ALL COMMENTS OF THE CITY ENGINEER SHALL BE ADDRESSED. 2. THE BUILDING SHALL MEET ALL APPLICABLE BUILDING CODES. 3. THE BUILDING SHALL MEET ALL APPLICABLE FIRE CODES. 4. ALL VEHICLES SHALL BE PARKED ON AN APPROVED SURFACE (NOT LANDSCAPED AREAS) WITHIN THE PROPERTY PER SETBACK REQUIREMENTS. 5. NO VEHICLES SHALL BE PARKED IN THE PUBLIC RIGHT-OF-WAY OR ON SIDEWALKS. 6. NO OUTDOOR STORAGE SHALL BE ALLOWED. 7. ALL VEHICLE MAINTENANCE AND/OR RESTORATION SHALL OCCUR WITHIN THE BUILDING. 8. TREES SHALL BE PLANTED ON THE PROPERTY, AS INDICATED ON STAFF EXHIBIT "A". 9. ALL SIGN PERMITS SHALL BE OBTAINED PRIOR TO ANY SIGNAGE BEING INSTALLED. 10. .ADVERTISING ON THE VEHICLES SHALL BE LIMITED TO ONE SIGN PER VEHICLE NOT EXCEEDING 94 SQUARE INCHES. 11. NO SIGNAGE AND / OR DECORATIONS OF ANY TYPE, SUCH AS BUT NOT LIMITED TO, BANNERS, PENNANTS, FESTOONS, PAINTED WINDOWS AND BALLOONS SHALL BE ALLOWED ON THE VEHICLES. City Council Minutes November 20, 2006 Page 12 12. ALL FOR-SALE VEHICLES SHALL BE DELIVERED TO THE SITE UNDER THEIR OWN POWER. . 13. ONE-WAY TRAFFIC INTERNAL TO THE SITE WILL NEED TO BE SIGNED ACCORDINGLY. 14. THE REMAINDER OF THE ROOF AND BUILDING SHALL BE PAINTED. 15. THE INTERIM USE PERMIT AT 13479 BUSINESS CENTER DRIVE SHALL BE REVOKED SIX WEEKS AFTER A CERTIFICATE OF OCCUPANCY IS ISSUED FOR THE SUBJECT PROPERTY. 16. SITE TURF SHALL BE ESTABLISHED WITH APPROPRIATE IRRIGATION. MOTION CARRIED 5-0. 7.3. Resolution Providing for the Issuance and Sale of $3.220.000 General Obligation Bonds. Series 2006C and Levying a Tax for the Payment Thereof Ms. J ohmon introduced Mark Ruff and Sid Inman with Ehlers and Associates. Councilmember Gumphrey stated he would abstain from this vote due to conflict of interest. Mr. Ruff reviewed the city's bond rating and the bid tabulations for the issuance and sale of the $3,220,000 General Obligation Bonds Series 2006C. He recommended the Council accept the bid from Harris N.A. because they submitted the lowest interest rate on the bonds. . MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO ADOPT RESOLUTION 06-127 PROVIDING FOR THE ISSUANCE AND SALE OF $3,220,000 GENERAL OBLIGATION CAPTIAL IMPROVEMENT PLAN BONDS, SERIES 2006C AND LEVYING A TAX FOR THE PAYMENT THEREOF. MOTION CARRIED 4-0. Councilmember Gumphrey abstained. 7.2. Discuss YMCA Membership Rates for Elk River Residents Ms. Johnson stated the Council requested YMCA representatives attend this meeting in order to discuss membership rates for Elk River residents. She outlined in her staff report how the rates were determined for the draft Memorandum of Understanding (MOU) between the YMCA and the city within the last few months. She requested Council direction on these rates before the final approval of the MOU between the city and the YMCA. Councilmember Farber stated Elk River residents should get some kind of a break on membership rates due to the following reasons: . The city donated the land for the construction of a YMCA. Residents passed a referendum whereby they will be paying for a YMCA and still have to pay the same membership rates as non-residents. . . . . . City Council Minutes November 20, 2006 Page 13 Councilmember Farber stated the city has gone above and beyond in helping to get a YMCA in Elk River. Tom LaSalle, representative from the YMCA -stated the YMCA projects it will take nine years before they see any revenue. He stated if the YMCA gave a $10 discount to Elk River residents, it would be an indefinite date before they would see any revenue. Mr. LaSalle stated the YMCA offers programs for people who can't afford the fees. Ms. Johnson stated there have been a few out-af-state cases where the YMCA has provided discounts to residents. Mr. LaSalle stated the fiscal responsibility with the YMCA is in-state. Councilmember Motin suggested adding a surcharge to non-residents. He questioned what the City of Andover YMCA is doing. Mr. LaSalle stated Andover is a larger market with higher income residents. He stated marketing decisions for each YMCA are based on the size, draw, and density of the community. He stated the YMCA is not refusing to cooperate with the city on the fees but it is a matter of economics for the YMCA. Councilmember Farber stated the city has stepped up and contributed more than most other. communities. Mr. LaSalle stated the YMCA could offer more programming such as senior programming. Mayor Klinzing stated if the YMCA were to offer a discount they would not be able to move forward with their programs. She stated the city will never see a community center due to the costs. She further stated the YMCA offers sliding fee memberships for people who can't afford the regular fees. She stated the YMCA is taking all the risks for operating the facility. Councilmember Farber stated the city has also taken a risk. He stated he wants the YMCA in Elk River but noted the city could have sold the donated lot as a commercial property for a large sum. Councilmember Gumphrey stated the voters made the decision to bring the YMCA to Elk River and were aware of the fees up front. Ms. Johnson further reiterated that the referendum information for the YMCA was published in the city's newsletter. Mayor Klinzing stated when she talked to the public about the YMCA she informed them there would be no discounts for residents. Ms. Johnson stated the MOD would come to the Council and EDA on December 11, 2006. 7.4. Consider Request for Proposals for City and Prosecuting Attorney Services Councilmember Motin stated the city received three proposals for city and three proposals for prosecuting attorney services. He stated the committee recommends retaining Peter City Council Minutes November 20, 2006 Page 14 Beck with Gray, Plant, and Mooty as the city's civil attorney. He stated the committee would like to interview two firms for prosecuting attorney services. He stated the committee felt the third proposal received by city prosecuting attorney Chris Johnson would not be feasible for the city due to backup coverage issues and the probability of needing to hire additional staff in the future. . Councilmember Farber concurred. Councilmember Motin expressed concerns with the firms being a smaller size. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER MOTIN TO RETAIN GRAY, PLANT, AND MOOTY AS THE CITY)S CIVIL ATTORNEY AND TO INTERVIEW THE LAW FIRMS OF WILLIAM G. HAWKINS AND ASSOCIATES AND RANDALL, GOODRICH, AND FITZPATRICK. MOTION CARRIED 5-0. 7.1. Consider City Contribution to Flexible Benefits Plan Ms. Johnson reviewed the proposed flexible benefits plan as outlined in the staff report. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THE FOLLOWING AS OUTLINED IN THE STAFF REPORT: 1. THE FLEXIBLE BENEFITS CONTRIBUTION FOR 2007 2. HEALTH INSURANCE OPTIONS FOR 2007 . 3. CHANGE IN LIFE INSURANCE CONTRACTS TO THE STANDARD INSURANCE COMPANY EFFECTIVE JANUARY 1, 2007. 4. LIFE INSURANCE OF $10,000 FOR PAID ON-CALL FIREFIGHTERS WHO ARE NOT ALREADY COVERED BY THE CITY'S LIFE INSURANCE POLICY. MOTION CARRIED 5-0. 8. Other Business Ms. Johnson stated she received a resignation notice from City Clerk Joan Schmidt who would be retiring December 31, 2006. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER DIETZ TO ACCEPT THE RESIGNATION OF CITY CLERKJOAN SCHMIDT. MOTION CARRIED 5-0. Mayor Klinzing thanked Joan for her service in government. She stated Joan has been with the City of Elk River for three years but has been working in government for 26 years. Ms. Johnson stated she is looking for direction on filling the vacancy and would like to promote from within if possible. . . . . City Council Minutes November 20, 2006 Page 15 MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER TO RESEARCH THE VIABILITY OF HIRING AN INTERNAL CANDIDATE. MOTION CARRIED 5-0. 9. Council Updates . Ice Arena Commission Update Councilmember Farber provided an update of the Ice Arena Commission meeting held on November 8, 2006. He stated Elk River Municipal Utilities completed an energy assessment of the Arena and provided ideas to help save money on energy costs. He stated Elk River Utilities did a great job in helping the Arena to save money. 10. Staff Updates City Attorney Peter Beck thanked the Council for retaining him and his firm for civil legal services. 11. Adjournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 10:30 p.m. Minutes prepared by Tina Allard \)pJ~C /Joati Schmidt i,SitY Clerk