INFORMATION 05-21-2007
MEETING OF THE ELK RIVER
HERITAGE PRESERVATION COMMISSION
HELD AT THE ELK RIVER CITY HALL
Tuesday, April 3, 2007
Members Present:
Chair Lance Lindberg, Kristin Harris, Matt Christiaansen, Molly Nadeau-
Peterson and Steve RoWf, Councilman Larry Farber
Members Absent:
Jeff Gongoll and Kurt Kragness
Staff Present:
Rebecca Haug and Nicki Blake-Bradley
1. Call Meeting- to Order
Elk River Heritage Preservation Commission was called to order at 5:39 p.m.
2. Consider April 3. 2007 HPC Agenda
Commissioner Nadeau-Peterson questioned whether the priorities item included the policy
recommendations. Rebecca stated that it did. Commissioner Nadeau-Peterson requested the
addition of two items. She would like to speak about the National Prese:rvation Conference
and Preservation Leadership Training.
MOTION BY COMMISSIONER ROHLF AND SECONDED BY COMMISSIONER
HARRIS TO APPROVE THE AGENDA AS AMENDED. ALL IN FAVOR. MOTION
CARRIED.
3. Consider March 6. 2007 HPC :Minutes
MOTION BY COMMISSIONER HARRIS AND SECONDED BY COMMISSIONER
CHRISTIAANSEN TO APPROVE THE MARCH MEETING MINUTES AS
WRlTTEN. ALL IN FAVOR. MOTION CARRIED.
4. Downtown Redevelopment Task Force Update
Charr Lindberg updated the HPC regarding the upcoming Task Force meeting. He stated
that 11ichael Koop and Bonnie McDonald would be speaking for Historic Preservation. He
will also be presenting the HPC priorities/policy recommendations at this meeting.
Councilman Farber requested an update to "bring him up to speed" regarding the Policy
Recommendations. Chair Lindberg went through the tides and guidelines of the policy
recommendations to be presented to the Task Force.
Councilman Farber commented on the downtown area, stating that it is his expectation that
the area from the Bluff block to the park will be gone.
Commissioner RoWf shared his opinion that the City screwed up economically with the
cutrent projects (Bluffs and Jackson Place). He added that he feels the City needs to see
what happens with regard to parking. He expects an overall loss to the City because re-use
was not considered. Parking is the new issue and will likely only be able to be resolved with a
parking ramp (which will result in a bigger loss due to the fact that the only parking lot left
would be where the ramp would have to go).
Commissioner Rohlf continued, stating that he doesn't expect to be ridiculed, stifled, or
censored because of his feelings. He feels people should be able to give their opinions. The
lIeritage Preservation COmrrll,,aon
April-'>,2007
Page 2
City should want a wide range of ideas to keep the project legitimate. He felt that the HPC
had to fight to have the Historic speakers added to the Task Force agenda.
Comnussioner Rohlf concluded by stating that historic character involves buildings.
Buildings are a part of historic character in their design, look, ete. and there is less of a vISUal
tie-in now with the newest construction. Discussion followed regarding the height of the
buildings being constructed.
Councilman Farber commented on his opinion that the Bluff Block is "high quality" but that
Jackson Place is less so due to wood construction. Comnussioner RoWf stated that the land
under Jackson Place was donated to the City of Elk River in the 1800's for open space
(forever). He mentioned a loophole that the City used to approve the project.
Councilman Farber stated that the Council and Mayor speak of three more buildings "going
next". Commissioner Rohlf commented that the phrase "economically market driven" was a
joke because the City "gave away the farm" to get the projects underway. He added that it
didn't make sense economically.
Councilman Farber stated that he liked downtown, but unfortunately there were some bad
facades put on in the 1980's. He asked a question "where do you draw the line". The
Sunshine Depot was discussed.
Chair Lindberg conunented that the Task Force is to decide what is allowed downtown and
referenced the Maxfield study. He discussed the developers that spoke to the Task Force and
added that he called Dunbar (one of the contractors) after the meeting. Chair Lindberg
stated that Dunbar felt the old buildings should be maintained on the Bluff Block. He added
that Dunbar stated he had never seen a community that wanted to tear down their old
buildings.
Councilman Farber questioned whether it was a matter of money. Commissioner Rohlf
stated that the City found money to tear down the buildings. Commissioner Nadeau-
Peterson stated that there are grants to help rehabilitate old buildings.
Councilman Farber stated that he feels downtown has been studied to death. He added that
money would have to be put into the buildings in order to keep them.
Rebecca discussed historic districts and design guidelines.
Commissioner Rohlf stated that he feels the task force has been led in the direction to tear
down rather than rehabilitate. For example, the Bluffs is not in character with the other
buildings and is totally against the wild and scenic river district rules. He added that people
are generally against the projects. Commissioners Harris and Lindberg agreed.
Rebecca described how the policy recommendations were developed for Councilman
Farber.
5. Review HPC Priorities/Policy Recommendations
Chair Lindberg questioned whether there were any comments or questions on the policy
recommendations. A question was raised on the first page as to who is going to conduct the
economic development feasibility study and whether the HPC can be involved.
Commissioner Nadeau-Peterson questioned whether the grants could be referenced.
Heritage Pre,ervation Commission
April 3,2007
Page 3
Rebecca answered the ftrst question by stating that she expects the City would conduct the
study. Commissioner Christiaansen stated that it should be an independent contractor as an
un~affiliated third party.
Councilman Farber stated that if the City Council doesn't have a say, it could create a wedge.
Discussion followed regarding un-affiliated neutral parties. Discussion turned to design
guidelines and ordinances next.
Commissioner Rohlf requested the addition of individual landmarks to objectives number
one. Councilman Farber discussed the downtown neighborhoods and splitting lots to build
another house, ete. He stated that he does not like the new ffilXed in with the old. He added
that the city council doesn't want the modern missed with the historic regarding commercial
and asked if the HPC was working toward the residential areas also.
Commissioner RoWf stated that the ordinance currently addresses commercial properties.
He discussed standards for downtown. Chair Lindberg discussed the Comprehensive Plan
with regard to historic integrity. Commissioner RoWf added that an ordinance would need to
be developed for residential neighborhoods.
Councilman Farber commented that the HRA (Housing and Redevelopment Authority) is
looking atJack.son Avenue as commercial all the way... but they may not start until Sixth
Street.
Commissioner Rohlf stated that there has to be a historic district to apply standards to.
Councilman Farber stated that he would like to see the older homes stay. Discussion
followed regarding an ordinance for residential areas.
Commissioner Christiaansen suggested that the City Council could dictate the ordinance.
Councilman Farber stated that the City Council wants to hear recommendations from the
HPC. Comnussioner Nadeau-Peterson recommended that it be a future agenda item.
Commissioner Rohlf suggested that the city could do a blanket ordinance that new buildings
"must fit the character of the existing neighborhood". He added that staff could work on the
ordinance if it received guidance from the City Council.
Rebecca stressed that it takes involvement from the neighborhoods to make it a success.
This has been proven through the City ofSt. Cloud's experiences. Councilman Farber stated
that the character of the "Pit" is made by the homes around it... and added that the city has
put a lot of funds into the restoration of the Pit.
Discussion returned to the lot split conundrum. The city cannot "condition" the design of a
house.
Commissioner Nadeau-Peterson made a motion to add the historic neighborhoods to the
next agenda. Councilman Farber stated that he will discuss this at the next workshop session
for the City Council. He added that the lot split issue was extended to give the HPC and
HRA time to comment. The HPC (and staff) had heard nothing of this situation. Discussion
turned to Jackson Avenue and the home turn over there.
A comment was made that Maple Grove is creating what Elk River already has.
l-:leritagePresetv'iltionComrni>:sion
April 3, 2007
Page 4
Rebecca discussed putting together a power point presentation for Chair Lindberg's
presentation. She will work on one for him.
MOTION BY COMMISSIONER NADEAU-PETERSON AND SECOND BY
COMMISSIONER CHRISTIAANSEN TO ADOPT THE POLICY
RECOMMENDATIONS WITH MINOR CHANGES AS DISCUSSED. ALL IN
FAVOR. MOTION CARRIED.
6. Archaeologjcal Dig-
Dr. Rothaus has chosen the weekends of June 28 - 30d1 and July 5 - 7th. Rebecca stated that
the July weekend would not work (too many people gone for the fourth of July). Discussion
followed that the month may need to be changed. Rebecca informed the commission that
Dr. Rothaus wants to do some in depth studies (i.e. ground penetrating radar) so the costs
are higher than before. The City has given $10,000 to go forward with the dig and SCSU
will match again. The weekends listed were best for Rothaus and J oe McFarland. Discussion
followed that residents may need to be charged to participate. Food costs were discussed
and more money could be requested from the City Council. Dr. Rothaus is checking with
Joe about what weekends work best. Only offering the dig for one weekend was also
discussed. A comment was made that this is the only non-project driven archaeological dig
being conducted right now.
7. Other
Commissioner Nadeau-Peterson discussed that the National Preservation Conference is
going to be held in the Twin Cities this year from October 2 - 6. Scholarships are available
through MHS (MN Historical Society) and the Council pays for two people to attend. If
interested in attending, please let Rebecca know.
Commissioner Nadeau-Peterson discussed the Preservation Leadership Training being held
in Owatonna from June 23 - 30. She commented that perhaps Chair Lindberg would like to
go. Commissioner Rohlf questioned whether the Economic Development staff might go.
Coucilman Farber expressed his opinion that Commissioner Rohlfs suggestion was a great
idea.
A comment was made that with the National Conference coming to 11N, a statewide event
will likely be held as a one day only event. It will most likely happen in June. More
information will be forthcoming as it is received.
8. Schedule next HPC meeting and Identify Agenda Items
The next regularly scheduled meeting for the Heritage Preservation Commission will be held
on Tuesday, May 15th at 5:30 p.m. The items to be discussed include the minutes,
Downtown Redevelopment Task Force Update, Planning Commission items (if there are
any), the Archaeological Dig, and ordinance discussion if the Council directs the HPC to do
w.
9. Adjournment
Commissioner Lindberg adjourned the meeting at 7:05 p.m.
ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
May 10, 2007
Members Present: Jerry Talde, President; Jerry Gwnphrey, Vice Chair; James Tralle, Trustee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
David Berg, Water Superintendent;
Theresa Slominski, Finance Director/Office Manager;
Troy Admns, Engineering Manager; Judy McSpadden, Recording Clerk
Other Present: Wade Lovelette, Line Foreman; Mark Fuchs, Lead Lineman;
Richard Wagner, Utilities Worker; TrishaPope, Office Clerk
1. Call meetine: to order Mav 10. 2007
President Jerry Takle called the May 10, 2007, meeting to order.
2. Consider Utilities Ae:enda
James Tralle moved to approve the May 10, 2007, Utilities Agenda. Jerry Gurnphrey
seconded the motion. Motion eamed 3-0.
3. Consider Consent Ae:enda
James Tralle moved to approve the Consent Agenda as follows:
April Check Register
AprillO, 2007, Minutes
Financial Reports
Jerry Gumphrey seconded the motion. Motion carried 3-0.
5.1 Staff Up-dates
Glenn Sundeen updated commission on the recent territory acquisition of Area 17. The
s\Vitchover went well however this area will need improvements in the near future. Jerry
Gumphrey questioned the cost of upgrades in the takeover area. Glenn responded that funds
were budgeted for necessary upgrades. Target Data Center recently did a test run on their
facility. A recent' outage in Otsego was due to a contractor cutting into some three phase
cables. It was asked if the cables were located properly and Glenn responded yes, and that a
bill would be sent to them for the charges to repair the damage.
David Berg said the summer help \Vill be starting the following week and \Vill be flushing
hydrants. Maintenance on Well #5 is complete. Work continues for Irving Street rebuild
project.
Troy Adams reported a good month for Security system sales of21 \Vith 18 installations.
The locators have been busy \Vith the high volume of locates. Work for the feeder to the new
data center is ahead of schedule. The metering department is busy doing meter change-outs in
the newly acquired Area 17. Jerry Takle questioned the status on the Waco Substation. Troy
responded that the earthwork is complete and the piers are ahnost done.
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Regular meeting of the Elk River Municipal Utilities Commission
May 10, 2007
Theresa Slominski updated the commission on the check processing system. We now
have the capability to schedule automatic withdrawals per payment arrangement, and will be
testing a payment over the phone system. Theresa also informed of a way to verify social
security numbers as to if they are legit or false. James Tralle asked if we required a credit
history, staff responded no, not at this time.
Commission was informed that the General Manager would be late because of testifying in a
court case the utility is involved in. It was requested 5.2 and 5.3 of the Agenda be put on hold
Wltil the General Manager arrived, commission agreed.
6.1 Review Urue Test Results
Elk River Municipal Utilities operates and maintains four diesel generation units at our
power plant. These units are contracted to Great River Energy through a Power Transaction
Agreement at the current price of$2.75/kw/month based on the proven capacity from the
annual URGE test. The current contract expired October 31, 2003, and is extended on an
"evergreen" basis. The URGE test performed in 2007 was reviewed. The URGE tests have
steadily increased the past few years due to more maintenance and better training. Staff
consisting of Michael Price, Adam Freiberg, and Steve Zeimer did a great job performing this
URGE test, and maintaining the engines. The capacity results from this test will result in
$349,008 of arumal payments froru Great River Energy.
6.2 Review & Consider Bid Tabulation for Area 16 Cable Replacement
The Elk River Municipal Utilities and Connexus Energy have a territory acquisition
agreement. This agreement allows Elk River Municipal Utilities to acquire territory in the city
boundaries of Elk River and serve the electric load instead of Conn ex us Energy. Often these
areas contain an old or obsolete electrical system that needs to be rebuilt. This is the case for
Area 16. Plans and specifications were secured and bids were received on April 25, 2007.
Staff recommends awarding Area 16 Rebuild to MP NexLevel, LLC, the lowest responsive
bidder.
James Tralle moved to award Area 16 Rebuild to MP NexLevel, LLC the lowest responsive
bidder. Jerry Gumphrey seconded the motion. Motion carried 3-0.
6.3 Review Dental Insurance Bids
Currently, our Dental, Life, and Long Term Disability (LTD) insurance is all with
Principal Financial Group. Elk River Municipal Utilities switched from Delta Dental to
Principal Dental in 2003, and combined it with the other products of Life and L TD insurance
already placed with Principal. This year, bids were obtained from nine additional carriers.
Assurant came back with the best proposal, and it was reviewed with the insurance task group.
It represents a savings of$11,500 (split 750/0125% with the employees for the dental only),
with no change in benefits provided, and maintaining the same dental network. There is one
change that was discussed in the task group that is related to the LTD insurance. We have the
option of recognizing a "taxable bonus" on this insurance with each pay period, which
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Regular meeting of the Elk River Municipal Utilities Commission
May 10, 2007
eliminates the payouts being taxed if one becomes disabled. The "bonus" amount is
determined at $.72 for every $100 of payroll for the employee. It is included in the taxable
calculation with each paycheck and reported on the W2's (very similar to the Group Term
Life taxation). The task group felt this was a worthy option to inCOlporate for the $.01 in
premium increase to the employer, approximately $205 per year. Staff recommends the
Assurant proposal for Life, LTD, and Dental insurances.
Jerry Gumphrey moved to approve the 2007 Dental, Life, and L TD insurance to Assurant.
James Tralle seconded the motion. Motion carried 3-0.
Because of employees present it was consensus to visit 5.3 at this time.
5.3 Review Health Care Savine:s Plan
At the last commission meeting, staff was asked to seek out alternatives to the HCSP
presented, to see ifthere is a comparable product available that doesn't have mandatory
participation as a requirement. Alternative products were reviewed. The two products that
most closelyresemb1ed the HCSP were tied to a high deductible health insurauce pIau, aud the
Annuity option would not represent the same tax savings since withdrawals are taxable upon
distribution, whereas the HCSP withdrawals are not taxable. Staff recommends adopting the
HCSP as presented. Future changes to this plan would be revisited by staff.
Jerry Gumphreymoved to adopt the HCSP plan. James Tralle seconded the motion. Motion
carried 3-0.
6.5 Review 2006 Water Confidence Report
The 1996 amendment to the safe drinking water act required all community water
systems to deliver an annual water quality report to their customers. The utilities provide this
information along with heightened awareness of the need to protect water resources. This
water confidence report will be included in the May utility billing. David Berg said the
utilities are very fortunate as our water quality is very good.
At this time Jeny Gumphrey had to leave for another meeting and Bryan Adams arrived.
5.2 Review & Consider Black Dirt Policy
With summer approaching, water consumption will increase due to lawn sprinkling. The
northwest area of the Twin Cities including Elk River, have very sandy soil making moisture
retention for lawns very difficult. Many cities at the urging of the DNR are requiring 4" of
black dirt under lawns as a strategy to increase moisture retention and thereby conserving
water. The surrounding communities were surveyed and a majority of them do have a black
dirt policy in place.
The downside to a topsoil policy would be the increased initial cost by developer,
contractor, or homeowner, and the enforcement issue. On the upside, the cities that have an
ordinance indicate an approximate 10% savings in water usage.
The details are still being worked on with the City so this topic will be revisited in June.
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Regular meeting of the Elk River Mmricipal Utilities Commission
May 10, 2007
6.4 Review Cash Flow Projections
At the last commission meeting, our auditors presented the results of their annual utility
audit. They recommended staff continue the cash flow studies which project future revenues
and expenses to ensure the utilities have adequate financial resomces to carry on business.
The Springstad cash flow studies for both the electric and water departments were reviewed.
The result of this study is consistent with past studies, and our cash reserves continue to rise
with time for both departments. If this trend is correct, the utilities will be able to start funding
from cash reserves for some of our large projects instead ofbonding.
Other Business
There was no other business.
The next regularly scheduled meeting of the Elk River Municipal Utilities Commission
will be Tuesday, June 12, 2007.
President Jerry Takle adjourned the regular meeting of the Elk River Mmricipal Utilities
Commission at 4:35 p.m.
Respectfully submitted,
Judy McSpadden
Recording Clerk