01-22-2008 CC MIN
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JANUARY 22, 2008
Members Present: Mayor Klinzing, Councilmembers Motin and Farber
Members Absent: Councilmembexs Zerwas and Gumphrey
Staff Present: City Administrator Lori Johnson, Planning Manager Jeremy Barnhart,
Senior Planner Sheila Cartney, City Attorney Peter Beck, Environmental
Administrator Rebecca Haug, Finance Director Tim Simon, Police Chief
Jeff Beahen, Police Administrative Captain Bob Kluntz, and City Clerk
Tina Allard
Also Present: Planning Commissioner Dana Anderson
EDA Commissioner Jeff Gongoll
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.
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2. consider 6/18/2007 Agenda
Item 3.9. was removed from the agenda.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO APPROVE THE AGENDA AS AMENDED.
MOTION CARRIED 3-0.
3. Consider Consent Agenda
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER MOTIN TO APPROVE THE FOLLOWING CONSENT
AGENDA:
3.1 JANUARY 7, 2008 MINUTES
3.2. CHECg REGISTER
3.3. PAY ESTIMATES
3.4. RESOLUTION OS-06 APPROVING PREMISES PERMIT RENEWAL
FOR THE AMERICAN LEGION POST #112
3.5. NOTICE OF QUORUM FOR YMCA LEADERSHIP RECEPTION ON
FRIDAY, FEBRUARY 1, 2008, AT 22400 MEADOWVALE ROAD, ELg
RIVER
3.6.A. JEREMY BARNHART TO ATTEND NATIONAL CONFERENCE
3.6.B. PHIL HALS TO ATTEND NATIONAL CONFERENCE
3.7. AUTHORIZATION TO ADVERTISE FOR TWO PAID ON-CALL
FIREFIGHTERS
Ciry Council Minutes page 2
January 22, 2008
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3.8. HIRE NATALIE ANDERSON PART-TIME AS ACTIVITY CENTER •
SECRETARY/RECEPTIONIST AT STEP A, PAY GRADE 3, $14.82 PER
HOUR
3.9. REMOVED FROM AGENDA
3.10. STAFF TO PREPARE AN ORDINANCE AMENDMENT TO ALLOW
PUBLIC WATER/WASTEWATER TREATMENT FACILITIES AS A
PERMITTED USE IN THE I1 ZONING DISTRICT
3.11. PURCHASE OUTDOOR WARNING SIREN IN THE AMOUNT OF
$12,257.21
3.12. APPOINT ARNE ENGSTROM AS THE SHERBURNE COUNTY
BOARD OF COMMISSIONERS REPRESENTATIVE ON THE
ENERGY CITY COMMISSION
3.]3. RENEW THE DEFERMENT OF LUCILLE LLOYD'S WESTERN AREA
ASSESSMENT AND LAKE ORONO DREDGING ASSESSMENT
MOTION CARRIED 3-0.
4. Open Mike
No one appeared for Open Mike.
5. TOINT MEETING WITH ECONOMIC DEVELOPMENT AUTHORITY
Pursuant to due call and notice therof, the meeting of the Elk River Economic
Development Authority was called to order at 6:32 p.m. by Chair Gongoll.
5.1. EDA Action-Resolution Accepting Offer on the Sale of ~2 000 000 General Obligation •
Bonds. Serves 2008A Providing for Their Issuan a and Levying a Tax for the Pavm,_ent
Thereof
Mr. Simon presented the staff report. He stated the city has maintained its AA3 rating.
Sid Inman, Ehlers & Assoaates, Inc: Stated seven bids were received and he recommended
approval of the lowest responsible bidder, Harris N.A.
MOVED BY EDA COMMISSIONER KLINZING AND SECONDED BY EDA
COMMISSIONER FARBER TO ADOPT EDA RESOLUTION 08-O1
ACCEPTING OFFER ON THE SALE OF $2,000,000 GENERAL OBLIGATION
BONDS, SERIES 2008A, PROVIDING FOR THEIR ISSUANCE AND LEVYING
A TAX FOR THE PAYMENT THEREOF. MOTION CARRIED 4-0.
There being no further business, Chair Gongoll adjourned the meeting of the Elk River
Economic Development Authority at 6:35 p.m.
5.2.A. City Council Action-Resolution Authorizing as Co_~g Disclosure with Regard to the
Issuance of $2 00 000 General Obligation Bonds Series 2008A of th EDA fox the i~ of
Elk River
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO ADOPT RESOLUTION 08-07
AUTHORIZING A CONTINUING DISCLOSURE UNDERTAKING WITH •
REGARD TO THE ISSUANCE OF $2,000,000 GENERAL OBLIGATION
City Council Minutes
January 22, 2008
Page 3
• BONDS, SERIES 2008A OF THE ECONOMIC DEVELOPMENT AUTHORITY
FOR THE CITY OF ELK RIVER, MINNESOTA. MOTION CARRIED 3-0.
B. Resolution Providing for the Issuance and Sale of $3 085 000 General Obligation Water
Revenue Refunding Bonds. Series 2008A and Pledging Net Revenues for the Security
Thereof
Mr. Simon presented the staff report. He noted that Moody's Investment Service
maintained the city's rating of AA3.
Mx. Inman reviewed the bid tabulation. He stated that because rates went down the city
needed to raise the amount of the bonds in order to increase the amount of the escrow to
meet the payoff. He stated $87,000 was the projected savings but the actual savings was
approxunately $140,000. He stated the corrected issuance and sale amount should be
$3,085,000. He noted that UMB Bank was the lowest responsible bidder.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO ADOPT RESOLUTION 08-OS PROVIDING
FOR THE ISSUANCE AND SALE. OF $3,085,000 GENERAL OBLIGATION
WATER REVENUE REFUNDING BONDS, SERIES 2008A AND PLEDGING
NET REVENUES FOR THE SECURITY THEROF TO UMB BANK OUT OF
KANSAS CITY. MOTION CARRIED 3-0.
6.1. Request by Kevin Meland for Extension of Interim Use Pernvt_Case No CU 08-01-Public
Hearing
• Ms. Haug presented the staff report and noted that staff and the Planning Cotmnission
recommend denial of the Interim Use Permit.
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 MAYOR
KLINZING TO DENY THE EXTENSION OF INTERIM USE PERMIT, CASE
NO. CU 08-O1 BASED ON THE FOLLOWING FINDINGS:
1. THE MINING ACTIVITY WILL EXTEND BEYOND THE TIMEFRAME
THAT IS APPROPRIATE FOR AN INTERIM USE PERMIT AND A
FORMAL CONDITIONAL USE PERMIT IS REQUIRED.
2. THE USE IS NOT CONSISTENT WITH THE COMPREHENSIVE PLAN
AND IS NOT ZONED FOR MINERAL EXCAVATION.
MOTION CARRIED 3-0.
6.2. Reduest by Waconia Farm Supply for Conditional Use Permit for Expansion of Use to
Include Truck Rentals Case No. US 08-03-Public Heatrn~
Ms. Caxmey presented the staff report. She noted that staff added a third condition in
response to Planning Commission concerns, although they forwarded a recommendation of
• approval.
City Council Minutes
January 22, 2008
Page 4
Mayor Klinzing opened the public hearing. •
Brad Bjotkman, Business Owner in Martin Plaza-Stated concerns with the following items:
1. Notification process: He stated the property owner and many of the business
owners in Martin Plaza did not receive notification of this request and suggested a
change in the city's notification process.
2. Statement in the letter from Waconia Farm Supply: He stated the letter indicates
that truck rental is not available in Elk River but noted there were two that were
easily accessible.
3. Concern with the size of the trucks and their storage location when not in use.
He further stated he is not opposed to this request if no travel is allowed across the Martin
Plaza property. He stated the farm supply business constantly parks their vehicles in front of
the Martin Plaza storefronts. Mr. Bjorkman also expressed public safety concerns with the
traffic patterns and the children that attend the home school in Martin Plaza. He further
suggested that delivery and pickup of the trucks be located on the east side of the property.
He stated he has a petition from eight of the business owners. (T'his petition was never
submitted to the city). He requested the following two conditions be added to the
conditional use permit:
1. All rental trucks are required to be picked up and delivered on the east side of the
pazking lot.
2. All employees are prohibited from driving across the Martin Plaza property.
Mike Loscheider, General Manager of Waconia Farm Supply-Questioned where the right- •
of-way is located on the Martin Plaza property and whether they own it. He stated many of
the Maztin Plaza customers also cross through his property and it would be difficult to
direct customers on the route they should take. He suggested installing concrete barriers but
Eelt it would be detrimental to both businesses.
Wally Kadtowski, Budget Truck Rental-Stated there would be 4-5 trucks at the site, which
should be rented out about 55% of the time. He stated the truck sizes range from 10'-24'
but the 24' long truck would actually be about 29' counting the cab.
Chip Martin, Martin Plaza Property Owner-Stated there is no right-of--way on his property.
He stated the property that isn't in his ownership is leased from the state. (Phis would be a
few feet of property located along the front of Martin Plaza and pazallel to Highway 10.)
Mayor Klinzing closed the public hearing.
Councilmember Morin stated he doesn't want to approve this request for the reasons Mr.
Bjoxkman listed. He is concerned with the unknown factors regazding the right-of--way,
traffic patterns, and the trucks looking like a large advertising sign along the highway.
Councilmember Farber concurred and asked Planning Commissioner Dana Anderson about
the Commission's discussion on this topic.
Mr. Anderson stated he was concerned about the billboard advertising appearance of the
trucks along the highway. He stated the Commission was concerned about safety and other •
items stored on the property, such as a dumpster and port-a-potty.
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City Council Minutes Pa e 5
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January 22, 2008
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Mayor Klinzing stated she didn't want to deny the request and felt the truck rental would be
a good service to residents. She suggested working out a better plan and addressing some of
the concerns expressed. She suggested limiting the amount of trucks allowed and moving
the location of where to park them when not in use.
Councilmember Farber concurred and would like to see answers regarding the right-of-way
and easements.
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER MOTIN TO CONTINUE THIS REQUEST TO THE
FEBRUARY 19, 2008, COUNCIL MEETING. MOTION CARRIED 3-0.
Mx. Beck noted a letter regarding the 60-day extension would be sent to the applicant.
The applicant was asked to address the following:
^ Right-of--way
^ Whether they could have fewer trucks
^ A survey of the property be completed
^ Reconfiguration to allow better traffic patterns throughout property
^ Running the truck operation from the east side of the property
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6.3. Request by City of Elk River for Ordinance Amendment Regarding_Subdivision Approval
Case No. OA 08-01-Public Hearian
Mr. Barnhart presented the staff report and noted the Planning Commission recommended
to keep the extension to one year.
Mx. Beck noted that state statute sets the timeframe for extensions to one year but the city
could be more generous.
Mayor Klinzing opened the public hearing. There being no one to speak to this issue, Mayor
HIinzing closed the public hearing.
Councilmember Morin stated he originally requested the change in order to be consistent
with Sherburne County and questioned the harm in extending it to two years.
Planning Commissioner Anderson stated the Commission didn't see any compelling reasons
to lengthen the extension to two years and felt better about being able to review each plat on
a case-by-case basis.
MOVED BY MAYOR KLINZING AND SECONDED BY COUNCILMEMBER
MOTIN TO ADOPT ORDINANCE 08-O1 AMENDING SECTION 30-374 OF
THE ELK RIVER CITY CODE RELATING TO APPROVAL OF FINAL PLAT
AS DRAFTED EXCEPT THAT THE EXTENSIONS ARE REQUIRED TO BE
FILED WITHIN ONE YEAR. MOTION CARRIED 3-0.
6.4. Request by Citv of Elk River for Ordinance Amendment Relating to Rezoning of Certain
Property from Al (Agricultural Conservation) to R la (Single Family Residential) Case No
ZC 08-01-Public Hearian
• Mr. Barnhart presented the staff report.
Citq Council Minutes
January 22, 2008
Page 6
Mayor I{linzing opened the public hearing. There being no one to speak to this issue, Mayor •
Klinzing closed the public hearing.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO ADOPT ORDINANCE 08-02 AMENDING
THE ZONING MAP TO REZONE CERTAIN PROPERTIES AS DESCRIBED,
CASE NO. ZC 08-01. MOTION CARRIED 3-0.
7.1. Administrative Hearing for Aldi Foods Inc Rega_*ding Alcohol Compliance Check
Ms. Allard presented the staff report.
Bill Duesenberg, District Manager for Aldi's-Stated that Aldi's had just opened up and has
all new staff members. He stated there are 45 stores in his division with 23 of them in
Minnesota and this is the only compliance check they have ever failed. He apologized to the
Council and asked them to consider waiving the penalty. He stated he has setup training
through Sherburne County for all the Aldi's employees in his district.
Councilmember Farber stated it wasn't fair to have the other four failed licensees pay the
penalty and then reduce it for Aldi's.
Councilmember Morin concurred and stated he didn't see any special circumstances that
should be considered to deviate from the penalty.
Mayor Klinzing stated the Council can't deviate from the penalty unless there aze mitigating
circumstances and she didn't feel there were any in this case. •
Mr. Beck stated there should be a resolution denying the appeal and enforcing the penalty as
provided in the ordinance.
MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER MOTIN TO DENY THE APPEAL AND TO ENFORCE A
$500 PENALTY TO ALDI FOODS, INC. FOR AN ALCOHOL COMPLIANCE
VIOLATION ON NOVEMBER 15, 2007. MOTION CARRIED 3-0.
7.2. Consider Tobacco License fo Ali Sadeq Al's Smoke hop Inc
Ms. Allard presented the staff report.
Councilmember Farber questioned the position of the U.S. Attorney.
Chief Beahen stated the U.S. Attorney's office responded by stating it is not their position to
give or not give approval to any process the Council may be involved in. He stated they
adamantly denied getting involved in this matter.
Mr. Beck stated Mr. Sadeq indicated he has no affiliation with Sabry Wazwaz and suggested
a condition to the license stating that the city would have grounds to consider revocation of
the license if it became aware of Mr. Wazwaz, or anyone else not meeting the qualifications
for a license, having any ownership or management rights and responsibilities in the
business.
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City Council Minutes
January 22, 2008
Page 7
• MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO APPROVE THE TOBACCO LICENSE TO
ALI SADEQ FOR AL'S SMOKE SHOP, INC., WITH THE CONDITION:
1. THAT THE CITY WOULD HAVE GROUNDS TO CONSIDER
REVOCATION OF THE TOBACCO LICENSE IF IT BECOMES AWARE
OF MR. WAZWAZ, OR ANYONE ELSE NOT MEETING THE
QUALIFICATIONS FOR A LICENSE, HAVING ANY OWNERSHIP OR
MANAGEMENT RIGHTS/RESPONSIBILITIES IN THE BUSINESS.
MOTION CARRIED 3-0.
Councilmember Motin stated he would like written confirmation that the purchase of the
business from Mx. Wazwaz to Mr. Sadeq is complete.
Councilmember Farber thanked staff for their time and effort on this item.
7.3. Call Special Meeting for Monday February 4. 2008_ at 5.30 tz.m. to Continue Planning
WoxkshT
Ms. Johnson presented the staff report and questioned the Council if the Archeological Dig
presentation should be included on this agenda due to the amount of material that needs to
be covered.
The Council requested the presentation be moved to the March 3 Council meeting
• MOVED BY COUNCILMEMBER FARBER AND SECONDED BY
COUNCILMEMBER MOTIN TO CALL A SPECIAL MEETING FOR 5:30 P.M.,
FEBRUARY 4, 2008 IN ORDER TO HOLD A REGULAR BUSINESS MEETING
AT CITY HALL AND THEN TO MOVE TO THE ELK RIVER CHAMBER OF
COMMERCE OFFICES FOR A SPECIAL PLANNING WORKSHOP. MOTION
CARRIED 3-0.
7.4. Consider Micro Loan for Nicole's FinishingTouch Salon
Ms. Johnson presented the staff report.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER FARBER TO APPROVE A $25,000 MICRO LOAN TO
NICOLE'S FINISHING TOUCH SALON, INC., WITH THE TERMS
OUTLINED IN THE STAFF REPORT. MOTION CARRIED 3-0.
8. Other Business
There was no Other Business.
9. Council Updates
Councilmember Motin announced that February 5 has been set as a caucus date.
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City Council Minutes
January 22, 2D08
10. Staff Ugdates
Yazd and Commission Update
Ms. Allard presented the staff report.
Councilmember Motin stated the Council should interview all the applicants.
Councilmember Farber concurred.
The interviews for appointment to boazds and commissions will be held on March 3 in a
worksession meeting held after the regular Council meeting. The Council will pick the
corntnission members at the following meeting on March 10.
Library Award
Ms. Johnson noted that the new Library received an Honorable Mention award from the
2007 Governor's Award for Excellence in Waste and Pollution Prevention. She stated two
representatives were invited to attend the ceremony and any Councilmembers interested in
attending should contact her by January 28.
Fair Committee
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Ms. Johnson stated the Sherburne County Board appointed a Fairboazd Committee and she
was chosen as a member of the committee. She stated her role would deal any issues
regarding the current fairgrounds land located in Elk River when it is vacated by the county. •
11. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 7:55 p.m.
J /!"'
Tina Allard
Ciry Clerk
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