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03-10-2008 CC MINMEETING OF THE ELK RIVER CITY COUNCIL • HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) MONDAY, MARCH 10, 2008 Members Present: Acting Mayor Motin, Councilmembers Fazbet, Gumphrey, and Zerwas Members Absenc Mayor Klinzing StaFF Present: City Administrator Lori Johnson, Finance Director Tim Simon, Police Chief Jeff Beahen, City Clerk Tina Allazd, Planner Sheila Carmey, Planning Manager Jeremy Barnhart, and Director of Economic Development Catherine Mehelich 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 6:00 p.m. by Acting Mayor Motin. 2. Consider Council Agenda The following items were added to the agenda: • Item S.1.E. Sportech • Item S.1.F. TIF Financing • • Item 5.1.G. Auburn Petition • Itetn S.1.B removed from the agenda MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE FOLLOWING CONSENT AGENDA: 3.1. CALL SPECIAL MEETING WITH THE CITY COUNCIL AND HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FOR MONDAY, APRIL 7, 2008, 6:00 P.M., COUNCIL CHAMBERS, IN ORDER TO DISCUSS FUTURE HRA WORE PROJECTS. MOTION CARRIED 4-0. 3. en Mike No one appeared for open mike. • City Council Minutes March 10, 2008 Page 2 5.I.A. Gravel PiLi*+~tg$tudy i Jpdate • Mr. Bamhart presented the staff report. He noted many of the gravel miners foresee a lengthy time for mining operations and some aze cautious about introducing development adjacent to their muvng operations due to complaint issues. Mr. Barnhart introduced several policy questions for the Councils discussion, and asked that they be discussed at a future meeting. Councilmembex Motin stated he wasn't inclined to spend infrastructure funds in the Plaisted area when the city is unsure when it will be developed commercially: Councilmember Farber stated more highway frontage is needed for commercial land and it would be expensive to install sewer and water without anyone paying for it and due to the uncertainty of when the land would be developed This item will come back to Council at a later date fox more detailed discussion of the polity direction. S.1.B. Cluster Or finance ,pdate This item was removed from the agenda due to the absence of Mayor Klinzing. 5.1.C. Flag Lot Discussion Ms. Cartney presented the staff report and reviewed possible language to prohibit flag lots. • She noted the ordinance changes wouldn't be made until May. The Council felt there was a need to prohibit this type of lot and directed staff to move forwazd with an ordinance amendment. MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY COUNCILMEMBER FARBER TO ESTABLISH A SDL-MONTH MORATORIUM ON FLAG LOTS. MOTION CARRIED 4-0. S.1.D. Dulak Proposal Mr. Barnhazt introduced Ed Dulak, developer of Liberty Heights Estates, to the Council. Mr. Dulak stated that due to market conditions, he would like to find out from the Council their interest in allowing changes to the preliminary plat For Liberty Heights Estates. He stated he would likely completely change the current plat in order to accommodate senior housing. He stated the plat would have more green space but there would be more density for housing (3 units per acre). Councilmember Moon stated he is not inclined to move forwazd with changes Councilmember Gumphrey, Farber, and Zerwas were open to reviewing changes to the plat. The Council expressed the following concerns with changes to this plan • The need to keep with some of the original concepts. . City Councl Minutes Page 3 March 10, 2008 • Three units per acre density is too high. • Whether there is actually a need for senior housing on the east end of town... • Concern for setting a precedence with other developers. Mr. Dulak indicated that he may move forwazd with some preliminarq studies. 5.1.E. S ortech Ms. Mehelich updated the Council regarding the Sportech Expansion project and financing sources. She noted Sportech has significant equipment purchase needs and stated she is looking for Council authorization to proceed with a grant application in an amount of up to $500,000 from the MN Dept. of Employment and Economic Development (DEED). MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO AUTHORIZE STAFF TO PROCEED WITH APPLYING FOR A GRANT FROM DEED. MOTION CARRIED 4-0. S.1.F. TIF Financinn Ms. Johnson stated she received a request from a developer who would like to gauge the Council's interest in providing TIF financing fox a project. She outlined the project as a 60 unit apartment building that would be located on an outiot neat to Pullman Place. Ms. Johnson stated the developer wanted the funding because he felt the Planned Unit Development requirements for an underground pazking facility and an upgraded facade were unusual and not Feasible for him. She stated the applicant proposes, in accordance with • statutory TIF requirements, that 40% of the rental units be For affordable housing at GO income requirements. She stated they would be requesting a 15 year pay-as-you-go TIF note (approximately $750,000). The Council indicated they were not interested in pursuing TIF Financing for this project. It was noted that there is an apaztment shortage in the city and this location is close to the Northstaz tail line and shouldn't have a problem being rented out. S.1.G Auburn Petition Councilmember Morin submitted a petition fox staff to review. The petition states the residents of 701-726 Aubum Place would like [o dedicate their private road to the aty for maintenance. 5.2. Update on Pinewood Golf Course Ms. Johnson stated the Mayor asked for an update on Pinewood. Because Mayor I{linzing is absent tonight due to a funeral, only an overview will be presented and a more detailed presentation will be made at a future worksession. Bill Maertz, Parks and Recreation Director and Paul Anderson, Golf Course Manager will be at that meeting to answer questions. Ms. Johnson started by stating that the golf course is in excellent condition. She stated that the General Fund will subsidize operations again this year. In order to increase revenue the number of rounds sold needs to increase. Expenditure reductions will come through new staffing procedures that have been put in place to control personal service costs. She stated operating expenses axe more difficult to reduce because they are for . grounds maintenance. There were some start-up costs that were needed when the course Gty Counal Minutes Mazch 10, 2008 Page 4 was acquired that were taken care of the first two years. The last one is planned in 2008 to • replace the pond liner. Mx. Simon provided a summary of 2007 revenues and expenditures. He further utilized history and trend data in order to forecast data fox the neat ten years. The Council expressed the following comments: • What is the city doing to increase rounds? • What is the dry doing for marketing? Ms. Johnson stated the Parks & Recreation Department has increased its mazketing to surrounding communities and is evaluating options For other types of programming for the times when the course is typically not busy. 5.3. Sick Leave Severance Ms. Johnson presented the staff report. She reviewed a survey that compared Elk River against other dies and Elk River Munidpal Utilities (ERMLJ) and noted that Elk River's severance fell below the levels offered by the other dries. She stated that depaxtrnent heads met and are suggesting that the dty's polity be similaz to ERMU's except that instead of starting after one year of employment it would start after two yeazs of employment She indicated that the dty's annual cost to implement the annual payout part of ERMU's polity would be approximately $25,000-30,000. The Councl agreed with increasing the severance payout at termination as presented and • suggested looking at the annual payout issue during 2009 budget review. Ms. Johnson indicated that some suggested that converting to Paid Time Off (PT'O) and she wondered if the Council was interested in allowing staff to research that Earthen The Council agreed to allow staff to explore PTO. Coundhnember Fazbex stated that department heads who perform above and beyond their job expectations should be rewazded and questioned if they could be paid for any hours of comprehensive time over 80 that are worked. Ms. Johnson stated she has concerns with the Fair Labor Standazds Act, and that we would need to be cazeful not to cause a situation whereby exempt employees could become eligible for overtime. She said if the Councl wishes staff could draft some options for review at a future woxksession. Counalmember Gumphrey questioned if department heads could receive another 401k plan. Ms. Johnson stated it may not be allowed per state statute but she would check into it. 5.4. Coundl Open Fon~rn Endrance Sign Update Councilmember Zerwas stated a citizen's group has formed with a goal to build a dry entrance sign on the east side of town along Highway 10. He stated a site had been located • but the group still needs to meet with the property owner. City Council Minutes March 10, 2008 Page 5 • Jeff Gongoll (EDA Commissioner)-Stated the atizen's group is in the process of fomting a SO1C (3) organization in order to collect funds fox the sign. He stated they may come to the Economic Development Authority asking fox approximately $300-400. He stated this group is hoping to be involved with many community projects. 6. Other Busitess Councilmember Gumphrey noted he went to Washington D.C. to meet with legislators and that Michele Bachmann is the only one who didn't make the time to meet with him. Ms. Johnson stated Ms. Bachmann's office has not returned any of her phone calls. 7. Councilllpdates There were no Council Updates. 8. Staff Updates Ms. Johnson stated tax statements were being sent out this week and noted that the city tax rate decreased. Ms. Johnson expressed concern with Senate File 3234, which would decrease Local Government Aid by $585,D00 for Elk River. This would create a 4.5 % decrease to the dty • budget. She noted she did discuss her concerns with the League of Minnesota Cities. Ms. Johnson noted that 40 applications were received for the economic development assistant position and that Cathy and she would be proceeding with interviewing applicants. Ms. Johnson stated that eight applications were received for the community development director position. Discussion on how to proceed with the interviews will be a topic at a future meeting. Ms. Johnson stated the Annual Report would be presented on Apt$ 7, 2008, and questioned if the Council would be open to a tour of the Activity Center afterwards. The Coundl was agreeable. Coundlmember Gumphrey questioned why the Library doesn't expand its hours especially when the city spent funds on a new facility. • Councilmembex Zerwas stated a letter was sent to Great River Regional Library (GRRL) and to Sherburne County Commissioners requesting the hours be expanded. He stated the City Council Minutes Mazch 10, 2008 Page 6 Library Boazd members would be requesting that the City Council also send a letter of • support. He explained the process for setting library hours. He suggested people should send a letter to GRRL and Shexbume County Commissioners if they aze frustrated with the current library hours. Ms. Johnson noted that GRRL had to balance the demand in Sherburne County against other counties who may not have enough funding. Councilmember Morin stated Toastmasters is requesting long-term commitments for lazge blocks of time to use [he Activity Center Community Room. Ms. Johnson noted that Ms. Kostanshek is developing a polity on use of the Center's Community Room and that it would be similar to the Library policy. She noted concerns with scheduling conflicts between the Toastmasters and programming activities for the Activity Center. 9. Adjou_rnsnent There being no further business, Acting Mayor Morin adjourned the meeting of the Elk River City Council at 8:00 p.m. L~-~ Tina Allard City Clerk • C