12-01-2008 CCMMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK BRIER CITY HALL
MONDAY, DECEMBER -1, 2008
Members bers Present: Mayor Klin in , CouncUmembers e- was, Farber, Gumpbxey, and Motin
Members Absent: None
Staff` Present: City Adniinistrator Lotijohnson, Finance }director Tim Simon, Paaain
Ma.na r eremy a hart, and Recording Secretary Jennifer'Johnson
CaH Meeting-To„Order
Pursuant: to due caU and nonce thereof, the meeting of the EUS River City, Council was called
to order at 6:3)6 p.m. by Mayorlimn.
--Consider o # enda
MOVED BY COUNCILMMR FARBER AND SECONDED BY
COUNCILMEM ER GUMPHREY TO APPROVE THE AGENDA. MOTION
CARRIED -,
. Consider Consent A enda
Co member Gump ire i requested itern �.1O. be removed from the consent agenda for
discussion.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER GUMPHREY TO APPROVE THE FOLLOWING
CONSENT AGENDA:
.1. COUNCIL MINUTES
a 11/03/48 REGULAR
a 11/10/08 SPECIAL
a 11/10/09 WOR E SION
a X11/17/08 REGULAR
3.2. CHECK REGISTER
3.3. APPROVE EXPENDITURE of COMPLIANCE C CHECK PENALTY FOR
WESTBOUND oUN LIQUOR
3.4. ADOPT RESOLUTION 08-85 ACKNOWLEDGING CONTRIBUTION
FROM THE SHERBURNE COUNTY ATTORNEY'S OFFICE TO THE
ELK RIVER POLICE DEPARTMENT
3.5. APPROVE SCHOOL DISTRICT AND CITY of ELK RSR SCHOOL
LIAISON CONTRACT
3.6. ADOPT ORDINANCE 08-18 AMENDING DEFINITIONS FOR TRAFFIC
REGULATIONS AND PARKING ON CITY STREETS
3.7. ADOPT ORDINANCE 8-1 AMENDING SECTION -105 RELAXIN
TO PROHIBITED BURNING of CERTAIN MATES
3.8. APPROVE 2009 RECYCLING REBA'T'E PROGRAM
City Council Minutes
December 1# 2008
----------------------------
age
3.9. APPROVE C ]NTINU I mo' FOR CLEAN-UP PROGRAMS FOR
2009 +
MOTION CARRIED 5-0.
3.10. COMMERCLkL DRIEVEWS LICENSE RANDOM DRUG AND ALCOHOL
TESTING
Councilrnembe,r Gu phrey asked If staff went out for bids on this In order to find a company
that wM provide this locaUy and compare p c*ng.
Ms. Johnson stated the League of M=esota Cities had transferred this consortium
sponsored product to the TvEnnesota Counties Insurance Trust. The MCI ' is no longer
coordinating ffie service so the City is contracting directly tough the provider. The
company, aldiough based out of state, allowed the sen -ice itself to be done locally at Fairview
Ctrric. She stated when this contract is up staff will consider going out for bias
MOVED BY COUNCI M MB R GUMPHREY AND SECONDED BY
COUNCILMEMBER FARE . . TO APPROVE THE COMMERCIAL DRYER'S
LICENSE RANDOM DRUG AND ALCOHOL ESTIN AGREEMENT.
MOTION CARRIED 5-0.
. pen TvU-e
David Raymond representing tfie Elly River -Axea its Affiance presented a letter to the
Council from the Arts Alliance, thanking the City for their past support and the opportunity
this sprang to open the Main Street GaUe.ry. The Arts Alliance is requestmg a contribution of
1,0 from the city Mn 2009 to help"'With the upcoming summer Art Soup even t. He stated
. amount would be necessary in order to continue keep g d-iis event free.
Mayor Kinzing stated the courier - -M tale thisrequest into consideration and make a
decision about their request later this month.
Diane Mar o e , 10089 — 179thLane, asked how and F iat is going to be done in 20 10
regarding property values. She expressed concerns with the value of her town.home. She
stated It's sad to see in all goverment endues that they cannot budget %rviffiin their means.
She asked who sets the tax rate.
Councilmember T iotin spoke to the County assessor last week, who stated he is expecting to
reduce valuations on residential property for 2010.
Mayor lazing stated that each jurisdiction sets their tax rate. The valuation of properties is
done by the County Assessor"s office.
Ralph Ma ni '300,'340, and 380 — 13,dAvenue, Mann Apartments, stated he has lost
money since purchasing the apartment buildings three years ago because the taxes continue to
rise, but valuations aren'ft. He made comparisons to Anoka a County and the ainount of rent he
is able to charge and the mount of taxes on properties them.
Mayor Klinzing suggested he attend the Board of Equalization hearing in April at the County.
City Durk .fnues
December 1, 2008
'age
Glx. Manning stated hewasn't able to attend the meeting last April, and spoke to the County,
who told him he'd have to wait until next April to do anyda.ing about vaivadon of his
property. He asked shy taxes are twice as high here then Mn .noa County. He asked if the
City was going to raise taxes again this evening,
Mayor ayor l<linmng stated the ta-z rate wM stay the same or drop, and that discussion will occur
shordy. She stated the City hasn't taken action to raise the tax rate in five gears.
Councilmember Zmvas requested the Truth in Taxadon hearing begin to answer all of these
questions.
Diane Lockwood, 314 Railroad Drive, stated the County assessor valued her property at
$17,000 higher then her neighbor's house and doesn't feel ,it's a fair assessment. Her valuation
went up about .5%.
Mayor KEnz ng stated that property valuations are a . over the board and if there are concerns
with property values to attend the Board of Equalization meeting in April.
ouncdrnernber i otin stated Council discusses and sometimes changes valuations at the
Board of E uali adore hearings, and suggested anyone who is concerned with their property
value attend the meedng in April.
Tim Schaefer, 20570 Concord Street, questioned the amount of dime property owners are
given to know that their taxes be raised.
Ms. Johnson stated the County is in chaxge of sending out the valuation notices as. they do the
assessing for the City. The meeting date on that notice is the time to discuss the values of
their property. State statue directs how notices are seat and how much time is allowed to
question ion the values of properties. She stated property values wU not be addressed at tonight's
meeting.
Ralph Manning aged what die difference is between the tax rate of noka County and
Sherburne County.
Ms. Johnson stated this even i g's di
City Council Minutes
December 1, 2008
Page
Ms. Johnson stated that the Environmental staff could come out and check the property to
see if there were any violations taking place and propose some ideas and advice to the
property owner.
Ms. Sandeen stated this had already been done and there Frere no violations taldng place. She
was wondering if the City would approach it as protecting a drainage ditch.
TvTr. Beck stated the state has adopted wetland buffers and protection zones, which the City
currently o .ows; however, the City would need council direction to revisit the buffer zones
and consider charges. However, if the City were to change the zones, it wou .d only apply to
new acdvities because you couldn't .reverse what's been done.
Ms. Johnson stated that a staff member from p .bhc ors could visit the property to ensure
the drainage was properly taking place. If there were no violations, though, the City wouldn't
be able to do anything else.
There being no one else for Open NLU�e, Mayor lazing closed the Open N& -e session.
5.1. Truth in Taxation Public HeajLng
Mayor Min ing explained that the pose of the Truth in Taxation hearing is to discuss the
general cite budget and general tax information and that it is not a time to discuss individual
property values and taxes. She stated that if individuals have questions or concerns regarding
their property values, d-iey should attend the Board of Review meeting m the spring or
contact the Sherburne County Assessor's Office.
Ms. Johnson briefly outlined the process of the Fruth Mi 'axadon Hearing and the budget
process. She stated the Council approved the proposed tax levy, 511,250,878 on September 8,
which is the maximum tax levy the City can adopt. ilrls. Johnson reviewed the tax levy by use
and compared the levy with previous years. She also reviewed property tax changes and
explained that a number of factors play a role in determining the property tax ainount.
Ms. j ohn s on reviewed general f and revenues and expenditures. Ms. j ohns on stated that there
were no new positions being added to the General Fund budget in 2009.
Mr. Simon reel wed the special revenue funds and enterprise funds. He stated that the
enterprise funds are self -supportive and not supported by ta.N dollars. He ex -played there were
o new positions being added to the Enterprise Fund budget in 9.009. Mr. Simon handed out
a link to the Minnesota Department of Revenue website for residents to determine if they
qua. fy for a property ta.N refund. He stated this link NviU be placed on the City's website. He
concluded that the council -%U adopt the 2009 ta-x levy and budget at a future Cite Council
meeting g on December.
Ms. Johnson stated the City is appro.u-mately $250,000 below the State -set levy limit. This
evening, the council dll review approxdimately $75,000 in additional cuts to consider.
meeting date to set the 2009 tax levy and budget -v-M be determined tonight as weU.
Mayor Klimmig opened the public hearmig.
Diane Mrsolek, 10089 — 179thLane, asked the council rho sets the tax rates.
rl . Johnson stated each tang jurisdiction then sets its own tax ,rate based can the tax levy.
City Council Minutes
December 1,, 2008
Page
Diane Lockwood, 314 Railroad xive, asked what the cable TV budget was for. She asked if
anyone watches the council and boards and cow ss on meetings on cable and could their
budget be cut, saving approximately $80,000.
Both payor Klinzing and. Counc�lmembex Motes stated cable TV is a necessary and
important way for the City to communicate and explain to residents what is happe m' g at the
City, noting that many of them are unable to make it to a meeting but can watch it at their
convenience.
Joe Glowoo d, 110-94 — 1 99nd Circle NW, feels it's `gall smoke and mirrors. >-' 3e commented
that the County raises the value of houses but they never come out to look at i
City Council Minutes Page
December 1 � 2008
Diane Marsolek commented on an article she read about abela's and that they don't have
to pay taxes for 19. years. She asked how the City drags businesses into the City and what
type of tax programs do they offer.
Ms. ;Johnson stated the City has programs in place to draw cor=e-rcial and industrial
businesses into the City. She stated the City offers programs such as mx abatement or a tax
increment financing.River' s tax increment is at % mO eo .p=son to the City of Rogers,
%vhere abela's is located, has had appro-xi-mately 0% of its property value in tax increment.
Diane Lockwood stated d rmi g her job of nail delivery, she notices a lot of empty
commercial buildings in the City. She asked how the City coUect:s taxes from businesses that
are shut dwvm. She also commented that there is a building located on industrial Circle built
with TIF money that is sitting empty.
,payor Jinn ing stated ffiey still collect taxes from these businesses whether or not anyone is
m the biding.
Ms. ,Johnson. stated the City currently doesn't have a high number of ta_. delinquencies to
date. She also stated that there weren't any TIS" projects on Indust6al Circle. She stated there
is no correlation between TIS` and City ownership of TIF financed projects or buildings.
Frank Carlson, 9998 — 215thAvenue NW, stated he owns a construction business and has
had to lay people off. I -Es stated his property value stayed the same and yet his property taxes
went up. He stated hisincome has dropped by 9.0% from Eve years ago, and so he wondered
if the council has informed City employees they wiU be tang a pay cuts He stated the City
bounding permits and revenues are down, so -%vh.y haven't building inspectors been laid off. He
commented about the biding inspectors and the laptops in their fancy trucks which had to
have cost about o,000.
Ms. Johnson stated one building inspector has transferred over to filu-time cede enforcement
and has been busy addressing code violations and die increase in foreclosed houses sitting
empty and the safety concerns that come xvith that. One temporary inspector position was
eliminated.
Mayor Klining stated code enforcement is a huge concern of many residents, and the
number one reason people call her. She stated the City is trying to maintain a level of service
-;-ith ut raising the budget, but if costs continue to rase, they may have to lower the level o
se re. Lay-offs haven't occurred because Ivo positions Nveren7t aed.
ouncilmernber Zenvas stated the laptops are recycled laptops previously used in police
squad cars.
Sharon Sandeen — no address given — her concerns are as a homeowner and stated people
moving to the area need to check the tax amounts before moving here, as it is a very nice
place to live but very expensive. She stated she would like to ash the basement of their
house} but theywouldn't be able to afford living in a house where the valve stays the same
but the taxes are raised,
Diane Marsolek asked about fuel costs and how the fluctuation is affecting the budget.
City Council Minutes
December 1
Page
Mayor KLn ing stated the council has cEscussed entening into a state contract where they
would purchase 0% of their fuel at a Erred price for 2009, The budgets have been decreased
because of the mi=ent decrease in fuel costs, and the City is hoping to lock in at a low price
for next year's fuel.
Anthony Reel - asked why they aren't hearing any comments from the council members that
represent their wards. Heaiso wished to ask two questions from each of the council
members, one, what percentage of increase or decrease in the City budget is their persomil
goal, and two, what is able to be cut from the culture and recreation portion of the budget.
Mayor m ing stated the reason the council members aren't responding is because they are
in a public hearing and are mainly there to get public input.
.. resident asked if the council meetings could get on DIRECIV.
Where being no one else to speak at the public hearing, Mayor ICEnzMig closed the pubhc
hearing.
Ms. Johnson stated they need to set a date for adopting the budget and tax levy. She is
proposing holding a regular meeting before the work -session on December 8 so it can be on
cable TV, or it can be held on December 15 Nth Council,member Zerwas absent.A derision
cannot be made this evening but discussion can be held 'With. the final decision made at the
,next meeting.
CoundIrne beer Gumphxey stated the tax rate will stay the same. He was opposed to cutting
the level of service because that affects new businesses and new residents corning to the
tc %vn. He viiU do his very best to keep service le rtels the same.
ouncil e ber Zerwas is in favor of 1-2% increase mi the General fund budget with the
proposed cuts outlined in the staff report, bringing them at a 4.3.05% tax rate. He states
everyone is Mi a tough spot now. Thereis a potential of cutting the cost of living adjustment
for staff. But he stated in the `{good" years they didn'tgimme staff an overly high. COLA. Th
City was fortunate to have mo positions open and not filled, and that is ghat sated the
council from looking staff cuts.
Councilmember Farber concurred with Councilmembers Gurnphrey and Zerwas and felt that
a I% its the General Fund was living vviffiin the City's means. He also wished to continue to
provide the same level of service. He stated the parks budget has already been cut by
$100,000 and noted the necessity to maintain the upkeep of the parks so they don't become
blight.
Coundrnember Motin stated he isn't comfortable with a 1% increase, but feels it's necessary
to maintain the level of service residents are used to. He stated fro Nva be an even worse
year. If the economy stays the same, they -ill ha e to consider laying off` staff~ He would like
to hear from. the Chamber of Commerce as he had heard they were considening cancelling
theiruly 4 celebration and if that was the case, the City could lover their budgeted amount
for that event. He stated the employees may not receive any cast of living increase for 2009.
Mayor l ing stated the comments were good from residents and she was glad that they
came to the meeting. The City faces the same challenges that residents do and feels the
council is conservative. She would ace to try and gnive more confidence to residents drat they
City council Nfinutes Page
December 1, 2008
are a concerned council and v -M do their best to continue to live wi
city Council Nfinutes
December 1. 2008
Page
asked the council not to move ahead Nv ,th any development in the area until the North. Star
Lne is completed and rung.
Les Lundquist, 17443' Highway 10 — stated he is the owner of Rivem'ew Sports and has
another party interested in, purchasing a part of his property but because of the proposed
moratorium would be backing out. He asked if the moratorium could be shortened to sLx
months.
Mary Monte, 1752.5 Polk Street — asked if studies were done of the area. when sewer and
water went m seven years ago.
/Iayor Kia ing stated no land use studies were done in that area. She stated the reason sewer
and water was placed in this area gas Tae to the e-pansion of 175th.venue and the
residential developments that were being plamed. She stated the reason ,dor a study at this
time was due to the Northstaz Condor construction and the impact that increased traffic
may ,have on the area.
Counselor Beck stated this area hasn't been studied spec€fically but the city completed a
comprehensive plan and part of that plan was to review individual areas in the plan. This type
of study has been done in other areas of the city as a planning tool and is not unique to this
specific locad,on..
ouncil e ber Motin stated it was too far out to considez the use of the land at the time
serer and water went into tl-is area. He stated he -would like to avoid a piecemeal approach to
the area.
Ijaz Osman, 10616 —175th Avenue — he stated he has an interims, use permit and wonders i
the moratorium would affect his permit. He boards dogs on his property and is currend.y
looking at changing the binding that the dogs are housed in to a lamer location on the
property. He asked if he could receive a variance.
Mr. Barnhart stated die moratorium would I'm act r. srnan's inter n use permit re ring
an amendment to the permit. He could apply for a variance but the challenge with 1\/Ir.
s a:n's property is that the inter use permit expires at the g of the mal plat, which is
somewhat unique and somewhat protected until the Wig. He stated the city NviU work With
him dependent upon the scope of his changes.
Counselor Beck . stated he shouldn't meed to seek a Waiver if the proposed changes to his
property were consistent N -Ith the eXIsdng tem use permit.
Ruth Brown, 17773 Tyler Street — asked to have the FAST study area clarified.
Mr. Barnhart explained the study area and the moratorium area.
ounci,lmernber Zerwas stated in the last vvo gears they've had a �v-ide range of requests for
deiveloping this area of land, and they considered each one at a time without loold.ng at the
entire area to be able to determine how one project may affect another. The purpose of this
study is to take the entire area into account when determining the property's future.
Bret Brown., B&E Recycling Station, 16501 FEgh ray 10 - asked if this study would affect his
to rate as his building is older.
City Council Minutes
December 1# 2008
Page 1
Mayor Klin ing stated this is difficult to answer, and may depend on a number of unknowns,
such as the Northstar Commuter rail. The study may not be able to detern-L
fir Council Minutes 'age 11
December 1, 2008
6-2. Summary of Temporary- Commercial Real Estate Sims and Authorization to Review
Possible Amendments to the SiZg..Ordinance
Ir. Bamhart presented the staff report. Discussion followed. The cc u d concurred that '
signs are too large, and suggested staff make changes to the current sign ordinance.
Co ncilrne al er Motin asked about sus on traders.
Counselor Beck stated there are a few Mies that have addressed x es abort signs on trailers.
He x -M review those cities and return to staff and the cou.r d with some language addressing
these types o signs.
6.3. Discuss..CouncWork-session .agendas
orrzcilme-nber Gu phrey requested an additional council meeting so Councilmember
Farber could be a part of FIs. Johnson -s performance review.
Ms. Johnson suggested moving her review to December 8. Iteras decided to move the
review from January as well as add d -ie topic `" .redic Card Tose for Payment of Certain
Sen ces" to December ,ber 8 worlcsession.
7. Other. Business
"here was no other business.
. Council Uvdates
Where were no council updates.
. Staff dates
Ms. Johnson asked how the council felt about a City staff memo attending the IACD
meetings. She stated the Northsta.r Corridor suggested it.
ounc�lrnember Motin, who attends the meetings, didn't feel the in ormation discussed at
the no tl-Ay meetings would be valuable.
At this t ne, council Felt there Nvasn7t a need for staff to attend the monthly NCDA meetings.
. Adjoumment
There being no filrer business, Mayor Klinzing adjourned the meeting of the River City
Council at 9:50 p.m.
Nfinutes prepared by Jennifer Johnson..
Tina .ward
City Clea