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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