INFORMATION 09-05-1995r
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City of ~
Elk •
River
P.O. Box 490 • 13065 Orono Parkway
Elk River, MN 55330
Phone: (612) 441-7420 • Fax: (612) 441-7425
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League ~ ~f Minnesota Cities
~-ugust 14, 1995
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3490 Lexington Avenue North
St. Paul, MN 55126-8044
T'O: Mayors, Managers, Administrators, Clerks
Councilmembers c/o City Clerk
FROM: James F. Miller, Executive Director ll~ ®' 1 aYYi
SUBJ: League or Minnesota Litres 1 yy5 Kegional Meetings
Again this year the League of Minnesota Cities will hold twelve regional meetings to
bring city officials together from throughout Minnesota. At these meetings current policy
issues will be considered, as well as practical questions concerning the problems you
face. We cordially invite you to attend a regional meeting and to join in our discussior;s.
This year, the League's regional meetings are scheduled in Ely, Aitkin, Anoka,
• Greenbush, McIntosh, Henning, Stewartville, Owatonna, Winthrop, Fairmont, Willmar,
and, Pipestone. You may receive an invitation from more than one host city, depending
upon your location. Please feel free to choose the one which best fits your schedule.
The afternoon program will begin at 2:00 p.m. and cover important topics such as
Liability issues involving cor?tracts, tobacco and smoke free communities for children,
legislative issues ~at~~ _1lIC`~ information system.
T*~~; social hour is scheduled to begin at 5:00 p.m., followed by dinner at 6:00 p.m. The
evening program will include a presentation the League's Strategic Plan, and a video
presentation dealing with difficult personnel situations. Around table discussion and a
question and answer period on personnel issues will follow.
I hope you will be able to join us atone of our regional meetings. If you plan to attend,
please RSVP the city contact person identified on the attached regional meeting
schedule to make your reservations. Come for the afternoon, the evening, or both. I
look forward to meeting you there.
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AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
(6121490.5600 1-800-925-1122 TDD(612)490-9038 Fax(612)490-0072
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League of Minnesota Cities
4:00-5:00 p.m.
AFTERNOON PROGRAM
2:00-2:30 p.m. LMC Information Systems Update/Telecommunications
Barb Gallo, LMC's Director of Technology Services
2:30-3:00 p.m
3:00-3:15 p.m.
3:15- 3:35 p.m.
3:35-4:00 p.m
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5:00-6:00 p.m
6:00-7:00 p.m.
3490 Lexington Avenue North
St. Paul, MN 55126-8044
1995 REGIONAL MEETING PROGRAM
Liability Issues Involving Contracts
LMCIT Staff
Break
Legislative Issues at the Upcoming Session
IGR Staff
Tobacco and Smoke Free Communities for Children
Minnesota Department of Health Staff
Discussion by cities attending of City Achievements
Moderator: Tom Thelen, LMC Field Representative
Social Hour
Dinner
EVENING PROGRAM
7:00-7:15 p.m. Introduction by Jim Miller, LMC Executive Director
Welcome by Host City Mayor
7:15-7:30 p.m. Presentation of LMC's Strategic Plan
- (LMC 2000: Service and Leadership)
Karen Anderson, Mayor, Minnetonka
President, League of Minnesota Cities
7:30-7:45 p.m. A video dealing with difficult personnel situations
7:45-8:30 p.m. Roundtable discussions of difficult personnel situations
8:30-9:00 p.m. Response to roundtable discussions questions
• 9:00 p.m. Adjourn
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
(6121490-5600 1-800-925-1122 TDD(612)490-9038 Fax(612)490-0072
r
ague ~~f Minnesota Cities
1995 REGIONAL MEETING SCHEDULE
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September 26
September 27
September 28
October 3
October 4
October 5
3490 Lexington Avenue North
St. Paul, MN 55126-8044
ELY Kennedy Cafeteria Facilities
600 E Harvey Street
Efy, MN 55731
Patricia Wellvang
218/365-3224
AITKIN American Legion Club
20 First Avenue NW
Aitkin, MN 56431
Ross Wagner
218/927-2527
ANOKA Greenhaven Country Club
2800 Greenhaven Drive
Anoka, MN 55303
Mark Nagel
612/421-6630
GREENBUSH Greenbush Community Center
244 Main Street North
Box 98
Greenbush, MN 56726
WyAnn Janousek
218882-2570
MC INTOSH Centennial Community Center
115 Broadway NW
McIntosh, MN 56556
Ann Lohse
218/563-3043
HENNING Henning Public School/Community Room
Henning Community CenterlEvening
607 2nd Street
Henning, MN 56551
Wilma Morse/Sarah Ebeling
218/583-2402
(OVER)
AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER
f 612 ~ 490.5~:~~:~ 1-800.925.1122 TDD (612 ~ 490.9038 Faa (6121490-0072
Cityll
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fiver
Apri127, 1995
Randy Sykes
Elk River Fire Compensation Task Force
415 tackson Avenue
Elk River, Minnesota 55303
Dear Randy;,
For well over a year the Fire Department Compensation Task Force has been reviewing firefighter pay in
conjunction with discussing the conversion of the Elk River Fire Relief Association pension plan to a
defined contribution plan. Recently, the Council and representatives of the fire department met to discuss
the proposed compensation plan requested by the firefighters. As you know, that proposal was not
approved in its entirety during that initial meeting with the Council. Because I feel that it is important to
continue working toward a fair compensation package and the conversion, I requested that the Council
discuss this item further.
On April 3, 1995, the City Council again discussed the proposed firefighter compensation plan. After
discussion, a motion o$ering a compensation package for the firefighters was approved. The Council's
• proposal would set firefighter pay at for $22.25 per hour for all emergency calls and $8.00 per hour for all
other calls. Emergency hours on the seven holidays outlined in the original proposal would qualify for
double time pay, and firefighter pay would be reviewed annually as part of the City pay resolution. In
addition, the Council had already agreed to extra pay based on training and to a new pay structure as
outlined in the proposal. These are all contingent upon approval to convert the Relief Association pension
from a defined benefit to a defined contribution plan.
In an effort to assist in the conversion, I would like to address several areas of concern to the firefighters
and suggest solutions which should be agreeable to all parties. First, I understand that under the defined
contribution plan, the death benefit for firefighters not fully vested is less than it would be under defined
benefit. Naturally the firefighters are concerned about the amount available to their beneficiaries; the City
is concerned about this as well. Therefore, I am proposing that the City pay for any difference in the
death benefit for any firefighter who is currently a member of the department who dies after the
conversion to defined contribution.
Another issue of even more concern to the firefighters is the initial balance each firefighter will have in
his account after the assets of the Association are allocated among the members. There are several
methods of allocating the assets. The allocation can be made based on actuarial calculations which is the
method used by the Wyatt Company when estimated account balances were provided for us. The
allocation can also be made based on years, months, or days of sen~ice (service only allocation). If this
allocation method is used, the beginning account balances can be compared to either the balances used in
calculating Schedule 1 or the balance based on the vesting percentage to determine each member's gain or
loss. It appears that the firefighters prefer the service only allocation. 1f the assets are allocated to
member accounts based on this method, there may be a loss in some members' accounts when compared
to the amount the members would have received based on the current benefit of $2,30 per }'ear times the
years of service times the vesting percentage. Therefore, assuming a conversion date of January 1, 1996, I
. am proposing that the City cover all shortfalls. This would be accomplished by appl}~ng the City's 199
1306 Orono Park~~~ay • P.O. Box 490 • Elk River, ~'li~T ~>330 • (612) 441-7420 • Fax: (612) 441-742
Rive~sicle Appraisals
July 20, 1995
City of Elk River
Elk River MN 55330
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Re: VACANT LAND PARCELS
PID# 75-013-1101 Pclrcel "A"
75-013-1300 Parccrl "B"
75-013-4202 Pcu-cel "C"
`For die pu~Pose o% dus report onlc.
Dear Sir:
Elk River, Minnesota
In accordance with your request, an inspection and appraisal has been made of the above
stated fee simple vacant land for the purpose of estimating the market value of the fee simple
interest.
Based upon an inspection of the property and the factors influencing value, it is our opinion
that the subject property has a market value as follows:
As Vacant Land, as of July 20 1995
$288,000.00
The appraisal report is attached. It contains a description of the property, a summary of
significant factors affecting its market value, and some of the computations used.
This appraisal has been co-npleted in conformance with the Standards of Professional Practice
& Code of Professional Ethics of the. Appraisal Institute. Information in this report was
gathered from sources believed reliable, but not guaranteed.
For further .assistance, please call J. Seton Foster at (612) 241-0714 at your convenience.
Respectfully submitted,
)=. J nes(~oster, Appraiser 1./SetatS Fost~'r, Appraiser
• Riv rside Appraisal Service werside Appraisal Services
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Riverside Appraisals
HIGHEST AND BEST USE (continued)
EIk River, Minnesota
(8) Financial feasibility is best measured by determining whether the income which will be
generated from the subject property is consistent with current market expectations and
investment parameters, as well as successfully maintaining the subject property. as a
competitive and operating enterprise within the market.
(9) With respect to alternative highest and best use, the use category selected for the subject
property reflects. the highest land value based upon current available market data and
conditions.
For the reasons stated, the highest and best use of all the subject property is considered to be
single family residential use reflecting competitive locational property characteristics. Subject
land zoned industrial is considered land locked by the existing railtivay service and it is
unlikely that a industrial site would be the highest and best. use for this parcel. Based on the
market data and site information it is the appraisers opinion that the highest and best use of
the entire site be S.F.R. Mixed use as zoned is unlikely due to the contrast of single
residential housing and Industrial use in this close proximity to each other. Subjects
existing use is green acres agricultural farming and is expected to remain until demand for
single family vacant land exceeds the demand for agricultural use.
The definition of highest and best use, as found in the "Real Estate Appraisal Terminology"
handbook, is as follows:
Highest and Best Use: That reasonable and probable use that will support the highest
present value, as defined, as of the effective date of the appraisal.
Alternately, that use, from among reasonably probable and legal alternative uses, found to be
physically possible, appropriately supported, financially feasible, and which results in highest
land value.
The definition immediately above applies specifically to the highest and best use of land. It is
to be recognized that in cases where a site has existing improvements on it, the highest and
best use may very well be determined to be different from the existing use. The existing use
will continue however, unless and until land value in its highest and best use exceeds the total
value of the property in its existing use.
Implied within these definitions is recognition of the contribution of that specific use to
community environment or to community development goals in addition to wealth
maximization of individual property owners. Also implied is that the .determination of highest
and best use results from the appraisers' judgement and analytical skill, i.e., that the use
determined from analysis represents an opinion, not a fact to be found. In appraisal practice,
the concept of highest and best use represents the premise upon which value is based. In the
context of most probable selling price. (market value), another appropriate term to reflect
highest and best use would be the most probable use.
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Riverside Appraisals
Elk River, Minnesota
• ESTIMATED VALUE OF THE LAND !continued)
ADJUSTMENT CHART
The adjustment chart is used by the appraiser to compare and adjust the comparable sales to
the subject. The adjustments are always made to the comparables and are applied to the unit
of measurement. The most common unit of measurement for the land is the price per square
foot or price per acre.
The adjustments are made in percentages (%), which are multiplied together from left to right
to estimate a net adjustment. This is then applied to the unit price to arrive at an indicated
unit price for the subject. If the sale is inferior to the subject, a plus adjustment is made such
as 1.10 (indicating a plus 10%). If a negative adjustment is warranted, say -10%, it would be
shown as 0.90, and no adjustment would be shown as 1.00.
MARKET SALES ANAT.VSTS
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SaleNo Price! Acro Cash
Equiv Cond of
Sale Time Locauon Use/
Utiligea land Size Topog Comp.
Adj. Finial Adj
Price
1 $2,200 1.00 1.:00 1.00 1.00 1.00 1.00 1.00 1.00 $2,200
2 $6,486 1.00 1.00 1.00 1.00 1.00 0.5 0.8 .4 $2,594
3 $3,175 1.00 1.00 1.00 1.00 1.00 0.8 .1.00 0.8 $2,540
4 $6,750 1.00 1.00 .1.00 1.0 0.7 .5 1.0 0.35 $2,362
5 $6,600 .1.00 1.00 1.00 1.0 0.7 1.0 0.7 0.49 $3,234
RANGE OF LAND SALES:
Before adjustments the sales ranged in value from $2,200 per acre to $6,750 per acre.
After adjustments the sales indicated a value range of the subject of $2,200 per acre to $3,234
per acre.
The average of the adjusted sales is $2,586.0
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White Dove Realty, Inc.
A CENTURION• Award Winner Office - 1993-1994
V.M. 458-7125
Fax 441-4699
Business 4~~ 28, 1995
Pat Klaers
City of Elk River
Elk River MN 55330
Dear Pat,
Mel Beaudry
Discovering the
best move for you!
Thank you for the opportunity to do a value opinion on the property at the east end of Elk
River on 165th and Jarvis.
I recommend that the City does not. split the land into 2.5 acre lots because they would be too
long and narrow, and because of the proximity to the city sludge area and proposed ballfields.
I feel it would be more appropriate to divide the lots, excluding the 6.85 acre lot, along 165th,
into 4 building sites of approx. 3.75 acres each. These lots have a market value of $29,000 to
$32,000.
The estimate value of the 6.85 acre lot would be $36,000 to $37,500.
The estimate value of the 14 acre lot would be $43,000- $45,000.
I have also looked at the possibility of 5 lots along 165th (excluding the 6.85 acre parcel). They
would have a frontage of just over 200 feet, but I feel it is not in the best interest of the City to
sell lots with that narrow frontage.
I have enclosed examples of lots sold in the Elk River and western Ramsey area, which were the
basis for my findings.
You may find these lot values more conservative than anticipated. However, I would rather be
conservative than overly optimistic, in which case, the City would not get the return on their
investment that they were expecting.
Yours truly,
Mel Beaudry
Century 21, White Dove
MB/lb
Mel Beaudry works with a team of experts to assure the best possible service.
Mel Beaudry, Lucy Boeshans, Mary Leuer, Kathy Tangen
Each Office is lndependentiy Owned And Operated
Special Park 8 Recreation Commission Meeting Page 2
April 19, -1995
Robin Skinner soil that she feared that her children would be attracted to the field
. during the games and wonder from their own yard, and also that the activity would
make her dog bark.
HQrry Sunderman said that if it were only for one year he could handle the annoyance.
Ben Skinner said that he felt a garden area for volunteer gardeners would be a good use
for the 3.3 acres.
Several of the Park and Recreation Commission members spoke about the needs being
greater than the available facilities and that after many considerations, this option was a
last resort.
The neighbors restated their strong opposition to fields of any type on the 3.3 acres
COMMISSIONER OLSON MOVED TO RECOMMEND TO THE CITY COUNCIL TO ELIMINATE THE
SOCCER FIELD ON THE 3.3 ACRE PARCEL AND REQUEST THAT STAFF TRY TO FIT TWO SOCCER
FIELDS ON THE LAWN NORTHWEST OF CITY HALL. COMMISSIONER TUTTLE SECONDED THE
MOTION. MOTION CARRIED 6-0.
Athletic Felds an 165th and Jarvis
The Park and Recreation Commission members had an opportunity to meet at 6:15 at
the WWTP land on 165th and Jarvis to make first hand observations about location,
accessibility, terrain, and odor.
• Commissioner Olson left meeting at this time (8:00 p.m.).
After a long discussion that included the topics of building six fields on 12 acres of WWTP
)and, five or six fields on the Waco property, relative access and property location, it was
the consensus of the Commission that the Waco Street property:
• Has much potential for pork uses.
• Hos a proposed road corridor tha# cuts the property in half.
• Has a somewhat irregular shape with some areas un-buildable.
• Open land would be better suited for athletic field development.
MOTION BY COMMISSIONER DANA ANDERSON TO RECOMMEND TO THE CITY COUNCIL:
• THE LOCATION AND ACCESSIBILITY OF THE FIELDS ON 165tH IS ACCEPTABLE.
• THE WWTP LAND OR THE CASS PROPERTY ON 165tH AND JARVIS BE
CONSLDERED FOR AN ATHLETIC COMPLEX WITH A MINIMUM AREA OF 40 ACRES.
• PHASE ONE BEING TO DEVELOP FOUR SOCCER FIELDS, FOUR BASEBALL FIELDS
AND PARKING ON ABOUT 15 ACRES
• PHASE TWO DEVELOP THE REMAINDER OF THE LAND INTO ATHLETIC FIELDS AND
PARKING.
• PHASE THREE TO DEVELOP LIGHT FIELDS AS NEEDED TO PROVIDE ADDITIONAL
PLAYING TIME.
• THE WACO PROPERTY IS VALUABLE AS PARK LAND, BUT WOULD NOT BE AS
SUITABLE FOR ATHLETIC FIELD DUE TO ACCESS, SIZE, AND A MAJOR ROAD
PLANNED TO BISECT THE AREA.
• COMMISSIONER ROHLF ANDERSON SECONDED THE MOTION. MOTION CARRIED S-0