09-10-2001 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER I 0, 2001
Members Present:
Members Absent:
Staff Present:
Mayor I~dinzing, Councilmembers Dietz, Kuester, Motin, and Tveite
None
City Administrator Pat Klaers, City Engineer Terry Maurer, Police Chief
Tom Zerwas, City Clerk Sandra Peine, and Finance Director Lori Johnson
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called
to order at 6:45 p.m. by Mayor I~dinzing.
Consider 6/11/2001 Agenda
The follo~ving items were added to the agenda:
3.9a. Request for Massage Therapist License by Nicole BranNon to Practice at
Simonson's Salon
4.8. Request to Advertise to Hire an Employee in the Economic Development
Department
7. Update on the Settlement with the Deschene Property
COUNCILMEMBER MOTIN MOVED TO APPROVE THE AGENDA AS
AMENDED. COUNCILMEMBER TVEITE SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
Consider Consent Agenda
COUNCILMEMBER TVEITE MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3olo
3.2.
3.3.
3°4o
3.5.
8/27/2001 CITY COUNCIL MINUTES -APPROVED
CHECK REGISTER - APPROVED
-- RESOLUTION 01-60 APPROVING THE HOUSING AND
REDEVELOPMENT AUTHORITY 2002 TAX LEVY - APPROVED
-- RESOLUTION 01-61 APPROVING THE 2002 TAX LEVY FOR
ECONOMIC DEVELOPMENT PURPOSES FOR THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY - APPROVED
-- ADJUSTMENTS TO DEBT SERVICE LEVY FOR TAXES PAYABLE
IN 2002 - APPROVED
REQUEST FOR A 5.65 SAC UNIT REDUCTION FOR TIMCO
CONSTRUCTION (ALLINA) - APPROVED
REQUEST TO REPLACE THE ROOF OF THE U.V. BUILDING AT
THE WWTP FOR $5,900 - APPROVED
City Council Minutes
September 10, 2001
4.1.
4.2.
4,3.
3.6.
3.7.
3.8.
3.9.
3.9A.
3.10.
Page 2
CONSIDER RESIGNATION OF MICHAEL HANGAARD FROM THE
LIBRARY BOARD - APPROVED
REQUEST FOR THERAPEUTIC MASSAGE LICENSE FOR LISA
HUBER TO PRACTICE AT SIMONSON'S SALON AND DAY SPA-
APPROVED
REQUEST FOR THERAPEUTIC MASSAGE LICENSE FOR MARGO
LEE TO PRACTICE AT SIMONSON'S SALON AND DAY SPA-
APPROVED
REQUEST FOR THERAPEUTIC MASSAGE LICENSE FOR ALISON
KINDEM TO PRACTICE AT SIMONSON'S SALON AND DAY SPA -
APPROVED
REQUEST FOR THERAPEUTIC MASSAGE LICENSE FOR NICOLE
BRANSON TO PRACTICE AT SIMONSON'S SALON AND DAY SPA -
APPROVED
REQUEST TO ACCEPT RESIGNATION OF ROBIN HARTFIEL IN
THE BUILDING DEPARTMENT AND REQUEST TO ADVERTISE
FOR HER REPLACEMENT - APPROVED
COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Resolution Authorizing the Execution and Delive~ of a Joint Powers Agreement with the
Hennepin County Housing and Redevelopment Authority. to Finance a Project for
Opportunity. Partners
City Administrator Pat I~aers explained that Opportunity Partners has been working with
the Hennepin County Housing and Redevelopment Authority to refinance and prepay
outstanding mortgage loans on its facilities. He noted that because two of the facilities are
located in the City of Elk River, the City must hold a public hearing. The City Administrator
stated that the City's bond counsel has reviewed the transaction and related documents. The
City Administrator further stated that the re£mancing bonds will not affect the City's
outstanding debt.
Mayor Kdinzing opened the public hearing. There being no one for or against the matter,
Mayor K2inzing closed the public hearing.
COUNCILMEMBER MOTIN MOVED TO ADOPT RESOLUTION 01-62
AUTHORIZING THE EXECUTION AND DELIVERY OF A JOINT POWERS
AGREEMENT WITH THE HENNEPIN COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY TO FINANCE A PROJECT FOR
OPPORTUNITY PARTNERS. COUNCILMEMBER TVEITE SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
Police K-9 Patrol Update
Chief of Police Tom Zerwas informed the Council that the department's K-9, Billy, has
been euthanized because of a cancerous tumor on his hip. Chief Zerwas indicated that
Officer Brian Boos is currendy training to be the new K-9 Officer.
Student Parking/Traffic Issues Update
Chief Zerwas indicated that he met with Senior High Principal Jim Voight to discuss the use
of Lion's Park as a student parking lot. Chief Zerwas indicated that as a result of the student
City Council Minutes Page 3
September 10, 2001
parking lot expansion at the HAgh School there was no need for the students to park at
Lion's Park. Chief Zerwas requested Council authorization to post signs at Lion's Park that
state "No Student Parking on School Days." Mayor I43inzing questioned if this type of
verbage would be a discrimination issue. Discussion was held whether it would be best to
enforce a 3-hour parking limit, issue permits, or to use signage to keep the students from
parking there during the school hours. Councilmember Tveite indicated that he was
opposed to posting a 3-hour limit because it would send a wrong impression to the city's
park users. The City Administrator requested that staff be allowed to get input from the City
Attorney prior to the Council making a decision on this issue.
COUNCILMEMBER TVEITE MOVED TO AUTHORIZE THE CHIEF OF
POLICE TO LIMIT PARKING TO THREE HOURS AT LION'S PARK FOR
ONE MONTH. COUNCILMEMBER DIETZ SECONDED THE MOTION.
THE MOTION CARRIED 3-2. MAYOR KLINZING AND COUNCILMEMBER
KUESTER VOTED NAY.
Chief Zerwas discussed the traffic issues at the end of the school day. He noted that a CSO
is directing students from the parking lots and that a police officer, when available, would be
stationed to stop students who fail to obey the CSO.
4.4. Request for Funds by School District for Small Theater
Dr. Allen Jenson and Principal Jim Voight addressed the Council regarding the little theater.
Dr. Jenson that the proposal is being made as the School sees this as an opportunity to save
this community space. He noted that the cost to save the theater is $563,000 and that costs
to replace the theater are cited to be over $2 million. Dr. Jenson stated that the School
wishes to provide the City with an Elk River Theater so that the City would have a facility to
use on a furst priority basis. He stated that there would be no rent or charges for use of the
small theater up until 11 p.m., however, there would be a charge for the use of the new large
theater. Dr. Jenson indicated that there would be some use of the little theater from the high
school but it would not be a priority. Discussion was held regarding scheduling of the
theater. Dr. Jenson indicated that the school and the city could work out the details of
scheduling.
Councilmember Dietz discussed the limited timeframe to make the decision and funding
options. Dr. Jenson apologized for the short amount of time in which to make this decision.
As for the funding, he noted that he felt something could be worked out. Dr. Jenson stated
that he is basically looking for a commitment from the Council at this time. Councilmember
Dietz suggested that if the City pays for the theater, that the payment option include $55,000
per year for ten years.
Councilmember Tveite indicated that $563,000 is a lot of money. He noted that he does not
see any partnership in the effort from the school or the community or arts. Councilmember
Tveite stated that if the City goes ahead with the project, he would be agreeable to 10-year
payments.
Councilmember Motin indicated his concern with the amount of money. He also questioned
whether the small theater would be able to handle the demands of a groxving student and
city population.
City Council Nfinutes Page 4
September 10, 2001
The City Administrator questioned who would be responsible for the repair and
maintenance of the small theater. Dr. Jenson indicated that the school would commit to
maintenance, utilities, and custodial service costs for the small theater.
Councilmember Kuester discussed the issue of the need for the small theater versus the
large theater by both the community and the students. She indicated that the small theater
would not completely meet the needs of the arts community. She further stated that she did
not like the concept of the small theater being a "city theater" as it should be available for
students during the day and the large theater should be available for the community groups
during the evenings or when it is not in use by the students. Principal Voight indicated that
he envisions this type of a partnership between the school and the city. He noted that the
City participating in the small theater guarantees access to other facilities.
Mayor Klinzing indicated that she sees this as an opportunity for the City to make an
investment in the community.
Councilmember Motin indicated that he would like to be assured that the theater would
provide a benefit to the City. He stated he is in favor of partnering with the school district in
this endeavor because both the students and the community will use the theater.
Councilmember Dietz suggested that the Superintendent come back to the Council with
funding options and agreement details. The City Administrator indicated that these issues
could be discussed at the next Council meeting.
4.5. Approval of Special Legislation for On-Sale Liquor Licenses
The City Clerk informed the Council that special legislation under Senate File #1752 was
recendy adopted that increases the city's number of on-sale liquor licenses from 12 to 18.
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 01-63
APPROVING SENATE FILE 1752; LEGISLATION ALLOWING THE CITY OF
ELK RIVER TO ISSUE SIX ADDITIONAL ON-SALE LIQUOR LICENSES.
COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
4.6. Consider Scott Powell Request Regarding Funding for 171,t Avenue Traffic Signal
Terry Maurer discussed the issue of the 171,t Avenue traffic signal including the city's and
MnDOT's cost in relation to Scott Powell's cost for the signal. Terry discussed the city's
past policy of paying for signals. He indicated that these issues have been reviewed on a
cases-by-case basis.
Councilmember Dietz indicated that it has always been past practice to charge the developer
for signal lights. He stated that it would be fab to other developers to not charge Mr. Powell
for the signal light as it is Mr. Powell who is requiring the signal.
Mayor IC!inzing indicated that the issue to consider is whether the other properties served by
the signal should participate in the cost.
Councilmember Motin noted that this is a situation where Saxon and Napa get some
ancillary benefit from the traffic light as it makes the intersection safer, but if the
development were not going in, the City would not be closing down their entrance onto the
City Council Minutes Page 5
September 10, 2001
highway. Councilmember Motin indicated that because the signal could be considered a City
benefit it might be fair for the City to pick up a portion of Nh:. Powell's cost.
Councilmember Kuester concurred with Councilmernber Mot_in.
4.7.
4.8.
Councilmember Tveite stated that the businesses that require the stoplight should bear the
burden. He further indicated that the City should work toward a fair and consistent policy.
COUNCILMEMBER MOTIN MOVED THAT DUE TO THE SAFETY
BENEFIT THE CITY IS RECEIVING FROM THE CLOSING OFF OF
HIGHWAY 10 ACCESSES, THAT MR. POWELL BE RESPONSIBLE FOR 80
PERCENT OF THE COST OF THE SIGNAL LIGHT AND THAT THE CITY
PICK UP THE REMAINING 20 PERCENT OF THE COST. MAYOR
KLINZING SECONDED THE MOTION. THE MOTION CARRIED 4-1.
COUNCILMEMBER DIETZ OPPOSED.
The Council instructed staff to look at a policy for funding traffic signals in the City.
Consider Change Order to Add Paving of Jarvis Street to the 2001 Overlay Project
Terry Maurer noted that the City received an offer from Bill Christian for the paving of
Jarvis Street. He noted that Bill Christian is the homebuilder in the Rolling Hills Addition.
Through negotiations Mr. Christian is proposing to contribute $30,000, the developer of
Rolling Hills is willing to contribute $30,000, and the abutting property owners are willing to
pay $30,000 to have the road paved. Mr. Christian will guarantee this payment from the
homeowners. Terry Maurer recommended approving a change order to the 2001 Overlay
project to add the paving of three-quarters of a mile stretch of Jarvis Street.
COUNCILMEMBER KUESTER MOVED TO AUTHORIZE CHANGE ORDER
#1 TO THE 2001 OVERLAY PROJECT, TO ADD THE PAVING OF THREE-
QUARTERS OF A MILE OF JARVIS STREET TO THE PROJECT,
CONTINGENT UPON A LETTER OF CREDIT OR SOME TYPE OF
GUARANTEE FROM BILL CHRISTIAN FOR $60,000. COUNCILMEMBER
TVEITE SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Request to Advertise to Hire an Employee in the Economic Development
Department
Mayor Kflinzing noted that the Economic Development Authority has recommended that
the Council authorize staff to advertise to hire an economic development staff position. She
indicated that the EDA felt it was important to have someone hired prior to the Director's
leave of absence and also felt the slow economy was a justification for putting forth more of
an effort to attract businesses. Councilmember Motin indicated that the EDA recommended
that the posidon be responsible for some of the HRA activities and be somewhat reduced
from the previous Assistant Director of Economic Development's position.
COUNCILMEMBER MOTIN MOVED TO AUTHORIZE STAFF TO
ADVERTISE FOR THE ECONOMIC DEVELOPMENT STAFF POSITION.
COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
City Council Minutes
September 10, 2001
5. Open Mike
Page 6
Mr. John Thompson, 15383 County Road 30, representing the Board of Elk River Bike
Park and BM2X conveyed his thanks and appredation to the City and Phil Hals and his
department for the help they have given to the BM2X project.
6.1.
Request by Simonson's Salon and Day Spa for Conditional Use Permit for Therapeutic
Massage - CU 01-28
Request by Simonson's Salon and Day Spa for Massage Establishment License
City Clerk Sandra Peine indicated that Simonson's Salon have requested a conditional use
permit for a therapeutic massage establishment located at 19320 Highway 169. She noted
that all conditions have been met and that the Planning Commission has recommended
approval of the request. The City Clerk also noted that Simonson's Salon is requesting a
Therapeutic Massage License.
Mayor Klinzing opened the public hearing. There being rio one for or against the matter,
Mayor I~dinzing closed the public hearing.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE CONDITIONAL
USE PERMIT FOR A THERAPEUTIC MASSAGE ESTABLISHMENT CU 01-28
FOR SIMONSON'S DAY SPA. COUNCILMEMBER KUESTER SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER DIETZ MOVED TO APPROVE A THERAPEUTIC
MASSAGE ESTABLISHMENT LICENSE FOR SIMONSON'S SALON.
COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
7. Other Business
The City Administrator indicated that a settlement has been made for the Deschene
property in the amount of $320,000 including interest.
COUNCILMEMBER DIETZ MOVED TO ACCEPT THE SETTLEMENT FOR
THE DESCHENE PROPERTY IN THE AMOUNT OF $320,000 INCLUDING
INTEREST. COUNCILMEMBER TVEITE SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
Letter from Smokeshop
The Council discussed the letter received from the Smokeshop in Elk River. The Council
questioned whether a Smokeshop requires a conditional use permit. The City Administrator
noted that he would review this issue w/th the Planning Department.
8. Staff Updates
Council Meeting Schedule
The City Administrator reviewed the Council meeting schedule through February 2002.
City Council Minutes
September 10, 2001
9. Adjournment
Page 7
There being no further business, Mayor I~dinzing adjourned the meeting of the Elk River
City Council at 8:50 p.m.
Sandra Peine
City Clerk