10-27-1997 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 27, 1997
Members Present:
Mayor Duitsman, Councilmembers Farber, Holmgren, Thompson,
and Dietz
Members Absent: None
Staff Present:
Pat Klaers, City Administrator; Lori Johnson, Assistant City
Administrator; Phil Hals, Street/Park Superintendent; Tom Zerwas,
Police Chief; Sandra Thackeray, City Clerk; Steve Ach, City Planner
1. Call Meetinq 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 Mayor Duitsman.
2. Consider 10/20/97 City Council A.qenda
COUNClLMEMBER FARBER MOVED TO APPROVE THE AGENDA AS PRESENTED.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3. Consider Consent A,qenda
COUNClLMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1.
3.2a.
3.2b.
3.2¢.
3.2d.
3.2e.
3.3.
SPECIAL ASSESSMENT REAPPORTIONMENTS FOR COUNTRY CROSSING 4TM
ADDITION - ASSESSMENTS TOTALING $235,300 AGAINST OUTLOTS A AND B
OF COUNTRY CROSSING 3"° TO BE ASSESSED TO LOTS 1-8, BLOCK 1, AND
LOTS 1-16, BLOCK 2 OF COUNTRY CROSSING 4TM - APPROVED
RESOLUTION 97-113, ADOPTING FINAL ASSESSMENT ROLL FOR
CHERRYWOOD HILLS TRUNK WATER AND SEWER - APPROVED
RESOLUTION 97-114 ADOPTING FINAL ASSESSMENT ROLL FOR ELK RUN TRUNK
WATER AND SEWER AND LATERAL WATER IMPROVEMENTS - APPROVED
RESOLUTION 97-115 ADOPTING FINAL ASSESSMENT ROLL FOR 1997 SEWER
AND WATER CONNECTIONS - APPROVED
RESOLUTION 97-116 ADOPTING AND LEVYING ASSESSMENTS FOR UNPAID
GARBAGE COLLECTION SERVICES AS OF SEPTEMBER 1, 1997 - APPROVED
RESOLUTION 97-117 ADOPTING FINAL ASSESSMENT ROLL FOR SOUTH JOPLIN
STREET IMPROVEMENTS - APPROVED
RENEWAL OF SERVICES AGREEMENT WITH MINNESOTA MUNICIPAL UTILITIES
ASSOCIATION FOR PARTICIPATION IN ITS REGIONAL SAFETY PROGRAM -
APPROVED
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Elk River City Council Minutes
October 27, 1997
Page 2
4.1.
4.2.
Consider Advertisinq for Plannin.q Intern
City Planner Steve Ach informed the Council that Planning Intern Brady Halverson
has submitted his resignation and will be terminating his employment with the city
in two weeks. Steve Ach requested the Council to consider approving
advedising for a planning intern to fill this position.
MAYOR DUITSMAN MOVED TO AUTHORIZE STAFF TO ADVERTISE FOR THE PLANNING
INTERN POSITION. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
Councilmember Holmgren indicated that he would like to wait on his decision to
hire a planning intern until he has reviewed the budget with the Council.
Councilmember Farber indicated that he would also like to review the budget
prior to making this decision.
MAYOR DUITSMAN WITHDREW HIS MOTION. COUNCILMEMBER HOLMGREN
WITHDREW THE SECOND.
It was the consensus of the Council that this item would be discussed following
the budget discussion.
Consider Contribution to Coalition of Utility Counties and Coalition of Utility Cities
Assistant City Administrator Loft Johnson indicated that Sherburne County has
been a very active participant in the Coalition of Utility Counties. She indicated
that the city has been able to rely on the county for information and leadership in
dealing with this issue. She further indicated that the Coalition of Utility Cities has
also been working on the issue and has hired a lobbyist to protect the city's
interests. Lori Johnson indicated that earlier this year the city contributed $500 to
Sherburne County to help offset its lobbying costs. She indicated that the
Coalition of Utility Cities has now made a formal request for city participation
through a Joint Powers Agreement and proposed dues of .$1,735.
Loft Johnson indicated that although Sherburne County has not made a request
for additional city contributions, it may be appropriate for the city to consider
helping the county fund its share of the cost for the lobbyist needed for upcoming
legislative sessions. She indicated that the Council should also decide whether it
wants to become a member of the Coalition of Utility Cities through its Joint
Powers Agreement and pay the proposed dues or whether the Council would
prefer to simply make a contribution without becoming an official member of the
group.
Lori Johnson indicated that Assistant County Attorney Kathy Heaney has
prepared a resolution for the City Council to consider regarding the elimination of
personal property tax on generation facilities and transmission and distribution
lines in the state.
Mayor Duitsman indicated his position that the city would be better served
working with Sherburne County. Mayor Duitsman stated that he did not concur
with letter b of the resolution regarding the insinuation that the city would receive
a negative bond rating.
Elk River City Council Minutes
October 27, 1997
Page 3
4.3.
If was the consensus of the Council to have staff reword the proposed resolution
and bring it back to council for consideration on November 3.
Discussion Board and Commission Terms
City Clerk Sandra Thackeray informed the Council that several board and
commission members' terms will be expiring December 31, 1997. She requested
the Council to review the list and inform her as to which positions should be
advertised and interviewed.
It was the consensus of the Council to authorize the City Clerk to contact board
and commission members to find out whether or not they are interested in
reapplying.
Open Mike
No one appeared for this item.
Budqet Worksession
lA.
Heritage Landing Drainage Issues - City Planner Steve Ach reviewed the
issue regarding the drainage easement in Heritage Landing I and II
additions. He indicated that a drainage easement was supposed to be
granted to the city as part of the final plat by Heritage Landing
Partnership for drainage and utility purposes over Lots 1,2, 3, and 4, Block
1, Heritage Landing Il. He further indicated that the easement was not
granted over Lot 3.
Dennis Chuba was present and reviewed the sequence of events which
are listed in the memo to the Mayor & City Council from the City Planner
dated October 27, 1997. Members of the neighborhood were present
and indicated their concern about the drainage pattern.
COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE THE STAFF TO MEET
WITH THE DEVELOPERS THIS WEEK AND REPORT BACK TO THE CITY COUNCIL
ON MONDAY, NOVEMBER 3, 1997. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
lB.
Update on Lion's Park Teen Center Proposal - Harold Gramstad,
representative of Elk River Lions, indicated that the Lions Club is proposing
to commit .$150,000 from pull tab operations within the next four years for
a teen center at Lions Park. He further indicated that the Lions are also
hoping that the city will match this $150,000 to complete the teen center.
Discussion was held by the Council regarding the fact that the teen
center costs did not include necessary funds for staffing, maintenance,
and general operating expenses. Councilmember Farber indicated that
the Boy's and Girl's Club should be considered as this may be a viable
option for helping to run the teen center. Councilmember Holmgren
suggested that Harold Gramstad approach the Lions to find out if the
Lions would be open to working together with the Boy's and Girl's Club.
Harold Gramstad indicated that he would pursue this issue. He further
Elk River City Council Minutes
October 27, 1997
Page 4
indicated that the Lions Club will consider the building as being a city-
owned and city-run building once it is completed.
COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE THE STREET/PARK
SUPERINTENDENT TO WORK WITH THE LIONS CLUB ON PLANS AND COSTS
FOR THE CONSTRUCTION OF A TEEN CENTER. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
1C.
Historical Society Request for Contributions to its Heritaqe Center Buildinq
Project
Kud Kragness, John Oliver, and Bob Minton were present representing the
Historical Society. Bob Minton indicated that the Historical Society is
requesting a contribution from the City of Elk River in the amount of
$36,000 for the Sherbume County Historical Society Heritage Center
building. He indicated that this contribution could be paid over a 3 to 5
year time period. He further indicated that the Historical Society is
requesting all cities and municipalities in the county to participate. Kurt
Kragness distributed a list of cities and townships who have contributed
cash or pledges.
Councilmember Holmgren indicated that he would like to see the city
become involved with the project, however he was unsure as to the dollar
amount that the city could fund.
It was the consensus of the Council to make a decision regarding this
contribution following budget discussions.
2A.
Naples and 186th Easements and Street Work - The City Administrator
informed the Council that the city has received the easements necessary
to do minor street improvements to Naples and 186th. He indicated that
the improvements will improve the drainage and driveability for the area.
2B.
City Shirts/Jackets/Etc. Lo.qo - The City Administrator informed the Council
that the city shirt/jacket program has been well received by the
employees. He indicated that previous Council action authorized the city
to pay for the city logo for city employees only. The City Administrator
requested the Council to consider paying for the city logo for any articles
of clothing ordered by city employees including orders for family or gifts.
COUNCILMEMBER FARBER MOVED TO PAY FOR THE CITY LOGO AND NAMES
FOR CLOTHING ARTICLES ORDERED BY CITY EMPLOYEES THROUGH THE CITY
JACKET PROGRAM AND FURTHER TO REIMBURSE THOSE EMPLOYEES WHO
HAVE ALREADY PAID FOR THEIR OWN LOGOS. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
2C.
Sherburne County Cost Sharing Proposal for Public Improvement Projects -
The City Administrator reviewed the County Engineer's proposal for
participation by local units of government in county public improvement
projects. The City Administrator informed the Council that the city has
some concerns with the proposal and that the City Engineer will be
preparing a response for Council consideration on November 3, 1997.
Elk River City Council Minutes
October 27, 1997
Page 5
2D.
2E.
2F.
2G.
Minnesota Sports Federation Grant Proposal - Pat Pelstring, representing
the Minnesota Sports Federation, requested the city's sponsorship for state
assistance in the amount of $2 million to finance the construction of the
Minnesota Sports Federation building.
COUNCILMEMBER HOLMGREN MOVED TO SUPPORT THE REQUEST FOR STATE
ASSISTANCE IN THE AMOUNT OF $2 MILLION. COUNCILMEMBER DIETZ
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Old Northbound Store and Watz Up? Caf~ Club - Mayor Duitsman
indicated that Mark and Annette Watz have discussed the possibility of
leasing the old Northbound Liquor store for the Watz Up? Caf~ Club. The
Caf~ Club would be a club where teens could meet and associate. The
Mayor indicated that he would like a consensus of the Council prior to
pursuing negotiations with the Watz'. Councilmember Holmgren
indicated that he felt the city should contact Ron Dargis, owner of Ron's
Foods, and inform him of what the city is proposing for the building.
It was the consensus of the Council that it was in favor of the proposal for
the Watz Up? Caf~ Club.
Use of Park Equipment Reserves to Purchase Outdoor Ice Maintenance
Equipment - Street/Park Superintendent Phil Hals indicated that he has
received quotes for the purchase of equipment necessary to improve
outdoor ice rink quality. The equipment totals $12,613.85 and consists of a
front mounted broom, a rear mounted snow blower, and a cab.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE PURCHASE OF
EQUIPMENT NECESSARY TO IMPROVE THE ICE RINK QUALITY IN THE AMOUNT
OF $12,613.85. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
Park and Recreation Commission Recommendation on Purchase of
Outdoor Hockey Boards - Street/Park Superintendent Phil Hals informed
the Council that the old hockey boards in Lions Park have been removed
due to their deteriorated condition. Phil Hals indicated that the Park and
Recreation Commission recommended replacing the boards at a cost of
approximately $3,500. The Commission also recommended obtaining a
second set of hockey boards for another ice rink which is yet to be
determined. He stated that staff does not support this recommendation
to purchase an extra set of boards at this time until the ice rink can be
identified and utilized.
Councilmember Thompson indicated his concern that an ice rink be
located on the east side of Highway 169.
COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE PURCHASE OF
HOCKEY BOARDS TO BE USED AT LIONS PARK. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Elk River City Council Minutes
October 27, 1997
Page 6
2H.
21.
2J.
Use of Undesiqnated Equipment Reserves for Fitness/Wellness Room
Equipment
COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE PURCHASE OF THE
FOLLOWING EQUIPMENT FOR THE FITNESS/WELLNESS ROOM FOR A TOTAL OF
57,595: TREADMILL - 53,955; SUPER SLED - 51,749; BIKE - 51,249; AND WORK
BENCH - $169. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
It was the consensus of the Council not to purchase the stereo equipment
requested for the Wellness/Fitness Room.
Funds in 1997 Equipment Reserves Bud.qet for an Administration Vehicle
Beinq Applied Towards a Multi-purpose Van - The City Administrator
indicated that funds have been included in the 1997 equipment reserve
budget for a new administrative vehicle. He indicated that this vehicle
has not yet been purchased. He requested the Council to consider
authorizing these funds for the purchase of an all purpose city mini-van to
be used to transport larger groups of people.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE PURCHASE OF A VAN IN
THE AMOUNT OF 512,500. COUNCILMEMBER THOMPSON SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
Varsity Field Improvements for 1998
COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE EXPENDITURE OF
56,000 FOR ADDITIONAL FENCING, WATER FOR FIELD MAINTENANCE AND A
FOUNTAIN, AND SCOREBOARD FOR THE VARSITY FIELDS CONTINGENT ON
THE JOINT POWERS AGREEMENT BEING SIGNED. COUNCILMEMBER
THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Proposed 1998 Budqet
The City Administrator informed the Council that on September 8, the
Council approved the proposed maximum budget and levy resolution in
the amount of $4,977,200. The City Administrator indicated that since the
August 25, budget worksession, a number of changes have been made in
the proposed 1998 budget. The City Administrator reviewed these
changes with the Council. He explained that a decrease in tax revenues
must take place due to the Iow increase in the city' s net tax capacity.
He indicated that the city will have to cut between $120,000 and $240,000
from the tax revenue line in order to keep the city tax increase at a
reasonable rate.
Mayor Duitsman reviewed his recommendation for part time fire
department salaries. The Council discussed the issue of mandatory
training counting toward educational incentive hours. It was the
consensus of the Council that mandatory training should not count
towards incentive hours. It was further the consensus that 60 hours for the
first increase is a lot of hours for volunteers.
Elk River City Council Minutes
October 27, 1997
Page 7
COUNCILMEMBER DIETZ MOVED TO CONCUR WITH THE MAYOR'S PROPOSAL
FOR PART TIME FIRE DEPARTMENT SALARIES AND THAT THE ONLY NEGOTIABLE
POINT IN THE PROPOSAL IS WHERE THE TRAINING HOURS WILL START.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
B. Taxes - Mayor Duitsman indicated that what the Council decides
to do this year will affect other years and pro]ects such as the Lake Orono,
Ice Arena, and East Highway 10 development project. Mayor Duitsman
explained that it is his goal to increase the development fund by $.5
million dollars by decreasing the cash flow reserves in an orderly fashion.
Mayor Duitsman indicated it was also his goal to decrease the 1998 tax
revenues.
Councilmember Farber indicated that if the city does not increase the tax
rate and revenues it will be playing catch-up in the following years. He
indicated that Elk River is a growing city and the state has forced the issue
of a tax rate increase due to the tax class changes approved by the
legislature.
The City Council reviewed different scenarios for balancing the budget
and reducing the tax increase. After fudher discussion regarding this issue
it was the consensus of the Council to work toward a .74 tax rate increase
from 24.683 to 25.423 which is a 3 percent increase, by cutting $149,650
from tax revenues. The City Administrator indicated that he would
proceed to make adjustments in this amount from the budget and bring
the issue back to the Council on November 3 for review.
C. Contribution Policy - The City Administrator indicated that it is
staff's recommendation that the city continue to follow state guidelines as
its contribution policy. No decision was made regarding the city's
contribution toward the requests made this evening.
D. Consider 1998 Pay Resolution - COUNCILMEMBER HOLMGREN
MOVED TO ADOPT RESOLUTION 97-118 ADOPTING THE 1998 PAY PLAN FOR
NON ORGANIZED EMPLOYEES. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
7. Other Business
Assistant City Administrator Lori Johnson informed the Council that staff will be
revising the personnel ordinance to include policies that have been adopted,
including the proposal for the sick time severance pay, and to bring it up to date.
The City Administrator updated the Council on the County Government Center
construction. He indicated that the city has been requested by the county to
reduce some of its fees. He indicated that the total amount of city fees is
approximately .$130,000 with an additional .$180,000 in assessments for the public
improvements. The City Administrator indicated that he has informed the County
Administrator that in order to be consistent with the schools, churches, and other
facilities, the city would not be able to forgive the fees.
Elk River City Council Minutes Page 8
October 27, 1997
Councilmember Farber suggested considering an exchange of services with the
county in order to help them out. After further discussion it was the consensus of
the Council to not rebate the fees associated with the County Government
Building expansion and further to have the City Administrator review the possibility
of exchanging services with the county in lieu of some of the fees or assessments.
8. Staff Updates
There were no staff updates.
9. Adjournment
There being no further business, COUNCILMEMBER FARBER MOVED TO ADJOURN
THE MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
The meeting of the Elk River City Council was adjourned at 9:35 p.m.
Respectfully submitted,
City Clerk