08-25-2003 CC MIN - SPECIALMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT LIONS PARK CENTER
MONDAY, AUGUST 25, 2003
Members Present:
Members Absent:
Mavor K_linzmg, Councilmembers Dietz, Kuester, Motin, and Tveite
None
Staff Present:
City Administrator Pat Iadaers; Finance Director Lori Johnson; Director of
Planning Michele McPherson; Police Chief Jeff Beahen; Fire Chief Bruce
West; Ice Arena Manager Rich Czech; and Recording Secretary Jessica
Miller
Call MeetingTo 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 Ia-flinzmg.
Consider 8/25/2003 Agenda
COUNCILMEMBER KUESTER MOVED TO APPROVE THE COUNCIL
AGENDA AS PRESENTED. COUNCILMEMBER TVEITE SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
Consider Consent Agenda
COUNClLMEMBER MOTIN MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1.
3.2.
3.3.
8/18/03 COUNCIL MINUTES
CHECK REGISTER
PAY ESTIMATES
CITY HALL
· PUBLIC SAFETY
· BOSTON/CONCORD STREET IMPROVEMENT PROJECT
· 2003 PAVEMENT REHABILITATION PROJECT
COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Open N~ke
Clifford Lundberg, 400 Jackson Avenue, stated that he believes most people want a
downtown revitalization project but that they do not believe Jackson Square should be part
of the project. Mr. Lundberg expressed concerns about the size of the proposed building to
be constructed on the Jackson Square property and the loss of this historic downtown open
space. Mr. Lundberg also stated that he has concerns about the city gaining clear fide to the
Jackson Square property.
City Council Nfinutes
August 25, 2003
Page 2
Mr. Lundberg indicated that he does not believe that the public parking issue in downtown
has been addressed.
Mayor IQlinzing stated that the HtLA, City Council, and staff are all concerned about the
parking and she feels that the public parking will be adequate with this project. Mayor
Klinzing also stated that the lender would never lend to the developer on this project if a
clear tide could not be obtained.
Matt Westgaard, 19417 Baldwin Circle, questioned the status on the utility, correction on
Baldwin Circle. He stated that he has left messages with City, Engineer Terry Maurer but has
not received a response yet.
Mayor I(3inzing asked Director of Planning Michele McPherson to address this issue. Ms.
McPherson stated that this was the first she has heard about Mr. Westgaard's issues. Ms.
McPherson stated that she knows that there is a letter of credit currendy outstanding for the
developer. She stated that she will check with N[r. Maurer and her cont~tct at the developer's
office and get back to Mr. Westgaard.
Yern Hanson, MetroPlains, wished to clarify that the size of the proposed building to be
constructed on the Jackson Square property is three stories. Mr. Hanson also stated that
there will be adequate public parking in the downtown area once the project is completed.
Chuck Christian, Owner 707 building and co-owner of the Cinema building, stated that he
has concerns that there will not be adequate public parldng for the downtown businesses.
NIX. Christian also stated that he believes the proposed project is too large for the size of the
downtown area.
Rob VanValkenburg, Sunshine Depot building owner, stated that he agrees with NIX.
Lundberg's comments. Nix. VanValkenburg stated that customers ~vill not walk a block to
visit the downtown businesses and so more up front parking is needed. Nix. VanValkenburg
stated that parking is the key issue with the proposed project.
Mayor Klinzing indicated that she believes a major part of the parking problem is due to
employees parking in front of the businesses.
Councilmember Dietz stated that if the Municipal Utilities building is removed and parking
is created, that an area could be reserved for downtown employees, which would then free
up closer parking spots for customers.
5.1. Accept Wal-mart Donations for Pohce and Fire Department
Pete Reiner representing Wal-Mart presented Fire Chief Brace West and Police Chief Jeff
Beahen with donations of $1,500 each. Mr. Reiner stated that he appreciated the support of
both departments and the support of the city. These donations will be used to purchase a
LCD projector for training.
Chief Beahen thanked Wal-Mart for their great support of the community.
Chief Beahen stated that he was on-site at a very intense and dangerous lumber yard fzre at
Arrow Building Center on Sunday, August 24, 2003 and he feels Chief West and the Elk
River Fire Department should be commended for their excellent work. He stated that Chief
City Council Nfmutes
August 25, 2003
Page 3
West coordinated the mutual aid assistance of surrounding communities and that multiple
f'~refighters temporarily went down due to heat related injuries.
5.2.
Public Safety, - City, Hall Construction Update
Don Stutesman from ICraus-Anderson Construction provided an update on the Public
Safety - City Hall construction project. Mr. Stutesman stated that there are onlv minor items
that need to be completed at the Public Safety Facility,. NLr. Stutesmen indicated that the sod
should be laid this week and once that is completed the final lift of blacktop will be put
down.
Mr. Stutesman stated that two-thirds of the old City, Hall roof has been replaced and a
majority of the interior walls have been removed and new wails are beginning to be
constructed.
CounciLmember Dietz questioned the status of the EOC. Mr. Stutesman stated it looks as
though all of the cabinets will need to be replaced. He stated that he h6ped to have the EOC
completed by November 1. If final agreement can be reached next week to replace all the
cabinets, then they can be ordered. The cabinets will take six weeks to be delivered and
another one to two weeks to be installed.
5.3. Consider Holding City, Council Meetings at the Little Theatre
City Administrator Pat Klaers stated that he and Director of Planning Michele McPherson
visited the Little Theatre and the facility is coming along nicely and would be able to
accommodate the City Council meetings.
Councilrnember Kuester stated that she has checked the availability of the theatre and it is
available for Monday evening meetings sometime in mid-October.
Councilmember Kuester questioned if the current equipment we are using would need to be
moved. Ms. McPherson stated that the school does have portable microphones that the city
could use for meetings.
COUNCILMEMBER KUESTER MOVED'TO BEGIN HOLDING THE CITY
COUNCIL MEETINGS AT THE LITTLE THEATRE ON OR ABOUT
OCTOBER'20, 2003. COUNCILMEMBER DIETZ SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
It was noted that the HtLA and EDA meetings will also be held at the Little Theatre.
School Superintendent Dr. Alan Jensen indicated he is pleased that the city will be utilizing
the Little Theatre facility.
6.1. Request by ISD 728 for Temporary. Classrooms Case No. CU 03-20, Public Hearing
Director of Planning Michele McPherson stated that ISD#728 has requested an interim use
permit to allow six temporary classrooms until June 2005 in order to relocate ninth grade
students to the senior high school. The temporary classrooms will be located in the faculty
parking lot north of the high school. Ms. McPherson stated that the Planning Commission
voted unanimously to recommend approval with the condition that the school comply with
the requirements in Fire Chief West's memo of August 14, 2003.
City Council Nhnutes
August 25, 2003
Page 4
Councilmember Dietz questioned why the school district is spending taxpayer money to add
temporary classrooms to house the ninth graders when there is adequate room for them at
Vandenberg and Salk.
Superintendent Dr. Alan Jensen stated that the school board passed a resolution a few years
ago to have the Elk River Senior High be a 9-12 high school. Dr. Jensen stated that the
portables may not be needed next year because the high school should be back down to its
normal capacity, with some students attending the Rogers and Zimmerman High Schools.
Councilmember Dietz questioned the need for sprinklers in the temporary classrooms. Fire
Chief Bruce West stated that he would have preferred the classrooms be equipped with
sprinklers but he consulted wid~ the State Fire Marshall's office and code does not require
the classrooms be sprinkled.
COUNCILMEMBER MOTIN MOVED TO APPROVE THE ISD#728 REQUEST
FOR AN INTERIM USE PERMIT TO ALLOW SIX TEMPORARY
CLASSROOMS UNTIL JUNE 2005 WITH THE CONDITION THAT THE
APPLICANT COMPLY WITH THE CONDITIONS OUTLINED IN CHIEF
WEST'S MEMO DATED AUGUST 14, 2003. COUNCILMEMBER TYEITE
SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. Councilmember
Dietz abstained.
7. Budget Worksession
Capital Improvement Plan
City Administrator Pat I~aers stated that he would like the Council to discuss and consider
some of the Capital Improvement Plan (CIP) items but the entire five-year CIP will be
reviewed and updated at a later date.
YMCA
Discussion took place regarding the possibility of the city helping to fund a YMCA in Elk
River. Mr. Klaers stated that there is no money in the CIP budget for a YMCA or a
community center and that the YMCA is looking for Cikrificadon of the city's financial
support.
Mayor K1/nzing introduced YMCA Founder's Committee Chair Bill Hell/well. Mr. Helliwell
indicated that the Founder's Committee is working on a Founder's campaign for operating
expenses for 2-3 years and then would be looking to begin a building capital campaign.
Mayor I(2inzing indicated that in her conversation with the YMCA of Minneapolis staff, it
was indicated that they would be looking for a contribution of upwards to $3 rmllion from
the city to be paid over a period of dme. Discussion took place on how the city could
contribute and where the funds would come from. Support for the YMC_A was expressed by
the City Council but concern over funding of the building was also expressed by the
Council. The Council indicated support for a public referendum vote to help fund the
building project. Mr. I~aers recommended that the YMCA be discussed again when the
Council considers the entire CIP budget and that he will contact YMCA representatives
about the referendum concept.
Fire Truck
Mr. IZdaers asked the Council to note that a new fire truck is in the CIP budget for 2005
costing approxSrnately $375,000. Fire Chief Bruce West noted that the truck that will be
replaced is from 1980.
City Council Nlinutes
August 25, 2003
Page 5
Councilmember Tveite questioned if the truck could be purchased in components. Chief
West stated that it possible that the chassis could be purchased in 2004 and paid for in 2005
when the rest of the truck is ordered. Mr. West noted that purchasing the truck this way
could save the city $8,000-$9,000. Interest rates for equipment certificates were discussed.
The Council expressed support for funding this purchase over two years, using a small
amount of equipment reserves for the truck, and funding the balance by using equipment
certificates.
Ice Arena Barn Floor
Mr. Klaers stated that the replacement of the Barn floor is in the CIP for 2005 but it is
unknown how to fund the project and if the floor will last until then. Councilmember Tveite
noted that it was the recommendation of the Ice Arena Commission at their August 19,
2003 meeting for the Council to allocate funds to replace the floor as soon as possible. Mr.
Klaers noted that the Commission also recommended that the City Council allow up to
$20,000 of arena equipment reserves to be used to begin preliminary plhns and design work
on the floor. Arena Manager Rich Czech stated that some soil boring work needs to be done
before the skating season if the project is to take place next year.
It was the consensus of the Council to allocate funds to begin preliminary work on the barn
floor now and to budget for replacement of the floor in 2004 when the CIP is updated later
this year. Funding options for the floor replacement project were briefly reviewed.
Pavement Rehabilitation Program (PRP)
City Council discussion took place on the pavement rehabilitation program. City
Administrator Pat I~aers and Finance Director Lori Johnson reviewed different funding
options for the program with the Council.
2004 General Fund Budget
Overview
City Administrator Pat I<laers stated that the two major issues that the city has had to deal
with in putting together the 2004 budget are the local government aid (LGA) cuts of
$644,138 and the levy limits. Mr. I~aers stated that in 2004, 60% of the LGA cuts can be
made up by way of a tax increase. Mr. Klaers stated that in order to make the budget work,
the 60% has been added into the revenues. He also stated that a $100,000 levy for the street
replacement project has been placed outside of the levy limits. Prior to 2004, the city tax levy
for this program was within the limited levy. The Council discussed using the street reserves
for the city share of the 2003 project and bonding for the taxes part and the special
assessment part of the project.
Expenditures
Mr. I<laers stated that based on the June 2003 amended budget, the expenditures for 2004
are up 7.1% or $516,100. He stated that the expenditures in the proposed 2004 draft budget
are $7,764,950.
City Administrator Pat K. laers indicated that there are no reductions in hours or lay offs
proposed for employees in the 2004 budget and the 3% cost of living increase, normal pay
plan step increases, and an increase of $10 per month for insurance is also included in the
budget. Council discussion took place as to having the city's pay plan evaluated. It was the
consensus of the Council to have staff begin evaluating this issue within the next six
months.
City Council 5/[mutes
August 25, 2003
Page 6
Mr. Klaers stated that the 2004 budget calls for the following four positions to be filled or
added: buildings and grounds maintenance, police officer to replace the vacancy left when
Chief Zerwas retired, street/park maintenance I position to replace Gary Lore, and a
information technology employee. Discussion took place on the benefits and urgency of
each position. It was discussed ~at a job share between a cable a~i~tant and an information
technology person be explored. Councilmember Dietz expressed support for another cable
TV employee.
Mr. I~aers briefly reviewed the supplies and other services/charges and capital outlay
expenditure categories with the Council.
Mr. Klaers reviewed some of the highlights of the budget with the Council. M_r. I~aers
stated that he has reduced some of the departmental budgets and asked the City Council to
let him know if they would like the full amount of the requests reinstated.
Revenues
City Administrator Pat I~aers reviewed with the City Council a preliminary levy sample. ND.
Klaers stated that the city could approve the maxirnurn levy allowed by the state plus the
noted special levies and then the levy could be lowered at a later date. It was noted that the
growth in the city net tax capacity amount is not known at this time.
Mayor Kkinzing stated that She would like to see something put together for the public that
explains the budget, the tax levies, transfers in and transfers out, etc. so they can be easily
understood. Finance Director Lori Johnson stated that she could put something together.
Mr. Klaers indicated that there are no host fees included in the 2004 budget. He stated that
90% of the actual 2002 amount would total $290,000 and it is up to the Council to decide if
they want some or all of that amount added to the budget. It was the consensus of the
Council to further review the budget before making a decision on the host fees.
Councilmember Tveite stated that he believed the city needed a Park and Recreation
Director sooner rather than later due to the growth in these services and programs in the
city. The Council discussed the cost for a director position and the possibility of starting a
position at mid-year 2004.
Finance Director LoriJohnson noted that th-e tax levy resolution needs to be certified to the
county by September 15, 2003 so the Council needs to certify the levy at their September 8,
2003 meeting. Ms. Johnson stated that she will be working with Bond Counsel in the next
few weeks and should have a better idea of the financial options for the street pavement
program by the September 8 meeting.
COUNCILMEMBER TVEITE MOVED TO APPROVE THE FOLLOWING:
· USE OF EQUIPMENT RESERVES TO PURCHASE THE POLICE
DEPARTMENT MODEMS ($11,000)
· USE OF EQUIPMENT RESERVES TO PURCHASE TWO COMPUTERS
FOR THE FINANCE DEPARTMENT ($3,000)
· USE OF ICE ARENA EQUIPMENT RESERVES TO BEGIN
PRELIMINARY WORK ON THE BARN FLOOR (UP TO $20,000)
· USE OF COUNCIL CONTINGENCY FUNDS TO PURCHASE THE
REQUEST PARTNERS SOFTWARE ($6,000).
City, Council ~v[mutes
August 25, 2003
Page 7
COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
8. Other Business
There was no Other Business.
9. Staff Updates
There were no Staff Updates.
10. Adjournment
There being no further business, Mayor Fdinzing adjourned the meeting of the Elk River
City Council at 10:27 p.m.
Jessica Miller
Recording Secretary