11-21-2011 CCMMEETING OF THE ELK RIVER CITY COUNCIL
• HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 21, 201 I
Members Present: Mayor Dietz, Councilmembers Zerwas, Motin, Westgaard, and Gumphrey
Members Absent: None
Staff Present: City Administrator Calvin Portner, Planning Manager Jeremy Barnhart,
Park Planner Chris Leeseberg, City Attorney Peter Beck, City Clerk Tina
Allard, Economic Development Director Annie Deckert, Building Official
Bob Ruprecht, Code Enforcement Official Dave Hetrick, Street
Superintendent Phil Hals, Assistant Street Superintendent Mark Thompson,
Planning Manager Jeremy Barnhart, Environmental Administrator Rebecca
Haug, City Engineer Justin Fexnrite, Recreation Manager Steve Benoit,
Parks and Recreation Director Michael Hecker, Fire Chief John
Cunningham, Accountant Lori Stich, Assistant Finance Director Lori
Ziemer, Administrative Police Captain Bob Kluntz, Patrol Captain Ron
Nierenhausen, and Police Chief Brad Rolfe
Also Present: Planning Commissioner Eric Johnson
1. Call Meeting To Order
• Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called
to order at 6:30 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 11 /21 /2011 Agenda
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER GUMPHREY TO APPROVE THE AGENDA. MOTION
CARRIED 5-0.
4. Consider Consent Agenda
MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY
COUNCILMEMBER ZERWAS TO APPROVE THE FOLLOWING CONSENT
AGENDA:
4.1 NOVEMBER 7 AND 14, 2011, COUNCIL MINUTES.
4.2. CHECK REGISTER.
4.3.A.&B PAY ESTIMATES AS OUTLINED IN THE STAFF REPORTS.
4.4. STAFF REPORT MEMORANDUM WHICH INCLUDES
RESPONSES TO COMMENTS RECEIVED IN REGARDS TO
• 171sT AREA AUAR.
City Council Minutes page 2
November 21, 2011
-----------------------------
4.5.A. RESOLUTION 11-66 ADOPTING AND LEVYING
•
ASSESSMENTS FOR UNPAID WATER UTILITY SERVICES AS
OF SEPTEMBER 30, 2011.
4.5.B. RESOLUTION 11-67 ADOPTING AND LEVYING
ASSESSMENTS FOR UNPAID GARBAGE COLLECTION
SERVICES AS OF SEPTEMBER 1, 2011.
RESOLUTION 11-68 ADOPTING AND LEVYING
ASSESSMENTS FOR UNPAID SEWER SERVICES AS OF
SEPTEMBER 30, 2011.
4.5.C. SPECIAL ASSESSMENT REAPPORTIONMENT AS OUTLINED
IN THE STAFF REPORT.
4.5D. RESOLUTION 11-69 ADOPTING AND LEVYING
ASSESSMENTS FOR UNPAID SEWER SERVICES AS OF
SEPTEMBER 30, 2011.
4.6. APPROVE AND EXECUTE THE MEMORANDUM OF
UNDERSTANDING REGARDING STREET LIGHT
INSTALLATION AND MAINTENANCE BETWEEN ELK
RIVER MUNICIPAL UTILITIES AND THE CITY OF ELK
RIVER, MINNESOTA.
MOTION CARRIED 5-0.
5. Open Mike
Sue Farber, 19404 Norfolk Street -Requested the Council re-evaluate the sidewalk plowing
polity. She further explained how her sidewalk is unique because there is no boulevard •
between the sidewalk and the street and it is physically difficult to shovel snow dropped
from the plows. She noted other areas of the city, such as the Deerfield subdivision, that
were in a similar situation.
Council added this item to the December worksession agenda and asked that past Council
history to be provided.
6.1. City of Elk River Volunteer of the Month ~IVlayor Dietz
Mayor Dietz presented the Volunteer of the Month to JoAnn and Victor Arnold.
6.2. Mrs. Sherburne County International Banner Presentation
Mayor Dietz introduced Mrs. Sherburne County International Amy Nelson and discussed
the Mrs. International Pageant program.
Mrs. Minnesota Mindy Urzua spoke about the pageant.
Mrs. Nelson spoke about her platform of Turning Disabilities into Possibilities through The
Miracle League.
Mrs. Urzua and Mayor Dietz presented Mrs. Nelson with her banner.
•
City Council Minutes Page 3
November 21, 2011
7.1. Consider Extension of Meeting~ob and Wage Goals Under the Tax Abatement and
• Business Subsidy Agreement for The Bank of Elk River. Public Hearing
Ms. Deckert presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor
Dietz closed the public hearing.
Council questioned if there should be a polity regarding the number of allowed extensions
to be given to businesses.
Staff discussed the difficulty in evaluating companies in a similar fashion per a polity as each
company is different and has to meet varying job and wage goal requirements.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO APPROVE A SECOND EXTENSION
TO NOVEMBER 21, 2013 TO THE BANK OF ELK RIVER FOR MEETING THE
WAGE AND JOB GOALS OUTLINED IN THE TAX ABATEMENT AND
BUSINESS SUBSIDY AGREEMENT. MOTION CARRIED 5-0.
7.2. Request by Todd Plaisted to Overlay Rezoning to Mineral Excavation, Case No. CU 11-19 -
Public HearinP
Ms. Haug presented the staff report.
• Councilmember Westgaard stepped down from the dais due to a conflict of interest for Item
7.2. and Item 7.4.
Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor
Dietz closed the public hearing.
MOVED BY COUNCILMEMBER GUMHREY AND SECONDED BY
COUNCILMEMBER ZERWAS TO APPROVE CONDITIONAL USE PERMIT,
CASE NO, CU 11-19 TO ALLOW THE EXTRACTION OF SOIL FROM THE
NORTHERN WETLAND ON THE HEINEN PROPERTY TO CREATE A
WILDLIFE POND WITH THE FOLLOWING CONDITIONS:
1. ALL WORK IS COMPLETED WITHIN TWO YEARS OF PROJECT AND
SLOPES ARE A MINIMUM OF 4:1.
2. ALL SPOILS REMOVED FROM THE WETLAND ARE DEPOSITED
ON UPLAND AREAS.
3. HOURS OF OPERATION WILL BE LIMITED TO 7:00 A.M. - 7:00 P.M.,
MONDAY -SATURDAY.
4. APPLICANT MUST INSTALL TRUCK HAULING SIGNS ON BROOK
ROAD.
MOTION CARRIED 4-0. Councilmember Westgaard abstained.
7.3. Recluest by Todd Plaisted to Rezone Parcels to Mineral Excavation Overlay Zonine
• Ms. Haug presented the staff report.
City Council Minutes
November 21, 2011
Page 4
Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor •
Dietz continued the public hearing to December 19, 2011.
7.4. Appeal of Snow Abatement Charges Incurred at 18037 Monroe Circle
Mr. Barnhart presented the staff report.
Appellant didn't appear at the meeting.
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER ZERWAS TO DENY THE APPEAL OF THE PROPERTY
OWNER FOR THE $125 ABATEMENT CHARGES INCURRED AT 18037
MONROE STREET BASED ON THE FOLLOWING FINDINGS:
1. ON JANUARY 11, 2011, DUPLICATE LETTERS WERE SENT BY
CERTIFIED MAIL AND STANDARD MAIL TO THE PROPERTY OWNER
OF RECORD. TWO NOTIFICATION METHODS ARE USED BECAUSE
OCCASIONALLY A PROPERTY OWNER DOES NOT ACCEPT THE
CERTIFIED LETTER. CITY ORDINANCES REQUIRE THE PROPERTY
OWNER TO MAINTAIN THE PROPERTY, THEREFORE LETTERS ARE
NOT SENT TO TENANTS. ON JANUARY 27, 2011, THE SIDEWALK WAS
CLEARED AND THE CITY WAS INVOICED BY THE CONTRACTOR.
2. A COURTESY PHONE. CALL IS NOT A PART OF THE OFFICIAL
NOTICE REQUIREMENTS. (THERE IS NO PHONE NUMBER LISTED
FOR KAAP ENTERPRISES, THE LISTED PROPERTY OWNER IN
COUNTY RECORDS.) •
3. THE DATE A LETTER IS SIGNED FOR IS ENTIRELY INDEPENDENT
FROM THE CONTENTS OF THE LETTER.
4. THE NEWSLETTER WAS DISTRIBUTED BY MAIL TO ALL ADDRESSES
IN THE CITY THE WEEK OF JANUARY 18, 2011. THE NEWSLETTER
ARTICLES ARE INTENDED TO BE INFORMATIVE, BUT NOT
REGULATORY. NEWSLETTER ARTICLES DO NOT HAVE THE FORCE
OF OFFICIAL NOTICE IN ENFORCEMENT.
5. CITY STAFF FOLLOWED ESTABLISHED, WRITTEN PROCEDURE FOR
THE NOTIFICATION AND ABATEMENT OF IDENTIFIED NUISANCES
FOR THIS PARCEL.
MOTION CARRIED 4-0. Councilmember Westgaard abstained.
7.5. Project Conserve Phase II Update
Ms. Haug presented the results of the Project Conserve Phase II project.
8.1. Citizen Satisfaction Survey Presentation - chandlerthinks
Steve Chandler presented the results of the Citizen Satisfaction Survey via telephone and
through a PowerPoint presentation.
8.2. Resolution Supporting Mississippi River Trail Connection
Mr. Hecker presented the "staff report. •
City Council Minutes
November 21, 2011
Page 5
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER ZERWAS TO ADOPT RESOLUTION 11-70 SUPPORTING
THE MISSISSIPPI RIVER TRAIL CONNECTION. MOTION CARRIED 5-0.
9. Other Business
There was no Other Business.
10. Council Updates
There were no Council Updates.
11. Staff Updates
There was no Staff Updates.
Council recessed at 7:38 p.m. in order to convene into worksession.
12.1. 2012 General Fund Budget and Tax LevQ
Council reconvened at 7:45 p.m.
Mr. Fortner and Mr. Simon presented the staff report. Mr. Fortner discussed the decreasing
residential property values and legislative changes impacting Elk River. Mr. Simon reviewed
residential and commercial tax impacts utilizing various tax rate calculations. Mr. Fortner
• recommended adding $150,000 to the Contingenry Fund so he would have time to evaluate
the city organizational structure for the 2012 Requested Positions.
Mayor Dietz stated he is not in favor of hiring any new staff. He stated he would be in favor
of hiring a patrol officer if Council met some of his suggestions fox keeping the tax rate the
same as the 2011 rate. He stated any increase in the tax rate shifts the tax burden to
commercial property owners and didn't feel the rate should be increased. He stated levels of
service would not be affected if the rate were to remain the same.
Mayor Dietz stated a building inspector should be cut with the code enforcement officer
hours reduced to 4 hours for code enforcement and 4 hours reallocated to building
inspections.
Adfurtmentr, for Interim Street Szr~erintendent
Council questioned current Street Superintendent Phil Hals role if Mr. Thompson is acting
as the interim superintendent and within the same pay scale.
There was discussion on the history of the Personnel Committee. Mr. Fortner stated the city
has a good Compensation and Classification Plan in place. He stated there is no longer a
Committee but he plans on establishing a new committee. He stated generally cities use a
consultant to determine the merit of compensation/classification changes but Elk River has
been doing this in-house.
Councilmember Westgaard stated he is not opposed to a pay increase for Mr. Thompson
• taking on additional responsibilities but he would like to review past history over the last
City Council Minutes
November 21, 2011
Page 6
year of the personnel changes fox this division. He noted when Mr. Hals went to part-time •
other staff was supposed to receiving a pay adjustment in his absence.
Council direction was as follows:
^ Staff to put together a history of this item for a January Council meeting.
^ Review of organizational structure.
^ Clarification of duties for street superintendent and interim superintendent.
Tivo Unfilled Positions: Patrol O,~icer and E~ineerin~ Technician
Council had a discussion on whether to fill these positions or include them in the $150,000
contingency to allow the city adinuustrator to review whether the positions are needed.
Councilmember Motin stated the patrol officer may need to be evaluated and wasn't sure a
decision should be made tonight.
Chief Rolfe stated the city wouldn't be talking about the layoff of a patrol officer if it wasn't
for the retirement and transition from the previous chief. He stated in addition to being one
officer short, they have had three officers on light duty and have had to deny vacation
request and pay out overtime. He stated they are now at the end of the year with officers
who are going to lose vacation time.
Councilmember Motin noted the city has an excellent police force and he wants to keep it
that way. He stated every department in the city has had to make cuts and do more with less.
Councilmember Gumphrey stated he is opposed to cutting the patrol officer from the •
budget and feels the city should move forward with the hiring process now.
MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY
COUNCILMEMBER WESTGAARD TO AUTHORIZE THE HIRING OF A
PATROL OFFICER. MOTION CARRIED 4-1. Mayor Dietz opposed.
Engineering Technician Position
Council majority was to add the funds for this position ($41,539) to the $150,000
requested for a total contingency budget for personnel use of $191,539.
Personnel Clarsfication Changes: Assistant Buildinn Maintenance Sr~ervisor and Assirtant IT Manager
MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY
COUNCILMEMBER GUMPHREY TO RECLASSIFY THE ASSISTANT
BUILDING MANAGER SUPERVISOR TO PAY GRADE 7 AND TO
RECLASSIFY THE IT SUPPORT POSITION TO PAY GRADE 6. MOTION
CARRIED 5-0
Cost of Living Adjustment (COLA)
Council concurred to give employees a 2% COLA in January which would total
$28,000. Council also directed staff to review the budget and come up with $28,000 in
reductions to cover this expense. •
•
City Council Minutes
November 21, 2011
Building Fund E.x~enditure
Page 7
Mayor Dietz suggested using $250,000 from the Government Building Fund to help reduce
the tax rate and to pay off the public safety facility quicker in order to take the money off the
debt levy.
Mr. Simon stated it makes a lot of sense to use these funds to write-down the public safety
facility bond levy. The Council should consider committing for the remaining 10 years so the
city doesn't have to see a levy increase in a few years.
Mr. Simon stated that currently the expansion fee is allocated 85%to the Government
Building Reserve Fund and 15% to the Street Improvement Reserve Fund. He stated the
Street Improvement Reserve Fund is in good shape and Council may want to allocate 100%
of the fee to the Government Building Reserve Fund.
Mayor Dietz suggested that this come back at a future Council meeting.
Council majority was to utilize $250,000 over the next 10 years to pay down the public
safety debt.
General Fund Kererve Balance
•
Mayor Dietz further stated the General Fund Reserves are at 41.5% but city policy states it
could be maintained at a minimum of 40%. He suggested using the excess funds to lower
the tax rate by $116,000. He further stated the fund would be replenished within the month
because expenditures are under budget by 5%.
Councilmember Gumphrey stated he is not comfortable using the General Fund Reserve
balance and felt it would affect the city's bond rating.
Councilxnember Motin concurred.
Mr. Fortner stated it wouldn't hurt the city to use these funds and it's well within the range
set up in guidelines by the state auditor.
Council majority was to leave the fund balance at 41.5%.
Tax Lev~v
Councilmember Motin agrees it's not fair that commercial properties have a slight increase in
their taxes but it is the fault of the State Legislature with the Market Value Homestead Credit
program. He stated the Council needs to look at what it needs to service the city and he has
notice some cracks in service levels.
Councilmember Westgaard stated he is comfortable with a levy around 47.55% due to the
significant reduction in the levy.
Council majority suggested a levy target of approximately 47.55 %.
•
City Council Minutes
November 21, 2011
Page 8
Energy Exba
Mayor Dietz stated $30,000 should be removed from the Energy City budget and the Energy
Expo should merge with the Business Expo.
Councilxnember Zerwas concurred that the Energy Expo budget should be discussed. He
stated the $30,000 could go toward the patrol officer position. He stated the city needs to
look at the core vital roles of government. He expressed concerns with attendance at the
event. He stated he would like every line item in this budget to be justified.
Councilmember Westgaard stated this is a program similar to other city programs, such as
senior citizen and recreational programming, and questioned how the Council can quantify
and compare how people are affected by any of the programs offered by the city. He stated
the program could be reviewed to determine its value and whether it should be run
differently. He stated the Energy Expo should remain in the 2012 budget.
Councilmember Gumphrey stated a dollar amount can't be put on every program provided
by the city. He stated Pinewood loses money but it is used for kid's education to play golf.
He stated the Expo is a service provided to residents and should remain in the budget.
Councilmember Motin stated it's a service the city provides that can't be quantified. He
further suggested letting staff try to obtain grants for the program to defray costs. He stated
the city has gone through a lot of work to get the Energy City designation and that
sometimes you need a showcase program that is unique to the city. He stated he would like it
to remain in the budget as is for 2012 and to review other income potential such as charging
different fees, etc. •
Council majority was to keep the Energy Expo in the 2012 budget.
Vance Zehringer stated the Energy City Commission will have to consider creative ways to
advertise due to the limits on the advertising budget.
12.2. Public Works Financing Update
Mr. Simon stated there will be an agenda addition on December 5, 2011, for a resolution
calling for a public hearing on the Capital Improvement Plan.
13. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk River City
Council at 9:50 p.m.
:/i~
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Tina Allard, City Clerk
J n J. ietz, ay