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11-24-2003 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE HIGH SCHOOL LITTLE THEATRE MONDAY, NOVEMBER 24, 2003 Members Present: Members Absent: Mayor KJinzing, Councilmembers Dietz, Kuester, Motin, and Tveite None Staff Present: City Administrator Pat I~aers; Finance Director Lori Johnson; City Engineer Terry Maurer; Fire Chief Bruce West; Wastewater Chief Operator Gary Leirmoe; Liquor Store Manager David Potvin; and Recording Secretary Jessica Miller 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 I~inzing. 2. Consider 11/24/2003 Agenda MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY COUNCILMEMBER TVEITE TO APPROVE THE COUNCIL AGENDA AS AMENDED: Item 5.5. Consider Application for Exempt Permit for Gambling was added. MOTION CARRIED 5-0. Consider Consent Agenda MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILEMBER TVEITE TO APPROVE THE FOLLOWING CONSENT AGENDA: 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 11/17/03 COUNCIL MINUTES WITH CHANGES CHECK REGISTER PAY ESTIMATES PUBLIC SAFETY FACILITY AND CITY HALL CHANGE ORDERS RESOLUTION 03-79 ADOPTING AND LEVYING ASSESSMENTS FOR UNPAID GARBAGE COLLECTION SERVICE AS OF SEPTEMBER 1, 2003 AUTHORIZATION TO ADVERTISE FOR PUBLIC WORKS MAINTENANCE I EMPLOYEE AND BUILDING MAINTENANCE ASSISTANT FOR 2004 RESOLUTION 03-80 AUTHORIZING THE PLACEMENT OF FIRE LANES IN THE TROUT BROOK FARMS SUBDIVISION MOTION CARRIED 5-0. City Council Minutes November 24, 2003 ............................. 4. Open Mike Page 2 No one appeared for Open Mike. 5.2. Consider Non-Union Health and Dental Insurance Contracts Finance Director Lori Johnson provided the Council with information regarding the city's non-union health and dental insurance contract renewals. Ms. Johnson stated that staff was not pleased with the renewal rates that HealthPartners offered and so a decision was made to request rates from Medica. Ms. Johnson stated that the rates that Medica submitted were almost the same as last year's rates. The 2004 Medica plan options will include a S15 co-pay plan and a $500 deductible plan. Ms. Johnson stated that staff is recommending that the dental insurance contract be renewed with HealthPartners as their rates did not increase for 2004. Councilmember Dietz questioned if employees must switch doctors when the city switches insurance companies. Ms. Johnson stated that this is one of her main concerns and that when she looks at switching insurance companies she looks to make sure that the clinics in the area are covered. Ms. Johnson noted she expects that almost all of the employees will be able to remain at their current clinics. Councilmember Dietz also questioned if HealthPartners premium increase was due to high claims by the city last year. Ms. Johnson stated that was not the case. She stated that the city's claims were less than the premiums paid last year and that part of the increase was due to HealthPartners estimating the healthcare trend higher than Medica for 2004. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TVEITE TO AWARD THE NON-UNION HEALTH INSURANCE CONTRACT FOR 2004 TO MEDICA AND TO RENEW THE 2004 NON-UNION DENTAL INSURANCE CONTRACT WITH HEALTHPARTNERS. THE MOTION CARRIED 5-0. 5.3. Finance Director Lori Johnson stated that staff has received requests from employees for the city to offer voluntary short-term disability insurance. Ms. Johnson stated that the city would like to offer short-term disability as part of the city's cafeteria plan. She noted that the plan would be entirely voluntary and there would be no cost to the city. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER KUESTER TO OFFER SHORT-TERM DISABILITY AS PART OF THE EMPLOYEE'S CAFETERIA PLAN. THE MOTION CARRIED 5-0. Consider Enterprise Fund Budgets City Administrator Pat Klaers provided the Council with background information and details on the three enterprise funds managed by the city per his staff report dated November 24, 2003. City Council Minutes Page 3 November 24, 2003 ............................. Garbage Collection/Recycling Program Mr. Klaers stated that the major change in the garbage collection/recycling budget for 2004 is the customer rate increase that was approved in October 2003. Mr. Klaers stated that in the past few years the city has subsidized customer rates in order to bring down the fund balance because the fund balance got too high due to a refund from the state and a county grant. Mr. Klaers noted that it is appropriate for the garbage enterprise to operate on a break-even basis and the customer rate increase should accomplish this. Mr. Klaers stated that the major activity in this program for 2004 will be the garbage hauler contract renewal. He stated that it is possible that the city will go out for competitive bids as staff is not entirely pleased with the customer service performance of one of the haulers. Mr. Klaers noted that the length of the new contract and the hauler fees are the two key issues with a new contract. Mr. Klaers indicated that the 2004 garbage collection budget is up 13.8% from the 2002 actual expenditures which is an approximate 6.6% increase per year for two years. Mr. Klaers stated that this is reasonable based on the residential growth the city has recently experienced. Mr. Klaers also stated that the city contracts with Elk River Municipal Utilities for the garbage billing. Councilmember Dietz questioned how the fee that the city pays for this service is determined. Finance Director Lori Johnson stated that the city pays a portion of a phone line, a portion of a staff person's time, and postage for any bill that the Utilities sends out for which they have not provided services. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE THE GARBAGE COLLECTION/RECYCLING PROGRAM ENTERPRISE FUND BUDGET FOR 2004. THE MOTION CARRIED 5-0. Municipal Liquor Store Enterprise Fund Mr. Klaers stated that the liquor store is a very important financial resource for the city. He stated that for the past ten years the city has transferred about $38,000 per year out of the liquor store fund to help finance the 1993 city hall project. He noted that in 2004 the city will transfer an additional $195,000 from the liquor store fund to help finance general municipal services. Mr. Klaers stated that in addition to the city hall debt payment and the contribution to the general fund, funds have recently been used from the municipal liquor store for two special projects. One project was helping with the costs associated with the gun range in the new public safety facility and the other was helping to fund the new ice rink floor in the Barn which is expected to be about a $220,000 contribution from the liquor store. Mr. Klaers noted that the liquor store makes about $350,000 annually so about one year's annual profit is being spent on these two projects. Mr. Klaers also noted that there is $8,000 in the 2004 budget to fund a feasibility study for a second liquor store. The last study was done in 2002 and the numbers were not as favorable as staff had anticipated. Options for the City Council include doing another study, foregoing a study and doing the project, or wait and consider another study or project in 2005 or 2006. It was noted that about 3% of the budget expenditures go for credit card processing charges. Councilmember Tveite questioned what percentage of sales are card sales. Liquor Store Manager Dave Potvin stated that on average about 1/3 of all sales are on some form City Council Minutes Page 4 November 24, 2003 ............................. of card. Mr. Potvin noted that the city has switched card handler companies a few times to get a better deal. He noted that the cost of accepting credit cards is high but that it is worth it because it minimizes the risk of bad checks. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE THE MUNICIPAL LIQUOR STORE ENTERPRISE FUND BUDGET FOR 2004. THE MOTION CARRIED 5-0. Wastewater Treatment System (WWTS) City Administrator Pat ICAaers stated that the 2004 WWTS operating expenditures are expected to decrease as compared to 2003. He stated that this is because of the large amount of capital outlay that was in the 2003 budget as compared to the 2004 budget. Mr. ICAaers indicated that one of the highlights for the WWTS is the proposal to add another full time employee. Growth in the system and additional responsibilities as it relates to lab work and the lift stations is generating the need for this employee. This additional employee will allow for one employee to take the lead responsibility in the lift station program. Mr. ICAaers noted that two other financial items included in the WWTS budget include a sewer availability charge (SAC) increase and the rate increase. The rate increase calls for a 3% increase in the rates for 2004 and 2005. Mr. Klaers stated that the city has done this type of rate increase for the past few years and it is necessary in order to keep up with inflation. Staff is proposing that the SAC fee be increased to ~g2,000 for 2004 per residential unit. It was noted that Elk River's SAC fee is low in comparison to neighboring communities. Mr. Klaers stated that there are two major capital improvements that are planned in 2004 that are not in the operating budget, one is the digester cover and the other is the head works. City Engineer Terry Maurer stated that the digester cover has been repaired many times and both he and Wastewater Treatment Chief Operator Gary Leirmoe believe that it needs to be replaced soon. This is an approximately ~gS00,000 expenditure and money for the project is in the WWTS fund balance. Mr. Maurer explained that the head works is the point in the plant where the sewage is pumped in. He stated that the head works is from 1976 and was not upgraded during the WWTS improvements in the 1990s. Mr. Maurer stated that three lift stations are currently pumping into the head works and the system could be overwhelmed. Mr. Maurer stated that the best way to begin this work would be to complete a preliminary study on the project. Councilmember Dietz questioned if the projects would be completed in 2004. Mr. Maurer stated that the digester cover would be completed in early 2004 and the head works would be started later in 2004 and the project could carry over to 2005. Councilmember Kuester questioned if the city will need to acquire some land in order to complete the head works project. Mr. Maurer stated nog but that the city had conversations with Great River Energy, then UPA, in 1995 about expanding the WWTS plant and at that time they were open to discussing land acquisition with the city. Mr. Klaers noted that the city offered to buy some land at that time and UPA declined asking the city to come back when the land is actually needed for a project. City Council Minutes Page 5 November 24, 2003 ............................. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE RESOLUTION 03-81 FOR THE CITY OF ELK RIVER SETTING THE SANITARY SEWER USER FEES FOR 2004 AND 2005. MOTION CARRIED $-0. MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE A SEWER AVAILABILITY CHARGE (SAC) RATE OF $2,000 PER UNIT EFFECTIVE JANUARY 1, 2004. MOTION CARRIED $-0. MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY COUNCILMEMBER DIETZ TO AUTHORIZE THE ADVERTISEMENT FOR AN ADDITIONAL WASTEWATER TREATMENT SYSTEM EMPLOYEE. MOTION CARRIED $-0. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER TVEITE TO AUTHORIZE A $100,000 EXPENDITURE; $$0,000 TO BE USED TO THE FINAL DESIGN OF THE DIGESTER COVER AND $$0,000 TO BE USED FOR THE PRELIMINARY DESIGN OF THE HEAD WORKS WITH BOTH PROJECTS COMING BACK BEFORE THE CITY COUNCIL IN EARLY 2004. MOTION CARRIED $-0. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER KUESTER TO APPROVE THE 2004 WASTEWATER TREATMENT SYSTEM ENTERPRISE FUND BUDGET. MOTION CARRIED $-0. 5.1. Accept Grant from CenterPoint Energy, Minnegasco to the Fire Department Arne Hendrickson from CenterPoint Energy Minnegasco was in attendance to present Chief West and the Elk River Fire Department with a ~g2,500 grant for the purchase of Amkus rescue tools. CenterPoint Energy's Community Partnership Grant Program awards communities up to ~g2,500 for the purchase of public safety equipment or for beautification projects. Mr. Hendrickson stated that cities are welcome to apply every year and money is given on a first come, first serve basis. Mayor Klinzing expressed the city's appreciation for the grant. Chief West thanked Arne and CenterPoint Energy Minnegasco on behalf of the Elk River Fire Department for the generous ~g2,500 grant. Chief West stated that the Amkus rescue tools, which are commonly referred to as the "jaws of life", cost approximately ~g6,000. He stated that in addition to the ~g2,500 grant from CenterPoint Energy, that an anonymous donor has donated the remaining ~g3,500 towards the equipment. 5.4. Fire Department Update Community Emergency Response Team (CERT) Fire Chief Bruce West stated that staff has been working on the CERT program for approximately five months. He stated that 14 citizens have been accepted. The first CERT orientation will be held on Tuesday, December 2 in which the new team members will be given an overview of the CERT program, how the CERT team will help the responders in a City Council Minutes Page 6 November 24, 2003 ............................. disaster, and the asset that the CERT team will be to the responders. Training will take place eight Tuesday nights beginning in January with a mock disaster being held the last night. Mr. West noted that a full-scale EOC exercise will be held on April 30, 2004 in which the CERT members will also be involved. Fireworks Changes Chief West stated that there has been a major change in the fireworks law at the state level. He stated that the city was charging $750 for a fireworks permit which covered the costs for the administrative time and the inspection time for the fire department to review and process the permit application and complete the necessary inspections. Mr. West stated that with the changes in the state, the maximum that the city can now charge is $1ee. Councilmember Dietz questioned if the $100 application fee will cover the city's costs to process the application. Mr. West stated that the $1ee will not cover the cost for the site review and the inspections but noted that the city has received great cooperation from the businesses selling fireworks and that they have had no problems. Fire Department Station #2 Chief West stated that there is currently a pumper, tanker, and grass rig kept at station 2 along with the Safe Escape House and pick up. Mr. West also stated that 12 of the 35 firefighters are currently assigned to station 2 and that extra equipment is on hand so any firefighter may respond out of station 2 if they are closer. Mr. West noted that the fire department will be looking at hiring an additional five firefighters to get back up to the 40 the Council has authorized. Chief West indicated that both fire stations will be up and running in response to an emergency until each is staffed and equipped to run on its own. Councilmember Dietz questioned if in the future each station would be assigned to respond to a specified area of the city. Mr. West stated that he could not say when but that this would be the case in the future. City Administrator Pat Klaers questioned if the fire department's overall operating expenses would go up because of more firefighters responding to calls due to having two stations. Chief West stated no; but that the average response for a call is 16-17 firefighters but that this number may increase a little just due to the additional firefighters being hired. Councilmember Dietz questioned if there has been an advantage to Chief West being located near the Police Department. Chief West stated that it has been very helpful for him to be near the Police Department, the EOC, and also helped him administratively to be near City Hall. Emergency Operations Center ,(EOC) Chief West stated that all of the workstations are installed in the EOC and he has began to stock them with supplies. Mr. West stated that the department head staff meeting will be held December 9 in the EOC at which time the department heads will be given an overview of their duties in the EOC. City Council Minutes November 24, 2003 ............................. Page 7 5.5. Consider Application for Exempt Permit for Gambling City Administrator Pat ICAaers stated that the city received an application from St. John the Baptist Church to hold a benefit at the Elk River American Legion on January 17, 2004 at which raffles will be conducted. The exempt application must be sent on to the state which requires up to 45 days for processing. Mr. ICAaers noted that city code does not address exempt permits and according to the State of Minnesota Lawful Gambling Division, whether or not the city requires Council approval for an exempt permit is dependent upon how the city wishes to handle them. Mr. Klaers stated that City Clerk Joan Schmidt would like to discuss this issue with the Council in the near future. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE AN EXEMPT PERMIT FOR THE CHURCH OF ST. JOHN THE BAPTIST CHURCH TO CONDUCT RAFFLES AT THE BENEFIT BEING HELD AT THE ELK RIVER AMERICAN LEGION POST 112 ON JANUARY 17, 2004. THE MOTION CARRIED 5-0. 6. Other Business There was no Other Business. 7. Staff Updates There were no Staff Updates. 8 Adjournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 7:43 p.m. Jessica Miller Recording Secretary