08-31-1998 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 31, 1998
Members Present:
Members Absent:
Staff Present:
Mayor Duitsman, Councilmembers Dietz, Thompson, Farber, and
Holmgren
None
Pat Klaers, City Administrator; Sandra Peine, City Clerk; Terry
Maurer, City Engineer; Tom Zerwas, Police Chief; and Lori Johnson,
Assistant City Administrator
4.1,
Call Meetinq To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order af 6:00 p.m. by Mayor Duitsman.
Consider Agenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE AUGUST 31, 1998, CITY
COUNCIL AGENDA. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
Consider Consent Aqenda
COUNCILMEMBER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1.
CHECK REGISTER - APPROVED
8/24/98 COUNCIL MINUTES - APPROVED
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED
Railroad Drive Utility Improvements
4.1.A. Supplemental Public Hearing
4.1.B. Supplemental Assessment Hearing
City Engineer Terry Maurer stated that on July 6, 1998, the City Council directed
staff to proceed with a supplemental public and assessment hearing in order to
include the Bread of Life Book Store in the Railroad Drive Street Project. The
Railroad Drive assessment and public hearing was conducted on July 6, 1998.
Terry Maurer indicated that he has spoken with the owner of the Bread of Life
Book Store and that he had no objection to the proposed assessment to his
property for the road improvement.
Elk River City Council Minutes Page 2
August 31, 1998
Mayor Duifsman opened the public hearing. There being no one for or against
the matter Mayor Duitsman closed the public hearing.
COUNCILMEMBER FARBER MOVED TO ACKNOWLEDGE HOLDING THE
SUPPLEMENTAL PUBLIC HEARING FOR THE BREAD OF LIFE BUILDING AND TO ADOPT
RESOLUTION 98-95 ADOPTING THE SUPPLEMENTAL FINAL ASSESSMENT ROLL IN THE
MATTER OF THE RAILROAD DRIVE IMPROVEMENTS OF 1998. COUNCILMEMBER
THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.2. Park and Recreation Commission Interview
The City Council interviewed applicant Marvin Johnson, Jr. for the Park and
Recreation Commission. The Council decided to make no appointment until
September 14 in order to interview Stoffel Reitsma.
4.3. Consider Authorization to Advertise for Police Department Records Clerk
COUNCILMEMBER HOLMGREN MOVED TO ADD ANOTHER RECORDS CLERK
POSITION TO THE POLICE DEPARTMENT AND TO AUTHORIZE THE POLICE CHIEF TO
ADVERTISE FOR THIS POSITION. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
4.4.
Consider Resolution Entering into Cooperative Agreement with MnDOT for
Emergency Vehicle Preemption IEVP) System
City Engineer Terry Maurer discussed the MnDOT cooperative agreement for the
installation of an Emergency Vehicle (EVP) system and LED signal indicators.
COUNCILMEMBER THOMPSON MOVED TO ADOPT RESOLUTION 98-96 ENTERING
INTO TRAFFIC CONTROL SIGNAL AGREEMENT NO. 77895R BETWEEN THE STATE OF
MINNESOTA, DEPARTMENT OF TRANSPORTATION AND THE CITY OF ELK RIVER TO
INSTALL EMERGENCY VEHICLE PRE-EMPTION AND LED SIGNAL INDICATIONS.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.5. Call Special Council Meetinq to Canvass Election Result~
COUNCILMEMBER FARBER MOVED TO CALL A SPECIAL MEETING OF THE CITY
COUNCIL FOR SEPTEMBER 16, 1998, AT 5 P.M. TO CANVASS THE MUNICIPAL
RESULTS OF THE PRIMARY ELECTION. COUNCILMEMBER THOMPSON SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
6. Other Business
School Street Easement
The City Administrator updated the City Council on the status of the School
Street easement on the east side of Proctor Avenue. The easement is for the
nodh side of School Street and is to be obtained from the School District. On
August 26, 1998, the School District Board voted to provide the city with this
easement.
The School District has requested that School Street public improvement work on
the west side of Proctor be accomplished in 1998. The proposal is for the School
Elk River City Council Minutes Page 3
August 31, 1998
District to pay the city 50 percent of the cost for this project and, if an
assessment appeal is successful for the 1999 project on the east side of Proctor
Avenue, then their payment for the west side of Proctor Avenue will be adjusted
on a pro rata basis.
MAYOR DUITSMAN MOVED TO NOT DO THE PROJECT ON THE WEST SIDE OF
PROCTOR UNLESS THERE ARE NO REIMBURSEMENT CONDITIONS ASSOCIATED WITH
THE PREPAYMENT. COUNCILMEMBER FARBER SECONDED THE MOTION.
The City Council discussed whether or not the work on School Street on the east
side of Proctor Avenue was related to the work on the west side of Proctor or
whether they were separate, independent projects and, accordingly, should not
be tied together financially.
MAYOR DUITSMAN WITHDREW THE MOTION. COUNCILMEMBER FARBER WITHDREW
THE SECOND.
COUNCILMEMBER THOMPSON MOVED TO ACCEPT THE 50 PERCENT PREPAYMENT
FROM THE SCHOOL DISTRICT FOR THE WORK ON SCHOOL STREET WEST OF
PROCTOR AVENUE WITH THE UNDERSTANDING THAT IF AN ASSESSMENT APPEAL IS
SUCCESSFUL FOR THE PROJECT ON THE EAST SIDE OF PROCTOR AVENUE IN 1999,
THEN THIS PREPAYMENT FOR THE 1998 WORK WILL BE REIMBURSED ON A PRO RATA
BASIS. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED
5-0.
Bud.qet Worksession
The Mayor and City Council discussed the .$100,000 general tax levy for capital
improvements that is in the 1998 budget. The Council acknowledged that these
funds had to be applied toward the city's share of the Lake Orono project. This
city share is in addition to the assessments for the city property on Lake Orono. It
was the consensus of the City Council that another .$100,000 for this project
should be in the 1999 tax levy resolution.
The 1999 proposed revenues were presented and discussed as compared to the
adopted 1998 budget. The city tax levy and tax rate information was reviewed.
It was noted that there was an error in the budget memo whereby in the middle
of Page 3, the 4 percent reference should have been 7 percent, and the 6
percent reference should have been 14 percent. The Council acknowledged
that there were sufficient funds within the levy limit requirements to meet the
city's operating needs, but that it is doubtful that it will go to this levy limit based
on an anticipated small net tax capacity (NTC) increase and the impact
generating additional tax revenues will have on the city tax rate.
The Assistant City Administrator distributed the 1999 preliminary levy estimates
page and the 1999 NTC, tax rate, and levy information page for the 1999
budget. The Council discussed the compression of the tax classes and the
impact of this on the city tax rate and budget. Furthermore, it was
acknowledged that some type of city tax rate increase is to be expected in
1999.
Elk River City Council Minutes Page 4
August 31, 1998
All of the general fund revenue categories were reviewed. The increase in
growth revenues were noted as was the decrease in the transfers category and
the COPS FAST and LGA programs. Overall the projection is a $178,500 revenue
increase.
The ice arena budget for 1999 was reviewed and discussed. The Council
concurred that the deficits from previous years needed to be addressed
immediately. It was the consensus of the City Council to use the ice arena
emergency reserves, including the 1999 allocation, and to combine these funds
with any 1998 year end fund balance that may be available in order to
eliminate the 1996, 1997, and 1998 estimated deficits at the arena.
The general fund expenditures were bdefly reviewed by the City Administrator
by categories. If was noted that personal services are projected to increase by
almost $500,000 and that included in this total are the 1998 and 1999 employee
additions, the 1998 step and wage increases, the 1999 step increases, and the
1999 police union wage increases. The approach to funding new employees
out of the council contingency fund has changed and, accordingly, this
personal services figure for 1999 is substantially higher than the $348,000 amount
that was in the 1998 budget. Small increases in 1999 in the supplies and the
other services and charges categories were noted.
The Assistant City Administrator distributed the 1999 capital outlay page which
showed the general fund, equipment oedificate, and equipment reserve
proposed expenditures. It was noted that the total requests are approximately
$200,000 more than last year. One of the biggest increases was the street
department plan for a new truck versus the past approach of buying used
equipment.
If was the consensus of the City Council to move the investigator vehicle to
equipment reserves and reduce the expenditure to $13,000 and to move the
sergeant's vehicle to equipment reserves and to only purchase a sedan. The
Council directed staff fo evaluate the need for the skid loader and to consider
whether or not this expenditure is necessary. It was the consensus of the Council
that with the above noted changes, the equipment certificate level was
acceptable, however it would be better if the skid loader was not in this total.
A number of proposed personnel additions for 1999 were discussed including the
part time recreation programmer, the part time senior citizen assistant, and the
economic development assistant...The City Council discussed its contingency
fund and what type of commitments were planned from this fund...The City
Council discussed the Youthbound project and its funding commitment for
personal services of almost $40,000 for 1999. It was noted that the hours may
need to be adjusted based on attendance once a pattern gets established
during the school year...The police department Y2K financial concerns were
reviewed. The Council expressed its goal to finance this need out of 1998 year
end fund balance.
The City Administrator presented information regarding two wage adjustments.
It was recommended that Planner Steve Wensman receive an increase to
$14.00 per hour retroactive to June 16. It was also recommended that the
Elk River City Council Minutes Page 5
August 31, 1998
Cable TV employee receive a wage increase fo $10.00 per hour with a minimum
of $25.00 per meeting.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE A $1.50 PER HOUR WAGE
INCREASE FOR STEVE WENSMAN RETROACTIVE TO JUNE 16. COUNCILMEMBER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER DIETZ MOVED TO INCREASE THE CABLE TV EMPLOYEE'S WAGES
TO $10.00 PER HOUR WITH A MINIMUM OF $25.00 PER MEETING. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
7. Staff Updates
The City Administrator discussed with the City Council the apartment SAC/WAC
rate and how this compares to the jail. The Council directed staff to make a
recommendation on this issue.
8. Adjournment
There being no further business, MAYOR DUITSMAN ADJOURNED THE COUNCIL
MEETING AT APPROXIMATELY 9:30 P.M.
Respectfully submitted,
Sandra Peine
City Clerk
Pat Klaers
City Administrator