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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