09-08-2014 CCM hof lk � Special Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, September 8, 2014
Members Present: Mayor Dietz, Councilmembers Wilson, Burandt,Westgaard, and
Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner, Community Operations and
Development Deputy Director Jeremy Barnhart, Finance Director
Tim Simon,Liquor Store Manager Dave Potvin,Assistant Liquor
Store Manager Steve Tillman, Chief Wastewater Treatment Operator
Matt Stevens, Environmental Coordinator Kristin Mroz, Fire Chief
John Cunningham,Police Chief Brad Rolfe,Parks and Recreation
Director Michael Hecker, Street Superintendent MarkThompson, and
City Clerk Tina Allard
I. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:13 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider Consent Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the following consent agenda:
3.1 Changes to the City of Elk River Personnel Policy Manual as outlined
in the staff report.
3.2 Amendment of Lease between City of Elk River and the Elk River
Area Chamber of Commerce.
3.3 Purchase and equipping of 2015 Ford Explorer PUV not to exceed
$35,000.
Motion carried 5-0.
4.1 2015 Budget discussion
Mr. Simon presented the staff report.
Various departments presented their goals and budget requests for 2015.
City Council Minutes page 2
September 8,2014
----------------------------
Liquor Store
Mr. Potvin discussed changes in the liquor industry and noted the city may need to
consider lowering its sales margins.
Councilmember Motin asked Mr. Potvin if he had ideas on the types of businesses
that would be complimentary located adjacent to Westbound Liquor. (EDA recently
purchased two nearby lots)
Mr. Potvin suggested a grocery store but commented the land may not be suited
size-wise.
Mr. Tillman further suggested a convenience store due to its high traffic.
Storm Water
Mayor Dietz stated he doesn't know how the city is going to sell an increase in
property taxes to the public if the storm water budget is left in the General Fund. He
stated staff must handle a tough job publicizing this mandated program and its
corresponding costs. Mayor Dietz suggested an article in the newspaper that
compares the two cost options to taxpayers.
Councilmember Westgaard stated keeping the costs in the General Fund doesn't
seem equitable. He noted some entities, such as churches and schools (larger users),
wouldn't be responsible to pay a fee.
Mr. Portner noted staff is working on an educational campaign utilizing various
communications tools. He stated the city needs to pay for the program and the only
question is which option to use. He stated it could be paid through property taxes,
which acts on the philosophy of, he who has more,pays more;or should it be based
on a user fee. He stated he believes the property tax option is an obsolete process
because people don't hold their wealth in their property like in days past; and actually
tend to hold more debt in their property. He further stated the user fee would be the
more equitable option so everyone pays their fair share.
Councilmember Wilson stated he likes to see staff getting public input as it further
develops good community relationships. He stated he would not like to see a
property tax increase for this program.
Councilmember Burandt confirmed that community participation is needed but she
does prefer the fee option as it seems more equitable.
Councilmember Morin questioned why this decision is coming before the Council
now rather than four or so months ago. He stated this issue has been before Council
for the last three years.
Mr. Portner stated Council requested to wait.until the city got its permit from the
Minnesota Pollution Control Agency. He noted the permit was received this year. He
stated the Council decided to contract out the work that needed to be completed this
p 0 V E R I I B Y
NATUREI
City Council Minutes Page 3
September 8,2014
year rather than start the hiring process and building an internal program. He stated
he is not sure how staff could have done it differently because they weren't given
direction on how to proceed.
Councilmember Motin questioned if the requested budgeted amount could be
reduced in half in order to lower the property tax rate.
Mr. Partner stated the city needs to budget for the fall amount requested. He further
stated the worst thing the city could do is to set the fee for a lesser amount only to
have to bump it up in another year.
Mayor Dietz agreed that the fee should be set so it won't change for a long time.
Councilmember Westgaard stated he believes the requested budget is reasonable and
noted that most of the increase is due to the police department budget. He
questioned Mr. Portner as to how strongly he felt about keeping/needing the
Human Resources position in the budget.
Mr. Portner stated he feels the position is needed and the human resources
coordinator can never get caught up due to the workload some of which includes:
• Mandatory reporting requirements/deadlines
• Ongoing hiring/seasonal hiring periods
• Annual event planning/open enrollment, contract negotiation etc.
• Volunteer program
Affordable Care Act
• Policy management
He stated these programs are very difficult for one person to manage.
Mayor Dietz stated he isn't sure he can support the human resources position. He
stated the increase in the levy,without a change to the storm water levy line item is at
2.56%, and he would like to see the amount reduced to below 2%.
Mr. Simon noted with storm water removed from the levy,the levy increase would
actually be at 2.05%
Councilmember Westgaard stated the city still has a GRE fund and questioned if it is
worth pursuing use of these funds to offset some of the costs for quiet zones.
Mr. Simon noted this fund will be discussed as part of the Capital Improvement
Program at an upcoming meeting.
It was noted the costs will still have to be paid back to the fund.
Mr. Portner questioned Council direction regarding the storm water funding.
p 0 1 E H E e 6 T
VR
City Council Mutes Page 4
September 8,2014
-----------------------------
Council consensus was to take the amount out of the General Fund budget at this
time but for staff to still engage with the community to find out the option they are
interested in pursuing for 2016.
Mr. Simon stated a funding source will have to be determined to pay for 2015
expenses.
S. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 7:25 p.m.
4 Jol} J. D etz,Mai;PL
Tina Allard, City Clerk
p0ItIRII BY
ONATVR