05-22-2000 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 22, 2000
Members Present:
Members Absent:
Staff Present:
Councilmembers Dietz, Motin, Thompson and Farber (6:15
p.m.)
Mayor Klinzing
Pat Klaers, City Administrator; Lori Johnson, Finance
Director; Tina Allard, Recording Secretary
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:05 p.m. by Vice Mayor Motin.
Consider A.qenda
The following item was added to the Council agenda:
4. la. Consider Ali-Night Dance at the Elk River Ice Arena
COUNCILMEMBER THOMPSON MOVED TO APPROVE THE AGENDA.
COUNClLMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0.
Consider Consent Agenda
Vice Mayor Motin requested a correction with his comments concerning Item
6.14 of the May 15, 2000 City Council Minutes. Vice Mayor Motin stated that he
was concerned the distance of the development from the Urban Service Area
would cause problems for fire, street, and police and that starting development
that far into the Northeast corner of the city would encourage a leap frog effect
with future development.
VICE MAYOR MOTIN MOVED TO CHANGE THE MAY 15, 2000 CITY COUNCIL MINUTES
TO REFLECT HIS ADDITIONAL COMMENTS. COUNCILMEMBER THOMPSON SECONDED
THE MOTION. THE MOTION CARRIED 3-0.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1.
3.2.
3.3.
3.4.
3.5.
3.6.
CHECK REGISTER - APPROVED
5/15/2000 CITY COUNCIL MINUTES - APPROVED AS AMENDED
APPLICATION TO CONDUCT EXCLUDED BINGO - ELK RIVER-ROGERS VFW
LADIES AUXILIARY - APPROVED
EXEMPT CHARITABLE GAMBLING PERMIT BY CHAMBER OF COMMERCE AND
AUTHORIZATION TO WAIVE 30 DAY WAITING PERIOD - APPROVED
RESOLUTION 00-38 APPROVING PREMISE PERMIT RENEWAL FOR ELKS
QUARTERBACK CLUB AT TIMEOUT SPORTS BAR - APPROVED
CONSIDER TRANSIENT MERCHANT LICENSE FOR JOHN C. WRIGHT - NO
ACTION TAKEN
City Council Minutes
May 22, 2000
3.7.
3.8.
3.10.
3.11.
Page 2
PAY ESTIMATES:
a. #2 - EAST ELK RIVER STREET & STORM SEWER IMPROVEMENTS TO
LATOUR CONSTRUCTION IN TI-IE AMOUNT OF $338,546.11 -
APPROVED
b. # 12 - EAST ELK RIVER WATER & SEWER IMPROVEMENTS - TO S.R.
WEIDEMA IN THE AMOUNT OF $173,484.94 - APPROVED
APPOINTMENT OF AUSTIN WHITFORD AS LEAD OPERATOR FOR WWTS
EFFECTIVE MAY 6, 2000 AT PAY GRADE 10, STEP E -- APPROVED
RENEWAL OF CITY'S INSURANCE WITH THE LEAGUE OF MINNESOTA CITIES
INSURANCE TRUST FOR THE COVERAGE PERIOD OF APRIL 1,2000 TO APRIL 1,
2001 FOR PROPERTY, LIABILITY, OPEN MEETING LAW, PETRO FUND, BOND,
AND MISCELLANEOUS OTHER INSURANCE COVERAGE - APPROVED
REQUEST TO HIRE FINANCE DEPARTMENT INTERN WITH FUNDS TO COME
FROM COUNCIL CONTINGENCY - APPROVED
REQUESTS BY CITY ADMINISTRATOR AND FINANCE DIRECTOR TO ATTEND
NATIONAL CONFERENCES - APPROVED
COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 3-0.
4.1a. Consider Hosting an AII-Ni.qht Dance at the Elk River Ice Arena
Larry Farber arrived at 6:15 p.m.
Rich Czech stated that a promoter would like to host an all-night dance at the Elk
River Ice Arena. Rich commented that the Ice Arena would need to monitor the
noise levels to make sure the residents in the area would not be affected. Rich
noted that no drugs or alcohol would be allowed at the event and he would
have security on hand.
COUNClLMEMBER THOMPSON MOVED TO ALLOW THE ICE ARENA TO HOST ALL-
NIGHT EVENTS. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
4.1b.
Consider Proclamation Dedicatin.q June 2, 2000, as Elk River Police Reserve Unit
Day
George Zabee, Captain Advisor for the Elk River Police Reserves gave a brief
history of the Elk River Police Reserve Unit. George discussed how the reserve unit
supports the Elk River Police Department and thanked the Council for their
support to the Reserves.
Tom Zerwas appointed four new reserves and distributed their badges,
COUNCILMEMBER THOMPSON MOVED TO PROCLAIM JUNE 2, 2000 AS ELK RIVER
POLICE RESERVE UNIT DAY. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
4.2.
Public Hearin,q: Consider Proposal for Use of Tax Rebate Financin,q (Tax
Abatement) in the Construction of an Industrial Buildin,q on Lot 3, Block 1,
McChesney Industrial Park
Acting Director of Economic Development Marc Nevinski stated that the EDA
recommended R&W Enterprises receive Tax Rebate Financing for the
construction of a multi-tenant industrial building in the McChesney Industrial Park,
City Council Minutes Page 3
May 22, 2000
Vice Mayor Motin opened the public hearing. There being no one for or against
the matter, Vice Mayor Motin closed the public hearing.
Councilmember Dietz questioned whether abating taxes in the amount of $6,159
per year is that significant to keep R&W Enterprises from building this project.
Councilmember Dietz stated that he was concerned that the county may not go
along with abating their portion of the taxes and the city shouldn't abate the
taxes unless the county does also.
Councilmember Thompson stated that he supports the project because it is a
challenging site to develop and there is a lack of this type of facility in the city.
COUNCILMEMBER THOMPSON MOVED TO APPROVE TAX REBATE FINANCING FOR
R&W ENTERPRISES. COUNClLMEMBER FARBER SECONDED THE MOTION. TIlE MOTION
CARRIED 3-1. Councilmember Dietz opposed.
4.3.
Liquor Compliance Hearin.q:
Tom Zerwas, Elk River Police Chief informed the Council that on April 19, 2000, the
Elk River Police Department conducted liquor compliance checks at all of the
liquor establishments in Elk River. Tom noted that pi77a Hut, Applebees, and Ron's
Foods failed the compliance check.
Piz7a Hut
Cecelia Robbins, manager of Pizza Hut apologized to the Council for the actions
of the Pizza Hut employee. Cecelia informed the Council that the employee has
since been terminated.
COUNCILMEMBER DIETZ MOVED TO IMPOSE A $500 CIVIL PENALTY FOR THE FIRST
VIOLATION BY PIZZA HUT IN A 24 MONTH PERIOD. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Applebees
Bruce Hanson, a lawyer representing Applebees was apologetic to the Council
and stated that Applebees has a zero-tolerance policy towards serving minors.
Bruce stated that the employee has since been terminated and Applebees cards
everyone who looks under 40, uses training videos, and holds store-wide
meetings. Bruce noted that Applebees is looking at a machine that would swipe
driver's licenses.
COUNClLMEMBER FARBER MOVED TO IMPOSE A $500 CIVIL PENALTY FOR THE FIRST
VIOLATION BY PIZZA HUT IN A 24 MONTH PERIOD. COUNCILMEMBER THOMPSON
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Ron's Foods
Tom Zerwas, Elk River Police Chief commented that Ron Dargis of Ron's Foods,
would like to have his licensed revoked in lieu of paying the $500 penalty.
Ron Dargis stated that he has removed all beer from his store shelf and he would
like his license revoked.
VICE MAYOR MOTIN MOVED TO ACCEPT RON'S FOODS LIQUOR LICENSE IN LIEU OF
PAYING THE $500 CIVIL PENALTY AND THAT RON'S FOODS BE PROHIBITED FROM
City Council Minutes Page 4
May 22, 2000
BEING ABLE TO APPLY FOR A LIQUOR LICENSE FOR A PERIOD OF ONE YEAR.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0.
4,4,
Consider Salaries of Mayor & Councilmembers
Pat Klaers, City Administrator informed the Council of survey results for current
salaries of Mayor and Councilmembers in comparable cities.
Councilmember Dietz stated he believed the Elk River Mayor and Council salaries
to be right in line with the other communities.
Councilmember Farber indicated that all employees got a three percent
increase and Councilmembers should get an increase.
Councilmember Matin noted that the cost of living increase is three percent a
year, but Council has not had an increase in five years.
The Council needed more time to review this survey and decided to discuss the
matter at the budget worksession.
Open Mike
No one appeared for open mike.
Presentation of the Comprehensive Annual Financial Report for the Year Ended
December 31, 1999
Lori Johnson, Finance Director, and Steve McDonald, Abdo, Abdo, Eick, and
Meyers, presented the 1999 Comprehensive Annual Financial Report. Mr.
McDonald stated that the fund balance in the General Fund increased by 1.8%.
Discussion was held regarding recommendations for a standardized policy in
regards to the fund balance.
Mr. McDonald noted that because of the limited size of office staff, the city has
limited segregation of duties. Mr. McDonald commented that this is not
uncommon and is not a concern but is something of which the Council should be
aware. Mr. McDonald stated that Community Recreation does not provide any
support for their reimbursement requests. Lori Johnson stated the information is
requested but is not available from Community Recreation. Lori noted that the
school district currently serves as Community Recreation's fiscal agent and there
was discussion about whether the city could serve as fiscal agent. The council
requested Paul Matin to discuss this issue at the upcoming Community Recreation
meeting.
A brief discussion took olace regarding bond and financial consultant proposals.
Other Business
There was no other business.
Staff Updates
8.1. Legislative Session
Pat Klaers, City Administrator gave a brief update and stated that more
detailed information on legislative issues would be available at a later
date.
City Council Minutes
May 22, 2000
Page .5
8.2,
Wednesday, May 24 MnDot/City Council Tour
Pat Klaers, City Administrator informed the Council of the schedule for the
MnDot tour,
9. Adiournment
There being no further business, Vice Mayor Motin adjourned the meeting of the
Tina Allard
Recording Secretary