05-22-1995 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HAll
MONDAY, MAY 22, 1995
Members Present:
Mayor Duitsman, Councilmembers Farber, Scheel, Holmgren and
Dietz
Members Absent:
None
Staff Present:
Pat Klaers, City Administrator; Lori Johnson, Assistant City
Administrator; Sandra Thackeray, City Clerk; Terry Maurer, City
Engineer
1. Call Meetinq To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:00 p.m. by Mayor Duitsman.
2. Consider Council Aqenda
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE MAY 22, 1995, CITY
COUNCIL AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
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3.
Consider City Council Minutes
COUNCILMEMBER FARBER MOVED TO APPROVE THE MAY 10, 1995, BOARD OF
REVIEW MINUTES AND MAY 15, 1995 CITY COUNCIL MINUTES. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.1 1994 City Audit Presentation
Assistant City Administrator Lori Johnson informed the Council that the general
fund balance as of December 31, 1994, is $982,698.00 which was an increase of
$39,333.00. She stated that the fund balance represents 26.33% of the 1995
general fund budget. Lori Johnson explained that because the City continues to
grow at a rapid pace the general fund budget has had to increase in order to
provide the level of services and programs expected by the City's residents. The
Assistant City Administrator stated that the City should strive to increase the fund
balance in order to keep pace with increases in the budget.
Lori Johnson stated that the City issued $8.753,500.00 of new debt in 1994. She
stated that over 57% of the new debt issued is secured by special assessment
revenues. She informed the Council that the City's outstanding debt as of
December 31, 1994, is $21.999,050.00 which is anincrease of $7.429,950.00 over
the total outstanding on December 31, 1993. She further indicated that special
assessment debt accounts for over half of the debt outstanding.
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Gary Groen of Abdo, Abdo and Eick gave an overview of the City's financiol
operations.
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May 22, 1995
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Assistant City Administrator Lori Johnson indicated that the 1979 improvement
bond has a cash deficit and that tax levies would be required to pay the
remaining principal of $60,000 plus interest. Lori Johnson suggested that the
Council apply the excess funds from the 1980 improvement bond to the 1979
bond. Due to delinquent assessments. taxes were levied to pay principal and
interest on the 1980 bonds. The bonds are now fully paid so the delinquent
assessment revenue now being collected could be used to eliminate levies for
the 1979 bond.
COUNCILMEMBER DIETZ MOVED TO TRANSFER THE CASH FROM THE 1980
IMPROVEMENT BOND TO THE 1979 IMPROVEMENT BOND SO THAT THE DEFICIT
WOULD BE ELIMINATED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
Mayor Duitsman indicated his appreciation to the Assistant City Administrator and
the finance support staff for their work in the audit presentation.
COUNCILMEMBER DIETZ MOVED TO ACCEPT THE 1994 AUDIT. COUNCILMEMBER
SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.2
1994 Finance Annual Reoort
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Assistant City Administrator Lori Johnson presented the 1994 Rnance Annual
Report. Lori Johnson reviewed the job duties of the employees in the finance
department. She also reviewed some insurance risk management issues.
COUNCILMEMBER HOLMGREN MOVED TO ACCEPT THE 1994 FINANCE ANNUAL
REPORT. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-
O.
5. Ooen Mike
No one appeared for this item.
6.1 Ice Arena Uodate
City Administrator Pat Klaers indicated that the cost to construct the proposed
Ice Arena is 2.8 to 2.9 million dollars. He stated that the annual revenues and the
youth hockey contributions can only support about 2.1 million dollars leaving the
project short about $700,000.00. Jeff Gongoll indicated that the Ice Arena
Committee is aware of the financial obstacles and believes that these obstacles
can be overcome. Jeff Gongoll indicated that the Ice Arena Committee will be
meeting with the Youth Hockey Association to discuss some formal fund raising
projects. Chuck Freiberg from RSP, Inc., and Construction Manager Gill
Fleischhacker from M.A. Mortenson, were in attendance to discuss the ice arena
project. Gill Fleischhacker informed the Council that due to the budget
restrictions, bids on the ice arena project have not been requested, however, this
does not mean that the project is dead.
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May 22, 1995
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City Administrator Pat Klaers stated that the Ice Arena Committee will be coming
back to the Council with other options for funding. He indicated that the City
may have to make some type of capital financial contribution to the project and
indicated that the City has made similar contributions for other sports such as
softball and soccer. He further indicated that there may be funds eligible
through new legislation for this and other ice arena projects.
6.2
1994 liauor Store Annual Reoort
This item was continued to the June 5, 1995. City Council Meeting.
6.3 Reconsider Reauest For Street Liaht At Proctor Road And Ridaewood Drive
Mayor Duitsman requested the Council consider rescinding the motion made at
the December 19,1994. City Council meeting which authorized the placement of
a street light at Proctor Road and Ridgewood Drive. Mayor Duitsman indicated
that after speaking to the Ridgewood residents he has been informed that they
are not in favor of the street light.
Councilmember Farber indicated that to rescind the motion and not erect the
street light would be setting a bad precedent. Councilmember Farber indicated
that this location was recommended by the Police Chief due to safety concerns.
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Councilmember Holmgren indicated that the need for a street light at this
location surfaced several years ago with a request before the City Council. He
further indicated that he has never heard anyone express opposition to the street
light. Councilmember Holmgren stated that he would like to hear from the
residents regarding this issue.
Councilmember Dietz stated that the corner of Ridgewood Drive and Proctor
Avenue is a dark corner and feels the street light is warranted. He further
indicated that he would like to hear from the residents regarding this issue.
It was the consensus of the Council to take no action on this issue until the
Council hears from the area residents.
6.4 Reconsider Trainina Prooosal From Trainino Networks. Inc.
The City Administrator indicated that Training Networks. Inc. has revised its
proposal for implementation for troining of City staff to approximately $12,500.00.
The City Administrator stated that he felt the training would have a positive
impact on City staff and recommended that the City Council invest the
$12.500.00 for the training as outlined in his memo.
Councilmember Holmgren indicated his support. Council member Farber also
indicated his support.
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May 22, 1995
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COUNCILMEMBER FARBER MOVED TO APPROVE THE TRAINING PROPOSAL
SUBMIlTED BY TRAINING NETWORK INC. AT $12,500.00. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION FAILED 2-2-1. COUNCILMEMBER
SCHEEL AND COUNCILMEMBER DIETZ OPPOSED. MAYOR DUITSMAN ABSTAINED.
6.5
Consider Reauest To Establish The City Fee For Holdina Imoounded Vehicles
The City Administrator indicated that the Police Chief is requesting Council
authorization to charge a $10.00 per day impound fee for vehicles; that are
impounded by the City.
COUNCILMEMBER SCHEEL MOVED TO CHARGE A $10.00 PER DAY IMPOUND FEE FOR
VEHICLES IMPOUNDED BY THE CITY AND HELD AT THE CITY'S IMPOUND LOT.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
Councilmember Holmgren questioned whether it would be in the City's best
interest to operate an impound lot.
Councilmember Scheel questioned whether the City bid for towing services.
THE MOTION CARRIED 5-0.
6.6
General Uodate On The Evans And Main Street Drainaqe Proiect And Consider
Reauest To Order Bids
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City Engineer Terry Maurer reviewed the proposed plans for the Drainage
Improvement Project located at the intersection of Main Street and Evans
Avenue.
COUNCILMEMBER SCHEEL MOVED TO ADOPT RESOLUTION 95.26. A RESOLUTION
APPROVING THE PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT
FOR BIDS IN THE MATTER OF THE MAIN STREET/EVANS AVENUE INTERSECTION
DRAINAGE IMPROVEMENT Of 1995. COUNCILMEMBER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
6] Review Park Develooment Issues
The City Council discussed the current need for youth recreation and athletic
fields. The City Administrator indicated that the City has looked at options and
available sites for athletic fields. He indicated that staff feels the best available
site and location for youth athletic fields appears to be the 12.5 acres of WWTP
land that was originally purchased for the disposal of sludge.
Councilmember Scheel indicated that she does not feel the City of Elk River must
provide all of the athletic fields for the area youth.
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The City Administrator informed the Council that he has been approached by a
citizen who owns property near the sludge site. He indicated the property owner
has stated his interest in selling the property to the City. The City Administrator
questioned whether the Council is interested in authorizing staff to pursue this
issue. Councilmembers Holmgren and Dietz stated that they would be interested
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May 22, 1995
Page 5
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in having the City Administrator negotiate a price for the property. Mayor
Duitsman indicated that he is not certain that he would vote for acquisition of the
land but authorized the City Administrator to negotiate a price for the property.
The Council agreed to continue discussion on recreation fields to the next
meeting.
7. Other Business
Councilmember Holmgren indicated he has received some complaints regarding
the City's future liquor store site located on 1 93rd Avenue regarding the condition
of the site. The City Administrator indicated the site will be taken care of by
Richard Foster as previously agreed upon.
8. Staff Uodates
The City Administrator updated the City Council on recent State legislation.
The City Administrator reminded the Council of the MnDot Tour to be held on
Friday, May 26, 1995.
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The City Administrator informed the Council that the Lake Orono's Association is
holding its annual spring meeting on May 24, 1995. The City Administrator
updated the Council on the City's involvement in monitoring the silting of Lake
Orono.
9.
Adjournment
There being no further business, COUNCILMEMBER HOLMGREN MOVED> TO
ADJOURN. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
The meeting of the City Council adjourned at 8:45 p.m.
Respectfully submitted,
~~
Sandra Thackeray
City Clerk
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