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05-22-1995 CC MIN e 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. e 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. e Gary Groen of Abdo, Abdo and Eick gave an overview of the City's financiol operations. Elk River City Council May 22, 1995 Page 2 e 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 e 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. e Elk River City Council May 22, 1995 Page 3 e 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. e 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. e Elk River City Council May 22, 1995 Page 4 e 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 e 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. e 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 Elk River City Council May 22, 1995 Page 5 e 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. e 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 e s:minutes:cc05-22