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12-05-1994 CC MIN e MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, DECEMBER 5, 1994 Members Present: Mayor Duitsman, Councilmembers Dietz, Scheel, Farber and Holmgren Members Absent: None Staff Present: Pat Klaers, City Administrator; Sandra Thackeray, City Clerk; Lori Johnson, Finance Director; Tom Zerwas, Chief of Police; 1 . Call Meetina To Order Pursuant to due call and notice thereof. the meeting of the Elk River City Council was called to order at 7:00 p.m. by Mayor Duitsman. 2. Consider 12/5/94 City Council Aaenda COUNCILMEMBER DIETZ MOVED TO APPROVE THE CITY COUNCIL AGENDA. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 3. Consider Consent Aaenda Councilmember Holmgren pulled the 11/28/94 City Council minutes from the Consent Agenda for discussion. Councilmember Holmgren requested that the following sentence be added to Item 3.3. of the 11128 City Council minutes concerning the ice arena - "Councilmember Holmgren thanked Finance Director Lori Johnson and City Administrator Pat Klaers for their work on the ice arena project. " ' Councilmember Scheel requested that the following sentence be added to Item 3.3. of the 11/28 City Council minutes concerning the ice arena project - "Dave McGillivray also explained that the City would be required to hold $260,000 to pay for the bond issue in case the ice arena does not raise enough revenue to pay for the bond." COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 4. 11/28/94 CITY COUNCIL MINUTES/APPROVED AS AMENDED 7.1. REQUEST FOR EXEMPTION FROM LAWFUL GAMBLING LICENSE FOR ELK RIVER JAYCEES TO SELL PULL TABS/APPROVED 8. CHECK REGISTER/APPROVED COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 5. ODen Mike No one appeared for this item. Elk River City Council Meeting December 5. 1994 Page 2 e 6. Truth in Taxation Budaet Public Hearina City Administrator Pat Klaers indicated that the Truth in Taxation budget and levy public hearing is required by law. He stated that the purpose of the public hearing is to receive pUblic comment on the proposed City of Elk River budget and tax levy for 1995. The City Administrator stated that a balanced budget in the amount of $3,732,250 is proposed. He indicated that this amount represents a 9.94 percent, or $337,500 increase over the adopted 1994 budget. The City Administrator also stated that the City net tax levy for 1995 is $2,223,347. He explained that approximately 80 percent of this amount is used for general fund activities. The balance is used for special assessments, equipment certificates, previous bond issues, the dam loan, the library, and the new surface water management program. The City Administrator reviewed the proposed source of funds for the 1995 budget. The City Administrator also reviewed the proposed expenditures for the 1995 budget. He reviewed each department, explaining the main reasons for proposed increases and decreases in the departments. Mayor Duitsman opened the public hearing. e AI Schrupp, 19462 Ogden Street, stated that his total taxes increased 32 percent. He stated if the City could lower its expense, it could lower its revenues, therefore avoiding some of the increase to the taxpayers. Mr. SChrupp questioned the number of new employees added to the City from 1992 to 1995. He further indicated that the increases in the Finance and Administration budgets far exceed the cost of living increases. Rick Adamski, 1834 Wand Street, indicated his concern regarding the increase in the Police Department budget. He questioned whether it was necessary to have the number of police officers that are on the police force in Elk River. steve Brown, 19727 Lowell, indicated his concern regarding the increase in his property value and property taxes. Daryl Gottemeister, 14393 214th Avenue, indicated he received a 32 percent increase in his City taxes. He questioned why property owners in the outlying areas of the City are required to pay such high taxes. Mayor Duitsman explained the change in the rural/urban taxing districts and the reasons for the surface water management fees. Finance Director Lori Johnson provided some estimated taxes for a variety of properties in the City in relation to the previously proposed storm water management fee. Richard Toth, Zimmerman, questioned whether the storm water management fee would be a one year fee or an annual fee. He further indicated he did not feel the storm water management tax would benefit him in any way. e Pam Tuttle, 13324 Ranch Road, questioned why rural residents pay a higher percentage in taxes than urban residents. She indicated she is opposed to paying for amenities which she does not receive. Elk River City Council Meeting December 5, 1994 Page 3 e Mayor Duitsman explained that the rural population does not pay a higher tax than the urban population and that the City is working toward the goal of taxing them on an equal basis. Dick Gruys, 22347 Monroe Street, questioned whether the funds for the storm water management would be earmarked for that purpose and would not be used for the general fund. Mayor Duitsman indicated that this money would not be used for the general fund budget. Mr. Gruys further indicated that there are many ditches in the City that need repair immediately. He further questioned whether the developers were paying their fair share for storm water management. Gene Thompson, Meadowvale, stated that he has paid a lot of ditch tax during the past few years. He stated that the storm water runoff fees should be paid by the people who benefit. He stated it would not be difficult to determine the water shed and who would benefit from improvements. Four citizens (no names were given) expressed their displeasure with the new surface water levy and the increases in their property values. e Emma Holzem, questioned whether the City has looked into the State revolving loan fund for storm water management. She indicated that fees by a tax levy are more equitable than assessing farm land. She also stated that the farmers being assessed for this program will not receive benefits. She further indicated that the developers are the biggest polluters. Bob Turcotte, 18184 Albany, questioned why those people who improve their homes are taxed more than the people who make no improvements and let their property become run down. Councilmember Scheel thanked the residents from her Ward for coming to the Council meeting to voice their opinion regarding this issue. COUNCILMEMBER HOLMGREN MOVED TO CONTINUE THE TRUTH IN TAXATION PUBLIC HEARING TO DECEMBER 12, 1994, TO BE HELD AT THE ELK RIVER CITY HALL AT 8:00 P.M. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. The Council recessed at 8:37 p.m. and reconvened at 8:45 p.m. 7.2. Consider Request to Purchase Police Vehicles Police Chief Tom Zerwas stated that he has received two quotes for the purchase of three 1995 police squad cars and a purchase price from the Hennepin County Purchasing Coop. He indicated that all of the quotes are between $2,000-$3,000 per vehicle higher than was budgeted for the police vehicles for 1995. The Police Chief indicated that the low quote was received from Elk River Ford in the amount of $16,175.50 per vehicle for 3 1995 Ford Crown Victorias. e Discussion was held regarding the condition of the Fire Chief's vehicle. It was noted that the vehicle has approximately 1 70,000 miles on it and is in very poor Elk River City Council Meeting December 5,1994 Page 4 e shape. The Council discussed the possibility of the Fire Chief converting one of the police vehicles for his use. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE PURCHASE OF THREE 1995 FORD CROWN VICTORIAS FROM ELK RIVER FORD AT A PURCHASE PRICE OF $16,175.50 PER VEHICLE. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5.0. 7.3. Finance Director Position The City Council reviewed a proposal for a four year contract with Lori Johnson as the City's Finance Director. The contract allowed for Finance Director Lori Johnson to work with the City on an average of thirty hours per week. to be paid on a per hour basis. and would require the Finance Director to work a minimum of twenty-four hours per week at City Hall. The proposal also noted the hiring of an Assistant Finance Director and provided for the City to purchase a modem and pay for monthly phone charges to connect the Finance Director's computer to the City's computer to allow for work at home. Mayor Duitsman indicated he appreciated Lori Johnson's dedication to the City of Elk River. He noted that the awards that she has received are an indication of the quality of the work that she has done for the City. He indicated he would be in favor of entering into the proposed contract with the Finance Director. e Councilmember Holmgren also agreed that Lori Johnson's work for the City is very valuable. He indicated that because the Finance Director is one of the most important people in the City and second in command at the City of Elk River. he felt that the position by definition is a full time job. He further indicated he did not feel it is a good precedent to enter into a contract with City employees. He indicated it would be hard to justify this type of change in policy to other City employees. Councilmember Scheel indicated her concern regarding the high cost of setting up an office for the Finance Director in her home. She also indicated she is not convinced that the City would get a qualified assistant who would not be disgruntled with working under a part time department head and was also concerned about the contract. Councilmember Farber indicated that he struggled with the idea of a part time Finance Director for the City. He stated that an alternative would be to offer Lori Johnson the title of Assistant City Administrator with the position being in charge of administrative services including the Finance Department. Council member Dietz indicated he could support Councilmember Farber's proposal. Councilmember Dietz indicated that if the City hired a new Finance Director it would affect a lot of projects. He questioned why the Council would not be willing to make a few concessions in order to keep the second highest employee of the City of Elk River. e COUNCILMEMBER FARBER MOVED TO OFFER LORI JOHNSON THE POSITION OF ASSISTANT CITY ADMINISTRATOR TO BE IN CHARGE OF ADMINISTRATIVE SERVICES WITH THE TERMS AND CONDITIONS AS LISTED IN THE CONTRACT PROPOSAL DATED Elk River City Council Meeting December 5, 1994 Page 5 e DECEMBER 2, 1994. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3~2. Councilmember Scheel and Holmgren opposed. 7.4. Consider December/January Meetinq Aaenda The City Administrator indicated that there are several holidays during the months of December, January, and February which affect City Council meetings. He requested the Council to review the next three months for meeting dates. COUNCILMEMBER DIETZ MOVED TO CALL A SPECIAL MEETING OF THE CITY COUNCIL ON JANUARY 9, 1995, IMMEDIATELY FOLLOWING THE EDA MEETING. COUNCILMEM8ER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5~0. COUNCILMEMBER SCHEEL MOVED TO CALL A SPECIAL MEETING OF THE CITY COUNCIL ON JANUARY 16, 1995, TO HOLD A CAPITAL IMPROVEMENT WORKSESSION MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. It was the consensus of the Council to hold the Planning and Zoning Council public hearings at the January 23 and February 27, 1995 meetings. 9. Other Business There was no other business presented. e 10. Adiournment There being no further business, COUNCILMEM8ER HOLMGREN MOVED TO ADJOURN THE MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River City Council was adjourned at 9:20 p.m. Respectfully submitted, . l.. ,/. "--1d 1 rj.A\~i/t \".A'la.-ejf~{jI (c2it~) Sandra Thackeray City Clerk e