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07-26-1993 CC MIN . . . ~ MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 26, 1993 Members Present: Mayor Duitsman, Councilmembers Dietz, Holmgren, and Farber Members Absent: Councilmember Scheel Staff Present: Pat Klaers, City A&ninistrator; Sandra Thackeray, City Clerk; Lori Johnson, Finance Director; Tom Zerwas, Chief of Police; Russ Anderson, Fire Chief; Cliff Skogstad, Building Official; Stephen Rohlf, Building and Zoning Administrator; Phil Hals, Street/Park Superintendent 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:00 p.m. by Mayor Duitsman. 2. Consider 7/26/93 City Council Agenda COUNCILMEMBER FARBER MOVED TO APPROVE THE 7/26/93 CITY COUNCIL AGENDA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3.1. Consider 7/12/93 Special City Council Minutes COUNCILMEMBER DIETZ MOVED TO APPROVE THE 7/12/93 SPECIAL CITY COUNCIL MINUTES. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3.2. Consider 7/19/93 City Council Minutes COUNCILMEMBER FARBER MINUTES. COUNCILMEMBER CARRIED 4-0. 7/19/93 MOTION. MOVED TO HOLMGREN APPROVE SECONDED THE THE CITY THE COUNCIL MOTION 3.3. Consider 7/19/93 Executive Session City Council Minutes COUNCILMEMBER FARBER MOVED MINUTES OF THE CITY COUNCIL. THE MOTION CARRIED 4-0. TO APPROVE THE 7/19/93 EXECUTIVE SESSION COUNCILMEMBER DIETZ SECONDED THE MOTION. 4.1. Fire Relief Retirement Fund Contribution Request Randy Sykes, Treasurer of the Elk River Fire Relief Association, addressed the Council as a representative of the Elk River Fire Department. Randy indicated that with the City's anticipated contribution, the total compensation has dropped in real dollars since 1981. He explained that there has been an increase in state mandated training and that there have been more demands on the Fire Department with less financial participation from the City. He further indicated . . . City Council Meeting July 26, 1993 Page 2 that with an increase of five additional firefighters there has been a drop in retirement benefits for all firefighters. He further stated that the $19,000 contribution by the City has been, and was, a verbal commitment in 1986 that this money is part of firefighters' compensation and the firefighters consider this part of their compensation on a per year basis. He indicated that firefighters put in many hours of community service and the City and state put unlimited demands on their time. He stated that the firefighters feel the $19,000 contribution from the City is fair pay for a job well done. Mayor Duitsman requested that in the future, he and Lori Johnson be included at all Fire Relief Association meetings. Mayor Duitsman stated that the City is requesting the firefighters consider changing their plan to eliminate the unfunded liability placed on the City. He recommended that the City increase the hourly wage instead of making a contribution to the retirement plan as this is a fair method of reimbursing the firefighters. He further stated that the firefighters must consider changing their plan to a defined contribution benefit system. Randy Sykes indicated that the Fire Relief Association has been looking at changing to a defined contribution benefit system, but it is a very complex method and will take time. It was indicated by several firefighters that they would prefer a deferred benefit rather than an increase in hourly wage. The City Administrator stated that in 1986 there was never an ongoing commitment for a contribution to the Fire Relief Association from the City Council, but it was meant to be evaluated year by year. MAYOR DUITSMAN MOVED THAT THE CITY CONTRIBUTE $19,000 TO THE ELK RIVER FIRE DEPARTMENT RELIEF ASSOCIATION FOR 1993 WITH THE IDEA THAT NEXT YEAR THE CITY WILL LOOK AT WAGE INCREASES IF THE FIRE DEPARTMENT IS NOT WILLING TO TRANSFER THE PLAN ASSETS TO A DEFINED CONTRIBUTION PLAN. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Fire Relief Per Year of Service Benefits Request Randy Sykes stated that the Fire Relief Association is recommending that the per year of service benefit be raised to $2,240. He stated this amount requires no City contribution and that it is a very conservative calculation. COUNCILMEMBER FARBER MOVED TO INCREASE THE YEARLY RETIREMENT AMOUNT TO $2,240 PER YEAR OF SERVICE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION FAILED 2-2. Councilmember Dietz and Mayor Duitsman opposed. COUNCILMEMBER DIETZ MOVED TO INCREASE THE YEARLY RETIREMENT PER YEAR OF SERVICE. MAYOR DUITSMAN SECONDED THE MOTION. CARRIED 4-0. TO $2,200 THE MOTION . . . City Council Meeting July 26, 1993 Page 3 5. Open Mike Marly Glines requested that the Council consider building permits for CherryHil1 Bluffs 2nd Addition City Engineer's review and approval. He stated that he have the homes completed for the Fall Parade of Homes. authorizing six contingent on the would like to COUNCILMEMBER HOLMGREN MOVED TO APPROVE SIX BUILDING PERMITS FOR CHERRYHILL BLUFFS 2ND ADDITION CONTINGENT UPON THE CITY ENGINEER'S REVIEW OF THE LOCATION. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.3. Award Seal Coat Bids Phil Hals, Street/Park Superintendent, stated that two bids received for the seal coating improvement of 1993. He indicated bids were from Allied Blacktop at $53,847.90, and Astech Corporation $57,460.76. were the at COUNCILMEMBER DIETZ MOVED TO ADOPT ACCEPTING BID AND AUTHORIZING EXECUTION THE STREET SEAL COATING IMPROVEMENT SECONDED THE MOTION. THE MOTION CARRIED RESOLUTION OF CONTRACT OF 1993. 4-0. 93-34, A RESOLUTION IN THE MATTER OF COUNCILMEMBER FARBER 4.4. Consider Improvements to Ranch Road Phil Hals, street/Park Superintendent, requested the City Council to consider authorizing the solicitation of quotes to pave a 1,500' long section of Ranch Road. He indicated that Councilmember Farber had raised some concerns regarding this section of road at a previous Council meeting and recommended that the Council consider paving the road. The funding for this project would be the Streets reserve. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE SUPERINTENDENT TO SOLICIT QUOTES FOR PAVING A 1,500 OF RANCH ROAD. COUNCILMEMBER FARBER SECONDED THE CARRIED 4-0. THE STREET/PARK FOOT LONG PORTION MOTION. THE MOTION The City Administrator requested that the Council also consider using the Street reserves to pave 165th Avenue along the railroad tracks. It was the consensus of the Council to advertise for bids for the improvement of 165th Avenue. Phil Hals, Street/Park Superintendent, noted that in preparation of improvements for Jackson Square, the existing flagpole may have to be moved. Some locations that have been considered are the old creamery site, the EDA Main Street site in the downtown area, and somewhere near the City offices. It was the consensus of the Council that if the Chamber relocates to the creamery site, this would be an appropriate location for the flagpole. The City Council recessed at 7:27 p.m. to hold an Economic Development Authority meeting, and reconvened at 7:56 p.m. . . . City Council Meeting July 26, 1993 Page 4 4.5. Consider Purchase Price for 1.3 Acre Extension of Orono Parkway Through the Southeast Corner of the County Fairgrounds The City Administrator stated that the County Board has met and offered to sell a 1.3 acre parcel of property to the City for $7,500, which is slightly more than the $6,500 the City offered to pay. This price is in addition to the special assessments due on the 1.3 acre parcel. He further indicated that the property is being purchased to extend Orono Parkway. COUNCILMEMBER DIETZ MOVED TO PURCHASE 1.3 ACRES OF PROPERTY FROM SHERBURNE COUNTY FOR THE PURPOSE OF EXTENDING ORONO PARKWAY THROUGH THE SOUTHEAST CORNER OF THE FAIRGROUNDS FOR $7,500. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 3-0-1. Councilmember Holmgren abstained as he is employed by Sherburne County. 4.6. Consider Transient Merchant License to Sell Ice Cream COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE A PEDDLERS LICENSE TO JAMES FITCHIE TO SELL ICE CREAM AND POP FROM A VENDING TRUCK. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 8. Public Hearing to Consider Amending the Urban/Rural Taxing District Ratio Lori Johnson, Finance Director, indicated that a public hearing has been called to discuss an ordinance amendment which would change the benefit ratio of the urban/rural taxing districts. She stated the current ratio is .6. Lori Johnson stated that there were numerous commercial and industrial parcels which should have been included in the urban district, but were improperly included in the rural districts during past payable tax calculations. Lori Johnson explained that previous to 1993, the difference between the urban and rural tax rate had been minimal; somewhere between 2.4 and 3.2 points. She stated that in 1993 the difference was 7.438 points and suggested that in an effort to maintain continuity between the difference in the urban and rural taxing districts, the ratio needs to be changed from .6 to approximately .85. She further suggested that the ordinance be worded to include tax ratio changes for future years. Mayor Duitsman opened the public hearing. There being no one for or against the matter, Mayor Duitsman closed the public hearing. Lori Johnson informed the Council that changing the tax ratio does not affect the amount of tax revenues the City receives, but only the way in which the City collects the revenue. COUNCILMEMBER DUITSMAN MOVED TO RESTATING THE BENEFIT RATIO FOR THE FOLLOWS: ADOPT ORDINANCE 93-9, AN ORDINANCE URBAN/RURAL SERVICE DISTRICTS AS .9 FOR TAXES PAYABLE IN 1994 .95 FOR TAXES PAYABLE IN 1995 . . . City Council Meeting July 26, 1993 Page 5 1.0 FOR TAXES PAYABLE IN 1996 COUNCILMEMBER FARBER SECONDED THE MOTION. Councilmember Holmgren abstained as he is an Assessor's Office. THE MOTION CARRIED 3-0-1. employee of the County 9. Consider Personnel Issues Relating to 1994 Budget City Administrator, indicated that the City Council began this issue at its July 12, meeting. The City reiterated the action taken by the City Council at that Pat Klaers, discussion on Administrator meeting. The City Administrator indicated that the Street/Park Superintendent has some concerns regarding maintaining the same type of service for snowplowing during the winter season of 1994 due to the number of single family plats that have been added to the City. After discussion by the Council it was the consensus to incorporate the money in the budget for a street maintenance person beginning in fall, 1994. Tom Zerwas, Police Chief, stated that although the Council authorized the hiring of two patrol officers, one of which will be paid for through the D.A.R.E. proceeds, he had a concern regarding staffing shortage during the training period for the new officers. He stated that he wanted the Council to be aware that the Police Department will be hiring for the positions before November so as to alleviate any staffing shortage. It was the consensus of the Council to authorize the Police Department to proceed with the hiring process. Housing Inspector - Steve Rohlf, Building and Zoning Administrator, Russ Anderson, Fire Chief, and Cliff Skogstad, Building Official, were present for this item. Steve Rohlf discussed issues of concern related to the hiring of a housing inspector. He recommended that if a housing inspector is hired, that this person start with apartment inspections and complaints. Councilmember Dietz questioned whether other cities the size of Elk River offer this type of service. Cliff Skogstad indicated that many of the larger cities do offer this service, but have indicated they felt it would have been more efficient to start this service when the City was smaller. Discussion was held regarding supplementing the position through license fees. Steve Rohlf informed the Council that the program may not be fully funded through license fees. Councilmember Dietz questioned whether the position of Housing Inspector and Fire Marshal could be shared. He stated that he did not feel the City could afford to fund both positions in one year and it would be more feasible to hire one person to inspect apartments for both building code and fire code issues. . . . City Council Meeting July 26, 1993 Page 6 Russ Anderson, Fire Chief, stated that he felt if a Fire Marshal hired, this position could be a full time position. He indicated there are many commercial and industrial businesses which should inspected by a Fire Marshal. He further indicated that training fire prevention are also important and would be duties assigned to Fire Marshal. were that be and the After further discussion, it was the consensus of the Council that the City include in the 1994 budget a Housing Inspector who would work under the direction of Steve Rohlf and inspect apartments and residential rental units for both fire and building code safety, and further, that this person have a Class 2 Building Inspector license so as to assist the residential Building Inspector, if necessary, during the busy months of the year. It was further indicated that if issues arise during apartment inspections which require the direction of a Fire Marshal, the City's Fire Chief would be contacted. It was further indicated that the Fire Chief would start a commercial and industrial inspection program and that he start inspecting as many units as is possible. The Council indicated that the issue of Fire Marshal would be revisited in another year, and, at that time, Russ Anderson could give an update on how the program is progressing. Planning Intern - Mayor Duitsman indicated that he was not of hiring a Planning Intern at this time as he feels that should be given time to adjust to the City Planner position. the consensus of the City Council to not take any action on Intern, however, to allow the flexibility so that it may be the budget to hire an intern to start in the fall of 1994. in favor Steven Ach It was a Planning added to Personnel Director Mayor Duitsman indicated that he is not in favor of hiring a Personnel Director at this time. The City Administrator indicated that if a Personnel Director were hired, he would request that the Director act as part time Personnel Director and part time Administrative Assistant. Councilmember Dietz suggested that with more hours being given to the Finance Department by the addition of an employee (Brenda Ebner), he felt that Lori could pass some of her work on to Joan Frick and, therefore, free up her time to take on some of the personnel duties. The City Administrator indicated that there are many personnel duties which need review including the ADA law, insurance benefits, an employee safety program, comp worth, employee training, etc. The City Administrator further indicated that the City is in need of one person to coordinate all personnel issues. Mayor Duitsman stated that distributed among the current he would like to see how decision on this issue. he would like to see the personnel duties employees. Councilmember Farber stated the budget works out prior to making a . . . City Council Meeting July 26, 1993 Page 7 10. Staff Updates The City Administrator indicated that the City received two quotes for the City Hall plaque. The lower quote was from Sign Solutions at $740.39. COUNCILMEMBER DIETZ MOVED TO AWARD THE BID FOR THE CITY HALL PLAQUE TO SIGN SOLUTIONS, INC., FOR $740.39. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. The City Administrator informed the Council that the land transactions have taken place between Rick Foster and the City of Elk River. The City purchased a parcel of land for the water tower site at $10,000 from Rick Foster and sold a parcel of property along Highway 169, north of the MnDOT location, to Rick Foster for $15,000. The City Administrator questioned whether it would be appropriate to request that Elk River Utilities pay for the water tower property. It was the consensus of the Council to request $10,000 from Utilities for payment of the water tower site. Discussion was held on the use of the $15,000 received from the property sold to Mr. Foster. Suggestions included equipment reserves to be used for major, unbudgeted equipment repairs, paying off equipment certificates, and for parks. No decision was made at this time regarding the placement of the $15,000. The City Administrator distributed a handout from the Minnesota Department of Revenue explaining the Local Government Aid formula. He indicated that he does not believe that the formula benefits the City of Elk River as much as was indicated by Representative Klinzing on July 12. The City Administrator informed the Council that the Palmer conditional use permit would be before the Council on August 16. The City Administrator informed the Council that Bonanza Restaurant has approached the City regarding the high WAC and SAC fees. He indicated that Bonanza Restaurant has a high usage rate and, therefore, the WAC and SAC fees would be quite high. He suggested allowing Bonanza to pay these fees through some type of payment system. It was the consensus of the Council to authorize the City Administrator to talk to the City Attorney and to draw up a payment plan for Bonanza Restaurant and other businesses that would have high SAC and WAC fees that may come into Elk River. . . . City Council Meeting July 26, 1993 11. Other Business Page 8 Mayor Duitsman indicated that a resident has volunteered to donate a stone bridge replica of the Elk River bridge. It was the consensus of the Council to accept the replica and to put it in the Police Department showcase. 12. Adjournment There being no further business, COUNCILMEMBER FARBER MOVED THE MEETING. COUNCILMEMBER DIETZ SECONDED THE MOTION. CARRIED 4-0. The meeting of the Elk River City Council adjourned at 9:55 p.m. Respectfully submitted, ~~~) Sandra Thackeray City Clerk TO ADJOURN THE MOTION