07-26-1993 CC MIN
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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
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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
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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.
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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
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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.
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City Council Meeting
July 26, 1993
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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
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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.
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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