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10-25-1993 CC MIN e e e Members Present: Members Absent: Staff Present: MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 25, 1993 Mayor Duitsman, Councilmembers Dietz, Scheel, Farber, and Holmgren None Pat Klaers, City Administrator; Sandra Thackeray, City Clerk; steven Ach, City Planner; Terry Maurer, City Engineer; Lori Johnson, Finance Director; Peter Beck, City Attorney 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 6:03 p.m. by Mayor Duitsman. 2. Consider 10/25/93 City council Agenda COUNCILMEMBER FARBER MOVED TO APPROVE THE 10/25/93 CITY I AGENDA. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION 5-0. COUNCIL CARRIED 3.1. Consider 10/18/93 City Council Minutes COUNCILMEMBER FARBER MINUTES. COUNCILMEMBER CARRIED 5-0. MOVED TO HOLMGREN 10/18/93 MOTION. COUNCIL MOTION APPROVE SECONDED THE THE CITY THE 3.2. Consider 10/18/93 Executive Session City Council Minutes COUNCILMEMBER FARBER CITY COUNCIL MINUTES. MOTION CARRIED 5-0. MOVED TO APPROVE THE 10/18/93 EXECUTIVE SESSION COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE 4.1. Consider Adoption of Trunk Sewer and Water Assessment Roll for Meadowvale Heights Improvement Project for 1993 Terry Maurer, City Engineer, stated that the trunk sanitary sewer and water main extensions are the last public improvements needed to serve the Meadowvale Heights project. The two property owners involved in the assessment are the Nord family estate and the Backes development. He stated that both Mr. Backes and the Nord family have waived their rights to a public hearing for this project. He further indicated that some of the Nord assessments will be deferred until the property is platted, or in five (or seven) years, whichever comes first. Some of the other Nord assessment will be deferred until a water tower to serve this high pressure district area is constructed. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 93-65, A RESOLUTION DETERMINING ASSESSED COST OF IMPROVEMENT AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL IN THE MATTER OF MEADOWVALE HEIGHTS TRUNK Elk River City Council Meeting October 25, 1993 Page 2 e UTILITY MOTION. IMPROVEMENT OF 1993. THE MOTION CARRIED 5-0. COUNCILMEMBER SCHEEL SECONDED THE COUNCILMEMBER ADOPTING FINAL IMPROVEMENT. CARRIED 5-0. HOLMGREN MOVED TO ADOPT RESOLUTION 93-66, A RESOLUTION ASSESSMENT ROLL FOR THE MEADOWVALE HEIGHTS TRUNK UTILITY COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION 4.2. Review Policy on Sewer and Water Stub-ins Requested by Rick Foster Marly Glines stated that he is not requesting any change to the City's policy on sewer and water stub-ins for collector or arterial streets or existing developments. He indicated he is requesting that the Council consider changing the policy to allow the utility services for new residential developments to be put in the right-of-way and that they not be required to be put into the easements. He stated that many homeowners use the easements for the planting of trees and shrubs. Mr. Glines noted that after checking with several other cities, it was the policy of these cities to put utility services in public right-Of-way and not in the easements. Bill Birrenkott, Elk River Utilities Superintendent, stated that past practice of the Utilities has been to put the electrical utilities in the easement. e Terry Maurer informed the Council that the current policy states that the utilities be extended into the easement only if the easement is not treed. He stated that if there are trees in the easement, then the utilities would not be extended. Councilmember Farber stated that it makes sense to have utilities in the right-Of-way and that it is important to the developers. Councilmember Holmgren stated that when this issue was first discussed by the Council, a representative of the Elk River Utilities was not present. He stated that by extending the utilities to the easement, there is a benefit to the property owner and to the utilities department. He further indicated that there would be no benefit to the developer by extending utilities into the easement. He further indicated that all of these iss~es were not discussed when this policy was presented to the Council. He requested to direct the issue back to the Utilities Commission for discussion. Bill Birrenkott, Elk River Utilities Superintendent, indicated that the extension of the utilities into the easement is a good idea. He requested that this issue also be reviewed by the sewer department. tit COUNCILMEMBER HOLMGREN MOVED THAT THIS ISSUE BE REVIEWED BY THE UTILITIES COMMISSION AND THAT THE COMMISSION MAKE A RECOMMENDATION TO THE CITY COUNCIL REGARDING A POLICY FOR SEWER AND WATER STUB-INS. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. Councilmember Dietz was away from the Council table during the vote. 4.3. Consider Final Plat for Hillside Estates Second Addition Elk River City Council Meeting October 25, 1993 Page 3 e steven Ach, City Planner, indicated that the City Council previously granted approval to connect fifty lots in Hillside Estates Phase I to the sanitary sewer system. Steve Ach informed the Council that Mr. Foster has now requested to hook up thirteen lots to the sanitary sewer in Phase II of Hillside Estates. Steve Ach informed the Council that there technically is sewer capacity in the existing sanitary sewer line, however, staff has received requests from other property owners who also wish to hookup to the sanitary sewer line. He stated that representatives from SuperArnerica have asked if they can construct a gas station at the southeast corner of Highway 169 and 193rd Avenue, which would require the installation of utility lines. He indicated that staff has informed superArnerica that they cannot proceed forward with their development until the trunk sanitary sewer line is made available. He further indicated that staff is also recommending that Hillside Estates Phase II not be allowed to hook up to the existing sewer line, but to wait until the trunk utility line is in place to serve Hillside Estates Phase II. This is consistent with the conditions for approval of Phase I last year. Rick Foster stated that they are out of lots and requested the Council to consider allowing him to hook up to an additional thirteen lots in Phase II of Hillside Estates. e Councilmember Holmgren stated that Mr. Foster has been before the Council with full intentions to plat Hillside Estates since April of 1992. He indicated that SuperArnerica has just recently corne before the Council requesting authorization to connect to the existing sanitary sewer line. He indicated that Mr. Foster should be given priority over SuperArnerica. Mr. Foster indicated that he is not platting CherryHill Bluffs at this time and that he would, in a sense, be trading the thirteen lots from CherryHill Bluffs to Hillside Estates Phase II. City Engineer Terry Maurer indicated his concern that a condition be placed on the plat of CherryHill Bluffs stating that no hook-ups to the existing sewer line be made until the trunk line is installed. Rick Foster stated that if Elk Park Center is denied by the Council, he would petition for trunk sewer. COUNCILMEMBER FARBER MOVED TO AUTHORIZE STAFF TO PREPARE A RESOLUTION FOR FINAL PLAT APPROVAL OF HILLSIDE ESTATES PHASE II WITH THE STIPULATION THAT MR. FOSTER BE ALLOWED TO CONNECT THIRTEEN LOTS OF THE HILLSIDE ESTATES PHASE II TO THE EXISTING SANITARY SEWER LINE AND THAT MR. FOSTER NOT BUILD ON THE SIXTEEN LOTS IN THE CHERRYHILL BLUFFS PLAT LYING NORTH OF THE EXISTING PLAT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 4.4. Discussion with Developer Rick Foster on City Trunk Sewer and Water Assessment Policy City Engineer Terry Maurer stated that Rick Foster has raised issues relative to the City's trunk sanitary sewer and water assessment Elk River City Council Meeting October 25, 1993 Page 4 e policy. The assessment policy indicates that trunk sanitary sewer and water assessments will be on a service district basis. Terry Maurer explained that the assessment policy manual is outdated and staff is in the process of updating the manual. He further indicated that past practice has been to assess trunk sewer and water out to benefitted p~operties at the rate of $3,800 per acre. He indicated that Mr. Foster is contesting the charge of $3,800 per acre and feels the City should follow the method of assessment as stated in the assessment manual. Councilmember Farber concurred with Mr. Foster in that the City should follow the assessment manual. Rick Foster stated that the assessment manual states that the developer pay the actual cost of the assessment. He indicated that he would be willing to pay the City the actual cost to run the trunk line. Terry Maurer indicated that the City's current policy of $3,800 per acre is based on the belief that all properties should pay the same fair and equitable amount for the benefit of trunk sewer and water. Terry Maurer further indicated that the project in this sewer and water district will not be completed for a number of years, and, therefore, the actual cost will not be able to be determined until the project is complete. e Councilmember Dietz stated that if the Council decides to charge the developers the actual cost of a trunk system, he will not be in favor of charging $3,800 per acre for the east Highway 10 utility if the $3,800 is not the actual cost. He further indicated he would like more information on this policy before making a decision. Mayor Duitsman stated he would like to defer action on this issue until the policy can be further studied. COUNCILMEMBER HOLMGREN MOVED TO REFER THIS MATTER TO A FUTURE DATE UNTIL THE CITY ENGINEER AND STAFF HAVE SUFFICIENT TIME TO REVIEW THE EXISTING POLICY. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.5. Consider Adoption of Trunk Sanitary Sewer and Water Assessment Roll for CherryHil1 Bluffs 2nd Addition Lori Johnnson, Finance Director, indicated that the signed amendment to the Developer's Agreement for CherryHill Bluffs 2nd Addition has not yet been received. The amendment to the Developer's Agreement calls for a per lot charge to be paid when a Certificate of Occupancy is issued and eliminates the need for a special assessment for trunk sanitary sewer and water. e Rick Foster stated that he would sign the amendment to the Developer's Agreement. COUNCILMEMBER SCHEEL MOVED TO CONTINUE A DECISION ON THIS ISSUE UNTIL THE OCTOBER 26TH COUNCIL MEETING IF AN AMENDMENT IS NOT SIGNED BY THAT Elk River City Council Meeting October 25, 1993 Page 5 - TIME. 5-0. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4.6. Consider Resolution Approving the Ordering Advertisement for Bids Trunk Water Improvement Plans and Specifications and in the Matter of the Northeast Area City Engineer Terry Maurer indicated that plans and specifications have been prepared for the construction of trunk water main from the new water tower site in the northeast area of the City down to the existing Hillside Estates Phase I water system. He further indicated that Mr. Foster has requested that the City include sanitary sewer in the plans and specifications. The City Engineer further stated that City staff has agreed to include the sanitary sewer in this improvement project as long as appropriate security is placed to ensure payment of that improvement. Mayor Duitsman questioned whether this has been reviewed by the Utilities. Terry Maurer indicated that the City has historically assessed all trunk watermain improvements. Mayor Duitsman requested that this issue be referred to the Utilities Commission for its input. e COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 93-67, A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND ORDERING THE ADVERTISEMENT FOR BIDS IN THE MATTER OF THE NORTHEAST AREA TRUNK WATER IMPROVEMENT OF 1993. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.7. Discussion on Sanitary Sewer Later Installation and Letter of Credit Reguirement in the Matter of the Northeast Area Improvement Project City Engineer Terry Maurer stated that Rick Foster has requested that sanitary sewer extension be included with the trunk watermain extension to the new elevated tower. Terry Maurer further indicated that Mr. Fosters believes that it should not be necessary for him to provide a Letter of Credit to cover the cost of the sanitary sewer extensions. Terry Maurer stated staff believes that a Letter of Credit is necessary as the improvement is a lateral improvement and also an internal plat improvement. He stated that staff is requiring a Letter of Credit to cover the sanitary sewer extensions. After further discussion, Rick Foster withdrew his request. 5. Open Mike e Mr. Mike Poppin stated he is a resident of Deerfield III Addition and has experienced flooding of his home several times. He stated he has previously been before the City Council regarding these floodings. He stated that he has had major flooding this summer due to the drainage in Deerfield III. Mr. Poppin had pictures and distributed them to the Council for their review. Mr. Poppin stated he is asking for help to put his house back together. He indicated that this is a City problem. He further stated he has finished his basement twice, and, at this time, still cannot use his basement. Elk River City Council Meeting October 25, 1993 Page 6 e Finance Director Lori Johnson suggested that Mr. Poppin put his request in writing and indicated that the City would then submit his request to its insurance company. She stated that the insurance company would determine whether or not the City is liable. 6.1. Consider Renewal of Three Year Garbage, Refuse and Recycling Contract City Administrator Pat Klaers indicated that on November 1, the City's contract for garbage, refuse, and recycling collection will expire. He indicated that staff has negotiated a new contract with the refuse haulers and that the contract will not require the rates to increase. COUNCILMEMBER FARBER MOVED TO REFUSE, AND RECYCLING COLLECTION 31, 1996. COUNCILMEMBER HOLMGREN CARRIED 5-0. APPROVE THE AGREEMENT FOR GARBAGE, FROM NOVEMBER 1, 1993, THROUGH OCTOBER SECONDED THE MOTION. THE MOTION 4.8. Consider Resolution Declaring the Adequacy of Petition for Improvement and Ordering the Preliminary Feasibility Report for Highway 10 and Oxford Street Turn Lane e City Engineer Terry Maurer stated that Mr. Ken Beaudry has signed a petition requesting the improvement of a right turn lane onto Oxford Street off of Highway 10. He indicated that the improvement is being done in conjunction with a conditional use permit for a convenience store gas station at the corner of Trunk Highway 10 and Proctor Avenue. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 93-68, A RESOLUTION DECLARING THE ADEQUACY OF THE PETITION FOR IMPROVEMENT AND ORDERING THE PRELIMINARY FEASIBILITY REPORT IN THE MATTER OF THE TRUNK HIGHWAY 10/0XFORD STREET TURN LANE IMPROVEMENT OF 1993. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.9. Update on Comprehensive Storm Drainage Plan City Engineer Terry Maurer informed the Council that a brief report has been prepared providing more information on the three critical areas as outlined in the storm drainage plan. He briefly reviewed the findings and issues on each of these areas. The areas included Main Street and Evans Avenue intersection, regional pond outlet, and Deschenes and Schultz area. After review, it was the consensus of the Council to authorize staff to proceed to work on all three areas and to work with the property owners, specifically on the acquirement of easements in the Deschenes/Schultz area, for the implementation of the storm drainage plan. 4.12. Update on MnDOT Highway 10/169 Improvement Project and the Extension of the City Trunk Sewer, Water, and Storm Sewer Systems e City Engineer Terry Maurer stated that he has been working with MnDOT to pursue any opportunity the City would have to install trunk utilities in conjunction with the MnDOT upgrade of the Trunk Highway 10/101/169 interchange. Terry Maurer indicated that after meeting with Mr. Tim Johnson of MnDOT, it was concluded that there was no Elk River City Council Meeting October 25, 1993 Page 7 e opportunity to install conduits for future extension of sanitary sewer and watermain to the East Highway 10 corridor in conjunction with MnDOT's project. He indicated that staff is therefore recommending that the issue of conduits for future sanitary sewer and water extensions be dropped at this point. Terry Maurer indicated that the comprehensive drainage plan calls for a 72 inch diameter storm sewer line from the railroad line through the MnDOT interchange to the Mississippi River. Terry Maurer stated that MnDOT's final design of the Trunk Highway 10/101/169 interchange does not provide enough elevation difference to install a 72 inch diameter culvert. He further indicated that in order to get comparable capacity in a smaller size culvert, three parallel 42 inch diameter culverts would need to be installed. He indicated that this would be much more costly than the installation of one larger diameter pipe. He stated that the cost would be between $525,000 and $600,000. Terry Maurer further indicated that if the City decided to install only one 42 inch culvert to save money, the affect would be increased ponding requirements upstream. He further indicated that it is unlikely that the DNR and Army Corps of Engineers will allow this amount of ponding. He recommended that the City proceed through MnDOT to include the three 42 inch diameter pipes in the MnDOT project with the option to eliminate one or two of them depending on the construction costs. e COUNCILMEMBER HOLMGREN MOVED TO INCLUDE THREE 42 INCH DIAMETER PIPES IN THE MNDOT PROJECT WITH THE OPTION TO ELIMINATE ONE OR TWO OF THEM DEPENDING ON CONSTRUCTION COSTS. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.10. Discussion on Policy for Storm Sewer Fees Related to the Comprehensive Storm Drainage Plan City Engineer Terry Maurer stated that staff is currently working on developing a storm water utility fee which will generate money to be utilized for storm sewer improvements by providing for a monthly or quarterly charge. Terry Maurer stated that the only other funding mechanism available for these types of improvements would be assessments to the benefitted properties. Terry Maurer indicated that the City Council should consider the appropriateness of a potential assessment fee on an area basis for developing properties. The Council should also determine at what level the rates should be set. After further discussion it was the consensus of the Council to authorize the City Engineer to research other cities and developments and bring a recommendation back to the City Council. Mayor Duitsman informing them assessments. requested staff to send a memo to Elk River Utilities of the possibility of billing for storm sewer 4.11. Update on Deerfield III Storm Sewer Project e City Engineer Terry Maurer stated that the City received a total of six bids for the storm sewer improvement in the Deerfield III Addition. The lowest bid was from D.B. Miller Inc., at $122,307. Elk River City Council Meeting October 25, 1993 Page 8 e Terry Maurer indicated that an easement is needed to get the flow from Deerfield III through Royal oaks to the wetland and drainage area from Lots 11 and 12, Block 1, Royal Oaks Addition, which are owned by Mr. steve Hartman. Mr. Hartman has provided the City with a list of conditions he would like to see met in order to provide the necessary easements. One of the conditions is that no work is to be accomplished prior to the spring of 1994. Terry Maurer stated he has discussed the potential for a change order to meet Mr. Hartman's conditions with the low bidder, and they have indicated a willingness to pursue the change order. He further stated that the low bidder also requested that they would prefer not to construct the project until the spring of 1994. Discussion was held regarding the fact that the work cannot be done this fall due to the lateness of the season. It was suggested by the Council that if the work must be done in the spring, the City should take measures to prevent flooding of Mr. poppin's home. Mr. George Deschenes and Mr. Mike Poppin both indicated their concern regarding flooding in the spring and timing of the storm drainage project. COUNCILMEMBER SCHEEL MOVED TO AUTHORIZE THE CITY ENGINEER TO PURSUE ACQUIRING THE EASEMENT FROM MR. HARTMAN AND TO MOVE AHEAD WITH THE PROJECT IN THE SPRING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.13. Consider 221st Avenue Improvement Bids and Review Project e City Engineer Terry Maurer stated that bids were opened for the realignment and reconstruction of 221st Avenue with the low bidder being S.J. Louis Construction at $101,661.85. Terry Maurer indicated that the necessary easements have not been acquired at this time and further stated that staff feels that financial assistance for this project should be obtained from the adjacent benefitted property owners which are in the gravel mining business. Terry Maurer suggested that the Council reject all bids and reconsider the project in 1994. COUNCILMEMBER FARBER MOVED TO ADOPT RESOLUTION 93-69, A RESOLUTION REJECTING THE BIDS AND AUTHORIZING RETURN OF THE BID BONDS IN THE MATTER OF THE 221ST AVENUE IMPROVEMENT OF 1993. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.14. High School Student Use of Lion's Park Parking Lot City Administrator Pat Klaers indicated that District 728 has expanded their parking lot and that this has reduced the number of students using Lion's Park parking lot. Pat Klaers further indicated that the Park and Recreation Commission moved to recommend the posting of four 2 hour parking signs near Shelter L5. The City Council discussed the restriction of student parking at Lion's Park. It was the consensus of the Council that the park be posted so as to prevent any student parking at the park. e COUNCILMEMBER HOLMGREN MOVED TO HOUR PARKING DURING SCHOOL HOURS. MOTION. THE MOTION CARRIED 5-0. POST SIGNS AT LION'S PARK STATING 2 COUNCILMEMBER FARBER SECONDED THE Elk River city council Meeting October 25, 1993 Page 9 --------------------- - 4.15. Consider Pay Estimate for Mississippi Oaks, CherryHill Bluffs 2nd Addition, Main street and Highway 169 Project and Hillside Estates Phase I Improvement Finance Director Lori Johnson requested that Final Pay Estimate for Hillside Estates Phase I Improvement be deleted. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE FOLLOWING PAY ESTIMATES: PAY ESTIMATE 12 TO LATOUR CONSTRUCTION IN THE AMOUNT OF $60,042.12 FOR WORK COMPLETED ON MISSISSIPPI OAKS; PAY ESTIMATE #3 TO LATOUR CONSTRUCTION IN THE AMOUNT OF $145,671.89 FOR WORK COMPLETED ON CHERRYHILL BLUFFS 2ND ADDITION; FINAL PAY ESTIMATE TO GMH ASPHALT INCORPORATED IN THE AMOUNT OF $49,243.31 FOR THE MAIN STREET/HIGHWAY 169 SIGNAL IMPROVEMENT PROJECT. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.2. Consider Ordinance Amendment to Section 300 of the City Code Relating to Redistricting of Ward Lines .e City Clerk, Sandra Thackeray, stated that the US Supreme Court ruled that the boundaries of Minnesota's eight Congressional Districts were improperly drawn. She stated that prior to this ruling, the City of Elk River was split by the congressional District boundary for Districts 6 and 8. As a result of the US Supreme Court decision, the Congressional line was moved to the east, putting Elk River entirely in Congressional District 8. Because of this ruling, she stated that staff is recommending the removal of precincts in the City of Elk River. She stated that the four wards will remain the same. COUNCILMEMBER SCHEEL MOVED TO APPROVE ORDINANCE 93-12, AN ORDINANCE AMENDING SECTION 300 OF THE ELK RIVER CITY CODE ENTITLED "WARDS". COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.3. Consider Resolution Determining polling Locations for Voting Within the Elk River City Limits The City Clerk stated that staff has taken this opportunity to reevaluate the number of existing polling locations in the city. She stated that currently there are three polling locations and staff is requesting to add City Hall as an additional polling place. The City Clerk indicated that the addition of City Hall as a polling place would result in four polling locations; one separate location for each ward. COUNCILMEMBER HOLMGREN MOVED TO APPROVE RESOLUTION 93-70, A RESOLUTION DETERMINING POLLING LOCATIONS WITHIN THE CITY OF ELK RIVER. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 6.4. Review of Board and Commission Implementation of Appointment Policy 1993 Term Expirations and Elk River City Council Meeting October 25, 1993 Page 10 --------------------- e city Clerk Sandra Thackeray noted'that the City Council recently voted to adopt a policy that would eliminate automatic reappointment of Commission and Board members. She noted that staff has drafted a written policy which follows Council's directions. After reviewing the policy, it was the consensus of the Council that the written policy be adopted. Councilmember Scheel noted that all Commissions and Boards should be informed of the policy. COUNCILMEMBER FARBER APPOINTMENT POLICY. MOTION CARRIED 5-0. MOVED TO ADOPT THE BOARD AND COMMISSION COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE 6.5. Review Summary of Expenditures for Building Project City Hall/Police Department Finance Director Lori Johnson distributed a project cost summary of the Elk River City Hall and Police facility. Lori Johnson noted that there was a project surplus for the City Hall/Police facility of $74,751. The total project was about 2.9 million dollars. 6.6. Designation of Funds e City Administrator Pat Klaers noted that the City recently obtained $15,000 from the sale of City owned property north of the MnDOT site. The City Administrator recommended the the City Council begin reserving funds within the Equipment Reserve fund for major equipment repairs. He recommended that the money available from the selling of this land be put into this type of fund. The City Administrator noted that early in 1993, the City defeased a public improvement bond. He stated that bond defeasement money comes from public improvement projects and recommended that these monies be designated into the Capital Projects fund to allow the City to continue subsidizing street redevelopment and improvement projects. COUNCILMEMBER FARBER MOVED TO DESIGNATE THE MONEY FROM THE DEFEASEMENT OF THE PUBLIC IMPROVEMENT BOND TO THE CAPITAL PROJECTS FUND. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER FARBER THE CITY'S LAND SALE EQUIPMENT REPAIRS. MOTION CARRIED 5-0. MOVED TO DESIGNATE THE APPROXIMATE $15,000 FROM TO THE EQUIPMENT RESERVE FUND TO BE USED FOR MAJOR COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE 6.7. Authorization to Purchase Computer Equipment e Finance Director Lori Johnson noted that the City purchased its existing IBM System 36 computer system in the fall of 1988, with the anticipation that the useful life of the system would be five years. She noted that at this time there is a need to update the equipment to improve efficiency. Lori Johnson noted that the estimated amount for the software and equipment will be about $40,000. She noted that because the hardware cost and the software costs will both be under $25,000 each, formal bids are not required. She further indicated she Elk River City Council Meeting October 25, 1993 Page 11 ---------~----------- e has received five quotes for the hardware and software for the installation of the City's network. Lori Johnson further indicated that the cost of computer equipment for the public works department is included in this price. She noted that the public works department will use its computer equipment for mapping, vehicle maintenance tracking, sign inventory, vendor and supply database, and minor word processing. Funding for this purchase would come from the undesignated equipment reserve and from the data processing reserve. COUNCILMEMBER HOLMGREN MOVED TO DIRECT THE FINANCE DIRECTOR TO PROCEED WITH THE PURCHASE OF THE NECESSARY COMPUTER EQUIPMENT FOR THE CITY ~~L AND PUBLIC WORKS DEPARTMENT WITH A CAP OF $50,000. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-1. Mayor Duitsman opposed due to the fact that he did not have the written quotes for the computer equipment to review. Lori Johnson reminded the Council that she would not be requesting formal bids as the computer equipment would be coming from two to three different vendors. 6.8. Update on 1994 Estimated Tax Rates and Net Tax Capacity Information from the County e Pat Klaers, City Administrator, updated the Council on information relating to the 1994 estimated tax rates which has been received from the County Auditor's Office. 6.9. Consider 1994 Pay Resolution The City Administrator noted that the draft 1994 compensation Plan was included in the Council packet for review. Mayor Duitsman suggested the following pay increases: two percent for all non-exempt employees; City Administrator, $67,000; Finance Director $56,000; Police Chief, $55,500; Street Superintendent, $55,500; City Planner, $42,000; Fire Chief, 2% increase; remaining employees, 3% increase. Discussion was held whether or not this plan would meet the comparable worth law. Finance Director Lori Johnson noted that she would run these figures through the computer to see whether or not it meets the law. Councilmember Farber suggested that the Police Chief salary should be higher than the Public Works Director salary. The City Administrator suggested that the Economic Development coordinator take on the position of Executive Director for the HRA and EDA. With this added responsibility he recommended an increase in salary to reflect the added responsibilities. It was the consensus of the City Council that this issue be brought back for review at a later date. 7. Check Register e COUNCILMEMBER FARBER MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. e e e Elk River City Council Meeting October 25, 1993 8. Council Updates Councilmember Scheel questioned whether the City lots. The City Administrator indicated that the of completing the sale of the lots. 9. Staff Updates Thure were no other updates. 10. Adjournment Page 12 had sold the three City is in the process There being no further ADJOURN THE MEETING. MOTION CARRIED 5-0. business, COUNCILMEMBER HOLMGREN MOVED COUNCILMEMBER FARBER SECONDED THE MOTION. The meeting of the Elk River City Council adjourned at 9:20 p.m. Respectfully submitted, c;4. ." /J...... 0. Sandra A. Thackeray City Clerk TO THE