01-20-1992 CC MIN - SPECIAL
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SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL - WORK SESSION
HELD AT ELK RIVER CITY HALL
MONDAY, JANUARY 20, 1992
MEMBERS PRESENT: Mayor Tralle, Councilmembers Schuldt, Holmgren, Kropuenske,
and Dietz
MEMBERS ABSENT: None
STAFF PRESENT: Patrick Klaers, City Administrator; Lori Johnson, Finance
Director; and Phil Hals, Street/Park Superintendent
1. Call Meeting to Order
Pursuant to due call and noU ce thereof, the meeting of the Elk River
City Council work session was called to order at 6: 00 p. m. by Mayor
Tralle.
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Consider 1/20/92 CIP Work Session Agenda
It was the consensus of the City Council that the 1/20/92 City Council
Capital Improvement Program (CIP) work session agenda was acceptable as
presented.
3.
Discussion on Capital Improvement Program
The meeting began with a brief overview of 1991 CIP projects. The
following project were accomplished or substantially completed in 1991:
- Proctor Avenue Street and Utility Project
- Fillmore Avenue Street Project
- 173rd Railroad Crossing and Street Improvement Project
- Purchase of tax delinquent properties
- Smaller Park improvements as recommended by the Park and Recreation
Commission
- The Purchase of equipment and payment of lease purchase obligations
as approved by the City Council in the General Fund Budget
- The Purchase of Park land and improvement of this land near the
Community Education Site for Park and Recreation activities
- The purchase of land for an extension of Orono Park to the West
- The purchase of land for a City Hall/Police Facility
- The demolition of old City Hall
- The purchase of Waste Water Treatment Plant property for sludge
disposal
- Improvements along the Mississippi Riverbank in the Central
Business District (Rip Rap)
- The purchase of the Economic Development Authority site in the
Central Business District
- The purchase of vacant lots in the Elk River Industrial Park
It was noted that some people viewed 1991 as a planning year for the
City Hall Project and for the Westwood Improvement Project, but there
City Council Work Session Minutes
January 20, 1992
Page 2
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were also a significant number of activities and accomplishments that
took place in 1991.
The City Administrator reviewed with the City Council the status of the
Capital Improvement Program finances. The estimated 1/92 fund balances
and 1992 revenues were reviewed for each fund. The funds reviewed were
the Municipal State Aid (MSA) , Capital Projects, Landfill (for streets,
Library, and City Hall), Equipment Reserves, Park Dedication, Municipal
Liquor Store, Self Insurance, and NSP Funds. It was noted that most of
the street improvement work in 1992 would come from the MSA, Capital
Projects and Landfill (streets) funds. Additionally, some smaller
miscellaneous projects, mostly related to parks, would be financed out
of the Capital Projects Fund. A brief discussion took place regarding
the City using MSA bonding in order to finance some larger street
projects in 1992.
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The 1992-93 City Hall Construction Project and the finances for this
project were reviewed by the City Council. It was noted that the bond
financed by NSP, Liquor Store, General Fund, and Landfill revenues will
cover the expenses of the building and landscaping. Additionally, the
land purchase that was above and beyond the land gift is schedul ed to
be financed by NSP monies. Finances for the City Hall Furniture,
Fixture, and Equipment (F/F/E) and the public improvements were
discussed in greater detail.
Regarding the City Hall F/F/E, it was noted that funds have been placed
into a City Hall reserve for a number of years for this expenditure.
The fund is currently approaching $390,000 and includes a $150,000
Equipment Reserve transfer from 1991, accumulated Landfill reserves
from the Landf ill Surcharge, a year end General Fund transfer, and the
defeasing of a bond in 1987. It is hopeful that not all of this
reserve will be needed for F/F/E as ongoing Landfill revenues into this
fund are dedicated to the bond repayment and if the volumes at the
Landfill are not sufficient, reserves from this fund may be required in
order to make bond payments. It was noted that above and beyond the
normal desks and chairs associated with F/F/E items, that City would be
spending approximately $170,000 for the following items:
- Audio Visual Items for the Council Chambers ($30,000)
- Police and General Security - Door locks and cameras ($40,000)
- Telephone System ($60,000)
- Computer System ($20,000)
- Wellness Center ($20,000)
Furthermore, it was noted that an underground sprinkling system should
be included in the project and this expense may have to come out of
this City Hall reserve.
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Finances for the public improvements for the City Hall project were
reviewed. It was noted that assessments against the City Hall site are
scheduled to take place for the street and storm sewer, sffilitary sewer,
and water improvements. Additionally, trunk and lateral water and
City Council Work Session Minutes
January 20, 1992
Page 3
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sani tary sewer assessments would be levied against Orono Park and the
Softball Complex. The City Council noted that. MSA funds and equipment
reserves could finance these expenditures. Public improvements that
benefit City property is usually a City-wide assessment. The City
Council reviewed the intent of the RDF-TIF monies and agreed that it
would be a City-wide benefit if these funds were used to pay the public
improvement assessments that are planned to be levied against the City
Hall, Orono Park, and Softball Complex sites. It was agreed upon by
the City Council that, if feasible, these funds should be used for the
expenditures related to the public improvements.
The City Council took a 10 minute recess.
At this time, the City Council began the formation of a 1992 Capital
Improvement Program. The City Council began with projects that have
been worked on in 1991 and planned for 1992.
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Ci tv Hall - Plans call for the street and storm sewer part of
this project, from the Dam bridge to the western edge of the City
Hall site, to be financed from MSA funds and assessments to
benefitted property owners. This part of the project is estimated
at $960,000 based on a December, 1991 feasibility study. Trunk
and lateral sewer and water expenses are planned to be assessed
out to benefitted property owners. A temporary City Hall street
will be financed with capital projects funds. Final approval of
the project by the City Council is anticipated in early 1992.
Westwood Project - It was noted that this project still requires
Ci ty Council approval to move forward in 1992. Most of the
expenses are planned to be assessed out to benefitted property
owners on a basis yet to be determined by the City Council. City
participation in the project calls for all street expenses above
$20 per running foot to be financed from the Capital Projects
reserve. Additionally, of the $170,000 storm sewer part of the
project, $100,000 is related to areas outside of the Westwood
district. This storm sewer expense will have to be absorbed by
the City, at least on a temporary basis until funds can be
recaptured through assessments, from the Capital Projects Fund.
Additional City participation in the storm sewer project was
discussed but financial assistance in this area could not be
determined until the bids are received in early 1992.
Main Street/Highwav 169 This project, which calls for an
addi tional driving lane on the south side of the intersection and
which requires right-of-way purchase, is to be financed with MSA
funds. The City share of the project is estimated at $175,000.
Construction is planned for 1992. The project includes new street
signals with directional arrows in the east/west lanes.
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193rd/169 Signal - It was noted that a request to MnDOT for this
signal was approved by the City Council in 1991. Installation of
the signal is planned for 1992. City participation is estimated
at a maximum of $30,000 and will be financed with City MSA funds.
City Council Work Session Minutes
January 20, 1992
Page 4
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Impact fees related to development projects are also anticipated
to be received in the amount of 17,500 per quadrant.
IQdustrial Park Land Purchase - The City anticipates finalizing
this $260,000 purchase in 1992. City expenses for the project is
$155,000 and $50,000 for the park land site that will be financed
with NSP monies. The $155,000 expense is planned to be financed
by the City Liquor Store Fund ($110,000), the Capital Projects
Fund ($20,000), and the Undesignated Equipment Reserves
($25,000). The Elk River Municipal Utilities is also paying
$55,000 towards this purchase. This purchase has already received
City Council approval.
Tax Forfeited Properties - The City Council reserved its right
to purchase tax forfeited properties in 1992 depending upon
information received from the County Assessor's department on the
value of the properties. A number of sites may be desired which
relate to drainage areas, street extension possibilities and
potential park sites. If land is purchased, it would be financed
from the Capital Projects Fund. Approximately $25,000 was
reserved for this potential expenditure.
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Park Improvements - The City Council acknowledged that the Park
and Recreation Commission would be making its annual
recommendation to spend some Park Dedication monies on smaller
improvements in some of the neighborhood and community parks. It
was noted that most of the improvements in Barrington Place Park
have been completed in 1991. The City Council allocated $10,000
from the Capital Projects Fund for improvements in Deerfield IV
Park. City Council reserved $25,000 from Park Dedication monies
for disbursements based on the anticipated Park and Recreation
Commission recommendations. This $25,000 allotment included an
additional $5,000 for Deerfield IV park improvements as it was
anticipated that $15,000 would be necessary for any type of
significant improvements at this site.
Ri verbank Rip-Rap The City Council acknowledged that if a
grant was approved, matching funds in the amount of $15,000 for
this project would come from the Capital Projects Fund. A grant
was received and work was completed in 1991 on a similar project.
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Railroad Trail The City Council expressed its desire to
improve the abandoned railroad trail from the core village up to
Woodland Trails Park. The improvement may be a combination of
gravel, limestone or bituminous with the trails being realigned
through the Community Education/City recreation site that is under
development. The City Council allocated $30,000 from the Capital
Projects Fund for this improvement in 1992. It was noted that a
LAWCON Grant will be applied for in 1992 for improvements in 1993,
and this grant application may include improvements to the
railroad trail.
City Council Work Session Minutes
January 20, 1992
Page 5
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Annual Equipment Purchases. Seal Coat and Overlay Projects and
Lease/Purchase Payments - It was acknowledged by the City Council
that these purchases are financed through the General Fund
budgeting process. Staff was instructed to proceed with the
execution of these proposed expenditures. Equipment purchases are
estimated in the $120,000 range, lease/purchases in the $100,000
range, and seal coating and overlay projects in the $70,000 range.
Naples Street - The City Council was advised that this project,
which is a gravel improvement project until utilities are
available, was authorized in 1991. The last property owner
signing off on providing the City with easements for this project
was received in November. This project is scheduled to take place
in 1992 and will be financed with $15,000 from the Landfill
(Streets) Reserve. The majority of the work will be done by the
City Maintenance crew.
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The City Council decided that the rest of the 1992 projects and
projects for future years should be evaluated at a meeting in
February. The date of Monday, February 17, was acceptable to the Ci ty
Council. It was noted that at this next meeting the City would be
reviewing the minutes from the ClP Worksessions in 1991 and the Work
Programs as outlined in the August, 1990 CIP document in order to
ensure that no projects are left off the Work Plans and in order to
evaluate whether all the projects discussed over the last two years are
still appropriate and necessary. Additionally, new projects not listed
in these minutes or document will be discussed and evaluated. It is
anticipated that information from these minutes and document will
provide the foundation for the remainder of the 1992 Work Plan and the
1993-97 Work Plans plus the pending projects work list.
4.
Other Business/Staff Updates
The City Council discussed a proposal from the Railroad to purchase t.he
parking lot areas that are annually leased by the City. The Ci tJl
Council authorized t.he City Administrator to follow up on the offer
from the Railroad.
5. Adjournment
It was the consensus of the City Council that the meeting be adjourned
at approximately 8: 45 p. m. The next CIP Worksession is tentatively
scheduled for Monday, February 17, 1992.
Respectfully submitted,
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Patrick D. Klaers ~
City Administrator
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