04-27-1992 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 27, 1992
MEMBERS PRESENT:
Mayor Tralle, Councilmembers Schuldt, Kropuenske, Dietz,
and Holmgren (arrived at 7:45 p.m.)
MEMBERS ABSENT:
None
STAFF PRESENT:
Patrick Klaers, City Administrator; Lori Johnson,
Finance Director; Bill Rubin, Economic Development
Coordinator; Sandra Thackeray, City Clerk; Thomas
Zerwas, Police Chief; Thomas Tyler, Investor; and Dave
Hurd, Corporal
ALSO PRESENT:
Peter Beck, City Attorney; Jeff Gongoll, EDA Chairman
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 7:00 p.m. by Mayor Tralle.
1.1. Consider Agenda
Item 3.0 - Discussion of Dickenson letter, was added to the agenda.
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE
AGENDA AS AMENDED. COUNCILMEMBER DIETZ SECONDED
MOTION CARRIED 4-0.
4/27/92 CITY COUNCIL
THE MOTION. THE
2. Open Mike
There was no one present for this item.
3.0. Discussion of Dickenson Letter
Councilmember Dietz stated that he has received a lot of feedback since
the City Council voted to send a letter to Mr. Dickenson regarding
friendly condemnation of his property. Councilmember Dietz stated he
would like the issue put back on the agenda next week as a formal
agenda item to revisit the entire issue and rethink the whole process.
Gary Santwire informed the Council that there could be approximately 20
people at the Council meeting next week regarding this issue. Gary
Santwire stated that a concern of the public revolve around getting the
issue on the table for discussion. Another area of concern relates to
information that was submitted in a letter to Mr. Dickenson and in the
letter it seems the Council has determined it is in the best interest
of the City to develop this parcel.
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City Council Minutes
April 27, 1992
Page 2
COUNCILMEMBER DIETZ MOVED TO PUT THE DICKENSON ISSUE ON THE AGENDA FOR
FORMAL DISCUSSION AT THE 5/4/92 CITY COUNCIL MEETING TO BE HELD AT THE
ELK RIVER PUBLIC LIBRARY. COUNCILMEMBER SCHULDT SECONDED THE MOTION.
THE MOTION CARRIED 3-1. Councilmember Kropuenske opposed.
3.1. Consider Request by Tescom Corporation to Issue Industrial Revenue
Bonds
Bill Rubin, Economic Development Coordinator, stated that Tescom
Corporation has requested that the City Council consider issuing
Industrial Revenue Bonds at approximately $1,500,000 to finance the
acquisition of land and construction of a new facility adjacent to
their existing building and to finance a portion of the cost to
renovate part of their existing facility.
Councilmember Schuldt questioned how this request differed from the
request made in 1991. Bill Rubin explained that the request in 1991
was for $1,000,000 in Industrial Revenue Bonds to finance the cost of
an addition to the existing facility. Bill Rubin explained that these
bonds were never issued as Tescom chose to not move forward with their
expansion project.
Bill Rubin informed the Council that the resolution has been reviewed
by the City's bond counsel and that there were a few minor revisions
made.
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 92-34, A RESOLUTION
RECITING A PROPOSAL FOR AN INDUSTRIAL FACILITIES DEVELOPMENT PROJECT,
AUTHORIZING A PUBLIC HEARING, GIVING PRELIMINARY APPROVAL TO THE
PROJECT PURSUANT TO THE MINNESOTA STATUTES SECTION 469.154, AUTHORIZING
THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE
COMMISSIONER OF THE DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT OF THE
STATE OF MINNESOTA, AND AUTHORIZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT (TESCOM
CORPORATION PROJECT). COUNCILMEMBER KROPUENSKE SECONDED THE MOTION.
THE MOTION CARRIED 4-0.
3.2. Update on Refuse Appeal Board
Mayor Tralle stated that the City has received three applications from
people interested in serving on the Refuse Appeal Board. He further
stated that the City has also received a request from a garbage hauler
to serve on the Board.
Councilmember Kropuenske stated he would like to see
Appeal Board increase by adding two citizens at large
hauler to the Board. Councilmember Kropuenske further
like to see the interviews completed within 30 days and
interviews he would like all current appeals to be
another 30 day time period.
the size of the
and a garbage
stated he would
following the
reviewed within
Peter Beck, City Attorney, suggested that the garbage hauler Appeal
Board member be a non voting member of the Board.
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City Council Minutes
April 27, 1992
Page 3
The Council suggested rotating the garbage hauler position among the
other garbage haulers on a yearly basis.
It was the consensus of the City Council to interview the three
applicants for the Appeal Board within 30 days and to contact Curt
Corrow of Corrow Sanitation and request him to be a non voting member
of the Board.
3.3. City Hall Construction Project
The City Administrator informed the Council that the City is ready to
move forward in the bidding process for the City Hall construction
project. He stated that the City's Attorney and Architects have
reviewed the bid documents.
Jeff Gongoll, EDA Chairman, stated that he has received a
questions from people affected by the project and suggested
City somehow get word out to those people regarding the details
project. It was suggested that a letter be sent to the
property owners.
lot of
that the
of the
affected
Councilmember Kropuenske requested that the Fargo Builders Exchange,
from Fargo, North Dakota be removed from the bid document. It was the
consensus of the Council to remove the Fargo Builders Exchange from the
document.
COUNCILMEMBER KROPUENSKE MOVED TO AUTHORIZE EOS ARCHITECTURE TO GO OUT
FOR BIDS ON THE PROPOSED CITY HALL AND POLICE FACILITY PROJECT.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0.
3.4. Presentation from Peter Beck for Attorney Services
Peter Beck stated that he was present to discuss with the City Council
the legal services that Larkin, HOffman, Daly, Lindgren has been
providing for the City of Elk River. Peter Beck stated that he would
like to reconfirm the commitment of Larkin, Hoffman, Daly, Lindgren to
continue providing the City of Elk River with legal services following
Dave Sellegren's departure from the firm.
Peter Beck stated that he will be the City Attorney in name and fact
for the City of Elk River and will be attending City Council meetings
and will maintain the overall responsibility for the delivery of legal
services to the City of Elk River.
Peter Beck stated that the main strong point offered by Larkin, Hoffman
is their team approach. Peter explained the different areas in which
the City would receive legal assistance which consisted of general
legal services, general litigation, employment law, environmental law,
real estate bond law and administrative law.
City Council Minutes
April 27, 1992
Page 4
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Councilmember Dietz questioned whether Peter Beck would eventually be
taking on more man~gement within the firm. Peter Beck stated that he
does not expect to be taking on any more administrative responsibility
than he has at the present time.
Councilmember Holmgren arrived at this time (7:45 p.m.)
Peter Beck gave an update on the history of the Larkin, Hoffman firm.
He stated that there are about 70 lawyers in the firm and that the firm
is stable and is developing a emphasis on municipal law.
Peter Beck stated that he personally enjoys municipal work. He stated
that everyone in the firm appreciates the importance of Elk River as a
client. The City Council thanked Peter Beck for his presentation.
3.5. Liquor Store Cooler Quotes
Pat Klaers indicated that Fritz Dolejs, Liquor Store Manager, is
recommending that the City purchase a front loading cooler for the
Liquor Store. He stated he received two quotes and is recommending
that the City accept the quote from AA Equipment Company at $2,189.
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COUNCILMEMBER KROPUENSKE MOVED TO RECOMMEND THE PURCHASE OF A FRONT
LOADING COOLER FROM AA EQUIPMENT COMPANY AT THE PRICE OF $2,189.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.
Finance Department Annual Report/Lori Johnson
Finance Director, Lori Johnson, began her annual report by indicating
to the City Council that the audit for 1991 would be presented at the
next City Council meeting. This audit will present the details of the
City finances. Lori stated that her report would relate more to
general projects and activities within the Finance Department in 1991.
Lori discussed with the City Council the garbage program that began at
the end of 1990. Calendar year 1991 was the first full year for the
garbage program. It was noted that if no penalties or interest income
on the penalties were received, the fund would have showed a net
operating income loss. However, the penalties were higher than
anticipated and consequently the fund did show a slight profit. It was
noted that no expenses for the personal services related to billing
were included within the fund and that this expense may have to be
added in the future.
1991 Special Assessment projects were briefly reviewed. The projects
included the Fillmore Street Improvement, the Proctor Avenue Expansion
and Utility Improvement Project, the Elementary School Sewer and Water
and Street Project, and the Garbage Program. It was noted that Special
Assessment projects for 1992 are anticipated to include the Westwood
Project, the Western Area Project, and the Garbage Program.
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The fund balance at the end of 1991 was reviewed. It was noted that
the fund balance went up approximately 5% or $37,000 in 1991. The
percent of fund balance to the budget has remained constant and is at
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City Council Minutes
April 27, 1992
Page 5
approximately 26.5% at the end of 1991. The fund balance as a percent
of the budget has gone up about 1/2% each of the last two years. It
was noted that the fund balance is still below what is needed in order
to provide adequate cash flow for City services until funds becomes
available from the State. It was also noted that the fund balance in
Elk River is at the low end of the scale when being compared to other
developing cities (Page 14 - Lakeville, Oakdale, Rosemount, Savage and
Stillwater).
The Finance Director briefly reviewed the City Hall bond issue.
noted that at the time of bond issue, the City also requested a
improvement from Moody's but was not successful.
It was
rating
The Finance Director reviewed the City investments
Council. It was noted that total investments amounted to
$617,000 in 1991. Of this total, only about 6% goes
Fund while 18% goes to Enterprise Funds and 41% goes to
A total breakdown of the income distribution is shown on
with the City
approximately
to the General
Debt Service.
Page 23.
Updates on the Gravel Tax status and the collection of the Landfill
Solid Waste Surcharge was provided. It was noted that the Gravel Tax
has remained steady but that the City is behind in collecting its
Landfill Surcharge.
The Finance Director indicated that the City tax rate has decreased
last four years. Also, for taxes payable in 1992, the City
collect a smaller portion of the total real estate taxes paid.
the
will
The Certificate of Achievement for calendar year 1990 that was received
earlier in 1991 was briefly discussed. It was noted that this is the
second year in a row that the City has received this award and that the
award is the highest recognition for municipal financial accounting.
The Finance Director briefly reviewed staffing needs
years and ongoing projects that are necessary in order
operation of the Finance Department. These issues
Page 8 and 9 of the Finance Report.
for the next few
to improve the
are discussed on
At this time the City Council thanked the Finance Director for the
excellent work she had done for the City in 1991 and indicated their
desire to support the department in whatever ways necessary to continue
improving the operation of the department and status of City finances.
The Finance Director discussed the status of the computer system at
City Hall. Lori indicated that she will be needing to purchase
additional items in order to improve the efficiency of the computer
operations. The Council requested that she formalize her request and
that she proceed in getting quotations for the needed items.
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City Council Minutes
April 27, 1992
Page 6
The Finance Director reviewed with the City Council the bond sale
resolution that will be presented on May 4, 1992. The City Council
indicated its support to proceed with an MSA bond project. The Council
acknowledged that the activities in 1992 (the Main Street/169 project
and the Western Area project) would utilize all of the 1992 MSA funds
plus additional funds scheduled for the next ten years. By bonding for
these projects, half of the MSA annual allocation will be available
beginning in 1994, but that no funds would be available in 1993 for
activities. City bonding for the Westwood Improvement Project was also
reviewed with the City Council and it was indicated that this was also
on the May 4, 1992, agenda.
5.
police Department Annual Report/Tom
Sergeant; Dave Hurd, Corporal
Zerwas,
Chief;
Tom
Tyler,
Chief Zerwas began his annual report by discussing the total calls for
service (CFS) that were received by the Police Department in 1991. The
CFS increased by 19% to a total of 11,808. Of this total, the Part I
Crimes increased 7% to a total of 536 CFS. The Part I Crimes are more
serious than the Part II Crimes. The Part II Crimes increased by 15%
to 1,010 CFS. Chief Zerwas indicated that the clearance rate of
approximately 19% was higher than normal throughout the state.
Council discussion took
action that the Police
vandalism in this area.
place regarding vandalism at
Department is taking in order
the Mall and
to contain
Chief Zerwas reviewed with the City Council the activities of the
Police Reserve units. It was noted that approximately 5,200 hours of
service were donated to the community in 1991. The biggest events were
the 4th of July celebration and the Sherburne County Fair.
Chief Zerwas reviewed with the Council the details for the Calls for
Service that were received in 1991. Areas of increase included adult
traffic arrests, speeding tickets for adults, domestic cases,
assistance with car lockouts and animal complaints.
The City Council discussed with the Chief the status of the County
Attorney's Office. Chief Zerwas indicated that the County Attorney's
Office has been very responsive to the City's concerns about police
officer overtime and the timeliness of processing cases.
Sergeant Tyler reviewed with the Council the D.A.R.E. Program and the
school liaison program. Discussion took place regarding activities at
the Junior High and how the need for a police officer at the two Junior
High's has increased.
At this time the City Council viewed a video tape showing training
sessions of the emergency response unit and activities at a D.A.R.E.
classroom setting.
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City Council Minutes
April 27, 1992
Page 7
Chief Zerwas noted that a highlight of 1991 was having Officer Ron
Nierenhausen being recognized as the Sherburne County Law Enforcement
Officer of the Year by the Elk River area VFW.
The City Council discussed the status of
accidents. Sergeant Tyler reviewed his
that was established by the City Council in
the ambulance response to
role on the Health Committee
1991.
A brief discussion took place regarding the new police vehicles in 1991
along with the transfer of an older vehicle to the Fire Chief.
At this time the City Council thanked Chief Zerwas for his
indicated its continued support for the Police Department.
Council was in agreement that the Police Department
exceptionally well in 1991 considering the level of activity
limited amount of finances and manpower being available.
report and
The City
performed
and the
6. Other Business
No other business was presented at this time.
7. city Administrator Update
The City Administrator indicated that the City
railroad land auction that was scheduled for last
railroad agreed to sell the City the property at the
upon price and the City agreed to accept this offer.
withdrew from the
Saturday. The
previously agreed
The City Administrator noted that another meeting was scheduled with
representatives of UPA to discuss the possible purchase of the old City
Hall site by UPA.
The City Administrator handed out a letter from the Community Education
Department which indicated that its annual meeting is scheduled for
Thursday, April 30, 1992.
The City Administrator distributed three handouts from 1968 and 1969
land use and planning reports. These reports highlighted a need to
develop park land around Orono Park near the fairground vicinity and
the need to install municipal utilities around Lake Orono in order to
protect the environment.
The City Administrator reviewed two recent requests to
Engineer look at the sidewalk situation in the
District and to help evaluate the traffic flow and
around Jackson Square. The City Council agreed
Engineer spend some time on these two projects.
have the City
Central Business
parking status
to have the City
8. Adjournment
There being no further
ADJOURN THE MEETING.
MOTION CARRIED 5-0.
business, CQUNCILMEMBER HOLMGREN MOVED TO
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
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City Council Minutes
April 27, 1992
Page 8
The meeting of the Elk River City Council adjourned at approximately 11:05
p.m.
RZ~U~&deted7
~andra Thackeray . .
City Clerk ,
Pat Klaers
City Administrator