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04-27-1992 CC MIN . . . 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. . . . 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. . . . 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 . 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. . 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. . 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 . . . 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. . . . 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. . . . 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 . . . 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