06-03-1991 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 3, 1991
Members Present:
Mayor Tralle, Councilmembers Holmgren Schuldt and Dietz
Members Absent:
Councilmember Kropuenske
Staff Present:
Pat Klaers, City Administrator; Gary Schmitz, Recycling
Coordinator; Sandra Thackeray, City Clerk; Lori Johnson,
Finance Director
Also Present:
Gary Groen, City Auditor
1. Call Meetin~ to Order
Pursuant to due call and notice thereof, the meeting of the Elk River
City Council was called to order by Mayor Tralle at 7:10 p.m.
2.
Consider 6/3/91 Council Agenda
Items 5.10 - Nord Petition for Improvements and 7.1. - Jet skis were
added to the agenda.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE AGENDA AS AMENDED.
COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0.
3.1. Consider 5/13/91 City Council Minutes
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 5/13/91 COUNCIL MINUTES AS
SUBMITTED. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
3.2. Consider 5/16/91 Community Facilities Work Session Council Minutes
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 5/16/91 COMMUNITY
FACILITIES WORK SESSION COUNCIL MINUTES AS SUBMITTED. COUNCILMEMBER
SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0.
3.3. Consider 5/16/91 City Council Minutes
Councilmember Schuldt indicated that he would like the following
sentence added to page two under "Bob Otto". "Mayor Tralle indicated
that the residents abutting Proctor were being assessed for a two lane
improvement regardless of whether the road would be two lanes or four
lanes."
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE 5/16/91 CITY COUNCIL MINUTES
AS AMENDED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
City Council Minutes
June 3, 1991
Page 2
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3.4. Consider 5/20/91 City Council Minutes
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 5/20/91 CITY COUNCIL
MINUTES AS SUBMITTED. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
4. Open Mike
No one appeared for this item.
5.1. Board of Review Decision on Curtis Property
Mayor Tralle indicated that the County Assessor is recommending to
lower the land value of property owned by John Curtis by $3,000. It is
the opinion of the assessor that the guard rail placed on the property
during the Tyler Street Project has decreased the land value.
COUNCILMEMBER DIETZ MOVED TO LOWER THE LAND VALUE OF JOHN CURTIS'S LAND
(75-126-1101) BY $3,000, ADJUSTING THE TOTAL ESTIMATED MARKET VALUE TO
$113,300. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 3-0-1. COUNCILMEMBER HOLMGREN ABSTAINED DUE TO A CONFLICT OF
INTEREST AS HE IS EMPLOYED BY THE COUNTY ASSESSOR'S OFFICE.
5.2. Proctor Avenue Joint Powers A~reement
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Mayor Tralle indicated that the City Attorney has drafted a Joint
Powers Agreement between the City and the County for the Proctor Avenue
Project.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT, WITH MINOR REVISIONS, RESOLUTION
91-36, A RESOLUTION ADOPTING A COOPERATIVE AGREEMENT BY AND BETWEEN THE
CITY OF ELK RIVER AND SHERBURNE COUNTY SETTING FORTH AN UNDERSTANDING
FOR THE CONSTRUCTION AND FINANCING OF PROCTOR AVENUE. COUNCILMEMBER
DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
5.3. Amendments to Refuse Contract
Gary Schmitz indicated that the three local refuse haulers have
negotiated contract amendments concerning a base rate increase and
holiday pick up. He informed the Council that on April 1 of each year,
the haulers or the City can request an adjustment to the refuse
contract base rates based on increases or decreases in the consumer
price index or the Landfill tipping fee.
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Gary Schmitz informed the Council that Staff and the haulers have
negotiated a price increase of $.77 for the 90 gallon container and
$.65 for the 32 gallon container based on the CPI increase of 3.8% and
a tipping fee increase of $4.00 per ton. If this price increase is
approved by Council the 90 gallon container will be billed at $18.60
per month; the 32 gallon container will be billed at $14.75 per month;
and the 32 gallon biweekly container will be billed at $11.55 per
month. The new rates include the negotiated rate increase, an increase
in sales tax as required by law and a very small administrative
increase.
City Council Minutes
June 3, 1991
Page 3
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Councilmember Schuldt indicated that he felt the price increase was
premature because the program has only been in effect for eight months.
Gary Schmitz indicated that an additional change is being proposed in
the. contract which would clarify the garbage pick up day for all
residents during the week of the scheduled holidays.
Gary Schmitz indicated that a change is proposed in Section IV, Part
D.4.(a) of the contract to allow either the City or Haulers to request
. adjustments to the base rates on the basis of increases and decreases
in the Minneapolis/St. Paul Consumer Price Index for the preceding 12
months.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE REQUESTED BASE PAY RATE
ADJUSTMENT IN THE REFUSE CONTRACT AS FOLLOWS: 90 GALLON CONTAINER -
$18.60 PER MONTH; 32 GALLON BIWEEKLY CONTAINER - $11.55 PER MONTH; AND
32 GALLON - $14.75 PER MONTH. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER SCHULDT OPPOSED.
COUNCI LMEMBER HOLMGREN MOVED TO APPROVE THE AMENDMENT TO THE REFUSE
CONTRACT SECTION IV, PART B.3 RELATING TO HOLIDAY PICK UP.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
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COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE AMENDMENT TO THE REFUSE
CONTRACT SECTION IV, PART D.4.(a) RELATING TO THE CONSUMER PRICE
INDEX. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED
4-0.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE AMENDMENT NO. 2 TO THE
AGREEMENT FOR GARBAGE, REFUSE AND RECYCLING COLLECTION NOVEMBER 1, 1990
THROUGH OCTOBER 31, 1993. COUNCILMEMBER DIETZ SECONDED THE MOTION.
THE MOTION CARRIED 4-0.
Gary Schmitz gave the Council a brief overview of the refuse program
during the last eight months. Mayor Tralle commended Gary for the job
he has done so far and especially on the way he has dealt with the
public and the complaints the City has received.
5.4. .5% Sales tax option
Pat Klaers indicated that the County is requesting the City give a
recommendation regarding the levying of the ,5% local option general
sales tax. He indicated that the County has a deadline of July I,
1991, to ratify or veto this option, Mayor Tralle stated that if this
is not passed by the County, all jurisdictions of the County will take
a substantial cut in State aids.
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It was the consensus of the Council that this was not an option to the
local government, because of the loss in State aids to the local
governments if it is not approved. The Council indicated that they
felt they had no choice but to recommend in favor of this sales tax
option. It was the consensus of the entire Council that the
recommendation to accept the proposal is on a reluctant basis.
City Council Minutes
June 3, 1991
Page 4
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COUNCILMEMBER SCHULDT MOVED TO RELUCTANTLY SUPPORT THE .5% SALES TAX
LOCAL OPTION. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
5.5. PARK AND RECREATION COMMISSION RECOMMENDATIONS
Pat Klaers indicated that the Park and Recreation Commission has
received a request from Chris Rogers regarding a proposed batting cage
in the vicinity of the softball complex. It was the consensus of the
Park and Recreation Commission to deny the request. Mayor Tralle
indicated that the purchase of the land is not acceptable but a lease
agreement may be considered.
It was the consensus of the Council to deny the request.
The City Administrator indicated that the Elk River Country Club has
requested to enter into an agreement with the Elk River Park and
Recreation Commission. The agreement would give the Elk River Park and
Recreation Commission the right to use Elk River County Club land to
connect the ski trail system and to use the parking lot for the skiers,
providing the City will continue to plow and maintain the parking lot
during the winter months. The agreement states that for these rights
the Elk River Park and Recreation Commission will pay the Country Club
$30,000 which will be used to blacktop the parking lot.
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Mayor Tralle indicated that the representatives of the Elk River
Country Club were unable to be present at the Council meeting. He
requested that this matter be discussed with representatives of the
Country Club before any decision is made.
It was the consensus of the City Council to take no action on this item
at this time.
5.6. Special City Council Meetin~
COUNCILMEMBER HOLMGREN MOVED TO HOLD A SPECIAL MEETING OF THE ELK RIVER
CITY COUNCIL ON JUNE 10, 1991, AT THE ELK RIVER CITY HALL "FOLLOWING THE
7:00 P.M. EDA MEETING FOR THE MAIN PURPOSE OF CONSIDERING THE FILLMORE
STREET BIDS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
5.7. Council Representatives for WWTP Committee
Pat Klaers indicated that it has been decided that a Committee composed
of City staff members and Council members from Elk River and Otsego
would be formed to discuss the concept of sharing the Elk River WWTP
system with the City of Otsego.
It was the consensus of the Council to appoint Mayor Tralle and
Councilmember Dietz as members of this committee.
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City Council Minutes
June 3, 1991
Page 5
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The City Administrator indicated that when the City Council considered
the Health One and Elk River Ambulance Proposal, it was decided to
establish a Review Committee for the ambulance operation. He indicated
that the City Attorney has drafted an ordinance creating a health care
quality assurance commission for the Council's review.
Mayor Tralle recommended that no action be taken regarding this
ordinance until the City's Attorney and the Health One Attorney can
meet to jointly discuss the ordinance.
5.9. Gamblin~ Premise Permit for Ducks Unlimited at Elk River Bowl
The City Clerk explained that Elk River Goldeneyes Ducks Unlimited is
requesting an Exemption from Lawful Gambling License to sell raffles at
Elk River Bowl. She indicated that the request is for a one day
acti vity to take place on August 10, 1991. She further noted that this
event has taken place for several years at the Elk River Bowl.
It was the consensus of the Council to take no action to deny this
request.
5.10.Nord Petition for Improvements
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The City Administrator indicated that the School District, John Nord
and John Oliver have submitted a petition requesting sanitary sewer,
water and public road improvements for property purchased by the School
District.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 91-37, A RESOLUTION
DECLARING THE ADEQUACY OF THE PETITION FOR IMPROVEMENT AND ORDERING THE
PRELIMINARY FEASIBILITY REPORT IN THE MATTER OF THE PROPOSED C.S.A.H. 1
I.S.D. # 728 ELEMENTARY SCHOOL SITE IMPROVEMENT OF 1991. COUNCILMEMBER
DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
9. City Administrator Update
The City Administrator informed the Council that Irma Jenne has
indicated that she is willing to sign the purchase agreement for her
site. He indicated that this will take place soon.
The City Administrator distributed a thank you from the City of Otsego
for the tour of the WWTP facilities.
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Councilmember Holmgren briefly updated the Council on the discussion
held by the Community Education Department regarding a recreation
director. He indicated that out of the 27,000 residents in the
recreation di strict, commitments in favor of the recreation director
were received for a total of 20,000 residents. Councilmember Holmgren
indicated that most of the communities have not budgeted for this
posi tion to begin in 1991. He indicated his desire to see the person
start as soon as possible and suggested that the Council consider
having the City of Elk River pay for the first three months so that the
person can start this year. It was indicated by the Council that the
City also did not budget for this to take place in 1991.
City Council Minutes
June 3, 1991
Page 6
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The City Administrator indicated that he has received some response
regarding the sale of the City's lots known as Outlot A. He indicated
the Council will likely see this as an agenda item at a future meeting.
The City Administrator reviewed with the Council a memo from the
Planning Commission regarding a team building session between the
Planning Commission and Council.
7.1. Jet skis on Orono Lake
Councilmember Holmgren indicated that the County Water Patrol ran into
some difficulties while patrolling Lake Orono on Memorial Day. He
indicated there were concerns regarding the use of jet skis on Orono
Lake. The concerns revolved around the speed of the jet skis, and the
fact that the lake is too small for this type of recreation, especially
considering the number of boats that are usually on the lake. He
indicated that the County Water Patrol will be present before the Park
and Recreation Commission to discuss the use of jet skis on Lake Orono.
The Council recessed at 8:25 p.m. and reconvened at 8:35 p.m.
6.
1990 City Audit Presentation
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Gary Groen of Abdo, Abdo and Eick presented the 1990 City Audit. He
indicated that the General Fund has a fund balance of $713,852 which is
up about $90,000 from 1989. Mr. Groen mentioned the fact that the City
received a Certificate of Achievement in Reporting for the 1989 Audit
and hopes to receive another certificate for 1990. He indicated that
this is a great achievement and hopes it will help upgrade the City's
bond rating. Gary Groen reviewed the entire Audit and discussion was
held on many sections of the audit including interest income, gravel
tax, special revenue funds, equipment reserve, debt service funds, and
project deficits.
The Council discussed in more detail the funding of equipment and
fixtures for a future city hall.
It was the consensus of the City Council to transfer $150,000 from
the Equipment Capital Outlay Reserve Fund to the City Hall Reserve
Fund balance to be used as undesignated funds for furniture and
fixtures for the future city hall.
Gary Groen concluded by stating that Elk River had a good year in 1990
but that the City should continue its efforts in raising the Reserve
Fund.
COUNCILMEMBER HOLMGREN MOVED TO ACCEPT THE 1990 CITY
PRESENTED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
CARRIED 4-0.
AUDIT AS
THE MOT ION
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The Council reviewed the 1990 Fire Relief report. Lori Johnson
indicated that the Fire Department reviewed the report at its monthly
meeting last Thursday. She further noted that the Fire Relief Board
will meet on June 11 to discuss next year's benefit amount per year of
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City Council Minutes
June 3, 1991
Page 7
service.. After the Fire Relief Board and the fire departments vote on
the benefit amount, it will be presented to the City Council.
In reviewing the fire relief audit, the Council expressed concern over
the increase in the unfunded accrued liability. There was discussion
on whether it was appropriate to have an unfunded liability of this
size. There was also discussion regarding the Relief Associations
investments, in specific, the mutual funds and limited partnership.
The Finance Director stated that this had been brought to the attention
of the Relief Association after the 1989 audit and changes have been
made in the Association's investment policy to address this issue.
Because of concerns over these issues, the Council indicated that it
could not support an increase in the benefit amount at this time. The
Council acknowledged the efforts of the fire department and indicated
further discussion on this issue would take place when the Fire Relief
Board presents its recommendation to the Council in July.
The City Administrator commented on the Finance Director's and Finance
Department's excellent performance during the year and in the efficient
preparation of the City Audit.
8. Check Register
COUNCILMEMBER DIETZ MOVED TO APPROVE
COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
THE TWO CHECK REG I STERS .
THE MOTION CARRIED 4-0.
COUNCILMEMBER HOLMGREN MOVED TO CALL A RECESS OF THE REGULAR CITY
COUNCIL MEETING AT 10:30 P.M. TO HOLD A CLOSED SESSION OF THE COUNCIL
FOR THE PURPOSES OF DISCUSSION ON POLICE UNION MEDIATIONS.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
The Council recessed at 10:30 p.m. and reconvened at 11:14 p.m.
10. Adjournment
COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE REGULAR SESSION OF THE ELK
RIVER CITY COUNCIL AT 11: 15 P.M. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 4-0.
The Meeting of the Elk River City Council adjourned at 11: 15 p.m.
Respectfully submitted,
S()/YlCC{({ .
Sandra Thackeray
City Clerk