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06-03-1991 CC MIN e e e 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 e 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 e 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. e 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 e 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. e 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. e 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 e 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. e 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. e 5.8. Board of Health Ordinance Amendment City Council Minutes June 3, 1991 Page 5 e 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 e 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. e 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 e 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 e 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 e 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 e e e 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