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10-07-1991 CC MIN e MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 7, 1991 Members Present: Mayor Tralle, Councilmembers Dietz, Kropuenske, Schuldt and Holmgren Members Absent: None Staff Present: Pat Klaers, City Administrator; Terry Maurer, City Engineer; Lori Johnson, Finance Director; Sandra Thackeray, City Clerk 1. Call Meetin~ 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. 2. Consider 10/7/91 City Council A~enda e COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 10/7/91 CITY COUNCIL AGENDA. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider 9/30/91 City Council Minutes The following changes were made to the 9/30/91 Ci ty Council Minutes. Under Members Absent, it should be stated that Councilmember Holmgren was out of town due to business. It should also be stated on Page 3 that the name Joe Murdoch should be changed to Joe Berglove. COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE 9/30/91 CITY COUNCIL MINUTES AS CORRECTED. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.1. Presentation from Carol Erickson - Rivers of Hope Carol Erickson, Sandra Schroeder-Davis and Dawn Moyer were present representing the Rivers of Hope. The Rivers of Hope organization provides assistance to battered women. Carol Erickson explained that the operation is about a year old and that they are seeking funds to cover the hours needed for the staff. She indicated that at the present time, Sandra Schroeder-Davis is the paid staff person but she is also volunteering hours because of the number of people requesting serv ices from the organization. Sandra Schroeder-Davis explained a normal workday in the operation and Dawn Moyer reviewed the budget. She requested any kind of assistance the City could offer. e There were several high school students in the audience and Mayor Tral1e questioned the students as to whether the City should consider funding this type of program. After discussing the situation with the students and Council, Mayor Tralle thanked the representatives from the City Council Minutes October 7, 1991 Page 2 e Rivers of Hope and indicated that they would consider their request during the budget session. 5.1. Consider Bids for School Sewer and Water Pro.iect Terry Maurer indicated that bids have been received for the elementary school improvement project. Out of the thirteen bidders the low bid was from S. J. Louis Construction, Inc. at $486,344.50. Terry Maurer stated that the total project cost would come in at $622,520.96. Terry Maurer reviewed possible elements that could lower the project cost as outlined in his 10/7/91 memo. These elements included Nord sanitary sewer assessment, other sewer assessments, deleting the water loop around the school building and a Municipal Utilities contribution plus savings from street work duplication and other miscellaneous elements. After reviewing this list, he indicated that the project cost to be funded by the School District is estimated at $341,302.72. Dr. Flannery was present and indicated that the School's original estimate of the project was $309,000. He indicated that although the $341,000 is higher than anticipated, the School District still plans to go ahead with the project. e It was the consensus of the City Council to proceed with the project. Terry Maurer indicated that the bid would not be awarded until after the public hearing process. He suggested that the public hearing and the assessment hearing be held at the same time. It was the consensus of the Council that the low bid, of $486,344.50 from S.J. Louis, was acceptable. COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 91-55, A RESOLUTION RECEIVING THE FEASIBILITY REPORT AND ORDERING A PUBLIC HEARING ON THE IMPROVEMENT IN THE MATTER OF THE ELEMENTARY SCHOOL IMPROVEMENT OF 1991. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 91-56, A RESOLUTION DETERMINING ASSESSED COST OF IMPROVEMENT AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL IN THE MATTER OF ELEMENTARY SCHOOL IMPROVEMENTS OF 1991. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.2. Consider Pay Estimate for Fillmore Project COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE PAY ESTIMATE #1 TO BITUMINOUS CONSULTING AND CONTRACTING INCORPORATED IN THE AMOUNT OF $35,624.30 FOR THE FILLMORE STREET AND 173RD AVENUE IMPROVEMENTS. COUNCILMEMBER SCHULDT.SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 5.3. Fall En~ineerin~ Work for City Hall Project Terry Maurer requested approval to continue survey work on the new City Hall public improvement project and on the Main Street bridge City Council Minutes October 7, 1991 Page 3 e replacement project so that as much field work as possible can be accomplished before winter. COUNCILMEMBER KROPUENSKE MOVED TO AUTHORIZE THE CITY ENGINEER TO PROCEED WITH THE SURVEY WORK FOR THE PROJECTS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.4. Naples Update The City Administrator updated the Council on the Naples Street project. He indicated that the City is waiting for one more property owner to sign off on the easement in order to do the Naples Street project. He indicated that if this person does sign, the gravel street improvement project will begin this fall. 6.1. City Council Approval of City and EDA Public Facilities Lease Lori Johnson, Finance Director, indicated that the Economic Development Authority unanimously approved the Lease-Purchase Agreement at its September 9 meeting. She indicated that in order to remain on schedule for the sale of bonds for the City Hall and Police facility, the City Council must also approve the Lease-Purchase Agreement before the EDA can approve bids on the bond sale. e COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 91-57, A RESOLUTION APPROVING A LEASE-PURCHASE AGREEMENT BETWEEN THE CITY OF ELK RIVER AND ITS ECONOMIC DEVELOPMENT AUTHORITY AND MAKING AN IRREVOCABLE ALLOCATION FOR PURPOSES OF THE SMALL ISSUER EXCEPTION TO REBATE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.2. Northbound Request for New Cash Rellisters Lori Johnson indicated that the Liquor Store Manager is requesting the purchase of new registers and an office computer for the Liquor Store. It was the consensus of the Council to delay this item until the Liquor Store Manager is present. 6.3. Chamber Business Expo Sign Request Pat Klaers, City Administrator, indicated that the Chamber of Commerce is requesting to obtain Council approval for the placement of a 4 x 8 foot plywood sign, advertising the Business Expo, to be located adjacent to the present Community Theater sign in Jackson Square. COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE CHAMBER SIGN REQUEST. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Check Re~ister e COUNCILMEMBER SCHULDT MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. The Council recessed at 8:30 p.m. and reconvened at 8:45 p.m. City Council Minutes October 7, 1991 Page 4 e 8. Other Business There was no other business. 9. City Administrator Update The City Administrator indicated that there is a need for the City Council to meet to discuss the current status of the City Hall/Police Station project. COUNCILMEMBER HOLMGREN MOVED TO CALL A SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL TO BE HELD ON OCTOBER 14, 1991 AT 7:00 P.M AT THE ELK RIVER CITY HALL FOR THE PURPOSE OF DISCUSSING THE CITY HALL/POLICE STATION STATUS. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. The City Administrator informed the Council that the Fire Department will be advertising for new firefighters. e The City Administrator informed the Council that the City's Attorney, Larkin, Hoffman, Daly, Lindgren, Ltd., represent Barton Sand & Gravel at times in other communities. He indicated that Larkin, Hoffman will be representing the City of Elk River regarding issues related to Barton Sand & Gravel operations in the Ci ty of Elk River. The Ci ty Council had no problems with this situation. 10. 1992 Budget Worksession Pat Klaers, City Administrator, indicated that in August, 1991, it was estimated that the 1991 revenues would be approximately $120,000 short. He stated this was due mainly to the loss of about $90,000 in Local Government Aid, decreased activity in the Building and Zoning Department, the City not pursuing an attorney for misdemeanor acti v i ties and the Ci ty not using as many reserves as planned. Today, in October, this 1991 revenue shortfall estimate has not changed. Also, in August, it was estimated that expenditures for 1991 would be under budget by about $120,000 which would create a balanced year-end statement. This excludes the use of the Council Contingency fund. This expenditure estimate for 1991 also has not changed since August. In August the Council reviewed a 1992 budget that showed a $154,700 budged gap between revenues and requested expendi tures. Since the August budget meeting, City staff has made $47,050 of net revenue increases. The City Administrator reviewed the 1992 revenue changes in detail with the City Council. The City Administrator further indicated that certain actions as outlined in his 10/2/91 memo will be necessary by the City Council in order to realize the revenue increases. e The Ci ty Administrator stated that since the August budget staff has made a $31,650 net decrease in the August expenditure amount. The City Council proceeded to review proposed adjustments in expenditures. meeting, approved the 1992 City Council Minutes October 7, 1991 Page 5 e Mayor Tralle suggested cutting $1,000 from the Planning Commission conference budget a.nd that Planning Commission conferences be limited to the State level. It was the consensus of the City Council to cut the Planning Commission conference budget line item by $1,000. It was noted that the 1992 Council Contingency fund could be used for any items excluded from the budget at this time, but approved by the Council at a later date in 1992. The City Council proceeded to review the 1992 budget gap. The City Administrator indicated that the present budget gap is $75,000, taking into consideration the revenue and expenditure changes which are anticipated to be accepted by the City Council. It was the consensus of the Council to add $5,000 to the General Fund, taking $2,500 from the NSP and $2,500 from the Landfill contributions. It was the consensus of the City Council to increase the Street Reserve Transfer for street maintenance and repair supplies by $11,850. It was the consensus of the City Council to delete the $10,000 Art Council contribution from the Mayor and City Council budget. It was further the consensus of the Council that if the Art Council matches the $10,000, the money would come from the Council Contingency Fund. e It was the consensus of the City Council to take $25,000 from the Undesignated Reserves and $23,150 from the Liquor Reserves to balance the budget. Discussion was held regarding the City's contribution toward the Rivers of Hope. Mayor Tralle indicated that the Rivers of Hope is in need of money based on the number of people that are being served by the organization. Councilmember Schuldt felt that the Rivers of Hope is no more deserving of governmental funds than other nonprofit organizations. He indicated he did not feel that this would be the best use for ta.x dollars. Councilmember Kropuenske indicated that abuse seems to be on the escalation and felt that someone must make a stand to contribute to these types of organizations. Councilmember Schuldt stated that if the City funds Rivers of Hope, it should be funding other organizations which are equally as important to the commun i ty . . COUNCILMEMBER HOLMGREN MOVED TO DONATE $5,000 TO THE RIVERS OF HOPE OUT OF THE 1991 COUNCIL CONTINGENCY BUDGET. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Schuldt opposed. e Fritz Dolejs, Liquor Store Manager, arrived at this time. Discussion was held regarding the request for purchase of new registers and a office computer for the Liquor Store. Mayor Tralle suggested that the Liquor Store consider upgrading the office computer that the Liquor Store is presently considering. He further suggested that the salesman contact him regarding this matter. City Council Minutes October 7, 1991 Page 6 e Lori Johnson updated the Council regarding the Truth in Taxation Law. She distributed a copy of the notice that will be published in the Elk River Star News, advertising the public hearing. It was noted that the City net tax levy which will be published shows a sligth decrease. The City Administrator reviewed the possible financing for City Capital Projects that are not related to the General Fund budget as outlined in his 10/3/91 memo. Community Education/Recreation Fields Discussion was held regarding the Community Education City recreation fields. The City Administrator suggested using 1991 and 1992 NSP funds, in the amount of $169,000 for this project. The City Council concurred. City Hall Site Purchase The City Administrator suggested that the City use the 1993-1995 NSP funds, of approximately $280,000, to fund the City Hall site purchase. He stated that if the Ci ty uses the NSP funds through 1995, future funding for. park and recreation projects must be very carefully considered. e It was the consensus of the City Council to use the 1993-1995 NSP funds to fund the City Hall site purchase. Woodland Trails Park The City Administrator indicated that there is a 3 acre site containing a home, located between the golf course and the Woodland Trails Park. The City Administrator questioned whether the Council felt it would be best for the City to pursue the purchase of this property. He indicated that the property is the access into the park, and that there would be a possibility that the golf course would be willing to purchase the property from the City when they had funds available. He further stated that the Park and Recreation Commission reviewed the issue and recommended that the City not pursue this land purchase. The Council felt it would be best for the City to pursue the purchase of this property. It was the consensus of the Council to have the City Administrator contact Mr. Nord and inform him that the City is interested in pursuing the purchase. Old City Hall Site e Discussion was held regarding the future of old City Hall site and the possibility of a municipal liquor store on the site. Councilmember Schuldt indicated that he is concerned with the traffic congestion at the site. Councilmember Kropuenske indicated that he is also concerned with the traffic on the corner and will not vote to put a liquor store or retai I operation on the corner because of the congestion it would cause. Mayor Tralle stated that he felt it would be best for the City City Council Minutes October 7, 1991 Page 7 e to hire a consultant to decide whether or not the City is ready for another municipal liquor store and to look at possible sites for a second municipal liquor store. It was the consensus of the City Council not to locate a municipal liquor store on the old City Hall site. COUNCILMEMBER KROPUENSKE MOVED TO AUTHORIZE THE CITY ADMINISTRATOR TO INVESTIGATE THE HIRING OF A CONSULTANT TO ANALYZE THE FEASIBILITY OF A WESTBOUND MUNICIPAL LIQUOR STORE AND A POSSIBLE LOCATION FOR THE LIQUOR STORE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Discussion was also held regarding the possibility of UPA purchasing the property from the City. Mayor Tralle suggested delaying this item until after the holidays. Industrial Park Land Discussion was held by the Council regarding the City's possible purchase of the Industrial Park. The City Administrator indicated that $210,000 would have to be financed for the purchase and the major concern would be recapturing the money. It was the consensus of the Ci ty Council to hold a special meeting regarding the Industrial Park purchase. e COUNCILMEMBER KROPUENSKE MOVED TO CALL A SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL ON OCTOBER 17, 1991 AT 6:30 P.M. FOR THE PURPOSE OF DISCUSSING THE INDUSTRIAL PARK LAND PURCHASE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Library Expansion Project The City Administrator informed the Council that Zack Johnson has been working with the Library Board in evaluating additional space needs. COUNCILMEMBER KROPUENSKE MOVED TO AUTHOR I ZE $5,600 TO BE SPENT FROM LIBRARY RESERVES FOR THE SERVICES OF EOS ARCHITECTURE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 11. Adjournment There being no further business, COUNCILMEMBER SCHULDT MOVED TO ADJOURN THE MEETING. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River City Council adjourned at 11:25 p.m. Respectfully submitted, . ~h~~~ City Clerk