10-07-1991 CC MIN
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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
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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.
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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
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October 7, 1991
Page 2
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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.
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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.
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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
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October 7, 1991
Page 3
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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.
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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
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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.
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October 7, 1991
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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.
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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.
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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
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October 7, 1991
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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.
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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.
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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.
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October 7, 1991
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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.
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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
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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
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October 7, 1991
Page 7
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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.
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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