07-10-1989 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL CONFERENCE ROOM
MONDAY, JULY 10, 1989
MEMBERS PRESENT: Mayor Tra11e, Councilmembers Holmgren. Kropuenske.
Schuldt. and Dobe1
MEMBERS ABSENT: None
STAFF PRESENT: Lori Johnson. Finance Director; Stephen Rohlf.
Building and Zoning Administrator; and Tom Zerwas.
Police Chief
1. 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 Tra11e.
2. Consider the 7/10/89 City Council Agenda
Under Other Business, Mayor Tra11e requested that a resolution opposing
changes in the gambling law be added. Counci1member Schuldt requested
the Personnel Coordinator be added under Other Business. The Finance
Director requested approval of payment for a bill to the Federal Signal
Corporation for a civil defense siren and a resolution approving the
Sale of a Loan to Community Reinvestment Fund also be added.
COUNCILMEMBER DOBEL MOVED TO APPROVE THE 7/10/89 CITY COUNCIL AGENDA AS
AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED
5-0.
3.1. Consider the 6/19/89 City Council Minutes
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 6/19/89 CITY COUNCIL MINUTES.
COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRED 5-0.
3.2. Consider the 6/22/89 Joint City Council and Fire Department Minutes
Mayor
Chief
Tra11e requested that the motion regarding the Full Time Paid Fire
Selection Committee be changed to read "majority" rather than
unanimous.
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE 6/22/89 JOINT CITY COUNCIL AND
FIRE DEPARTMENT MINUTES AS AMENDED. COUNCILMEMBER KROPUENSKE SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
3.3. Consider 6/26/89 City Council Minutes
Mayor Tra11e noted a spelling error on Mr. Soltis' name.
COUNCILMEMBER DOBEL MOVED TO APPROVE THE 6/26/89 CITY COUNCIL MINUTES.
COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-0-1.
Counci1member Schuldt abstained due to his absence at that meeting.
City Council Minutes
July 10. 1989
Open Mike
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4.
Stephen Rohlf. Building and Zoning Administrator. and Gary Santwire were
present to discuss the Barrington Place PUD and the uses that were
allowed within the PUD. Steve Rohlf distributed a memo giving staff
interpretations for the PUD Agreement. Mr. Gary Santwire also explained
the situations and stated that he was in agreement with the Building and
Zoning Administrator's memo. The City Council also concurred that the
uses in the PUD should change to meet the current ordinance. Mayor
Tra11e also stated that all PUD's should be similar and not each have a
separate addendum attached with its own set of rules. Councilmember
Kropuenske also stated that it was logical to have the PUD's concur with
current day ordinances. The Council also agreed that conditional uses
would be required to go through the conditional use process to be allowed
in a PUD.
COUNCILMBMBER KROPUENSKE MOVED TO APPROVE THE STAFF INTERPRETATION AS SET
OUT IN THE JULY 10. 1989. MEMO FROM THE BUILDING AND ZONING ADMINISTRATOR
AND THAT ALL CURRENT PUD · S WITH EXCLUSION OF BARRINGTON SQUARE BE
ADDRESSED IN THIS SAME MANNER. COUNCILMEMBER HOLMGREN SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
5.
Hillside Park
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Mayor Tra11e stated that Mr. Ronald Black. representing George Carlson.
requested authorization to purchase .38 acres of Hillside Park due to a
building owned by the Carlson's being inadvertently placed on City park
property. Because it was a sale of city property. public notification
was required.
Mayor Tra11e opened the meeting for public comment. No one spoke for or
against the sale.
COUNCILMEMBER DOBEL MOVED TO SELL .38 ACRES TO GEORGE CARLSON FOR $380.00
BY QUIT CLAIM DEED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
6. Consider Ordinance to Increase the City's Landfill Fee
Mayor Tra11e discussed legislation passed allowing the City to increase
the Landfill tax from $.35 to $1.00 per cubic yard.
Counci1member Schuldt questioned Chris Kreger of the Elk River Landfill
as to whether or not the garbage haulers would be paying for this
increase. Mr. Kreger stated that they would.
Mayor Tra1le questioned Mr. Kreger as to what percent of the trash in the
Landfill is generated from Elk River. Mr. Kreger stated the amount is
minute.
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City Council Minutes
July 10. 1989
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Mr. Kreger then suggested the City determine the need and use for the tax
before increasing the fee. Councilmember Kropuenske stated that the
funds were needed for street replacement due to the damage caused by the
garbage trucks. Mr. Kreger stated that the County is not increasing the
Landfill Fee until September 1 and requested that the City do the same so
that he would have adequate time to notify the garbage haulers. Mayor
Tralle questioned where the funds go. Lori Johnson. Finance Director.
responded that currently $.10 of the fee is credited to the Street
Improvement Reserve Fund and the remaining $.25 goes to the Landfill
Fund. Mayor Tralle further stated that he would like to see the extra
$.65 go into a separate fund and possibly be used for recycling.
Mr. Kreger then questioned what the conversion ratio would be from weight
to cubic yards. Steve Rohlf. Building and Zoning Administrator stated
that he could offer a conversion formula at the next Council meeting.
Mayor Tralle suggested that the item be tabled until staff could research
the weight versus cubic yard issue. the effective date. and the ordinance
language regarding the funds going into the General Fund.
COUNCILMEMBER HOLMGREN MOVED TO TABLE THIS ITEM UNI'IL STAFF RESOLVES THE
QUESTIONS ABOUT THE FUNDS. THE EFFECTIVE DATE. AND THE WEIGHT VERSUS
CUBIC YARD MEASUREMENT. COUNCILMEMBER KROPUENSKE SECONDED THE MO'l'ION.
THE MOTION CARRIED 5-0.
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Consider Employee Group Health Insurance
Mayor Tralle briefly stated that the City is considering changing
insurance carriers. Finance Director. Lori Johnson. further stated that
due to a 35% increase in premiums with our current carrier. Blue Cross
and Blue Shield. the City had bid out group health insurance and had
received seven proposals. She further noted that the staff was
recommending the Physicians Health Plan (PHP) proposal be accepted as
PHP's policy is very similar to that of Blue Cross and Blue Shield. but
at a much lower premium. She then introduced Mr. Rick Nelson of PHP and
Mr. Barry Rosenberg of Allied Group Insurance who had been working with
the City on the group health insurance proposals.
Mr. Rosenberg went over the pluses and minuses of the various policies
and concurred that PHP was the best option for the City at this time.
Mr. Nelson of PHP further explained the PHP plan and noted that their
brochure had contained inaccurate information regarding the co-pay for
prescriptions. That amount should be $7.00 and not $5.50 as stated in
their bid document.
Councilmember Schuldt stated that the County has PHP and they have had no
problems with PHP in this area.
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Mayor Tralle questioned the differences between the two proposals
received from Blue Cross and Blue Shield. Mr. Rosenberg explained that
the only difference was the co-pay amount and the provider network.
The Flexible Benefit Plan was then discussed. Lori Johnson explained the
positives of employees having a Flexible Benefit Plan and that it would
enable the City to keep its insurance costs within reason allowing the
employees to tailor an insurance package to their needs.
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City Council Minutes
July 10. 1989
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Tom Zerwas. Police Chief. was present to express his desire for such a
plan. He also stated that all of his employees are in favor of the plan
and would like to see it implemented.
COUNCILMBMBER HOLMGREN MOVED TO APPROVE THE PHP PLAN EFFECTIVE AUGUST 1.
1989. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8. Other Business
8.1. Approve Payment of Civil Defense Siren
Lori Johnson. Finance Director. requested approval of a siren to Federal
Signal Corporation in the amount of $8.240.30. Councilmember Schuldt
questioned whether this had been approved previously. Ms. Johnson stated
that the purchase was approved at the May 10. 1989. City Council meeting.
COUNCILMlMBER HOLMGREN MOVED TO APPROVE THE PAYMENT OF THE CIVIL DEFENSE
SIREN TO FEDERAL SIGNAL CORPORATION IN THE AMOUNT OF $8.240.30.
COUNCILMlMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8.2. Discussion on Legislature Making Changes on Gambling Law
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Mayor Tralle stated that the legislature is considering making changes in
the gambling law. He stated this would have an adverse effect on the
City and other organizations that benefit greatly from the contributions
from organizations who collect revenues from gambling.
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE RESOLUTION 89-46. A RESOLUTION
OPPOSING CHANGES IN THE CHARITABLE GAMBLING LAWS. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8.3. Discussion of Personnel Coordinator
Councilmember Schuldt
questioned whether or
expressed his concern
consultant.
stated his
not the
over the
concern
position
method
regarding this position and
was necessary. He further
of selecting this employee or
There was discussion regarding the advertisement for the Personnel
Coordinator. Councilmember Schuldt felt the advertisement should have
been in the Star and Tribune and League of Minnesota Cities magazine.
Councilmember Kropuenske pointed out that advertisement placed in the Elk
River Star News met all legal requirements.
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There was then discussion regarding a Personnel Consultant versus a
contracted employee. Councilmembers Schuldt and Holmgren felt a
consultant should be explored. Councilmember Dobel concurred.
Councilmember Kropuenske felt a consultant would be too expensive and was
more comfortable with a one year contracted employee. Councilmember
Dobel suggested that the advertisement for a contracted employee be
placed in the Star and Tribune for two Sunday's and that the deadline for
applications be 5:00. July 28. 1989.
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City Council Minutes
July 10. 1989
Mayor Tra11e stressed that staff was acting at the direction of the City
Council and that it was unfortunate that Counci1member Schuldt had not
been able to attend the meeting on this discussion and appreciated him
bringing it up. He also requested that the Finance Director draft a
Request for Proposal for Personnel Consultant and send those requests to
consulting firms requesting their rates.
COUNCILMEMBER HOLMGREN MOVED TO ADVERT I SE FOR A CONTRACTED PERSONNEL
CONSULTANT IN THE MINNEAPOLIS STAR AND TRIBUNE FOR TWO WEEKS USING THE
SAME AD AS PRINTED IN THE ELK RIVER STAR NEWS WITH APPLICATIONS TO CLOSE
AT 5:00 P.M. JULY 28. 1989. AND THAT STAFF DRAFT A REQUEST FOR PROPOSALS
FOR A PERSONNEL CONSULTANT AND SEND THAT REQUEST TO AT LEAST TWO OR MORE
CONSULTANTS IN THE PERSONNEL AREA TO PERFORM THE PROJECTS OUTLINED IN THE
JUNE 19. 1989. CITY ADMINISTRATOR'S MEMO. COUNCILMEMBER DOBEL SECONDED
'!'HE MOTION. THE MOTION CARRIED 5-0.
8.4. Sale of Loan to the Community Reinvestment Fund
Finance Director. Lori Johnson. stated that Community Reinvestment Fund.
a Corporation interested in purchasing the A11too1 Loan. is requesting
that a resolution be passed authorizing the Economic Development
Coordinator to sign the Qualified Seller Agreement between Community
Reinvestment Fund and the City of Elk River. She further stated that
this resolution does not bind the City to authorizing that loan. but
merely authorizes Dick Fursman. Economic Development Coordinator. to sign
the agreement. Mayor Tra11e requested that the issue return to the
Council before the Economic Development Coordinator signs any documents.
COUNCILMEMBER DOBEL MOVED TO APPROVE RESOLUTION 89-47, A RESOLUTION
APPROVING THE SALE OF LOAN TO COMMUNITY REINVES'l'MENT FUND. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
9. Adjournment
There being no further business. COUNCILMEMBER HOLMGREN MOVED TO ADJOURN
THE MEETING OF '!'HE ELK RIVER CITY COUNCIL. COUNCILMEMBER DOBEL SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
The meeting of the Elk River City Council adjourned at 9:00 p.m.
Respectfully submitted.
Lori Johnson
Finance Director