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09-25-1989 CC MIN e e e MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, SEPTEMBER 25, 1989 MEMBERS PRESENT: Mayor Tralle; Councilmembers Schuldt; Holmgren; Kropuenske; and Dobel MEMBERS ABSENT: None STAFF PRESENT: Lori Johnson, Finance Director; Gary Groen, City Auditor; Russ Anderson, Fire Chief; Dan Greene, City Insurance Agent; Jill Nystrom, Fire Relief President; Gus Welter, Relief Association Consultant; and Dave McGillvray, Bond Consultant 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. 2. Consider 9/25/89 City Council A~enda Councilmember Kropuenske requested to be added to the agenda under 12.1 to update the Council on the Citizen's League Community Center. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 9/25/89 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider 9/18/89 City Council Minutes COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 9/18/89 CITY COUNCIL MINUTES. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. ODen Mike Peter Kimball addressed the Council regarding the interviews recently held for Planning Consultants. He stated that the review committee selected by the Council had met and interviewed two candidates out of seven and were ready to present a recommendation to the City Council. Mr. Kimball stated that the committee made a unanimous decision to recommend the firm of BRW as the City's Planning Consultant. He stated that the other firm interviewed was the Hoisington Group. Mr. Kimball reviewed the strong and weak points of both firms and stated that the main reason for the decision to hire BRW is that they appeared to be able to offer more services. He indicated that BRW was a large firm and was known nationwide, whereas the Hoisington Group was a two person firm. The Committee felt that the Hoisington Group would be able to offer more advice in landscaping, design planning and site planning and the City is looking for more than this type of planning. He stated that the City City Council Minutes September 25, 1989 Page 2 e is looking for a planner that will help plan for the future. Mr. Kimball indicated that although BRW was more expensive than the Hoisington Group, the Committee felt that they would be less expensive in the long term as they have more in-house capabilities than Hoisington. Mayor Tralle commented on the way the interviews were held. He stated that the Council elected 2 staff representatives, 2 Council representatives, 2 Planning Commission representatives, and the City Attorney to interview the Planning groups. He stated that this method of interviewing worked out well as there were many opinions and ideas represented. Councilmember Kropuenske thanked Planning Commission representatives Rita Johnson and Peter Kimball who worked on the interviews. He indicated that a large amount of time went into the interviews and that he appreciated the time spent by the volunteers. COUNCILMEMBER KROPUENSKE MOVED TO ACCEPT THE PROPOSAL FROM BRW. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5. Joint Fire Relief Association/City Council Meeting e Jim Nystrom, President of the Fire Relief Association, stated that he had invited Gus Welter, a consultant for the Fire Relief Association, to present some history and philosophy on relief associations. Gary Groen, City Auditor, was also present to discuss topics of concern to the City Staff and Council. Jim Nystrom discussed the contribution received from the City and indicated that they are requesting the City to tie its yearly contribution to a percentage of the State Aid funds. He indicated that they would like the Council to consider this as a permanent budget item. Mayor Tralle questioned the way in which the firemen would receive their pension funds. Mr. Gus Welter stated that he would suggest a lump sum payment instead of the suggested monthly payment because the overhead cost of a monthly annuity plan is very high. e The Council questioned whether the Relief Association had enough funds to pay upcoming retirees and also questioned from where the Relief Association received their money. Mr. Gus Welter stated that they receive their money froll the State; a 2% figure based on a calculation of assessed value and population. Jim Nystrom stated that they have been conservative with the investment of the money and that they do have enough to pay upcoming retirees. He indicated, however, that it is hard to plan for the future. This is one of the reasons they are asking for the Council to pay a specific amount each year so they have sOlie lIeans of planning. He indicated that they have been requesting the Council plan to pay 50% of the 2% amount received froll the State the previous year. City Council Minutes September 25, 1989 Page 3 e City Auditor Gary Groen indicated that the City is ultimately responsible for the cost and funding of the Relief Association. He further indicated that the main reason for the meetings is to develop a connection between the Relief Association and the City Council. He further stated that it is evident that significant progress has been made. Discussion was held regarding the amount of retirement received. It was indicated that the current aaount is up to $1,550 and that this amount must be approved by the City Council. COUNCILMEMBER OOBEt MOVED TO APPROVE THE RETIREMENT BENEFIT IN AN AMOUNT OF $1,550 PER YEAR OF SERVICE EFFECTIVE JANUARY 1, 1990. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. Discussion was held regarding Ex Officio Members. Dan Greene stated that the Mayor and Finance Director have always been ex officio members but have not had the voting privileges. Mr. Welter stated that this has been a State requirement for some time. e Discussion was held regarding the open meeting law requirement. Jim Nystrom stated that meetings are not held regularly. Mr. Welter indicated that if regular meetings are not held with time and days listed in the bylaws, then the meeting dates should be posted. He suggested that regular meetings for the board be established. Mr. Dan Greene stated that the City and State have always been notified of changes in benefits. The Council discussed the City's contribution to the Fire Relief Association. Russ Anderson, Fire Chief, stated that he would like to see the City's contribution amount not included in the general fund budget. He stated he does not want to feel that this amount should be cut if cuts in the budget are necessary. Mayor Tralle indicated that he is hesitant to tie the City's contribution into the 50% amount of the State's 2% aid because there are too many unknown factors that could drastically change the amount of aid the City receives, especially concerning population. He stated that he does support the City's contribution to the Relief Association but does not want to be tied into a percentage. Councilmember Kropuenske indicated that he would be comfortable paying 50% of the 2% for 1990 but would not want to commit this formula again until the results of the census are received. It was the consensus of the City Council to approve payment to the Fire Relief Association in the amount of 50% of the 2% Iloney froll the State for 1990 which will increase the City's contribution $1,150 leaving a total contribution of $18,150. e The Council recessed for 10 minutes - 9:00 p.m. e e e City Council Minutes September 25, 1989 Page 4 6. Consider Levy for EDA Lori Johnson, Finance Director, stated that the EDA has just requested that the City certify a tax levy of .01813 percent of the taxable market value for economic development purposes. She indicated that this amount will be approximately $48,000. OOUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 89-55, A RESOLUTION STATING THE PROPOSED AMOUNT OF LEVY FOR ECONOMIC DEVELOPMENT AUTHORITY PURPOSES. COUNCILMEMBER OOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Consider Levy for HRA Lori Johnson stated that the HRA has requested that the City certify a tax levy of .0081 percent, approximately $21,000 for housing and redevelopment purposes. COUNCILMEMBER SCHULDT MOVED TO ADOPT RESOLUTION 89-56, A RESOLUTION APPROVING THE HOUSING AND REDEVELOPMENT AUTHORITY 1990 TAX LEVY. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8. Consider General Tax Levy Lori Johnson stated that the proposed resolution authorizing the tax levy for the City is based on the 1988 tax law which gives the City more taxing authori ty than the 1989 vetoed law. She further stated that the total proposed 1990 levy is in the amount of $1,733,433 which is an approximate 9% increase. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 89-57, A RESOLUTION AUTHORIZING THE PROPOSED TAX LEVY. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 9. Consider Resolutions Prescribin~ Form and Settin~ Sale Date for Fire Referendum and TIF Bonds Lori Johnson stated that the City is preparing to sell $890,000 of bonds for the fire equipment authorized by the referendum passed in February and also for the TIF district for Mork Clinic. The fire bond will be for $480,000 and the TIF bond will be for $410,000. Dave MacGillivray, the City's financial consultant, indicated that the $480,000 bond for the fire department is a 12 year bond which will be paid off entirely by property tax levies. He indicated that the Mork Clinic bond is a taxable bond and that there will be a development agreement and certain guarantees of debt service by Mork Clinic prior to the selling of the bond. Mr. Macgillivray further indicated that the bonds will be sold on October 23, 1989. City Council Minutes September 25, 1989 Page 5 e COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 89-58, A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $480,000 GENERAL OBLIGATION FIRE EQUIPMENT BONDS, SERIES 1989A. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER OOBEL MOVED TO ADOPT RESOLUTION 89-59, A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $410,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1989B. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. Mr. MacGillivray briefly updated the Council on the City's bond rating, our position in coaparison to other comparable cities, and key factors which the rating agency, Moody's, consideres when rating the City's bonds. Insurance Update from Dan Greene e Dan Greene, the City's insurance representative, distributed the insurance renewal bids for the City. He reviewed the City's current policy with the League of Minnesota Cities. The handout included the League's 1989-90 insurance quotes and also quotes from Penco. Mr. Greene reviewed the difference in the rates between the League and Penco. He indicated that Pen co was higher than the League of Minnesota Cities. He also stated that the main difference between the League and Penco is that Penco will not provide liability for the swimming beach. Mr. Greene indicated that he would recommend insurance coverage from the League because they have been consistent and reliable and also because Penco's rates are higher. COUNCILMEMBER HOLMGREN MOVED TO ACCEPT THE INSURANCE BID FROM THE LEAGUE OF MINNESOTA CITIES. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 10. Tax Forfeit Property Mayor Tralle indicated that there are six parcels of land that are going tax forfeit and staff is recommending that the City look at the possibility of purchasing five of the six parcels for future use. e Finance Director, Lori Johnson, stated that the the City has the option to remove these parcels from the sale list. She stated that if the City chose to do this, the parcels w04~d then remain available for City purchase for one year and at th~ time the City could request that they again be offered for sale. Ms. Johnson stated that the properties would sell for the appraised value as determined by the County and added on to that would be any special assessments due on the parcel. Ms. Johnson stated that Staff has reviewed the City Council Minutes September 25, 1989 Page 6 e parcels and is recommending that the City not consider purchasing the parcel in Ridgewood First Addition as it is a buildable site and the City would have no use for it, but recommends considering purchasing the other five parcels. Mayor Tralle suggested that the City not purchase the properties right away but that they pull them off of the list. He stated this would give the City a year to decide if they want to purchase the lots. He also indicated that this would give the Park Board time to review the parcels. COUNCILMEMBER HOLMGREN MOVED TO CONSIDER PURCHASING THE FOLLOWING TAX FORFEIT PROPERTIES: 1. RIDGEWOOD EAST 2ND ADDITION, LOT 4, BLOCK 1 2. BARRINGTON PLACE OUTLOT B 3. BARRINGTON PLACE, LOT 1, BLOCK 4 4. BARRINGTON PLACE LOT 3, BLOCK 4 5. N 158' OF S 533" OF THAT PART OF THE NW 1/4 OF THE NE 1/4 E OF HWY 169 COUNCILMEMBER OOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 11. Aoolication for Deferment of Soecial Assessments e Finance Director Lori Johnson indicated that Mr. Perlain Oscarson has applied for a deferment of his special assessment for the 1988 Main Street Improvement Project. She indicated that due to an error in the original assessment schedule for Mr. Oscarson's property, he did not receive the necessary information to defer this assessment last year. COUNCILMEMBER OOBEL MOVED TO ADOPT RESOLUTION 89-60 A RESOLUTION APPROVING DEFERRED SPECIAL ASSESSMENT FOR THE 1988 MAIN STREET PROJECT FOR PROPERTY OWNED BY MR. PERLAIN OSCARSON. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 12. Other Business Lori Johnson stated that the Ladies Auxiliary of the American Legion has approached the City regarding the placement of an ad in their "Home Medicine Remedy Book." She indicated that the proceeds will go to charitable organizations. After discussion regarding this matter, it was the consensus of the Ci ty Council that due to the Hmi ted aIIount of dollars available in the City budget for advertising, is would be more effective for the City to spend the dollars on economic development. It was also the consensus of the Council that the Liquor Store consider placing an ad in the magazine. e e e e City Council Minutes September 25, 1989 Page 7 12.1. Community Center UDdate - Councilmember KroDuenske Councilmember Kropuenske indicated that he attended a meeting regarding a CoaEUnity Center. He indicated that the meeting was well attended and that many senior citizens were present. Councilmember Kropuenske stated that he informed the audience that the City is not deaf to the needs of a community center. Mayor Tralle indicated that he has a letter from John Kuester of the 2001 Committee with recommendations on how to set up a task force or advisory coamittee to look at public space needs. He suggested that all stakeholders have a representative on the task force. The Council discussed this theory and felt that it would be appropriate to have a representative from the School District, Council, Senior Citizens, Community Theatre, and any other organization that would be using the Center. It was further indicated that mellbers of the public who would be representatives on the task force should have no involvement in any of the representing organizations. There being no further business, COUNCILMEMBER KROPUENSKE MOVED TO ADJOURN THE MEETING. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River City Council adjourned at 10:20 p.m. ~ / Sandra Thackeray City Clerk