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11-13-1989 CC MIN e e e MINUTES OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 13, 1989 Members Present: Mayor Tralle, Councilmembers Schuldt, Holmgren, and Dobel. Councilmember Kropuenske arrived at 7:30 p.m. Members Absent: None Staff Present: Pat Klaers, City Administrator; Lori Johnson, Finance Director; Sandy Thackeray, City Clerk 1. Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order by Mayor Tralle at 7:00 p.m. 2. Consider 11/13/89 City Council A~enda COUNCILMEMBER SCHULDT MOVED TO APPROVE THE 11/13/89 CITY COUNCIL AGENDA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider 11/6/89 City Council Minutes COUNCILMEMBER DOBEL MOVED TO APPROVE THE 11/6/89 MINUTES. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. CARRIED 4-0. CITY COUNCIL THE MOTION 4. Open Mike No one appeared before the Council for this item. 5. Sherburne Communications Mayor Tralle indicated that in 1984 the City Council granted a use variance to the Masonic Lodge which allowed certain types of uses in the Lodge with the stipulation that no retail businesses be allowed. Mayor Tralle stated that it has recently come to the City's attention that Sherburne Communications is operating out of the Lodge and that this may be a violation to the agreement made in 1984. Mayor Tralle indicated that Council must determine what type of business Sherburne Communication is considered. He stated that if it is determined to be retail then it should not be allowed to operate in the Lodge. Mr. Doug Pitzele, owner of Sherburne Communications, stated that his business is not a retail business. He mainly works on contract to municipalities and most of the work is done off of the premises. He indicated his office consists of a telephone and computer and is approximately 250 square feet in size. City Council Minutes November 13, 1989 Page 2 e Mayor Tralle questioned whether Mr. Pitzele would sell merchandise to someone who would walk into the office. Mr. Pitzele stated that it is not a showroom but they would sell to someone if requested. He stated that the actual sales are done by bids. Councilmember Schuldt questioned Mr. Pitzele about the sign which had the connotation of advertising radios and TVs. Mr. Pitzele stated that he used to be in that business but has gotten out of it. He stated that he no longer needs the sign and would be willing to take it down. He stated that he is, in fact, trying to sell his business and retire. Councilmember Holmgren questioned the percentage of retail business that takes place at Sherburne Communications. Mr. Pi tzele stated that a very small percentage was actually retail. Mayor Tralle stated that the main reason for not allowing retail business at the Lodge was because of the traffic caused by retail businesses, and further stated that traffic was not an issue with Mr. Pitzele's business. e Councilmember Dobel indicated that he agreed with Mayor Tralle in that the issue in 1984 was traffic and that Mr. Pitzele's business was small and would not generate a lot of traffic. Councilmember Dobel also indicated that Mr. Pitzele is intending to get out of the business as soon as possible and at that time there will no longer be an issue, therefore, he indicated he would be in favor of allowing Sherburne Communications to remain. Councilmember Schuldt stated he did not agree. He indicated that he remembers the concerns of the neighbors in 1984 which were very strong in requesting no retail. Councilmember Schuldt further stated that if Mr. Pitzele sells the business someone else may buy it and change the operation which could possibly create more traffic. Councilmember Holmgren stated that he would have no problem allowing the business to remain if it is consistent with a staff recommendation that the business is not a retail operation. Pat Klaers, City Administrator, indicated that staff's latest interpretation after visiting the business, was that it was not an actual retail operation. COUNCILMEMBER HOLMGREN MOVED TO DECLARE SHERBURNE COMMUNICATIONS AS A BUSINESS OFFICE AND TO ALLOW THE BUSINESS TO REMAIN IN OPERATION AT THE LODGE AND FURTHER THAT IF THERE IS AN EXPANSION OF THE PRESENT OPERATION THAT THE CITY BE NOTIFIED AND THAT THE EXPANSION BE REVIEWED BY THE CITY COUNCIL. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 3-1. COUNCILMEMBER SCHULDT OPPOSED. e Councilmember Kropuenske arrived at this time. City Council Minutes November 13, 1989 Page 3 e Chip Martin stated that Mr. Pi tzele was storing parts and miscellaneous junk in one of his garages. Mr. Martin stated that he has requested Mr. Pitzele to remove his items from the garage, but Mr. Pitzele refuses to do so. Mr. Martin indicated he has informed Mr. Pi tzele that he intends to remodel the garage but Mr. Pi tzele still refused to remove his possessions. The Council suggested that Mr. Martin seek advice from his attorney. 6. Bud~et Workshop Session Mayor Tralle noted that there is a budget gap of $70,150 in the Ci ty' s General Fund Budget. The Council discussed possible ways of closing the budget gap. The City Administrator suggested that $35,000 could be eliminated by using reserves. The City Council discussed methods of closing the remaining $35,150 budget gap. Councilmember Holmgren questioned what the implementation of flex benefits would do to the budget. The City Administrator stated that it would cost the City $30,000 for an entire year, which is already included in the budget numbers. e Councilmember Kropuenske stated he would be in favor of putting $15,000 into Council Contingency which would allow the Council to study the flex benefits program and then possibly implement it in July. He further indicated that he would like to take $35,000 out of reserves and get the remaining $20,000 from departmental budgets. The Council discussed other budget item requests. The Arts Council request of $10,000 was discussed. Councilmember Schuldt stated that he does not agree with the theory of giving the Arts Council $10,000 because then the City should consider doing the same for other nonprofi t organizations in need of funds. After further discussion regarding this matter, it was the consensus of the Council that the Ci ty would make a "dollar for dollar" contribution for all local monies collected up to $10,000. Councilmember Schuldt did not agree with this approach either. It was the Council consensus that the 1990 general fund budget be balanced as follows: $35,000 from reserves, $15,000 cut from flex benefits as the program will not be in place until mid year 1990 at the earliest (with the other $15,000 to be place into Council contingency) and the remaining deficit ($20,150) to be cut from individual departmental budgets. e The Council discussed the requirement for the City to hold a public hearing on the City general fund budget. The public hearing notice was discussed by the Council. Lori Johnson, Finance Director, indicated that the public hearing notice is dictated by the State and that it may be misleading to the general public. Mayor Tralle stated City Council Minutes November 13, 1989 Page 4 e that the notice indicates that property levy will increase 19% and felt that most citizens will take this to mean individual property taxes. He suggested running a separate notice underneath the notice required by the state which would provide an explanation to the public. COUNCILMEMBER SCHULDT MOVED TO CALL A PUBLIC HEARING TO DISCUSS THE GENERAL FUND BUDGET, ON DECEMBER 11, 1989, AT 8:00 P.M. AT THE ELK RIVER PUBLIC LIBRARY, AND IF IT IS NECESSARY TO CONTINUE THE PUBLIC HEARING, THAT THE CONTINUED DATE BE DECEMBER 13, 1989, AT THE ELK RIVER PUBLIC LIBRARY AT 7:00 P.M. COUNCILMEMBER HOLMGREN SE(,()~DED THE MOTION. THE MOTION CARRIED 5-0. The Council discussed the 1990 pay plan. The City Administrator explained that each employee would either move up one step or move to the top of the plan, whichever is less, and if they are already at the top of their pay plan then they would receive a 4% cost of living increase. COUNCILMEMBER DOBEL MOVED TO ADOPT. RESOLUTION 89-68 A RESOLUTION ADOPTING THE 1990 PAY PLAN FOR NONORGANIZED EMPLOYEES. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. e COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 89-69, A RESOLUTION AUTHORIZING THE PROPOSED TAX LEVY FOR CALENDAR YEAR 1990 OF $1,864,535. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER HOLMGREN MOVED TO INCREASE THE MILEAGE PAY FROM .20 PER MILE TO .24 PER MILE. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. Tom Zerwas, Police Chief, indicated that he has received a request from his officers regarding the implementation of a fitness program. Chief Zerwas explained that the police officers have been lifting weights at old City Hall. He stated that recently the officers have been using their own equipment and working out on their own time. Chief Zerwas stated that the officers are requesting funds in the amount of $1,040 to purchase additional equipment. e The City Council discussed the Fire Station addition and the fact that there is some unused space in the mezzanine of the addition and that this area could be used as a fitness room. The Council stated that they would like to combine a fitness room which could be used for all City employees so as not to duplicate their efforts. Chief Zerwas stated his concern regarding the size of the area and also that all police personnel have access to the room at all times. e e e City Council Minutes November 13, 1989 Page 5 COUNCILMEMBER DOBEL MOVED TO APPROVE THE REQUEST BY THE POLICE DEPARTMENT FOR THE EXPENDITURE OF $1,040 TO BE USED FOR THE PURCHASE OF WEIGHT EQUIPMENT AS THE START OF A WELLNESS PROGRAM. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Administrative Update The City Administrator stated that progress has been made on the Parks Master Plan. He stated that half of the plan is in rough draft form. The City Administrator indicated that November 24 and December 4 are both light Council agendas and questioned whether the Council would like to cancel the November 27 meeting. It was the consensus to cancel the November 27, 1989, City Council meeting. The City Administrator informed the Council that the public works building is on schedule and the the School will be moving in very soon. He stated that there will probably be an open house sometime in late November or early December. The City Administrator stated that the County Board discussed the idea of a Recycling Coordinator and the results were negative. He indicated that the Building and Zoning Administrator would update them at the next Council meeting. The City Administrator stated that staff is considering changing the office hours from 8:00 to 5:00 to 8:00 to 4:30. The City Administrator distributed a handout from the League of Minnesota Cities which listed metro city office hours showing that the majority of city offices were open from 8:00 to 4:30. He stated that the City rece i ves many more calls and walk- ins between 8: 00 and 8: 30 than between 4:30 and 5:00. COUNCILMEMBER HOLMGREN MOVED TO CHANGE THE CITY HALL OFFICE HOURS TO 8:00 A.M. TO 4:30 P.M. EFFECTIVE DECEMBER 4, 1989, FOR A THREE MONTH TRIAL PERIOD. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. Councilmember Holmgren stated that he would like the Council to consider increasing the salary range between the Mayor and Council because the time commitment for the Mayor is greater than that of a Councilmember. Councilmember Holmgren stated he would like to see this on a future agenda. e e e City Council Minutes November 13, 1989 Page 6 There being no further business COUNCILMEMBER DOBEL MOVED TO ADJOURN THE MEETING. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting adjourned at 9:40 p.m. S~d~~Y /h~~ City Clerk