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05-09-1988 CC MIN e e e MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY. MAY 9. 1988 Members Present: Mayor Gunkel. Council Members Tralle. Dobel. Schuldt and Holmgren Members Absent: None Staff Present: Pat Klaers. City Administrator. Lori Johnson. Finance Director. and Gary Groen of Abdo. Abdo. Eick. Auditor City 1. Pursuant to due call and notice thereof. Mayor Gunkel called the meeting of the Elk River City Council to order at 7:00 p.m. 2. Consider 5/9/88 City Council Agenda The following items were added to the agenda: 7.1 - Tyler Street. 7.2 - Administrator's update. 7.3 Councilmember Holmgren. 7.4 - Mayor Gunkel. 7.5 - Councilmember Dobel. COUNCILMEMBER TRALLE MOVED TO APPROVE THE 5/9/88 CITY COUNCIL AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3.1 4/25/88 Joint EDC. CC Minutes COUNCILMEMBER TRALLE MOVED TO APPROVE THE DEVELOPMENT COMMISSION/CITY COUNCIL MINUTES. SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4/25/88 JOINT ECONOMIC COUNCILMEMBER DOBEL 3.2. 5/2/88 City Council Minutes COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE 5/2/88 CITY COUNCIL MINUTES. COUNCILMEMBER TRALLE SECONDED. THE MOTION. THE MOTION CARRIED 5-0. 4. Downtown Committee Cliff Lundberg was present and indicated that the Downtown Retailers desire a change order to the Downtown Beautification project. He indicated the change order request is for electrical wiring and outlets to be placed at every tree to facilitate tree lighting. Mr. Lundberg indicated that the retailers have raised $7.000 as of today. The City Administrator stated that he had met with the Downtown Retailers regarding this matter. He stated that the $117.300 assessment amount does not include the requested light outlets. He further indicated that he did inform the group that the City would not go through another assessment hearing for this change order. He further stated that he informed the Downtown Retailers that the Council may consider partially funding the change order if a majority of the cost is funded by the retailers. He noted that the estimated cost of the change order is $12.000. Page 2 City Council Minutes May 9, 1988 e Councilmember Tralle indicated that this request was discussed by the Elk River Utilities Commission and indicated that the following concerns were discussed: vandalism, public safety, maintenance, snow removal and replacement of trees. Cliff Lundberg stated that most of these concerns could be addressed in the specifications. Councilmember Tralle indicated he was not opposed to the change order provided that the work is done safely and that two-thirds of the project is funded by the Retailers, with the remaining to be funded by the City. Mayor Gunkel indicated that the Council has accommodated the Downtown Retailers regarding the beautification of the downtown area. She further stated that lighting outlets are available on the light poles which could be used to light the trees. Mayor Gunkel indicated that there are several other commercial areas in the City which the Council may also be requested to consider "helping out" and further that the City has donated money and time to the downtown beautification project. Mayor Gunkel also questioned whether this would be a good and proper use of tax dollars. She indicated she did not feel it was appropriate for the Downtown Committee to come back to the Council and request more money at this late date. e Cliff Lundberg stated that this request for electrical w1r1ng and outlets to the trees was originally requested at the beginning of the project but was eliminated by the Council because they were trying to keep the cost of the project down. He stated that since the project came in under budget, the request is being brought back to the Council. He further stated that timing is very improtant as the change order must be approved immediately. He stated that he was not sure if the retailers could raise the remaining $5,000. Jim Mulroy last Tuesday project. This so late. indicated that the downtown retailers had just found out that the outlets to the trees were not included in the is the reason the request for the change order is coming Counci1member if the City receive other Dobel indicated that he agreed with Mayor Gunkel in that contributes to the cost of the change order, they will requests for money from commercial areas in Elk River. COUNCILMEMBER TRALLE MOVED THAT THE ELECTRICAL WIRING AND OUTLETS BE ADDED TO THE BASE OF THE TREES AS A PROJECT CHANGE ORDER AND THAT THE DOWNTOWN RETAILERS PAY TWO-THIRDS OF THE MONEY AND THAT THE CITY CONTRIBUTE A MAXIMUM OF $4. 000 ~ . COUNCILMEMBER SCHULDT SECONDED THE MOTION. e Counci1member Schuldt indicated that the City's maximum financial participation in the project had been decided early in the project and does not feel the Council should consider contributing more money at this time. THE MOTION FAILED 2-3. MAYOR GUNKEL AND COUNCIL MEMBERS SCHULDT AND DOBEL VOTED AGAINST THE MOTION. Page 3 City Council Minutes May 9. 1988 tit COUNCILMEMBER DOBEL MOVED TO ORDER THE CHANGE ORDER FOR ONLY THE UNDERGROUND WIRING SO THAT THE OUTLETS' CAN BE ADDED IN THE FUTURE WITH THE ENTIRE COST" TO' BE PAID BY THE DOWNTOWN RETAILERS. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5. 1987 City Audit Gary Groen of Abdo. Abdo. and Eick reviewed the 1987 Audit with the City Council. Mr. Groen reviewed the general fund. He indicated that the unreserved fund balance has increased from last year. The City Administrator indicated that City's unreserved general fund balance is about 30% of the general fund expenditures. up from 28% last year. It is an audit recommendation that the fund balance be approximately 40% of budgeted expenditures in order to meet cash flow needs. Mr. Groen reviewed reserve funds were He indicated that bonds and other one the Special Revenue Funds. He indicated that three created in 1987 as a result of one time transfers. the moneys were collected through the defeasance of time transfers. e Mr. Groen reviewed the Debt Service funds. Capital Projects funds and Enterprise funds with the City Council. Discussion pursued around the Municipal Liquor fund. The gross profit has increased from 20.89 percent of sales in 1986 to 21.56 percent in 1987. The City Administrator indicated that the liquor store provides a very valuable source of revenue to the City. Mr. Groen discussed the City's purchase order policy with the Council. He noted that compliance to the policy needs to be increased. He further noted that the purchase order policy provides for the City Administrator and Finance Director to approve and control finances before they occur. Mr. Groen indicated that he is recommending that the City establish a reimbursement procedure for meal expenses incurred in the conduct of city business. He stated that in order to keep down the amount of time and paper work involved. it would be best for staff and City Council Members to pay for the expense and then submit a claim for reimbursement. Mr. Groen indicated that the City has decided to replace the computer system as the fiancia1 management software currently provided through AmeriData will no longer be supported by AmeriData. Lori Johnson. Finance Director indicated that she has researched several financial software packages and will be recommending the purchase of an IBM computer at a future meeting. At that time a recommendation on financial software will also be made. e Page 4 City Council Minutes May 9, 1988 e Gary Groen distributed an article from the League Magazine to the Council. The article centered around the Fire Department being a subordinate department of the City. Mr. Groen explained that the article indicated that funds received by the fire department are subject to the control of the city council and should be turned over to the City Treasurer and are subject to regular city controls and disbursement procedures. The City Administrator indicated that this will be a gradual process. He stated that the City needs a better understanding and an increased involvement in the Fire Department finances and the Fire Department needs a better understanding of its role in City government. COUNCILMEMBER TRALLE MOVED TO ACCEPT THE 1987 CITY AUDIT. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6. Resolution to Close Street Lighting Bid COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 88-32, A RESOLUTION AUTHORIZING TRANSFER OF FUNDS FROM THE HIGHWAY 10 STREET LIGHT CAPITAL PROJECT FUND TO THE MSA CAPITAL PROJECTS. FUND. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. . e 7.1. Tyler Street Mayor Gunkel indicated that a feasibility study had been done for the the improvement of Tyler Street a couple of years ago. She stated that the City did not proceed with the project because it was not feasible. Mayor Gunkel indicated that she would like to see an intent in place so that when capital project funds reach a certain amount of money, the Council could designate this money for the improvement of Tyler Street. She indicated Tyler Street is in very poor condition. It was the consensus of the Elk River City Council to have Staff draft a resolution indicating the intent of the Council to do a detailed feasibility study on the improvement of Tyler Street in 1989 and to do the project in 1990 provided there are sufficient funds in the Capital Projects Fund. 7.2. City Administrator Update The City Administrator updated the City Council on the City Manager's Conference he will be attending on May, 11, 12, & 13; on the upcoming Chamber of Commerce annual Spring banquet; and the upcoming Minnesota League of Cities Conference. e The City Administrator informed the Council he has checked with the City's Insurance Agent regarding transient merchant licenses and the City is covered. He noted that to require the transient merchants to carry insurance could eliminate them altogether, and did not feel this would be fair. Councilmember Tralle stated his concern as to whether or not the City should allow transient merchants to sell goods on City property. Page 5 City Council Minutes May 9. 1988 e The City Administrator indicated that according to the City's Insurance Agent the City would be taking a high risk to allow a private slalom course on public property (Orono Lake). The City Administrator indicated that insurance-wise. it is not to the City's best advantage to have a lifeguard at Orono Beach until there are structures such as a raft. a lifeguard tower. etc. at the beach. The City Administrator indicated that the Liquor Store Manager has submitted a memo requesting that the Council authorize the purchase of an ice cube maker from Tom's Appliance Service. He indicated that Tom's Appliance Service was the low quote at $3.510 out of four quotes and that this expenditure is listed in the 1988 City budget. COUNCILMEMBER DOBEL MOVED TO APPROVE THE PURCHASE OF AN ICE CUBE MAKER AND HOLDING BIN FOR $3.510 FROM TOM'S APPLIANCE SERVICE. COUNCILMEMBER HOLMGREN - SECONDED' THE MOTION'. THE MOTION CARRIED 5-0. COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 88-33. A RESOLUTION ORDERING A PRELIMINARY FEASIBILITY REPORT IN THE MATTER OF THE 4TH AND IRVING SIDEWALK IMPROVEMENT. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 5-0. e 7.3. Councilmember Holmgren 1) Councilmember Holmgren indicated that a variance had been granted to Tom Lockwood for property he owns on 192nd Avenue. He indicated that there were conditions set on the variance and that these conditions should be reviewed by City Staff as the area is very unsightly. 2) Councilmember Holmgren indicated that during church service at St. Andrews Catholic Church the cars are parked three deep in the parking lot. He stated there is no fire lane and felt this should be looked into by City Staff. 3) Councilmember Holmgren stated that he would like to take action on the City Administrator's Employment Agreement which was discussed at the last Council meeting. Mayor Gunkel noted the following changes which were made by Council at the last meeting: 1) Termination notice by the City Administrator shall be 45 days as opposed to 30 days. 2) Should the City Administrator be dismissed by the City Council that severence pay not exceed one year's salary. 3) That the contract date be for two years (Section 2C). e COUNCILMEMBER TRALLE MOVED TO APPROVE THE SUBMITTED EMPLOYMENT AGREEMENT AS AMENDED BY THE ABOVE- AMENDMENTS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. Page 6 City Council Minutes May 9. 1988 e Councilmember Schuldt indicated that he is not convinced that the contract is necessary and stated he finds exception with some of the conditions listed in the contract. Mayor Gunkel indicated that Pat Klaers is the Chief Executive Office of the City. and it would be mutually beneficial to him and the City to enter into an agreement. THE MOTION CARRIED 4-1. COUNCILMEMBER SCHULDT OPPOSED. 7.4. Mayor Gunkel Mayor Gunkel indicated that Marge Winkelman is requesting that the City place an advertisement in the Star News to advertise Law Enforcement Week. It was the consensus of the City Council to not place an ad in the newspaper as it has been an informal City Policy to not advertise in newspapers. 7D. Councilmember Dobel Councilmember Dobel updated the Council on the National Planning conference he attended in San Antonio. Texas. e There being no further business. COUNCILMEMBER TRALLE MOVED TO ADJOURN THE MEETING OF THE ELK RIVER CITY COUNCIL; COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River City Council adjourned at 10:35 p.m. ~ Sandy Thackeray Deputy City Clerk e