08-29-1988 CC MIN
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MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
AUGUST 29. 1988
MEMBERS PRESENT:
Mayor Gunkel. Councilmembers Dobel. Tralle. Schuldt.
and Holmgren
MEMBERS ABSENT:
None
ALSO PRESENT:
Patrick Klaers. City Administrator; and Lori Johnson.
Finance Director
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. Consideration of 8/29/88 City Council Agenda
The following items were added to the agenda:
5.11. City Administrator Update
D. Main Street Sign Resolution
E. Johnson Assessment Appeal
F. Assembly of God Church Accessory Buildings
5.12. Councilmember Tralle/Highway 101 Update
5.13. Councilmember Tralle/Action Taken at Recent Utilities Commission
Special Meeting
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE 8/29/88 CITY COUNCIL AGENDA AS
AMENDED. COUNCILMEMBER TRALLE SECONDED THE MOTION. THE MOTION CARRIED
5-0.
3. Consideration of 8/22/88 City Council Minutes
COUNCILMEMBER TRALLE MOVED TO APPROVE THE 8/22/88 CITY COUNCIL MINUTES.
COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4. General Budget Discussion
4.1. Softball Complex Lighting Proposal
Dave Anderson and Rolfe Anderson representing the Elk River Softball
Organization and Craig Gallopp of Sports Technology Incorporated. were
present to discuss a softball lighting proposal with the City Council.
The softball complex lighting proposal has been discussed at many recent
Recreation Board meetings. In June. a motion recommending Council
consideration of the softball complex lighting was adopted by the
Recreation Board. At that time. the Council agreed to consider it when
reviewing the 1989 City Budget.
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City Council Minutes
August 29, 1988
Dave Anderson presented the proposal as reviewed by the Recreation Board.
This information was distributed to the City Council. The lighting
proposal calls for lights to be purchased in the amount of $39,416.00, or
the lights to be purchased on a lease/purchase plan of five payments at
$9,649.00 per year. It is estimated the poles for the lights would cost
approximately $12,000.00 and that it would cost approximately $10,000.00
for the lighting system to be installed. Therefore, the total estimated
cost of the lighting proposal is $62,000.00. The City Administrator
noted that as the purchase exceeds $15,000.00 the City has a legal
requirement for bidding out the improvement project.
Dave Anderson indicated that the softball organization was willing to pay
the City $10,500.00 per year until the total cost of the lights were paid
off. However, during the time that this payment is being made, the
softball organization would not be able to pay the City, at the same
level as previous years, for maintenance supplies for the softball
complex. The City had been receiving approximately $5,100.00 per year
for the past few years from the softball organization for these
maintenance supplies. Dave indicated that for any team above 45 in
number that would be particiating in organized softball league
activities, that the softball organization would contribute $125.00 per
team to the City for softball complex maintenance supplies. Dave also
indicated that with lights it is conceivable that as many as 25
additional teams could be added to softball leagues.
During open discussion between the City Council, Dave Anderson, and the
City Administrator, it became apparent that no firm guarantees from the
softball organization could be offered to the City for future payments
for the lights once they were installed. However, this was not deemed as
a serious concern since the City Council could not allow softball
activities at the softball complex if payment for the lights was not
received on a annual basis. It was also brought out if a new softball
complex was constructed in future years, that these lights were movable
and could be relocated at a new softball complex. Dave Anderson
indicated that in addition to seeking City financial support for the
softball complex lights, that he would be approaching the Legion
organization in looking for financial assistance in the purchase of the
poles. The City Administrator indicated that the main concern of the
City in this purchase was not future payment and the City absorbing an
additional $5,OOO.00/year of maintenance fees, but the cost for the poles
and installation of the lighting system in the fall of 1988 when such
activity was not anticipated when the 1988 budget was approved.
The City Council discussed the overall betiefit to the Elk River Community
and businesses that the softball leagues provide. Also discussed was the
availability of funds for recreational purposes and the fact that the
City has previously invested a great deal of money in the softball
complex and by authorizing the purchase of the softball complex lights,
the City would be committing a great deal of future funds for softball.
The issue of recreational funding and priorities for various recreational
projects was debated.
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City Council Minutes
August 29. 1988
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It was indicated that in order for softball lights to be in operation for
the 1989 season. a decision on City financial particiation in the
lighting proposal would have to be made in the very near future. After a
very lengthy debate on the issue. the Mayor requested a motion so that
this improvement can be taken into consideration or eliminated from
consideration when the 1989 City Budget is reviewed.
COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE CITY FINANCING THE PURCHASE
AND INSTALLATION OF LIGHTS AT THE SOFTBALL COMPLEX WITH THE UNDERSTANDING
THAT THE SOFTBALL ORGANIZATION WOULD PAY THE CITY $10.500.00 PER YEAR
UNTIL THE TOTAL COST OF THE SOFTBALL LIGHTS ARE REPAID TO THE CITY.
COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-l.
COUNCILMEMBER SCHULDT WAS OPPOSED.
Councilmember Schuldt indicated he was opposed to this purchase because
of the uncertainty as to where the estimated $22.000.00 would come from
in order to finance the poles and the installation of this lighting
complex as this expenditure was not included within the adopted 1988 City
Budget.
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It was the consensus of the City Council. that when such lights are
installed and in operation that it would be the City's position and
policy that these softball lights should be turned off by 10:30 p.m..
unless special arrangements were made.
At this time. the City Council took a ten minute break.
The City Council reconvened at 8:40 p.m.
4.2. Revenue Projections
4.3. Expenditure Update
4.4. Personnel and Comparable Worth Update
4.5. Capital Outlay Review
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The City Administrator reviewed with the City Council the revenue
projections for the 1989 City Budget. It is anticipated that the
revenues and expenditures will increase somewhere in the 20 to 22 percent
range. This will place the 1989 level of revenues and expenditures at
approximately 2.1 million dollars. The increase is possible because of a
successful levy limit appeal. an increase in local government aid. and a
general levy limit increase from the State based on increased households
and population. The Administrator indicated that it is uncertain as to
what this increase in revenue by way of taxes would do to the mill rate
because of the assessed valuation increase in the community and the
increased households which the taxes would be spread out over. Since
this revenue being generated through taxes is roughly ten percent of the
mill rate and the other part of the mill rate generated by the City by
way of bond requirements is being reduced. it is anticipated that if any
increase takes place in the mill levy from the City. it would be
relatively minor.
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City Council Minu
August 29. 1988
Regarding possible personnel increases and total personnel expenses. the
City Administrator indicated that it is planned for all of the pay ranges
for municipal employees to increase three percent and then each employee
would move up a step in their pay plan or to the top of the pay plan.
whichever is less. Of the possible personnel increases. the City Council
indicated that the hiring of an Administrative Assistant/Personnel
Coordinator and Police Officer #13 were the highest priorities. The City
Council acknowledged that along with the hiring of an Administrative
Assistant/Personnel Coordinator and the increased clerical work load with
the recent hiring of an Economic Development Coordinator. that additional
clerical time would be needed. The Administrator discussed the request
for a second Community Service Officer (CSO) and the adjustment of the
employment status of the Fire Chief from half-time to full-time. The
City Council indicated that these two personnel adjustments were of a
lower priority. The City Administrator indicated that he would most
likely request the Fire Chief and Police Chief to be present at a future
special City Council meeting where the budget is discussed to present
their cases for these two personnel changes.
Regarding Comparable Worth Law and its relationship to future wage
adjustments. the City Administrator discussed a method of adjusting wages
for individuals that are above the pay corridors.
COUNCILMEMBER TRALLE MOVED TO APPROVE THE PAY ADJUSTMENTS FOR EMPLOYEES
FALLING OUTSIDE THE HIGH POINT OF THE 10% PAY CORRIDOR FOR THE ALL
EMPLOYEE REGRESSION ANALYSIS. HAVE SUCH PAY ADJUSTMENT GIVEN AS ONE HALF
OF THE INCREASE BEING APPLIED TO THE BASE SALARY AND THE OTHER ONE HALF
GIVEN IN PERIODIC LUMP SUM AMOUNTS AS THE WORK IS PERFORMED.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The City Administrator discussed possible capital outlay purchases in
1989. He indicated that it is the goal of the City to not increase its
reliance on Equipment Certificates and the long term goal of the City is
to eliminate the use of Equipment Certificates. However. in order to
finance all of the needed expenditures in 1989. Equipment Certificates
will have to be used. It was noted that three police vehicles and
associated equipment are planned to be purchased. Two of these vehicles
would be a Equipment Certificate purchase and one would be included
within the General Fund. It was noted that these purchases would
increase the police fleet by one vehicle. as this is needed when Officer
#13 joins the Staff. The City Administrator noted that one additional
siren would need to be purchased in 1989. and depending upon the status
of a sidewalk snow removal policy. the City may need to purchase a
sidewalk snow removal tractor. The Council indicated that consideration
of purchasing cable TV equipment should be delayed at least one year.
The City Administrator indicated that the Staff would be trying the
finalize the list of recommended Capital Outlay purchases by way of
Equipment Certificates for Council consideration in mid-September.
Depending on the availability of revenues in the General Fund Budget. as
many capital outlay items as possible would be financed through each
departmental General Fund Budget.
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City Council Minutes
August 29. 1988
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4.6. Econmic Development Authority Tax Levy Resolution
COUNCILMEMBER TRALLE MOVED TO ADOPT RESOLUTION 88-67. A RESOLUTION
STATING THE PROPOSED AMOUNT OF LEVY FOR ECONOMIC DEVELOPMENT AUTHORITY
PURPOSES. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
4.7. Housing and Redevelopment Tax Levy Resolution
COUNCILMEMBER TRALLE MOVED TO ADOPT RESOLUTION 88-68. A RESOLUTION
APPROVING THE HOUSING AND REDEVELOPMENT AUTHORITY 1989 TAX LEVY.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5. Other Business
5.1. Ground Water Study at Hillside Park
Tbe City Council reviewed a proposal. that the Staff requested Liesch and
Associates to submit. for the testing of the ground water in Hillside
Park around the area of the old City dump site. The proposal from Liesch
and Associates that was reviewed by the City Council was dated August 11.
1988.
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COUNCILMEMBER TRALLE MOVED TO APPROVE THE GROUND WATER TESTING PROPOSAL
SUBMITTED BY LIESCH AND ASSOCIATES. COUNCILMEMBER DOBEL SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
5.2
Curtis Job Petition for Municipal Improvements
COUNCILMEMBER TRALLE MOVED TO ADOPT RESOLUTION 88-70. A RESOLUTION
DECLARING THE ADEQUACY OF THE PETITION FOR IMPROVEMENT AND ORDERING THE
PRELIMINARY FEASIBILITY REPORT IN THE MATTER OF SANITARY SEWER AND WATER
STUB IN'S TO THE PROPERTY LEGALLY DESCRIBED IN THE ATTACHED SIGNED
PETITION FOR CURTIS JOB. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
It was noted that the location of this property is in the very
southwestern corner of the nearly 40 acre Royal Oaks Addition.
5.3 Gospodor Petition for Public Improvement
COUNCILMEMBER DOBEt MOVED TO ADOPT RESOLUTION 88-69. A RESOLUTION
~ICtARING THE ADEQUACY OF THE PETITION FOR THE IMPROVEMENT AND ORDERING
THE PRELIMINARY FEASIBILITY REPORT IN THE MATTER OF SANITARY SEWER. WATER
MAIN AND STORM DRAINAGE IN THE WESTERN AREA OF THE CITY AS REQUESTED BY
THE SIGNED PETITION SUBMITTED BY DOMINIC GOSPODOR. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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It was noted that this property runs along Orono Road from Lake Orono to
the Orono Lake Third Addition and is directly east of the Softball
Complex and County fairgrounds area.
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City Council Minutes
August 29. 1988
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5.4 Economic Development Commission Ordinance
In an April 25. 1988. joint City Council and Economic Development
Commission meeting it was agreed upon that the Economic Development
Commission would be abolished once the Economic Development Authority
(EDA) was established. The City Council approved the EDA bylaws on
8/22/88. These bylaws call for Citizen Advisory Committees to assist the
EDA in special tasks. By mutual understanding of the City Council and
the Economic Development Commission. former Economic Development
Commission members would be serving on these Citizen Advisory Committees
to the EDA. Since the Economic Development Commission was established by
ordinance, an ordinance is needed to formally abolish the Economic
Development Commission.
COUNCILMEMBER TRALLE MOVED TO ADOPT ORDINANCE 88-24. AN ORDINANCE
AMENDING THE CODE OF ORDINANCE FOR THE CITY OF ELK RIVER TO REPEAL
SECTION 215 WHICH CREATES AN ECONOMIC DEVELOPMENT COMMISSION.
COTJNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.5
Purchase of Industrial Property from Associated Investors
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The City Council has approved Tax Increment Financing District #5 which.
in part. called for financial assistance to Alltool Manufacturing in its
business expansion. This expansion is the construction of a new facility
in the Industrial Park. Part of the Tax Increment plan was for the City
to purchase property from the Associated Investors and sell the property
to Alltool for one dollar.
COTJNCILMEMBER DOBEL MOVED TO ADOPT RESOLUTION 88-71. A RESOLUTION
APPROVING THE PURCHASE OF INDUSTRIAL PROPERTY FROM ASSOCIATED INVESTORS
or ELK RIVER. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
5.6 Transfer Deed of Industrial Property to Alltool Manufacturing
COUNCILMEMBER SCHULDT MOVED TO ADOPT RESOLUTION 88-72. A RESOLUTION
APPROVING THE SALE OF INDUSTRIAL PROPERTY FROM THE CITY OF ELK RIVER TO
ALLTOOL MANUFACTURING. INC. COUNCILMEMBER HOLMGREN SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
5.7 Resolution of Appreciation-Former Library Board Member Deloris Collins
It was noted
Library Board
August. 1988.
by Mayor Gunkel that Deloris Collins has served on the
since January. 1980. and resigned her position earlier in
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COUNCILMEMBER TRALLE MOVED TO ADOPT RESOLUTION 88-73 . A RESOLUTION
RECOGNIZING THE SERVICES OF DELORIS COLLINS TO THE ELK RIVER LIBRARY
BOARD. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-
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City Council Minutes
August 29. 1988
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5.8 Gambling License for VFW Post
The City Council had no problems with gambling license renewal for the
VFW for its pull tab operation taking place at Elk River Bowl and Dick's
Main Tap. Accordingly. no City Council action was required on this
agenda item.
5.9 Pay Estimate #1 Royal Oaks Ridge
The City Engineer has recommended payment in the amount of $58.598.03 to
S & L Excavating for the work completed in the Royal Oaks Ridge
Improvement Project.
COUNICLMEMBER TRALLE MOVED TO APPROVE THE PAYMENT OF $58.598.03 TO S & L
EXCAVATING FOR WORK COMPLETED ON THE ROYAL OAKS RIDGE IMPROVEMENT
PROJECT. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
5-0.
5.10 Street Department Truck
COUNCILMEMBER DOBEL MOVED TO AUTHORIZE PAYMENT OF $5.000.00 TO HENNEPIN
COUNTY FOR THE PURCHASE' OF A STREET DEPARTMENT TRUCK. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION' CARRIED' 5-0.
e 5.11 City Administrator Update
a. Main Street Update
City Administrator referred the Council to the August 25. 1988. memo
from City Engineer. Terry Maurer. regarding the construction status
of the Main Street/Jackson Avenue improvement projects.
b. Miscellaneous Building & Zoning Questions
City Administrator
from the Building
August 26. 1988.
Zoning issues.
brought to the City Council's attention a memo
& Zoning Administrator. Stephen Rohlf. dated
which addresses various miscellaneous Building &
c. Kelley Farm Special Event
City Administrator informed the City Council of a special event
planned by the Director of the Kelley Farm. Tom Woods. on September
17 and 18. The event is to be called "Frontier Business Days" which
emphasizes the fact that the City of Elk River was founded on the
basis of farming activity.
d.
Yield Signs
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City Administrator indicated that it has been the plan to replace
all of the yield signs entering onto Main Street with stop signs to
improve the vehicle pattern and safety conditions.
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City Council Minutes
August 29. 1988
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COUNCILMEMBER TRALLE MOVED TO ADOPT RESOLUTION 88-74. A RESOLUTION
AUTHORIZING THE INSTALLATION OF STOP SIGNS ON THE SIDE STREETS THAT
ENTER ONTO MAIN STREET FROM THE ORONO DAM BRIDGE TO HIGHWAY 10.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. . THE MOTION CARRIED 5-0.
e. Johnson Assessment Appeal
City Administrator informed the City Council that Mr. Dale Johnson.
who had appealed the Central Business District assessment. had
accepted the City Council offer of being reassessed a total of one
assessment unit instead of the previously assessed two assessment
units. A signed statement to this effect has been received by the
City Attorney.
f. Assembly of God Church Accessory Buildings
City Administrator indicated that instead
foot accessory building that would have
action. the Church is now proceeding with
1.000 square foot buildings which require
These accessory structures at this size are
of the one 2.000 square
required City Council
the construction of two
no City Council action.
permitted by City Code.
5.12 Highway 101 Update
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Councilmember Tralle informed the City Council that a special meeting has
been arranged between the 101 Committee and Governor Rudy Perpich on
Thursday. September 1. 1988. for the purpose of discussing the need of
improving Highway 101 to a four lane highway.
5.13 Councilmember Tralle Utilities Commission Update
Councilmember Tralle informed the City Council that the Utilities
Commission met in special emergency session on Thursday. August 25. 1988.
to reveiw the employment status of Utilities General Manager. Bill
Birrenkott. The Commission had been informed that Mr. Birrenkott had
received an employment. offer from a utilities operation in Florida and
was considering accepting this position. The employment offer paid
$53.000.00 effective immediately. The Utilities Commission considered
Mr. Birrenkott's current wage as compared to wages of similar positions
within Minnesota. The Utilities Commission countered the Florida offer
by offering to increase Mr. Birrenkott's wage to $49.000.00 effective
September 1. with the committment to increase the wage to $53.000.00 for
the calendar year 1989. Mr. Birrenkott has decided to remain employed
with the Elk River Municipal Utilities and not accept the position in
Florida.
5.14 Check Register
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COUNCILMEMBER TRALLE MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0..
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City Council Minutes
August 29. 1988
5.15 Adj ournment
COUNCILMEMBER DOBEL MOVED TO ADJOURN THE 8/29/88 CITY COUNCIL MEETING.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The meeting was adjourned at approximately 10:20 p.m.
R~;j)az---
Patrick D. Klaers
City Administrator