01-13-1986 CC MIN
REGULAR MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER PUBLIC LIBRARY
MONDAY. JANUARY 13.1986
MEMBERS PRESENT: Mayor Hinkle. Councilmembers Schuldt. Gunkel. Engstrom.
and Williams
MEMBERS ABSENT: None
STAFF PRESENT: Tom Bublitz; City Administrator. Lori Johnson; Finance
Director. Terry Maurer; City Engineer. and Phil Hals;
Street Superintendent
1. The Elk River City Council meeting was called to order by Mayor Hinkle at
7:30 p.m.
2. Agenda
COUNCILMEMBER GUNKEL MOVED TO APPROVED THE AGENDA. COUNCILMEMBER SCHULDT
SECONDED THE MOTION. THE MOTION PASSED 4-0.
3. 1/6/86 City Council Minutes
COUNCILMEMBER GUNKEL MOVED TO APPROVE THE JANUARY 6. 1986 CITY COUNCIL
MINUTES AS SUBMITTED. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE
MOTION PASSED 4-0..
5. Consideration of loss control suggestions from Home Insurance Co.
The City Administrator noted that the Home Insurance Company has
submitted some suggestions and recommendations to the City. through the
Loss Control Program. He noted that most of the suggestions the City
could respond to without a significant amount of expense. The City
Administrator stated that the major item of recommendation from the Home
Insurance Company was that the City do some structural testing of the
City Hall building. The City Administrator indicated he would contact
someone regarding the structural testing.
It was noted that the ordering of the garage doors should be withheld
until a structural engineer has examined the building to determine
whether it is safe for cars to be parked in the garage.
4. Demonstration of new Four Wheel Drive Loader
Phil Hals. the Street Superintendent. gave a demonstration on the four
wheel drive loader which the City recently purchased from Ziegler. He
demonstrated the quick hitch attachment.
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CITY COUNCIL MINUTES
JANUARY 13.1986
6. Conlidoration of Reappointments to City Boards and Commissions
COUNCILMEMBER GUNKEL MOVED TO REAPPOINT VICKI SULLIVAN AND DILOIUI
COLLINS TO THE LIBRARY BOARD FOR ANOTHER THRI! YEAl '!'11M TO IXPIltil OW
DECEMBER 31. 1988. COUNCILMEMBER WILLIAMS SECONDED TH! MOTION. THI
MOTION PASSED 4-0.
COUNCILMBMBER GUNKEL MOVED TO REAPPOINT ARLON FUCHS TO THE PLANNING
COMMISSION FOR A THREE YEAR TERM TO EXPIRE DECEMBER 31, 1988.
COUNCILMBMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0.
The City Administrator noted that two positions were up for reappointment
on the Beautification Committee. The Council discussed the duties of the
Beautification Committee. Mayor Hinkle noted that he felt the
Beautification Committee could be discontinued due to the fact the
Committee has not fulfilled the obligations of the Committee.
COUNCILMEMBER WILLIAMS MOVED TO DISBAND THE ENTIRE BEAUTIfICATION
COMMITTEE UNTIL SUCH TIME THAT SOME NEW IDEAS All PRSSENTED.
COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSII) 4-0.
Economic Development Grant Program - Public Haarinl
The City Administrator noted that the City is holding a public hearing in
order to get input from the public regarding the City's intention of
applying for a grant program in order to assist Roma Tool. He indicated
that as part of the requirements for the application to the State of
Minnesota for the Small Cities Economic Development Program. the City is
required to review its housing and community development needs. and
further indicated he was prepared to do this tonight for the public
hearing.
The City Administrator noted that public facilities including streets.
water and sewer were the first items to be considered. He noted the City
has addressed this item with the Comprehensive Water Study done in 1982.
and the Tax Increment Financing for the water service and use of MSA
funds for street projects and sewer projects.
The City Administrator noted that public services was the second need
which must be considered. He noted that the City has d~veloped a capital
improvement program to address this item.
The City Administrator noted that housing was the third need to be
considered. He indicated that the City has no specific housing programs
at the present time. but stated that the City has assisted the Guardian
Angels Foundation in their efforts at providing housing for low and
moderate income for the elderly. He explained the City's role in the
Guardian Angels housing project consisted of using tax increment
financing to assist with the project.
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CITY COUNCIL MINUTES
JANUARY 13, 1986
The City Administrator noted that Economic Development was the fourth
need to be considered. He indicated that the City has promoted this
through the use of IRB's and tax increment financing in the hope of
creating a stronger tax base and the goal of creating new jobs, including
jobs available to persons of low and moderate income. He further stated
the Star Cities program has been pursued which is an indication that the
City has addressed economic development.
Mr. Mike Auger from the Minnesota Department of Energy and Economic
Development was present and noted that the City Administrator adequately
addressed these items.
Mayor Hinkle opened the public hearing. No one appeared for or against
the item.
Mayor Hinkle closed the public hearing.
COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 86-3. A RltJOLUTION or
SPONSORSHIP FOR ROMA TOOL AND PLASTICS INCORPORATED LOAN PROGJAM.
COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSID 4-0.
8. MSA Discretionary fund
Terry Maurer, the City's Engineer reviewed the Gates Avenue project and
the Main Street Project with the City Council. He noted that for the
Gates Avenue Project there were some costs which were never collected or
assessed out. He noted the following costs for Gates Avenue were never
assessed or collected:
UNASSESSED OVERHEAD COSTS
UNDER ASSESSED PROJECT COSTS
UNACOUNTED FOR WATER COSTS
UNACCOUNTED FOR SANITARY SEWER COSTS
GARY SANTWIRE LLOYD ANDERSON
$ 66,514.00
20,700.00
146.180.00
48.574.00
2,000.00
POTENTIAL PROJECT SURPLUS
$ 88.276.00
$195,691.72
PROJECT SHORTFALL
The Council discussed the project shortfall and noted t~ey would like
staff to look at trying to recover as many costs as possible.
Terry Maurer then discussed the East Main Street Improvement Project. He
noted that the same problems occurred with this project as with Gates
Avenue. He noted the following costs for the East Main Street Project
were never collected:
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CITY COUNCIL MINUTES
JANUARY 13, 1986
SEWER REVENUE FUNDING
UTILITIES COMMISSION FUNDING
$ 77,263.00
33,133.00
POTENTIAL PROJECT SURPLUS
$ 53,942.00
PROJECT SHORT FALL
$ 56,453.67
The City Council
costs as possible
Administrator to
collecting some of
discussed the matter
with this project also.
contact the Elk River
the funds.
of trying to recover as many
The Council directed the City
Utilities with regards to
The City Administrator noted he would look at both projects and see what
costs can possibly be recovered and then report back to the Council with
his findings.
10. Reconvene Budget Hearing
The Council reviewed the Library Budget. Bill Pollard, the Librarian was
present and noted the furnace in the library needs repair. He indicated
he had a contract for the City Council to review from Honeywell regarding
the maintenance of the furnace, once repaired. He noted the cost of the
maintenance agreement was approximately $5,700 which would cover labor
and parts for the repair of the furnace. It was the consensus of the
City Council to have the Library Board obtain at least two more bids on
the furnace maintenance and report back to the Council.
The City Council approved the Library budget as submitted with the
exception of line item #3610.
Fire Chief Russ Anderson, Assistant Chief Duane Mordahl, and Fireman Dan
Greene were present to discuss the Fire Department budget. Dan Greene
noted the Fire Department was requesting the City to contribute $11,000
to the Firemen's Retirement plan. Dan Greene noted that the Firemen's
Retirement Fund is now funded by 2% of the total premiums paid from
insurance companies and this is paid to the counties. Mr. Greene noted
the formula they used to come up with the request of $11,000 was 50% of
the 2% money collected.
The City Administrator noted
in determining the City's
knowing where this would lead
that his major concern was the formula used
contribution. He noted he has no way of
the City in future years.
Mayor Hinkle noted he supports the City contributing to the retirement
fund. Councilmember Gunkel noted she felt the pension plan is well worth
the effort put in by the Firemen.
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CITY COUNCIL MINUTES
JANUARY 13, 1986
It was the consensus of the City Council to contribute $11,000 to the
Firemen's retirement fund but noted they would like the option of not
having to use the 50% formula in the years to come.
The City Council approved the Fire Department budget as submitted.
Mr. Dennis Carlson was present to discuss the Recreation budget and Susan
Kapla and Dee Kratzke were present to discuss the Senior Citizen's
budget. The Softball Association was discussed at this time. Phil Hals
noted that he and Denny Carlson had met with the players at one of their
meetings. They noted some complaints by the association was fees and
maintenance on the fields. Mr. Hals noted the softball fees would be set
during the month of January.
The Recreation budget was approved at this time.
The City Administrator noted that he had received a call from the
Department of Revenue questioning three of the City's special levies. He
noted the levies were the HRA levy and the Advertising and Civil Defense
levy.
Lori Johnson, the City's Finance Director noted that the HRA levy was
dropped from our l~vy and a letter from the HRA certifying the levy was
sent to the County.
The Finance Director indicated that if the special levy of Advertising
for $5,000 and the levy of Civil Defense for $2,714 would have to be
deleted from the levy. She further indicated if the dollar amounts are
to be kept in the budget they must be general fund dollar amounts.
The City Administrator recommended dropping the $2,714 which would be
allocated for civil defense. The City administrator noted that the
budget does have $2,000 allocated for advertising to be used for Star
Cities. He further noted the minimal advertising cost for the star city
program is $1,000.
It was the consensus of the City Council to drop the $2,714 which would
be allocated for civil defense and further to drop $2,500 from the
advertising budget and add the remaining $2,500 to the Economic
Development Budget.
The Finance Director noted that the total deficit they are looking at is
$7,627.00. The Council directed the Administrator and Finance Director
to balance the remaining deficit in the budget and bring it back to the
Council for approval.
eeUNeu.MIMBER GUNKEL MOVED TO APPROVE RESOLUTION 86-4 A RESOLUTION
AMlNDING TAX LEVIES FOR CALENDAR YEAR 1986. COUNCILMEMBER WILLIAMS
SECONDED THE MOTION. THE MOTION PASSED 4-0.
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CITY COUNCIL MINUTES
JANUARY 13. 1986
9. Administrator's Updat@
A. 1986 League of MN Cities Proposed Policies and Priorities
The City Administrator questioned whether anyone from the Council
would wish to serve on the Planning Committee.
B. Minn. Community Improvement Program Workshop
The Administrator noted this was a program which would help a person
learn about the community improvement process and to gain statewide
recognition for local improvement projects.
C. Joint Compensation Study Status Report
The City Administrator noted he had hoped to have some results from
the Joint Compensation Study back by this time but indicated he has
not received them as of yet.
11. Check Register
COUNCILMEMBER ENGSTROM MOVED TO APPROVE THE CHECK REGISTER.
COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0.
12. Adjournment
MAYOR HINKLE MOVED TO ADJOURN THE MEETING. COUNCILMEMBER ENSTROM
SECONDED THE MOTION. THE MOTION PASSED 4-0.
The meeting of the Elk River City Council adjourned at 11:05 p.m.
J~/l--~
Sandra Thackeray
Recording Secretary