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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. PAGE2 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. PAGE3 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: ~ PAGE 4 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. ~ PAGE5 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. -., PAGE6 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