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09-30-1985 CC MIN REGULAR WEEKLY SCHEDULED MEETING OF THE ELK RIVER CITY COUNCIL HELD-AT THE ELK RIVER CITY'HALL MONDAY, SEPTEMBER 38, 1985 MEMBERS PRESENT: Mayor Hinkle, Councilmembers Gunkel, Schuldt, Williams and Engstrom MEMBERS ABSENT: None STAFF PRESENT: City Administrator, Tom Bublitz; Street Super- intendent, Phil Hals; and Chief of Police, Tom Zerwas 1. The meeting was called to order by Mayor Hinkle at 7:38 p.m. 2. Agenda The City Administrator requested two items be added to the agenda, these being a discussion of the City's insurance proposals for 1986 and the check register. COUNCILMEMBER SEPTEMBER 38, COUNCILMEMBER PASSED 4-8. GUNKEL MOVED TO APPROVE THE 1985 CITY COUNCIL MEETING WILLIAMS SECONDED THE MOTION. AGENDA or TUB AS AMENDED . THE MOTION Consideration of August 19, 1985 and September 16, 1985 City Council Meeting Minutes. Councilmember Gunkel pointed out a correction in the third paragraph on page four of the August 19, 1985 minutes. She noted that the first sentence should read "Councilmember Gunkel inquired whether there was an existing private road agreement with the City." Councilmember Gunkel also pointed out a correction on page six of the August 19, 1985 minutes and noted that the third sentence of the eighth paragraph on page six should state that "she added that there are not assurances that townhouses will not be eliminated and apartments put in their place." COUNCILMEMBER GUNKEL MOVED TO APPROVE THE AUGUST 19, 1985 CITY COUNCIL MINUTES AS AMENDED. COUNCILMEMBER ENGSTROM SECONDED THE MOTION~ - THE MOTION-PASSED 4-1. COUNCILMEMBER GUNKEL MOVED TO APPROVE THE SEPTEMBER 16, 1985 CITY COUNCIL MINUTES AS' SUBMITTED. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-8~ ~ PAGE 2 CITY COUNCIL MINUTES SEPTEMBER 30, 1985 4. Consideration of Amendment to June 17, 1985 City Council Minutes Carol mills with the Guardian Angels Foundation explained to the Council that the Minnesota Housing Finance Agency reviewed the June 17, 1985 City Council minutes and thought that the City was requiring 72 open parking spaces and they subsequently requested an amendment to those minutes to eliminate any confusion with regard to what was being required. COUNCILMEMBER ENGSTROM MOVED TO AMEND THE JUNE 17, 1985 CITY COUNCIL MINUTES WITH REGARD TO. THE MOTION FOR APPROVAL OF THE PARKING VARIANCE REQUEST. BY GUARDIAN ANGELS TO STATE THAT wCOUNCILMEMBERENGSTROM MOVED TO.APPROVE THE PARKING VARIANCE REQUEST BY GUARDIAN ANGELS .FOR THE EVANS PARK 36 UNIT BUILDING TO REQUIRE ONE TO ONE OPEN SPACE PARKING. COUNCILMEMBER GUNKEL SECONDED THE MOTION~ THE MOTION PASSED 4-0w. COUNCILMEBER SCHULDT SECONDED THE MOTION TO AMEND THE JUNE 17, 1985 MINUTES. THE MOTION PASSED 4-0. 5. Consideration of Request to Attend Hennepin County Purchasing Auction from the Street Superintendent The City's Street Superintendent reviewed with Counciimembers the need for V plows in heavy snow and noted that to cut a path through heavy snow, a V plow is necessary since other plows just won't work. He stated that he would like to add another V plow to the fleet and added that the Hennepin County Purchasing Coop will be holding an auction on October 5, 1985 at which there will be two 1957 Wausau V snow plows up for auction. He noted that he would also plan to use a qUick-hitch attchment with it and that this would cost approximately $500. He stated he could modify one of the existing pin hitches to accommodate the V plow. COUNCILMEMBER ENGSTROM MOVED TO AUTHORIZE THE STREET SUPERINTENDENT TO ATTEND THE HENNEPIN COUNTY PURCHASING COOP AUCTION FOR THE PURPOSE OF PURCHASING A V PLOW NOT TO EXCEED A BID OF $400. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. ~. Discussion Item: Garage Options for City Hall and Public Works Mayor Hinkle welcomed Mr. discuss possible options facilities. Mr. Santwire Gary Santwire to the meeting to for City Hall and Public Works stated that he believed the ~ PAGE 3 CITY COUNCIL MINUTES SEPTEMBER 30, 1985 finished product for the City Hall should look appropriate and that in his opinion a 10,000 square foot brick building could be built for between $300,000 and $350,000. He pointed out that he believes a city hall should have a unique roof and entrance area, but that this would not add significantly to the cost. He added that a wood wall with a brick face could be used and the interior could be a sheetrock finish with a suspended ceiling. He stated he believed a building could be built for between $30 and $35 per square foot. He pointed out that when the City of Champlin built their City Hall, they invited contractors to participate in the early stages in order to keep the cost down. He added that in his opinion, the City ought to be represented by people other than only an architect. For example, he pointed out that the Bank of Elk River paid a flat fee for architectural plans and involved different people for the bidding process. He added that he would be willing to charge on a contingency basis so that only if we accomplish what we set out to do, would he be paid. The Council thanked Mr. Santwire for his contribution to the meeting and for taking the time to present his information to the Council. Mayor Hinkle welcomed Mr. John Weicht, who reviewed steel building options for a public works garage and office building. Mr. Weicht stated that an office builidng could be incorporated into and be located in front of a public works facility. In his estimation, he pointed out a steel building for a public works garage at approximately 12,400 square feet, would cost $220,000. The City Administrator inquired as to whether a steel building would be susceptible to punctures from heavy equipment. Mr. Weicht suggested that a berm be built around the entire building to eliminate this type of problem. Also, he pointed out inside the building, steel would be easier to repair than sheetrock damage. He noted that he would recommend a ten inch insulation in the roof and eight inches in the wall. He also pointed out that a steel building could be heated for approximately half the cost of a masonry building. As a point of information he explained that steel in single story buildings has 54% of todays total market. Mr. Weicht quoted estimated costs of between $25 and $30 per square foot for construction of a City Hall using steel and between $15 and $20 per square foot for a maintenance building. He noted ~ PAGE 4 CITY COUNCIL MINUTES SEPTEMBER 30, 1985 that the costs included parking lots and landscaping. He noted that in his opinion a combined building could be constructed to accommodate both a maintenance building and a City Hall at an estimated cost of $15 per square foot for the maintenance building and $20 to $25 per square foot for the City Hall and added that, by combining the buildings the cost per square foot could be reduced due to less site work. Mr. Weicht also noted that there are lease back programs the City could possibly take advantage of. He also recommended that the City use gas radiant heat and that the Blaine and Champlain City Halls are in the same general complex as the public works garage. 6.5 Quotes for City Insurance Program The City Administrator explained that both he and Dan Greene had been exploring insurance markets in Minnesota and that there are essentially only two markets remaining in the municipal insurance business, those being the Home Insurance Company and the League of Minnesota Cities Insurance Trust. He explained that the Home is renewing its accounts on a selective basis and is keeping only the profitable accounts. For expample, he noted that he had become aware of just recently that -th~ City of Glenwood is not being renewed by Home even though their contract expires in December. With regard to companies that had previously been in the municipal business, the picture for them had changed dramatically. He noted that Iowa National Mutual Insurance company was now in receivership and that many of the companies doing business in Bermuda were going out of business. He also noted that the Western Casualty Surety company is no longer in a municipal market. The City Administrator explained that Cities in the League of Minnesota Cities Insurance Trust Program are experiencing an approximate 55% to 69% increase in premiums and many other cities are considering themselves fortunate if their premiums doubled. He noted that in discussions with Peter Tritz of the League of Minnesota Cities Insurance Trust, several cities have experienced premium increases of 399% to 499% and even to 599% over the previous year. PAGE 5 CITY COUNCIL MINUTES SEPTEMBER 39, 1985 Mr. Dan Greene indicated that the insurance market is in a down cycle and that there are several different factors involved. He pointed out that insurance companies are not receiving the same high interest rates on their investments as they had in the past so they are writing only the most profitable accounts. He proceeded to review the insurance proposal he had compiled for the City of Elk River and noted that the Home Insurance Company has been with the City for twelve years. He pointed out that no company would bid the work comp coverage by itself. He explained that Home indicated in the beginning that they wanted all or none of the insurance and that the League of Minnesota Cities Insurance Trust also said this. Subsequently, however, he pointed out both insurers did become somewhat flexible in this area. He explained the League of Minnesota Cities Insurance Trust does not write liquor liability or dam liability. He pointed out that the City took the liquor coverage away since the Home does not want it, however, in order to accept the liquor coverage, Home had to release the work comp coverage. He explained that the League of Minnesota Cities Insurance Trust won't write dam liability and that special markets would cost between $29,9ge and $25,gee which results in an overall higher premium than the Home Insurance Company offers. He explained that the League of Minnesota Cities Insurance Trust is also an assessible program, in other words, the League of Minnesota Cities can assess additional costs if they need to and that the City must pay the assessment by statute. He pointed out that some of the issues to consider for municipalities are whether to go to self insurance and whether to consider higher deductibles. With regard to umbrella coverage, he explained that the City cannot currently get umbrella coverage for either liquor or dam coverage. In summary, he pointed out that the proposed program, which is a combination of the League of Minnesota Cities Insurance Trust Program, and the Home Insurance Company Program results in an approximate doubling of the insurance rates for the City from 1985 and 1986. The Council continued its discussion of insurance coverages for the City and Mr. ~an Greene indicated he would continue to explore umbrella lnsurance markets and also research markets for municipal coverages outside Minnesota. -, PAGE 6 CITY COUNCIL MINUTES SEPTEMBER 30, 1985 COUNCILMEMBER GUNKEL MOVED TO ACCEPT THE PROPOSED INSURANCE PROGRAM PREPARED FOR THE CITY, INCLUDING PUBLIC UTILITIES, LIQUOR STORE AND WASTE WATER TREATMENT PLANT, PREPARED BY MR. DAN GREENE, AT 'AN ESTIMATED COST'OF'$168,606. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. 7A. Report on Coalition of Outstate Cities Meeting The City Administrator noted that he had recently attended a Coalition of Outstate Cities Meeting in Fergus Falls, and that two major issues were discussed at the meeting. He explained the first issue was the change in lawfirms for the Coalition from the firm of Holmes and Graven to the firm of Briggs and Morgan. He explained the reason for this switch was to remain with the two individuals who had worked with the Coalition when they were with the firms of Holmes and Graven and who have subsequently moved to the firm of Briggs and Morgan. The second issue, he pointed out was the focus on the tax reform issues which will be addressed by the legislature in the special session and also in the next biennium. He explained that the Coalition of Outstate Cities, through the firm of Briggs and Morgan will be developing a computer model to assess the various impacts of tax reform proposals as they are discussed by the legislature in future sessions. 8. Check Register COUNCILMEMBER SCHULDT MOVED TO APPROVE THE CHECK REGISTER. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 4-0. 9. Adjournment There being no further business, COUNCILMEMBER SCHULDT MOVED THAT THE MEETING BE ADJOURNED. COUNCILMEMBER ENGSTROM SECONDED THE MOTION. THE MOTION PASSED 4-0. The Elk River City Council adjourned at 11:30 p.m. ~:2~ Tom Bublitz, City Administrator Recording Secretary