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04-11-2005 CC MIN . . . MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE CITY OF ELK RIVER (UPPER TOWN CONFERENCE ROOM) MONDAY, APRIL II, 2005 Members Present: Mayor Klinzing, Councilmembers Dietz, Farber, Gumphrey, and Motin Members Absent: None Staff Present: City Administrator Pat Klaers, Finance and Administrative Services Director Lori Johnson, Street Superintendent Phil Hals, Fire Chief Bruce West, and City Clerk Joan Schmidt Others Present: Mark Ruff and Bruce Dejong of Ehlers and Associates, Inc. 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:37 p.m. by Mayor Klinzing. 2. Consider 4/11/2005 Agenda Councilmember Farber added transportation questions under Council Open Forum. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER MOT IN TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 5-0. 3. Consider Consent Agenda MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILEMBER GUMPHREY TO APPROVE THE FOLLOWING CONSENT AGENDA ITEMS: 3.1. 3/28/05 COUNCIL MINUTES 3.2. AUTHORIZATION TO RETAIN $750 FROM CLIFF-CO., INC'S BID SECURITY CONTRACT 3.3. AUTHORIZATION TO PURCHASE SNOW PLOW TRUCK FROM ASTLEFORD INTERNATIONAL TRUCKS, MINNEAPOLIS, MN IN THE AMOUNT OF $81,507.64 3.4 AUTHORIZATION TO HIRE MARA ANDERSON AS AN ENVIRONMENTAL INTERN WITH INTERNSHIP TO EXPIRE NO LATER THAN AUGUST 19, 2005 3.5. AUTHORIZATION TO CONTRACT WITH FOREST LAKE CONTRACTING FOR THE DESIGN AND GRADING OF A SOCCER/FOOTBALL FIELD AT THE YOUTH ATHLETIC COMPLEX. MOTION CARRIED 5-0. . . . City Council Minutes April 11, 2005 Page 2 4. Open Mike Rick Kreuser, 232 Elk Hills Drive, stated that he works for the City of Minneapolis in transportation and had questions regarding Elk Hills. He referred to minutes from February 8 Planning Commission meeting and March 14 City Council meeting and stated that Elk Hills Drive was listed as the number one priority for upcoming transportation projects. He inquired as to how the commissioners came to that decision, what criteria they followed to vote, and how they weighted the score. He also inquired as to the timeline. Mayor Klinzing asked of City Administrator Klaers how the Planning Commission weighted the score and set the criteria. He stated that they had received the same three memos as Council and was unsure how they went about the process. He felt it was more of a discussion and feeling from the group. He stated that Mr. Kreuser could obtain copies of these memos and get more clarification from the Planning Director and City Engineer. It was stated that Council has directed staff to come back with some proposals for east/west roads and it was felt that staff is under the assumption that Council will move forward within 2-3 years. Councilmember Motin stated that he doesn't feel this timeframe goes against the Transportation Plan but speeds the process up. Mr. Kreuser inquired as to how does what MnDot wants to do with School Street, Highway 169, and Elk Hills Drive tie into the plan. He asked if MoDot and the city have to build this project all at once or would the city move forward with Elk Hills Drive without MoDot. The Mayor stated that the Council hasn't gotten to the point of discussing this project at this detail. Mr. Klaers stated that additional information is being put together for the City Council to consider and will come back in June or July. Funding is in question as to whether or not to do an additional Highway 169 MoDot study and a letter was sent to MoDot stating that this study is very important. Having no one else present to address the Council at Open Mike, Mayor Klinzing closed Open Mike. 5. Worksession 5.1. Council Open Forum Councilmember Farber expressed concern of the semaphore by Jackson and School Street southbound, turning into a racetrack. He also expressed concern that at 193rd the traffic is backing up through the service drives on both sides. Mayor Klinzing stated that in a meeting recently she saw the list of road projects for 2006- 2008 for MoDot and there is a very big lack of Sherburne County projects. She stated that $900,000 is listed for a historic area in Wadena. She stated that Sherburne County isn't putting anything in Elk River on the list and she feels that eventually this will cost the city. She would like to work on an agreement with Sherburne County to propose that we take back all the county roads. She feels it is workable and if their intention is not to cooperate with the City of Elk River's street system then the city n'eeds to go forward. She stated that she felt County Road 44 is a mess and nothing is being done. She felt it had been on Sherburne County's list but they transferred the money to do County Road 1. The Mayor asked the other members of Council their thoughts. . . . City Council Minutes April 11, 2005 Page 3 Councilmember Gumphrey feels County Roads 1,33 and 44 need to be pursued. Councilmember Faber feels the possibility of an agreement is worth looking into. Councilmember Motin felt that an agreement depends on how much it will cost. 5.2. Discuss Disposal of 1980 Fire Truck Fire Chief Bruce West discussed the options available to the Fire Department in regards to the 1980 Ford L9000 General Safety Pumper that has been replaced with the 2005 Pierce Quantum Pumper. He explained that this pumper could be sold through a sealed bid process or donated to another city fire department. The League of MN Cities has researched and found that it is an acceptable practice for one city and/or township to donate equipment to another city and/ or township as long as the receiver of the donation of equipment accepts all responsibility and liability for the equipment they receive by formal resolution. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER DIETZ TO DONATE THE 1980 FORD L9000 GENERAL SAFETY PUMPER TO MAPLE HILL VOLUNTEER FIRE DEPARTMENT. MOTION CARRIED 5-0. 5.3. Consider a Resolution Adopting the National Incident Management System (NIMS) Fire Chief Bruce West explained that the Minnesota Department of Public Safety and its Homeland Security and Emergency Management Division have implemented two directives of which one is the implementation of the National Incident Management System (NIMS). The Elk River Fire Department has incorporated NIMS into their existing training and exercise programs and is in the process of incorporating the NIMS principles, policies, and terminology into the existing City of Elk River Emergency Operations Plan. Chief West asked Council to formally recognize and adopt the NIMS principles and policies by resolution. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER FARBER TO ADOPT RESOLUTION #05-36 ADOPTING THE NATIONAL INCIDENT MANAGEMENT SYSTEM (NIMS). MOTION CARRIED 5-0. 5.4. Feedback on 2004 Annual Report Meeting City Administrator Pat Klaers asked if the 2004 Annual Report meeting met the Council's expectations or if it was felt the meeting was too short with the presentations lacking sufficient detail to be meaningful. Mayor Klinzing felt the written Annual Report, video, and meeting were the best we have done and felt the length was close to about right. Councilmember Farber felt the meeting was a little brief but well done. Councilmember Dietz noticed some division heads weren't present and would like to see them present with their department heads. He would like to have everyone sitting at the table to answer questions. He felt the video was great and liked how it was taped; that when talking, people were in front of a project they were working on. He liked also that the video reviewed 2004 events and the meeting discussion was on 2005. Mayor Klinzing mentioned that she played the video at a recent Mayors' meeting and everyone felt it was great. Councilmember Motin stated that since the Council received the . . . City Council Minutes April 11, 2005 Page 4 video ahead of time that he would like it played for the public from 5:30 to 6 and not played during the meeting. The Council concurred with this suggestion. Councilmember Gumphrey feels that staff has their hands full to try to compare and improve. 5.5. Capital Improvement Program (CIP) Finance and Administrative Services Director Lori] ohnson introduced Mark Ruff and Bruce De] ong of Ehlers and Associates, Inc., who gave a presentation regarding the City of Elk River's Financial Management Plan. This Plan is to enable the Council to make funding decisions and establish priorities for projects within the Capital Improvement Program (CIP). Financial Management Plan Goals · Identify baseline needs for community for the next 10 years. · Provide framework for analyzing impacts. Financial Management Plan Outcomes · Treat budgeting as a multi-year process rather than a snapshot one year at a time. · Integrate into a single document. · Avoid roller coaster taxes - up one year and down the next. · Identify appropriate level of cash and bonds for capital needs. · Improve bond rating. Financial Management Plan Specifics · Focus on non-enterprise fund activities. · Recognize that all assumptions will change. · Focus on future tax rate and impact upon homeowners. Assumptions for Tax Base · Existing tax base grows 4% per year. · New development creates 350 new homes per year valued at $225,000. · Commercial growth of $6.5M every 2 years. · Total annual tax base increased 9%. · From 2004 to 2005, taxes grew 16%. Revenue Assumptions · Property tax revenue increases moderately over time to meet needs. · Other revenue increases 3.5% per year. · Licenses and permits-decrease to 2004 level. Operating Expenses Assumptions · General fund expenses increase 3.5% per year. Staffing additions are included as a percentage of base salaries. · Capital equipment will be funded with equipment certificates until 2007 when operating budget is gradually increased. Debt Assumptions · Goal is to keep debt levy under 20% of total tax levy. · Most existing debt matures in 5 years. · Overall debt levy steady in future. . . . City Council Minutes April 11, 2005 Page 5 . New debt is issued for equipment; new or upgraded municipal buildings and potential referenda/lease projects for library and parks; bi-annually for streets. Cash Balance Assumptions · Maintain sufficient reserves to cash flow projects. · Use cash instead of debt if above levels necessary for cash flow. · Begin to establish a longer-term reserve for replacement. · No one-time revenues are anticipated. Preliminary Results · City is well positioned for future growth. · Assuming no major changes in the projections: -Tax rate will stay constant or decline slightly over next several years. -Can continue existing service levels and add staff to maintain the baseline employment. -City will have flexibility to deal with changes in state aids, growth, and the economy. Next Steps · Consider policy on "debt affordability". · Establish goals for maintaining fund balances for equipment replacement, street reconstruction, and facilities and use of debt. · Review potential for extending special revenues (landfill fees and RDF fees) or replacing those resources. · Allocate resources for capital improvement particularly in facilities and land. Ms. Johnson stated, "what does it really mean." This Financial Management Plan is a tool to help us accomplish what we wish to accomplish with CIP and also helps with the city's bond rating. This Financial Management Plan gives us information on where our tax rate is going and can answer questions such as "can we afford our street reconstruction projects." Council can really see what the impact of their decisions will be. Mayor Klinzing asked if it is taken into consideration at the time of bond rating if a city is looking at future industrial sites. Mr. Ruff stated that balance in city growth is important and a lot of times the rating agencies want to know about the city's Comprehensive Plan. Ms. Johnson stated that she could come back with a Debt Affordability Policy. In 2004 the percentage was at 17%; when a proposed policy is brought back to the Council, she will provide historical data and policies from other cities to help the Council determine the percentage with which they are most comfortable. Mr. Ruff stated that part of the reason Ehlers recommends doing this and not look at statutory bond rate is to be able to demonstrate both to the bond people and the citizens that here is what we need to live within our means. Councilmember Motin asked if we set out the difference between 16% and 20% dollar wise, do we need to carry a larger cash reserve. Mayor Klinzing recessed the meeting at 8 p.m. and reconvened the meeting at 8:11 p.m. City Administrator Klaers reviewed the updated 10-year CIP detail and summary pages, asking Council to remember that this is only a plan and that the Council gets fInal approval . . . City Council :Minutes April 11, 2005 Page 6 of all these projects and purchases at a later date. He asked that the council concentrate on expensive items; give feedback on the potential of referendum; prioritize road projects; and the projects for 2006 and 2007. Mayor Klinzing asked if the Councilmembers have an item that is currently not on the list and should be discussed and added to the CIP. There were no new items added. The Council discussed and asked questions regarding the following projects/ expenditures. · Concern of how long Highland Road will last and whether water and sewer should be added to the street and/ or sidewalk project. · How the city can reduce equipment certificates when equipment needs are . . lOcreaslOg. · If the City has sufficient sirens and currently only replacing. · When the State gets around to redoing Highway 169, will they want matching funds from the cities and do we need to budget for this. · Where will the funds come from to pay for an interchange or can we bond for this · What will be the capital cost to the City for Northstar Corridor (this is handled by Sherburne County with the City maintaining the Park and Ride facility and handling snowplowing). · What are SmartBoard additions. · Inquiry as to land acquisition project for parks - how was that dollar amount determined - what will $1,000,000 buy us in 2014. Councilmember Farber expressed concern about having referendums because the School District has so many referendums. It was asked if it was all right to have the Parks & Recreation Commission continue to put a plan together in talking about a referendum - Councilmember Motin had concerns. Mr. Klaers stated that one of his goals is to equalize on an annual basis the total expenditures for equipment and vehicles. He stated that in the future as much as possible should be moved into the General Fund in order to decrease the dependence on Equipment Certificates. He stated that either some items need to be moved to the General Fund or some requests eliminated in order to achieve the goal to decrease this dependence. Mr. Klaers stated that there is not any funding in the CIP for the YMCA project, a community center, a senior center, or for a contribution to an arts building. Mr. Klaers stated that some upcoming street issues the council will need to discuss and prioritize include · How large of a Pavement Rehabilitation Program should be done every two years · Should we do a signal at the School Street and Lions Park Drive entrance · The Highland Road project. Councilmember Motin asked what the plan was for Dodge Avenue. Mr. Klaers stated that Highland and Dodge Avenues need to be discussed at a meeting dealing with transportation issues. He doesn't know when MnDot will work on Highway 169. Mayor Klinzing stated that MnDot wouldn't work on some highways unless they are on a Federal appropriations list. She feels that the City should try to get Federal Appropriations for Highway 169. . . . City Council :Minutes April 11, 2005 Page 7 Mr. Klaers asked the Council how they envisioned Dodge Avenue. Councilmember Morin stated that an overlay was sufficient until we get a long-term plan for that area. Mr. Klaers will put this into the plan and the Council can make changes when the project moves forward (planned for 2006). Mr. Klaers stated that a full-scale signal at School Street and Lions Park entrance might be needed. He asked if the Council wish to pursue this option. Currently the CSO's are monitoring traffic at peak school times. Mr. Klaers will put this project on the list to come back and discuss. Another area worth discussion may be Waco Street and if Council wishes to complete the improvement project down to County Road 30. Mr. Klaers asked for direction to use the Landfill Host Fee for future land acquisition. He stated that Sherburne County has given the City the right of first refusal on the fairgrounds property if that property would ever become available. Council questioned whether we would need the whole 30 acres and whether we could do something financially at that time. Mayor Klinzing asked if we ever see this Landfill Host Fee as on-going revenue for the city to fund items with a spending tail. Ms.)ohnson stated that she wouldn't want to see this happen long-term unless there was a plan to fund these spending tails with other revenues at some point; we don't want to rely on the host fee because the fee will no longer be collected when the landfill is full which, unless it is expanded, is not too far in the future. It was the consensus of the Council to set aside the Landfill Host Fee for future land acquisition or a special building project but to have flexibility and not designate these monies for any specific project. The Council discussed proposed equipment expenditures. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER FARBER TO PURCHASE IN 2005 USING EQUIPMENT RESERVES THE FOLLOWING: A $30,000 PARKS DEPARTMENT TRUCK; A $72,000 SNOWBLOWER; AND TO USE MONEY NOT TO EXCEED $25,000 FOR STREET SWEEPER RENTAL SO THAT TWO SWEEPERS CAN BE TESTED BEFORE ONE IS PURCHASED. MOTION CARRIED 5-0. MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY COUNCILMEMBER MOTIN TO ADOPT THE CIP PLAN AS PRESENTED. MOTION CARRIED 5-0. 6. Other Business None 7. Staff Updates None 8. Adjournment . . . City Council Minutes April 11, 2005 Page 8 There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 9:44 p.m. Joan Schmidt, City Clerk