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11-05-2007 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 5, 2007 Members Present: Mayor Klinzing, Councilmembers Zerwas, Farber, Gumphrey, and Moon Members Absent: None Staff Present: City Administrator Lori Johnson, Finance Director Tim Simon, City Attorney Peter Beck, Chief of Police Jeff Beahen, Public Works Director, Terry Maurer, Senior Center Coordinator Sue Kostanshek, Librarian Mick Stoffers, Planning Manager Jeremy Barnhart, Economic Development Director Cathy Mehelich, Environmental Administrator Rebecca Haug, Street Superintendent Phil Hals, Ice Arena Manager Rich Czeck, Liquor Dave Potvin, WW TP Chief Operator Gary Leirmoe, Human Resource Representative Lauren Wipper, Accountant Lori Stich, and Recording Secretary Jennifer Johnson 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 6:30 p.m. by Mayor Klinzing. 2. Consider 11 /05 /2007 Agenda Ms. Johnson added Department Head Update to Staff Reports. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 5-0. 3. Consider Consent Agenda MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER ZERWAS TO APPROVE THE FOLLOWING CONSENT AGENDA: 3.1. COUNCIL MINUTES ^ OCTOBER 8, 2007 • OCTOBER 15, 2007 3.2. CHECK REGISTER 3.3. MASSAGE THERAPIST LICENSES A. GABRIEL TANDOH - SIMONSON'S DAY SPA AND SALON B. KELLY ROSS -JOHN JOSEPH SALON 3.4. RESOLUTION 07-86 LIFTING THE MORATORIUM OF THE ISSUANCE OF BUILDING PERMITS FOR "ADVERTISING SIGNS" AND/OR SIGNAGE THAT UTILIZES "ELECTRONIC r CHANGEABLE COPY" City Council Minutes November 5, 2007 Page 2 3.5. RESOLUTION 07-87 ACKNOWLEDGING CONTRIBUTION TO THE ELK RIVER FIRE DEPARTMENT FROM FIREMAN'S • FUND 3.6. ORDINANCE 07-14 AMENDMENT SECTION 2-215, TITLED "MEETINGS AND RULES OF PROCEDURE" UNDER DIVISION 2, TITLED "HERITAGE PRESERVATION COMMISSION" OF THE CITY OF ELK RIVER CODE OF ORDINANCES, AND ORDINANCE 07-15 AMENDING SECTION 2-355, TITLED "MEETINGS AND RULES OF PROCEDURE" UNDER DIVISION 8, TITLED "ENERGY CITY COMMISSION" OF THE ELK RIVER CITY CODE OF ORDINANCES ^ RESOLUTION 07-88 ESTABLISHING HERITAGE. PRESERVATION MEETING DATES ^ RESOLUTION 07-89 ESTABLISHING ENERGY CITY MEETING DATES 3.7. SPECIAL ASSESSMENT REAPPORTIONMENTS 3.8. RENEW OF DEFERMENT OF CONSTANCE MOLDENHAUER'S WESTERN AREA ASSESSMENT (PID# 75- 468-0255) AND EVA HURRAY'S HOLT & 4TH STREET ASSESSMENT (PID#75-404-0111) ASSESSMENTS 3.9. RESOLUTION 07-90 AND 07-91 ACKNOWLEDGING CONTRIBUTIONS TO THE CITY OF ELK RIVER PARKS AND RECREATION DEPARTMENT 3.10. NOTICE OF QUORUM FOR POST OFFICE UPDATE 3.11. JEFF WERNER FOR AN EXTENSION OF PRELIMINARY PLAT APPROVAL OF CRANBERRY RIDGE, CASE N0.06-15 MOTION CARRIED 5-0. 4. Oven Mike T- No one appeared for Open Mike. 5.1. Senior center "Sponsor a Key Letter Ms. Kostanshek presented the staff report. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE SENIOR CENTER "SPONSOR A KEY" LETTER FOR A FUNDRAISER TO PURCHASE A BABY GRAND PIANO FOR THE NEW ACTIVITY CENTER. MOTION CARRIED 5- 0. 5.2. Consider Revised Library Community Room Use Policy Ms. Stoffers presented the staff report. She stated the updated polity was approved by the Library Board and they were asking for council approval. Mayor Klinzing asked for clarification on making reservations more than three months in advance. • City Council Minutes November 5, 2007 Page 3 Ms. Stoffers explained they would like to see that library programs take priority in • scheduling and therefore, a single reservation maybe made no more than three months in advance. Councilmember Motin asked about religious groups using the community room, and also asked that the policy be made available on the website for access by the public. Ms. Stoffers stated they would also like to see the polity on the website. She clarified the policy spells out the fact that religious groups may not use the room for prayer or other worship purposes. Councilmember Farber asked if a deposit was required to reserve the room. Ms. Stoffers stated the $50 deposit was mainly held to ensure that if any damage was done to the room, the money would be used towards repairs, etc. Councilmember Farber stated he felt $50 was too much for a damage deposit. Councilmember Zerwas commented that he felt the deposit was a way to hold the person reserving the room responsible for making sure no damage was done. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER ZERWAS TO APPROVE REVISED LIBRARY COMMUNITY ROOM USE POLICY AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. 5.3. Parking Permit Options and Resolution Ap rte oving_Limited Use Permit Chief Beahen began by presenting the staff report, outlining the two options staff prepared for council to review and consider. He explained both Option I and Option II. Councilmember Motin handed out a memo to the council and staff regarding the King Avenue lot parking and his suggestions. He doesn't favor limiting overnight parking to 26 spaces. He suggested the 9 residents get employee permits and have unrestricted overnight parking from Apri11G -November 14. He also suggested year-round three hour parking from 5 a.m. to 6 p.m. so that overnight, non-employee/resident packers must be gore before 8 a.m. He suggested the use of large signs at the entrance to the King Avenue Lot, explaining no overnight parking, and during snow season, as well as additional signage to allow the 26 spots overnight parking from 2 a.m. to 5 a.m. Mayor Klinzing asked about the differences between Councilmember Motin's option and Option II. Councilmember Motin explained that his memo asks for the overnight hours to be from 6 p.m. to 8 a.m. along with guaranteed parking spots for the 9 residents. Councilmember Farber agreed that there is a parking problem in the downtown area and it's become complicated. He suggested throwing everything out and having no enforcement in place. He recommended the 26 guaranteed parking spots in the King Avenue lot which would allow for snow removal but let everything, else go. He suggested the employers can be • responsible for their employees parking in certain areas and they'll need to remove their cars before a snow emergenry goes into effect. City Council Minutes November 5, 2007 Page 4 Councilmember Gumphrey suggested not throwing all the plans away and trying one of • these options, stating staff spent a considerable amount of time trying to come up with a solution. Councilmember Farber asked for comments from staff on his option. Mr. Maurer stated from a snow removal standpoint, the concern was losing the first night of plowing if the snowfall ends in the middle of the night, as well as possible risk of damage to cars by a snowplow. Coundlmember Farber asked if the city would then keep normal snow removal hours from November to April and not assign special permits, not have employee parking, and not have 2 or 3 hour parking. Mr. Maurer stated if they can restrict the overnight parking in the snow season to 26 spots, then he could guarantee a clear lot by the following morning for customers and employees. Chief Beahen expressed his concerns with employees who would abuse the open parking during the day, and suggested empowering business owners to enforce their own employees to park in certain areas. He suggested amending Option I, section (d). Councilmember Motin thought the residents could receive a permit and use the 26 spots available so as to be treated the same as an employee. Councilmember Farber asked Councilmember Gumphrey to clarify his comment at the end of the last meeting about the 9 downtown residents receiving guaranteed spots. Councilmember Gumphrey stated he agreed that was his statement but then council suggested giving them 9 employee parking permits which would guarantee them 24 hour P~~g• Councilmember Farber states other businesses in town like Target tell their employees where and where not to park, and the city isn't involved in enforcing their parking. He feels like the downtown businesses should be in charge of controlling where their employees park. Councilmember Gumphrey agreed with the comments of Councilmember Farber but stated Target is one large business and there are many small businesses. in downtown. He felt council needs to pick an option and move forward. Mayor Klinzing asked Councilmember Motin to incorporate his comments into one of the. two options presented. Counaltnember Motin stated thought his suggestions fit better with Option II, but to use whichever option the council felt that his suggestions fit. Chief Beahen stated the snow season is almost upon us and we need to make a decision soon. He suggested taking some of Councilmember Motin's suggestions and incorporating them into Option I but make changes to section d. He felt Option II restricts parking from the general part of the lot to those areas that are posted in the winter months which he • didn't feel fit Councilmember Motin's criteria. City Council Minutes November 5, 2007 Page 5 • Councilmember Motin stated that he felt that was his criteria, to only parkin the 26 spots (or 28 spots with two handicap in the snow season). Chief Beahen stated Option II seemed to limit overnight parking year round which he was not in favor of. Councilmember Motin was fine with no restrictions from November to April, stating that with an employee permit, residents would be allowed overnight parking even in the winter months, and had priority to park in the 26 spots. Chief Beahen stated the 9 spots were not in the employee area, and police do not enforce the employee parking after 6 p.m. Councilmember Motin stated in this case, they would have a sign even in the winter stating no overnight parking unless you have an employee permit. Chief Beahen stated there could be some confusion about an employee permit being given to the residents. Councilmember Motin doesn't believe in giving residents dedicated year-round parking because initially they didn't have that. He stated he is willing to accommodate the residents to have overnight parking anytime they want; they just need to use the employee parking permit to do so. MOVED BY COUNCILMEMBER GUMPHREY TO APPROVE OPTION I. There was no second to the motion, the motion died for lack of a second. Counciltnember Zerwas stated he would like Councilmember Farber to make his motion. MOVED BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER ZERWAS TO HAVE NO RESTRICTIONS IN THE SING AVENUE DOWNTOWN PARSING LOT, AND HAVE NO ASSIGNED EMPLOYEE PARKING, AND ONLY ALLOW FOR THE 26 SPOTS AS YEAR ROUND, FIRST COME FIRST SERVED PARKING SPOTS, AND OVERNIGHT PARSING ALLOWED BETWEEN APRIL AND NOVEMBER BUT NO PARSING FROM 2 A.M. TO 6 A.M. BETWEEN NOVEMBER 15 AND APRIL 15. Mayor Klinzing asked for clarification of the 26 spots year round. Councilmember Farber stated no overnight parking for employees like the entire city. Mayor Klinzing clarified there would be no restriction in the King Avenue lot except from November to April, 2 a.m. to 6 a.m. with the exception of 26 overnight spots. Councilmember Zerwas requested to have the dates coincide with the on-street snow removal dates already in place for the city, which are from November 15 to April 15. Chief Beahen asked for clarification on the removal of the time zones, whether they be on • the street or just in the parking lot. City Council Minutes November 5, 2007 Page 6 Councilmember Farber stated the whole downtown. He commented that they are spending too much time on how to control the businesses and their parking and until there is a • permanent solution the council needs to start with something. Mayor Klinzing commented that the business owners have brought concerns to the council about people parking without a time limit. Councilxnember Farber stated they've heard from employers telling employees to play the three hour game and the two hour game allowing employees to move their cars so they can stay closer to the back door. Mayor Klinzing asked Chief Beahen to comment on the current motion on the floor. Chief Beahen agreed with the mayor, stating with this motion, there may be some concerns from the downtown businesses, but that Councilmember Farber's idea may have some merit. He has received phone calls from businesses downtown and that every time we make changes, we upset 35% of the business owners. He stated it might be alright to try a proposal to meet everyone's needs. Mayor Klinzing asked if we have anything in the ordinance about length of time and what are the consequences for parking over that limit. Chief Beahen stated it is 24 hours. The CSO's regularly monitor the downtown area and chalk the tires on vehicles, and patrol the lots; if a vehicle is still there in 24 hours, they issue a citation. Councilmember Gumphrey stated he will oppose the motion because of concerns with the i number of businesses in the area that will have employees from other businesses parking in front of their businesses. Coundlmember Morin also stated he will oppose the motion, and feels he keeps hearing in the past year that the reason the council is going to do something is because they're tired of dealing with it. He feels the answer is to work until they find something that's acceptable, but he doesn't feel the answer is to throw up their arms and give up. He believes it's too soon with the number of new businesses in the downtown area to throw out everything and say there are no restrictions. He believes the issue is enforcement and education. Councilmember Farber stated he isn't fed up and did think it through, and he wasn't going to give up. He would like to revisit this after the end of the winter traffic season, stating it needs to be made easier. He thinks this would be a good way to start and it's becoming really complicated to know where to park and this would make it easier. Mayor Klinzing would like to support the motion but thinks the time limit restrictions should still remain in place, afraid that without restrictions they're opening themselves up for uses other than what they want due to the limited amount to parking available. Councilmember Zerwas stated with all the layers and rules this will make people stop and think about parking downtown and see how easy it is to park at Wal-mart. He commented about signs posted at each downtown lot being full of restrictions, rules, and requirements. Mayor Klinzing stated she is in favor of simplifying but there needs to be some limits in • place. City Council Mtnutes November 5, 2007 Page 7 Councilmember Gumphrey stated there was a motion on the floor. Councilmember Motin asked if they were to leave the three hour parking in place, eliminating the other restrictions and just make it a snow emergenry type of situation, would they use signs to state that it's a snow emergency and call into WCCO when it's time for people to move their cars. Chief Beahen commented that it would be possible to have a snow emergenry ordinance, but needs to be a 24 hour notice, and a delay in when they could plow. He felt Option I covers the needs of the snow removal in the same manner; the 26 cars would have 24 hours to move and the. lot would be plowed the next day. This would be more convenient then the mandatory notification of 5 media sources required for a snow emergenry. Mayor Klinzing asked to have the question called and if there was anything farther on this motion. Councilmember Farber commented that when the council starts limiting parking, they'll have other businesses where one and two hour limits are too restrictive. Mayor Klinzing and Councilmembers Gumphrey and Motin opposed. Motion fails 3-2. COUNCILMEMBER GUMPHREY MADE A MOTION APPROVING OPTION I AS PRESENTED. No second to the motion. Motion failed for lack of a second. Councilmember Gumphrey suggested that someone make a proposal tonight to resolve this. Mayor Klinzing suggested Chief Beahen propose an option. Chief Beahen stated if they chose Option I and changes to paragraph d) as follows: The north section of the King Avenue lot shall have twenty six (2G) posted spots designated "Snow Removal Parking Only, Nov. 15-April 15" 6 p.m. to 8 a.m. He stated to remove the nine additional spots for residents in the special district parking but to allow for nine permits which would allow them to park in the 26 spots and to also assign the 26 spots, and used during snow removal only, which tells the residents that if it snows over 1.5" or more before 6 p.m. on any given date the cars have to be in those spots or it will be in the wrong location. Councilmember Farber wondered if the council would consider extending parking hours in certain areas of downtown since the police have been receiving complaints from the newer businesses. Mayor Klinzing stated she would be open to having longer parking spots but would like to have some restriction in place. Chief Beahen stated the desire was for customers to park in the King Avenue lot if they • knew that they would be there a long period of time, although this isn't very convenient for those near the Bluff Block and can be problematic. City Council Minutes November 5, 2007 Page 8 Councilmember Motin asked what the current parking restrictions were now. • Chief Beahen stated the one hour in the front of Bank of Elk River on the north side of Main, and two hours on all the rest of the city streets with the exception of a few one hour spots in front of Kemper Drug. Counciltnember Farber asked what time frames the Bluff Block businesses looking for. Chief Beahen stated that many individuals throughout all of downtown have day long meetings and long appointments. The original reason the council changed the parking restrictions was that in the three hour zone allowed the employees to move their car 1.5 times a day in order to defeat the time ordinance. Councilmember Farber stated the employers need to monitor the employees and as a compromise he asked if they should return to three hour parking. Councilmember Gumphrey asked which option they were referring to. Councilmember Farber stated Option I. Councilmember Motin asked for clarification about snow removal and expressed concern with the language on the signs, and how one would know to move their car to one of the 26 spots. COUNCILMEMBER GUMPHREY MADE THE MOTION AND COUNCILMEMBER FARBER SECONDED TO APPROVE OPTION I WITH THE CHANGES MADE TO D) AS FOLLOWS: THE NORTH SECTION OF THE RING AVENUE LOT SHALL HAVE TWENTY SIX (26) POSTED SPOTS DESIGNATED "SNOW REMOVAL PARffiNG ONLY, NOV. 15-APRIL 15" 6 P.M. TO 8 A.M. ~ AND TO CHANGE THE ON-STREET HOURLY PARKING RESTRICTIONS TO THREE HOURS. MOTION CARRIED 5-0. 5.3. Methodology for Continuing Downtown Parking Analysis and Discussion of Up~r_ading the Parking Lot on North Side of TH 10 Mr. Maurer presented the staff report, and asked for direction from the council in accepting a methodology for conducting the parking studies. He stated staff would report back to council after each study and council can then decide if they would like to continue these studies after one year, or stop the studies before the year was over. MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE CONTINUATION OF THE DOWNTOWN PARKING ANALYSIS AS PRESENTED BY MR. MAURER. MOTION CARRIED 5-0. Mr. Maurer continued with the staff report, discussing reconstruction of the lot on the north side of Highway 10, which runs from Jackson on the east to the feed mill on the west. He stated the bituminous pavement is in poor condition and should be rebuilt; however, the concrete curb and gutter is still in good shape. He is proposing to close the driveway access closest to Jackson Avenue for safety reasons, replace all blacktop surface, and re-stripe the City Council Minutes November 5, 2007 Page 9 lot for an approximate cost of $80,000. He spoke with Bryan Adams, ERMU, who agreed to provide and install at no cost to the city the cobra-style lighting which was removed during the Deerfield 3~ street improvement project; these lights would be placed on the north side of the lot. Mr. Maurer stated this project could be incorporated into part of the downtown overlap project in order to achieve a competitive bid and funding could come from the Street CIP to cover this item. MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE RECONSTRUCTION OF THE BITUMINOUS SURFACE ON THE PARKING LOT NORTH OF HIGHWAY 10 FROM DOWNTOWN AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. Mr. Maurer presented the portion of the staff report regarding the requirement for the city to have a Limited Use Permit with MnDOT for the area of parking that is actually occurring on MNDOT right of way. This would require the city to have a limit use permit with MnDOT for the use of the right of way for parking purposes. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER ZERWAS TO ADOPT RESOLUTION 07-92 APPROVING A MINNESOTA DEPARTMENT OF TRANSPORTATION LIMITED USE PERMIT TO UTILIZE TRUNK HIGHWAY 10 RIGHT OF WAY FOR PARffiNG PURPOSES AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. 5.4. Resolution Entering into a Master Partnership Contract with the State of Minnesota • Mr. Maurer presented the staff report. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO ADOPT RESOLUTION 07-93 ENTERING INTO A MASTER PARTNERSHIP CONTRACT WITH THE STATE OF MINNESOTA AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. 5.5. Post Office Update Ms. Johnson presented the staff report. She stated the post office will be holding a community meeting on November 14, 2007, at 6:00 p.m. at the Elk River Library to discuss remodeling their current facility on Line Avenue in order to meet the needs of their carrier operation. They are also considering leasing an additional facility to expand their retail operation. Any comments can be directed to post office staff during the meeting. This meeting will also be posted on the city's website. Council had no questions regarding the meeting. 5.6. Discuss Council Worksession Agendas Ms. Johnson presented the staff report. She reminded council that the Worksession for November 13 is on Tuesday due to the Veteran's Day holiday on Monday. • Councilmember Farber requested to add to either meeting a discussion regarding Sherburne County's decision to move the Sherburne County Fair location to Becker by 2010. He City Council Minutes November 5, 2007 G. 7. 8. 9. Page 10 expressed his disappointment in the county's decision and lack of communication between city and county. He feels having the fair in Elk River is great for the city, since it is the county seat, and it won't be the same having it in Becker. He wondered why the citizens weren't asked as well. Councilxnember Gumphrey requested the item be put on a future Worksession. Mayor Klinzing recommended a joint meeting with the county to discuss the reasons for moving the fair to Becker. Mayor Klinzing stated she went to an annual meeting of the Ag Society and expressed the city's concerns with the fair moving, and made it very clear the city didn't support the change. She stated the county's resolution outlined the city taking land from them. She wasn't sure if that concern stemmed from the building of the YMCA, but they've never contacted they city. She stated County Commissioner Arne Engstrom voted no to move the fair, but Commissioner Rachel Leonard voted yes. She stated the fair board would like to see more activities run at that facility more then 4 days a year. Councilxnember Farber stated he was disappointed in Commissioner Leonard, expressing the importance of this issue with no dialog or explanation between the parties. Ms. Johnson stated she will contact County Administrator Brian Bensen to have a joint meeting with members of the county board and the city council, hoping to schedule it for the December 10 Worksession. She asked councilmembers to think of other topics that could also be discussed during the joint meeting. Councilmember Motin mentioned adding the topic from tonight's item 3.11 regarding the • council considering a polity on extending approved but not acted on preliminary plats, final plats, or conditional use permits. Ms. Johnson stated she will add this. item to the December Worksession. OTHER BUSINESS Councilmember Motin asked for clarification on item 5.3. regarding the motion made and the fact that it didn't specify the nine residents receiving employee parking permits. Mayor Klinzing clarified the nine residents will still receive employee parking permits. COUNCIL, UPDATES None. STAFF UPDATES Ms. Johnson presented the council with the resignation memorandum of Community Development Director Scott Clark, effective December 7, 2007. Ms. Johnson explained his resigning to take a similar position with the City of Columbia Heights. His last day of work will be November 21, 2007. Council will come back in December to discuss filling both his position and the economic development assistant position. WORKSESSION- staff adjourned to the U ertown Conference Room at 7:4G .m. • pP P City Council Miautes Page 11 November 5, 2007 • The meeting was re-adjourned at 7:54 p.m. 9.1. Health Insurance Update Ms. Wipper presented the staff report. Ms. Wipper stated the dental rates did not increase for 2008, but the health insurance rates went up significantly and therefore, the council is asked to consider terminating the contract with B1ueCross Blue Shield. She introduced the City's insurance brokers, Barry Rosenberg and Rick Nelson of Minnesota Insurance Services, who were present at the meeting. Mr. Rosenberg explained the bid received by HealthPartners, who offered renewal of the current plan designs at the lowest premium rates, which are 16-20% increases over 2007, and guarantee no more than a 16% rate increase for 2009. Councilmember Farber asked why cities continue to see high rate increases from pear to year, and commented that the insurance companies can't be losing money each pear. Mr. Rosenberg agreed but stated city employees participating in group health insurance had a large number of claims in the last year. He explained the HDHP with the HSA, and stressed the importance of how these plans are funded. The premium rates quoted by HealthPartners fora $2,200 deductible plan are 21.5% lower than the renewal rate for the $500 deductible plan. Mr. Rosenberg continued to explain the plan has to be funded properly in order for this to • be successful. Mayor Klinzing asked how the city would accomplish this. Mr. Rosenberg stated you don't have to contribute much. For example, for single coverage, $59.23 a month could go into the HSA for a yearly total of $720 or a matching plan up to a certain dollar amount. Ms. Johnson stated that would require adjusting the budget but the incentive for employees to use the HSA would be good with the aty's contribution. Mayor Klinzing asked how that would be done. Mr. Rosenberg stated it takes from 12 to 20 employees to start this but are they qualified and willing to contribute their own money. He said there was a good turnout from employees at the meetings and they asked good questions. He discussed how an HSA is similar to an IR.A. Ms. Johnson commented that there is no control over which employees chose this plan. Mr. Rosenberg agreed. Mr. Nelson stated there is a challenge when you go with an HSA as it's a huge monthly increase. It gets people to see what they're spending. You need to look at it over a 12 month period, and HSA may make more sense. Employees need to educate themselves about their • health care costs. City Council Minutes Page 12 November 5, 2007 Councilmember Motin asked if they should do an employee match. • Ms. Johnson stated it depends on the employee, but the potential is there for 120 employees to participate. She indicated the council needs to decide first if they should switch over to HealthPartners, and second if they should approve an HSA plan and if so, do they fund it with a match. Councilmember Gumphrey stated employees have the option of changing their plan yearly. He wondered what would happen after a year or two if employees would get out of the HSA plan. Mr. Rosenberg indicated that staff needs to stress that the employees are putting their own money into the plan. Councilmember Gumphrey commented that personally he hadn't heard good things about HSA plans. Councilmember Zerwas agreed with Councilmember Gumphrey, and asked if the council should increase the city's contribution towards health insurance, but bump up the amount an additional 3% for all employees. Coundlmember Gumphrey asked what effect this would have on the budget. Ms. Johnson stated it would cost approximately $8,000 to $9,000 per percent, so for 3% it would cost the city approximately $24,000 - $27,000. Councilmember Gumphrey asked what effect the change from BCBS to HealthPartners • would have on employees. Mr. Rosenberg stated that it's an open access program similar to what the employees have now, and the coverage should be very broad. Councilmember Motin asked if they should take another approach by removing the $250 deductible option and give employees the option to do a HSA plan, stating this plan gives employees that participate in this plan the option of saving for future health care expenses. He asked what the city could contribute towards health care expenses. He also asked if there were concerns with switching between BCBS to HP. Ms. Wipper stated she doesn't anticipate any problems or issues with the change in health care providers. Ms. Johnson stated it is a major concern of hers as well to keep switching from one insurance company to another, and HP did have a broad network so employees shouldn't have a problem with locating their doctor in the network. She stated it was a high priority of the city's to ensure the employees don't have to switch doctors. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE TERMINATION OF THE GROUP HEALTH INSURANCE CONTRACT WITH BLUECROSS BLUESHIELD OF MINNESOTA AND ENTER INTO GROUP HEALTH • INSURANCE CONTRACT WITH HEALTHPARTNERS AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. City Council Minutes November 5, 2007 Page 13 Mayor Klinzing asked councilmembers to consider the motion to approve the $25 co-pay plan along with the $500 HDHP plan. Councilmember Gumphrey asked for clarification of the out-of-pocket costs for the different plans and Mr. Rosenberg answered those questions. Ms. Wipper stated an HSA is similar to an IRA and employees may benefit from this type of plan. Councilmember Motin commented that the money going into this HSA is tag-free going in and coming out if used for qualifying health care expenses. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY MAYOR ffi.INZING TO APPROVE THE $25 CO-PAY, $500 DEDUCTIBLE PLAN, AND $2200 HDHP W/HSA PLAN AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 5-0. Mayor Klinzing asked about the 3% dty contribution and whether or not to increase the funds provided to employees for their flexible benefits plan with an HSA match. Council discussed the city's contribution and the possibility of matching funds for the HSA. Ms. Johnson asked if they had a set dollar amount in mind. She stated there were multiple ways of doing this and she would have staff prepare some options and return at the next Worksession for further discussion. Councilmembers Farber and Motin asked for staff to prepare some options on paper. Ms. Johnson stated they will return next week with options for a one time contribution versus an annual amount. Councilmember Gumphrey asked if the city had ever discussed health plan options with other brokers because he felt the city should consider using other brokers. Ms. Johnson stated they have considered this and would make a change directed by council. 9.2. 2008~et A. Enterprise Funds Garbage Fund: Mr. Simon presented the staff report. Ms. Haug was present to discuss the goals for the garbage budget, which include assisting business owners in rerycling more items, as well as developing an organic waste collection program, in which the waste can be turned into compost. Wastewater /Sewer: Mr. Simon presented the staff report on the wastewater and sewer funds. Also present was Jessica Cook from Ehlers & Associates, who recognized the excellent financial status of this fund was operating, suggesting a modest 4% rate increase for 2008, allowing the dty to pay for future expansions using cash reserves. City Council Minutes November 5, 2007 Page 14 Liquor Fund: Mr. Simon presented the staff report on the liquor store budget. Mr. • Potvin was present to provide goals for the stores, as well as outlining future profit uses for other city departments. MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO APPROVE THE TRANSFER $9,500 FROM THE MUNICIPAL LIQUOR FUND TO THE ICE ARENA FUND FOR A ZAMBONI BATTERY REPLACEMENT. MOTION CARRIED 5-0. B. General Funds Ms. Johnson provided the council with a handout outlining the general fund budget adjustments, and to prepare for the truth in taxation hearing scheduled for December 3, 2007. The council concurred with the adjustments. Mr. Simon also provided a capital improvement plan for the council to review. 9.3. Gravel Mining Hours Ms. Haug presented the staff report and was available to answer questions from the council. Councilmember Farber asked at what time Tiller was allowed to start operations in the morning. Ms. Haug stated 4 a.m. and clarified that the only time the city can amend hours of operation would be through a CUP renewal. • Councilmember Gumphrey requested the ordinance be changed to allow for hours on Saturdays to be from 8 a.m. to 4:30 p.m. instead of allowing a 12 hour day. Ms. Haug stated this could be achieved through the CUP renewal process. Councilmember Zerwas requested that Ms. Haug and other staff hold discussions with gravel operators, and Ms. Haug agreed to setup these meetings. Ms. Johnson stated they will draft an ordinance with these changes after these meetings. 9.4. Landfill Update Staff provided an update to the council on the landfill. Ms. Johnson stated they haven't received a written request for expansion from the landfill but one is expected. The intent tonight was to inform the council of the process the city would go through if an expansion request is received. Ms. Haug said the State of Minnesota granted approval on the Environmental Impact Statement, which states that everything is environmentally fine; the state will then draft a permit for this expansion. The city must also grant approval. Staff explained that a comprehensive plan amendment needs to be approved as the land is guided for gravel mining. If the council approves the rezoning, the license and conditional use permit would be the next items requiring counal approval. Sherburne County will also need to act on granting a license if the city rezones the property. • City Council Minutes November 5, 2007 Page 15 • The council discussed the benefits of the landfill and how the landfill affects the surrounding land uses and future development. Ms. Haug responded to questions about the volume and source of garbage going to the landfill, the life of the existing landfill, and the size and life of the possible expansion. Ms. Johnson stated staff will keep council informed of future developments. 10. Adjournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 9:39 p.m. Minutes px aced b~ ' er Johnson. f~ ~~-- Tina Allard City Clerk • •