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08-12-2002 CC MINMEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 12, 2002 Members Present: Members Absent: Staff Present: Mayor Klinzing, Councilmembers Dietz, Kuester, Mot_in, and Tveite None City Administrator Pat Klaers, City Engineer Terry Maurer, Finance Director Lot4 Johnson, Building and Zoning Administrator Steve Rohlf, Investigator Kluntz, Street and Park Superintendent Phil Hals, Police Chief Tom Zerwas, Assistant Police Chief Jeff Beahen, Sergeant Tom Tyler, Liquor Store Manager Dave Potvin, and City Clerk Sandra Peme Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:20 p.m. by Mayor Kdinzing. Consider August 12, 2002 Agenda COUNCILMEMBER TVEITE MOVED TO APPROVE THE AGENDA. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Consider Consent Agenda COUNCILMEMBER TVEITE MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 3.2. 3.3. 3,4. 3.5, 3.6. 7/22/2002 CITY COUNCIL MINUTES CHECK REGISTER FINAL PAY ESTIMATE #1 TO VISU-SEWER CLEAN & SEAL, INC. IN THE AMOUNT OF $62,829 FOR SEWER LINING PROJECT RESOLUTION 02-69 APPOINTING ELECTION JUDGES FOR THE PRIMARY ELECTION ON SEPTEMBER 10, 2002 ACCEPT RESIGNATION OF DONNA MALECHA, SECRETARY/RECEPTIONIST AND AUTHORIZE STAFF TO GO THROUGH A TEMPORARY AGENCY FOR REPLACEMENT AUTHORIZE TEMPORARY ON-SALE LIQUOR LICENSE FOR CHURCH OF ST. ANDREW FOR SEPTEMBER 22, 2002 AUTHORIZE EXPENDITURE OF APPROXIMATELY $3,000 FROM THE CAPITAL OUTLAY BUDGET CATEGORY TO FUND CARPETING AND SHELVING FOR THE LIBRARY COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Open Mike City Council Minutes August 12, 2002 Page 2 5.1. 5.2.A. 5.2.B. Mr. Roger Bengston of 374 Baldwin indicated that his sewer backup problem still has not been resolved regarding the City's responsibility. He indicated that his insurance company would not cover the costs. Finance Director LoriJohnson indicated that the League of Minnesota Cities has reviewed the issue for a second time and again has denied the claim. The Mayor indicated that the City would do further research and contact Mr. Bengston at a later date. Consider Hiring Environmental Assistant Stephen Rohlf recommended that the Council hire Rebecca Haug for the position of Environmental Assistant. COUNCILMEMBER TVEITE MOVED TO HIRE REBECCA HAUG AS THE CITY'S ENVIRONMENTAL ASSISTANT WITH THE FOLLOWING CONDITIONS: · STARTING DATE -AUGUST 12, 2002 · EXEMPT EMPLOYEE · STARTING SALARY $41,000/YR · COST OF LIVING INCREASE IN JANUARY 2003 · ORIENTATION PERIOD ENDING ON FEBRUARY 13, 2003 · BASED ON A COMPETENT PERFORMANCE REVIEW STEP INCREASE WILL BE GIVEN EFFECTIVE JULY 1, 2003 · STEP INCREASE WILL BE BASED ON A COMPARABLE WORTH STUDY BEING DONE FOR THE POSITION · STEP INCREASE TO BE RETROACTIVE TO JULY 1 IF COMPARABLE WORTH RESULTS ARE NOT AVAILABLE IN TIME FOR THE STEP INCREASE COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Consider Resolution Authorizing the Execution and Delivery. of a Lease Agreement and Continuing Disclosure Undertaking (,Series 2002A Bonds) Consider Resolution Authorizing the Execution and Delivery. of a Supplement to Lease Purchase Agreement and continuing Disclosure Undertaking (,Series 2002B Bonds) Finance Director Lori Johnson reviewed the staff report regarding the issuance of bonds for the public safety building and the addition to city hall (Elk River Municipal Utilities addition). She noted that there would be a lease agreement between the EDA and the City as the EDA is the issuer of the bonds. She further noted that the City would be bound by the lease to make all debt payments. Loft indicated that the EDA adopted both resolutions authorizing the issuance of bonds and the lease agreement. Lori Johnson indicated that Moody's has upgraded the City's bond rating to A2. Mark Ruff of Ehlers and Associates presented the Mayor with a certificate showing that the City's bond rating has been increased from an A3 to an A2. City Council Minutes Page 3 August 12, 2002 Mark Ruff of Ehlers and Associates reviewed the results of the bond sale. He noted that Piper Jaffray was the Iow bidder for the public safety facility at 4.4124% and that Morgan Stanley Dean Witter was the low bidder for the city hall addition at 4.695%. COUNCILMEMBER TVEITE MOVED TO ADOPT RESOLUTION 02-70 AUTHORIZING THE ISSUANCE OF PUBLIC SAFETY BUILDING LEASE REVENUE BONDS SERIES 2002A AND THE EXECUTION AND DELIVERY OF A LEASE AGREEMENT, A MORTGAGE AND SECURITY AGREEMENT, AND INDENTURE OF TRUST ON OTHER DOCUMENTS IN CONNECTION THEREWITH. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER MOTIN MOVED TO ADOPT RESOLUTION 02-71 AUTHORIZING THE ISSUANCE OF CITY HALL EXPANSION REVENUE BONDS SERIES 2002B AND THE EXECUTION AND DELIVERY OF A SUPPLEMENT TO LEASE PURCHASE AGREEMENT AND A SUPPLEMENT TO TRUST INDENTURE IN CONNECTION THEREWITH. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.3. Consider Zane Avenue Improvements, Assessment Hearing City Engineer Terry Maurer gave a presentation on the proposed assessments for the Zane Avenue Improvement Project. Terry Maurer stated that assessed property owners have the fight to appeal their assessment. He indicated that in order to preserve their rights to appeal, the property owner must submit a written objection to the Mayor or City Administrator at or before the assessment hearing. Mayor Klinzing opened the assessment hearing. There being no one for or against the matter, Mayor Fdinzing closed the public hearing. Resolution Determining Assessed cost of Improvement and Ordering Preparation of Proposed Assessment Roll COUNCILMEMBER TVEITE MOVED TO ADOPT RESOLUTION 02-72 DETERMINING ASSESSED COST OF IMPROVEMENT AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL IN THE MATTER OF THE ZANE AVENUE IMPROVEMENT OF 2002. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Resolution Adopting Final Assessment Roll COUNCILMEMBER MOTIN MOVED TO ADOPT RESOLUTION 02-73 ADOPTING FINAL ASSESSMENT ROLL IN THE MATTER OF THE ZANE AVENUE IMPROVEMENT OF 2002. COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 5-0. City Council Minutes August 12, 2002 5.4. Consider 175~ Avenue Improvements, Public Improvement Heating and Assessment · Heating Page 4 City Engineer Terry Maurer gave a presentation on the proposed improvements and assessments for 175th Avenue. The City Engineer noted that some property owners gave easements to the city and some property owners requested payment for their easements. Terry indicated that credit has been given toward the assessment for those property owners who gave the city their easements. The credit is equal to the original minimum damage assessment amount plus six percent inflation from 2000. Terry Maurer stated that assessed property owners have the right to appeal their assessment. He indicated that in order to preserve their rights to appeal, the property owner must submit a written objection to the Mayor or City Administrator at or before the assessment hearing. Mayor ICdinzing noted that the City has received four written assessment appeals: Ron and Sue Myhre - 10022 175~ Avenue NW · Lori and Steve Collins - 10046 175t~ Avenue NW · William and Geraldine Graham - 17451 Tyler Street · Michael and Diane Btinza - 10505 175~ Avenue NW Mayor Klinzing opened the public improvement heating and the assessment hearing. Diane Brinza - 10505 175t~ Avenue NW - Indicated that the assessment notification process was confusing. She further noted that she felt the project was being done because of the proposed development and felt the developer should be responsible for the assessment. Ron Myhre - 10022 175th Avenue NW - Questioned why Cargill and MnDOT were not included in the assessment. Indicated that he lives on a corner lot and was recently assessed for the Fillmore project and felt he should not be assessed for two projects. Mary. Monte - 17525 Polk Street - Questioned what the developer would be paying for and questioned the timing of the trunk assessment. Jim Monte - 17525 Polk Street - Questioned when the project would start and requested to be notified when natural gas would be available. Dennis Chuba - 10451 175th Avenue NW - Questioned who would be responsible for restoration of trees, driveways, fences, etc. and if trunk assessments would be put on the properties in the future. Ijaz Osmund - 10616 175t~ Avenue NW - Stated that he was unclear about the plans for sewer. He further noted that he would like to be more informed of the process and what to expect in the future. Indicated his concern with the potential for speed problems. Also questioned whether the assessment schedule could be extended to ten years. Lori Collins - 10046 175t~ Avenue NW - Questioned where the assessments could be paid. There being no further comments, Mayor IClinzing closed the public hearing. City Council Minutes August 12, 2002 Page 5 5.4.A. Resolution Ordering the Improvement COUNCILMEMBER TVEITE MOVED TO ADOPT RESOLUTION 02-74 ORDERING THE IMPROVEMENT IN THE MATTER OF THE 175TM AVENUE IMPROVEMENT OF 2002. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.4.B. Resolution Adopting Final Assessment Roll COUNCILMEMBER TVEITE MOVED TO DENY THE APPEAL FROM WILLIAM AND GERALDINE GRAHAM - 17451 TYLER STREET BASED ON THE FACT THAT THE VALUE TO THE PROPERTY IS GREATER THAN THE ASSESSMENT. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER TVEITE MOVED TO DENY THE APPEAL FROM LORI AND STEVE COLLINS - 10046 175TM AVENUE NW BASED ON THE FACT THAT THE VALUE TO THE PROPERTY IS GREATER THAN THE ASSESSMENT. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER TVEITE MOVED TO DENY THE APPEAL FROM RON AND SUE MYHRE - 10022 175TM AVENUE NW BASED ON THE FACT THAT THE VALUE TO THE PROPERTY IS GREATER THAN THE ASSESSMENT. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCILMEMBER TVEITE MOVED TO DENY THE APPEAL MICHAEL AND DIANE BRINZA - 10505 175TM AVENUE NW BASED ON THE FACT THAT THE VALUE TO THE PROPERTY IS GREATER THAN THE ASSESSMENT. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0 Finance Director LoriJohnson addressed the issue of extending the payments to ten years. She indicated that a request must be made in writing if the property owner wants to change the assessment payment period to ten years. COUNCILMEMBER MOTIN MOVED TO ADOPT RESOLUTION 02-75 ADOPTING THE FINAL ASSESSMENT ROLL IN THE MATTER OF THE 175TM AVENUE IMPROVEMENT OF 2002 AND THAT CITY STAFF SEND LETTERS TO IMPACTED PROPERTY OWNERS ADVISING THEM OF THEIR RIGHT TO EXTEND THE PAYMENT PERIOD TO TEN YEARS, PROVIDED THE PROPERTY OWNER RESPONDS IN WRITING BY SEPTEMBER 15. COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.5. Consider 175th Avenue Improvement Construction Bids City Engineer Terry MaUrer indicated that the City received seven bids for the 175th project. He noted that two of the bids were non-responsive because they did not comply with the bid requirements. Mr. Maurer recommended that these two bids be rejected. The City City Council Minutes Page 6 August 12, 2002 Engineer recommended that the Council award the bid to the low bidder - S.R. Weidema, Inc. in the amount of $729,435.30. COUNCILMEMBER TVEITE MOVED TO ADOPT RESOLUTION 02-76- ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE 175x~ AVENUE IMPROVEMENTS OF 2002. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.6. Consider Resolution Accepting Bid and Authorizing Execution of Contract in the Matter of the Orono Parkway Improvements of 2002 City Engineer Terry Maurer indicated that he received four bids for the re-bid on the Orono Parkway project. Terry recommended awarding the bid to the low bidder, Jay Brothers, Inc. in the amount of $98,204. He indicated that the Orono Parkway improvements Will cost $74,402.50 and the remaining $23,801.50 is for the Evans Street/193rd Avenue improvements. COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 02-77- ACCEPTING BID AND AUTHORIZING EXECUTION OF CONTRACT IN THE MATTER OF THE ORONO PARKWAY IMPROVEMENTS OF 2002. COUNCILMEMBER KUESTER SECONDED THE MOTION. THE MOTION CARRIED 5-0. The Council recessed at 8:00 p.m. to the training room for the budget Worksession. 6. Budget Worksession The Council reconvened in the training room at 8:05 p.m. Initiative Foundation The City Council heard a presentation from Connie Mareyes regarding a request for funding from the Initiative Foundation. Ms. Mareyes stated that the request is for $5,000 per year for 5 years. She further noted that any money the City gives will be matched by the McKnight Foundation. It was the consensus of the Council to postpone a decision on this request until after the City Council has a chance to consider the budget. Councilmember Motin indicated that the City should have a policy on city contributions. Mayor IGinzing felt that the EDA should consider this request. It was the consensus of the Council to have the EDA consider the request. Westbound Liquor Store City Council discussion took place regarding the potential for a Westbound Liquor Store. The City Administrator recommended that the city not proceed with a Westbound Liquor Store at this time and that another feasibility study be considered within two years. The Council concurred with staff's recommendation. City Council Minutes August 12, 2002 Page 7 Police Liaison Program The Chief of Police reviewed the issue of the possibility of the School District dropping the City's police liaison program and contracting the services through the Sherbume County Sheriff at no charge. The Police Chief stated that the Elk River Police Department wants to keep the program with the City as the City and the students receive many benefits from the program. The Chief indicated that the School is requesting that the City provide the program free of charge or they will contract with the County for the service. The Chief indicated that he would be willing to give up the drug enforcement officer to keep the liaison program. Assistant Chief Beahen distributed a survey of police/school district liaison contracts. The survey showed that there were very few school districts that did not pay some amount for this service. Councilmember Dietz noted that when the five-year contract was signed in 1999, it was the intent of the city and school district to renegotiate the contract if the crime levy increased beyond $2.00 per capita. He indicated it was not the intent that the program be dropped. Councilmember Dietz further noted that the city has provided liaison services for the students from other cities in the County for free in the past. Cindy Lovelette, president of the parent liaison program at Vandenberge indicated that having the Elk River officers in the schools makes a noticeable difference with the students in the schools. Mayor Klinzing indicated that the City places a high priority on the program. Councilmember Kuester talked about partnership and the value it creates. Councilmember Motin stated that there is fiscal irresponsibility by the County and the School District by considering having the program provided by the County, as it would cost the County more money to provide the program than if it were provided by the City. The Council expressed its disappointment that the School District did not honor the existing contract for police liaison services. COUNCILMEMBER MOTIN MOVED UNDER FULL PROTEST, BELIEVING THE SCHOOL DISTRICT SHOULD PAY FOR PART OF THE PROGRAM, BUT HAS PROBABALY DECIDED NOT TO, THAT THE CITY OF ELK RIVER SHALL FUND THE POLICE LIAISON PROGRAM IN ITS ENTIRETY EXCLUDING THE SECURITY DETAILS FOR EXTRACURRICULAR ACTIVITIES. MAYOR KLINZING SECONDED THE MOTION. THE MOTION CARRIED 5-0. Mayor Klinzing indicated that the City faces many budget constraints and could potentially face budget shortfalls, but that because the Council Members believe this is a great program for the citizens they are will/ng to provide the program to the School at no charge. General Fund Budget City Administrator Pat Klaers and Finance Director Loft Johnson reviewed with the City Council a preliminary levy sample. This levy sample showed the city going to the maximum levy limit as allowed by the state. The general fund, street replacement, library, and surface water management levies are included within this levy limit amount. Also, noted in the City Council Minutes Page 8 August 12, 2002 sample were the public safety lease bond levy amount and the 2003 equipment certificate amount. Discussion took place regarding the tax rate impact based on the preliminary levy sample if the city net tax capacity increased by five percent. It was noted that the city does not have the f'mal levy limit amount information from the state, nor does the city have the net tax capacity change from the county. The City Administrator reviewed the proposed revenues and expenditures for 2003. He indicated that revenues are projected at $7,571,200. The City Administrator indicated that the total general revenue fund expenditures are projected at $7,933,300, which is a 10% percent increase from 2002. He stated that the gap between requested expenditures and projected revenues is $362,100. City Administrator Pat Klaers reviewed the positions requested in the budget and asked the Council to consider which positions are priority as it will be impossible to fund all of the requests. The City Council also reviewed the requested expenditures for equipment and some possible changes and deletions to the requests. It was the consensus of the Council to discuss the budget in more in detail at the August 26 Council meeting. 6. Other Business School Facility Use Policy. The City Administrator indicated that the school is changing its facility use policy to state that any facility charging the school rent will in turn get charged rent by the school for use of their facilities. Councilmember Dietz requested information regarding school use of city facilities and what the school is being charged. 7. Staff Updates There were no staff updates 8. Adjournment There being no further business, Mayor Klinzing adjourned the meeting of the Elk River City Council at 10:42 p.m. s4/ cZ. Sandra Peine City Clerk