09-23-2002 CC MINMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 23, 2002
Members Present:
Members Absent:
Staff Present:
Mayor IClinzing, Councilmembers Dietz, Kuester, Motin, and Tveite
None
City Administrator Pat Klaers, Finance Director LoriJohnson, Fire Chief
Bruce West, Director of Economic Development Catherine Mehelich, and
City Clerk Sandra Peine
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called
to order at 6:00 p.m. by Mayor ICLinzing.
Consider 9/23/2002 Agenda
Item 3.5 was moved to item 4.6.
COUNCILMEMBER TVEITE MOVED TO APPROVE THE 9/23/2002
AGENDA AS AMENDED. COUNCILMEMBER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
Consider Consent Agenda
Councilmember Tveite requested the following amendment to the September 16, 2002
minutes on page 5, the last sentence of paragraph 8.
'~I-Ie stated that having a trail privately funded by the developer for pubHc use is a
good adtEdon for the commtmi~ as a whole due to the shortage o£parks."
COUNCILMEMBER DIETZ MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1o
3.2.
3.3.
9/16/02 CITY COUNCIL MINUTES - APPROVED AS AMENDED
9/16/02 EXECUTIVE SESSION COUNCIL MINUTES
CHECK REGISTER
PAY ESTIMATES
A. PAY ESTIMATE #2 TO S.R. WEIDEMA IN THE AMOUNT OF
$35,641.06 FOR WORK ON THE ZANE AVENUE
IMPROVEMENT
B. PAY ESTIMATE #1 TO QUALITY FLOW SYSTEMS, INC. IN
THE AMOUNT OF $41,420.00 FOR WORK ON THE JACKSON
AVENUE LIFT STATION
C. PAY ESTIMATE #1 TO JAY BROTHERS, INC. IN THE
AMOUNT OF $38,304.00 FOR WORK ON THE ORONO
PARKWAY PROJECT
City Council lVlmutes
September 23, 2002
4.1.
4.2.
Page 2
3.4.
3.5.
3.6.
3.7.
D. PAY ESTIMATE #1 TO S.R. WEIDEMA IN THE AMOUNT OF
$58,298.13 FOR WORK ON THE 175TM AVENUE
IMPROVEMENT PROJECT.
E. PAY ESTIMATE #1 IN THE AMOUNT OF $381,081.00 FOR
WORK ON THE PUBLIC SAFETY FACILITY
F. PAY ESTIMATE #1 IN THE AMOUNT OF $17,777.00 FOR WORK
ON THE CITY HALL EXPANSION PROJECT.
ROSS AND KAY BENGSTON SPECIAL ASSESSMENT REQUEST -
UPDATE
WORKER'S COMPENSATION INSURANCE RENEWAL - (MOVED TO
ITEM 4.6.)
RESOLUTION 02-89 APPOINTING ELECTION JUDGES FOR THE
GENERAL ELECTION
RESOLUTION 02-90 REQUSTING SHERBURNE COUNTY TO
IMPROVE THE ALIGNMENT OF COUNTY ROAD 33 EAST OF
TRUNK HIGHWAY 169 AND TO REQUEST MN/DOT TO PERFORM A
SPEED STUDY
COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Discuss Gas Franchise Renewal with Rehant Energy
The City Administrator stated that the 25-year non-exclusive gas franchise agreement with
Reliant Energy expires in April of 2003. He explained that the City has adopted the League
of Minnesota Cities ('LMC) model right-of-way ordinance and that the City would be
following the LMC model gas franchise ordinance for renewal of the franchise agreement
with Reliant Energy. Both model ordinances use the same definitions and terminology and
this is important, as the gas lines are located in the City right-of-way.
The City Administrator further noted that the Council has recently discussed the possibility
of adopting a gas franchise fee, which would be passed on to the customers. The City
Administrator discussed the possibility of using a portion of the gas franchise funds to fund
the street rehabilitation program.
The City Administrator introduced Ame Henclrickson, Program Manager for Local
Government and Economic Development, of Reliant Energy. Mr. Hendrickson discussed
the issue of gas franchise fees, explained how the fee is implemented, and responded to
questions from the Council. He also discussed how the franchise fee was received by
residents of other communities.
Consider Resignation of Cable Assistant
The City Clerk indicated that Assistant Cable Producer Greg Gengler has submitted his
resignation. She informed the Council that a full time position for the Assistant Cable
Producer has been requested in the 2003 budget. She indicated that she is reluctant to
advertise for a part time person knowing that there is a possibility that the Council will
authorize a full time position in 2003. It was the consensus of the Council that staff not
advertise for a full time position until it is certain that the position is approved by the
Council in the 2003 budget. The Council further indicated that staff could advertise at this
time for a part dine employee.
City Council Minutes Page 3
September 23, 2002
COUNCILMEMBER TVEITE MOVE TO ACCEPT THE RESIGNATION OF
ASSISTANT CABLE PRODUCER GREG GENGLER. COUNCILMEMBER
DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4.3. Consider Request to Hire Secretary/Receptionist
COUNCILMEMBER MOTIN MOVED TO HIRE CAROL HANSON AS
SECRETARY/RECEPTIONIST AT 22.5 HOURS PER WEEK BEGINNING
SEPTEMBER 26, 2002, AT PAY GRADE 5, STEP A, WITH A COST OF LIVING
INCREASE ON JANUARY 1, 2003. COUNCILMEMBER KUESTER SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
4.4. Accept Bid for PuNic Works Building Fire Protection System
Fire Chief Bruce West reviewed the staff report. He indicated that two quotes were received
to install the frre protection system in the public works building. He indicated that the lowest
quote was received from Brothers Fire Protection Company at $21,940.
COUNCILMEMBER MOTIN MOVED TO APROVE THE QUOTATION FROM
BROTHERS FIRE PROTECTION COMPANY FOR $21,940 FOR THE
INSTALLATION OF A FIRE PROTECTION SYSTEM IN THE PUBLIC
WORKS BUILDING. COUNCILMEMBER TVEITE SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
4.5. Review First Draft of the Ci.ty of Elk River Business Subsidy Policy.
Director of Economic Development Catherine Mehelich reviewed the £~rst draft of the
business subsidy policy. She noted that the purpose of establishing the policy is to set a
minimum wage floor for all types of projects that receive business subsidy assistance from
the City. Catherine indicated that the EDA and HRA have reviewed the policy and have
proposed a minimum wage floor of $15.00 per hour exclusive of benefits.
The Council reviewed the policy and concurred with the EDA and HRA regarding the
$15.00 minimum wage.
4.6. Workers Compensation Insurance
Finance Director Lori Johnson reviewed the proposal for workers compensation insurance.
She indicated that the Minnesota League of Cities is now offering workers compensation
insurance for boards and commissions and requested that the Council consider adding this
coverage to the City's policy.
COUNCILMEMBER TVEITE MOVED TO ADOPT RESOLUTION 02-91 TO
ADD BOARDS AND COMMISSIONS TO THE CITY'S WORKERS
COMPENSATION INSURANCE POLICY. COUNCILMEMBER KUESTER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE WORKERS
COMPENSATION INSURANCE RENEWAL WITH THE LEAGUE OF
MINNESOTA CITIES INSURANCE TRUST EFFECTIVE OCTOBER 1, 2002
THROUGH SEPTEMBER 30, 2003, WITH A 3% MANAGED CARE CREDIT
City Council Minutes
September 23, 2002
6.1.
Page 4
AND A $10,000 DEDUCTIBLE. COUNCILMEMBER KUESTER SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
Open Mike
No one appeared for Open Mike.
Meeting Schedule - HRA Feedback
The meeting schedules of the EDA, HKA and Council were discussed. Councilmember
Motin updated the Council on the HRA discussion of this issue.
It was the consensus of the Council to set the following meeting schedule for the City
Council, EDA and ~ for 2003, provided the EDA and HRA concur with the times
scheduled for the EDA and HRA meetings.
Second Monday EDA - 5:30 p.m.
City Council - 6:30 p.m.
Third Monday City Council - 6:30 p.m.
Fourth Monday HRA - 5:00 p.m.
City Council - 6:30 p.m.
Staff Updates
There were no staff updates.
The Council recessed to the training room for a CIP work session.
2003 Capital Improvement Program
Gas Franchise Fee
The City Council discussed the issue of a gas franchise fee. Mayor Klinzing indicated that
she has heard from her constituents that they are not interested in seeing this type of a tax.
She indicated that it is perceived as a hidden tax.
Councilmember Kuester indicated that if this type of tax were used, she would want to
ensure that there is a specific use for the money such as the pavement replacement program.
Council.member Tveite indicated that he is also concerned with the perception of a hidden
tax. He further indicated that using this type of a fee for the pavement replacement program
would ensure that all entities and property owners are paying their fair share for the
pavement replacement program.
Councilmember Motto indicated that paying for the pavement replacement program through
this type of franchise fee makes more sense than using the general fund.
Councilmember Dietz indicated that he is not sure he wants to move forward with the gas
franchise fee at this time.
It was the consensus of the Council not to pursue the use of a gas franchise fee at this time.
City Council Minutes
September 23, 2002
Page 5
CIP
Lori Johnson stated that the Financial Management Plan addresses the need to have a five-
year Capital Improvement Plan approved by the City Council each year. Lori Johnson
presented the draft five-year CIP plan to the Council. This plan also includes data for slx to
ten years; however, she requested the Council to focus on the £zrst five years and to prioritize
the requests.
The Council reviewed the Capital Improvement Plan. The Council requested that the
equipment certificate costs be evened out throughout the five-year period. It was suggested
that the money received from Elk River Utilities be saved for a few years with the intention
of purchasing an expensive piece of equipment.
Following discussion by the Council, the items below were identified by the Council as
significant issues and possible high priority items.
· Additional large areas of park land (Councilmember Kuester)
· Meadowvale Road reconstruction (2004)
· Ice Arena floor and roof replacement
Finance Director Lot4 Johnson indicated that staff would make the requested adjustments to
the draft Capital Improvement Plan and return it to the Council for approval before the end
of the year.
9. Adjournment
There being no further business, Mayor Klinzing adjourned the meeting of the Elk River
City Council at 8:50 p.m.
Sandra Peine
City Clerk