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5.5. SR 06-25-2001MEMORANDUM Item ~5.5. TO: FROM: DATE: SUBJECT: Mayor and Council Pat Klaers, City Administrator June 25, 2001 '~,~ Discussion on Community Recreation Update The City of Otsego has notified the Community Recreation Board that it wishes to withdraw from the Joint Powers Agreement 0PA). While this notification has just come forward, the decision is not a surprise. The topic of whether or not the City of Elk River should develop its own city recreation program has been on the horizon since 1997 when Otsego withdrew from the JPA and then reconsidered and remained a member. As in 1997, the issue for Otsego's withdrawal in 2001 is financial. Attached for your information are some newspaper articles from 1997 and some material from 1999 when the community recreation director left the organization and the city again considered establishing a city recreation program. Ever since Zimmerman and Livonia Township left the JPA in 1996 it was felt that Otsego was a key player and, because of their ongoing financial concerns, they may be the next to leave. It was assumed that if Otsego would leave then the organization would cease to exist as the Otsego population was larger than Rogers, Dayton, and Hassan Township combined. In the meantime, Dayton and Hassan Township have left or are leaving the JPA. When Otsego leaves, the remaining members would be Rogers, the School District, and Elk River would be about 84% of the budget. At that point it seems senseless to maintain the JPA and individual contracts for services should be considered along with some type of agreement with the school district for use of fields and facilities. The establishment of a city recreation program is the next logical step in our recreation evolution. The city would employ the current community recreation staff. Since the inception of the community recreation organization the city has assumed the following responsibilities, which were at one point with the school district: · Payroll for Employees · Supervision of Employees · Location of the Offices · Fiscal Agent Having community recreation become city recreation would not be a big adjustment in our management of activities and programs. It is expected that after city hall's expansion in 2004 that we would be looking at a park and recreation director position and department of which city recreafon would be one component. It has been requested that if community recreation became city recreation that we would offer a menu of services to neighboring municipalities and they would pick and choose what services they wanted for the price that was proposed. If the price was not acceptable or if the city preferred not to contract for the service, then these neighboring municipalities have lots of other options. They could do nothing and have their residents pay non-resident fees to attend our programs (or they could pay the extra fee for their residents); they could work together to provide services; each individual community could do their own recreation; or they could contract with community education. While it is clear that community education is not in the recreation business, for example offering T-ball, however there are a lot of gray areas and there may be some programs that the school district could provide which the communifes want under community education. One of the key issues in the establishment of the community recreational organization in 1992 was providing assistance to the youth associations. Participants in the youth associations come from throughout the school district and coordination of field scheduling for games and pracfces was an issue. In the early 1990's, almost all the fields were in Elk River. In general, community recreation wanted to relieve the administrative responsibilities from the youth associations so they could concentrate on coaching and working with the kids. This is still our position, but with the evolution of the Rogers school system and the anticipated Rogers athletic association it seems that operations are becoming more fragmented and it may be more appropriate for Elk River to concentrate only on scheduling fields and facilities for which we either own or have maintenance responsibilities. Relationships have been established with youth associations so I am confident that we will have a seamless transition between community recreation and city recreation and that if the associations have to deal with other municipalities then this should not be a major challenge or obstacle. The finances are the grayest area to deal within discussing community recreation becoming city recreation. Clearly if we are 84% of the administration fees then we should take the next step and be 100% responsible. Attached is some financial information on community recreation administration fees and total city recreation expenditures. We do believe that we'll receive additional revenue from non-resident fees and that we may receive revenue for contractual services without significantly increasing expenditures. However, we have not had time to analyze the figures so any comments are simply speculative. There has not been too much time to put together a great deal of information on this issue. This has been a busy week with the police union arbitration meeting and with putting together the draft 2002 budget. Accordingly, after this June 25 council review of community recreation issues, hopefully staff can get some direction and a follow-up City Council discussion can take place on either July 2, or July 9. ~899 Nashua Avenue N.E. Elk River, MN 55330 ON THE GREAT RIVER ROAD (612) 441-441.4 Fax: (612) 441.-8823 June 13, 2001 Joint Powers Community Recreation Board C/O Michelle Bergh 50 Main Street Elk River, MN 55330 Dear Board Members: This letter shall serve as official notice that the City of Otsego is withdrawing from the Joint Powers Community Recreation Board effective December 31, 2001. The City of Otsego is aware this means that Otsego residents will pay more for recreational offerings in the future. The City of Otsego would like to thank the Board for all of the efforts they have made since the Board's creation to accommodate Otsego's concerns. The City of Otsego is withdrawing primarily due to the increasing costs we see in the future. It is obvious that other members of the Board wish to increase the recreational services offered in this area. There is nothing wrong with that philosophy. The City of Otsego is simply choosing to put its financial resources elsewhere. We wish the Board good luck in its future endeavors. Otsego would like to come to some sort of agreement to allow the Board to continue to use Otsego Prairie Park facilities. We would also want to look at contracting with the Board for hockey rink attendants, ~Terrific Tuesdays" entertainment, and other similar programs. I'm sure something mutually satisfactory can be worked out. If you have any questions, please give me a call. Sincerely, ~obertso City Administrator cc: City Council 2002 Breakdown by Community Population x $2.61 1999 Participation % of Participation Participation Assess. 2002 Total Assessment 2001 Total Assessment Difference Elk River 44,153.37 4,279 67 61,678.23 105,831.60 75,600.00 30,231.60 16,917 Otsego 15,962.76 1,175 18 16,570.27 32,533.03 22,276.00 10,257.03 6,116 Rogers 8,563.41 923 15 13,808.56 22,371.97 14,498.00 7,873.97 3,281 Totals 68,679.54 6,377 92,057.06 160,736.60 26,314 Total Budget 2002 160,736.60 . ~ BUDGET WORKSHEET Da~e' 06/I%/01 ~^~ ~V2nd Draft ~C~(/~ U~ ~ Time: :3:10am ........................................... ....... ::::::::::::::::::::::::::::::::::::::::::::::::::::::: C~ ?~r Original ~en[dedkctlalThrUEStimated ~%~{.~ ~l Budget Budget May Tstal Requested Recommended Adopted ;~~NE~AL~UND ................................................................................................................ 1,021,900 1.027,900 INTERGOVERNMENTAL REV~UE 1,055,445 1,061.850 1,061,850 23,680 CHGS CHARGES FOR SERVICES 3411Admin Pro3ect Fees 0 50,000 50,000 0 50,000 50,000 3412 Planning ~ Zoning Fees 21,320 18,000 18,000 11,591 19,150 19.150 3413 P~an Check Fee 328,112 201,650 201,650 I65.876 295,300 255,300 3415 Special Assessment Search 1,635 3,500 3,500 660 1,800 1.:~00 3416 Maps/Ordinances 5,387 500 500 2,475 2,000 2,000 3417 Coples 1,773 1,000 1,000 1,066 1,000 1,000 3418 Other General Govt Services 2,750 0 0 1,765 2,500 343I Police Services 10.97~ 7,000 7,000 1,591 10,000 10,000 3432 School Liaison 43,000 45,150 45,150 21,500 47,000 47,000 3434 Animal lmpou~d Fee 2,285 2,500 2,500 1.000 2,500 2,500 3435 Vehicl~ Impour~d 400 0 0 30 3436 Fire Contracts 84,705 75,000 75,000 78,523 78,000 78.000 3437 Fire Calls i5,360 7,000 7,000 3,750 9,000 9,000 .............. 34~ Street Services 17,686 15,000 15,000 2,178 18,000 38,000 %,, . ~,~ f~! :~' ~q,~59 ~-,~0~,~ 54,000 54,000 21,316 5~, ooo 3472 Park Shelter Fee 0 0 0 1,260 3483 Sewer Inspection Fee 3,787 t,000 1,000 4,125 2,000 2,000 .............. 3484 Contractor License Check 1,845 1,500 1,500 855 1,500 1,500 .............. CHARGES FOR SERVICES 596,204 482,800 482,800 319,561 592,250 574,750 FINE FINES 3510 Court Fines 351I Parking Fines FINES 109,326 114,000 114,000 26,041 t15.000 115,000 9,595 5,500 5,500 3,860 7,500 7,500 119,421 119,500 119,500 30,701 122,500 I22,500 SA SPECIAL ASSESSMENTS 3610 Special A~smts-County SPECIAL ASSESSMENTS 0 0 0 0 ................. i ...................................... 0 0 0 0 OREV OTHER REVENUE 3621 Interest Income 3622 Vending Machines 3623 Solid Waste Surcharge 3625 Refunds & Reimbursements 36?6_Contributions .£sceilaneous Revenue OTHER REVENUE 161,759 80,000 80,000 57,178 58 0 0 0 9,000 9,000 9,000 11,851 692 0 0 527 3,700 13,700 13,700 5,650 4,573 0 0 658 90,000 90,000 9,000 9,000 2,400 3,700 3,700 3,000 3,000 179,782 102,700 I02.700 75,864 105,700 108,100 TRIN TRANSFERS IN ~ ~ 2nd Draft O Date: 06/15/01 /~ Time: 8: 10am 0 ~ ~ Page: ~2 CITY OF ~ R~R ~ 0 ~00 I ~rO~ ...................... ..~, ................. ~r~ ~.~ ...................... ~OO~ Year Orzgi~al ~e~ded Ac~al Thru fsti~ated ~ ~I" II01 ~t~l B~dge~ Budget May Total Reguested Recommended Adopted . __.~.. _ ~ ......................................... ..................................................................................................................... Fund: 101 GENERAL FUND Expenditures Dept Group: 539? D~pt: 520.52~~(~ ~ PS PERSONAL SERVICES 410I Regular Pay 4102 Overtime Pay 4103 Part-time Pay 4104 PERA 4105 FICA 4107 Medicare 4108 Insuraace 4109 Workers Comp PERSONAL SERVICES 0 0 0 5,419 0 0 0 149 753 i0,000 I0,000 3,402 10,000 I0,000 54 0 0 397 02 650 650 542 650 650 I5 150 150 127 150 150 0 0 0 620 0 0 0 0 904 10,800 I0,800 I0,656 10,800 10,800 SUPP SUPPLIES 4219 Operating Supplies SUPPLIES 976 0 0 6 976 0 0 6 DSC OTHER SERVICES & CHARGES 4321 Telephone Postage 850 0 0 t35 135 100 t00 19 0 0 0 200 20,3 ~ travel, Conferences & Schools .... -~ 0 ~-~ ~--~-"' .~.~,~..~. ~/ ~,~ 75,000 :~: ~.000 37,800 99,500 4~O~%~4~,.,~J,.~vic.,,. l .............. 4440 Mlscellaneoug ~ } 5,025 5,000 5,000 3,027 .............. 5,000 5,000 .............. OTHER SERVICES & CHARGES ~ 71,049 80,100 80,100 40,981 104,700 103,550 RECREATION ADMINISTRATION~ 72,929 90,900 90,900 51,643 115,500 114,350 BUDGET WORKSHEET 2nd Draft Date: 06/15/01 Time: 8:10am CITY OF ELK RIVER Page: 43 Prior ................. Current Year ...................... Year Original Amended Actual Thru E~timated k 05/31/0I Actual Budget Budget May Total Requested Recommended Adopted Fund: 10l GENERAL FUND Expenditures Dept Group: 520 RECREATION Dept: 520.522 ADULT RECREATION PS PERSONAL SERVICES 4103 Part-time Pay 4104 PERA 4105 FICA 4t07 Medicare PERSONAL SERVICES 2,807 3,700 3,700 826 3,000 3,000 23 0 0 38 190 250 250 51 200 200 44 50 50 12 50 50 3,064 4,000 4,000 927 3,250 3,250 SUPP SUPPLIES 4219 Operating Supplies SUPPLIES 344 500 500 29 1,000 1,000 344 500 500 29 1,000 1,000 OSC OTHER SERVICES & CHARGES 4349 Advertising/Marketing 4404 Equip Repair/Maint Services 4409 Contractual Services 4412 Building Rent OTHER SERVICES & CHARGES ADULT RECREATION 0 1,000 1,000 16 1,000 1,000 0 500 500 0 500 500 890 0 0 0 3,872 7,000 7,000 576 4,000 4,000 4,762 8,50{3 8,5{30 592 5,500 5,500 170 13,000 13,000 1,548 9,750 9,7B0 BUDGET WORKSHEET 2nd Draft Date: I)6/15/01 Time: 8:10am Page: 44 CITY OF ELK RIVER ................................... Prior ................. Current Year ...................... Year Original Amended Actual Thru Estimated ..... /~. Actual Budget Budget May Total Requested Recommended Adopted Fund: 10I GENERAL FUND Expenditures Dept Group: 520 RECREATION Dept: 520.523 YOUTH RECREATION PS PERSONAL SERVICES 4102 Overtime Pay 4103 Part-time Pay 4104 PERA 4105 FICA 4107 Medicare 4110 Re-empLoyment Compensation PERSONAL SERVICES 0 0 0 22,875 35,000 35,000 18 0 0 t,41i 2,200 2,200 330 500 500 328 0 0 0 4,689 31 35,000 35,000 308 2,200 2,200 72 500 500 317 24,962 37,700 37,700 5,417 37,700 37,700 SUPP SUPPLIES 4219 Operating Supplies SUPPLIES 18,005 32,000 32,000 1,686 25,000 25,000 .............. t8,005 32,000 32,000 1,686 25,000 25,000 OSC OTHER SERVICES & CHARGES 4349 Advertising/Marketing 4404 Equip Repair/Maint Services 4409 Contractual Services · ' Building Rent OTHER SERVICES a CHARGES YOUTH RECREATION 1,644 3,000 3,000 297 3,000 3,000 0 1,000 1,000 0 1,000 1,000 10,I93 7,000 7,000 4,530 8,000 8,000 7,054 12,000 12,000 81 12,000 I2,000 18,89I 23,000 23,000 4,908 24,000 24,000 61,858 92,700 92,700 12,01I 86,700 86,700 BUDGET WORKSHEET 2nd Draft Date: 06/15/01 Time: 8:I0am Page: 45 CITY OF ELK RIVER .......... Prior ................. Current Year ...................... Year Original Amended Actual Thru Estimated · 05/31/01 Actual Budget Budget May Total Requested Recommended Adopted Fund: 101 GENERAL FUND Expenditures Dept Group: 520 RECREATION Dept: 520.524 YOUTH INITIATIVES PS PERSONAL SERVICES 4102 Overtime Pay 4103 Part-time Pay 4104 PERA 4105 FICA 4107 Medicare PERSONAL SERVICES 371 0 0 99 i7,030 20,000 20,000 5,572 5 0 0 9 1,097 1,250 1,250 363 257 300 300 85 18,760 21,550 21,550 6,128 I2,000 12,000 750 750 200' 200 12,950 12,950 SUPP SUPPLIES 42t9 Operating Supplies SUPPLIES 6,130 2,500 2,500 1,430 2,500 2,500 ............. J .................................................................................................. 6,i30 2,500 2,500 1,430 2,500 2,500 OSC OTHER SERVICES & CHARGES 4321 Telephone 4349 Advertising/Marketing 436t Insurance 4389 Utilities · Bldg Repair/Maiat Services Contractual Services 4418 Other Rentals 4497 Taxes & Licenses OTHER SERVICES & CHARGES YOUTH INITIATIVES 586 1,150 1,150 239 600 600 295 2,000 2,000 1,I65 2,000 2,000 628 900 900 I83 900 900 2,400 2,800 2,800 2,871 3,000 3,000 6,911 4,000 4,000 2,183 4,000 4,000 3,566 8,000 8,000 0 8,000 8,000 0 0 0 0 0 0 0 0 14,386 10,850 18,850 6,641 18,500 10,500 39,276 42,900 42,900 14,199 33,950 33,950 .............. ~ ...................... ~r '"~' .................................................. 73T~ - .......... - p oz _ Fields throughout the District 728 area based on field maps: Bali Fields Elk River Youth Athletic Complex 4 Oak Knoll 3 Varsity/Comm. 1 Old Varsity 1 Jr. Varsity 1 Vandenberge 4 Salk 6 Satl</Vandenberge Area Lincoln 2 Parker 2 Handke 2 Meadowvale 2 Otsego Otsego Elementary 2 Otsego City Hall 2 Rogers Rogers Elementary 3 Rogers Junior High 4 Tda, ngle Park 1 Lynch Field 1 Hassan 1 Dayton Dayton Village Dayton Maintenance Garage Zimmenllan Z~mmerman Elementary Zimmerman Junior High Zimmerman Municipal 3 54 Soccer Fields 2 7 2 2 2 : ZIMMERMAN TWR ZSTTH SHE. RBURNE CO. BIG LAKE TWt~ ELI< RIVER BURNS TWP. ANOKA CO, ALBERTVILLE WRIGHT CO. FRANKFORT TWR HASSAN TWP. i'?'HENNEPN .CO. ' OF DAYTON ROGERS RAMSEY TWP. SCHOOL NAMES I . ZIMMERMAN ELEM. 2.SALK ,JR. HIGH $.NORTH ,JR. HIGH 4.ELK RIVER SR. HIGH 5,LINCOLN ELEM, 6.PARKER ELEM, 7.HANDKE ELEM. 8. ROGERS ELEM. ELK RIVER INDEPEND SCHOOL DISTRICT 72 KEY:' · .-- -- ,COUNTY BOUNDA .TOWNSHIP BOUND ClTX-.BOUN DARIE,~ The following results have been compiled from information received from 32 out of 42 cities surveyecL The survey consisted of 28 metro cities and 14 non-metro cities having a population over 10,000 and under 25,000. Keep in mind that on some surveys, not all questions were answered. Recreation Programming Services The desired result of this survey is to determine how many municipalities, which are similar to Elk River, provide their own municipal recreation programming or have this service provided by the school district (as part of Community Education) or by another contract. Does your city have its own park or recreation or park and recreation department? Yes 25 No l_ Park/Rec. with additional Pub. Works, Ice Arena, Arts, or Forestry 4 Joint Powers - School / City 2 What is the size of the city park/recreation staff (maintenance, programming, administration)? Average FT admin./prog. 6 Average PT admin./prog. 2_ Average FT maint./pub, works 6_ Average PT maint./pub, works 4 Average Seasonal 90.. What is the approximate amount of the city park/recreation budget? Average overall budget $1.2 million Average Parks only budget $500~000 Average Recreation only budget $200~000 o Does your city do its own recreation programming or is this service done by the school district (as part of community education) or is this service contracted out to another agency? City 23 School District 2 Other- majority city/some Community Ed., parent / volunteer organized, or joint with school district 7_ ity of E River Item #6.5. MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City A~~ator May 24, 1999 ~ Community Recreation Program Discussion The participants in the joint powers agreement (JPA) are Dayton, Elk River, Rogers, Hassan Township, and Otsego. These communities are scheduled to contribute approximately $102,500 into the program in 1999. Of this amount, the city of Elk River pays $62,000. As you can see, we are clearly the biggest player in this organization. The other four communities have a combined population of about 10,000 as compared to the city's population of 15,000. Also, last year Elk River offered 222 of the 330 programs that were run by community recreation. This information is offered as another measuring stick of our role in the association. It is clear to me that if the JPA remains in place, then the budget will have to stay constant. If this does not happen, Otsego has given every indication it will drop out of the association and, in fact, Otsego may drop out regardless. By continuing with the current status we are simply putting off the inevitable, which is that Elk River will be on its own and have its own park and recreation department. To continue with the current relationship is only a stop gap measure and is certainly something we can do, but everyone should be aware that the life span of this association is very limited. If the city wants to improve the recreation opportunities for its residents, then we are going to have to be more aggressive. This typically means spending more funds, as recreation programs are not always self-sufficient and some programs require subsidies , which is a normal financial function/responsibility of a municipality. Under the current system, when this happens for Elk River programs, then communities like Otsego are the ones who receive a disproportionate benefit as they have no expense, but their residents can participate in the programs at no extra charge. This can be a disincentive for communities like Otsego to offer programming and, I think, has been one of the flaws within the community recreation organization and its funding formulas. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 It is recommended that the city of Elk River provide the Community Recreation Board its six month written notice to withdraw from the association as per the JPA. It is possible, but somewhat unlikely, that the remaining communities would continue with the community recreation organization and employ the current staff. Assuming this does not happen, the city should plan on hiring Michelle Bergh and RaeAnn Gardner (they are technically already city employees) plus any additional part time programmers that are necessary to meet our needs. If we withdraw, then in the next 6-12 months we will have to evaluate how the city park and recreation needs can be met and whether or not we need to hire a park and recreation director. Right now the city park and recreation "department" has three divisions. Community recreation does the recreation programming and field scheduling, the street/park department does the park and field maintenance (and some park development), and the planning department does the subdivision reviews for park needs and park planning. All three attend the city Park and Recreation Commission meetings. The office space issue also needs to be part of this discussion. In the short term it is expected that Michelle and RaeAnn will stay located at Community Education (even if we have to pay rent), but ultimately they need to move to City Hall. Please see the attached material regarding the community recreation program. Included in this material is the City of Elk River budget and the Community Recreation budget. Total 1999 expenditures for the community recreation program are anticipated to be $123,000, but the real figure to look at is the revenue from communities. As noted earlier, this gap between the total and the Elk River amount is about $40,500 plus some of the non- resident and program surcharge, amOunt. The total gap is approximately $47,000 more than what is in the city budget, however, it is expected that the net impact will be much less than this amount as we will have lower wages to pay while we evaluate the need for a park and recreation director. We will also be receiving more revenues as there will be more non-resident fees being received and/or possibly some contracts entered into for services with other communities. This may be slightly offset by some rental expenses for office space, but this is unknown at this time. Benefits to the city for being on its own include more control over programming and staffing levels, allowing the staff to be more productive and less involved in political debates, and allowing the city to better respond to the recreational desires and needs of our residents. The biggest concern with going on our own is continuing to work with the youth associations and assisting them in scheduling fields for games and practices throughout the district and not just in the city of Elk River. We hope that by going on our own we will not be making the job tougher for the youth association leaders. Hopefully everything can work out cooperatively with the youth associations and neighboring communities in the next six months so that there will be no clisruption in planning 2000 youth association activities. Once again, it is recommended that the city provide written notice of our intention to withdraw from the Community Recreation Board as per the joint powers agreement. The next Community Recreation Board meeting is June 21, 1999. Elk River City Council Minutes May 24, 1999 Page 7 6.4. Consider Support Services Supervisor Position for Police Department Chief of Police Tom Zerwas requested the Council to promote Michelle Masica to the position of Support Services Supervisor. COUNCILMEMBER MOTIN MOVED TO PROMOTE MICHELLE MASICA TO THE POSITION OF SUPPORT SERVICES SUPERVISOR AT PAY GRADE I l, STEP K, OF THE PAY PLAN EFFECTIVE MAY 1, 1999, AND TO MOVE TO STEP L ON JULY 1, 1999. COUNCILMEMBER FARBER SECONDED THE MOTION. Councilmember Thompson commended Michelle Masica for the job she has been doing in the records (}rea. THE MOTION CARRIED 5-0. 6.4a. Firearms Trainin.q Chief of Police Tom Zerwas requested the Council to authorize the use of property owned by Midwest Asphalt for a police firearms training location. He further requested the Council to enter into an indemnity agreement, indemnifying Midwest Asphalt harmless from liabilities. COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE USE OF PROPERTY OWNED BY MIDWEST ASPHALT CORPORATION FOR A POLICE FIREARMS TRAINING SITE AND TO AUTHORIZE THE SIGNING OF AN INDEMNITY AGREEMENT BETWEEN THE CITY AND MIDWEST ASPHALT CORPORATION. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6.5. Community Recreation Pro.qram Discussion City Administrator Pat Klaers discussed issues relating to the Community Recreation Program. The City Administrator recommended that the City of Elk River withdraw from the Joint Powers Agreement. He stated that some of the benefits the city would receive by being on its own include more control over programming and staffing, allowing the staff to be more productive and less involved in political debates, and allowing the city to beffer respond to the recreational desires and needs of our residents. Park and Recreation Commissioner Representative John Kuester indicated that the Park and Recreation Commission has a concern regarding the relations and needs of the athletic associations if the city were to go on its own. He further indicated that the Park and Recreation Commission felt that if Michele Bergh were to maintain her present position that the issues with the athletic associations could be worked out favorably. He further noted that the Park and Recreation Commission felt that the larger issue should be looked at regarding the possibility of the city hiring a park and recreation director. Mayor Klinzing indicated that creating a park and recreation department would have to be done in the context of budget discussions. Mayor Klinzing further noted that she is not in favor of the City of Elk River breaking away from the community recreation program and going on its own, She stated that the city should wait until the other participants in the Joint Powers Agreement make the decision to withdraw and at that time Elk River could make its decision to Elk River City Council Minutes May 24, 1999 6.6, 6.7, Page 8 develop its own community recreation program. She further noted that she feels the city should move very slowly in the direction of looking at a park and recreation director. Councilmember Dietz noted that if the city breaks away from the community recreation program and withdraws from the Joint Powers Agreement, it will not be excluding the other communities. He noted that the other communities would be able to participate in Elk River's recreation program. Councilmember Motin stated that he felt the only way to save the community recreation program is for one of the communities to take control of the entire program. Councilmember Dietz suggested that Councilmember Motin relay the Council's concerns and ideas regarding the community recreation program at the next Community Recreation Board meeting. He further recommended that the City Administrator work with Councilmember Motin on writing a memo to the Community Recreation Board members and have Councilmember Motin present it to the Board at its next meeting. Consider Ice Arena Capital Improvements The City Administrator informed the Council that the existing ice resurfacer is 15 years old, requires much maintenance, and has a history of being unreliable. He requested the Council to consider authorization to purchase a new ice resuffacer. Mayor Klinzing indicated that she is not in favor of encumbering funds from next year's budget for the purchase of the ice resurfacing machine. She further noted that if funds were available from the sale of King and Main Street she would be in favor of allowing some of these funds to go toward the purchase. The City Administrator indicated that equipment certificates or equipment reserves could also be used for financing this purchase. Councilmember Dietz requested the City Administrator to present an analysis of the equipment reserves, designated and undesignated funds, to help the Council make a decision as to whether it should move forward with this purchase. Following Council discussion it was the consensus to authorize the ice arena manager to go out for bids and to present the results to the Council at a future date. COUNCILMEMBER THOMPSON MOVED TO AUTHORIZE THE ICE ARENA MANAGER TO GO OUT FOR BIDS FOR THE ICE RESURFACER. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-1. Mayor Klinzing opposed. East Elk River Improvement Proiect Update City Administrator Pat Klaers updated the Council on the acquisitions of the Eull right-of-way property, the Kirkeide house and property, and the Brown purchase agreement. He noted that the EDA will be holding a special meeting on Elk River City Council Minutes June 28, 1999 Page 3 5.3. COUNCILMEMBER DIETZ MOVED TO HAVE THE CITY ENGINEER WRITE A LE]'I'ER TO SHERBURNE COUNTY INDICATING THAT THE CITY DOES NOT SUPPORT A DRIVEWAY PERMIT FOR MR. MARTIN'S DRIVEWAY AND FURTHER THAT THE CITY OFFER ITS SERVICES TO THE COUNTY FOR THE REMOVAL OF MR. MARTIN'S DRIVEWAY AND FURTHER THAT THE COUNCIL WITHDRAW ITS SUPPORT OF A DRIVEWAY PERMIT FOR MR. GRIMMER. COUNClLMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. Community Education Presentation for Providin,q Community Recreation Services Administrator of Community Education Charlie Blesener addressed the council regarding this issue. Charlie Blesener discussed the issues included in his memo to the Mayor and City Council dated June 18, 1999. He indicated that he is providing information so that the council can make a more informed decision regarding the future of the Community Recreation program. He reviewed the background, back to the beginning, of the Community Education and Recreation programs. Charlie then reviewed the three options that have been discussed for continuing to provide community park and recreation services. The options are as follows: · Option A- Multi-community Joint Powers Agreement · Option B - Contractual Agreement with a City · Option C - Joint Powers Agreement with School District Charlie stated that his preference is Option A. However, if this is not possible, Option C would be his second choice. Charlie indicated that he would like to see the program retain as many members as possible. He further indicated that he felt Option C would eliminate duplication of services and would be more effective for the public. Additionally, Charlie noted that with Option B, the city would have a lower priority ranking for use of school facilities than it currently has as a member of the Community Recreation organization. Mayor Klinzing indicated that she is in favor of looking at a Joint Powers Agreement with the school district. She felt it would be most cost effective and that the cooperation between the two government bodies would benefit the taxpayers. Councilmember Dietz indicated that he did not see Community Education and Community Recreation as a duplication. He indicated that his choice would be to see the City of Elk River assume responsibility for the Community Recreation program. Councilmember Motin indicated that he sees a cooperative effort between Community Education and Community Recreation as the least viable option. He indicated that there is already confusion between the two entities and he suggested that a split at this time might be the best option. Charlie Blesener requested the council to consider the role the school district would be playing if the City of Elk River had its own Community Recreation program. Elk River City Council Minutes June 28, 1999 Page 4 Councilmember Thompson indicated that if an agreement between Community Education and Community Recreation happened, problems would occur regarding non-resident issues and fees. The City Administrator indicated that this issue would be discussed again at the July 19, 1999, meeting. 7. Other Business 7.a. Island View Drive Discussion was held regarding the possible renaming of island View Drive. The City Engineer indicated that this is not being considered or proposed. 8. Staff Updates The City Administrator distributed a memo in regard to the clarifier failure at the Wastewater Treatment Plant. COUNCILMEMBER FARBER MOVED TO AUTHORIZE THE PURCHASE OF A CLARIFIER FOR THE WASTEWATER TREATMENT PLANT RECOGNIZING THAT THE CITY WOULD NOT BE GOING THROUGH THE BIDDING PROCESS BECAUSE OF THE EMERGENCY SITUATION THAT THE FAILURE OF THE CLARIFIER HAS PRESENTED. COUNClLMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED ,5-0. The City Council recessed at 7:27 p.m. and reconvened in the Training Room at 7:35 p.m. 6. Review of Capital Improvement Pro.qram Councilmember Farber was away from the council table at this time. The City Administrator indicated that the Capital Improvement Program (CIP) is reviewed by the coundl on a yearly basis. He indicated the CIP projects change from year to year due to different councils, priorities, and funding availability. The City Administrator requested that the council give staff direction regarding some of the capital improvements that will be discussed this evening. City Engineer Terry Maurer reviewed the status of current projects in the city of Etk River as indicated in his leYrer to the City Administrator dated June 23, 1999. STREETS City Administrator Pat Klaers reviewed the streets capital improvement projects. He indicated that streets are projects that include reconstruction or new projects, street signals, overlays, and sidewalks, plus the projects may include utilities under the streets. Pavement Replacement Pro.qram - City Administrator Pat Klaers explained that as some of the older streets in the city c~re reaching the point where they cannot be restored, the city must pursue a pavement replacement program. Pat Klaers indicated that staff is proposing a 20 or 25 year plan for this program. He further stated he is proposing to combine payment for the resurfacing through assessments and city resources including the tax levy. The City Administrator indicated that the city needs to hire an appraiser to determine how much of an Elk River City Council Minutes July 19, 1999 Page 3 betterment of the community. Councilmember Farber concurred with Councilmembers Dietz and Thompson. COUNCILMEMBER FARBER MOVED THAT AN EXCEPTION BE MADE TO THE MOTION OF APRIL 19, 1999, MADE BY THE CITY COUNCIL REGARDING THE USE OF HRA OWNED PROPERTY CURRENTLY FOR SALE AND FURTHER TO ALLOW THE HERITAGE FESTIVAL TO USE THE PROPERTY LOCATED AT THE CORNER OF KING AND MAIN STREET ON SEPTEMBER 18 AND 19, 1999, FOR THE SPECIFIC USE OF CHILDREN'S GAMES. Discussion was held by the council regarding Councilmember Motin's concern whether the exception to the April 19 motion allowing the Heritage Festival to use this property is a one time exception. Councilmember Dietz suggested that a policy be drafted by the City Clerk for council approval regarding the use of HRA owned property. The Mayor indicated that this policy would be presented to the council for consideration at a future council meeting. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.5a. Update on Community Recreation Activities- Michele Berqh Interim Community Recreation Director Michele Bergh updated the City Council on community recreation summer programs. She indicated that the programming is going very well. She also updated the council on the Safety Camp and showed a short video of activities that took place at the Safety Camp. 4.5b. Discussion on Community Recreation Pro,qram Options Councilmember Motin updated the council on issues of discussion at the Community Recreation Board meeting. He indicated that the board has spent much time discussing the three options. He explained that the options are as follows: a.) maintain the status quo of the joint powers agreement; b.) the city of Elk River beginning its own community recreation department; and c.) the community education or school district taking over the programming of community recreation. Councilmember Motin indicated that there has been no consensus of the Community Recreation Board regarding these options. Councilmember Motin questioned the council as to their thoughts regarding whether all three options are viable for the city of Elk River. Mayor Klinzing stated that if all three options were equal in cost to the city, it would make the decision easier. She indicated that her top choice is to go with Option A followed by Option C as she feels this would be best for the public and she indicated she is not willing to rush into forming a parks department. Councilmember Dietz indicated his choice would include Option A or B. He stated he would rather see the joint powers stay as it is, but if he sees no commitment from the other municipalities to continue, then he would be in favor of Option B. Councilmember Thompson concurred with Councilmember Dietz. Elk River City Council Minutes Page 4 July 19, 1999 Councilmember Farber questioned Charlie Blesener (Community Education Director) why he is in favor of Option C. Charlie Blesener indicated that he is in favor of Option C because he feels it is more cost effective than Option B and creates less confusion for the public. Councilmember Motin requested the City Administrator to contact the members of the joint powers agreement to find out what type of long term commitments to the program they are considering. It was the consensus of the City Council that a majority of the council supports Option A, but then is in favor of Option B over Option C. 4.6. (3.2.) Consider Elk River Fire Relief Association 2000 Benefit Level Mayor Klinzing noted that this issue had been tabled from the July 12 meeting. She indicated that the city received a request from the Fire Relief Association to table this issue again to July 26. Councilmember Dietz indicated that he would not be present on July 26 and stated he would like to review the information at this time. Counciimember Dietz indicated that he received a packet of information from the Association regarding benefit level projections of 8, 10, 12, and 14 percent increases. Councilmember Dietz. distributed this information to the remaining council members. Councilmember Dietz stated he does not feel comfortable bringing the reserves down to zero. The council reviewed the information prepared by the Association regarding the 8, 10, 12, and 14 percent increases. Councilmember Thompson questioned the purpose of bringing the reserves to zero. Randy Sykes indicated that the amount of money is not considered a reserve, but an excess. He indicated that the Fire Relief Association is merely requesting approval to disperse its own funds. The City Administrator informed the council that once the benefit level is established, it then cannot be lowered. Councilmember Farber noted that in order for the pension to have a shortfall, all of the firefighters would have to collect the pension at one time. He indicated that the chances of this happening are very minimal and stated that he is in favor of the Association's request of the 16 percent level increase. Mayor Klinzing reminded the council that the tabled motion before the council from the July 12, 1999, meeting is to approve the Elk River Fire Relief Association's request to increase benefits to $3,370 per year of service for 2000. She noted that this is at the 16 percent level. It was the consensus of the council to call the vote on this motion at this time. The motion from the July 12 meeting is as follows: (COUNCILMEMBER FARBER MOVED TO APPROVE THE ELK RIVER FIRE RELIEF ASSOCIATION'S REQUEST TO INCREASE BENEFITS TO $3,370 PER YEAR OF SERVICE FOR 2000. MAYOR KI. INZING SECONDED THE MOTION.] THE MOTION CARRIED 4-1. Councilmember Dietz opposed. Elk River · Otsego · Ramsey o Rogers ° Zimmerman Otsego drops recreation program by Charmaine Barranco Staff writer After seeing the city's Community Recreation cost more than double from 1994 to 1998, Otsego council members voted 4-1 to drop out of the program. Upon learning Otsego's deci- sion last Wednesday, Program Coordinator Jeff Asfahl said, "I'm stunned. We provide qual- ity programs for kids aud we've never gotten ar~y com- plaints from the people who participate in our programs." Community Recreation, based out of Elk River, pro- vides area youth with orga- nized activities such as soccer, baseball, hockey, wrestling and tennis. But the quality of the pro- gram is not the problem, said council members. It's the cost. "And if they bring the cost down, we'll reconsider it," said Mayor Larry Fournier. Council Member Virginia Wendel, who added the discus- sion of Community Recreation to the city's Aug. 26 agenda 'I'm stunned. We ' provide quality pro- grams for kids and we've never gotten any complaints from the people who participate in our programs.' --Jeff Asfahl that night, said Otsego. is sim- ply paying too much for the service. "This' year we have to pay them $23,000 and we only have 610 people from Otsego participating," Wendel said. "That's a lot of money right now and I'm just wondering if it's really necessary or if we can do something on our own for less money." Wendel noted, that Zim- merman and Livonia Town- ship dropped out of the pro- gram last year. "Then they raised our rate from $3.73 to $4.35," Wendel said. "Non-residents pay $9.30 and if you break it down we're paying about $38 per resident for 610 people." ' After a moment of silence, Fournier said, "Well, in 1994 our contribution was~a little over $11,000. Now it's doubled three years later. It is getting expensive. Maybe that money would be more appropriately given to our parks board if there is such a need." Wendel also questioned the program coordinator's (Jeff Asfahl) $45,390 yearly salary. "And the city is paying the PERA, insurance and work- man's compensation," Wendel said. "I think.this is terribly expensive for what we're get- ting out of it." Council Member Mark Berning, who is the city's Community Recreation repre- sentative, said, "From what they proposed in 1997 to what they're proposing in 1998, I believe it's a 6.2 percent Recreation board unaware of city's financial concerns by Don Heinzman Editor Community Recreation Board Chair Roger Holmgren said his board had no idea Otsego was concerned over the costs of the program. He met Tuesday with program director Jeff Asfahl to map out ways to keep Otsego in the regional recreational program. Holmgren said he had no correspondence from the city of Otsego regarding their continuing with the program. "If they are concerned about making some adjustments on the way they are being assessed, we can deal with that," Holmgren said. Otsego Mayor Larry Fournier told the Elk River Star News that the action was taken to get the Community Recreation Board's attention. He said the costs are too high, but he added, "I think we Holmgren continued to page 8 increase and their justifica- tion was that cities' tax levies go up about 5 percent a year. "Hold it," Fournier said. "We have levy limits for the next two years." Berning said, "But your val- uations of your properties go up about that. The reason for Recreation to page 8 8 / Elk River Star ~,lews / Wednesday, September 3, 1997 Recreation Continued from page 1 the ra~e jump from $3.73 to $4.35 is because Zimmerman and Livonia ~' backed out." ~ Council Member Vern Heidner said, "But iY there's people back- ing out, you would think there Would be less work Jeff Asfahl for the people there to do. So you should get a percentage drop. '~rhere was a 12 percent drop in overall participation, yet there was a 6 percent increase," Heidner continued. "So, there's an 18 percent dif- ference. There's fewer people being served, yet they're rais- ing the rates." Wendel then made a motion to drop out of the program. Council Member Suzanne Ackerman seconded. Heidner commented that under the joint powers agree- ment, Otsego's tie to the pro- gram would be officially sev- ered only after a six-month notification period had elapsed. "If you look at the $23,000 that they want us to pay, I don't think we could do it any cheaper," Heidner said. "But at the same time only 14 per- cent of the participants in the program were from Otsego. But we're paying 18 percent or 22 percent of the total bill." Berning, who was the only council member to vote against dropping out of the program, said Elk River pays 58 percent. Heidner replied, "What it bells down to is Elk River and Otsego pay more than what their residents are using. Only 10 percent of our people are using it. Last year 800 .eople used it and it cost us 18,000. Now 610 people use it and it's costing us $23,000." Fournier said, "If we drop out our residents can still !~ar- ticipate in the activities, they would pay a higher fee though, but on the average it's about $9. What I like about that is that the users are pay- ing for the privilege to be in those programs rather than everyone paying. I support Otsego Parks and Recreation will discuss recreation program The Otsego City Council will meet with the Otsego Parks and Recreation Board to discuss Community Recreation at 7 p.m. Sept. 9 at the Otsego City Hall. Otsego sent a letter to Cormnunity Recreation last week stating that it was dropping out Of the program due to the cost. users paying for things." Berning said as the repre- sentative to the group he wan~ed the council's concerns written down so that he could present them to the Community Recreation board. 'That's what Hassan Township did," Bernlng said. "From the indications I get they are going to stay im And you might reconsider your decision to drop out. You've got six months to think about it." Heidner said, '~V[y problem is that the per capita costs should be going down and the fees that the people pay should go up. I have no prob- leto that we should still stay part of it, if'we can stay in at a lower rate and raise the prices more. I'm also a firm believer in the user pays principle." Berning said the communi- ties pay for the administration fees associated with the activ- ities. Participants pay for the cost of the activity for which they register. Wendel withdrew her motion. She then made a motion to send a letter to Community Recreation stat- lng the council's intent to drop out of the program because of the high cost and to request a reduced rate. Ackerman sec- onded. "Whatever we do, if we are t~inking about it, we should notify them right away because that preserves some of' our rights so that we don't have to pay for another whole year," Heidner said. ~The orig- inal motion was more appro- priate." So Wendel withdrew her sec- ond motion and restated her firs.t motion te drop Out, which passed 4-1. Council members then unan- imously v°/ed to submit their concerns to the Community Recreation Board. "rhe board makes 'the deci-' sions on the costs," Asfahl said. "Otsego obvionsly didn't get any community input when they made this decision. The people in the community are the ones that benefit and we get good marks from them. "As far as the exact number of Otsego residents who are using the service is concerned, we're not investigators," he said. "We don't know for sure. Many Otsego residents have Elk River addresses. So, it's hard to tell. There could be many more O~sego residents using the program than the council thinks." HoJrrJ ren , Continued from page 1 will stay in it. We have to look at it." Holmgren said, "We want to keep them in the program but if they decide in six months they don't want to be in the pro- Holmgren gram, the Recreation Board will look at charging surcharges to com- munities who are not mem- bers of the Community Recreation system." The board will have this matter on the agenda. Otsego's decision is impor- tant because Zirnmerman and Livonia have dropped out of the program. Hassan Township has also indicated it wants to drop out after six months. This leaves only Rogers, Dayton and Elk River. Despite Zimmerman and Livonia's decision tn leave, the total number of young people registering is grow- lng. Zimmerman sponsored its own recreation program, spending $13,250 tJ~is year, compared to the $7,038 it would have been charged had it been a member of the Community Rec. Board. Zimmerman said it had lower fees and offered 11 more programs this summer than were offered last su~n- met by Community Recreation. Zirnmerman had 496 par- ticipants in its summer pro- The need for the recreation programs is not going away, said Holrngren. The funding mechanism may change, meaning people not in the program will have to pay more to use it. Otsego City Council should reconsider its decision We hope the decision by the Otsego City Council to drop out of the Community Recreation program will be reconsidered. Otsego Mayor Larry Fournier said be believes an agremnent can be reached where the city can continue to participate. The decision was placed on the agenda, discussed and voted on with no notice to the public and to the Community Recreation Board. No recommendation was sought from the community's Park and Recreation Commission. Fournier said the action was taken to send the Community Recreation Board a message that the costs are going up too fast. If that was the council's inten- tion, it has gotten the attention. Fournier said the council is willing to schedule a meeting with the Community Recreation Board and discuss the matter. He realizes the program is good for the residents of Otsego, but he questions at what cost. This dropping from the pro- gram because of a belief that it was too expensive for benefit~ received started with the City of Zimmerman, followed by neigh- boring Livonia Township. The Township of Hassan also has served notice it intends to drop out of the program after this year. This would leave only the City of Rogers, the City of Elk River and the City of Dayton in the program. Unless Otsego can be persuad- ed to stay in the program, it will dissolve. Elk River will have to run its own program and charge higher fees to kids outside the city who want to participate. Charging extra could hurt indi- viduals in the communities who do not even know all of this is going on behind the scenes. Otsego's action was unexpect- ed, triggered by costs that have gone up from $11,000 to $23,000 in three years, partly because Zimmerman and Livonia dropped out. Roger Holmgren, chair of the Community Recreation Board, said the issues concerning Otsego were never brought up before the board, which meets monthly. Even Mark Berning, the Otsego council representative on the board, who is known to be a cost-cutter, sees the need for the programs. To his credit, he voted to retain the program. There was no clmnor fi'mn the public to cut out of the Community Recreation Program. In fact, we're led to believe the public likes the pro- gram. · Otsego has a good council. It faces a host of tough decisions. We concur with Mayor Fournier that a meeting.should be called and that ways be found to keep Otsego in a program that is good for its citizens, particularly its young people. - Don Heinzrnan