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HomeMy WebLinkAbout11/08/10 OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS CITY COUNCIL MEETING MONDAY, NOVEMBER 8, 2010 The following are the minutes for the regular meeting of the City Council held at 7:00 p.m. on Monday, November 08, 2010 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER/ROLL CALL/INVOCATION Pastor Dan Thompson Columbia Heights Assembly of God Church gave the Invocation. Present: Mayor Peterson, Council member Williams, Council member Nawrocki, Council member Diehm, Council member Kelzenberg PLEDGE OF ALLEGIANCE - recited ADDITIONS/DELETIONS TO MEETING AGENDA Peterson referred to a correction on the election summary sheet to include the number of new registered voters by Absentee Ballot just received from Anoka County. Nawrocki requested discussion on the budget. He requested to remove Consent Agenda Item E for discussion. PROCLAMATIONS, PRESENTATIONS, RECOGNITION, ANNOUNCEMENTS, GUESTS CONSENT AGENDA City Manager Walt Fehst took Council members through the Consent Agenda items. A. Approve minutes of the City Council meeting. Motion to approve the minutes of the October 25, 2010 City Council meeting. B. Accept minutes of the Columbia Heights Boards and Commissions Motion to accept the minutes of the October 21, 2010 Charter Commission meeting. Motion to accept the minutes of the October 6, 2010 Library Board meeting. C. Adopt Resolution No. 2010 -114, being a Resolution Canvassing Municipal General Election results. Fehst stated that Peterson was re- elected to the Mayor's two year seat and Tami Diehm and Donna Schmitt won the four year Council member seats. Motion to waive the reading of Resolution 2010 -114, there being ample copies available to the public. Motion to adopt Resolution No. 2010-114, being a Resolution Canvassing Municipal General Election results. D. Approve Transfer of Funds for Unique Thrift from General Fund to Police Dept. Budget Overtime Line #1020. Motion to transfer $2,497.50, the amount of money received from Unique Thrift as reimbursement for overtime worked from the General Fund to the 2010 Police Department budget line 1020, Overtime. E. Adopt Resolution 2010 -112, being a Resolution authorizing use of the unexhausted portion of the employer contribution to insurances toward a health savings account (HSA). - removed F. Approve Business License Applications Motion to approve the items as listed on the business license agenda for November 8, 2010 as presented. G. Approve payment of the bills. Motion to approve payment of the bills out of the proper funds, as listed in the attached check register covering Check Number 136759 through 136942 in the amount of $546,552.56. Motion by Nawrocki, second by Diehm, to approve the Consent Agenda items with the exception of item E. Upon vote: All ayes. Motion carried. E Ado It Resolution 2010 -112 bein. a Resolution authorizin. use of the unexhausted sortion of the employer contribution to insurances toward a health savings account (HSA). Linda Magee, Assistant to the City Manager /Human Resources Director, indicated that starting next year health insurance premiums are increasing by 42 percent. Currently, we offer three plans; two high deductible health plans and a fully insured plan. What we are trying to do is encourage people to move to the high deductible health plan. The more people we have on the high deductible health plan, over time, will ultimately have a positive effect on our premiums. This is because it will not pay out at dollar one, except for preventive services. Rather, the employees will have to satisfy a deductible of either $1,500 single, $3,000 family, for the non - embedded plan or $2,500 single or $5,000 family for the embedded plan. Currently what the city contributes covers the individual plan. As an incentive to encourage employees on individual health insurance coverage to participate in a high deductible health plan, staff is proposing to allow employees to use up to $3,000 of the unexhausted employer contribution to insurances for a health savings account (HSA); $1,500 in 2011 and $1,500 in 2012. As is illustrated in the council letter, even if we did that, the city would still realize a savings of over $1,300 a year per employee that currently takes the fully insured plan versus the high deductible plan. This resolution would authorize the use of the unexhausted portion of the employer contribution to insurances toward a health savings account. It would be effective for the non -union employees starting January 1 and for union employees once a memorandum of understanding is entered into between the city and the respective unions. Nawrocki questioned what happens to that money now. Magee stated that non -union employees can use it toward any other city benefit or deferred comp, but they cannot use it for an HSA. The PMA union can do the same. The other unions cannot use it for anything else. Nawrocki asked if some are using it now. Magee stated that we do have people on the family plan that are on the high deductible health plan, because not only do they fully use the employer contribution to insurances, the money they pay out of pocket on premiums and the deductible is far less compared to the premiums of the fully insured health plan, even if they met the $3,000 deductible. Nawrocki asked if they can take part in that program and the other HSA. Magee stated that if they contribute to an HSA, they can not contribute to a traditional flexible spending account; they would only be able to participate in the limited purpose flexible spending account. They could choose to be under a high deductible health plan and not participate in a health savings account and then could participate in the traditional flex account. Nawrocki stated that he would come in and speak to Ms. Magee with further questions. Diehm stated that we have certain obligations under the contracts with our employees that we not reduce benefits. By offering this we give people the opportunity to have the same level of benefits, with no out of pocket costs. Every employee that takes advantage of this option will end up with a savings account. There is no potential to cost us more money; there is only the potential to save us money. Magee stated that we cannot lower the aggregate value of benefits without meeting and negotiating with the unions. This would provide the incentive, save us money, and hopefully have a positive effect on our premiums in the future. Diehm stated that the benefit to our employees of the HSA is that it is putting money in a health savings account and it is not a "use it or lose it" account and carries over year after year. There is no potential for it to cost us more money and will save us money. Motion by Diehm, second by Kelzenberg, to waive the reading of Resolution 2010 -112, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Diehm, second by Kelzenberg, to adopt Resolution 2010 -112, being a Resolution authorizing use of the unexhausted portion of the employer contribution to insurances toward health savings account (HSA). Upon vote: All ayes. Motion carried. PUBLIC HEARINGS - none ITEMS FOR CONSIDERATION A. Other Ordinances and Resolutions - none B. Bid Considerations Adopt Resolution 2010 -113 being a Resolution Accepting Bids and Awarding the Contract for 2010 Sanitary Sewer Lining, City Project No. 1004, to Visu- Sewer, Inc. Kevin Hansen, Public Works Director, stated this is an annual program completed over the last 15 years to correct root intrusion and structural defects. We prepared specifications and received seven requests for plans. Four bids were received. Bids ranged from $150,000 to $220,000. For the lining portion of the work, the bids are lower than in 2007, 2008, and 2009. The bids came in at about $23 a lineal foot. The last three years we have paid between $24.80 and $30 a lineal foot. We prepared an alternate to correct and provide a liner boot where a service connection is at the main. He referred to the work session which showed the televised report showing the problems we are experiencing. We propose, with this specification, to award alternate #2 for correction through the lining process. Staff recommended the total award of the base bid and the alternate of $163,659. Nawrocki asked where the money will come from. Hansen stated it is budgeted in our sanitary sewer construction fund. Nawrocki questioned where this bid was advertised. Hansen stated that the advertisement was done electronically. The bidders are required to be prequalified. This is regional work, with specific equipment required and 5 years experience necessary. Motion by Kelzenberg, second by Williams, to waive the reading of Resolution 2010 -113, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Kelzenberg, second by Williams, to adopt Resolution 2010 -113, being a resolution accepting bids and awarding the contract for 2010 Sanitary Sewer Lining, City Project No. 1004 including Alternate 1 to Visu- Sewer, Inc. of Pewaukee, Wisconsin based upon their low, qualified, responsible bid in the amount of $163,659.00 with funds to be appropriated from Fund 652- 51004- 5185; and, furthermore, to authorize the Mayor and City Manager to enter into a contract for the same. Upon vote: All ayes. Motion carried. C. New Business and Reports Nawrocki stated that he attended the Local Government Official's meeting which included a presentation on water resources in Anoka County and the NorthStar rail line. ADMINISTRATIVE REPORTS Report of the City Manager Fehst stated the anticipation of a work session on November 29 to discuss: Murzyn Hall rental rates, our newsletter, water meter read batteries, Zone 6 road work public hearing on December 6, and the budget. Fehst stated that with the outcome of the election it does not appear there will be any increase in LGA and it looks like we will still to need to remove ourselves from the dependence of this aid. Nawrocki indicated that there is a lot more work needed on the budget. We should not off set LGA with taxes. People are tired of double digit increases. The expenditures for the year should be decreased to the point that revenues cover expenditures without the use of any fund reserves. Nawrocki requested that a copy of the budget be made available to Mr. Watson. Nawrocki requested follow upon on the land acquisition costs from Savers for the Pedestrian Bridge on 49 Avenue. Hansen stated this would need to be reviewed further at a work session. We do not have the numbers at this time. Report of the City Attorney — nothing to report CITIZENS FORUM Malcolm Watson, 1717 49 Avenue, extended an invitation to the Veterans Day dinner sponsored by Anoka County Veterans, at Coon Rapids VFW Post 9625 on Saturday, November 13. Watson questioned how individual lines are opened when sewer pipes are lined. Hansen stated that entrances are cut in robotically. Watson referred to the gavel he was awarded by the City Manager's group in 1965 or 66. Nawrocki stated that this election process was more complicated and different than in the past. He stated that Patty Muscovitz, Council Secretary /City Clerk did an outstanding job in handling the election and the many changes involved. Peterson also complimented Muscovitz on the great job she did, as there is a lot more involved than we all know. We have received compliments from the judges on what a fine job she did. Nawrocki asked that the record show that the Mayor agreed with something he said Donna Schmitt, 4260 Tyler Street, announced that a benefit will be held on November 20 from noon to 3:00 p.m. at 4141 Stinson Boulevard for Adam and Maria Davis. Peterson stated: Remember our service men and women; don't take yourself too seriously, and do a random act of kindness. ADJOURNMENT Mayor Peterson adjourned the meeting at 7:35 p.m. 0, __A 11° :tricia Muscovitz ,AMC City C ,, C RESOLUTION NO. 2010-114 CANVASSING MUNICIPAL GENERAL ELECTION RETURNS WHEREAS, the City of Columbia Heights, did on the 2 day of November, 2010, conduct and hold a General Municipal Election for the purpose of electing a Mayor and two Council Members; and WHEREAS, the City Council of the City of Columbia Heights at a meeting of said Council held on the 8 day of November, 2010, did canvass the returns and results of said General Municipal Election; and WHEREAS, the following results were determined by said canvass of said General Municipal Election, to wit: TOTAL BALLOTS CAST IN ELECTION: 6,773 Valid Votes Cast for Mayor Valid Votes Cast for two 4 -Year Council Seats Gary L. Peterson 3,359 Tami Diehm 3,006 Bob Odden 2,492 Donna Schmitt 2,669 Overvotes 2 Bruce Kelzenberg 2,395 Times Blank Voted 887 Stan Hoium 1,830 Write -Ins 33 Times Blank Voted 1,005 Undervotes 1,605 Write -Ins 31 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Columbia Heights, that Gary L. Peterson is hereby elected Mayor, and that Tami Diehm and Donna Schmitt are hereby elected members of the City Council, assuming said offices on January 1, 2010. RESOLUTION NO. 2010 RESOLUTION AUTHORIZING USE OF UNEXHAUSTED PORTION OF EMPLOYER CONTRIBUTION TO INSURANCES TOWARD HEALTH SAVINGS ACCOUNT (HSA) WHEREAS, the health insurance options currently offered to eligible employees include a fully insured high option plan as well as high deductible (low option) health plans; WHEREAS, effective January 1, 2011, health insurance premiums will be increasing 42 %; WHEREAS, increasing participation in the high deductible health plans will ultimately have a positive effect on future premiums; WHEREAS, in an effort to encourage employees on individual health insurance coverage to participate in a high deductible health plan while at the same time minimizing the impact on the City budget, BE IT RESOLVED that the employer hereby authorizes the use of the unexhausted portion of the employer contribution toward insurances to be placed in a Health Savings Account; and BE IT FURTHER RESOLVED that such amount will not exceed $1,500 for 2011 and $1,500 for 2012; and BE IT FURTHER RESOLVED that such authorization will be effective immediately for non -union employees and for union employees once a memorandum of understanding is entered into between the City and the respective union(s). RESOLUTION NO. 2010 - 113 RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR 2010 SANITARY SEWER LINING, CITY PROJECT NO. 1004, TO VISU - SEWER, INC. WHEREAS, pursuant to an advertisement for bids for City Project No. 1004, Sanitary Sewer Lining bids were received, opened and tabulated according to law. The following bids were received complying with the advertisement: BIDDER TOTAL Visu- Sewer, Inc. $ 163,659.00 Veit and Company, Inc. $ 179,325.00 Lametti & Sons, Inc. $ 195,123.50 Michels Corporation $ 242,201.00 WHEREAS, it appears that Visu- Sewer, Inc. of Pewaukee, Wisconsin 53072 is the lowest responsible bidder. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF COLUMBIA HEIGHTS, MINNESOTA: 1. The Mayor and City Manager are hereby authorized and directed to enter into a contract with Visu- Sewer, Inc. in the name of the City of Columbia Heights, for the 2010 Sanitary Sewer Lining, City Project No. 1004, according to plans and specifications therefore approved by the Council. 2. The City Engineer is hereby authorized and directed to return, forthwith, to all bidders, the deposits made with their bids except the deposit of the successful bidder and the next lowest bidder shall be retained until the contract has been signed. 3. City Project No. 1004 shall be funded from the Sanitary Sewer Construction Fund.