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City Council Minutes October 8, 2007 Page 10 the contracts renegotiated which could lead to price changes. She noted that the city has the option to address concerns and renegotiate items under the contracts in two years. It was the consensus of the Council to reroute the garbage haulers to pickup in the rural areas earlier in the morning and to address issues of concern with the two contracted residential haulers when the contract allows. Discussion took place on rerycling and whether or not Elk River will be shifting to the single sort rerycling. Ms. Haug stated that there is some controversy over the single sort because if the glass breaks or cardboard gets wet the entire load is contaminated and cannot be recycled. She stated that it is written into the hauler contracts that Elk River is to utilize a two sort system. 5.4. Capital Improvement Plan A. Government Buildings Finance Director Tim Simon reviewed the Government Buildings Capital Improvement Plan as presented in his staff report. Councilmember Farber questioned if there is pending legislation coming in reference to liquor stores. Ms. Johnson explained that she expects that wine in grocery legislation will come up again in 2008. She stated that there has also been some discussion on city enterprise funds and that it is always a possibility that those funds map be entirely eliminated. Ms. Johnson noted that she would expect that if additional restrictions are placed on enterprise funds by the state, the change would be phased in to allow cities ample time to plan. She indicated that enough funds have been set aside to pay for the bonds, which is the city's highest priority. Councilmember Zerwas questioned if the street department will lease space until the new public works complex is constructed. Public Works Director Terry Maurer indicated that leasing should not be necessary as current space along with the temporary trailers that were purchased should be sufficient for the time being. Parks and Recreation Director Bill Maertz and Ice Arena Manager Rich Czech reviewed a concept for the Ice Arena expansion. Mr. Maertz indicated that the estimated costs are between $1.5 - $1.8 million but that does not include new locker rooms. Mr. Maertz explained that the school district has expressed interest in helping to defray the cost of building new locker rooms, possibly through alease-back option. Discussion took place on funding options for the expansion. Ms. Johnson stated there are different funding options depending on the time frame for the project. She stated that the project would probably require a levy increase. The consensus of the Council was for staff to come back with funding options. for the Arena expansion. ' Councilmember Gumphrey indicated that he met with a business owner who map be interested in purchasing naming rights for the Arena. He asked Mr. Czech to discuss an • amount with the Ice Arena Commission and let him know.