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THE IIITH'LACE Of IIIIINNEIOTA
City Council Meeting
August 19,2008
REGULAR MEETING
7:00 PM
Mayor Harycki called the meeting to order at 7 p.m.
Present: Councilmembers Gag, Milbrandt, Nyberg, Polehna and Mayor Harycki
Staff present:
City Administrator Hansen
City Attorney Magnuson
Community Development Director Turnblad
Finance Director Harrison
Assistant Fire Chief Ballis
Police Chief Gannaway
Public Works Director Sanders
PlEAGE OF AllEGIANCE
Mayor Harycki led the Council and audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
The August 12, 2008 regular and recessed minutes will be available for approval at the
September 2,2008 meeting.
PETITIONS, INDIVIDUALS, DELEGATIONS & COMMENDATIONS
2007 Audit Results - Brock Geven, Larsen Allen & Co.
Brock Geyen reviewed the results of the audit report and financial statement highlights.
He stated that three opinions were issued as a result of the audit. He stated an
unqualified or clean opinion was issued on the financial statement, indicating that all the
balances and related disclosures in the document are materially correct. The second
opinion deals with internal controls; the audit resulted in no related findings, which is
also a clean report. Mr. Geyen noted the no findings related to internal controls was a
very good report and is very uncommon among municipalities and a clean report was
also issued related to the City's legal compliance.
Mr. Geyen highlighted some of the financial results, including the various business-type
funds and the government funds, such as the St. Croix Valley Recreation Center. He
also addressed total revenue by source, capital-related expenditures, net tax capacity,
legal debt margin, and general fund balance.
City Council Meeting
August 19, 2008
Mr. Geyen concluded his presentation by stating the results of the audit and that the
audit reports are very good, very clean, and the financial results for the year were also
very positive. As a whole, he said, one could make the conclusion that the City is in a
stronger financial position at the end of 2007 than it was at the end of 2006.
The Council thanked Finance Director Harrison and her staff for a job well done.
OPEN FORUM
Gene "Taco" Bealka, 711 Lake Drive, Stillwater, asked about-a line item - signs and
lighting - that appears on the quarterly utility bill. Mayor Harycki explained that is a fee
that was instituted several years ago. City Administrator Hansen stated that in 2004, the
City was under a severe budget problem, and the City created a signs and lighting
charge to cover about $200,000 in electricity charges. He stated that the fee was a way
to take that charge out of levy limits and charge residents on their utility bills. Mr. Bealka
pointed out that the lights at the Lily Lake tennis courts are on until nearly midnight on a
regular basis; Mr. Hansen said the lights are regulated by a timer and should go off at
10 p.m. that he would have Public Works check on that. Mr. Bealka proposed that all
senior citizens and hardship cases be excluded from the signs/lighting fee. There was
discussion about perhaps having coin-operated mechanisms installed at the tennis
courts. Mayor Harycki noted that the lighting for the tennis courts is paid for through the
parks fund and general property tax, not the signs and lighting fee. Mr. Bealka reiterated
his proposal that seniors and hardship cases be excluded from the fee.
STAFF REPORTS
Assistant Fire Chief Ballis reviewed Chief Glaser's memo outlining possible options for
changes to the vendor and commercial business inspection fees. He said one option for
the vendor inspection fee is to change to an annual, one-time permit fee; currently the
fee is $100 per event. Another option is a daily permit with a fee of $25. The third
option would be to eliminate the fee altogether. Regarding the inspection fee for
commercial businesses, City Administrator Hansen noted previous concerns regarding
the impact on small businesses and that the recommendation is to base the fee on
square-footage which would reduce the impact on small businesses significantly.
Councilmember Nyberg spoke in favor of Option 2 for both the commercial businesses
(square-footage based) and Option 2 for the vendor inspections ($25 daily permit).
Councilmember Milbrandt suggested modifying the daily fee option to include a
maximum of $100 per event. Mayor Harycki spoke in favor of Option 3 - eliminating the
fees for both the vendor and commercial business inspections. Councilmember Polehna
asked about the ramification of eliminating the fees. City Administrator Hansen stated
the '09 budget anticipates about $50,000 in revenue generated by the inspection fees; if
the Council decides to eliminate the fees, the Council would need to consider another
revenue generating idea or a deduction in the budget.
Page 2 of 5
City Council Meeting
August 19,2008
Motion by Councilmember Milbrandt, seconded by Councilmember Gag to adopt Resolution
2008-107, revising fire inspection fees, which accepts Option 2 under Item 5, with an event cap
of $100; and Option 2 under Item 8 with 0-1,500 square-foot a $25 fee, 1,500-2,500 square
feet $50, and the rest to stay as presented.
Councilmember Polehna asked for a clarification regarding Summer Tuesdays.
Councilmember Milbrandt amended his motion to add that Summer Tuesdays be a separate
line item separately with an inspection fee of $25 per day or $50 per the entire event;
Councilmember Gag agreed to second the amended motion.
Ayes: Councilmembers Gag, Milbrandt, Nyberg, and Polehna
Nays: Mayor Harycki
Community Development Director Turnblad stated Norm Steere has volunteered to
serve as an at-large representative on the Downtown Sandwich Board Task Force and
asked the Council if they wished to appoint Mr. Steere to the task force. Councilmember
Milbrandt pointed out that Mr. Steere is neither a downtown business owner/property
owner nor a resident and it was consensus to continue to solicit volunteer to fill the
opening.
Finance Director Harrison stated the City had received its levy limit certification. She
stated the proposed levy given at the recent budget meeting is about $16,000 less than
the levy limit. She referred to a worksheet highlighting the impact of the levy. She stated
the major changes are the fiscal disparities portion of the levy, which went up
significantly, and the total tax capacity, which went down. She noted these are still
rough estimates; the final figures won't be known until September. The other significant
difference is the impact of the tax levy. She stated that the impact of the levy could
range from $0.57 to $2.89 increase in the City's share of property taxes. She also stated
that during the budget workshops, the Council expressed interest in increasing the
City's contribution to the Youth Service Bureau from $35,000 to $40,000, and giving a
$5,000 contribution to the Lucy Winton Bell Foundation. She stated that with some of
the changes made during the budget workshops, funding was made available for those
two contributions, and they are included in the budget and levy. The contributions did
not increase the levy. She asked the Council whether it wished to adopt the proposed
budget and levy on September 2 or hold another workshop. Consensus was the Council
was comfortable with the proposed budget and levy and to prepare the necessary
resolutions for adoption on September 2.
Public Works Director Sanders stated he had checked into traffic-calming seminars, as
directed by the Council. He said Police Chief Gannaway found a class, "Solving
Neighborhood Traffic Problems," offered by the University of Wisconsin. The cost of the
2-day seminar, which is offered in Madison, is $800. Mayor Harycki noted the intent was
to have one person from the Police Department and one from Public Works attend and
wondered if there were funds available in the budget. City Administrator Hansen said
there were available funds should the Council wish to send two staff members.
Page 3 of 5
City Council Meeting
August 19, 2008
Mr. Sanders also told the Council that staff had been attending meetings with other
government entities to discuss the possibility of purchasing bulk fuel through one
contract. He informed the Council that the City would be able to purchase fuel through
the contract for a set fee for 2009. He said staff will be attending future meetings and
will come back with additional information.
Mr. Sanders noted the drainage improvement project at Greeley and Curve Crest would
be beginning shortly and that it is not anticipated the project will necessitate road
closures, but will result in one-lane traffic that will likely cause some delays.
Mr. Sanders referred to a memo from Assistant Engineer Kraftson regarding a proposal
to utilize hydroseeding, rather than sod, for the turf restoration for this year's street
improvement project. He stated that seeding would result in a savings of about
$15,000. Mayor Harycki asked about the homeowners' responsibility for watering; Mr.
Sanders said informational brochures would be sent to residents' regarding the
maintenance. Councilmember Polehna asked if there were specifications for the seed;
Mr. Sanders responded in the affirmative and also noted that the City had changed its
specifications for top soil and now requires pulverized top soil.
City Administrator Hansen said every year when the City does its insurance renewal,
the League of Minnesota Cities asks if the City wants to waive its liability limitations. He
noted the City has never done that, and he would never recommend that be done.
Motion by Councilmember Polehna, seconded by Councilmember Milbrandt, moved that the
City not waive its tort liability limits. All in favor.
CONSENT AGENDA
Motion by Councilmember Nyberg, seconded by Councilmember Gag to approve the Consent
Agenda.
Ayes: Councilmembers Gag, Milbrandt, Nyberg, Polehna and Mayor Harycki
Nays: None
Resolution 2008-106, directing payment of bills
COUNCIL REQUEST ITEMS
Councilmember Nyberg stated he had received several calls regarding increased traffic
in the Croixwood area due to the Manning Avenue project and asked if it would be
possible to step up enforcement or post traffic control signs to slow the traffic down.
Police Chief Gannaway said that the department would take care of the matter.
Page 4 of 5
City Council Meeting
August 19,2008
Councilmember Polehna suggested a discussion about lobbying efforts, and spoke of
the importance of communicating with each other and presenting a unified front. It was
agreed to discuss lobbying issues in an October workshop.
Mayor Harycki suggested the McKusick test results as another workshop topic for the
fall or winter. Councilmember Polehna asked about a meeting with the Brown's Creek
Watershed District; Mr. Sanders said that will likely take place in November.
Mayor Harycki asked about the status of a water issue at the small park across from the
Lowell Inn. Mr. Sanders said staff has been looking at the possibility of installing a small
pump, but the difficulty is getting electricity to the site. Mr. Sanders said staff is looking
at the options for getting power to the site.
Mayor Harycki asked staff to look into the possibility of a cro~swalklstriping along side of
the road to facilitate folks in wheelchairs crossing from the Clinic to Tower Drive. Mayor
Harycki also mentioned the possibility of a crosswalk on Greeley near Nelson's Ice
Cream and at Ramsey Park; Mr. Sanders said staff is looking at the best location for the
Greeley crosswalk, and he has asked the County for a crosswalk at Ramsey Park.
STAFF REPORTS
City Administrator Hansen stated that on August. 29, the City. would be hosting a group
of nine Haitians who will be here learning about U.S. city government.
ADJOURNMENT
Motion by Councilmember Nyberg, seconded by Councilmember Polehna to adjourn at 8:10
p.m. ,/
ATTEST:
L~~~e~istrator
Resolution 2008-106, directing payment of bills
Resolution 2008-107, revising fire inspection fees
Page 5 of 5