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HomeMy WebLinkAbout2009-08-11 CC MIN Special MeetingFIRE DEPARTMENT THE OIETN /LACE OF MINNESOTA City Council Special Meeting August 11, 2009 SPECIAL MEETING 4:30 P.M. Mayor Harycki called the meeting to order at 4:30 p.m. Present: Councilmembers Cook, Gag, Polehna, Roush and Mayor Harycki Staff: City Administrator Hansen Jennifer Roeller, Senior Account Clerk OTHER BUSINESS Budget City Administrator Hansen noted per the instructions given to him at the Council retreat session, the budget presented is a zero percent (0 increase budget and that the operating levy is $14,068 less than last year. He stated that the Debt Service, which the City has no control over due to prior decisions, went up $100,000. He stated that looking at the overall budget, developing a 0% increase budget was a daunting task because of declining permit/fee revenues, unallotment, etc. which amounted to a little over $1 million. Mr. Hansen pointed out the City has a one -time chance in the 2010 budget to levy back for the state aid money lost in 2008 and 2009; but he said he would not recommend doing that as it would result in a huge tax increase. Mayor Harycki asked Mr. Hansen to check previous meeting minutes for the direction given Public Works regarding the percentage of future street project budgets that should be obligated to mill and overlay work and to be sure that the 2010 budget reflects that percentage. Chief Glaser stated all the line items he can control reflect a 0% percent increase, as directed. He said there have been no major changes since 2009, noting that significant cuts were made in the 2009 budget, including reductions in administrative support and training activity. He suggested there are several items in the 2010 budget that need to be looked at: a full -time captain position that has yet to be filled and is included in the budget; four paid on -call positions that are currently being filled. In discussion, it was noted the captain's position is to replace a captain who retired earlier this year. City Administrator Hansen said he would recommend keeping the position in the budget, but not necessarily filling the position at this time. Regarding the capital budget, Chief City Council Meeting Special August 11, 2009 COMMUNITY DEVELOPMENT MIS Glaser said one item that he believes necessary is a fire engine replacement, noting there is about $275,000 put aside for that purchase and the purchase is scheduled for 2010 in the Capital Improvement Program (CIP). Chief Glaser pointed out that currently the City has three apparatuses that are over 20 years old. Mayor Harycki suggested that it would be helpful to have a capital asset schedule. Chief Glaser said according to the CIP, he had one replacement scheduled for 2010 and another for 2013. City Administrator Hansen said he did support the requested purchase of pager replacements and turnout gear. Councilmember Roush asked Chief Glaser if he thought a ladder truck was a necessity since there is a truck available in a nearby community; responded that he absolutely believed a ladder truck was essential for the safety of the community. Community Development Director Turnblad said his budget is a little under a 0% increase. He stated that there are no discretionary funds included; any money for training /education is to send Planning Commissioners to training, not for staff. Mayor Harycki suggested considering electronic transmission of committee packets, etc. to cut down on the manual paperwork in the future; after discussion, Mayor Harycki suggested checking with School District 834 to see if there are some cooperative approaches to the issue of going wireless. Regarding inspections, Mr. Turnblad noted that a certain amount of training /education is required to maintain licensure and is reflected in the budget. Councilmember Roush asked about vehicles, whether City vehicles are used for inspections and whether those vehicles are taken home. Mr. Turnblad stated the City vehicles are used for the inspections but are not taken home. MIS Specialist Holman provided handouts of departmental MIS purchases for 2009 capital outlay, which totaled $309,800, and a handout listing expenditures she felt should be included in both 2009 and 2010. Most of the items were budgeted in 2009, but split over two years, she explained and that there are several new projects that are included. She also provided a replacement schedule, noting that none of the computers are being replaced in three years the replacement schedule goes from four to eight years, with the majority being between six and eight years. She noted that she has had discussions with Councilmember Gag regarding putting wireless in Council chambers and that is included in the 2009 budget. Mr. Gag noted that earlier in this session, the Council had discussed both wireless and using PDF files for distribution of commission /council packets. Ms. Holman said that could be done easily and noted that she and Clerk Ward had applied for a grant for paperless agenda software; she said there are many options for going paperless. Mayor Harycki noted the School Board is interested in this issue as well and asked Ms. Holman to work with the School District. Ms. Holman said also included in the 2009 budget is a solution to the server room issue; City Administrator Hansen said the proposal is to keep the server room in the existing location but get a better temperature control system. Ms. Holman briefly reviewed the 2010 proposed expenditures, including re- cabling, upgraded phone system, licensing Page 2 of 8 City Council Meeting Special August 11, 2009 LIBRARY fees, computer replacement by department. Mayor Harycki asked about the postage machine replacement; Ms. Holman explained that the Postal Service is phasing out certain types of the meters, and the City may or may not have to replace its unit in 2010. Mayor Harycki asked if any thought had been given to e- mailing quarterly utility bills; Jennifer Roeller, Senior Account Clerk responded the City could have that capability with a computer software upgrade. Ms. Holman said she would check with Finance Director Harrison, about the possible purchase of the upgrade. There was discussion about a previous proposal to combine billing functions with the Water Department; City Administrator Hansen said that had been discussed when Finance lost a person, but said he thought the Water Department declined to do that. There was discussion of computer equipment for police cars, and problems associated with powering the computers from the car battery; Mayor Harycki asked that this issue be put on the work agenda. Library Director Bertalmio and Board Member Ned Gordon explained a new rental program for best sellers and DVDs that will be used to generate revenues to offset previous revenue from gifts, noting similar programs are in use in most library systems in the metropolitan area. On the expenditure side, Ms. Bertalmio noted there has been a voluntary unpaid leave program, which she assumes will be continued in 2010 but potential savings really can't be anticipated at this time. There was discussion of the library being closed on Sundays; Ms. Bertalmio said while patrons don't like that closing, Sunday is the most expensive day for staffing and in keeping with the policy of Sunday closing during the summer months. Councilmember Cook asked about lights when the library is closed; Ms. Bertalmio explained the lights may be on for after -hours cleaning or from the security lights. Councilmember Roush asked about overdue fines; Ms. Bertalmio responded there are no fines, rather a late fee charged when material is returned so late it has been considered lost. Regarding capital expenditures, Mr. Hansen said he would support the request for an additional 3M self- check, referring to the use of the existing machines that otherwise would require a staff member's time. Ms. Bertalmio said the library has been attempting to utilize machines for repetitive tasks, as well as to help trim staff hours in order to come in under budget. Councilmember Cook asked if a new machine might result in less staffing costs; Ms. Bertalmio said there might be some minimal reduction, but the hope would be to avoid any increase in staff costs. Councilmember Roush asked about grant opportunities to help purchase the equipment; Ms. Bertalmio said she could check on that possibility but noted that 3M gave the library $300,000 worth of equipment when it opened and is unlikely to consider another donation and noted that most foundations want to do programs or materials. City Administrator Hansen questioned the proposed $24,000 for computer replacement, stating he didn't know what the library's schedule was. Ms. Bertalmio said the library is on about a four -year replacement schedule, not for staff computers which is a longer schedule, but for public use computers; she noted that none are being replaced in 2009. Mayor Harycki said other departments are being asked to provide an equipment/capital asset and replacement schedule and asked the Page 3 of 8 City Council Meeting Special August 11, 2009 library to provide one as well. Councilmember Roush asked for a grand total of expenditures and asked whether the self -check equipment was included in that total; City Administrator Hansen stated the library was asked to submit a flat budget and stated he believes the proposal represents that direction. Council took a five minute break, with the Mayor noting for the record that members were purchasing their own meals. Mayor Harycki reconvened the meeting at 6:34 p.m. POLICE, CIVIL DEFENSE, PARKING AND DARE Chief Gannaway noted that nothing is being added in personnel however, two positions were applied for through the COPS Recovery Program and those were denied. He stated that there is a grant application pending for an administrative position, he noted. Mayor Harycki referred to several drug raids that had been in the news and asked if there is any forfeiture money; Chief Gannaway responded that the City does not participate in the narcotics unit due to lack of personnel and thus is not eligible for the forfeiture money. Chief Gannaway stated he cut the supply budget where possible, including the fuel budget. Chief Gannaway noted that squad cars that are not left idling results in having to jump start the vehicles; Mayor Harycki noted that problem was discussed earlier in the session, with Ms. Holman asked to work with the Chief on a possible solution. Chief Gannaway noted some funding for training must be included due to licensing requirements. The Chief pointed out doctor fees have been increased due to a recent legal ruling regarding breath tests, which has resulted in additional blood /urine testing. Regarding the capital budget, Chief Gannaway stated there is a request for three squad cars, noting they try to replace three cars a year due to the escalating maintenance costs after three years. Mayor Harycki pointed out that earlier in the year the Council directed that the new vehicles not be put in service until the old ones gave out. Chief Gannaway responded that they held out putting the new vehicles in service as long as possible and just recently put the last new car in service. The Chief stated there is money in the forfeiture fund and he may be asking to use that money to upgrade the department's rifles; however, that expenditure was not included in the budget. Mayor Harycki wondered whether it might be possible to use forfeiture money to fund an officer to participate in the narcotics unit and whether enough forfeiture money from the narcotics unit might pay for the ongoing participation. Councilmember Roush asked about cell phones; Chief Gannaway said not every officer has a cell phone one is assigned to each squad car. There was discussion of personal use of cell phones; the Chief said that is limited. Mayor Harycki questioned bonding for squad car purchase; City Administrator Hansen explained that the cars are such a small portion of a bond issue and putting the purchase in operating budget would subject it to levy limits. There was discussion about the possibility of leasing the vehicles. Mayor Harycki suggested perhaps upgrading the CSO officer to a first -year officer and eliminating the CSO Page 4 of 8 City Council Meeting Special August 11, 2009 position due to the limitations of the position; Chief Gannaway spoke of the many functions the CSO performs. Regarding Civil Defense, City Administrator Hansen noted there is an error in the capital request column and the amount should be eliminated. Mayor Harycki asked if there is a siren in the downtown area and suggested looking into that. The rest of the Civil Defense budget consists of mandatory items, it was noted. Regarding DARE, the Chief said the department spends $500 and does the program at one school, St. Croix Catholic. He said he has spoken with the principal and the school would like to continue the program and may be able to share the costs. Related to the Parking, Chief Gannaway stated there are no increases. Mayor Harycki asked if there should be estimates for the new parking ramp; City Administrator Hansen said the Parking Commission has not made any decisions regarding fees, and the thought is to commit revenues to a maintenance fund. Councilmember Roush asked about the variations in fees collected; Chief Gannaway spoke of recent changes in the collection system, and City Administrator Hansen suggested the economy is also having an impact. Councilmember Cook asked about charges for service; City Administrator Hansen said that relates to development and maintenance of a web site, as well as design of new signage, etc. Mr. Hansen also noted that a city -wide signage system will have to be developed for the parking ramp. Councilmember Cook wondered whether revenue from the parking ramp might be expected to pay for such costs in the future; City Administrator Hansen explained how revenue projections for the ramp were developed and noted the ramp is not included in this budget because there is nothing to work from. City Administrator Hansen pointed out parking is an enterprise fund, not dependent on tax dollars or meant to subsidize other City funds. Councilmember Cook and Councilmember Polehna asked about the funding for training /education; Chief Gannaway noted that the parking enforcement officers must attend certain classes. Chief Gannaway brought up the issue of funding for the Youth Service Bureau. He stated he had received a call from Youth Service Bureau Director Paul Weiler who is concerned about funding cuts and suggested the possibility of a pay -as- you -go arrangement for youths referred for diversion programs. Chief Gannaway noted that would likely come from his department and is not included in the budget. CITY ATTORNEY City Attorney Magnuson referred to the summary of time records associated with the retainer portion of his work, which he said has grown consistently and this year amounts to about 600 hours. He also talked about the arrangement for billing, which he said is identical to his contract with the City of North Oaks except that the retainer is not paid in PERA wages, but a straight monthly fee. Mayor Harycki said there are three components to Mr. Magnuson's work a retainer, which the Mayor said is really a wage with Social Security, retirement and health benefits; the legal work as far as prosecution; and what amounts to pass -thru costs, such as development agreements. Page 5 of 8 City Council Meeting Special August 11, 2009 The Mayor suggested the question relates to paying a wage and billing for services, the division between employment and consulting. Mayor Harycki asked what the City receives for the $102,000 retainer, the "wage." Mr. Magnuson responded that the City gets all services except prosecution services and billable work, such as trials, TIF work, improvement projects, and developer charge -back work, all not part of the general fund expenses. Mr. Magnuson also pointed out that he does not receive all employee benefits. Mr. Magnuson also provided a listing of his overhead expenses. He said the Council could decide to go out for bids for service, but suggested that the City will be in a position of having to also hire an expert when it comes to tax increment financing work, improvement projects, assessment appeals, etc. Mr. Magnuson suggested the City would have to have two lawyers in- house, one to deal with prosecution because that is almost a full -time work load, along with two secretaries, a law library, etc. Councilmember Roush said he thought the confusion relates to whether Mr. Magnuson is an employee or private contractor; he read an excerpt from a Minnesota League of Cities document which defines the relationship as the degree of control the purported employer has over the person in question. Mr. Magnuson agreed that by definition he is an independent contractor. There was additional discussion about the historical nature of the relationship with the attorney and the advantages of doing services in -house or through a contract relationship. Mayor Harycki suggested at the very least the City ought to bid out prosecution services. Councilmember Gag noted at the retreat session it was suggested that all contracts be examined, not singling one out; he said a process needs to be developed. Mayor Harycki said he would like to see the list of all the City contracts. MAYOR AND COUNCIL FINANCE City Administrator Hansen said he was able to save some money, $33,500, by reducing medical benefits for three of the five Councilmembers. He said lobbying was eliminated, but he left $5,000 in the budget for Mayor and Council lobbying. He said he also left $2,500 in the budget for seminar /conference fees; it was consensus to eliminate that amount, along with the money for hotels and meals. Mr. Hansen also stated he had eliminated memberships with the exception of the League of Minnesota Cities. There was a question about projected benefits for Councilmembers; Mr. Hansen said he would check on that. Mr. Hansen stated Finance Director Harrison has cut her budget to the bone. Mr. Hansen explained the cost for training and education is for college classes for an employee who is learning new skills to enable her to assume more duties. ADMINISTRATION Mr. Hansen noted the line item for other professional services is for the labor attorney as all six contracts are up this year. Seminar /conference fees are primarily for Clerk Ward to attend the Municipal Clerks function and for him to attend the Minnesota City Page 6of8 City Council Meeting Special August 11, 2009 Management conference. Councilmember Cook pointed out that Hennepin County has eliminated all conferences and all costs associated with retaining licenses. City Administrator Hansen stated that is in contracts and would have to be negotiated out. ELECTIONS Mr. Hansen noted there will be a big increase because there will be an election in 2010. PLANT /CITY HALL Mr. Hansen stated supplies have been reduced. Other professional services, $10,000, are for plumbers, electricians, etc. for needed work during the year. He briefly referred to several maintenance agreements, primarily with Johnson Controls. UNALLOCATED Mr. Hansen noted that is where the costs associated with hospital /medical /retirees are placed. Mayor Harycki asked about the accounting for the money being put toward the future liability for hospital /medical /retirees. Mr. Hansen said this reflects actual cash expenses. Mr. Hansen stated there is no funding slated for Youth Service Bureau, Community Threads and suggested the Council will be lobbied on behalf of these agencies. Mayor Harycki asked for some numbers on the possible costs of pay- as -you- go arrangement with the Youth Service Bureau. The Fire Relief Association is a pass thru, it was noted. SPECIAL EVENTS Mr. Hansen noted he projected the same amount in ticket sales, $45,000, from Lumberjack Days as in 2009 and that the listed donation of $15,000 goes to fireworks. He stated that according to the contract, the City contributes $40,000 to fireworks. Councilmember Roush questioned the $55,000 spent on fireworks as compared to paying an employee salary; Councilmember Polehna pointed out the fireworks bring visitors to town that help local businesses that pay local property taxes. Councilmember Gag asked about the Beautification Fund, whether the City was transferring funds from the marathon, bike race, etc. Mr. Hansen pointed out the bike race was billed $1,000, which didn't cover expenses, but the Council never took any action on whether to transfer the money. Councilmember Gag said he thought the Council was very specific in charging $1 per participant for the beautification fund. Mayor Harycki suggested putting that as an agenda item. WASHINGTON COUNTY RECYCLING Mr. Hansen noted this is pass -thru money from Washington County and has no affect on the budget. Page 7 of 8 City Council Meeting Special August 11, 2009 Motion by Councilmember Gag, seconded by Councilmember Polehn to adjourn at 8:29 p.m. All in favor. ATTEST: Larry D. H City Administrator Hansen noted the City has until September 15 to submit a preliminary budget to the County and until December 30 to submit a final budget. He noted that once a budget is submitted September 15, it can only be reduced, not increased. Mayor Harycki noted there are still some open items, benchmarks, schedule of assets by department, Youth Service Bureau vs. police costs. It was agreed to have another budget session at the 4:30 p.m. portion of the September 1 Council meeting. Mayor Harycki pointed out the tax rate is going up 4.2 percent even though the operating levy is basically flat. City Administrator Hansen pointed out that the tax rate is going up primarily because the tax base went down and due to debt service, which the Council has no control over. He said if the Council wants to bring the tax rate down to basically zero he will have to find an additional $91,000 in cuts. en, City Administrator Page 8 of 8 arycki, Mayor