City Council Minutes 08-08-2011 WorkshopMINUTES
SPECIAL WORKSHOP/MEETING — MONTICELLO CITY COUNCIL
Monday, August 8, 2011— 4:00 p.m.
Boom Island Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
1. Call to Order
Mayor Herbst called the Special Meeting to order at 4 p.m.
2. Purpose of Workshop: Discussion of 2012 Proposed Departmental Budgets
3. Introduction
Jeff O'Neill welcomed everyone to the departmental budget workshop. He handed out a
department outline for presentations with a little time for questions. The departments
listed are presenting today and the remaining departments will present on August 22nd
Levy information is planned to be provided for Council on August 22. The preliminary
levy needs to be approved at the September 12t" meeting.
Tom Kelly discussed general information related to the 2012 budget. All debt levies will
be included in the proposed levy. Partial funding of rental equipment to build in funding
for future capital expenditures is included in the levy. Liquor funds are scheduled to be
transferred to street reconstruction and to MCC for building repairs. Street reconstruction
find levy would be $75,000. Tom Kelly explained that the tax levy will include funding
for storm water maintenance, which could also be funded by a utility charge. Levy will
include COLA and step increases in addition to health insurance and other benefits.
The proposed levy does not include certain items: wastewater treatment plant debt
payment (which is budgeted out of other funds currently) and reserves for future facilities
as included in the Capital Improverment Plan (Public Works facility, Fire Station, Bertram
Chain of Lakes Park).
Tom Kelly showed a chart with residential and commercial values and potential taxes for
2012. He noted that some of the potential increases are related to the new homestead
credit law passed by the State legislature. The new law is similar to the previous
homestead credit law, but shifts taxes from homestead to non - homestead property. The
State will no longer collect the funds and pay a portion to local governments. Instead the
tax capacity will decrease and that funding will no longer be part of the city's tax levy
calculation. Essentially the taxable market value of homes and businesses will be
calculated in a slightly different manner which will most likely increase taxes for a
number of tax payers due to the change in this law. Tom Kelly noted that the County is
not prepared to provide any figures at this time as they are programming their system for
the new calculation requirements.
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4. Finance Department
Tom Kelly presented the budget information for the Finance Department. He noted
several of the service trends that they are tracking. In the category of number of accounts
payable checks, he noted this has increased due to the number of FiberNet checks which
in turn has increased the workload for the department.
Lloyd Hilgart asked why FiberNet doesn't do their own accounting. Tom Kelly and Glen
Posusta explained that the Finance Department provides the needed oversight and
segregation of duties; the workload has been shifted within the current finance staff to
handle the duties.
Tom Kelly also talked about the annual audit and the process they go through during the
year to keep in compliance with audit requirements.
Tom Kelly noted that they anticipate no change from 2011, although the 2012 budget
does include step increases for staff.
5. Community Development Department
Angela Schumann explained that the Community Development Department (CDD) has
evolved over the last 10 years to create a department that is focused on community
responsiveness. The CDD includes planning & zoning, building and inspections, and
econ dev. Responsibilities include: facilitating development processes; administrating
zoning ordinance and permitting processes; long range land use planning; and community
engagement, communications and customer service.
Service trends show a decrease over the last few years due to the downturn in the
economy. There is a bright light in the commercial sector with some new opportunities
that staff is working on. Angela Schumann talked about the workload of staff and the
requests that generate that workload. She noted that there are many more residents to
serve along with a much larger business community. Angela Schumann discussed some
of the communication techniques which have been developed and are being used as tools
within the community and to the outside world.
Angela Schumann talked about upcoming initiatives, noting some initiatives being
proposed for the coming year. Recent initiatives have been completed to bring a number
of areas up to date which will serve the CDD as they work on projects in 2012.
There are some optional initiatives that the CDD is looking forward to in future years:
laserfiche, e- permitting, revision to subdivision ordinance, northwest area planning, and
right -of -way river restoration. Angela Schumann pointed out some initiatives that have
been dropped including reducing the number of city newsletters, some funding for River
Rider, and reduction in planning costs.
6. Building Safety Department
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Ron Hackemnueller showed the Building Department's mission and stated their goals to
provide quality service and increase the level of communication and public education in
this area, enforcement of code standards, thorough plan review, update handouts, and
inventory of blighted properties. Some of the old handouts are still referencing the old
zoning code and are in dire need of updating.
Brian Stumpf asked if the city has gotten the word out about blighted property and the
process that is needed to handle complaints related to blights. Angela Schumann and
Ron Hackenmueller have prepared materials and have handouts available. There are
some things beyond their control, especially in dealing with foreclosed properties, bank
processes, and court cases. Jeff O'Neill explained that there is a program where vacant
properties could be registered with the City; however, the process is complicated and the
City cannot do a lot with those properties. Angela Schumann noted that, in a discussion
with Tim Suchy, he said that there are companies out there that can help manage those
properties which relieves the city of those problems.
Ron Hackenmueller noted that the work load has shifted to more commercial and
industrial projects. Increase in population has created a lot more time on the phone with
residents that have questions about building and zoning issues. He gave the example of
helping a resident in a rental property that called with mold problems; Ron spent quite a
few hours helping this person.
Glen Posusta asked how long it takes to issue a building permit. Ron Hackemnueller said
that, on simple permits such as a deck, they tell the customer it could take up to 2 weeks,
which allows the building department sufficient time for plan review. On average those
permits take about a week.
Ron Hackenmueller pointed out that the department is in need of a replacement vehicle
for one of the vans. This would be the only capital item plamred for this department for
2012.
Lloyd Hilgart posed a question for the CDD department. He was approached by a
resident that needed a grading permit and was dismayed that it took over 2 weeks to get
that permit. Bruce Westby explained that part of the problem is a paper management
problem and it took staff significant time to find the records that were needed for this
project. Angela Schurnami noted that the delay was also related to some complicated
issues with the particular property located in Carlisle Village.
7. Community Center Department
Ditty Baltos led the presentation for the MCC facility and its programs. She noted the
many things they offer in the areas of recreation, fitness, and rental facilities. Kitty
Baltos talked about service trends and noted that in all areas the facility usage and
program participation showed increases over the years except for a slight dip in 2010.
Trends in 2011 show an increase again. Kitty Baltos showed the revenues that have been
derived from the various programs. Since remodeling the Warehouse room, they are
pushing to increase the size of their fitness classes to take advantage of the extra space.
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Friendship Island has proven to be a very popular offering for summer daycare for ages
5 -12.
Kitty Baltos summarized additional programs that are offered through MCC such as
softball leagues, hockey leagues, community garden, and Farmer's Market. The MCC
also gets involved in the community in a variety of events: Walk & Roll, Riverfest, ball
tournaments, Movies in the Park, National Night Out, Block party, Bertram Family Fun
Day, Halloween Kiddie Parade, and Santa and Easter events; these fit a needed niche in
the community.
Membership trends dipped slightly in 2010 but are up again in 2011 so they are hoping
that trend continues. Kitty Baltos also reviewed rental trends for weddings and other
internal and external uses. Kitty Baltos noted that they also provide decorating for
weddings which has honed out to be a huge success. Kitty Baltos pointed out "good
news/bad news" on trends: seeing more residents using facility but capacity is a problem.
Kitty Baltos discussed the proposed MCC natatorium improvements and explained why
these are important. Kitty Baltos pointed out the projected costs ranging between
$1,392,840 and $1,620,840 depending on which recommendations come to Council. It is
proposed for this funding to come from MCC Reserves ($900,000 estimated) and Liquor
Store funds. This would be one -time initiative. Jeff O'Neill pointed out that there would
be significant energy savings and rebates to be derived from the improvements.
Kitty Baltos talked about another priority area being program activities and event
development. This initiative is supported by the MCC Advisory Board and would
increase progralmning revenue. The projected cost of this would be $10,000 and would
include a summer intern. The MCC is also looking at improved marketing and
communication as a priority budget item and included $7,000 in the 2012 budget to
enhance their on -line presence. They are hoping to collaborate with the School's
Community Education progrannrning and facilities. There may be some software needs
associated with this. General facility maintenance is also budgeted for 2012 in the
amount of $50,000. This would provide replacements in certain areas: Mississippi Room
carpet, stairway flooring, and terrazzo repair by the front counter. The MCC is also
looking into providing river recreation services such as canoe and kayak rentals. They
are looking into a partnership with a nearby company that is equipped to provide such
6Y.31MUNIM
Kitty Baltos presented an optional priority of an outdoor splash park in the vicinity of the
previous skate and bike park. The Advisory Board would like to increase the water
features provided by the facility and she placed $250,000 in the budget to construct a
splash park. She did point out that it is difficult to generate revenues from such an
amenity as there are many communities provide free outdoor splash parks. Another
optional item is a budget item to consolidate recreation services with the School District
and she placed $30,000 in the budget for possible staffing needs.
Kitty Bahos noted that it is difficult to cover everything related to the MCC in such a
short time and invited questions from Council. Jeff O'Neill asked if there are any plans
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in place to utilize the Prairie Center space. Kitty Baltos noted that discussions have just
begun. One of the complications is providing equipment for set up, which would need to
be kept on site. Another area that needs some work is figuring out how to provide the
needed customer service for the Prairie Center, without impacting her staff adversely.
8. Enaineerin2 Department
Bruce Westby reviewed the primary services of the engineering department: develop and
manage a variety of street and utility programs; administer Storm Water Pollution
Prevention Program ( SWPPP); review complex building plans; issue ROW and grading
permits; and inspect projects, drainage and grading issues, and transportation issues.
About 30 ROW permits are issued each year and only a couple of grading permits. An
upcoming project will be to address street sign reflectivity maintenance.
Bruce Westby talked about service trends in his area with Hwy 25 traffic congestion
being a major issue. SWPPP requirements are not in compliance and eventually they
expect the State to address compliance with those laws. Numerous streets are
deteriorating and will need to keep up with street reconstruction program. MN Pollution
Control Agency is increasing the number of stringent requirements and his department is
charged with trying to keep up with those items.
Among the priority project budget items are: Trunk Hwy 25, Fallon Av Overpass,
second River crossing, and West 7t" Street. Bruce Westby pointed out the importance of
these projects and noted that costs vary for each project and will have to be determined.
City has some dedicated funding sources. The Transportation Advisory Committee will
be involved in these priority projects.
Another priority budget item is the SWPPP which is mandated by the MPCA. Purpose of
the program is to prevent localized and downstream flooding and pollution. The City has
not inspected or maintained any of the storrnwater ponds and will need to increase efforts
in this program. There will be staffing and possible future equipment costs. Bruce
Westby noted that the MPCA keeps adding rules and requirements in this area which will
increase costs related to this program. Cities have the option of helping fund this
program through stonnwater utility fees.
Bruce Westby talked about the Municipal State Aid System (MSAS) as a priority budget
item. The city's annual 2011 allotment was $387,828 which can be allocated for
construction and maintenance of streets. There are costs involved with keeping and
maintaining records for this program. WSB and Associates perform some of these duties
right now and hopefully city staff will be able to do some of that in the future when the
State develops their new software.
An optional budget item that Bruce Westby presented is city -wide pedestrian crosswalk
improvements. Brice Westby also noted that the city has deferred the TH 25 stonnwater
pond lift station that would be placed on the south side of town; the estimated cost of this
project is $1 million. Glen Posusta asked why this project is on the list as the area
doesn't have any flooding issues. Bruce Westby agreed that is the reason this project is
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deferred indefinitely until such time that a solution would be needed. All of these
projects are addressed in the CIP in future years.
Bruce Westby noted that he is recommending that the next street reconstruction project
be delayed until 2013 and reviewed the area that would be included in that.
9. Human Resources Department
Tracy Ergen demonstrated the areas of emphasis under Human Resources. She regards
the employees and the Council as her customers. Her contact with the public is pretty
much limited to the hiring process and some outside vendors. Tracy Ergen highlighted
some of the recent projects she has worked on such as pay equity, FiberNet staffing,
employee handbook and policies, and the safety committee /OSHA. Some of the areas of
main focus are: employee relations, benefits /payroll administration, recruitment and
selection, pay equity compliance, and policy development and administration.
Tracy Ergen noted that she has done a lot of work on job descriptions, including writing
new ones for all of the FiberNet staff. The employee handbook has been an ongoing
process, and will incorporate a number of policies related to employment. The biggest
portion of her job is employee relations — time spent on the phone or in person with
employee questions and concerns. Tracy Ergen noted that there is a lot of information on
the HR tab on the City Intranet.
One of her priority budget items is safety training and she placed $6,000 in the 2012
budget. The goal of this is to reduce the number of work injuries and claims; currently
the City has approximately 33% higher claims than other comparable cities. Tracy Ergen
talked about the need to improve the workstations in our office environments as that is
one of the most problematic areas. Tom Kelly explained that it is a combination of
ergonomics and education. Consensus of Council is to start determining what can be
done to improve the ergonomic issues. There were a short discussion on how the claim
ratios are calculated and it was noted that hopefully those would improve as the city
invests in more safety training and older claims roll off.
Lloyd Hilgart asked if Tracy Ergen could separate out the data by department to
determine the ratio of claims broken down by department. Tracy Ergen commented that
she has to do that when she reports to worker's comp. Lloyd Hilgart asked how the
premiums are detennined. Tom Kelly explained the process for calculating by
experience rating and then the results are rolled together in figuring the amount of the
premiurn.
Deferred budget items are Staff Training & Development with a cost estimated at $2000-
5000 annually and additional HR training classes which would run about $1000 a year.
10. Deputy ClerldProiect Coordinator budgets (IT, Animal Control, Elections,
Laserfiche)
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The Deputy Clerk along with the Administrative Assistant oversees records management
for the City in addition to many other administrative tasks. Services that are managed
under records management are the master filing system, electronic records retention,
retention and destruction schedules, and coordination between departments to scan and
store records. Unfortunately, the trend in this area has resulted in piles of records which
have to be sorted, scanned, stored and /or destroyed and over a year's backlog of filing.
With use of Laserfiche, this could include the ability to integrate with other equipment
and software systems to expand the way we manage our records. Incorporated into the
budget for future years is funding for Laserfiche to accomodate our needs for scanning
and storing records, capability to use our city website for access to city records by
internal and external users, and integrating Laserfiche with other software such as
Springbrook, PennitWorks and GIS. City staff is working on a presentation for an
upcoming Council meeting related to expansion of our Laserfiche system.
Information Technology (IT) services are centralized for most of the City and provide
oversight of all technology (internet, landline and cell phones, printers); purchasing and
installation of IT equipment and software, maintaining and updating of the city network
and servers, and troubleshooting problems as they occur. The city contracts with an
outside technician for assistance with data processing and works with other service
providers for phones and printers. The City uses a 4 -year replacement cycle for personal
computers which is budgeted on an annual basis. In addition, the city's servers and other
network equipment are updated and replaced approximately every 5 -8 years. The email
exchange server is on the list for replacement in 2012 and an additional backup file server
is needed to place in an off-site location.
Elections take place again in 2012 so that is a priority item for the budget. City staff
manages the Primary and General elections and the absentee voting for the City, keeps
current on election laws, works with candidates for local offices, and coordinates
processes with the county and state. There is a significant impact on job duties for the
Deputy Clerk during election time from approximately July to early November. Other
city employees are also involved, mainly with absentee balloting. A higher voter turnout
and more absentee voting is anticipated. The highest expense is expected to be for
miscellaneous professional services with payments to election judges, who are a critical
part of running an election and required by state election laws. We do not anticipate the
need for any new election equipment this year, but there will probably be some changes
coming in the relatively near future.
Animal Control services are provided for the City through a contracted employee. This
person handles animal control for Monticello residents, maintains the shelter building,
handles animal boarding for Monticello and a number of area cities, transports animals to
other shelters, and maintains records of incidents and boarding. The trends show an
increase in the number of calls for service, especially in the surnmer months. The Animal
Control Officer often works beyond the number of hours specified in the contract
(although the city only pays the contract amount). The Officer is responsible for
coordinating animal control with the Sheriff s Department and for any backup that is
needed. At one time there had been discussion on the potential for moving the Animal
Control position from a contact to a salaried one. If Council would want staff to look
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into that, a study should be completed to determine how feasible this would be.
Currently there are 2 contracts in place with the Officer: one for animal control for
Monticello and the other for managing the Shelter and working with area cities. City
staff plans to meet with the Animal Control Officer later this year to discuss and update
the contracts.
11. Department of Motor Vehicles
Ann Johnson talked about responsibilities of the Deputy Registrar's office (DMV) such
as transfer of licenses and titles, correcting titles, collect fees, issuing license plates,
processing driver license address changes and duplicates, and processing game and fish
licenses. Glen Posusta asked why they can do driver license address changes and
duplicate licenses, but not issue new licenses. Anti Johnson explained that they don't
require taking pictures and the State is not providing that option anymore. Ann explained
that the City had the choice of doing passports or driver licenses, but not both, as the state
did not want those processes to take place in the same office. The City chose to pursue
driver licenses as there would be a financial advantage to that. Since that time, they have
never been given the camera equipment that is needed for issuing new licenses.
Ann Johnson reviewed some of the service trends for the DMV including number of
transactions in various areas. The State tracks these transactions and provides feedback to
the DMV. The main source of revenue for the DMV is the transaction fee that is
charged. There are certain transactions for which they cannot charge, however. The goal
is to increase the volume of chargeable transactions in order to increase profit. Ann
Johnson recommends investigating new ways to advertise and to pursue dealerships for
business.
Main priority initiative is to keep staff educated and certified, which is required by the
State. The cost for this initiative is relatively minimal. Ann Johnson also noted that the
State's technology is lagging, and the City has worked hard to accommodate the
technology level that the DMV needs. Two other priorities for the office are enhancing
the security system to add some cameras and to increase the advertisement and marketing
for 2012. The DMV staff continues to look at various options for increasing their
visibility. One additional priority item is to maintain and replace the DMV vehicle when
needed. Having the vehicle allows them to provide courier service for dealerships which
has been very well received among area dealerships.
12. Adiournment
As there was no further business, Mayor Herbst adjourned the meeting at 6:48 p.m.
Recorder: Catherine M. Shuman ,
Approved: August 22, 2011 , �%
Attest: 0,t,�.C. -�"
C ministrator
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