City Council Minutes 08-26-2013 SpecialMINUTES
SPECIAL WORKSHOP MEETING — MONTICELLO CITY COUNCIL
Monday, August 26, 2013 — 5:00 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
Others: Jeff O'Neill, Department Heads: Randall Johnsen, Ann Eckman, Wayne Oberg,
Tracy Ergen, Tom Moores, Tom Pawelk, Kitty Baltos, Steve Joerg, Angela
Schumann, Ron Hackeninueller, and Matt Theisen; Shibani Bisson, Bret Weiss,
Brad Fyle
1. Call to Order
Mayor Herbst called the special meeting to order at 5 p.m.
2. Purpose of Workshop: 2014 Budget Presentations
Jeff O'Neill summarized the purpose of the workshop to allow department heads to
present their budgets. Each will be allotted a certain amount of time.
Liquor Store Manager Randall Johnsen presented budget slides for the Liquor Store. He
started out with their mission statement and then showed slides about what they do.
Service stats include 15,000 customers served per month with 2012 sales of $4.85 million
and 2012 gross profits of $1.21 million. Randall Johnsen talked about the wine and beer
tastings they hold each year and the Riverfest contributions. Randall Johnsen mentioned
that the store also promotes community fundraisers. Randall Johnsen introduced the staff
consisting of five full -time employees and eleven part-time employees and talked about
the equipment that supports the store. Randall Johnsen provided revenue information of
year -to -date sales from 2008 through 2012 and trends for 2014.
Ann Eckman gave a presentation on the DMV office. Ann Eckman talked about the
importance of accuracy in their office and the value of the work they do. Ann Eckman
pointed out that all her staff is certified for registrations and titling, including deputy
registration, computer verified registration, expedited title service, and the new Genesis
system. Ann Eckman talked about non - quantified services that they offer to assist
customers with general questions and the resources that are available. Ann Eckman
reviewed the revenues that they can charge in the DMV office noting that a number of
services generate no fees. The 2012 state report card for their office received an error
rating of 1.12% (excellent). Ann Eckman showed the status of their financial balance and
also mentioned the upcoming release of the new state titling software.
Wayne Oberg represented the Finance Team and stated their mission statement and the
areas of responsibility. Wayne Oberg provided slides on each team member and what
they accomplish each year. Wayne Oberg showed the number of financial transactions
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for FiberNet, which the finance department is now processing. Wayne Oberg provided
some philosophy related to relationships and leadership.
Tracy Ergen was the presenter for Human Resources. The overview covered services
provided and plans for 2014. Services she provides include recruitment, benefits, pay
equity, policies, training, compliance with federal and state laws, worker compensation,
unemployment, labor relations, and performance management. Tracy Ergen noted some
of the external resources that she utilizes. Tracy Ergen reviewed the progress of the
safety committee and noted the positive results in lowering work comp claims and
savings in premiums for the city. Tracy Ergen talked about her work in improving work
ergonomics. Priority projects for 2014 include update of the drug and alcohol policy,
address health care reform, career development training, and laserfiche for records
retention. Budget impact for 2014 is very minimal and mostly in the area of training.
Tracy Ergen talked about the organizational staffing structure of the city. She noted that
the economic development director and engineer positions were eliminated when those
people left employment with the city, and the payroll clerk position was changed to part -
time. Some of the recommendations for 2014 are to eliminate the engineering assistant
position, transition the Communications Coordinator to full -time in June 2014, and look
at replacement options for the Public Works Director position which will be vacant soon.
Wayne Oberg presented the overall property tax levy and budget infonnation for the city.
He reviewed the important dates, noting the 3% levy limit and changes to general sales
tax for 2014. Wayne Oberg showed the tax rate comparisons for cities in Wright County
and by taxing authority. Wayne Oberg talked about property tax dependence at 82%
compared to other types of revenue sources and noted that the city will not receive LGA
from the state. Wayne Oberg talked about the expenditures that make up the general fund
of which 40% is personnel services. Wayne Oberg talked about the debt service levy
needed in the upcoming years; 2014 will require a levy increase of 4.2% to cover debt
payments. Wayne Oberg explained that there are impacts from delinquent special
assessments. Wayne Oberg reviewed the tax base changes that are anticipated: nuclear
plant value is $33 million lower, value for building permits issued totaled $12 million,
and TIF 1 -6 was decertified with a value of $3.5 million.
Tom Moores presented for the Streets Department which consists of seven full -time
employees and two seasonal workers. He talked about the responsibilities of the
department including street maintenance and cleaning, sign maintenance, sidewalk
inspections and .maintenance, compost facilities, and tree trimming. Tom Moores showed
projected costs at $835,393 for his department, which includes a portion for unanticipated
work. Tom Moores talked about the Ice & Snow budget which is projected at $226,716
for plowing, supplies and equipment maintenance. Tom Moores covered the Shop &
Garage budget projected at $188,519 which includes maintenance of equipment and
buildings for public works. Street Lights budget is projected at $427,500 which includes
electricity costs and monitoring. Storm Water also comes under the streets department
and the budget is projected at $123,208 for inspecting and maintaining ponds, ditches,
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manholes, etc. Parking Lots are maintained by the streets department at a projected
budget of $9,301.
Torn Moores discussed some of the capital improvements that would be desirable for
2014: crack seal router, blacktop planner, ditch mowing tractor, city street signs, pond
restoration, and a sign lab. Tom Moores also talked about the Pavement Management
Plan that they have been working on and discussed the value of proper street
maintenance. Normal road life without any maintenance would be about 25 years; with a
good pavement management plan the life can be extended up to 60 years. Tom Moores
shared information about some of the street pavement processes such as seal coat, fog
seal, bituminous overlay, and reclaim.
Tom Pawelk started his presentation with the Parks mission statement and discussion of
the responsibilities of the parks employees. There are five categories in the parks
department: Park and Recreation, Shade Tree, Ballfields, Cemetery, and Park
Improvements.
Park and Recreation includes park maintenance, inspections, park rentals, community
events, snow plowing, skate rinks, cemetery maintenance, and athletic fields
maintenance. Tom Pawelk provided an overview of the service trends noting the increase
in usage of parks in all areas. Tom Pawelk talked about Bertram Chain of Lakes park
development, which includes a budget of $5000 for 2014. Tom Pawelk noted that he
prepared a pathway maintenance plan and updates it annually. He talked about some
areas where the parks department is falling behind: playground safety inspections,
pathway maintenance, boulevard tree plantings, shade tree inventory, and training for
staff. Tom Pawelk mentioned that the River Mill playground is 15 years old and needs to
be replaced. The Hillside Cemetery also needs stone replacement.
Tom Pawelk reviewed the purpose of the Shade Tree fund and noted the city has planted
over 2000 trees in the last 6 years. The tree chipper is budgeted for replacement in 2014.
The Ballfield fund oversees the summer recreation programs that take place at the Xcel
Ballfields. Tom Pawelk would like to see the dugouts covered and a safer playing
surface on the infields.
The Cemetery fund is an enterprise fund that sustains itself through revenues received for
graves, maintenance and memorials. Eventually, they would like to see the cemetery
system placed on GIS.
Tom Pawelk talked about some of the improvements he is budgeting for 2014 such as
Fallon Ave trail connection, Monti Club Hill development, River Mill playground
replacement, and pathway improvements (micro surfacing).
Monticello Community Center was represented by Kitty Baltos, who provided the
mission statement for the facility and programs. Kitty Baltos provided pictures to capture
the areas of the facility that the Monticello Community Center maintains. Kitty Baltos
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also reviewed the variety of community events and programs they provide. Kitty Baltos
showed membership statistics and noted the increase in usage. Kitty Baltos talked about
her staff consisting of 7 full -time employees and around 90 part-time employees (aquatic,
group instructors, guest service, childcare, climbing wall, programming, custodian, and
ballfield concessions). Kitty Baltos reviewed service trends, noting that daily user
numbers have gone down some since 2011, so this is an area they want to focus on. Kitty
Baltos talked briefly about some of the building and equipment maintenance issues.
Kitty Baltos displayed revenue information and noted some changes for 2014 with an
overall 3.3% increase in operational revenue for the 2014 budget. Statistics show a slight
decline in wedding receptions and pool parties. Kitty Baltos provided a number of
changes anticipated for 2014 including reducing part-time staff hours as possible; finding
sponsors for community events; replacing gym floor and stair coverings and childcare
flooring; replacing heat valves; and improving building maintenance.
Torn. Perrault mentioned that the flooring in the senior center may need replacing soon.
Glen Posusta asked about trying to get the National Guard to participate in funding some
of the maintenance and repair costs. Jeff O'Neill mentioned that they have not been
successful in bringing theirs to the table for discussion at this time. City staff will be
working on this.
Steve Joerg provided the presentation for the fire department and started out with their
mission statement. He described the fire department as a paid -on -call department
consisting of 30 members. Some of the services provided by the fire department are fire
suppression, fire education for businesses, vehicle extrications and traffic accidents,
traffic control, special response to assist other departments, and training for special
incidents. Steve Joerg reviewed equipment and noted Engine 1 needs to be refurbished;
it should last another 12 years if maintained properly. Steve Joerg talked about the Fire
Marshall position which has been staffed by Marc Simpson. His duties include
coordination with building department, code enforcement, incident inspections,
preplanning for new businesses, rental housing enforcement, and firefighter safety. Steve
Joerg talked about planning for replacement of Tender 2 truck and moved the aerial truck
to be replaced in 2016. The Tender truck is used to provide extra water at fire sites and
would be used as a backup vehicle for the department. Steve Joerg recommended that the
fire call rate for 2014 be increased by $2 per hour; this would apply to call outs and
training. He feels that this can be justified as the number of calls has decreased and
requirements for a firefighter are much more demanding.
Jeff O'Neill opened up the meeting for questions. Clint Herbst asked DMV if there is
equipment that will be required down the road. Ann Eckman said they will need to
upgrade the state software in the near future and will want to make sure their computer
system stays updated to accommodate those changes. Clint Herbst asked Tom Moores if
he foresees any changes that could increase efficiency. Clint Herbst commented about
the items that are falling behind and perhaps there is a need for a plan for seasonal help.
Randall Johnsen stated that the Liquor Store is pretty much at the maximum for storage
and floor space and may need to consider expansion at some time in the near future. Jeff
O'Neill asked Tom Pawelk about emerald ash borer planning; Tom Pawelk said they
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have a plan in place and costs would be covered under the Shade Tree budget at such
time that would become a problem.
At 6:52 pan., Mayor Herbst called for a continuation of the meeting to reconvene after
the regular Council meeting.
3. Continuation of Special Meeting
Mayor Herbst reconvened the special meeting at 8:14 pan.
Angela Schumann led off the presentation of the Community Development department
with the mission statement. Angela Schumann talked about the activities of community
development. Angela Schumann provided statistics about development services from
2009 to 2013. Angela Schumann reviewed other services and initiatives under
community development, including coordination and communication on projects,
planning, grant writing, events, and responsiveness with citizens. Angela Schumann
mentioned the personnel of the community development and administration team and
pointed out some of the consultant resources that are utilized. Angela Schumann also
mentioned some of the tools used by community development, such as GIS /City Link,
Laserfiche, and Wright County's online government portal. Angela Schumann reviewed
her budgeted revenues and expenditures noting that there will be little change in 2014.
Angela Schumann talked about service trends and increasing activity in development and
building services. Angela Schumann introduced the addition of a city communications
coordinator and the value that we will be able to realize from that position. Angela
Schumann discussed administrative support services and noted all of the areas that are
covered by these staff members.
Angela Schumann also presented information about the city's Economic Development
Authority and noted the various areas that are administered by the EDA. Angela
Schumann went through the EDA Workplan objectives for 2013 -2014, which include
develop marketing materials, continue efforts to recognize and support existing
businesses, support downtown redevelopment, and develop a spending plan for use of
available excess increment. Angela Schumann explained the change in how the EDA
requests budget funding; their request for 2014 is $80,000 (same as 2013) plus $12,000
for their share of the market matching contract. Anticipated non -TIF interest revenue is
estimated at $20,000. Expenses for EDA are estimated at a total of $112,000 for
personnel, consulting, and other expenditures.
Ron Hackenmueller gave a presentation for the department of Building Safety, starting
out with the mission statement. Ron Hackenmueller itemized services provided by his
department such as building permits and inspections, rental housing program, property
nuisances, emergency preparedness, and a variety of customer service activities. There
are three employees in the department and they have two work vehicles. Ron
Hackenmueller noted some of the service trends: more detached single family homes,
busy inspections schedule, and more phone calls about building and zoning issues and
blight. Ron Hackenmueller provided some statistics on total permits issued and the
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valuation of those permits. Glen Posusta asked about repossessed homes and Ron
Hackenmueller said there are not many remaining. Ron Hackenmueller talked about the
rental licensing program and the fees collected pretty much cover the costs. The priority
budget item is to replace the Dodge Caravan with a projected cost up to $22,500; he is
currently waiting for the new state purchasing contract before bringing this to council.
Ron Hackemnueller discussed some of the trends for the future and the importance of
maintaining staff levels to handle the work load.
Shibani Bisson from WSB presented the budget slides for the Engineering department.
Shibani Bisson talked about the services administered by the engineering staff: street
network, transportation, wastewater, storm water, and other miscellaneous tasks. Shibani
Bisson talked about the Transportation Advisory Committee and the role they play in
transportation initiatives, including TH 25 /CSAH 75, Fallon Avenue overpass, and
Second River Crossing. Shibani Bisson discussed service trends for signal improvements
(such as battery backup and flashing yellow arrows); pavement management program;
storm water prevention plan program and MS4 requirements; waste water treatment
facility improvements; and GIS and potential future uses. Shibani Bisson discussed the
relationship with WSB as the provider of consultant engineering services and identified
some of the advantages such as having a variety of staff and service areas available to the
city. WSB is proposing a monthly retainer of $7,500 per month for 2014 rather than an
hourly rate. This fee is based on the services to be delivered: weekly office hours onsite,
address citizen requests, participate in meetings, infrastructure planning and budgeting,
liaison to outside agencies, policy formation, participate in city communication plan, and
coordination with public works. In addition there are a number of special project services
which are recommended to be budgeted at $70,000 for 2014. Shibani Bisson went
through the 2014 projects that are included in the CIP.
Wayne Oberg noted that Council will be asked to provide input into which projects
should be funded through a bond issue for this year and for 2014. Projects under
consideration include the WWTF Phase I improvements, Hwy 25/75 improvements,
Fallon Avenue overpass, traffic signal modifications, and equipment.
Matt Theisen gave a presentation for the water and sewer departments. He talked about
the Water department first, providing some facts about water pumping in Monticello.
Matt Theisen reviewed service trends for the Water Department including water meters,
hydrants, some locating, flush water mains, water samples, water towers, and meter
readings. Matt Theisen talked about the Annual Report of Water Use and the possibility
of the rates increasing significantly for the annual DNR surcharge for pumping water.
Matt Theisen mentioned some of the planned improvements and is budgeting $150,000
for possible improvements. Matt Theisen showed some of the tasks performed by the
water department, including the refurbishment of Well #4. For the Sewer Department,
Matt Theisen provided service trends for sanitary sewer services, including maintaining
sewer lines and lift stations. Matt Theisen is budgeting $150,000 for possible sewer
improvements in 2014.
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Jeff O'Neill thanked the staff and conunended them for providing excellent information
for their budget presentations. Jeff O'Neill thanked Council for allowing staff to present.
Lloyd Hilgart asked about the tax levy for the hospital district and it was confirmed that
CentraCare Health would be absorbing that as part of their agreement in taking over the
hospital.
4. Adjournment
TOM PERRAULT MOVED TO ADJOURN AT 9:46 P.M. LLOYD HILGART
SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuinan
Approved: September 9, 2013
Attest: 6t�
ministrator
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