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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 Special City Council Minutes — August 26, 2013 Page 1 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, Special City Council Minutes — August 26, 2013 Page 2 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 Special City Council Minutes — August 26, 2013 Page 3 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 Special City Council Minutes — August 26, 2013 Page 4 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 Special City Council Minutes — August 26, 2013 Page 5 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. Special City Council Minutes —August 26, 2013 Page 6 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 Special City Council Minutes — August 26, 2013 Page 7