Loading...
City Council Minutes 08-22-2011 WorkshopMINUTES SPECIAL WORKSHOP /MEETING— MONTICELLO CITY COUNCIL Monday, August 22, 2011— 4:00 p.m. Bridge 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 started the workshop by explaining the process of department presentations followed by a short period for questions. After departments present, the Council should have some time to discuss overall budget. If needed, they could set a follow up date for further review of the 2012 budget. Lloyd Hilgart asked how the taxes were calculated in comparing impact on homes of different values. Tom Kelly explained the calculation was based on tax capacity from 2011 and there are some variations based on the new laws for homestead credit calculation. 4. Economic Development Department Megan Barnett Livgard talked about responsibilities of Economic Development for achieving objectives of the comprehensive plan for attracting jobs, expanding the tax base, enhancing the economic vitality of downtown, and facilitating redevelopment. She talked about recent service trends and noted there is an upswing in manufacturing expansion and relocation and redevelopment opportunities. Marketing is an important area along with financing tools. Embracing Downtown implementation is moving forward and the city will be focusing on this more next year. An optional area that needs more emphasis is training, leadership, and education to attract /retain businesses and keep employees in Monticello. Megan Barnett Livgard noted that Economic Development has cut back on marketing materials and reduced conference and tradeshow attendance. She has shifted dollars to the Economic Development Authority (EDA) fund to focus on Economic Development, Clint Herbst commented on some of the disconnects between the EDA and City Council and noted that there are some joint meetings planned to review future efforts. 5. Liquor Store Department City Council Special Meeting Minutes — August 22, 2011 Page 1 Randall Johnsen commented that the primary task of the Liquor Store is to control responsible and safe sales of alcohol. He talked about revenues generated by the Liquor Store and the value to the City generating sales of $4.5 million in 2010 and a gross profit of $631,161, which was an increase of 13.72% over the previous year. He also noted service trends where both sales and profits have increased from 2008 through the present. Overall sales increased more than $500,000 in less than 3 years. One initiative is to replace the store carpeting and have budgeted $38,000 for 2012. This would be done in several stages so that the store can continue operations during the work. They are recommending colored concrete rather than carpeting as a replacement. Another proposed initiative is to replace the checkout counters, which are worn and not efficient. $45,000 is budgeted for 2012 and projected life would be 25 years. Clint Herbst asked if there are people that would be able to look over the store and make recommendations as to the layout of the store before the counters would be replaced. Randall noted that he would plan to do that and he also has some ideas on improving the counter layout. Tom Kelly commented that the MN Municipal Beverage Assn probably provides some of those services. Randall Johnsen said they would also be looking at some additional security cameras to switch from analog to digital surveillance with $3000 budgeted toward that. Clint Herbst asked if those cameras could be viewed remotely, and Randall Johnsen noted that would be the case. The liquor store is also looking at additional storage shelving as the current storage space is maxed out and budgeted $5000. Lloyd Hilgart asked about the overall space for the Liquor Store and whether it is adequate. Randall Johnsen noted that they are really close to maximizing the space they have and, at that time, would need to enlarge the store for the sales volume or add a second store. Glen Posusta commented that he felt the budget recommendations were good updates for the store. 6. FiberNet Department Ben Rauft talked about the different services provided by FiberNet Monticello (FNM) including telephone, data, video, and co- location. He talked about the potential for co- location services to outside agencies. For service trends, Ben Ranft noted that landline phone service in the community has been declining slightly due to the increased use of cell phones. Internet and television remain strong and they are continuing to increase their market share. They are working on moving into the wireless market for delivering high -speed services into areas that are not serviced by fiber. Ben Ranft talked about adding services for more apartment buildings and working on adjusting the fees for business telephones to attract more customers. Ben Ranft presented some projections on cash flow. Main focus is adding customers with new offerings for apartment buildings, Monticello Air, and local programming on City Council Special Meeting Minutes — August 22, 2011 Page 2 public access channels. Ben Ranft also mentioned the LAN network they are working on for linking city buildings and possible expansion for local businesses. Optional initiatives are utilization of the Prairie Conference Center for meetings and teleconferencing as an additional revenue source. Currently, there is no money budgeted for improvements for the upstairs space. Lloyd Hilgart asked about FNM reaching positive cash flow next year and asked for an explanation. Ben Ranft noted they expect to reach positive cash flow for operations of the business not including the debt service. The debt service payment amounts to $1.8 million for 2012. Jeff O'Neill also explained that the deviation is largely due to the lawsuit and subsequent delay in getting everything rolling. Brian Stumpf asked for an explanation of expectations in mid-2019. Ben Ranft explained that projections show that is the time when the business breaks even for both operations and debt service. Lloyd Hilgart asked what happens when reserves are exhausted. Tom Kelly said there are some unknowns but the City has some options they can draw on. 7. Public Works Department Bob Pasebke talked about the mission for Public Works including management of resources, infrastructure design, customer service, use of technology and a safe workplace. Public Works consists of 4 main divisions: Administration, Parks, Streets, and Water & Sewer utilities. Bob Paschke noted they budgeted for a staff car for 2012 but could be held over to the following year. Bob Paschke talked about the proposed budget for Solid Waste /Recycling and noted some possible changes they are looking at for recycling collection. Clint Herbst feels that they should expect lower rates than projected due to changes made in the contract with Veolia. Bob Paschke also gave an overview of the Waste Water Treatment Facility budget and talked about some future issues surrounding the NPDES permit which expires in December 2012. Bob Paschke talked about several options that are being investigated to keep the plant in compliance with future regulations, including load limits for phosphorous. Clint Herbst asked about application of sludge and what kind of options would be available. Bob explained that alternative processes would need to be applied. Bob Pascbke provided an overview of Public Works as a maintenance performance department to operate the infrastructure that has been developed. He noted that with the growth of the City over the past 10 years, maintenance and infrastructure requirements increased which, in turn, increased the labor and equipment demands. Glen Posusta asked about possibility of establishing an agreement with Buffalo for Waste Water Treatment Facility needs. Clint Herbst noted that still remains one of the options for discussion. City Council Special Meeting Minutes — August 22, 2011 Page 3 8. Parks Department Tom Pawelk reviewed the mission for the Parks Department and noted they are responsible for 29 parks, 16.5 miles of trails, and 2 cemeteries. He oversees Park & Recreation, Shade Tree, Ballfield maintenance, Cemeteries, and Park improvements. Main duties of the department include: park and trail maintenance, playground inspections, park rentals, community events, snow plowing, skate rinks, and cemetery maintenance. He noted the service trends show increases in all areas of park and trail use. Tom Pawelk talked about the Bertram Chain of Lakes Regional Park development and some of the responsibilities that will accompany upcoming development. He talked about the workloads for the park dept including park maintenance, thistle removal, increased athletic field maintenance, pathway signage, in -house remodeling projects, 2008 hail damage follow -up, maintain city irrigation systems, and equipment repairs. He noted that the workload has increased but the seasonal staff has been cut back. Lloyd Hilgart asked about the tree planting program. Tom Pawelk explained that the City plants trees on boulevards and there are a number of areas that still need to have trees planted. Torn Pawelk talked about some of the budget initiatives including replacement of a lawn mower /snow blower and 1 ton truck and addition of a full -time labor position (instead of a year round seasonal employee). Clint Herbst asked about the impact of moving several large parks to contract mowing rather than purchasing replacement equipment and hiring seasonal employees. He would like Tom Pawelk to work the numbers again to see what makes most sense. Tom Pawelk talked about the Shade Tree program and explained what falls under this program. The city provides tree sales to residents, offers educational programs, and inspects and removes diseased trees on an annual basis. Budgeted for 2012 is replacement of the tree chopper and 300 trees for boulevard planting. Under Ballfrelds, Tom Pawelk noted that they work with Monticello Community Center on coordinating events at the ballfrelds, with the Parks Department in charge of field maintenance for league play. They will need to hire re- lamping of the ballfreld lights next year and construct roofs for the dugouts. The two cemeteries, Riverside and Hillside, are maintained by the Parks Department. Tom Pawelk talked about the status of graves at the Riverside Cemetery. They would eventually like to place the cemetery grid on GIS so that it is easier to locate and track grave placements. They are also looking into adding a mausoleum for above ground cremation graves in future years. There was a short discussion on placement of a mausoleum in the cemetery. Tom Pawelk commented that they have received several compliments on the mowing in the cemetery this past season. Parks Improvements contemplated for 2012 are for pathway construction and sealcoating, Monte Hill park development, miscellaneous improvements at parks and cemeteries, and ballfield re- lamping and dugout roofs. Jeff O'Neill commented that perhaps the electric City Council Special Meeting Minutes — August 22, 2011 Page 4 surcharge funds could be used for some of the lighting upgrades. Lloyd Hilgart asked if the dugout roofs were damaged and Tom Pawelk explained that there are no roofs on them currently. Clint Herbst mentioned the possibility of installing a video cam at Swan Park. 9. Streets Department Tom Moores stated that there are 7 full -time and 3 seasonal workers that make up the Streets department. He outlined responsibilities such as maintenance of streets, boulevards, parking lots, street lights, signs, sidewalks, and storm water systems. The projected budget for 2012 is $748,792. Torn Moores broke down the projected budget with $411,567 for wages and benefits; $54,000 for motor fuels; $30,000 for vehicle & equipment repairs; $30,000 for sign materials; and $125,000 for sealcoating and striping improvements. Tom Perrault asked how the fuel budget is calculated and Tom Moores explained how they arrive at a figure. Tom Moores explained that there are new requirements for sign reflectivity and they are beginning replacement of signs next year. Clint Herbst suggested that the Streets Department inventory existing signage and snake sure they do not replace signs that are not needed. Tom Moores talked about the Ice and Snow budget which covers snow removal of streets plus other public areas such as sidewalks, paths and parking lots. Budget is estimated at $230,034. Tom Moores noted that this budget includes wages for employees when they are performing snow removal duties. The Shop & Garage budget is estimated at $170,610 for 2012. This includes maintenance of city vehicles and equipment for Public Works and the DMV. Streetlights are monitored by the Streets Department and include budgets for electricity, lighting supplies and some maintenance agreements. Clint Herbst asked Tom Moores to put together breakdown of costs for maintenance agreements that make up that part of the budget. Torn Moores mentioned that there are some problems with lighting in some areas that may have to be repaired or improved. Stormwater costs include maintaining storm ponds and ditches so that they flow at design levels. The 2012 budget proposes inspections and maintenance of various areas in the city and some improvements for pond restoration. Tom Moores also noted problems they are experiencing with residents that drain their sump pumps into the city streets and storm drains. The Streets Department maintains city parking lots and the budget includes $14,754 for some pavement repairs and landscaping. Tom Moores reviewed some of the capital expenditures that are in the CIP for 2012: • Replace mid -size loader • Purchase Tack trailer City Council Special Meeting Minutes — August 22, 2011 Page 5 • Replace 1 -ton dump • Battery backup systems for traffic signals (anticipates some reimbursement may be available for this) • Overlay rural outlying streets (4 miles for which the city is responsible) • Stormwater pond restoration/maintenance There was some discussion on how to address the rural streets. Clint Herbst recommended looking into options where the city might legally assess properties that are not in city limits but would benefit by the improvements. 10. Water & Sewer Department Matt Theisen reviewed the mission statement for the Water Department and talked about service trends for his department, which have all increased over time. A budget item for 2012 is to continue improvements to the existing watermains and lines at a projected cost of $150,000. Another improvement budgeted is to install a SCADA system for monitoring all city water facilities in order to improve response time for problems, with costs budgeted over 2011 and 2012. Matt Theisen reviewed the mission statement and service trends for the Sewer Department. For 2012, there is $150,000 budgeted for improving the existing sewer system. Again, there are funds budgeted over 2011 and 2012 to help pay for the cost of a SCADA system. Clint Herbst asked if the Sewer Department was involved in trucking effluent from the Waste Water Treatment Facility, and Matt Theisen noted that they no longer help with that. Glen Posusta asked how the city staff is notified when there is a power failure. Matt Theisen explained that Water and Sewer staff carry pagers all hours of the day. All lift stations have diesel generators that are used in case of power failure. When staff is notified by auto dialers that there is a power failure, they respond and monitor the situation. If needed, they switch over to generators. City staff does test the generators weekly and keeps the fuel at the correct levels. 11. Fire Department Fire Chief Steve Joerg introduced himself and reviewed the profile of the Monticello Fire Department. There are 4 officers and a Fire Marshall, and the department is fully staffed at 30 firefighters. Glen Posusta asked about a backup for the fire marshall, and Steve Joerg explained that he does that. The Fire Department trains on the first, second and fourth Monday of every month and holds their meeting on the 3`d Monday. Steve Joerg discussed the various services provided by the Fire Department for the community: fire suppression, fire prevention education, extrication, various rescue operations, nuclear plant training, traffic support, arson investigation, first aid, weather watch, sandbagging, respond to alarms, and mutual aid to surrounding fire departments. Steve Joerg noted that Land of Lakes Choirboys contributes about $80,000 every year City Council Special Meeting Minutes — August 22, 2011 Page 6 which helps support community education and pay for fire department equipment and supplies. Steve Joerg noted that he is currently working with Cargill on a hazmat program due to the amount of ammonia that is stored on site. Cargill is offering up to $33,000 toward a hazmat team which would consist of firefighters from Monticello and area communities. Steve Joerg also talked about coordination of efforts with the Xcel Nuclear Plant. One initiative for the Monticello Fire Department that is being proposed is to add a full - time Fire Chief position, which would report to the City Administrator and be responsible for managing the fire department. Steve Joerg reviewed the specific duties that would be proposed for such a position. This position would be expected to reside within 15 minutes of the Fire Department. Steve Joerg also went through potential requirements for background and experience. The starting salary recommended for the position is $50,000 per year, plus benefits to be determined by staff. Tom Perrault asked where Steve Joerg came up with the figure of $50,000 and he explained that he had done some comparisons with other cities. Council noted that the Human Resources Director would need to review the position for pay equity and identify an appropriate salary level range. 12. General Discussion Jeff O'Neill thanked staff for their presentations and noted that completes the department presentations for Council. He asked Tom Kelly to go over general budget information proposed for 2012. Tom Kelly noted that the 2012 budget includes all debt levies to cover debt according to bond schedules, partial equipment rental charge (to fund future equipment purchases), street reconstruction levy, and salary and health benefit increases. He commented briefly on the impacts from the new homestead credit calculation rules. Jeff O'Neill pointed out some items that they want Council to be aware that will need to be considered in future years, but are not included in current levies. Tom Kelly noted that the preliminary levy needs to be adopted by Sept 15th. The amount adopted would be the maximum that can be levied for 2012. Council would have the option of decreasing the final levy from the preliminary amount adopted. Tom Kelly explained the budget summary showing the General Fund and Community Center Fund specifically. The MCC budget would put their reserves into a negative balance with the proposed natatorium improvements. Tom Kelly reviewed the levy summary with an increase of 15.35% for a proposed levy of $8,856,070 and noted that the City would be well below the levy limits. Tom Kelly commented that the 2012 tax capacity is not known at this time as the County is still working on reprogramming of their system to handle the new homestead credit calculations. Tom Kelly noted that he participated in a League of MN Cities webinar that discussed trends of property values and estimates that values will be lower overall which would cause taxes to increase compared to 2011. Tom Kelly is hoping that the County will be able to provide him with estimated values for 2012 taxes prior to the September 12`x' Council meeting. Tom Kelly did some sampling on six random homes in Monticello City Council Special Meeting Minutes — August 22, 2011 Page 7 using 2012 estimated values and compared the tax results to the taxes paid between 2004 and 2006, which were higher in those years. Tom Kelly noted some other budget proposals that are being considered for an increase in water rates (5 %) and sewer rates (7 %) to keep up with operational costs. Tom Kelly noted that those funds are not building reserves to fund replacing infrastructure in future years. Clint Herbst suggested that Tom Kelly run some numbers to see what the costs would be to help fund future infrastructure costs. Jeff O'Neill summarized the options for Council to budget the preliminary levy as proposed at $8,856,070 or propose an alternate amount. Clint Herbst thanked the department heads for their presentations and said he felt that was very helpful for Council. He would like to see some of the infonnation summarized for Council for them to review and then meet prior to the Sept 12tt' Council meeting. He would like to see the preliminary levy set at a reasonable amount close to what they anticipate for the final levy. Tom Perrault asked if the County is required to provide tax capacity amounts to the City by a certain deadline similar to the City's deadline to provide preliminary levy to the County by Sept 15th. Tom Kelly said he is working closely with the County Assessor to get the information as soon as possible. Lloyd Hilgart asked where the extra fiends would come from if and when the MCC improvements would go over budget. Tom Kelly explained that the City cash is pooled and could help fund any differences with the MCC eventually repaying the funds. It could also be funded from Liquor Store reserves and repaid after debt service is paid off. 12. Adiournment BRIAN STUMPF MOVED TO ADJOURN AT 6:50 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman yk Approved: September 12, 2011 A /� Attest: Cof,Winistrator City Council Special Meeting Minutes — August 22, 2011 Page 8