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HomeMy WebLinkAbout09.06.11 Council Minutes 7a- COUNCIL MINUTES REGULAR September 6, 2011 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. Mayor Larson swore-in David McKnight as City Administrator. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Bartholomay, Donnelly, Fogarty, May None Andrea Poehler, City Attorney; David McKnight, City Administrator; Teresa Walters, Finance Director; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Brenda Wendlandt, Human Resources Director; Tony Wippler, Assistant City Planner; Cynthia Muller, Executive Assistant Beve Preece, Shannon Walsh, Terry Stapf 4. APPROVE AGENDA Councilmember May pulled item 7j) Dental Insurance Proposal for discussion. MOTION by Fogarty, second by Bartholomay to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Superintendent Jay Haugen Congratulated Council on hiring David McKnight as City Administrator. Mr. Haugen worked with Mr. McKnight in Mendota Heights. Mr. Haugen believes in collaboration with cities, counties and school districts. He wants the school district to be the one where people hear the word Farmington and wish their children attended Farmington schools. That will happen when the whole community wants and values the kind of changes we want to bring to the community. We need to work together or that vision will not be realized. Schools are more than test scores and standards. We have invited opportunities for children to chase their dreams, to fmd their spark, to use and develop their talents to build their life on. Schools only have so many opportunities, so those are things children develop in their communities. Mayor Larson noted the City is looking forward to finding ways to work together. 6. CITIZEN COMMENTS a) Response to Mr. Orndorf A response was sent to Mr. Omdorfregarding issues raised at the last Council meeting. 4 Council Minutes (Regular) September 6, 2011 Page 2 7. CONSENT AGENDA MOTION by Fogarty, second by Donnelly to approve the Consent Agenda as follows: a) Approved Council Minutes (8/15/11 Regular)(8/15/11 Special)(8/22/11 Workshop) b) Adopted RESOLUTION R43-11 Approving City Administrator Appointments- Administration c) Approved Temporary On-Sale Liquor License St. Michael's Church- Administration d) Adopted RESOLUTION R44-11 Accepting Donations Rambling River Center Improvement Project - Parks and Recreation e) Approved School and Conference Heritage Preservation Commission - Planning f) Approved School and Conference 2011 BWSR Academy - Engineering g) Approved School and Conference - Fire Department h) Adopted RESOLUTION R45-11 Approving Gambling Event Permit Farmington Youth Hockey Association - Administration i) Adopted RESOLUTION R46-11 Approving Safe and Sober Grant Agreement- Police Department k) Approved Bills APIF, MOTION CARRIED. j) Approve Dental Insurance Proposal- Human Resources Councilmember May asked if it was common practice for staff to review the proposal. Staff is recommending the proposal from Dearborn National, so Councilmember May asked what the process entailed. Human Resources Director Wendlandt explained staff used Mr. Jim Ochs from Integrity BenefIts. He prepared the proposal and reviewed it with her. That included if the bid specitications were met, how they compared with current benefIts, benefit level, service level, customer service experience, reference information, and cost. Councilmember May asked about the percent of single versus family coverage. Staff replied it is not quite 50/50. Everyone has to take single coverage in order to get good group rates. Councilmember May noted in the private sector there is a choice whether to take it or not. Staff explained as we are a smaller employer we get better rates ifwe require 100% participation. Councilmember May noted Prinicpal has a lower single coverage, but higher family. It was noted the second year rate guarantee is important. Councilmember May asked ifthe rates have been stable and why would some provide a second year guarantee and some would not. Staff stated it is the preference of the carrier. Councilmember May noted according to the proposals, the Assurant rate is cheaper. Staff stated the benefIts were less and the provider network was smaller. With Dearborn National and Guardian almost all Farmington dentists are in both networks as well as a signiticant number in surrounding communities. Councilmember Fogarty stated the second year guarantee is important because dental rates continue to go up. For next year's budget at these rates, self- insurance is something we may want to consider. She guessed a lot of employees 5 Council Minutes (Regular) September 6, 20 II Page 3 are not utilizing 20% of what we are paying. She felt a cost analysis should be done on this. Human Resources Director Wendlandt stated self-insurance was discussed last year and this year, however, the discussion was put off and it will be discussed next year. MOTION by Fogarty, second by Bartholomay to accept the proposal submitted by Dearborn National for group dental insurance. Voting for: Larson, Bartholomay, Donnelly, Fogarty. Voting against: May. MOTION CARRIED. 8. PUBLIC HEARINGS a) Appeal of Zoning Board of Adjustment Decision - Magnificent Me Daycare - Planning This is an appeal to the decision ofthe Zoning Board of Adjustment regarding the location ofthe playground. At the July 12,2011 Planning Commission meeting, the Commission approved a conditional use permit for Magnificent Me Daycare at 195th Street and Pilot Knob Road. At that time an onsite play area was not approved with the CUP. The applicant applied for an amendment to the CUP for the onsite play area. It was not approved with the CUP because the Commission wanted identified safety measures. At the August 9,2011, Planning Commission meeting, the applicants did provide for additional safety measures. The daycare will be located in the center ofthe strip mall. The proposed safety measures are the children would walk on the sidewalk to the northwest comer of the building, cross the parking lot in a crosswalk and there will be three speed bumps. The teachers will supervise the children from the daycare to the play area. The amendment does include the reduction of 11 parking spaces. The play area is located in the parking lot. It would be 100% fenced. The off-street parking requirements are still being met. The motion to approve the amendment failed at the Planning Commission meeting. Mayor Larson asked about other options. Staff noted the expectation was to have the play area next to the building. The applicants felt this would not work. The applicant appealed the failed vote to the Council. Stafffeels the applicant has met the needed safety measures. If they cannot have an onsite play area, the daycare would use Meadowview Park which is a quarter mile from the daycare. They would have to cross the parking lot and Eureka Avenue to get to a trail to the play area. During the winter, the trail may not always be open for daily use. lithe Council approves the appeal, thereby approving the amendment to the CUP to allow the play area onsite with the daycare, it should be contingent upon installing all safety measures before the play area is open. Councilmember Donnelly felt using Meadowview Park was out of the realm of reality. They meet the criteria, the business will provide a safe environment or they will not stay in business. It is not idea~ but it is workable and meets the requirements. Councilmember Bartholomay agreed using the park is not an option. Councilmember Fogarty agreed with other Councilmembers. Her only concern was the Pizza Hut with traffic and asked staff to make them aware of the plans. Staff stated Pizza Hut is aware of the daycare and are excited about having 6 Council Minutes (Regular) September 6, 201 ] Page 4 it next door. Councilmember May was concerned about a previous daycare being in a strip mall and felt these buildings were not built for that use. We are putting play areas and speed bumps in parking lots. She was not in favor of the plan. It is not meant to be anti-business; it is a safety concern and felt it was not a good use for the space. Mayor Larson attended the Planning Commission meeting and agreed it is not an ideal situation. However, not only in Farmington, but all over the metro there are more daycares being placed in strip malls. They have to keep kids safe or the business will fail. MOTION by Fogarty, second by Donnelly to close the public hearing. APIF, MOTION CARRIED. MOTION by Fogarty, second by Bartholomay to approve the appeal ofthe Zoning Board of Adjustment's decision. Voting for: Larson, Bartholomay, Donnelly, Fogarty. Voting against: May. MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Summary of Recreation Programs - Parks and Recreation Council had requested information on revenues and expenses for recreation programs. Parks and Recreation Director Distad provided information showing revenues and expenses through August 26, 2011. Revenues received amount to $83,235, expenses are $59,662, resulting in revenues exceeding expenses by $23,573. He also provided information showing registration totals from January- August 2011. Some programs were cancelled because enrollment was not enough to cover expenses and some sessions were combined. Staff also collaborates on programs with Rosemount, Lakeville and Apple Valley. Council also received a worksheet showing how fees and enrollment numbers are established. Councilmember May asked if the cost number includes indirect costs. Staffstated it does not include indirect costs such as planning, staff time spent training seasonal staff, ordering equipment or supplies. The fee ordinance specifies for rec programs we are only to cover the direct costs. If Council wants to change that, it would have to be through the fee ordinance. Councilmember May stated when Council is looking at how the department is doing, we need that information. From a Council perspective it is skewed because there are a lot of indirect costs we are not seeing. She would like to know what portion of indirect costs are for the programs. Staff does not keep track of indirect costs other than for adult programs where a 20% surcharge is added to the fee. Councilmember May noted revenues really do not exceed expenses. She noted some programs are very successful and would like to discuss rec programs in a workshop. Sometimes doing fewer things better is better overall rather than so many options. She highlighted four or five key areas. Councilmember May recommended staying with what is working and introduce a couple new programs, as there are a lot 7 Council Minutes (Regular) September 6, 2011 Page 5 more programs that are not working. She wondered about the indirect costs for putting those programs together. Councilmember Bartholomay stated the information provided is a start, but he would also like to see the indirect costs and look at the programs that are doing well. Perhaps we should offer more sessions of those programs. He asked if the Finance Director sees these reports. Parks and Recreation Director Distad noted the Finance Director sees the expenses and revenues. We can allow access to the program software. Staff noted it is a delicate balance to offer the right amount of programs at the right time. Councilmember May recalled staffwas looking at consolidating the City newsletter with the recreation brochure. Staff stated that is for 2012 and results of the RFP's should be received in the next month. That will be brought back to Council. 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution - Approve 2012 Preliminary Tax Levy and Budget - Finance Finance Director Walters and City Engineer Schorzman presented the 2012 preliminary budget. The budget process has involved numerous workshops beginning in May. From October - November there will be additional budget meetings allowing public input. December 5, 2011, Council will approve the fmal budget. The preliminary budget can be reduced, but not increased. Mayor Larson noted there will be informal open houses where residents can ask questions and come and go as they want. Finance Director Walters explained the general fund has been increased by $1.3 million. There was a market value homestead credit reduction of $412,051. This is because the State is changing the way they allocate the MVHC. Instead of asking cities to levy for the MVHC, the State is adjusting the market value ofthe homes in order to give that money back to the residents. There was also an increase in the Fire Relief levy of $48,825. This brings the general levy total to an increase of$998,512. The debt service was not increased as part of a plan to reduce the debt and still do projects in the CIP. The total debt service decreased by $5,946. This brings the total levy increase to $992,566. Finance Director Walters reviewed the list which caused the increase in the levy. - Contractual 1.75% increases in Police salaries - $48,825 increase in the Fire Relief Pension levy - $150,000 to create an equipment replacement fund - $15,000 for trail maintenance - $25,000 for park redevelopment - $350,000 for sealcoating - $400,000 to cover street rehabilitation 8 Council Minutes (Regular) September 6, 2011 Page 6 - $20,000 to plan for computer equipment replacement - $30,000 to plan for Fire equipment replacement - $20,000 to plan for building maintenance - $25,000 to add a part-time position in the Finance Department - No increase to the debt service levy City Engineer Schorzman explained the purpose behind the plan is to plan for the future. The City needs to put plans in place to help with expenditures for items we can anticipate needing to spend money on in the future. The second part of the plan is when this is done, the debt will be reduced. The plan goes out to 2045 in order to eliminate the debt. This year the interest paid on the total debt is over $1.3 million. Finance Director Walters explained the increase to the residents. The State has taken the MVHC and shifted the way it is allocated by reducing the taxable value of homesteaded properties. The median value is $190,200. The taxable value on a homesteaded property would be $160,100 versus the non-homestead property which will be $190,200. The impact on the average home depends on if the property is homesteaded or non-homesteaded. The monthly increase for a homesteaded property will be $7/month. A non-homesteaded property will have an increase of$24/month. Regardless of the increase in the levy, the non- homesteaded properties will still see an increase because of the shift in the MVHC. Approximately $.40 of every dollar goes towards the City. The largest revenue source for the City is property taxes. Almost every department has reduced their budget over the last four years or it has remained consistent. Staff is proposing an increase of $992,566. The impact to the average home will be between $7 - $24/month. These are preliminary numbers. The impact of staff's plan is a potential of millions of dollars in interest savings over time. City Engineer Schorzman stated we will get into the details ofthe plan through open house meetings for residents. It is anticipated to have an open house on the CIP plan in late September. The fire equipment replacement plan is close to being done. We do want public input on the plans. Mayor Larson encouraged everyone to come to the open houses and ask questions of Council and staff. Councilmember Fogarty thanked staff for their work on the budget. There is never a good time to raise taxes, but in economic times like this, you realize where the holes are and a lack ofplanning. Ifthis Council does not start long term planning, the City will be in a lot of trouble in short order. This is short term paying for long term stability which is what Farmington deserves. Councilmember Bartholomay agreed. If cities do not start long term planning, most will be bankrupt by 2016. He also thanked staff for their work on the budget. Mayor Larson felt when City Administrator McKnight meets with the school district, they will fmd several ways to save money and help everyone. Councilmember Donnelly thanked the staff for their work. However, it is too much in this economy to take on this burden. He understood the rationale, but the 9 Council Minutes (Regular) September 6, 2011 Page 7 timing is not good. For a non-homestead property we talking about a 20% tax increase; for a homestead property a 7% tax increase. This plan does not payoff our current debt any faster; it eliminates future debt so we don't have to bond in the future. It does not payoff our current debt any faster, does not reduce our debt payments or interest payments. Staff agreed. With City debt there are only certain times you can pay it down. Councilmember Donnelly stated with this plan we will build up funds and won't have to borrow in the future. We will build up funds, and promise to use them for a certain purpose, but there is no guarantee. The money we accumulate is spent at the will of the Council. The plan is well thought out, but he cannot support it. He would support a less aggressive plan. Councilmember May agreed with Councilmember Donnelly and thanked staff for their work. The plan itself is great, but it is too aggressive and too much all at once. People are one layoff notice away from losing everything. At these times we need to focus on the taxpayer and have compassion for the taxpayer as much as we can. In future workshops, she wants to look at efficiencies and cuts. We cannot present this to the public without efficiencies and cuts. Farmington has one of the highest foreclosure rates and that is not changing. She agreed with planning for street rehabilitation and seal coating, but she cannot support the preliminary budget as she would not support this as an end number. She wanted Council and staff to work together to reduce this number. Councilmember Bartholomay asked if we stayed with where the current budget is, would we have to choose among services we are offering. City Engineer Schorzman stated if you select services you want to provide, that would have to be offset by reductions. Councilmember May asked staff to add a column showing the current status on the detail of revenues by source. Councilmember Donnelly stated we do have extra fiscal disparity money, which is one-time money, but asked if we can apply that to seal coating. Also, the plan is looking for permanent options out to 2045. It is a great plan, but ifwe adopt this plan we are at a new, higher level for government forever. He cannot agree with the numbers. Mayor Larson stated that plan goes out for 30 years and there are no guarantees. Part of the reason we are in this situation is 20-30 years ago there was no long term planning. With this, at least we have a plan and hoped future Council's would stay with it. Out of the $1 million, $750,000 goes to roads for seal coating and rehabilitation. Ifwe don't do this, we bond and pay interest. He asked for staff to provide what this plan will do for businesses in town, including the changes with the State and the increases. He has heard now is a good time to bond because interest rates are so low. He will support the numbers, but our work is not done. He agreed we still have to look for efficiencies. It is very aggressive, but it will reduce our debt in 33 years. No one on Council likes this, but in the worst case this is the number we will go with. He does not believe it is the final number. Council and staffhave a lot of work to do and residents should share their ideas. 10 Council Minutes (Regular) September 6, 2011 Page 8 MOTION by Fogarty, second by Bartholomay to adopt RESOLUTION R47-11 approving the 2012 preliminary budget with a levy increase of $992,566. Councilmember Fogarty stated in elections people run on the amount of debt the City has, taxes, and the foreclosure rate. For almost nine years she has heard now is not the time to raise taxes. The problem is it is never the right time. The City's fmancial future will not improve until someone says we have to make these plans. One of the primary functions of government is infrastructure, fIre, and police. The vast majority ofthe budget is doing good planning for those things. We are not raising taxes to build community centers or extra funds. This is how we can make sure the roads people depend on are there for them. To make sure the infrastructure functions. This is not easy and everyone will work hard to make sure this is not the fmal number. We have to take responsibility so we do not continue to create debt. We cannot continue to borrow to do road projects. We have to plan for the future or our roads will not be there. Councilmember May stated this plan will require us to bond going forward. Voting for: Larson, Bartholomay, Fogarty. Voting against: Donnelly, May. MOTION CARRIED. 13. COUNCIL ROUNDTABLE Councilmember Donnelly: Welcomed David McKnight as City Administrator. Councilmember Fogarty: Welcomed David McKnight. She noted stafIis doing a wonderful job on Facebook. Voting is available online for photos for the City calendar. School started today so she reminded drivers to slow down. She is a member ofthe Board of Water and Soil Resources and shared information on their annual tour and how funds are spent. Councilmember Bartholomay: He welcomed David McKnight and Jay Haugen to their respective positions and looked forward to collaboration between the City and school district. He urged residents to shop local. He reminded Councilmembers they had agreed to a quarterly retreat and asked about planning that within the next month. Councilmember May: Regarding the retreat, with all the workshops there have been, she felt a retreat is not necessary right now. She welcomed David McKnight and Jay Haugen. Mr. McKnight will speak at the Rotary Club meeting on Thursday and Mr. Haugen will speak on September 29. Ramble Jam is October 1, and all proceeds go to community organizations. City Administrator McKnight: A workshop is scheduled for Monday, September 12, to discuss the 2012 Police budget and CDBG funding. He thanked Council and staff for the warm welcome. 11 Council Minutes (Regular) September 6, 2011 Page 9 Human Resources Director Wendlandt: Reminded everyone to Like us on Facebook. There are a number of people placing relevant information on Facebook. Mayor Larson: Encouraged residents to sign up for Nixie, Twitter and Facebook for City information. He welcomed David McKnight and hears everything is going well and everyone is very happy. He thanked City Engineer Schorzman for his work being Interim City Administrator. He went above and beyond what was expected. He spent countless hours explaining things to Council and thanked him for all the hours he put in. The photo contest for the City calendar ends Friday and he encouraged residents to vote on their favorite photos. He encouraged residents to shop local. He spoke with City Administrator McKnight about getting new mics for Council meetings. 14. ADJOURN MOTION by Fogarty, second by Bartholomay to adjourn at 8:29 p.rn. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 12