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HomeMy WebLinkAbout06.04.12 Council Minutes COUNCIL MINUTES REGULAR June 4, 2012 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. 3. ROLL CALL Members Present: Larson,Bartholomay,Donnelly, Fogarty,May Members Absent: None Also Present: Joel Jamnik, City Attorney;David McKnight, City Administrator; Teresa Walters,Finance Director;Randy Distad, Parks and Recreation Director;Kevin Schorzman, City Engineer; Cynthia Muller, Executive Assistant Audience: Ed Endres, Phylicia Schindler,Leon On 4. APPROVE AGENDA Councilmember Bartholomay pulled item 7b)Agreement with Cannon Valley Printing for Mailing Services for discussion. MOTION by Fogarty, second by Bartholomay to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Fogarty, second by Donnelly to approve the Consent Agenda as follows: a) Approved Council Minutes (5/21/12 Regular)(5/29/12 Workshop) b) Approve Agreement with Cannon Valley Printing for Mailing Services—Human Resources c) Approved Outdoor Warning Siren Joint Powers Agreement-Police d) Approved Joint Powers Agreement with Dakota County for Maintenance of GIS Database-Engineering e) Approved Appointment Recommendation—Fire Department f) Acknowledged Resignation Police Department—Human Resources g) Acknowledged Resignation Liquor Operations—Human Resources h) Approved Appointment Recommendation Liquor Operations—Human Resources i) Set June 18, 2012 Public Hearing EDA Composition-Administration j) Approved Bills APIF,MOTION CARRIED. 5 Council Minutes(Regular) June 4,2012 Page 2 b) Approve Agreement with Cannon Valley Printing for Mailing Services— Human Resources Councilmember Bartholomay asked staff to research putting a weekly'/2 page article on news items in the newspaper. Lakeville does this rather than doing a newsletter. City Administrator McKnight will research this item. 8. PUBLIC HEARINGS a) Approve On-Sale Liquor License Pizza Man -Administration Mr. Ed Endres has submitted an application and fees for an On-Sale Liquor and Sunday Liquor License for Pizza Man, at 409 3rd Street. MOTION by Fogarty, second by Bartholomay to close the public hearing. APIF,MOTION CARRIED. MOTION by Fogarty, second by Bartholomay to approve an On- Sale Liquor and Sunday Liquor License for Pizza Man at 409 3rd Street. APIF, MOTION CARRIED. Mr.Endres noted they have expanded their building to allow for indoor seating and added an outdoor patio area. They are also expanding their menu. b) Approve Therapeutic Massage License Michael Ellis-Administration Mr. Michael Ellis has applied for a therapeutic massage license to practice at HealthPro Chiropractic, 19685 Pilot Knob Road. MOTION by Fogarty, second by Bartholomay to close the public hearing. APIF,MOTION CARRIED. MOTION by Fogarty, second by May to approve a Therapeutic Massage License for Michael Ellis at HealthPro Chiropractic, 19685 Pilot Knob Road. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) 2011 Audit Report Mr. Jason Miller, of Smith, Schaffer, &Associates,presented the 2011 Financial Report. The majority of revenues come from property taxes. Governmental expenditures were broken down by department. Overall, excluding capital projects and debt service expenditures, general government department expenditures make up 19%of expenditures. He explained expenditures for each department. Public Safety makes up 50%of total expenditures. In order to increase the fund balance,the City would have to cut expenditures and increase revenues. Taxes are received twice a year so there will be cash flow issues. A City should have reserves for any unexpected emergencies. The City has healthy balances in all enterprise funds. Councilmember May noted most of the information will be carried over to the budget discussions. Regarding allocation of expenses she asked how an auditor reviews that. Mr. Miller stated they test a sample of items and trace them to the documents to see if the category makes sense. They also compare one year to the next. They also talk with management to learn how the City works. Councilmember May asked as far as allocating salaries to different departments, is there a log kept for tracking. Mr. Miller replied people are set up in their department when hired and that is where their salary is allocated. If they work 6 Council Minutes(Regular) June 4,2012 Page 3 across departments,there would have to be some allocation and the City would track the time. Finance Director Walters stated employees do code their time according to the area they are working. It is being allocated correctly, but it is up to the department heads to make sure time is being allocated correctly. We also allocate the budget that way. 11. UNFINISHED BUSINESS a) Approve Agreement Veterans Memorial—Parks and Recreation At the June 4, 2012, Council meeting,Mr. Leon Orr gave an update on the Veteran's Memorial. There was also a discussion regarding the City donating $10,000 towards phase 2 construction and$1,000 to cover insurance costs through CEEF for volunteer workers. CEEF is still working on setting up a meeting to discuss the insurance. Therefore,approval of the agreement is contingent on insurance to cover construction. Staff will work with CEEF on insurance. Councilmember May stated she is in favor of the memorial, but where the agreement talks about the City's responsibilities,we don't have any dollar amounts associated with the items. She thought Council felt we would donate the land and wait until construction was complete to see if additional dollars were needed. You don't know where the insurance is coming from, so approval of this agreement is premature. We should be aware of those things before we donate money. We have a contingency fund and she doesn't like them because it gives us the sense we have extra money around and we don't. We just heard an audit that says our general fund reserve is very stagnant. So we don't have this money. She wants to continue to work with the Veteran's Memorial Committee. The City is going to have a lot of responsibility once this is complete and there will be costs associated with that. She wanted to wait to see what those costs will be before we donate money we don't have. Mr. On stated he was not expecting the City to give them a check for$10,000. They will spend the resources they have and when they need a donation,they will come forward with the request. Councilmember May felt their campaign is going very well and there will be costs for the City when it is done. Mr. On stated they were looking for a commitment before construction starts, so if a donation is needed,they know it will be there. On the other hand, if the fundraising continues and we raise enough without the City's participation,that would be wonderful. Councilmember May noted they have funding for the first phase so everyone is confident it won't be half built. Mr. On confirmed this and the construction relies on everything falling into place. The construction involves some volunteers. The donation request is a cushion for it to be there;not for the City to write a check. Councilmember May stated the City will always be here to help when needed,but she was not comfortable putting a number on it. We don't know what the costs are when it is done. There are a list of things that will be the City's responsibility such as landscaping,the trail, and new electric service. Mr. On stated those are expenses that come afterwards. The City currently maintains the park now. The Committee's responsibility lies within the perimeter of the memorial. Councilmember May asked once you dedicate it to the City,will we be responsible if anything breaks or there is damage. Mr. On stated the agreement 7 Council Minutes(Regular) June 4,2012 Page 4 states that would be the committee's responsibility and the City covers insurance for vandalism. Councilmember May asked if the cost of our insurance will increase for adding this type of structure to it? These are the things we have not completely vetted out. She likes to see numbers associated with agreements and we should know what they are. Mr. Orr looks at this as an extremely important amenity that this group wants to add to a public park for the public's benefit and generally pay for it through their own fundraising and agree to maintain it for years to come. That is something you do not get with any other major improvement in a park such as playground equipment. You don't ask parents to come in and maintain that, or tennis courts,or shelters. We are stepping out of that and saying we will install it, maintain it, and dedicate it to the City. Councilmember May stated with playground equipment we look at the costs and that is part of the discussion when we add those amenities. She made it clear that just because she is asking the questions, doesn't mean she does not support the project. We are all in full support of the project. Mr. Orr noted there are a number of other cities who paid for the entire project. They are giving it a boost by doing the design, fundraising, installation, and agree to maintain it. Councilmember May stated it is appreciated, but she was speaking on behalf of the taxpayers. Mr. On stated the committee is asking for some cooperation and help. Councilmember May stated from her perspective,we don't have$10,000. Councilmember Donnelly stated it will be a great amenity for the community and the Veteran's Committee is providing the bulk of the funding. The City will contribute in a much smaller way than our neighbors have in their Veteran's Memorials. He applauded the committee's efforts and understood we don't have a dollar amount attached to every item, but it is not$2 million. We are doing the park maintenance already. The City will get more benefit from this than it will cost the taxpayers. He understood Councilmember May's point,but he would not want to hold this up. Mr. On stated when the time comes to request a donation and the City doesn't have it,we are not going to take you to court. We are just establishing this ahead of time. Councilmember May stated we have cash,but our audit says our fund reserve is 24%and it should be 50%. Mayor Larson stated this project is long overdue, and did not think they will be coming back to the City for more money. The fundraising is leaps and bounds over what he expected. The committee is doing a great job. The City will get the benefit of having this project in the park. He understood the concerns with expenses,but it is not$2 million and staff maintains the property anyway. MOTION by Fogarty, second by Bartholomay to approve the agreement with the Veteran's Memorial Committee. Voting for: Larson, Bartholomay, Donnelly, Fogarty. Voting against: May. MOTION CARRIED. 12. NEWBUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Dew Days starts next week. The School Board has challenged the City in the bed races. 8 Council Minutes(Regular) June 4,2012 Page 5 Councilmember Bartholomay: He noted the issue on putting in the sidewalk in Vermillion River Crossing is still out there. He wanted to bring it back to the next meeting for a vote. Mayor Larson recalled it was coming back after hearing from the Vermillion River Crossing representatives. City Administrator McKnight stated they will be at the June 25,2012,EDA meeting. Depending on that outcome,the sidewalk issue will be brought back to the July 2, 2012, Council meeting. Councilmember May will not be able to attend the June EDA meeting. Councilmember Bartholomay wanted the sidewalk issue brought back soon. If we have upcoming projects with them,he did not want to irritate them by delaying it month after month and having seniors walk in the road. Mayor Larson stated the money is in an escrow account. Councilmember Bartholomay added and they will not increase that so he did not see why we are holding up the sidewalk project. On June 11,2012,there will be a community ceremony to recognize high school graduates that will be serving in the armed forces. Councilmember May: Congratulations to Councilmember Fogarty on a Judicial Committee appointment. This Friday is high school graduation. The golf team is sending one member to state,her son Thomas. Councilmember Donnelly added the girls softball team is also in the state tournament. City Engineer Schorzman: An updated schedule has been received for seal coating and they will be in town June 13— 15,2012. The seal coating will not have any impact on Dew Days. He requested residents not park on the streets in the areas designated for seal coating. The City's CSO has resigned and he has been doing water enforcement activities. The Water Board has asked staff to hire a temporary part-time person for the summer for enforcement of watering restrictions. The parking lot construction in Lake Julia Park has started. Mayor Larson: The Farmers' Market will be held every Thursday starting June 14 through September 13, from 3:00—7:00 p.m. There are 19 vendors and special events. He encouraged residents to support local businesses. 14. ADJOURN MOTION by Fogarty, second by Bartholomay to adjourn at 7:54 p.m.. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 9