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HomeMy WebLinkAbout03.11.13 Work Session Minutes Council Workshop Minutes March 11,2013 Mayor Larson called the workshop to order at 6:30 p.m. Present: Larson, Bartholomay, Bonar, Fogarty Absent: Donnelly Also Present: David McKnight, City Administrator;Robin Hanson, Finance Director;Randy Distad, Parks and Recreation Director;Kevin Schorzman, City Engineer;Cynthia Muller,Executive Assistant MOTION by Bartholomay, second by Bonar to approve the agenda. APIF,MOTION CARRIED. 2010 Ice Arena Bonds There is$111,744.65 remaining from the 2010 arena project. The money needs to be spent on qualifying projects. Parks and Recreation Director Distad presented seven projects totaling $165,525.11 for the arena. Council reached a consensus to do the following projects: -Replace heating system for bleacher area -Replace locker room 5 and 6 furnace -Removing existing dehumidification system and purchase and install new dessicant dehumidification system These three items are$500 over the amount. Staff will bring each of these items back with an agreement for approval. The carbon monoxide air quality electronic monitoring device could be included in the 2014 budget. A discussion was held regarding summer ice. Staff noted it would be beneficial to have summer ice late in the summer so it would not have to be removed before winter. Council agreed that we should determine when summer ice will be available so groups can schedule accordingly. Councilmember Bartholomay clarified Ice for Tigers was considering installing a dehumidification system in the second sheet of ice. This item is still needed for the current arena. Councilmember Fogarty would prioritize replacing the east and west entry metal awnings over the carbon monoxide device, as we have the means now to check for carbon monoxide. Goal Setting City Administrator McKnight summarized previous discussions into ten groups. The most important is financial and the second is capital equipment. 14 Council Workshop Minutes March 11,2013 Page 2 Council needed to determine if they will be willing to increase the levy next year. If so,then goal setting discussions would continue. A$125,000 increase on the City levy for 2014 would have an impact of$6.50 up to$25.00 on nine sample homestead, residential properties. Commercial values for 2014 will be available in a couple months. Council agreed they will need to increase the levy for 2014. City Engineer Schorzman reviewed examples of bonding for some road CIP expenditures and levy for the rest and also an option of bonding for all road CIP expenditures. The projected costs do not include assessments because we don't know what our ability will be to assess in the future and there is a shift to get away from assessments. Economic Development—In 2009 the next area for industrial development was north of hwy 50 and west of Pilot Knob Road. The planning, visioning,zoning for Vermillion River Crossings was discussed. Any and all proposals should be considered. It was determined that City Administrator McKnight should meet with Dale Severson, broker for VRC to discuss whether the current plans are still what is needed for that area, and that we are open to any proposals. Regarding industrial development,Mayor Larson asked that staff talk to the property owners to determine if they are willing to sell when the time comes. If not,then there is nothing we can do. Council suggested starting development at Fairgreen Avenue. Water runs along hwy 50, and sewer lines come off Pilot Knob Road. We could run the sewer trunk line along the ditch and go north. Councilmember Bonar suggested running short stubs at 208th Street and Pilot Knob and Fairgreen;begin with the basics. City Engineer Schorzman suggested talking to the land owners south of hwy 50, where Pilot Knob would extend south. Staff would also look at the comp plan for that area. Mayor Larson's main goal was to fill up VRC. City Administrator McKnight stated the EDA will receive$50,000 when taxes are received to either let build up over time or to fund business incentive programs. City Facilities—Staff will continue to work with the County on the Library using City Hall space during their renovations. Council would like to see more income and more users for the Rambling River Center. It was suggested to include a teen center and make it feel more like a community center. We are almost cost prohibitive for having banquets there because of the high rental cost. It was also suggested to make it more multi-generational and broaden the base of the Rambling River Center. We could explore branding opportunities with local businesses so it could be used for social functions, and also Sunday use for churches. We need to determine how much we can use the building;can it be used 12 hours/day, six days a week. The rooms that could be open would be the library, banquet room, and meeting rooms. It was noted that there are meetings held there in the evenings. Pool—This will be brought to the Parks and Recreation Commission for discussion. Liquor Stores—Staff is proposing two goals for 2013: -That the gross profits as a percentage of sales is 25%. -That net profits as a percentage of sales is 6.5%. 15 Council Workshop Minutes March 11,2013 Page 3 In 2012 we had a gross profit of$1.1 million or 25.1%. The net profit for 2012 was$281,542 or 6.4%. Without the$90,000 in transfers we had$190,000 in bottom line profit for 2012. In 2012 we transferred$70,007 to the City for operations. In 2013 we changed the transfer amount to $50,000. The second transfer was a$20,000 transfer to the pool. In 2012 there was a$90,000 transfer; in 2013 there is a$50,000 transfer for City operations and a potential$20,000 transfer to somewhere that may need assistance. There will be four pots of money set up in the liquor fund. Councilmember Fogarty felt that pot four—community transfers should go to park and rec. Pot three is for future capital needs and Council agreed it is necessary to build up the fund. The current leases are for 4.5 years and 4 years. Staff has received a recommendation to build rather than lease and to not have more than 50%debt. City Council/Communication—Council decided we could do our own performance measures rather than use the Office of the State Auditor. The next step is to set the goals, measurements, and report to the public. Council needs to set the goals. Staff's goals will support Council's goals. One place staff will enhance is the fmancial part. Council would like to see the financial impacts of the goals to get a better idea of how to set up the CIP. Council would like to see the CIP funded and lay out a plan for future Councils. The plan would change throughout the years, but it would be funded. Any direction with goals will also help with how money is invested. There is a cost to not deciding,because money has to be invested short term so it is available when needed. City Administrator McKnight will bring back the groups with goals proposed and a timeline along with rough estimates for the 2014 levy. MOTION by Fogarty, second by Bartholomay to adjourn at 8:09 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 16