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HomeMy WebLinkAbout06.02.14 Council Minutes COUNCIL MINUTES REGULAR June 2, 2014 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, Bonar,Donnelly Members Absent: Fogarty Also Present: Joel Jamnik, City Attorney; David McKnight, City Administrator; Robin Hanson, Finance Director;Adam Kienberger, Community Development Director; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Brenda Wendlandt, Human Resources Director; Blair Peterson, Liquor Operations Manager; Cynthia Muller, Executive Assistant Audience: State Representative Patrick Garofalo,Dakota County Commissioner Mike Slavik, Leon Orr 4. APPROVE AGENDA MOTION by Bartholomay, second by Donnelly to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Introduce New Community Development Director—Adam Kienberger City Administrator McKnight introduced the new Community Development Director Adam Kienberger who started on May 30, 2014. He recently worked for the City of Lakeville and the Department of Employment and Economic Development. b) State Representative Patrick Garofalo Thanked Dakota Electric Association for their quick service today with a large power outage in parts of Farmington and Lakeville. They went above and beyond by calling all customers to make sure their power was back on. Regarding the 2014 legislative session, he described the legislative year as expensive. Expensive can be worth it, it can be an unexpected circumstance, or wasteful, unnecessary or extravagant. The state budget has seen record spending increases the last three years which was financed by substantial tax increases. With the growing economy, some tax increases were repealed this year. Approximately$2.5 billion in tax increases were scaled back by$400 million. Some money was used for good things. A 5% cost of living increase was given to 3 Council Minutes(Regular) June 2,2014 Page 2 caregivers. There were record propane prices this year so low income heating assistance was provided to those who needed it. However, spending on a new senate office building was wasteful. We are currently renovating the state capitol. It is a working museum and everyone supports that. Unfortunately, some elected officials decided we needed a new senate office building at a cost of$90 million to house 35—40 senators on a part time basis. In Minnesota, our culture does not like this idea. In 150 years we have never had an increase in state spending this high. With the economy growing and tax increases the bills are being paid for. However, over the last three months revenues have come in below forecast. More revenues are coming in now than a year ago,the problem is there is not enough. Representative Garofalo was very concerned about our short term and long term future. Councilmember Bonar asked if there were any positive items from the last session. Representative Garofalo stated the good news is in the area of education, we expanded early childhood scholarships. They are vouchers given to low income families to choose the pre-school education program that best fits them. Funding and eligibility was expanded for this program. Another positive item was the increase for long term caregivers. We also repealed some of the tax increases from last year such as the sales tax expansion on telecommunications infrastructure. In addition we repealed the warehousing sales tax which was causing a real estate boom in warehousing prices in Wisconsin. A gift tax was in place where if a wealthy individual gives money to family or friends there is a lifetime cap on the amount of giving. At some point there is an added surtax on those gifts. If the families move from Minnesota, they can give it away and not have to pay the tax. This gift tax was repealed. There was also modest estate tax relief. Mayor Larson asked about Sunday liquor sales. Representative Garofalo stated in Minnesota there is a mandate that prohibits liquor stores from being able to sell liquor on Sundays. He felt a compromise is to repeal the state mandate and allow local units of government to make the decision. The effect on Farmington is minimal, but does affect cities on the Wisconsin border. He suggested a temporary compromise would be to let local units of government decide and see how that works. The likelihood of this issue moving forward is slim. Mayor Larson asked with Farmington having a population of 22,000 is there anything we need to keep our eye on that would affect our city? Representative Garofalo stated our federal government is completely off the rails in terms of its fiscal accountability with hundreds of billions of dollars in deficits. You combine that with actions throughout the world and we could be entering an area with economic instability. When that happens,you do not see the events coming. You do not have foresight to see that we will not have the money we are projecting. The feds cut money from the state and the state cuts money from cities and you 4 Council Minutes(Regular) June 2,2014 Page 3 have less tax revenue and people have fewer services. Cities are the last weigh station in those decisions. He encouraged Council and staff to take a very prudent course of action in terms of allocation of funds. Now is a good time to save more than spend. c) Dakota County Commissioner Mike Slavik The county is beginning the budget process. Last year Dakota County was one of eight counties that reduced their tax levy. A positive thing that impacts Dakota County residents is through Representative Garofalo and his colleagues, we were able to pass a Dakota County governance plan change which changes to a county manager system. This was bipartisan and it allows the county to streamline some government systems and improve the accountability of the county citizen advisory boards. An example is the Library Board which is appointed by the county, however,they have full budget authority. So this new plan says the county's elected official will hold the purse strings. There are some ways the county will be saving money for the tax payers. Regarding transportation projects, County Road 64 will be the big project in the next two years. The first open house was held earlier this spring. Currently,the project is in design. In the fall of 2014 the county will be doing right-of-way acquisition. There will be a second open house showing the final design as well as phasing. This is a large project with complicated intersections and ways to get out of certain developments. As a result, the project will not be done all at one time. This project will begin in 2015 and will take longer than the summer, so it will impact the school year. He and City Administrator McKnight attended the April school board meeting to give an update on the project and to discuss right- of-way acquisitions and appropriate ways to best serve the community. Commissioner Slavik provided an update on the remodeling of the Dakota County Farmington Library. By mid to late June the interior will be done. This week the material handling system is being installed. This is an automated system that checks in returned books. Library staff will be able to move in mid-July with a soft opening. The exterior will take longer. Once the entire project is complete there will be a grand re-opening. d) Liquor Store Update/Last Hope Presentation The last wine club tasting for the first half of the year was held with 52 people attending, $1,000 in sales and they sold four new memberships. Tastings will start again in September. Memorial Day weekend the stores were open Thursday through Saturday. Total net sales for both stores were ahead of 2013 by$15,675. Year-to-date numbers for net sales at the downtown store are up $64,769,the Pilot Knob store is up $58,319 for a total of over$123,000 above sales for the same time in 2013. Customer counts were up over 2,000 at the downtown store and almost 2,000 at the Pilot Knob store. The average ticket is up over$.40 at each location. 5 Council Minutes(Regular) June 2,2014 Page 4 Liquor Operations Manager Peterson stated in April the liquor stores had a supply and fund drive for Last Hope. The stores raised$1,154 plus many pet supplies were donated which he presented to Mr. Leon On. Mr. On stated his wife organized the organization in 1985 to serve as an animal rescue organization for Farmington, Lakeville and Rosemount. The first year the total expenses were $845. Now the primary area of service is all of Dakota County and reaches into western Wisconsin and the entire metro area. As a comparison,monthly veterinarian expenses are now over$20,000. Mr. On serves as treasurer on a board of six members. In 2013,the organization found homes for 1,600 cats and dogs in Dakota County. It has been an all-volunteer organization. A part time administrator has now been hired and office space leased in the former senior center building. The primary purpose of doing this was to keep it focused in Farmington. For 29 years Last Hope has had the same mailing address and phone number which provides stability. Fundraising efforts like this bring public attention to the organization and its efforts. Mayor Larson thanked Liquor Operations Manager Peterson and his staff for their efforts in turning things around so they can do things like this. 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bartholomay, second by Bonar to approve the Consent Agenda as follows: a) Approved Council Minutes(5/19/14 Regular) b) Approved School and Conference—Parks and Recreation c) Adopted RESOLUTION R37-14 Accepting Donations Rambling River Center— Parks and Recreation d) Approved Bills APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) 2014 Strategic Plan Update-Administration The City Council and staff met in March 2014 to start the 2014 City Council Strategic Plan. City Administrator McKnight presented an update on this process and asked for Council's input and direction. The city contracted with Mr. Dave Unmacht of Springsted Inc.to facilitate the planning process. The City Council and staff met for a day long retreat to discuss a wide variety of projects. The City Council and City Administrator McKnight also discussed goals Council would like to see in the strategic plan. Several benefits to the city's strategic planning efforts include: 1. Provide a written road map with clear accountabilities and documentation. 6 Council Minutes(Regular) June 2,2014 Page 5 2. Enhance Council's ability to focus on the most important policy and program areas. 3. Communicate with residents, businesses and stakeholders what is important to you. 4. Unite employees around common goals and priorities. 5. Strengthen your organizational effectiveness. They discussed a series of changes that have taken place in Farmington over the last three to four years which are indicative of a positive momentum happening in the community. Noted changes were: 1. Positive changes in city personnel; improved city attitude and culture. 2. Recessionary belt tightening produced a lean government. 3. Continued strengthening of the relationship with the Farmington Area School District at all levels. 4. Enhanced image in the community. 5. Transparent and honest financial discussions. 6. Improved collaboration with other public agencies. 7. Financial and multi-year planning. The discussion produced major priorities of the City Council as follows: 1. Organizational Development 2. Application of Technology 3. Economic Development 4. Operations and Finances 5. Communication and Engagement 6. Enterprise Operations Each priority has specific goals. Organizational development is defined as the review of operational structure of the organization to maximize results and ensure our structure meets both the current and future needs of the community. The goals for organizational development include: 1. Conduct operational analysis of maintenance functions between Municipal Services and Parks/Recreation. 2. The Fire Department goal needs work and will be determined. 3. Prepare a long term strategic plan in Parks/Recreation that is reflective of Farmington, our budget and City Council expectations. 4. Continue relationship building and partnerships with our primary local government partners including Dakota County, Empire, Castle Rock and Eureka Townships and the Farmington Area School District. 5. Continually review issues that impact the organization,the employees and the community. Each goal also has action steps. An example under organizational development is we want to look at how we provide service delivery of maintenance issues currently provided by Municipal Services and Parks/Recreation. City 7 Council Minutes(Regular) June 2,2014 Page 6 Administrator McKnight would like staff to look at snow removal and let him, Council and the community know why and how we do snow removal. We also want to look at work schedules for efficiency and productivity. The second priority is application of technology, which is to use technology to improve all areas of operation. The goals include: 1. Leverage and maintain and/or upgrade current technology. 2. Research and implement new technology that improves processes and increases efficiencies both internally and externally. 3. Develop a technology strategic plan that includes equipment,personnel and funding. Priority three is economic development. The goals include: 1. Successfully integrate the new Community Development Director into the organization and community. 2. Assist in the further success of the Vermillion River Crossings development. 3. Explore land site options for future industrial development. 4. Work with all of our partners to improve the business climate and culture in our community. Priority four is operations and finances which is a continuation of the work we have been doing over the last four or five years to improve the financial health of the city. Goals include: 1. Develop a comprehensive and professional financial management plan bringing together all of the work performed in recent years and summarizing goals for future plans. 2. Continue to work to get all funds to a positive status year round. We are down to two funds; the general fund and the debt service fund. 3. Develop a strategy to improve the city's bond rating. We are currently a AA-. It would be a significant step to get to AA status. 4. Develop an annual budget and budget process that is collaborative and easily understandable to the public. Priority five is communication and engagement. The purpose is to continue to use a wide variety of tools to communicate with our residents and improve our efforts to share the status of our work. Goals include: 1. Update the city's website in 2015. We use the website for many things to help communicate with our residents and it is time to put a new face on it and make it easier for residents to access information. 2. Improve the city's use of traditional/social media tools to communicate with residents. 3. Update and improve the quality of Farmington's presence on channel 16. 4. Improve the image of Farmington in many different ways. 8 Council Minutes(Regular) June 2,2014 Page 7 The sixth priority is enterprise operations to ensure success and develop solid fmancial plans that ensure the long term sustainability of our enterprise operations. Goals include: 1. Continue implementation of the liquor division financial plan. 2. Continue to improve annual financial health of the Schmitz-Maki Arena and set aside funding for future facility improvements. We have had two years of a small profit. 3. Review options to continue to reduce the reliance on tax levy dollars at the pool and Rambling River Center while maintaining the services we provide. City Administrator McKnight stated this plan is a draft and asked for Council input. This will be brought back to a future meeting for formal approval. Mayor Larson felt the plan reflects the discussion from that meeting. Councilmember Donnelly stated the endeavor was worthwhile and it will help focus the city as Council changes. Everything discussed is captured in the plan. Councilmember Bartholomay stated the plan is a working plan. It reflects what we spent the day discussing. The facilitator lead the discussion, but City Administrator McKnight put a lot of work into putting this together. Councilmember Bonar was encouraged by this next step. The six priorities are an appropriate representation of what we discussed. He will look forward to seeing how city administration and staff accepts the short term responsibilities in the implementation phase. He saw a few gaps and looked forward to seeing them filled in and hearing more from department heads as to how they will take this strategic plan and make it a living document for their departments and the people they serve. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Donnelly: It was nice to hear from State Representative Garofalo and Dakota County Commissioner Slavik. Councilmember Bartholomay: He also thanked the representatives for attending and hoped it would be a yearly occurrence. He appreciated the liquor store update. He welcomed Community Development Director Kienberger and thanked City Administrator McKnight for his work on the strategic plan. 9 Council Minutes(Regular) June 2,2014 Page 8 City Administrator McKnight: The June 16, 2014, Council meeting will not be televised because we are upgrading the broadcasting equipment. It may extend to the July 7, 2014,meeting but the public will be advised. City Engineer Schorzman: Seal coating will begin tomorrow. He encouraged residents to check the map on the website. The wear course will be laid on the east frontage road along highway 3 from the sanitary sewer project. Community Development Director Kienberger: Thanked everyone for the warm welcome. Parks and Recreation Director Distad: The pool will open on Friday, June 6,2014. There will be a joint meeting between the City Council and Parks and Recreation Commission on June 11, 2014, at 6:30 p.m. for a presentation on the aquatic feasibility report. Human Resources Director Wendlandt: Regarding the Ipad issue,Novus Agenda is working to set up the Council agenda. The basic structure is moving along. Once that is working, Council will be able to see everything on their Ipads through a link to the Novus Agenda Council website. Mayor Larson: Welcomed Community Development Director Kienberger. Dew Days is coming up soon. All activities are on their website. He reminded everyone to shop local. 14. ADJOURN MOTION by Bartholomay, second by Bonar to adjourn at 7:51 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 10