HomeMy WebLinkAbout02.22.16 Work Session Minutes City Council Workshop Minutes
February 22,2016
Mayor Larson called the workshop to order at 6:35 p.m.
Present: Larson,Bartholomay, Bonar,Donnelly, Pitcher
Also Present: David McKnight, City Administrator;Robin Hanson, Finance Director; Kevin
Schorzman, City Engineer; Todd Reiten,Municipal Services Director; Cynthia Muller,
Executive Assistant
MOTION by Donnelly, second by Bonar to approve the agenda. APIF,MOTION CARRIED.
Municipal Services Position
This item was discussed at the February 8, 2016, Council workshop. Staff presented a list of
duties that are not being done because of a shortage of staff. Staff was asking for direction on
hiring someone for this position. The general fund would cover 10%of this position which
amounts to$5,000-$6,000. The rest of the position is covered through sewer,water, storm
water and solid waste funds and would be absorbed in the current budget. There was an
additional employee in the plan and when the position was not filled,the rate charged to
customers was not reduced. Residents have been told they are on the list for requested repairs.
There is a continual backlog of duties not getting done. The majority of Council was in favor of
filling the position. There was a concern with adding a position and not knowing what the
impact is in the future. Whether it is coming from an enterprise fund or levy dollars they are still
taxpayer dollars. Whether they are a fee or a tax the money is coming from the taxpayers. Staff
explained the fees for the enterprise funds are set on a rotating basis. So if we are down two
positions we do not lower the fees. The rates are rotating so we only have one fee increase. The
rate had to pick up the tipping fee that increased recently. Staff will move forward with filling
this position.
Liquor Stores Update
The lease at the Pilot Knob store expires December 31,2016,and downtown on July 31, 2017.
Staff recommends extending the current lease at the Pilot Knob store for three years. We
currently pay$16 per square foot and it would go up based on the consumer price index each of
the three years. We also pay CAM expenses at that location and those rates have not increased.
Pilot Knob is still our most profitable store.
The options for the downtown store are to continue at the current site, move the store into city
hall, or as part of the downtown redevelopment plan buy the Dakota Motors building for the
liquor store, but it is too large and would take a lot of renovating inside and outside. The sale
price is$800,000 to $900,000 and we do not have that money on hand. Another option is to
build on highway three and Elm Street,next to the hardware store. They would build the
building,the city would lease it for five years with an option for another five years. At the
current location we pay$15.50 per square foot and they would lower it to$15 the first year and
Council Workshop Minutes
February 22,2016
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then it would increase in subsequent years. The building would be 6200 square feet. The house
on the corner would remain. The lease expires in 16 months, so construction of the building
would need to start soon. The traffic count along highway 3 is better than the current location.
We could move the coolers, shelving, etc.to the new location.
To move the liquor store into city hall would require demolition and disassembly of the council
chambers and would cost$135,000. Building a new liquor store downstairs would cost
$585,000. Building a new council chambers on the second floor would cost$1,020,000. The
largest cost is moving the televising equipment. Some councilmembers were concerned with
having a liquor store in city hall. The options for renting city hall space are limited to
governmental entities.
Another option is to buy a lot in VRC. We would have enough to buy land without borrowing,
but it would empty the pot.
Staff will put together internal costs for a building next to the hardware store.
Met Council Governance Discussion
Dakota County has grown increasingly concerned about the lack of accountability from the Met
Council. The structure doesn't make them accountable to the constituency. The county sent a
letter asking cities to adopt a resolution in support of calling for reform of the Met Council.
Council agreed with the request and a resolution will be brought to the March 7,2016, Council
meeting.
City Administrator Update
Council agreed to hold a goal-setting session the morning of April 15,2016,at 8:30 a.m.
MOTION by Bartholomay, second by Pitcher to adjourn at 7:45 p.m. APIF,MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant