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HomeMy WebLinkAbout06.11.18 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION JUNE 11, 2018 Mayor Larson called the work session to order at 6:00 p.m. Roll Call Present-Larson, Bartholomay (6:13 p.m.), Bernhjelm and Craig Absent-Donnelly Also Present-Administrator McKnight, Community Development Director Kienberger, Parks and Recreation Director Distad, Fire Chief Elvestad, Finance Director Malecha, Human Resources Director Wendlandt. Municipal Services Coordinator Larson and Public Works Director Gehler. Agenda Motion by Bernhjelm, second by Craig, to approve the agenda. APIF, motion carried. Solid Waste Operational Changes Public Works Director Gehler provided an update on operational changes that will need to occur as a result of continued regulatory changes in the solid waste industry. Solid waste tipping fees have been increasing and late in 2017 the managing board of the Ramsey/Washington County processing facility increased tipping fees from $70 to $94 per ton. They will also not be accepting waste from haulers outside of those two counties starting in 2019. For 2018 the solid waste fund was in a position to absorb the tipping fee increase. The use of fund balance dollars for 2019 is not sustainable. Most of the services in the solid waste fund are required to provide the service. One area identified that is not required is the annual curbside cleanup day. Each year we allocate approximately$200,000 for the event. Continued regulatory requirements to process waste, instead of straight landfilling, have continued to either erode the service or increase the costs related to the event. For 2019 any carpet picked up will have to be recycled which is the similar issue to what drove the discontinuation of mattresses in 2018 and other materials in the past. Furniture will likely be in the next few years as well. Given the continued changes, staff has researched options used by other communities. Staff is recommending the following clean-up day transition: 2018 ✓ Annual clean-up day was held. June 11, 2018 Work Session Minutes - 1 - ✓ Add a mattress to drop-off to the Household Hazardous Waste Day in September for a fee of$15 per mattress or box spring. The actual cost of mattress processing is estimated at$30 so the city would support half of the cost. 2019 ✓ Hold the annual clean-up day and discontinue collection of carpet. ✓ At the Household Hazardous Waste Day, arrange for mattress drop-off and carpet drop- off provided there is room and a vendor available. 2020 ✓ The city will be renegotiating our contract with our recycling hauler. Change to the option of a scheduled pick-up service to this contract and negotiate reduced rates per item. The city council could explore reallocating clean-up day costs to buying down the rates. Councilmember Craig asked what people will do with the waste we will no longer collect. Gehler stated that more and more is recycled as opposed to going into the landfill. Councilmember Bernhjelm stated she supports the proposal, but not the subsidy for mattress collection. She also supports the percentage increase approach in scenario one to solid waste fees. Councilmember Craig stated that she supports the changes as proposed, minus the mattress subsidy. We should also start to communicate these upcoming changes to residents soon. Mayor Larson asked how we will determine a charge for carpet collection. Gehler stated that this issue will need to be determined in the near future. Bernhjelm asked if the contract renegotiations after 2019 would include potential recycling every week. Municipal Services Coordinator Larson stated that is the intent. The consensus of the city council was support of the plan as proposed, no mattress subsidy, staff will bring back solid waste rates with a phased in plan with regular increases for inflation. Solid Waste Service Exception Policy Public Works Director Gehler reviewed state statute requirements for solid waste collection and exemptions. City code, section 7-1-2, does allow exemptions from solid waste collection if a home or business ensures that an environmentally sound alternative is used. In the mid- 2000's there was discussion surrounding the excessive use of exemptions and the city updated both the ordinance language and internal processes to address the issue. Section 7-1-2 (a) allows the city to exempt service "fore extenuating or unusual circumstances." While this language is meant to allow staff flexibility in evaluating special circumstances on a June 11, 2018 Work Session Minutes -2- case-by-case basis, it has allowed room for personal interpretation as well. In practice, staff has developed and used a permitting process to collect information related to the individual circumstances and has general criteria that are used to determine appropriate reasons for discontinuation of service: 1. Snow birds are allowed to apply for a temporary six-month discontinuation of service. A $30 fee applies to pick up and redeliver the container. 2. Other vacancy circumstances are allowed using a temporary six-month discontinuation of service similar to snow birds. Circumstances where this has been allowed are vacancies due to extended home sale (foreclosures), owner death, property fire, structure demo, etc. This has been the approach taken by city staff. Staff is looking to see if the city council continues to support this approach. The city council was in support of staff's approach to this issue. City staff will develop a policy for city council consideration and place it on an upcoming city council agenda. Lighting and Cleaning City Entrance Signs Parks and Recreation Director Distad reminded the city council one of their special project goals for this year was to light and clean the five city entrance signs. To date, all five entrance signs and similar signs at the police department and fire station #2 have been cleaned. Bids to light the entrance sign on Pilot Knob Road have been obtained. The quote to use solar energy is $5,170 and the quote for regular LED lighting is $4,785. Distad reviewed the pros and cons of each approach. Mayor Larson was willing to try this with one sign to start out with. Councilmember Craig thought it was a good idea but wants to see how this impacts the 2019 budget. Councilmember Bernhjelm asked about the estimated monthly cost for lighting the sign. Administrator McKnight stated that the monthly electrical cost for the EDA owned downtown sign is between $18-$20 per month. Bernhjelm would like to see the sign lighting installed before more homes are built on the city border. McKnight stated that if the city council wants to move forward with this project the funds would come from liquor store profits. June 11, 2018 Work Session Minutes -3- Councilmember Bartholomay supports the project and the use of liquor store profits. The city council directed staff to move the lighting project forward for the Pilot Knob entrance sign. Draft 2019 Budget Review Administrator McKnight presented the draft 2019/2020 budget for city council review. McKnight reviewed a variety of city and financial related topics including: 1. Financial health of the community 2. Specific issues of importance in the 2019 budget 3. 2030 financial plan 4. 2019 draft budgets 5. 2019 transfer budget The 2019 draft budget includes $3,198,401 in non-property tax revenue, which is 1.11% higher than 2018. The total expenses are at $13,059,807, up 3.39%from 2018. The total debt levy is at $3,452,460 which is 2.65% higher than 2018. The draft tax levy is 3.95% higher than 2018 and includes the spending of$240,000 in general fund balance dollars. McKnight reviewed the individual budgets and highlighted significant changes between 2018 and 2019. The city council would like additional discussions at a future work session on the following: 1. Increased cost with Dakota County for the emergency response plan in the Emergency Management budget. 2. Discussions on individual new position requests. Councilmembers asked a number of questions on the departmental budgets and the transfers budget. Mayor Larson would like to see the tax levy reduced another one percent. He also inquired about EDA funding in the Transfers budget. Councilmember Bernhjelm asked about the use of fund balance and our position at the end of 2017. McKnight explained how the city stood in terms of General Fund balance at the end of 2017 and the proposed use of these dollars on the 2019 levy reduction, the USDA build out costs in city hall and keeping the fund balance at 40% at the end of 2018. Bernhjelm stated she would like the levy reduced another one percent and recommended looking at some of the new positions for the reductions. June 11, 2018 Work Session Minutes -4- Councilmember Craig agreed with the levy reduction and looking at the new positions. Councilmember Bartholomay would like to see the levy reduced at least one percent. He also asked a number of questions on funding priorities in the Transfers budget. City Administrator Update McKnight presented updates on the following items: 1. FHS Settlement Agreement discussion 2. Shared a request from a resident to spray for insects at an upcoming community event 3. Shared that the Rebel Chef is on the verge of opening 4. Updated the city council on upcoming city council events and city activities Adjourn Motion by Bernhjelm, second by Bartholomay,to adjourn the meeting at 7:50 p.m. APIF, motion carried. Respectfully Submitted 1344el1 I&iCasflit David McKnight, City Administrator June 11, 2018 Work Session Minutes -5-