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HomeMy WebLinkAbout07.09.18 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION JULY 9, 2018 Mayor Larson called the work session to order at 6:00 p.m. Roll Call Present-Larson, Bartholomay (6:30 p.m.), Bernhjelm, Craig and Donnelly(6:05 p.m.) Absent-None Also Present-Administrator McKnight, Community Development Director Kienberger, Parks and Recreation Director Distad, Fire Chief Elvestad, Finance Director Malecha, Human Resources Director Wendlandt and Public Works Director Gehler. Agenda Motion by Bernhjelm, second by Craig,to approve the agenda. APIF, motion carried. 2019 Draft Budget Update Administrator McKnight presented an updated draft of the 2019 budget. A number of changes have been made to the draft budget that was presented at the June 11, 2018 work session. The current version includes a budget of$12,946,226 (2.50% increase over 2018), revenues of $3,198,401 (1.11%over 2018), debt levy of$3,452,460 (2.65%increase over 2018) and a tax levy of$10,795,152 (2.87% increase over 2018). The changes that were made to reduce the tax levy from the previous draft version in June include: • Removed the two requested additional positions in the police department. • Adjusted the requested additional administrative support in the General Fund and placed these costs in the Community Development budget. • Adjusted the anticipated local government aid amount up by$1,087 as a result of the most recent legislative session. These changes have allowed staff to reduce the draft tax levy increase to 2.87%. In addition, some additional dollars were made available that were placed in the Transfers budget. These dollars include $8,708 in tax levy and $1,087 in local government aid. These dollars have been placed in the trail maintenance line item. The remaining new position requested in the budget include: July 9, 2018 Work Session Minutes - 1- 1. A transition to two custodians and away from contracted building cleaning 2. A Community Development Specialist/Code Enforcement position 3. A full-time Assistant Fire Chief/Inspector 4. Increased administrative support in the General Fund Department heads reviewed their reasoning for requesting new positions in 2019. McKnight reviewed the wage and benefit cost of each new position. Councilmember Craig asked about the cost different between contracted custodians and staff custodians. McKnight shared that it costs a little more to have staff custodians but they can do so much more. Mayor Larson inquired about the difference between the requested Assistant Fire Chief position and the former Fire Marshall position. Fire Chief Elvestad stated the first priority will always be emergency response and reviewed the duties that would be performed. Councilmember Craig asked how much we have paid the City of Lakeville for their work on fire inspections. Elvestad did not have that information for the meeting but shared that Lakeville has been very kind to Farmington in this area. Councilmember Bernhjelm asked about incorporating potential increased staffing costs into future township contracts. Councilmember Donnelly asked about city staffing levels with the proposed positions compared to years ago. Human Resources Director Wendlandt stated that if these positions are added, the FTE count would increase from 83 FTE to 87.5 FTE. McKnight reviewed the Transfers budget and reminded the city council there is $25,000 in this budget for a use to be determined. The city council directed staff to use $16,000 of these dollars for the purchase of ten thermal imaging cameras for the fire department. The remaining$9,000 can remain in the budget with a future use to be determined. McKnight reviewed the draft 2019 liquor store, arena and park improvement fund budgets with the city council. Parks and Recreation Director Distad reviewed the balance in the Park Improvement Fund ($1,366,619) and the four proposed projects to be completed in 2019. McKnight presented a proposal for the fire department duty chief compensation program. The fire officers have proposed an increase in their monthly stipend to recognize the work associated with this work after being asked to consider this issue by the city administrator. City councilmembers will bring this issue back for discussion at a future work session. July 9, 2018 Work Session Minutes -2- Rambling River Center Plaza Proposal Parks and Recreation Director Distad and Community Development Director Kienberger presented a proposal from Hosington Koegler Group, Inc. (HKGI) on the Rambling River Center Plaza project. The proposal includes: • A schematic design that provides more detail to the master plan including refining the construction cost estimates. • Site survey work to define property boundaries and utility locations that are necessary to complete project cost estimates associated with plaza improvements. • Fundraising assistance that would provide strategies and tactics to secure financial partnerships for assorted plaza improvements. • An optional completion of a 3-D rendering of the plaza to help illustrate the plaza design The proposed cost of this work is $21,300. City staff is recommending that this funding come from liquor store profits available in 2018. Councilmembers Craig and Bernhjelm asked about the experience HKGI has with fundraising. Kienberger shared that they are working with the City of Chaska currently on a fundraising project. Bernhjelm felt that city staff could take the lead on the fundraising part of this project but would like to get more history on HKGI. Mayor Larson felt the proposed amount for the contract was a bit high, especially with the knowledge HKGI has with our community. Bernhjelm asked for a clarification on the proposed contract amount. Distad will verify the proposed range/cost for the city council. The city council directed staff to get more information on the fundraising proposal, was not interested in a 3D rendering, asked for clarification on the proposed contract costs and wants to see a financing plan for the project. Pavement Management Program Public Works Director Gehler presented additional information on pavement management opportunities in the city. Gehler presented pavement management options to incorporate a higher level of street maintenance in the city. The options are based on preliminary funding levels for 2019 and making use of existing fund balance dollars to jump start both the overlay program for streets and trail replacement program. July 9, 2018 Work Session Minutes -3- Gehler showed that the 2018 benchmark funding amounts for annual work based on our current street and trail mileage stand at: Street Crack Sealing $33,000 Street Seal Coating $145,000 Street Mill and Overlay $600,000 Trail Crack Sealing $6,000 Trail Fog Sealing $12,500 Trail Pavement Replacement $475,000 Gehler reviewed three potential mill and overlay projects that could be done in 2019 using fund balance dollars. Councilmember Craig asked if there is a project that has priority. Gehler stated the Nelson Hills project would be her recommendation. The city council supports the reimplementation of mill and overlay work and trail maintenance in the city and asked staff to continue to work to find the funding to fully implement this plan in the future. Gehler reviewed the work that needs to be done to repair sidewalks downtown and in Vermillion River Crossings. The decorative paver bricks are crumbling in both areas. Gehler estimated the cost at replacing the deteriorating areas at$160,000 in Vermillion River Crossings and $400,000 downtown. Gehler stated staff would need to work to formalize a design concept, but it would not include the decorative bricks, different colors of concrete, etc. Gehler shared that the Vermillion River Crossings development does have $170,000 set aside for pavement management that can be used for work in that area. The city council supported this work and asked staff to come up with financing options for the downtown area. Liquor Store Profit Expenditures Administrator McKnight presented the 2017 liquor store profits for use in 2018 and shared the $593,860 in department requests for the $82,000 of dollars available for use. The city council decided to wait on determining the use of these dollars until the arena study and plaza projects move forward. Purchasing Policy Finance Director Malecha presented a draft purchasing policy for city council discussion. The policy defines purchasing guidelines as established by Minnesota Statute and the create strong internal controls. July 9, 2018 Work Session Minutes -4- Councilmember Craig asked if the city council could determine the dollar amounts in the policy. Malecha stated they could in the internal controls section. Councilmember Bernhjelm thought the dollars amounts were high and wanted to consider this policy more. Public Works Director Gehler shared that professional services should be separated from the bid amounts because, by law, they do not have to be bid. Administrator McKnight shared that there needs to be an exception to limits since the city council meets every two to three weeks and some of our bigger projects need immediate decisions. The city council directed staff to continue to work on this policy taking into account the issues raised by members. Adjourn Motion by Bartholomay, second by Bernhjelm,to adjourn the meeting at 7:46 p.m. APIF, motion carried. Respectfully Submitted Davi If&a/Carl ' David McKnight, City Administrator July 9, 2018 Work Session Minutes -5-