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HomeMy WebLinkAbout07.08.19 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION JULY 8, 2019 Mayor Larson called the work session to order at 6:00 p.m. Roll Call Present-Larson, Bernhjelm, Craig and Hoyt Absent-Donnelly Also Present-Administrator McKnight, Community Development Director Kienberger, Planning Manager Wippler, Police Chief Rutherford, Fire Chief Elvestad, Finance Director Malecha, Public Works Director Gehler, Human Resources Director Gabbard and Parks and Recreation Director Distad. Agenda Motion by Hoyt, second by Bernhjelm, to approve the agenda. APIF, motion carried. Heritage Preservation Commission Community Development Director Kienberger and Planning Manager Wippler shared a history of the recent city council action related to the Heritage Preservation Commission. The city established a heritage preservation program with the adoption of a historic preservation ordinance in 1992. The 1992 ordinance also created the city's first Heritage Preservation Commission.The HPC had historically consisted of 5 members appointed by the City Council and met bi-monthly. According to Section 2-11-3(A), HPC members shall include professionals in the disciplines of history, architecture, architectural history, archaeology, planning, or related disciplines and such other persons as have demonstrated interest or knowledge of historic preservation. Since the early 1990's the HPC had designated 16 local properties as Heritage Landmarks (of which 3 are listed in the National Register of Historic Places). Additionally, 12 other properties have been determined eligible for Heritage Landmark designation. According to Section 2-11-1 of the city code,the function of the heritage preservation program within the community is to: July 8, 2019 Work Session Minutes -1- • Safeguard the heritage of the city be preserving the buildings, sites structures, objects, and districts which reflect the elements of the city's historical, architectural, archaeological, or cultural heritage; • To assist in protecting and enhancing the city's appeal to residents,visitors, and businesses; • To foster civic pride in the beauty and notable accomplishments of the city's past; • To promote the preservation, protection and use of historic buildings, sites, structures, objects and districts for the education and general welfare of the people of the city; Another important component to what was the city's heritage preservation program was the federal/state/local government partnerships. In 1980, Congress amended the National Historic Preservation Act to provide for certification of local historic preservation programs by the Secretary of the Interior. To become a Certified Local Government (CLG), a local government program must adopt a preservation ordinance, establish a qualified heritage preservation commission, maintain a system for identifying and evaluating historic properties, provide for adequate public participation in its activities, and perform other functions delegated to it by the State Historic Preservation Officer. CLG's exercise greater autonomy in the National Preservation Program and are eligible for special pass-through grants from certain federal programs. The city's preservation program was certified in 1994. In the past,the HPC was charged with (among other things) carrying out the design review provisions contained in the city's preservation ordinance (Chapter 11 of Title 2 of the city code). This requires mandatory review of applications for certain types of permits affecting significant heritage resources. Property owners would be required to obtain a Certificate of Appropriateness to demolish or move a historic building, and for new construction that affects heritage resources. The HPC was empowered to advise property owners on exterior changes, alterations, and other improvements to designated heritage landmarks. The HPC also worked in conjunction with the city's Planning Commission on development projects that involved heritage resources. The city's recently approved draft 2040 Comprehensive Plan states that the preservation of the community's heritage resources is an important local government responsibility, and that the time, effort, and financial resources that are spent on heritage preservation is a wise community investment. The draft 2040 Comprehensive Plan also states that modest expenditures on research, planning, protective measures,technical assistance, and education can bring multiple benefits to the community, including community character, revitalization, and economic growth. In addition, the adopted Downtown Redevelopment Plan emphasizes the preservation of the downtown area by retaining the historic buildings and features that make the area unique. A guiding principal of the Downtown Redevelopment Plan is "Preserve and enhance downtown's unique historic character to attract people to gather, visit, shop, work, and live downtown." Without funding in place,the HPC has ceased to exist, and by continuing to do nothing with regard to the commission itself or the ordinances that direct the HPC,the city is at risk of not July 8, 2019 Work Session Minutes -2- being able to fulfill the responsibilities and duties that are outlined in city code. Staff has consulted the City Attorney and not having made any appointments to the HPC exposes the city to potential challenges for not being able to process certain applications as currently outlined in city code. Mayor Larson asked if the risks of not having an HPC were shared when the committee was disbanded. Kienberger stated they were. Councilmember Bernhjelm asked what happens if we cannot find qualified candidates. Kienberger stated that doing nothing now is a risk and staff is recommending a recruitment attempt for members of the HPC. The Exchange Bank Building sale will cause some issues related to the HPC. Councilmember Hoyt sees two issues including the risk of no action and the opportunity for a better government process. Discussion occurred about appointing members of another commission as the HPC. The city council direction was to have staff look into appointing one of our other commissions as the HPC and bring back this issue for final decisions when ready. PTO Policy Human Resources Director Gabbard shared information on the current Paid Time Off(PTO) Policy. In 2011, the city council approved the use of Personal Time Off(PTO) for all newly hired staff beginning January 1, 2012. PTO is an all-inclusive paid time off program. PTO is intended to be used for a variety of traditional types of time away from work including but not limited to vacation, illness, personal business, medical appointments,family time, and personal holidays. At the time PTO was approved, it was not offered to unions, but it was offered to non-union staff if they wished to change from sick and vacation accruals to PTO accruals.When council approved PTO, the maximum hours that an employee could accrue in PTO was set at 320 hours, which equates to eight weeks of accrued time off. However, at this time we have staff who have been here between five and ten years, who have already accrued the maximum accrual rate. One of the ways in the which the city can continue to be an "employer of choice" in the region is to periodically review policies, procedures and benefits. In my short time here, it is evident that the city needs to raise the maximum accrual rate for those employees who are eligible for PTO. 320 hours is not enough of a balance for an employee to be out for the full term of the Family Medical Leave Act. Gabbard requested an update to our PTO policy to increase the maximum accrual rate for PTO. An increase in the maximum accrual rate for PTO will be helpful to the city for a number of July 8, 2019 Work Session Minutes -3- reasons, most importantly to help retain our current staff. Additionally, allowing our employees to accrue more PTO time will cover them should they need additional time to deal with a family or medical issue. Lastly, raising the maximum accrual rate will make PTO more appealing to potentially bringing bargaining unit members into the PTO system. Staff reached out to a number of cities regarding their maximum accrual rate for PTO,and I heard back from many of them. Please see the below scale for a comparison of data relating to their maximum accurate hours.You will notice that our current maximum accrual does not reach even the lowest city that responded to my request. Public Entity Maximum Hours Wright County 840 hours Apple Valley 800 hours St.Louis Park 640 hours Lino Lakes 600 hours St.Michael 520 hours West St.Paul 512 hours Maplewood 496 hours Gabbard requested that the maximum accrual rate for PTO be increased to at least 480 hours, or twelve weeks of accrued time off. This request is being made due to several employees who are already at the maximum, but also because the Family Medical Leave Act(FMLA) provides our employees with benefits. FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specific family and medical reasons, and they are area eligible for up to twelve weeks of time off. We allow our employees to be paid during FMLA, depending on their accrual. Our current maximum accrual does not provide enough time to cover FMLA—and as an organization we should provide our employees with an opportunity to accrue at least a maximum balance that equates to what FMLA provides. Councilmember Bernhjelm stated that 320 hours seems high and asked if there is a way to fund FMLA qualified events outside of use of PTO. Gabbard clarified the existing PTO accruals and PTO cap of 320 hours. Bernhjelm was concerned about increasing the liability of our compensated absences fund if we increase the PTO cap. She asked if there could be different caps based on years of service. Councilmember Hoyt asked about comparisons of PTO caps to those in place for employees on vacation and sick and if this potential change made the two more equitable. Gabbard stated it did not and we were not looking at adjusting vacation and sick caps. July 8, 2019 Work Session Minutes -4- Staff will look into the option of different PTO caps based on years of service and bring this issue back for additional discussion. 2020 Draft General Fund Budget Finance Director Malecha presented the first draft of the 2020 General Fund budget for city council review. The 2020 and 2021 General Fund budgets were developed with the intent of continuing to provide core city services, align with the city's long-term financial plan, and support the city council priorities. DISCUSSION Staff has worked diligently to create a budget with a 0.00 percent levy.The 2020 draft General Fund budget has accomplished that and is summarized below: 2019 2020 Increase Budget Proposed (Decrease) Budget Revenues $3,199,486 $3,392,723 6.04% Expenditures 13,007,794 13,623,914 4.74 Fiscal Disparities 2,225,003 2,240,914 0.71 General Fund Levy 7,583,305 7,990,378 5.37 Debt Levy 3,212,460 2,805,387 (12.67) Net Tax Levy $10,795,765 $10,795,765 0.00% Revenues When compared to the 2019 amounts,the 2020 revenue estimates have been increased $193,237.The following explain the major changes: License and Permits The 2020 budget assumes$472,945 in revenue.The majority of the increase is in building permits and plumbing and heating permits.The 2019 budget was lower than previous years based on the low number of available buildable lots.The 2020 budget accounts for recent approvals of three new plats. Intergovernmental July 8, 2019 Work Session Minutes -5- Intergovernmental revenue includes the addition of Community Development Block Grant (CDBG) funding received for the RRC and also a state grant for election judge wages for the 2020 primary election. Charges for Services Fire charges have been increased slightly to account for an increase in the contract rates with the surrounding townships. Fines and Forfeitures The fines and forfeitures revenues have been increased based on historical actual revenue. Investment Income Investment income has been increased reflecting the General Funds' strengthening financial position. Miscellaneous Revenue The rental income shows an increase in the 2020 budget to account for the space rented by the USDA. Transfers In A detailed break-down of the transfers in and out of the various funds is included in a separate exhibit.The transfers in to the General Fund are from the enterprise funds to reimburse the General Fund for human resource and administrative costs which benefit the enterprise funds. Expenditures When compared to the 2019 amounts,the 2020 expenditure estimates have been increased $616,120. Of this amount$707,336 is attributed to human resource costs. The difference is a reduction to the departments budgets within the General Fund. Human Resource Costs All of the budgets include estimated human resource costs based on approved union contracts, an increase in health insurance, and estimates for employee benefits and worker's compensation premiums. July 8, 2019 Work Session Minutes -6- The 2020 budget accounts for a full year of the Community Development Specialist and Deputy Fire Chief positions.The 2019 budget included funding for those positions starting July 1, 2019.There was also the addition of two building maintenance positions to replace the contracted cleaning service and an increase to the administrative support at city hall by 0.4 in 2019.The 2020 budget includes funding for a Deputy Police Chief starting July 1, 2020. Information Technology The overall information technology charges have increased $52,879 over the 2019 budget. A portion of those costs are attributed to a vendor that provides the software for many of our departments along with our network connection and security.The remainder of those costs are internal charges that are charged to each department that incurs the cost. For the 2020 budget, all IT costs have been moved from individual department budgets to the IT budget attributing for the majority of the increase. A detailed break-down of the internal IT budget has been included as a separate exhibit in your packet. Transfers Out The transfers out are comprised of LGA and tax levy. A detailed break-down of the transfers has been included as a separate exhibit in your packet. Fiscal Disparities This amount will be finalized in August.The current draft includes$2,240,813 which is an increase of$15,810 over the 2019 budget.The city has historically seen an increase in fiscal disparity revenue each year. Debt Service Funds Levy The Debt Service Funds budget provides funding for scheduled debt principle and interest repayment obligations, as well as ongoing trustee, assessments, arbitrage, and post- issuance compliance fees related to the city's debt.The levy includes both General Obligation bonds and Interfund loans. The net debt levy for 2020 reflects a decrease of$407,073 from the 2019 budget.The 2020 budget does not include a debt levy reduction that was included in the 2018 and 2019 budgets. Additional Notes July 8, 2019 Work Session Minutes -7- The proposed tax levy is 0.00 percent.This is less than the amount needed to fund ongoing equipment, vehicle, streets, trails, and building maintenance needs.Those needs are further addressed in a separate memo. Councilmember Bernhjelm appreciated the 0% levy. She expressed a desire to move new personnel dollars to other priorities in 2020. Councilmember Hoyt appreciated the 0% levy. He asked if there were other costs in the future that we should be considering now. Mayor Laron supported the proposed Deputy Police Chief position in the 2020 budget. Hoyt wants to ensure were are prioritizing needs over wants. Councilmember Craig arrived at 6:48 p.m. A majority of the city council supported the proposed tax levy for 2020 at the same level as 2019 and including the Deputy Police Chief position in the budget. Future Projects and Funding Administrator McKnight presented a variety of potential projects that the city council and staff have discussed over the past year. These projects and estimated costs include: Ice Arena Phase One-Zamboni/Concession Stand Relocation $360,000 Phase Two-Locker Room Upgrades $1,650,000 Phase Three-Second Sheet of Ice $6,000,000 Rambling River Center Plaza Project $800,000 Downtown Sidewalk Repair $750,000 Fire Department Ladder Truck(2021) $1,100,000 Engine One (2026) $1,100,000 Jim Bell Park and Preserve Phase One Development $6,000,000 Liquor Stores July 8, 2019 Work Session Minutes -8- Relocated Downtown Store (Misc.) $100,000 Build New Pilot Knob Store $1,500,000 Public Works Fuel Station $150,000 Salt/Sand Storage Facility $250,000 Pavement Management Increased Street Maintenance Funding $300,000* Increased Trail Maintenance Funding $403,000* *In addition to what is included in the 2020 draft budget Building Maintenance Increased Building Maintenance Funding $264,000* *In addition to what is included in the 2020 draft budget General Fund Vehicles Increased General Fund Vehicle Funding $640,000* *In addition to what is included in the 2020 draft budget McKnight recommended the following projects for 2020 and beyond: Arena Phase One-Complete in 2020 with funding sources including: ✓ $300,000 from liquor store profits ✓ $35,000 from the Arena Capital Fund ✓ $25,000 from the Farmington Youth Hockey Association Phase Two-Complete in 2021 with funding sources as follows: ✓ $1,650,000 from debt repaid approximately$198,000 each year from 2021-2030 Phase Three-Place this issue on a future referendum. Rambling River Center Scale this project back to include just a parking lot renovation in 2021 at an estimated tax levy cost of$150,000. Downtown Sidewalks This project is more and more evident that it is needed. July 8, 2019 Work Session Minutes -9- Fire Department Purchase the ladder truck in 2021 with a combination of cash and debt. The breakdown includes$100,000 from liquor store profits in 2021, $120,000 from the tax levy in 2021 and $880,000 in debt. Replace Engine One in 2027 by collecting$220,000 from the tax levy each year from 2022 through 2027. Jim Bell Park and Preserve Phase one of the park development should be placed on a future referendum. Liquor Stores Staff recommends continuing to plan for a new future downtown store. In addition, staff recommends hiring an architect to help develop the cost to build a future Pilot Knob store. Public Works Staff recommends that the fuel station project be completed in 2020 with $150,000 coming from the Cable Franchise Fund. Staff also recommends completing the salt/sand storage project in 2021 with $250,000 coming from the Cable Franchise Fund. An architect should be hired to plan out the complete use of the north campus as the first step in the process. Pavement Management Staff recommends to continue to increase street maintenance funding and trail maintenance funding in each annual budget. Building Maintenance Staff recommends to continue to increase building maintenance funding in each annual budget. General Fund Vehicles Staff recommends using General Fund balance that is in excess of the 40%goal at the end of 2018 to purchase General Fund vehicles in 2020. This is approximately$640,000. Future budgets should work towards an annual funding amount of$650,000 to maintain our fleet and avoid bonding for large scale purchase like fire engines. City council direction on the projects at this point included: ✓ Support for the arena phase one project in 2020 and asked staff to contact FYHA about financial support for this project. ✓ Support for the arena phase two project in 2021 with direction to look for sponsors and to contact ISD 192 and other hockey groups about financial support for this project. July 8, 2019 Work Session Minutes - 10- ✓ Use the dollars proposed in the 2021 tax levy from the Rambling River Center parking lot for the downtown sidewalks project. ✓ Support the proposed funding of the purchase of the ladder truck in 2021. Further discussion will take place on how to fund the Engine One replacement. ✓ Further discussion should take place about future liquor store options. ✓ Asked staff to look at some other local options for the fuel station and bring this issue back to the city council for further discussion. ✓ Support the continued increases in pavement management and trail maintenance through the annual budget process. ✓ Asked city staff to look at what a 1% increase in the tax levy would cover in terms of building maintenance and bring this back for discussion. ✓ Supported using the 2018 dollars in excess of the 40%fund balance for General Fund vehicles in 2020. City Administrator Update Reminded the city council that requests for participation in events should be run through the city administrator. Discussed the schedule for Coffee with the Council that will begin in July. Fire Chief Elvestad invited the city council to the fire candidate graduation ceremony that will take place on Monday,July 29, 2019. Adjourn Motion by Hoyt, second by Bernhjelm, to adjourn the meeting at 7:23 p.m. APIF, motion carried. Respectfully Submitted David McKnight, City Administrator July 8, 2019 Work Session Minutes -11-