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HomeMy WebLinkAbout09.02.08 Council Minutes 7a.... COUNCIL MINUTES PRE-MEETING September 2, 2008 1. CALL TO ORDER The meeting was called to order by Mayor Soderberg at 6:30 p.m. Members Present: Members Absent: Also Present: Soderberg, Fogarty, McKnight, Pritzlaff, Wilson None Elliot Knetsch, City Attorney; Peter Herlofsky, City Administrator; Robin Roland, Finance Director; Todd Reiten, Municipal Services Director; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant 2. APPRO VE A GENDA MOTION by Fogarty, second by McKnight to approve the Agenda. APIF, MOTION CARRIED. 3. CITIZEN COMMENTS 4. COUNCIL REVIEW OF AGENDA Councilmember Fogarty noted a correction in the August 18, 2008 pre-meeting minutes. Councilmember McKnight asked about the promotion in the Police Department and what created the vacancy. Finance Director Roland noted that is a new position for 2008. Regarding the recycling contract, Councilmember Wilson asked if residents will have three containers. Municipal Services Director Reiten explained there will be one for garbage, one for yard waste, and one for recycling. City Administrator Herlofsky explained there is one fee. The fee does not change for recycling and residents are not charged separately for recycling. 5. STAFF COMMENTS 6. ADJOURN MOTION by Pritzlaff, second by Fogarty to adjourn at 6:39 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~>>7~ Cynthia Muller Executive Assistant COUNCIL MINUTES REGULAR September 2, 2008 1. CALL TO ORDER The meeting was called to order by Mayor Soderberg at 7:00 p.m. He noted this is the first regular Council meeting in the new City Hall. 2. PLEDGE OF ALLEGIANCE Mayor Soderberg led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Soderberg, Fogarty, McKnight, Pritzlaff, Wilson None Elliott Knetsch, City Attorney; Peter Herlofsky, City Administrator; Robin Roland, Finance Director; Todd Reiten, Municipal Services Director; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Nick Schultz, Ed Samuelson, Beve Preece, Guy Smith, Cameron Maxwell, Keith, Kathy & Carolyn Ellis, Mark & Amy Pellicci, Mike Morton, Julie McKnight, Jim Bell, Mark Snider, Spacer Snider, Austin Snider, Craig Davis, Erin Ristow, Monica Eckert, Joe Harris 4. APPROVE A GENDA Councilmember Fogarty added the August 18, 2008 pre-meeting minutes and noted a correction in the minutes. Mayor Soderberg pulled 7a) Council Minutes (8/18/08 Regular) to abstain. MOTION by Fogarty, second by McKnight to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS Mayor Soderberg noted Commissioner Joe Harris and School Board Chair Julie McKnight were in attendance. a) Introduce New Employee - Administration Lisa Linnane was introduced as the new Administrative Support Technician. b) Proclaim September as National Senior Center Month MOTION by Pritzlaff, second by Wilson to proclaim September as National Senior Center Month. APIF, MOTION CARRIED. 6. CITIZEN COMMENTS Mr. Mike Morton, 608 Heritage Way, stated he received a flyer regarding the swimming pool and asked what concessionaire means. Mayor Soderberg stated it would mean Council Minutes (Regular) September 2, 2008 Page 2 someone other than the City would run the pool as a private enterprise or non-profit. At this point, nothing has been determined. It is in the budget as a suggestion. Mr. Morton stated he read the budget and there is no number listed for money. He bought his house 12 years ago because of the park. There used to be an ice rink there, now that is gone. The City did a great job with the basketball and volleyball courts. There are miles of pavement that are not concessionaire and he did not know why the pool should be treated any different than a walking path. It is available for all citizens. The only reason it shows a loss, is there are only two places that collect money. If there was a toll gate on the paths, you would not see a profit off the paths. He suggested the City keep the pool as is. If we have to get more funds for it by raising costs, so be it. He felt it would fail as a concession. If the City cannot get it to go, a private person could not make it go. Mayor Soderberg noted this item is part of the budget which is on the agenda. Ms. Kathy Ellis, 600 Park Drive, stated she was also concerned about the outdoor pool. Her family has lived here for ten years and loves the pool. There are many, many other people there constantly in the summer. It is great for the community. She realized it is not a money-making operation and has seen the numbers, but there are things you cannot put a price tag on. It can be a public safety issue as well. Look at all the children picked up by the swim bus. What would they be doing if they did not go to the pool? It is a great place for families to come together, build friendships, and build the community. She asked Council to look at the numbers and try to cut somewhere else. 7. CONSENT AGENDA MOTION by McKnight, second by Fogarty to approve the Consent Agenda as follows: b) Approved School and Conference - Fire Department c) Received Information School and Conference - Police Department d) Approved Appointment Recommendation Police - Human Resources e) Approved Bills APIF, MOTION CARRIED. a) Approve Council Minutes (8/18/08 pre-meeting & regular) MOTION by Pritzlaff, second by Wilson to approve the August 18,2008 pre- meeting and regular minutes. Voting for: Fogarty, McKnight, Pritzlaff, Wilson. Abstain: Soderberg. MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS a) Approve Recycling Contract - Municipal Services The current recycling contract with Dick's Sanitation expires at the end of2008. The new contract would be for five years with single-sort recycling and every other week pickup. Residents will receive a 65 gallon container for recycling. Council Minutes (Regular) September 2, 2008 Page 3 The cost for recycling will remain the same for 2009, with a 4% increase each year thereafter. There will be a fuel surcharge in the case of diesel fuel going over $4.50 per gallon. The contract would still include the City's annual clean-up day and options for seasonal yard waste containers. If the price of fuel decreases, the surcharge will drop off. The money received for recycling will come directly to the City and the City will receive 100% of the revenues. Councilmember Pritzlaff had asked staff previously to investigate a few other things regarding solid waste and include solid waste collection in the contract with Dick's Sanitation to determine if it would be cheaper. He had also suggested going through the RFP process to obtain a different contractor. Municipal Services Director Reiten stated staff is still obtaining the information, but according to what has been received, Farmington residents are getting a good bargain compared to other surrounding cities. Farmington has a lower cost compared to other cities who have solid waste and recycling with one company. Currently, Solid Waste employees also provide services for clean-up days, Rambling River Days, etc. Drivers are also used for snow plowing. City Administrator Herlofsky stated part of the issue with the budget for 2009, is it does include administrative overhead which comes back to the general fund as revenue which is used to offset other administrative costs. The advantage with our own operation is we have a great deal of flexibility with specific projects. When the community has an event and needs things cleaned up, we have the flexibility to do it with our own staff. There are some extras that do not have a monetary value. If we had a contract with someone else, those items would be an additional cost. We also do not have the mark-up and overhead that the private sector would have to carry. Staff will have more information later this year. MOTION by Pritzlaff, second by Wilson to approve the 2009-2013 Recycling Contract Extension Agreement. APIF, MOTION CARRIED. 12. NEW BUSINESS a) Consider Resolution - 2009 Preliminary Tax Levy and Budget - Administration The 2008 adopted budget is $9,062,609. Building permits for 2009 are expected to be $250,000 - $300,000. Previously, building permits were $750,000 - $1 million. From 2008 to 2009 the City would be short $1 million in revenue. Halfway through the year, the City amended the 2008 budget to $8,879,736, cutting $200,000 by not filling vacant positions and one layoff. The 2009 budget is estimated to be $9,276,455 which is a $200,000 increase over the 2008 adopted budget. With the reduction in budget it is close to $400,000. In 2006 and 2007 we contributed to the fund balance at the end of the year. By making this adjustment half way through the year we hope to add to the fund balance. As part ofthe 2009 budget, staff has asked to include a Fire Chief. Based on a 50 member paid on-call staff it is time to have more administrative management of the department. The other position staff anticipated to add in 2009 is an additional Police Officer. This officer would be assigned to the school district. Council Minutes (Regular) September 2, 2008 Page 4 The school district reimburses the City for the time spent at the school. The position would start in September 2009. The pool is not included in the 2009 budget and staff wOllld like to see if there is someone else who would like to manage it. Staff is also suggesting the Council levy an additional $100,000 for the EDA. Also not included in the budget is the Recreation Supervisor position. Each of these items is estimated at $100,000. In 2008, the total levy was $8.8 million. Staff is proposing $9.5 million in 2009. This is a difference of over $600,000. This amount is split in half between debt service and the general fund. The maximum amount that the City can levy is $9,659,992, which is $200,000 under what staff is proposing. Before September 15, Council needs to determine the levy amount. The amount cannot be raised, but it can be reduced. In 2008 the City's tax rate is 43.78%. In 2009 the tax rate with the proposed numbers would be 45.3%. Councilmember Fogarty asked if the EDA institutes a levy they currently do not have, if the EDA has to approve it. There would have to be a special EDA meeting. Finance Director Roland noted staff originally looked at an HRA levy which would have to be approved by the HRA. Because the EDA levy is an allocation of funds in the total levy, the Council would approve the total levy, so a separate meeting would not be needed. The EDA would have to approve their budget. Councilmember Fogarty noted technically they are an HRA/EDA. So a special meeting of the EDA would be necessary. Council discussed some e-mails sent from Councilmember Wilson which caused some concern among Councilmembers. The e-mails dealt with Park and Recreation program elimination and discussions between the City and the School District he felt as a Councilmember he should have been aware of. The budget is eliminating a position and closing the pool without any rationale. Councilmember Wilson agreed the e-mails were unprofessional, but he would not apologize for trying to defend the Parks and Recreation department. Councilmember Wilson stated he had an interest in working with Council and would meet with City Administrator Herlofsky. Councilmember McKnight stated he would like to see the total levy increase at 5%; right now we are at 6.98% plus the $100,000 EDA levy. He felt the pool needs to stay open as it is one ofthe few amenities we have for children. To offset that, he felt the Fire Chief position could wait until the future. He was concerned with the overall number. He directed staff to get to the 5% level. If there are tougher decisions Council needs to make, they can be discussed at the workshop. Councilmember Fogarty agreed with waiting on the Fire Chief position. She would not support a budget that closes the pool. She suggested waiting until 2010 for the school resource officer. There is another officer that can be allocated to Council Minutes (Regular) September 2, 2008 Page 5 that position in a transition period. She supported the EDA levy and directed staff to get the numbers down. Councilmember Pritzlaff did not approve of closing the pool. He was reluctant to remove services first from the community. He wants the budget to be tight and should not be relative to house values going down. He also directed staff to get the number down to 5%. Regarding personnel services from the 2008 to 2009 proposed, there is a 9.1 % increase and asked for a reason. City Administrator Herlofsky stated part of that was for a Fire Chief, but $100,000 has just been taken out of that. Councilmember Pritzlaff noted street materials from 2008 to 2009 proposed there is a 15.5% increase, but in reality salt is showing a 50% increase. This is an increase in services the City provides to keep the streets clear. Councilmember Pritzlaff noted the sanitary trunk fund shows $223,000 for 2008 and $223,000 for 2009. In the objectives to be accomplished, the 2009 construction projects will not require any funding from the sanitary sewer trunk fund. Sewer facilities constructed will be 100% funded by the development. However, there is no building scheduled for any developments, so Councilmember Pritzlaff asked how that relates to the $223,000. Finance Director Roland stated Council has not approved any CIP projects, which would require the use of sanitary sewer trunk funds. If there is a construction project for infrastructure, if we replace sanitary sewer, some is assessed to homeowners, some is paid for by the City. The payments for the sewer come out of this fund. Staff does not anticipate any projects in the remainder of 2008 or in 2009 that Council has approved which require the use of those trunk funds. That is why all that is shown is revenue. Otherwise there would be transfers out to help pay for construction projects. This is for City generated construction projects, not individual developments. Councilmember Pritzlaff asked where the $223,000 in revenue is coming from. Finance Director Roland stated it is from standard fees that come from developers and from building permits within the City and the City SAC fee. A good portion comes from development fees which are specially assessed over a ten year period which were done in the past and the City receives special assessments on the projects. The revenue items are special assessments, the City SAC fee, dedicated fees, and investment income. The dedicated fees are fees paid by developers upfront, the special assessments are special assessments that are development fees paid over time. Regarding the full time Fire Chief position, Councilmember Pritzlaff has not had anyone from the Fire Department tell him that position is desperately needed. He would be in favor of keeping the organization as is and possibly there is some clerical staff anywhere in the City that could help out the Fire Department with paperwork. Councilmember Wilson did not support closing the pool. He had some questions regarding Parks and Recreation services. Youth basketball is being run through Community Education. Based on the fact the proposal shows we would not be operating the pool which would correlate to swimming lessons not being offered, he asked for more insight into the fact that identical numbers are being shown across the board and with increase in participation. He felt something was Council Minutes (Regular) September 2, 2008 Page 6 disconnected. City Administrator Herlofsky explained in looking at the budget, there was no discussion in programs being terminated when the budget process started. Staff is assuming that with a little more help from the Parks and Recreation Director and existing staff they can maintain the programs that are here. Councilmember Wilson asked if the City's Parks and Recreation department will be offering youth basketball. Mayor Soderberg stated whether we are having youth basketball or swimming lessons, that level of minutia is not germane to the budget discussion we are supposed to be having as a Council. Councilmember Wilson noted the budget talks about Recreation program services. Mayor Soderberg noted City Administrator Herlofsky has noted the question regarding the disconnect with the numbers and that staff can handle the workload. Councilmember Wilson noted staff is working to solidify the program information. City Administrator Herlofsky stated he spoke with Parks and Recreation Director Distad today and was not informed of any reduction in services for the fall program. They will be working on more financial analysis. Councilmember Wilson felt it would be good for the City and residents to have good collaboration between the City and the school district on programs. There does not need to be the City and the school district providing youth basketball unless the program is unique to the residents being served. He was trying to obtain insight into meetings that have been occurring that directly impact the budget. He recommended for next year, Council should consider having a goal setting workshop with the City Administrator in April or May. As a direct product of that, they could establish which items are important for the Council and the City Administrator. Council has charged the City Administrator with making recommendations to Council he feels are in the best interest of the City. Councilmember Wilson stated he strongly disagrees with those opinions, but does not fault the City Administrator for making those recommendations. Councilmember Wilson had a concern with the debt growth, such as the new City Hall, the Fire Station, significant road improvements with Elm Street and Ash Street, our current debt level is at 23.4% which is $150,000 below what the Council's stated goal is. Having a higher debt is a reflection of a City that is growing and adding necessary municipal services that are needed. He would not support hiring a Fire Chief, but he is aware Council chose not to fund a part time position for the Administrative Specialist for the Fire Department. He would not be opposed to seeing a part time position in that area if it would make things more efficient. It would not be his priority to have a new Fire Chief or a new vehicle. Councilmember Wilson felt the City needed to get more serious with Economic Development. He would not support the EDA levy, but would like to consider bringing in an Economic Development Director and focus more experience in that area. He would not support eliminating the Recreation Supervisor position. If we keep the pool open and maintaining the same level of programs, he would like to see that position remain. Councilmember Wilson stated he has found it harder to accomplish how the City and the school district can work together in a way that both the School Board and the City Council are at the table making decisions and discussing policies and procedures. There are pressing needs in the community and the Council does not have the ability financially to acquire land for the Council Minutes (Regular) September 2, 2008 Page 7 construction of ball fields or to work with interested parties. He would like to extend an olive branch for that collaboration. Councilmember Fogarty wanted to clarify Councilmember Wilson does not support the Fire Chief or the EDA levy. She wanted to make sure the proposed budget recommends shifting the Economic Development Specialist we currently have into the EDA budget, so by not supporting that levy, we would eliminate that position and add a director level position. She asked how that would be funded through the EDA. Councilmember Wilson stated that is a recommendation and staff can see how to make that work financially. Councilmember Pritzlaff asked to receive a copy of an invoice from a department that has been charged for maintenance done at the Maintenance Facility such as an oil change. If a Building Inspections pick up has had an oil change, he would like to know what we budget for that item and what that item might cost if it was done by a fleet service outside of the City to see if there would be a cost savings. He would like to compare a couple items such as an oil change from a pick up and some rear tires on a garbage truck. He would like to see invoices from 2008, what the charges are proposed to be for this year and an estimate from an outside source. Mayor Soderberg stated the pool is a quality of life issue and the Fire Chief position is a public safety issue. If there is a way to keep the pool open, that would be Council's desire. Having one individual on a part time basis manage 50 people in a department with the number of vehicles and issues seems unconscionable. We need someone there to do that management. There was a suggestion to look at a part time administrative position to help with the work load. He would like to look at that option. He was not ready to weigh in on the EDA levy yet. There was a transfer of personnel to that budget and cutting out the EDA levy means eliminating a person. Sometimes we may have to do that. The City of Farmington is not unique in that we might experience some layoffs. Public safety is an area where he does not want to do any layoffs. He suggested looking at other departments if we have to look at personnel. The budget is a separate item from the levy. What has been proposed is not the maximum we could do. He recommended continuing to work on the budget and set the levy as proposed knowing the budget can come down and bring the levy down so we do not miss the deadline with the County. Mayor Soderberg stated how the money is allocated and where we can make further cuts can be reviewed until December. Councilmember Pritzlaffwould like the majority of the hard work done now so that by September 15, Council has the number. He felt a majority of the Council felt 5% would be realistic. Councilmember Fogarty asked Councilmember Pritzlaffifthe 5% includes the EDA levy. Councilmember Pritzlaffreplied at this point the EDA levy is included. He had some discussions with City Administrator Herlofsky and if we cannot get the numbers down and leave the EDA levy in the budget, then he would not support the EDA levy. Councilmember Fogarty stated she would support the 5% level plus the EDA Council Minutes (Regular) September 2, 2008 Page 8 levy. Councilmember McKnight asked why we would pass this opportunity to let staff work on this the rest of this week and come to a consensus next week on at least a preliminary levy. It can be discussed further at the workshop and then have a short discussion on September 15. Councilmember Wilson agreed with Councilmember McKnight to reach a consensus next week. 13. COUNCIL ROUNDTABLE a) Twin Ponds Discussion - Administration Councilmember Pritzlaff has received some concerns regarding procedures other developers have had to follow. Parkview Ponds was allowed to build two houses when the streets, utilities and infrastructure were not in. Hometown development was also allowed to build a house without streets and infrastructure being installed. Sunrise Ponds was allowed to build two homes without streets and infrastructure. Twin Ponds has nothing set for streets, curb, infrastructure, etc. yet they are putting in footings and foundations. He felt we are not being consistent from one development to another. He has received calls as to why this is happening. Councilmember Pritzlaff also had a concern with access to Twin Ponds. He wanted to make sure there was a second access for emergencies. City Administrator Herlofsky stated this developer has had to adhere to all the requirements. The developer is the CDA and the project is north of 22Sth Street, and east of TH3. The units are rental and are affordable housing. The curbing matches right up to the building. The concern with Councilmember Pritzlaff is that in prior developments, the developer has not been authorized to build a structure prior to having utilities and roads in place. This is unique in that in order for the curbing to be right up to the building, the foundation for the structure needs to be placed at the same time. If the curbing were to be put in now and the foundations later, the curb would have to be tom up. In order to be consistent, yet flexible based on the type of development, we have authorized the developer to put in the footings which when finished will be buried up to the top. Nothing will be extending above the ground. Mayor Soderberg noted we have deviated on occasion by allowing some building permits from time to time and it has always been done at the developer's risk. Councilmember Fogarty: Reminded residents kids are back in school and to slow down. She suggested waiting for the City Hall open house until things are more completed, even until the end of October or November. She felt Councilmember Wilson brought up some good concerns and it is his duty to investigate and get information for residents, but it is also in his duties to not open the City up to litigation. His e-mail and his behavior have done that. While he does not think he owes Mr. Herlofsky and Dr. Meeks an apology, she feels he does and it would help mitigate those issues. Council Minutes (Regular) September 2, 2008 Page 9 Councilmember McKnight: He was looking for a projected timeline on the garbage collection research. Finance Director Roland thought staff made it clear it would be part of the budget discussions. It will be before October and staff will have preliminary numbers shortly. Councilmember McKnight thanked all City staff members who participated in the move. Councilmember Wilson: He thanked the residents who came to attend the first Council meeting in the new City Hall. Addressing Councilmember Fogarty, he stated he tends to believe apologies are a bit shallow. He acknowledged that the communications he sent were unprofessional. It is not his intent to create division between the City and the school district. He wanted to point out in the e-mail, he knows the Parks and Recreation Director has been having discussions with the Community Education department, which is good, but it is important for Council to be aware of what those discussions are. He understood they have an impact on programs the City will be offering. Since Council is discussing the budget, he felt they should be aware of that. Councilmember Pritzlaf/: He noted Finance Director Roland distributed some voice over IP information. He would still like a graph and explanation of the numbers for the maintenance. He stated Councilmember Wilson expressed his frustration with getting information from the City Administrator. He also expressed whether an apology is needed to other people in the community. Councilmember Pritzlaff stated he will leave that up to Councilmember Wilson, but felt he owed the Council an apology and some steps to mend the wedge with Council. Councilmember Wilson stated the best way to work together is this time of year to form a goal setting workshop. He apologized if he caused the Council frustration. He was not going to apologize for wanting to get information he feels is necessary to do his job. Mayor Soderberg: This is the beginning of 50 years or more of service in this building. He agreed with the suggestion to wait with the open house. 14. ADJOURN MOTION by Fogarty, second by McKnight to adjourn at 8:57 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~/Vl~ C Cynthia Muller Executive Assistant