Loading...
HomeMy WebLinkAbout02.17.09 Council Minutes /CL COUNCIL MINUTES REGULAR FEBRUARY 17,2009 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Donnelly, May, Wilson Fogarty Andrea Poehler, City Attorney; Peter Herlofsky, City Administrator; Robin Roland, Finance Director; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Todd Reiten, Municipal Services Director; Jen Dullum, Natural Resources Specialist; Randy Petrofske, Liquor Operations Manager; Cynthia Muller, Executive Assistant Annette Kuyper, Kevin Stadler 4. APPROVE AGENDA Councilmember May pulled items 7d) School and Conference - Parks and Recreation and 7n) Bills for discussion. Councilmember Wilson pulled items 7b) North Creek Rehabilitation Project Contract and 7c) Submittal of a Revised Application for Landfill Abatement Funds for discussion, Mayor Larson added item 70) Appointment Recommendation Fire Department, City Administrator Herlofsky clarified item 12a) HiPP Memorandum of Understanding has been removed from the agenda, and added 12b) Census Bureau Training Issue. MOTION by Wilson, second by May to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS Ms. Annette Kuyper, 20530 Dyers Pass, had several announcements regarding Farmington's Warrior to Citizen campaign. Beginning Saturday, Farmington will be hosting the Oral History Exhibit which is touring the state of Minnesota. Veterans and Military families are invited to the opening gala on Saturday. This is sponsored by the VFW. The exhibit is also going to Washington DC. It highlights recent veterans and their stories and there are five Farmington soldiers in the exhibit. The first fundraiser will be a spaghetti dinner on March 7, from 5-8 pm at the American Legion. On March 12, the campaign will be hosting the first law enforcement training curriculum presented by the upper midwest community policing group. Police officers will receive post credit for Council Minutes (Regular) February 17,2009 Page 2 attending the training. It highlights the unique challenges of returning veterans. It will highlight how police officers can interact with returning veterans. Farmington continues to set the standards for Warrior to Citizen groups throughout the state. Ms. Kuyper has been invited to present Farmington accomplishments at the U ofM Statewide Warrior to Citizen Working Group. Not only has the committee been hard at work with all the action plans, but the response from City leadership and the community has been a key factor in their success. She will share with the working group what the City of Farmington has done for our veterans and our military in the City. She thanked City staff leadership and the community for a great partnership. Mayor Larson thanked Ms. Kuyper for her hard work. 7. CONSENT AGENDA MOTION by Wilson, second by May to approve the Consent Agenda as follows: a) Approved Council Minutes (2/2/09 Regular) (2/9/09 Special) (2/9/09 Workshop) e) Approved School and Conference - Parks and Recreation f) Approved School and Conference - Natural Resources g) Received Information School and Conference - Municipal Services h) Received Information Capital Outlay - Municipal Services i) Approved Appointment to Parks and Recreation Commission - Administration j) Approved Appointment Recommendation Liquor Operations - Human Resources k) Approved Temporary On-Sale Liquor License - Administration I) Adopted RESOLUTION R8-09 Approving Gambling Event Permit - Administration m) Accepted Grant Funding - Fire Department n) Approved Bills 0) Approved Appointment Recommendation Fire Department - Human Resources APIF, MOTION CARRIED. b) Approve North Creek Rehabilitation Project Contract - Natural Resources Councilmember Wilson asked for a clarification regarding the contract resulting in a $100,000 reduction in the North Creek rehabilitation cost. Natural Resources Specialist Dullurn explained staff took a proposal to the Vermillion River Joint Powers Board in 2007. They put it in their budget to grant Farmington $100,000 for the project. This was recently passed because the project is coming to completion. The contract is to receive the funds from the Joint Powers Board. MOTION by Wilson, second by May to approve the contract between the City and the Vermillion River Watershed Joint Powers Board. APIF, MOTION CARRIED. c) Approve Submittal of a Revised Application for Landfill Abatement Funds - Municipal Services Councilmember Wilson noted the City will be receiving money from Dakota County, but wanted to clarify ifthe net result is an expense to the City or a gain in terms of a grant. Municipal Services Director Reiten explained last year the City received $18,000 for recycling promotion. When the City switched to single sort recycling, the County asked if they could do a study to see how much of a Council Minutes (Regular) February 17,2009 Page 3 difference there is between dual stream and single stream recycling. Council needs to approve receiving the money from the County. Staff will bring the results from the study to Council. MOTION by Wilson, second by May to adopt RESOLUTION R7-09 approving submittal of a revised grant application to Dakota County. APIF, MOTION CARRIED. d) School and Conference - Parks and Recreation Councilmember May noted at each Council meeting there are a number of training requests. She stated training is very important, but wanted to caution staff that in today's economic times we need to be extremely selective. For this training, she was not sure if it was appropriate at this time. She asked what the benefit would be for this session. Parks and Recreation Director Distad noted both Kellee Omlid and Missie Kohlbeck have expressed interest in this training as much of their job focuses on customer service through the Rambling River Center, program participants, handling phone calls, online registration, etc. Disney is the leader in providing customer service. Councilmember May asked if it would be possible to send one employee. Staff felt this is an option, but both have expressed interest. Councilmember May noted the training is around the first of May which is a busy time. Councilmember Wilson agreed, but he has more of a concern with out of state travel, which this one is not. He asked staff to provide Council with an itemized calendar for training for the year. Councilmember Donnelly felt it was a good opportunity and it is within the cities. These trainings usually pay back. City Administrator Herlofsky noted one of the reasons they go to training, is during the summer a large number of young people are hired. They are looking for additional help with their training. MOTION by Donnelly, second by Wilson to approve sending two employees to the Disney training. Voting for: Larson, Donnelly, Wilson. Voting against: May. MOTION CARRIED. n) Bills Councilmember May had several questions regarding items on the list of bills and staff responded to all questions. MOTION by May, second by Donnelly to approve the bills. APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Adopt Resolution - Approve Feasibility Report, Authorize Plans and Specifications 2009 Trunk Utility Project - Engineering This is a combination of the 4th Street trunk storm sewer extension which goes from a 'li block south of Elm Street to 1i block north of Walnut Street, and the 5th Street trunk sanitary sewer improvement which is within the same limits. These Council Minutes (Regular) February 17,2009 Page 4 two projects are necessary to allow the reconstruction of Walnut Street in the near future due to the deteriorating conditions of the road and the utilities. The last project is the Denmark trunk sanitary sewer extension project. This ties into the Met Council's interceptor line along the new extension of Spruce Street, west of Denmark, behind the fire station and then follows the right-of-way line of Denmark to Ash Street. The purpose ofthis project is to provide a tie-in when the City does a reconstruction ofthe Westview neighborhood. This area is on a lift station and this project would allow for the removal of that lift station and also provide for the elimination of the lift station near St. Michael's Church, and provide sewer access to properties west of Denmark and south of Ash Street that could develop in the future. The cost of the 4th Street project is $890,000, 5th Street $850,000, and Denmark $1,250,000. Councilmember Wilson confirmed this was not an assessment project and asked which fund the money is coming from. City Engineer Schorzman stated it is coming from the funds for sanitary, storm, and water. In total there is $1.7 million from the sanitary fund, $800,000 from the storm fund, and $400,000 from the water fund. Finance Director Roland noted there is a separate sewer trunk fund which substantially contributes to this project. Councilmember Wilson did not see the necessity for the project. We have a sewer project that is not linked to a road reconstruction project. He felt it would be more logical to pair the sewer project and a reconstruction project together for the 4th and 5th Street projects. City Engineer Schorzman noted the money would not be wasted. One of the issues is the majority ofthe house services tie into the east-west streets such as Walnut. There are not a lot of services along 4th and 5th were you could assess a portion of the project to the properties. Councilmember Wilson felt it did not seem practical to tear up a road when there is not an immediate need. Staff explained the need comes from Walnut Street for capacity in both the sanitary and the sewer when Walnut Street is done. The City has been repairing Walnut on a regular basis, piecing the sewer back together. Councilmember Wilson asked why we don't do 4th, 5t\ and Walnut at the same time. City Engineer Schorzman noted that could be done, and to do so we would have to let this project very early in the spring, as it will have to be phased where 4th and 5th Street happen first to get the utilities up to the 1i block south of Walnut before work is done on Walnut or the congestion in the downtown area will be very difficult. Councilmember Wilson confirmed that the school property on Walnut would be assessed. He would rather look at the project next year as with all the expenses the school district has, they would not be too pleased to see a large assessment this year. He would also like to give residents enough time to know a major project is coming. As far as Denmark, he asked previously if this could be done with development. City Engineer Schorzman stated it would wait for development, however if that does not happen prior to the need to do the reconstruction in the Westview neighborhood, then we would have to decide whether to do this project at the same time or replace the lift station. The Westview project is in the CIP for 2-3 years from now. Councilmember Wilson stated it would be hard to support any oftheses projects with taking money from City funds, even though those funds Council Minutes (Regular) February 17,2009 Page 5 cannot be used for the budget. City Engineer Schorzman clarified these projects would not be assessed this year. Councilmember May had questions with engineering costs. As 4th and 5th Streets cannot be done with Walnut, it would make sense to relieve some of the congestion and get those done this year and Walnut in the next year or two. With Denmark her concern was with possible right-of-way acquisitions and no anticipated cost number. City Engineer Schorzman stated after the report was completed, staff met with one land owner the City would be acquiring easements from, and they were very receptive to the project. Staff tried to keep the sewer line within easements or setbacks that would occur when the property is platted, therefore placing it in an area that would not have financial impact to the land owner. City Administrator Herlofsky stated the completion of this project will be favorable to development in this area. Councilmember May questioned the 27% engineering, legal, and administration cost. It is a large number for each of the projects and asked for a breakdown of the 27%. Finance Director Roland replied the standard 27% is used by engineering firms in cities consistently across local government. This includes 17% for engineering costs and 10% estimated legal and administration costs. The actual costs are charged against the project when it occurs. The 17% engineering cost is for the feasibility study, staking, surveying, and inspection of the project. Mayor Larson asked if the 17% could be negotiated with an engineering firm. Finance Director Roland stated it is not a set fee, it is a budgeting consideration. Mayor Larson asked staff to provide the engineering cost for the downtown Spruce Street project. Councilmember May asked we are not choosing an engineering firm or a firm price, this is just the budget number. City Engineer Schorzman stated it is a budget number to cover engineering expenses for the consultant engineer and the City's engineering time. Councilmember May asked when do we decide we need to use a consultant engineer and when do we do the work ourselves. If we have someone who completes the feasibility report, is there any reason they cannot complete the balance of the work. The numbers for the engineering are big numbers. City Engineer Schorzman stated there is a reason on projects like this we do not do in- house design. He is the only licensed engineer that is a City employee. There is one other Engineering Technician. With the amount of work we have outside of designing projects, these things would not get done. Councilmember May stated if most of the work is planned out, and the numbers are big, would it make sense to hire another licensed engineer on our staff. City Administrator Herlofsky stated last year when we hired a City Engineer, we eliminated an Assistant City Engineer position. The advantage of using a consultant is, if there is no work you do not layoff 1-3 people. If you have a busy summer, you bring them in and then they go away. During the summer the desks are filled with engineers, and now there is a much lighter staff. Councilmember May stated if we decide to have a leaner engineering staff, should we wait until that person has time to manage some of the projects. City Administrator Herlofsky stated Minnesota has two seasons - winter and construction. During construction time is when we try to do everything. During the winter we get caught up and plan for the next year. The Council Minutes (Regular) February 17,2009 Page 6 Bonestroo contract will be discussed at the next workshop and he will provide a spreadsheet explaining how the work is done. If we change engineering firms, he recommended it be done at the first ofthe year, not during mid-construction. Councilmember Donnelly noted he has also seen the 27% engineering costs in other projects. If we do not do the projects, no one's taxes will go down, and no money will be taken from the general fund that we can spend in other ways. Ifwe do not do the projects, we will have to budget for fixing things through the year. He sees this as not increasing taxes, improving the City's infrastructure, and putting people to work. Staff has gone to lengths to put projects on the table that do not include assessments in these hard times. Mayor Larson asked how much we would save on engineering costs if we did the work in-house compared to consultants. City Engineer Schorzman was not sure there would be a savings. City Administrator Herlofsky noted the engineering cost is there no matter which way you do it. We still have 195th Street. We thought these were good projects to do and do not create assessments. City Engineer Schorzman stated with the size of staff we have and were we are with development in the City, our staff is much more in line with doing more of the rehabilitation type projects proposed in the CIP. The expertise it takes to design sewer systems to make sure the grades are right, is something not easily gained, and very quickly lost if you do not work with it over time. Councilmember Wilson asked about the balance in the funds we would be using. Finance Director Roland replied the trunk storm sewer fund is at $4 million, the trunk water fund is at $5 million and the sewer fund and trunk sewer fund are just over $3 million. These are funded through developer fees that have been collected over time for the purpose of constructing trunk facilities within the City. Councilmember Wilson was fine with the 4th and 5th Streets, but felt it makes sense to do them with Walnut. Ifthey are done independently from Walnut, it does not make sense. He would rather do them in conjunction with a project we need. As far as Denmark, it sees this as an opportunity to say here is a cost we will incur if you develop in this area. City Engineer Schorzman stated the benefit to future developing projects are a secondary benefit. The benefit is to have the sewer there when we do Westview and having the opportunity to get rid of two lift stations. Councilmember May stated staff has done a good job in choosing projects that do not have assessments right now. She noted in an effort to reduce costs, one feasibility report was prepared for all three projects. It makes sense to get these projects done now. Mayor Larson asked how much of Denmark will be torn up. Staff stated it will be in an easement on private property abutting the right-of-way. No pavement on Denmark will be torn up. The area will be in outlots, fields, and ditches, except for hooking up to the fire station. Mayor Larson noted the report shows five acres Council Minutes (Regular) February 17,2009 Page 7 of erosion control blanket with turf seeding. He suggested using straw mulch and a general roadside seed mix to save money. Staff will research this. He would also like to do 4th and 5th Streets with Walnut, but would like to do Denmark now. Councilmember Donnelly asked how big the Walnut Street project is. Staff replied it is from TH3 to 3rd Street. It is in the CIP for 2010. City Administrator Herlofsky noted the report says 4th and 5th need to be done prior to or in a close time frame to Walnut Street. Walnut Street will need to be assessed. Finance Director Roland stated ifthey were included with the Walnut Street project, the trunk funds would still pay for the portion involved with the trunk and the assessments would be on those portions for lateral and street construction. City Engineer Schorzman stated the biggest hurdle with doing that is the traffic flow. It would be best to have 4th and 5 Street done first so you have some east-west connectivity through downtown before closing Walnut. MOTION by May, second by Donnelly to adopt RESOLUTION R9-09 approving the CIP plan for the west side of Denmark from Spruce to Ash Street, 4th Street 1i block south of Elm to 1i block north of Walnut, and 5th Street from Yz block south of Elm to 1i block north of Walnut. Voting for: Larson, Donnelly, May. Voting against: Wilson. APIF, MOTION CARRIED. b) Liquor Operations Analysis - Liquor Operations Liquor Operations Manager Petrofske gave an overview of liquor operations for 2008 and future events. For the downtown store, the customer count from 2007 to 2008 increased 7.8%. Some was due to the road construction in 2007. The customer count for the Pilot Knob location was down 3.2%, and sales were flat between 2007 and 2008. This was due to competition in surrounding areas, but customers are now returning. He presented an outline of sales growth for each store from 2004 to 2008. So far in 2009, sales are up from last year. Since 2005, liquor operations have contributed $190,250 to the general fund, $105,400 to the Park Improvement fund and the Arena fund, and $50,000 to the pool. They are watching employee expenses and doing more advertising. Sales are advertised on the website. There are weekly specials, a wine bag promotion with a discount, and wine tastings. There is also a wine in the park event, a holiday show in November and a wine tasting at Rambling River Days. Councilmember May noted there was a total of $451 ,000 transferred out over the last four years. In 2005 and 2006 there was a deficit and asked how money was transferred out if there was a loss. Finance Director Roland stated the part that goes to the general fund is for administrative fees. The loss was due to the transfer of the old liquor store building to the EDA. The transfer was monies at the liquor store and transferred to the general fund. Councilmember May asked about total other services and charges. Staff replied electric, gas, municipal services, professional services, credit card fees, travel, training, advertising, IT costs, etc. Councilmember May noted there was a lot of comparison of average sales per customer, but when it came to labor there is a comment that we pay both Council Minutes (Regular) February 17,2009 Page 8 full time and part time significantly higher than surrounding municipalities. Staff noted this is due to the liquor staff being union personnel and it is part of their contract. Our rates are $3/hour more than surrounding communities. Mayor Larson noted profits from the liquor store do stay in the community. Councilmember Wilson asked if we accept checks. Staff replied we do and we use Telecheck. The funds are cleared immediately. Councilmember Wilson asked if we rD all customers. Staff replied they do and due to staff retention they know the customers. Staff also scans licenses. Councilmember Wilson asked if there was a correlation between the economy and liquor sales. Staff will be attending a conference next week and this information will be reviewed. Councilmember Wilson asked if there was responsible consumption information available. Staff noted the reason Cities have municipal control over liquor is to keep it out of the hands of the youth and those who are already over served. c) Draft 2008 Financial Report - Finance Council received preliminary numbers for 2008. The final financial report will be available in June. In May 2008 the budget was adjusted to cut revenues and expenditures of $350,000. In December 2008 the Governor unallotted the second half of the market value homestead credit that was due to the City. This is property taxes that the City levies, the County collects, and the State pays to Cities. It is part ofthe actual tax levy. The City did not receive $173,000. In December there was a lot of snow, and expenditures for snow plowing amounted to $100,000. This combination caused the City to show a deficit of$150,000 in operations for 2008. We were under revenues by $70,000 and over on expenditures by $90,000. The general fund showed revenues of $8.8 million and expenditures of $8.97 million. Councilmember May noted the handout on homestead credit says Cities do not budget for it. Finance Director Roland stated Cities budget for the levy and this is part of the levy. Council member May stated the handout reads the reimbursement makes up part of the City's levy; Cities do not budget for it. It is specifically talking about the reimbursement portion. Finance Director Roland stated it is not a separate line item and we have never looked at it as a reimbursement from the State. The Council levies property taxes against properties in the City. The State has determined that when we levy we should not consider the portion that they will give us back out of that as part of our levy. City Administrator Herlofsky stated as a result of the State's action, up to now we have included it in our general fund operations. In the future, it will be a separate amount in a capital account. It will not be included in the general fund. Finance Director Roland noted if we separate it that is $350,000 we do not have as revenue in the general fund which we have to make up. Council Minutes (Regular) February 17,2009 Page 9 Councilmember Wilson pointed out this is an aid given to a City as long as we fully levy the amount including the homestead market value credit. So in the absence of it, it is a loss only of an aid that has been given to communities. Finance Director Roland explained the special revenue funds. The Rambling River Center had revenues before transfer of $36,493, expenditures were $159,378, resulting after a transfer of$100,000 from the general fund in a loss of $22,885. The swimming pool had revenues of $63,497, and expenditures of $149,148. After a transfer of $50,000 from liquor operations, the loss to the pool was $35,651. The arena had revenues of$270,686 and expenditures of$351,371. There were no transfers of revenues to this fund, so there was a loss of$80,685. Half of this is due to a capital outlay for the compressors. Regarding enterprise funds, the sewer fund had revenues of $1.7 million, expenses of $1.2 million, and an increase to net assets of $452,900 before depreciation. Expenses include the transfers out to the general fund and to debt service. The solid waste fund had revenues of $1. 9 million, expenses of $1. 9 million, resulting in a decrease to net assets of $51 ,946. Expenses include a cost of $207,000 for the purchase of a new truck. The storm water utility fund had revenues of $441 ,000 and expenses of $550,000. This is a decrease of net assets of$109,000. Expenses including transfers out of$61,000 to the general fund and debt service of$16,000. The water fund had revenues of $1.78 million and expenses of $1.83 million, resulting in a decrease of net assets of $47,395 before depreciation. Expenses include $893,000 that the Water Board has spent replacing water meters and water meter heads in every home in Farmington. Final numbers will be brought to Council the first meeting in June. d) 2009 Financial Options - Finance Farmington will not be receiving $350,000 in market value homestead credit for 2009. There are several options to increase revenue streams. Options include franchise fees on electric and gas. Cities grant franchises to electric and gas companies which means these companies can utilize the City's right-of-way. In turn, we are able to collect a fee from those utilities. We currently do not collect a fee from gas or electric companies. That fee is normally passed through to the customer on the monthly bill. It is an additional source of revenue to the City. If we collect a franchise fee, it should be from both companies. The other option is a street light utility. In 2008 the City spent $175,000 on street lights to keep them lit and maintained. This utility would also be charged to non-profits such as churches, schools, those tax-exempt entities who do not pay property taxes but benefit from the street lights. In order to begin to collect these revenue streams in 2009, it would need to start as soon as possible. City Administrator Herlofsky stated for 2008,2009, and 2010 we are losing $900,000 in revenue. Our options are to reduce expenditures and add to revenues. Adding to revenues is a better long-range plan. Staff is proposing to start July 1,2009, for the remainder of 2009 and all of2010. We need $350,000 - $400,000 additional revenue per year. Council Minutes (Regular) February 17,2009 Page 10 Councilmember Wilson asked about the funding mechanism for schools and churches. Finance Director Roland stated they are reviewing funding mechanisms. It could be handled per residential equivalent unit. As far as the street light utility, the City would not be making money, just covering the cost of street lights. There are about 6,000 utility accounts in the City. Councilmember Wilson would like to see the breakdown of the street light utility, but as far as the franchise fees he would not support passing a tax onto residents. Councilmember Donnelly stated if we do not enhance revenues by $350,000, what do we cut. City Administrator Herlofsky stated it would be very difficult. It would result in adjustment to personnel numbers. Currently we do not have any vacancies and no one is planning on resigning. What Council decides, gives staff some indication on what to do. Councilmember May asked if the gas or electric company keeps a portion of the franchise fee. Finance Director Roland stated the franchise language says they are not allowed to keep a percentage. Councilmember May stated it is difficult to analyze with no numbers what it would add to a bill. Staff replied it depends on how the City would choose to word it in the franchise agreement. One City charges one half of one percent of the gross receipts of the company in their community. Ifthe bill is $100 the charge would be .50. The other type of charge is a per meter or per account fee. The per meter fee is a flat fee. Councilmember May would like to see this presented as a combination of cost cutting and revenue generating. She was concerned with the tax-exempt entities as their budgets are tight. Councilmember Wilson will only look at expenditure decreases. Councilmember Donnelly would like to see a combination of cost cutting and additional revenues. Mayor Larson asked staff to explore the options and come back with close to accurate numbers. Councilmember May felt the utility option was a better option. She asked staff to see if there was an option where tax-exempt properties do not have to pay until 20 I 0 so they could budget for it. Finance Director Roland cautioned the State encourages Cities to be equitable. We would need to do this with everyone. Staff will check with other Cities on tax-exempt properties. Council reached a consensus for staff to research this further and to include cost cutting. e) YMCA Proposal- Administration The Y has presented two proposals; one for summer programs and one for pool operations. It costs the City $75,000 per year to operate the pool. This is a way for the Y to create an identity in the City and relieves the department of a considerable management item in the summer. Staff asked for Council approval to proceed with this. Staff is not interested in having the Y operate the pool at more expense than we are currently having. City Administrator Herlofsky would like to have them operate the pool if their costs are no more than what ours are. Council Minutes (Regular) February 17,2009 Page 11 He would like to proceed with negotiations with the Y as it needs to be resolved within 30 days. Councilmember Wilson supports the idea. He agreed to not have losses exceed the current cost. City Administrator Herlofsky stated both sides will be keeping a close eye on expenditures. The Y would like to do this over a couple years. Hopefully, their expertise can help us operate the pool at a better advantage. Councilmember May noted the proposal says the City and Community Ed would market the other programs. She asked if the Y markets the programs as well. City Administrator Herlofsky stated if we participate, we are looking at them participating in our brochure. Weare trying to not have duplication of services, but to compliment each other. The Y would be providing programs for ages 10- 13 which would fill in a gap. This would be a way to continue programs and possibly expand programs. Councilmember May asked if we would supply the certified pool operator. Parks and Recreation Director Distad stated we have two facility maintenance staff that are certified as pool operators. Councilmember May felt the item under operating loss needs a lot of work because the Y wants us to guarantee their number. City Administrator Herlofsky stated we will come back with a firm number. Councilmember May felt there should be a cap for the loss for the pool. City Administrator Herlofsky stated we will make sure we do not pay more than previously and that they do not subsidize our operation. Councilmember May felt this should be based on an actual number not a past number. City Administrator Herlofsky stated the presence of the Y is a positive addition to the community. If Council does not want this, they need to tell staff. As far as summer programs, Community Ed, Parks and Recreation and the Y all agreed the Summer Uproar and Summer Extreme programs would be a welcome addition from the Y. When it came to summer sports and camps there was still discussion as to who should do what. Mayor Larson stated he does not want to cause a divide in the community. That is one concern he has with the Y being in the community. It would have some benefits, but there are also negative parts. He suggested Council authorize staff to work out the best proposal possible and bring it back to Council. Staff will bring this back in 30-45 days. 11. UNFINISHED BUSINESS a) Old City Hall Improvement Project Update - Administration At the February 2, 2009 Council meeting, Council postponed the decision to approve the old City Hall improvement project. Staff has compiled additional information. The funding scenario has been revised by solidifying the tax levy amount to $105,000. The cell tower lease agreement will provide $75,000 and the rest would be through fund raising. Examples of fund raising events were included, along with a list of volunteers and past activities and rentals. Staff provided information on how to address the current condition of the Rambling Council Minutes (Regular) February 17,2009 Page 12 River Center building by obtaining a proposal from a consultant to look at the building structurally to see if it is sound. Mayor Larson asked if our Building Official could do that. Parks and Recreation Director Distad noted they need to have a structural engineer to determine if it is structurally sound, the foundation, the walls and issues with mold. Staff would obtain a proposal from Bonestroo on what the cost would be. Mayor Larson asked if it had to be from Bonestroo and suggested getting two or three proposals. City Administrator Herlofsky explained Bonestroo has done some structural work previously so there should be minimal effort to accomplish this. Mayor Larson still requested two proposals. Staff noted there will be space available for the food shelf. Councilmember May asked about the amount per home for a $105,000 tax levy. This would be a $2.50 increase for a $200,000 home. This does not include operating costs, only capital costs. For the additional $40,000 to run the facility we would need to levy for that as well. Councilmember May asked if we could include that in the budget so we would levy for the building costs only and not operating costs. She suggested covering operating costs with revenue generated from fees. City Administrator Herlofsky noted it would mean an increase in fees. Councilmember May was very pleased with the detail in the fund raising plan. Mayor Larson noted Empire and Castle Rock Townships pay $250 each per year. He suggested increasing that amount or have a non-resident fee. He definitely wanted to look at increasing membership fees. Councilmember Wilson had a concern with mold in the old building. He has been asked why we did not incorporate the conversion of the old City Hall into the construction of the new City Hall. City Administrator Herlofsky stated that was not allowed because of the bond structure. Staff will provide a written response. Councilmember Wilson noted if we are looking at $105,000 and it costs around $5/year, why don't we get this money in all at once. Staff had tried to spread it out over five years so the residents would not be hit all at once. City Administrator Herlofsky noted we will be getting the money at one time through some internal borrowing. Councilmember Wilson was concerned with the mold and felt we were looking at a structurally deficient building. Councilmember May asked why the seniors could not use the new City Hall if there is immediate concern with the current senior center. Staff noted they need separated space because of the different activities going on at the same time. 12. NEW BUSINESS b) City Administrator Review Update -Administration Council agreed with the 360 review format. City Administrator Herlofsky will have the City Attorney contact ICMA to obtain the materials. Council Minutes (Regular) February 17,2009 Page 13 13. COUNCIL ROUNDTABLE a) Council/Parks and Recreation Commission Workshop - Parks and Recreation The Parks and Recreation Commission would like to meet with the Council to discuss several items. The workshop was set for April 13, 2009. Councilmember May: Thanked staff for including information on conferences they are attending. She thanked the Fire Department Relief Association for sharing in the cost of the mobile data terminals. City Administrator Herlofsky: The Census Bureau would like to do census training for 20 people for 4 days and has requested the fees be waived amounting to $1800. It would be local people trained and it would provide some jobs. Council agreed to waive the fees. Mayor Larson: Reminded everyone of the wine tasting on February 19 at the Eagle's Club. He encouraged residents to attend the Warrior to Citizen Oral History Exhibit. He asked that the schedule be placed on the web site and cable TV. 14. ADJOURN MOTION by Wilson, second by May to adjourn at 9:53 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~/Y7~ Cynthia Muller Executive Assistant