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HomeMy WebLinkAbout05.18.09 Council Minutes ~ COUNCIL MINUTES REGULAR May 18,2009 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, Fogarty, May, Wilson None Andrea Poehler, City Attorney; Peter Herlofsky, City Administrator; Robin Roland, Finance Director; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Lisa Shadick, Administrative Services Director Kara Hildreth, David McKnight, David Pritzlaff, Charlie Weber, Steve Fenlon 4. APPRO VE A GENDA Councilmember Wilson pulled item 7j) Approve 2009 Administrative Services Agreement-FSA and HRA for separate vote. City Administrator Herlofsky noted an adjustment will be made to the May 4, 2009 Council minutes. MOTION by Fogarty, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Fogarty, second by Wilson to approve the Consent Agenda as follows: a) Approved Council Minutes (5/4/09 Regular) (5/11/09 Special) b) Approved 2009 Mowing Contract - Natural Resources c) Approved Metro WaterShed Partners Funding - Natural Resources d) Adopted RESOLUTION R21-09 Accepting Donations Rambling River Center- Parks and Recreation e) Approved Request to Waive Fees Farmer's Market - Administration f) Approved Bonestroo Contract Amendment - Engineering g) Approved Appointment Recommendation Fire Officers - Human Resources h) Approved Appointment Recommendation Fire Officers - Human Resources i) Acknowledged Retirement Fire Department - Human Resources Council Minutes (Regular) May 18, 2009 Page 2 k) Approved Natural Resources Inventory and Management Plan Services Proposal- Planning I) Approved Appointment Recommendation Fire Officer - Human Resources m) Approved Appointment Recommendation Fire Officer - Human Resources n) Received Information April 2009 Financial Report - Finance 0) Approved Bills APIF, MOTION CARRIED. j) MOTION by Fogarty, second by May to approve the 2009 Administrative Services Agreement-FSA and HRA. Voting for: Larson, Donnelly, Fogarty, May. Abstain: Wilson. MOTION CARRIED. 8. PUBLIC HEARINGS a) Approve Issuance of Bonds - St. Francis Health Services - Finance St. Francis Health Services owns the Trinity Care Center, 3410 213th Street. The bonds would refinance existing debt which was used to construct and equip this property. The bonds would not exceed $3,750,000. The City is not responsible for any of the payments. The City is only a conduit for St. Francis to issue the debt. St. Francis, as a not for profit organization, does not have the authority to issue tax-exempt debt. Mr. Steve Fenlon, Midwest Healthcare Capital, was present to answer questions. MOTION by Fogarty, second by Wilson to close the public hearing. APIF, MOTION CARRIED. MOTION by Fogarty, second by Donnelly to adopt RESOLUTION R22-09 giving preliminary approval to the project under Minnesota Statutes Sections 469.152 through 469.165. APIF, MOTION CARRIED. b) Approve Therapeutic Massage License for Debbie Odegard - Administration Ms. Debbi Odegard has applied for a Therapeutic Massage license to practice at Rite Touch Salon and Tan, 923 8th Street. MOTION by Wilson, second by May to close the public hearing. APIF, MOTION CARRIED. MOTION by Fogarty, second b6' May to approve a Therapeutic Massage license for Debbie Odegard at 923 8t Street. APIF, MOTION CARRIED. c) Approve Therapeutic Massage License for Cassandra Hatten - Administration Ms. Cassandra Hatten has applied for a Therapeutic Massage license to practice at Healthpro Chiropractic, 19685 Pilot Knob Road. MOTION by Fogarty, second by Wilson to close the public hearing. APIF, MOTION CARRIED. MOTION by Wilson, second by Fogarty to approve a Therapeutic Massage license for Cassandra Hatten at 19685 Pilot Knob Road. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT a) 2009 Trunk Utility Project - Engineering There were ten bids received for this project. The low bid was from Nodland Construction for $1,359,795.80. The estimate was $2.1 million. Funds will come from the sanitary, storm and water funds. City Administrator Herlofsky noted the Council Minutes (Regular) May 18, 2009 Page 3 low bid is due to City Engineer Schorzman pushing to have projects bid earlier in the season. MOTION by Wilson, second by May to adopt RESOLUTION R23- 09 accepting the base bid of Nodi and Construction Company, Inc. in the amount of$1,359,795.80 and awarding the project. Voting for: Donnelly, Fogarty, May, Wilson. Abstain: Larson. MOTION CARRIED. 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Approve Agreements to Rambling River Center Construction Project- Parks and Recreation Quotes for the HV AC system for the multi-purpose room have been received. The estimate was $30,000, and the low quote was $20,350. A quote for painting the ceiling in that area was received for $2,892. As part of the fund raising effort, 10,000 letters will be sent throughout the school district asking people to donate to this project. The budget for the project is $265,000 and there is $185,000 left in the budget. The above items are not included. Councilmember Wilson asked that photos of the progress be placed on the website to generate some interest. He suggested donations could be taken for pavers or a plaque, etc. Staff noted a plaque listing donors will be displayed in the building. Staff has also discussed having naming rights for some of the rooms, working with the Legion for a breakfast fund raiser, working with the VFW for a steak fry, etc. The goal for fund raising is $90,000. MOTION by Fogarty, second by Wilson to approve the Agreement with Farmington Plumbing and Heating for the removal and replacement of the HV AC system and the Agreement with Bernie's Painting to paint the ceiling in the multipurpose room. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS a) Approve City Administrator Employment Agreement - Council The Council completed the City Administrator's review prior to this meeting. No changes have been noted in the contract. Councilmember May felt it was a good review process. Many residents have been laid off or had hours cut, including City staff. She felt we must show respect for the taxpayers while at the same time showing respect for those who work for the City to make this a fine community in which to live. She believed City Administrator Herlofsky was doing the job he was hired to do, but also felt he has a fair compensation package as is. While we would all like to get a raise or more time off, it is not prudent now. We have a difficult budget cycle ahead. She could not approve the increases to the salary and additional time off. Councilmember Fogarty stated City Administrator Herlofsky is doing a fantastic job. The budget has been tough this year. He did not get a raise on May 1, 2009, and he has no problems with that. She was disappointed that people would make judgments about the future economy when it is not here. City Administrator Herlofsky was part of the suggestion and part of the solution of reducing hours. He took that reduction along with the rest of staff and the reduction in pay. She had no reason to believe he would not do the same in the future should it be Council Minutes (Regular) May 18, 2009 Page 4 needed. She would not withhold approving a contract based on something that may happen in 2010. Councilmember Wilson thanked Council for their efforts to complete the 360 review. While on the Council, he has approved many contracts within the 2% - 3% range for increases. He noted the City Administrator is not looking for a raise in 2009, but we have had reductions in the form of hours being cut and that has affected everyone. He appreciated the City Administrator following suit. In 2010,2011, and 2012 this contract would propose to increase $5,000 per year which is approximately 4% per year. That would be higher than we would give to any other group in the City. He felt the raise should be consistent with others. He appreciated the work City Administrator Herlofsky is doing, but felt the terms are outside of what the market looks like right now. Therefore, he will vote against the contract. Councilmember Donnelly would like to look at this contract as a way to show some continuity in Farmington and put a better face on the City as a whole. We would show people we are going in a good direction and will continue in that direction rather than re-start and try another option. There is a salary increase, but as we go through the budget process if we have to come up with some cuts for the other employees, the City Administrator would be one of those. The other employee groups have received raises. The review was very good and his performance was good. As a way to show continuity throughout the area, we want to stabilize things and move in a positive direction. Councilmember Fogarty noted regarding the increases, City Administrator Herlofsky is not being given a 4% increase per year. The logic behind the numbers is he is willing to take no increase for 2009. We still assumed an increase in the base salary and building on that. What we built in the outer years is less than 3% which makes it less than what any other employees are being compensated for. Just because he is not taking the pay increase, did not mean he did not deserve to have it built on in out years. The logic was to keep him at a lower percentage increase than the rest of the staff in the City. Mayor Larson stated he wanted to have the review before approving the contract. It was a good review with more positives than negatives. He stated the City Administrator will forego his raises just as any other City employee if it comes to that. When talking to other City officials and organizations, they all say continuity is important in Farmington. We finally have some stability other groups can work with. Mayor Larson stated that is important to him. He does not agree with the extra personal days and the raises seem a little high, but what City Administrator Herlofsky brings to Farmington that people do not see is a positive for the City. It is important to move forward in a positive light. He will approve the contract. Council Minutes (Regular) May 18, 2009 Page 5 Mr. David Pritzlaff, 20255 Akin Road, noted he was on the Council when Mr. Herlofsky was hired. He suggested looking at a one year contract and doing a contract every year rather than for three years. That perspective does not tie Council's hands from one year to the next. If one party wants out of the contract, there are not so many years to payout. Approving a contract with no raise this year and 4% next year, you are tying your hands. He suggested a one year contract and renew it every May. Regarding the extra sick day per month, multiplying that out with the salaries for the next three years sick time comes to $70,000. It seems a large amount to pay someone to not work. He asked if this time can be carried over to each year and cash it out in the second or third year with the salary increases. The sick time he has used is very minimal and Mr. Pritzlaff did not see why he needed another day per month. Mr. Pritzlaff stated City Administrator Herlofsky does do a good job, but on the other hand the City is doing him a favor. This is his last five years and sets him up for a good retirement through PERA. He is doing the City a favor by doing a good job and we are doing him a favor by setting him up. Giving the increases and the extra sick time looks like the City is giving a lot. Councilmember Fogarty stated Mr. Herlofsky does not get sick time. It is personal time off; a comprehensive package. He is limited in what he can carry over and this has been in the contract since the beginning. It is inappropriate for a former Councilmember or resident to speculate on when Mr. Herlofsky will or will not retire. He has made no formal announcement of his intentions and it is not for us to judge. Nor is it a factor we are allowed to take in, nor should we take in when negotiating contracts. Councilmember May noted comments are being made about continuity. In her working world, pay is a small factor of employment. She was getting the sense that unless there is an increase he may not want to stay. These are hard economic times. We have one of the highest foreclosure rates and talking about an increase is a slap in the face. She did not know how we will sit down at budget time when we are approving increases. She has not heard of other cities doing this. She was baffled with separating the review out from the pay issue. Councilmember May felt strongly about the increases. She did have it noted to do a one year contract instead of three years as a compromise and revisit it next year. Councilmember Wilson noted the LMC has a sample contract. There are many of the same components, but it does have a portion regarding Council providing a greater compensation each year, but no guarantees. He asked if there were other standards of contracts looked at or if the only intent was a modification of the existing contract. Councilmember Fogarty stated they did do a comparison of City Administrator salaries and found Mr. Herlofsky to be right in the middle. With no changes it would very quickly put him behind the average for this size a community and for the responsibilities he carries. Councilmember Donnelly stated this contract is the same as before except for the salary, the annual leave, and phone allowance. He noted a superintendent's contract has an end date and Council Minutes (Regular) May 18, 2009 Page 6 this contract does not. City Attorney Poehler stated it is not uncommon to not have an end date because it has a provision on behalf of the City Administrator and on behalf of Council. The contract can be terminated for any reason. The presumption is he will continue employment until either party decides they are unhappy with the situation. Councilmember Donnelly wanted to have continuity and not have to go over this each year. There will still be a review each year. Councilmember Wilson stated he appreciated Mr. Herlofsky's service and he does a nice job. The component of the LMC contract is not an end date to a contract. It gives Council the flexibility to do the annual review, ifhe does a good job, then he gets x amount of increase. His only concern with the contract is the rubber stamp of guaranteed numbers for three consecutive years. The salaries need to be reflective of where we are in 2009. In 2010 the economy may be different. Councilmember Fogarty noted very few jobs serve at the political whim of the electorate and the Council. This is very standard for this type of position because of the volatility. She understood it was not common in other fields, but in this field it is. It is common for the review not to be associated with the contract for that very reason. She does not want to go through this every year. If the economy gets better, Mr. Herlofsky could become very expensive for us to keep. This also protects the City and ensures he will be here for a certain price tag. Councilmember May noted the average Joe does sit down with their boss every year and he says yes or no to a raise. Most of us have heard sorry no money this year, but work more hours and work hard. MOTION by Fogarty, second by Donnelly to approve the Employment Agreement for the City Administrator. Voting for: Larson, Donnelly, Fogarty. Voting against: May, Wilson. MOTION CARRIED. 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Congratulated Anna's Banana's on their new facility. The children grow up around the building and her staff is very welcoming. It is attracting residents from Lakeville and Apple Valley. Council had discussed a goal setting retreat. She would like to find a date, time, and location. It is important for Council to set some good solid goals before staff gets far into a budget process. It will be difficult for them to meet our expectations out of a budget, if Council cannot tell them what our expectations are. Right now we are five voices with very different expectations and goals. We need to come up with some continuity and that is up to Council to do. For six years we have not been able to layout our goals and plans and tell staff to give us the options to meet our goals through the budget process. She did Council Minutes (Regular) May 18, 2009 Page 7 not want public input, however they are welcome to listen. She wanted Council talking to each other. Councilmember Wilson: He attended the ribbon cutting for Healthpro Chiropractic. They had some good comments regarding the proximity of their home to the business location and they had received some good feedback from staff on market information. Hats off to staff and they should continue to be helpful to potential business prospects. Councilmember Donnelly: He also attended the ribbon cutting at Anna's Banana's and she made some nice comments about Farmington and how daycare parents help each other out. He agreed with the goal setting retreat and asked that it be in a neutral setting. He felt an outside facilitator would be good to sort things out. Councilmember Fogarty also agreed with getting a facilitator and choosing a site off campus. City Administrator Herlofsky: On May 26, 2009, all of the Yellow Ribbon signs should be up on TH3, and on Pilot Knob and CSAH50. Annette Kuyper has arranged for a photograph of the Yellow Ribbon committee and Councilmembers at 6:00 p.m. at Pilot Knob and 180th Street. Staff met with the school district today, and Sunday, September 20,2009, at 2:00 p.m. is the scheduled time for the dedication of the new high school. While at the ribbon cutting for Anna's Banana's, he was told people ask questions about Farmington when they move in. Staff has arranged to have City and school district information available at the daycare. Mayor Larson: At the meetings with the school district, they discuss ways the City and the school can get together to share ideas and share costs. 14. ADJOURN MOTION by Fogarty, second by Wilson to adjourn at 8:00 p.m. APIF, MOTION CARRIED. Respectfully submitted, ~/77~ Cynthia Muller Executive Assistant