Loading...
HomeMy WebLinkAbout12.03.90 Council Minutes MINUTES COUNCIL MEETING REGULAR. DECEMBER 3, 1990 1. Mayor Kuchera called the meeting to order at 7:00 P.M. Members Present: Kuchera, Mayer, McKnight, Sprute, Galler. Members Absent: None. Also Present: Administrator Thompson, Attorney Grannis. 2. MOTION by Sprute, second by Mayer to approve the agenda with the following changes: a. Remove item lOb - City Assessment Policy; b. Remove item 10c - Administrator's Evaluation; c. Add Commendation for Jerome and Mary Stoffel. APIF, MOTION CARRIED. 3. Mayor Kuchera opened a public hearing at 7:00 P.M. to consider the proposed 1991 Operating Budget and payable 1991 Tax Levy. The hearing was continued until later in the meeting. 4. Mayor Kuchera presented a commendation to Jerome and Mary Stoffel for services provided to the community relating to the operation of the Jerome Akin site weather station. 5. MOTION by Galler, second by McKnight to approve the minutes of the November 19, 1990 regular meeting. VOTING FOR: Mayer, McKnight, Kuchera, Galler. AGAINST: None. ABSTAIN: Sprute. MOTION CARRIED. 6. Mayor Kuchera reopened the public hearing to consider the 1991 Budget. Finance Director Henneke presented an overview of the budget noting tax comparisons from 1984 to 1991, City share of property taxes, trend on a selected homestead property - 1984-1990, breakdown of the levy, makeup of the budget, and trends in intergovernmental revenue. Mr. Henneke also reviewed the recommended Council changes as noted in his November 30 and December 3, 1990 memos. The following testimony was heard. There has been a significant growth in the tax levy over the past several years. Most of that is attributable to City growth, inflation and reduction in Federal/State aids. Gil Gilbertson: The notice sent out does not reflect the school referendum levy. Also, your examples do not show business properties, which are higher. How does the HRA figure into the budget? Wayne Henneke: The City charges the HRA for overhead costs which are reflected in the City's non-tax revenues. The City does not levy a tax to operate the HRA and does not have direct control over the finances. Henry Iwerks: Wayne Henneke: Gil Gilbertson: How much money is in the HRA's account? I'm not sure. I can check on it. Does the HRA have to obtain any approval from the Council? Only to sell bonds or amend the TIF plan. Wayne Henneke: Gil Gilbertson: Adm. Thompson: Minutes - Council - 12/3/90 - Page 2 Gil Gilbertson: If the HRA was not using the TIF funds, that money would be used to reduce taxes. Wayne Henneke: Yes. Pat Akin: Due to the changing relationship between the State and City, the City Council has to be careful in implementing its budget. State and Federal taxes are going up and it appears the City is the last line of defense. Staff recommends the budget but the Council has to remember it has the final say. It is the Council's budget. The Council should take a hard look at the 5 year CIP and stick to it. Henry Iwerks: I hope the City does not go "hog wild" with TIF financing like some cities have done. The Council should be careful to examine each project. Pat Akin: The Council should monitor per capita spending and its debt levy ratio. Gil Gilbertson: I'm concerned that Farmington is not rece1v1ng its share of County dollars. Councilmember-elect Orr referenced this during his "Meet the Candidates" speech. Leon Orr: I'll continue to work on this. Henry Iwerks: Adm. Thompson: Henry Iwerks: Councilmember Sprute: It seems the County share of the taxes is increasing at the fastest rate. County Commissioner salaries have gone up. Was the budget hearing recorded last year? No. Do you intend to adopt the budget tonight? That is my intention. Mayor Kuchera: Henry Iwerks: I want to make sure my position is clear because I have been misquoted by reporters in the past. I have gone to six meetings recently which were poorly attended. I feel there is something wrong when people don't want to participate. I have tried to get people to attend, but they say the Board won't listen, the Board will embarrass them, or the only reason they have hearings is because the law requires them. You should give serious con- sideration to why this is happening. At the County meetings concerns were expressed regarding the economy and the number of layoffs, yet government, especially the County, goes right on spending. The County is considering a facility with $70,000 worth of trees and shrubs. I was surprised when a school board member stated the reason there is little participation is because people are satisfied. I don't believe that's the case. I realize it's easy to criticize; people want more services and less taxes. I did attend the budget meeting last year, and one area I noted which should be reviewed is the City's insurance. I feel that if it were put out on bids the City could save some money. The Council owes it to the tax payers to put it out on bids. Henry Iwerks: We looked into it and most insurance companies don't offer coverage. I would suggest you set up a committee to review the matter. I feel that if bid fairly, the City would receive lower Mayor Kuchera: premiums. Adm. Thompson: My major concern is that in 1986 the insurance industry abandoned Minnesota cities and the cities were forced to self insure through the LMCIT. Now that there is money to be made in Minnesota, the insurance companies now want City business. I wouldn't want to repeat what Minutes - Council - 12/3/90 - Page 3 happened in 1986 and the LMCIT not accept the City because it left when times were good. The City absolutely cannot operate without insurance. Brian Lundquist: 90% of Minnesota cities insure through the LMCIT. There must be a reason. Henry Iwerks: I am not opposed to the LMCIT, but merely stating it should be proven the City is getting the best deal by bidding it. Are there extra services in the budget? Mostly the same. Keep in mind when you set the levy that I'm tapped. Will the insurance be put out on bids? I don't think tonight is the time to make the decision. It is an item which deserves lengthy discussion. I would suggest Mike Sibley: Mayor Kuchera: Mike Sibley: Henry Iwerks: Wayne Henneke: a work session. Henry Iwerks: Mayor Kuchera: I repeat the question, will it be put out on bids? We don't have any idea what it would cost to do the study. Pat Akin: There is an old adage "If it ain't broke, don't fix it". The City has always received excellent service from First National. I recall the experiences of the City during the insurance crisis. Mayor Kuchera: If there is money to be saved, I am in favor of looking into it. Councilmember Galler: I don't have any problem with reviewing it. Brian Lundquist: Is Mr. Iwerks also as concerned about other professional services, such as legal and accounting? Henry Iwerks: I am concerned about all services and expenses. Mayor Kuchera: The Finance Director and Administrator will look into it. Councilmember Mayer: I would have to see a dramatic reduction in premiums to switch carriers. Henry Iwerks: Last year the Council voted to reduce insurance premiums $2,000 without explanation. That doesn't seem prudent. How did it drop $2,000? Adm. Thompson: I don't recall the circumstances, but I'm sure it would not have been done without a reason. Brian Lundquist: I recall the City switched its liquor liability insurance, which reduced premiums. What are the Mayor and Councilmembers paid? $250.00 per month. Henry Iwerks: Wayne Henneke: Henry Iwerks: Adm. Thompson: How are expenses paid? There is a policy for expense reimbursement, but I do not recall any present members on the Council requesting reim- bursement for expenses. Henry Iwerks: Adm. Thompson: Henry Iwerks: Does any member receive more for expenses? No. Who sets the Council salary? Council Minutes - 12/3/90 - Page 4 Dave Grannis: The Council, but salaries can only be set before a general election and take effect January 1st after the election. Councilmember Sprute: What has this got to do with the budget? Henry Iwerks: I just want to know how the salaries relate to the budget. Do committee members receive compensation? Adm. Thompson: HRA, Planning and PARAC receive $10 per meeting, plus expenses. Some special committees are given an expense account. Henry Iwerks: When I served on the Solid Waste Advisory Task Force we were given $2,000 for expenses to tour facilities, yet a number of private citizens, including myself, previously toured facilities at our own ~pense. Adm. Thompson: The City did not want to restrict the committee to only members who could afford to tour facilities. Pat Akin: I would like to make the following comments: 1. Dustcoating should be assessed. 2. Get out of solid waste. 3. I also do not have an answer as to why these hearings are poorly attended. 4. How is the Southeast Area Storm Sewer going to be financed? Adm. Thompson: The trunk will be paid by the storm sewer utility and possibly assess the lateral benefits. Councilmember Galler: I do not have an answer as to why these types of meetings are poorly attended. Mike Sibley: 5% are active and 95% just do not want to participate. Mayor Kuchera: I take exception to the comment that the Council does not listen. We always hear people out. Henry Iwerks: I agree you listen. Councilmember Sprute: Were these people referring to the City Council? Henry Iwerks: No. Councilmember Sprute: I don't know what the City can do to improve. In 1983, we started "Citizens Comments" on the agenda where anyone can come in without an appointment on the agenda. We have been very open and cordial to the citizens. MOTION by Sprute, second by McKnight to close the hearing. APIF, MOTION CARRIED. 7. A lengthy discussion followed regarding the assessment of dustcoating and seal- coating. Due to a lack of consensus, it was agreed that dustcoating and sealcoating would be left in the budget and the decision regarding assessment would be left to the next Council. Discussion followed regarding City vehicles. It was agreed to leave the vehicles in the budget until a policy is adopted. It was the consensus to change the freezer in the swimming pool CIP to a wading pool filter. The Council recessed at 9:40 P.M. 8. The Council reconvened at 9:50 P.M. Mayor Kuchera asked the audience if they felt the City was providing good services. Don Scott stated his experience with City staff had been very good. Henry Iwerks stated that he agreed services were good, with the exception of one or two employees. Mayor Kuchera stated he was pleased with City staff. MOTION by McKnight, second by Galler to adopt RESOLUTION NO. R89-90 approving the 1991 Budget and certifying taxes payable as follows: Council Minutes - Regular - 12/3/90 - Page 5 General Special Debt Total $ 1,106,385.00 8,620.00 289,089.00 $ 1,314,094.00 VOTING, FOR: Kuchera, Galler, Mayer, McKnight. AGAINST: None. ABSTAIN: Sprute. MOTION CARRIED. 9. MOTION by Sprute, second by Mayer to adopt RESOLUTION NO. R90-90 accepting $461.00 in EMS funding from Dakota County and authorizing the purchase of a Hurst manifold for $535.00 ($74.00 from Fire Maintenanance). APIF, MOTION CARRIED. 10. MOTION by Kuchera, second by Sprute to adopt RESOLUTION NO. R9L-90 approving submittal of an application for a gambling license by the VFW. APIF, MOTION CARRIED. 11. MOTION by Sprute, second by Galler to adopt RESOLUTION NO. R92-90 approving the revised specifications for the Fire Department Quick Response Unit and ordering the Advertisement for Bids to be opened on January 15, 1991 at 2:00 P.M. APIF, MOTION CARRIED. 12. The Council next considered the proposed 1991 Dakota County Legislative position. MOTION by Mayer, second by Sprute to approve the following positions: County State Aid, Drug Enforcement, HAZMAT, Solid Waste, and Land Use Planning. APIF, MOTION CARRIED . 13. MOTION by Sprute, second by Mayer to leave the "No Truck" signs on Walnut Street for safety reasons. APIF, MOTION CARRIED. 14. MOTION by McKnight, second by Sprute to approve the following Off Sale Beer Licenses: Tom Thumb Store Tom Thumb Food Market Budget Mart Budget Mart 420 Elm Street 22280 Chippendale 705 8th Street 18266 Pilot Knob Road APIF, MOTION CARRIED. 15. MOTION by Kuchera, second by Sprute to approve the Farmington Lanes gaming license. APIF, MOTION CARRIED. 16. The Council next considered the proposed request for sewer rehabilitation work as outlined in the Public Works Director's memo dated December 3, 1990. Discussion followed regarding the request. Councilmember Sprute stated that the program was very beneficial and encouraged Councilmembers to review the televising. MOTION by Sprute, second by Kuchera to approve the request as proposed. APIF, MOTION CARRIED. 17. It was the consensus of the Council to table the claim by Ratzlaff Construction until the claim is substantiated. 18. The Council agreed not to remove the soft maple on the south side of Walnut Street between 2nd and 3rd Street. 19. MOTION by Galler, second by McKnight to approve the consent agenda as follows: a. Approve Capital Outlay Request - Fire Department - ladders - $1,438.00. Council Minutes - 12/3/90 - Page 6 Capital Outlay Request - Administration - Light Table - $225.00. Pay Estimate No. 4 - 89-3 - Rice Lake Contracting - $22,049.00. Pay Estimate No.2 - 87-7 - Richard Knutson, Inc. - $105,838.93. Pay Estimate No.2 - 90-6 - C.G. Construction - $3,057.29. Pay Estimate No. 2 - 90-3 - Arcon Construction - $28,392.63. a School/Conference Request - Engineering - Autocadd. payment of the bills as submitted. APIF, MOTION CARRIED. b. Approve c. Approve d. Approve e. Approve f. Approve g. Approve h. Approve 20. The following items were discussed during roundtable: a. Upcoming compensation meetings - December 11th, 13th and 19th. b. Administrator's Evaluation - turn in forms. 21. MOTION by Galler, second by Sprute to adjourn at 10:30 P.M. APIF, MOTION CARRIED. Respectfully submitted, /7~ Larry Thompson City Administrator Approved