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Home My WebLink About08-08-11 WSMinutes Lakeville City Council Work Session August 8, 2011 In attendance: Mayor Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Counci I Member Colleen LaBeau Staff: Steve Mielke, City Administrator Dennis Feller, Finance Director Chris Petree, Director of Operations and Maintenance Michael Meyer, Fire Chief Danny Barth, IT Manager Zach Johnson, Assistant City Engineer Cindi Joosten, Human Resources Manager Judi Hawkins, Deputy City Clerk The meeting was called to order at 6:00 pm. ITEM #1 — Continue review of the Preliminary Budget. Finance Director Dennis Feller explained that for budget discussion purposes the budget document will be discussed in two parts; the second part will be discussed at the August 22n Work Session. Department directors will be available during the discussions to answer any questions from Council. Discussions regarding the 2012 Preliminary Budget began at the July 25, 2011 Council Work Session. Preliminary approval of the budget is scheduled for September 6, 2011. The amount approved in December can be less but not more than the preliminary amount. Work sessions, public open houses and a presentation to the Chamber will take place during September, October, and November. Final consideration of the budget by the Council will be scheduled for December 5, 2011. Finance: There is a $46,000 increase from the 2011 budget, most of which is due to the proposal for the department's two part-time positions to be authorized to go full time effective January 1S'. Council Member Swecker asked Dennis if he was still comfortable with the personnel levels due to the anticipated Finance Committee workload. Mr. Feller feels confident that the proposed staffing levels will be adequate. Information Systems: IT Manager Danny Barth explained the initial start-up costs for moving to virtual desktops. This has been moved from 2011 to 2012 in the 5 -year Capital Improvement Fund in order to continue to research options. Council members have shown an interest in going to paperless packets. This option has been discussed in the past and a City Council Work Session Minutes August 8, 2011 Page -2- variety of options are available. Wireless internet would be necessary and it would be preferable if all Council members used the same hardware. Danny will check with a few vendors to see if they would be willing to offer equipment on a trial basis. Under Capital Outlay, Microsoft and GIS upgrades are scheduled for 2012. Fire Department: A budget of $44,804 in 2012 and 2013 shows no change from 2011. Fire Relief is asking for a 3% increase in benefit levels. Mayor Bellows would like to see a comparison of compensation levels to other cities' fire departments. The budget also provides for training 10 rookies in 2012. Firefighters are requesting Class A uniforms which consist of a long- sleeved white shirt and tie to wear to formal functions, such as funerals. Council asked what type of uniforms are provided by other cities and asked for a price breakdown. Chief Meyer stated that more area departments are going to an hourly pay rate for fire- fighters rather than pay - per -call. It is estimated that this would increase City costs by about 15 %. Chief Meyer feels the firefighters would prefer a higher pension over increased pay for call -outs, if given the choice. There has not been a significant amount of interest from additional cities for a partnership in the ABLE facility. A feasibility report for a fifth fire station is proposed for 2014. Streets: Due to a recent accident along Kenrick Avenue residents are requesting a speed study, lowering of the posted speed limit, and additional speed limit signage. The speed study will be funded by MnDOT. One streets maintenance worker will be added in 2012 with the first full year in 2013. Replacement of equipment has gone from a 10 -year schedule to a 12 -year schedule. Capital Outlay Equipment to be paid for with Liquor funds are two dump trucks, Cat 950 loader, and the asphalt truck. In 2013 one dump truck replacement will also be paid for with Liquor funds. Council Member LaBeau asked about the grader replacement in the Equipment Fund budget in 2013 and if that was necessary, given the small amount of gravel roads in the city. Council members requested a cost comparison and the pros and cons of new and used equipment purchase. Mr. Petree stated that the grader is a very important piece of equipment for snow removal and the only piece that will work in some instances. A federal military site will be monitored for possible opportunities to purchase equipment at reduced prices. Council Member LaBeau asked about the purchase of a velocity patcher. Mr. Petree feels it is more efficient and economical for the City to own a regular patching machine and contract out the velocity patching. Mr. Feller discussed the five upcoming projects that will be paid for by Municipal State Aid (MSA) funds. There will not be any tax money used for these construction projects. Mr. City Council Work Session Minutes August 8, 2011 Page -3- Feller provided a handout with revised 5 -year street reconstruction estimates. Finance options were presented. Option A: 10 -year amortization; Option B: 5 -year amortization; Option C: pay as you go tax levy. Street reconstruction debt is exempt from levy limits. Council members agreed that due to favorable interest rates a 10 -year financing option would be favorable as it would ensure fixed payoff rates. Dakota County is recommending replacement and reconfiguration of the signals at Dodd Blvd. and CSAH 50. Council agreed that it is important to add this re- signaling and re- striping project to the 2012 budget. Under Enterprise Funds Mr. Feller stated that there is no rate increase proposed for water and sewer rates, however anticipated street light charges by the utility companies will need to be passed along to residents. A study of estimated future water usage will need to be conducted as a result of several factors including population growth and the aging water treatment facility. Per capita water usage has declined in the last several years due to water conservation efforts. This has helped to reduce the need for a second water treatment facility and additional wells. Mr. Petree stated that there are currently 16 operational wells and three that have been permanently closed. Council Member LaBeau asked what constituted "other" in the General Government category for each of the departments. This includes sale of water meters, penalties, and interest on investments. Staff will provide that information to the Council. Mayor Bellows asked about employee training. Employees can take advantage of some webinars and local conferences that are offered; however there is currently no lodging or travel expense for employees to attend conferences or seminars. Debt service: Council member LaBeau requested a copy of the City's bonds, repayment schedule, and interest rates. Mr. Feller referred Council to page 109 of the budget and will also provide a copy. Mr. Feller provided a handout titled, "How Changes to MVHC Program Will Affect Cities" which described the differences between the existing system of market value homestead credit and the new homestead market value exclusion for qualifying homes. The MVHC impact will be greater in outstate Minnesota cities which have not already begun to make the transition away from dependence on MVHC. The next budget work session is scheduled for August 22n d . The 2012 Preliminary Budget and preliminary tax levy are scheduled for adoption on September 6` Mr. Feller reminded Council that what they approve that night will be the maximum levy that can be adopted. Council Member Swecker asked about the park playground replacement schedule. Staff will provide a list for council discussion. Options are also still being analyzed for the Electrical Inspector position. City Council Work Session Minutes August 8, 2011 Page -4- A possible community survey was discussed. Mayor Bellows stated that the Chamber is planning to survey some area businesses and it would be redundant for the City to conduct a similar survey. Other Council members would prefer a broader based survey which would encompass additional businesses which are not Chamber members. Several items remain to be discussed at the August 22 " work session. ITEM #2 — Other business. Based on interviews for Finance Committee members conducted by Council the week of August V, a slate of appointees has been determined. Council members directed staff to prepare a resolution which would appoint the following candidates: three -year terms expiring March 31, 2014: Doug Anderson, Craig Manson, and Chris Hoins; two -year terms expiring March 31, 2013: Ben Coons and Darrel Mullenbach; one -year terms expiring March 31, 2012: Scott Einck and John Tuschner; Alternate — one -year term expiring March 31, 2012: Tim Peterson. ITEM #3 — Adjourn The meeting adjourned at 8:50 pm. Respectfully submitted, a,d�' ""�' "-") - Jud awkins De y Clerk -11� _?file" Mark Bellows Mayor