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HomeMy WebLinkAbout2008-09-11 - Council MinutesCITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 CALL TO ORDER AND ROLL CALL Call to order The Corcoran City Council met on August 28, 2008, at City Hall in Corcoran, Roll Call Minnesota. Present were Mayor Guenthner, Councilor Jacobs, Councilor Hudok and Councilor Thomas. Also present were Interim City Administrator Bodem, Police Chief Gormley, Public Works Superintendent Meister, Corporal John Hamilton and City Engineer Rhien. Councilor Grabowski had an excused absence. Mayor Guenthner called the meeting to order at 7:00 p.m. followed by the Pledge of Allegiance. 3. AGENDA APPROVAL MOTION made by Thomas, seconded by Hudok to approve the agenda with the following changes: Move 11b. Resolution 2008 -37 — Planning Commission Liaison Report to 10b. on the Consent Agenda. Move 11c. Memo 1000 Friends selection process to 7c. Community Growth Option Grant "Planner" Interview Process. Voting Aye: Guenthner, Hudok, Jacobs, and Thomas (Motion carried 4:0) 4. OPEN FORUM No open forum items 5. PRESENTATIONS Susan Blood from the Northwest Hennepin Human Services Council came to provide an update and their desire for a funding request which is on the agenda later. Ms. Blood explained to Council that the residents are the catalyst for collaborative endeavors through the ongoing role of research, planning and coordination of regional service provider network. Their staff members also provide technical assistance and training opportunities to build the capacity of local organizations, administer emergency services funds and homeless prevention programs, identify service gabs and provide information demonstrating what services are needed in the Northwest area. Programs such as Tobacco -Free Youth include Hmong youth from Corcoran in youth leadership activities learning about health. A new program, Southeast Asians Living Chemically free, will include working with the Hmong community in Corcoran for the next 4 years to develop community support for addressing chemical health issues in culturally relevant ways. They are asking the City of Corcoran to budget $2,464 for which this amount has been budgeted with no increase from the last 3 years. Their financial request will be addressed later on in the meeting. Pledge of Allegiance Agenda Approval Open Forum Presentations Page -1- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 6. PLANNING No planning items. 7. UNFINISHED BUSINESS 7a. Resolution 2008 -36 — Set Preliminary 2009 Levy and Review Budget Proposal Interim City Administrator Bodem provided a "new" formatted proposed 2009 budget and levy. Bodem expressed that the levy must be passed tonight and sent to the county by September 15, 2008. Staff found some computing errors that have been corrected. Mayor Guenthner stated that staff should orderly walk through the process. Bodem indicated that there were no back fed data in the first quarter of 2008 inputted into the Banyon accounting system. With these new changes there are some challenges comparing to the new format. Staff expressed and Council concurred that in changing the look of the budget it demonstrates an improved break -out of the categories. For example, utility bills, telephone, bullets and pencils use to be lumped together in operating supplies. Staff felt this difficult to code properly and it did not allow for accurate forecasting and proper budgeting. Staff said that in separating these code items will be better defined. With any change there will be some "hick ups" so staff fully expect there will be some budgeting issues in comparing historical information to the new changed categories. As time moves forward the city should have reliable budgeting information. Mayor Guenthner said this is an improvement. Director of Public Works Meister provided council with his departmental budget proposal. He highlighted to council the expenditure line items. A significant portion of the departmental increase is due to cost of living and step increase adjustments. City staff has cut back in some categories discussed from the Interim Administrator Memo to Council. Meister asked council that the existing part time seasonal worker be upgraded to an average of 30 ours per week year around. This person will assume the cleaning and maintenance of building facilities, summer seasonal work at the park, city hall ground maintenance, minor road repair, along with additional snow removal. This currently is being paid out to higher wage scale employee than the temporary seasonal part -time employees. Vacations, comp - time and miscellaneous time off has put this department in a slight bind being short staffed through out the year. In hiring this person, the city is not obligated to same expense of a full time employee for benefits. Meister also is proposing a $10,000 increase in dust control from the 2008 budget due to cost of petroleum/chloride at $60,000 pass through from tax payers. Meister also expressed the need to increase the Asphalt/Maintenance patching line item by $10,000 due to associated rising cost of materials. Seal coating allows for 2 miles while asphalt allows for 1 '/z miles. This is keeping up with the existing roads. The same is true for motor fuels. There was also some discussion about the Shannon Lane Bridge needing replacement at an estimated cost of $60,000. Council asked staff to do some checking on how to fmance for the improvement and come back with some financial options i.e., bonding solutions etc. This item is currently not being proposed as 2009 expenditure in the budget. Councilor Thomas stated that maybe there should be a program replacement from dust control to paving. Council discussed the need to discuss a bonding proposal for paving roads on some roads and set up an assessment policy to develop a scope of a bond and could possibly do this below the public hearing process. Comparing the long term cost of paving versus gravel and magnesium chloride. Under the Administrative and City Hall budget, the City Council line item shows no change Planning Unfinished Business Page -2- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 accepts a question was raised about what triggers Medicare, FICA etc. Under the newsletter, the budget proposal is for 3 news letters and additional mailing cost but showing a decrease. There was not a substantial increase in the website expenditure except for $100 for the hosting cost increase. Under the City Administrator item it was felt his/her pay is within the range. Under the City Clerk category the main increase is proposed due to cost of living increases and a request to increase the 20 hour receptionist to 30 hours and no benefits. The increase is approximately $17,000 from this year. There will be a decrease in the election category due to the fact there will not be an election. The Auditor Assessor category is showing a minor increase from last year. From the legal side, a proposal of $45,000 was recommended for civil and $32,000 for criminal. City staff decided to shift the decrease from 2008 civil legal expenditure showing $68,000 less the $45,000 and the difference to go to the public works department. Under Planning, there is not change. No change for insurance. Slight change in dues and memberships. A question was raised about the operating expenses in how it was all lumped together and stated the need for better break out. In Planning, staff needs to show monies for Comp Plan. Staff is showing revenue but none on the expense side. No change in engineering proposed. The recycling is a pass through item and there is no change. Between the 4 fire departments, there is a 3.7% increase. Under building inspection, we expensed it out similar to 2008. Council mentioned the need to define this number more. The City Council needs staff to provide them with corrected Performance -To -Date numbers before they can better define the budget. Because of the change there are fluctuating percentages next to the budgeting codes — instead focus on the end totals and percentages. When one considers all of the categories along with the equipment certificate, facility bonding, "pass through items" and law enforcement personal service /uniform exemptions Corcoran is looking at a total expenditure budget increase of just over 5 percent from last year. The City is still within the Department of Revenue 3.9% imposed general fund levy limits. Bodem mentioned that Corcoran provide services in many areas. Common expenses across all categories of expenditures include salaries and other employment costs, equipment, supplies, materials, maintenance, repairs, training, and fuel cost. The City needs to give certain types of common expenses special consideration when planning this budget. Salaries, benefits, pension obligations, fees, dues, insurance costs and tax costs all influence the cost for Corcoran across categories of expenditures. The following explanations of items in these expense areas provide guidelines for their budget implications. • Employment Cost – Corcoran must budget for wages, benefits and workers' compensation costs of elected official and city employees. Corcoran also must budget for health insurance, retirement - related costs, such as Social Security, Medicare and PERA. • Wages and Benefits – For hired city staff, we have used the most recent full year for which they have actual salary data and adjust the amounts to anticipate changes in wages. Adjustment factors we used include pay equity, market wage rates, and cost -of- living increases (3% factor), employment contracts etc. • Professional Services - The budget must consider the cost of all professional service and contract employees i.e., assessor, auditors, attorneys and other city officials. In some areas, there are no budget increase with professional services while only slight increase with assessor, recycling and the like. Page -3- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 • Debt Services – We also have outstanding equipment certificate debt obligations that must provide funds outside the general fund levy limits to cover principal and interest payments. The city approved an additional debt service payment in 2009 with the 2008A equipment certificate. However, in March of 2009, the 2004A bond will be paid off and no special levy need in 2010. • Fuel Costs are also an inevitable factor going into this budget. Common Increases by percentage PERA Police/Fire Increase: 12.9% to 14.1% PERA city portion: 6.5% to 6.75% Health Insurance: estimated 6% Workers Compensation: 10% Liability Insurance 3% Property Insurance 3% On the revenues side, overall staff estimated only a slight increase of intergovernmental revenues and fees. There was a $30,000 estimated dip on building permit fees proposed. It was mentioned by Council to review the overall revenue from the various fee categories and suggested that staff may be over stating the income. There were some questions about the revenues for copies as being too low compared to years prior. It was explained that part of this may be due to the drop off from the Chamber when they rented. Another question was raised about the escrow administrator fees —is the fees to be charged back to the escrow? There may be an increase but should be a charge through. On the City's investment interest earning category, more thought should be made in defining those revenues, It was noted there is not crop rental income showing. Council decided that a revised hard copy budget to actual document should be sent to Council once the Clerk reconciles the accounts with new format so that council can have accurate numbers in order feel confident in approving the actual 2009 budget. Council recognizes from the information provided they are confident to approve the preliminary 2009 levy knowing they have a couple months to adjust and refine the budget as Banyan gets reconciled so data is accurately presented to Council for the ultimate final levy approval on December 11, 2008. MOTION made by Hudok, seconded by Jacobs to approve Resolution No. 2008- 36 adopting preliminary proposed tax levy 2008, collectible in 2009 as follows: General Property Tax $2,330,962 Equipment Certificate Debt 2004A $ 89,500 Equipment Certificate Debt 2006A $ 86,383 Equipment Certificate Debt 2008A $ 41,096 Facility Expansion Debt $ 41,108 For a Total Levy of $2,589,049 Voting Aye: Guenthner, Hudok, Jacobs, and Thomas (Motion carried 4:0) 7b. Fit for City Council Member Jacob discussed that near the end of the August 28th City Council meeting, the Mayor raised the term "fit" with regard to the screening of applicants to be Page -4- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 hired by the City. Without going into mention of the person or persons he applied the term to, Jacobs felt this is a term that needs further discussion by Council. It was thought that in public positions everything should be brought out into the open. Mayor Guenthner referred to the term "fit" by describing one of the candidates would not be a good fit because the person worked in a large organization with high level of managerial and technical skills would have been a challenge coming into Corcoran. Mayor Guenthner stated that the interview committee will be meeting on September 18th. 7c. Community Growth Option Grant "Planner" Interview Process" The City Council decided to set up interviews with the three planning firms selected by 1000 Friends for September 25th at 7:10, 7:40 and 8:10 p.m. It was the consensus of the Council to not have standard questions but have them give a presentation and allow for Q & A. A memo was also provided by the Interim City Administrator about how 1000 Friends selected the pre - approved firms. 8. NEW BUSINESS 8.a. Authorize Preliminary Survey for 111 Utility Extension City Engineer Rhien provided some background for the need to have Council authorize to perform a preliminary survey. Now that the agreement with Medina to extend sewer and water utililities along TH 55 to the Corcoran Business Park is essentially complete, it is appropriate to consider the next steps in the development of the project. The first activity needed towards the preparation of the detailed construction documents (plans and specifications) is the performance to a detailed topographic survey of the corridor along which the utilities will be installed. The survey will record the location of all physical features and the elevation of the existing ground. The information is necessary to finalize the alignments for the utilities as well as to set the elevations at which they will be installed. The information will also be used to identify the easements required for the project. The preliminary survey would be preformed by a Bonestroo survey crew, under the existing professional services agreement with the City. The cost for the survey would be on an hourly basis at the current rates per the agreement, based on the actual time needed to prepare for and perform the survey. Based on the project, our estimate for the cost of the survey would be in the range of $27,500 to $32,500. Financing for the survey would come from the developer, United Properties, as part of the project costs. No work would be preformed on the survey until the City had secured the financing from United Properties. United Properties is currently working with the City to finalize the Development Contract for the Corcoran Business Park. The preliminary survey would not typically be performed until the contract had been completed and all associated financial requirements had been met. However, that process could potentially take as long as four to six weeks. It is better to perform the preliminary survey in good weather conditions, so the information can be recorded more accurately and efficiently. If the survey is delayed until late October or early November, the greater threat of poor weather, including snow, could reduce the accuracy of the information and cause the survey work to take more time, resulting in higher cost. For this reason, the preliminary survey work is being brought to the City Council for consideration at this time, New Business Page -5- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 rather than waiting until after the Development Contract is executed. MOTION made by Hudok, seconded by Thomas with respect to recommendation to authorize Bonestroo to perform the preliminary survey for the Trunk Highway 55 Utility Extension project, contingent upon the City receiving financing from United Properties for the work in the estimated range of $27,500 to $32,500. Voting Aye: Guenthner, Hudok, Jacobs, and Thomas (Motion carried 4:0) 8b. NW Hennepin Human Services Council Request MOTION made by Thomas, seconded by Hudok to authorize budgeting $2464.00 to the NW Hennepin Human Services Council recognizing this is already in the dues and membership line item of the budget. Voting Aye: Guenthner, Hudok, Jacobs, and Thomas (Motion carried 4:0) 8c. Corcoran Memorial Garden — Final Approval from Parks and Trails. Chad Robrand and Trish Krueger presented a proposal to the Council regarding the Corcoran Memorial Garden project from the Parks and Trails Committee. The project started from the idea in memory of important individuals and contributions made from residents in Corcoran. A representative from Lawn King was present demonstrating the general layout of the plantings and design ideas. A presentation illustrating the landscaping, gazebo and trails behind the government center was provided. The project request is to be financed from various revenue sources to include donations, sale of memorial bricks and from the Parks dedication fund. MOTION made by Thomas, seconded by Hudok to authorize up to $57,860.00 to be used for the construction of Memorial Garden Project. Hudok thanked the group for putting together a good presentation and doing an excellent job with this project proposal. Voting Aye: Guenthner, Hudok, Jacobs, and Thomas (Motion carried 4:0) 9. CLAIMS AS PRESENTED It was suggested that the city engineer get together with the business park group related information to ensure proper allocation. Further discussion ensued about Escrow Claims (Fund 500) that the claims could be passed contingent upon recoding from city stair ensuring escrow accounts are coded properly between the escrow and general operating funds as it relates to our consultant fees i.e., city engineer, city planner and city attorney. There was some more discussion about the Danita property escrow and that it gets accounted for accordingly. It was also noted that Gartner Engineering should provide timely invoices. There were no questions about the other claims so Council entertained the following motion: Claims as presented Page -6- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 9a. Escrow Claims (Fund 500), 9b. Building Inspection Claims, 9c. AU Other Claims as Presented MOTION made by Thomas, seconded by Jacobs to approve all claims subject to recoding. Voting Aye: Thomas, Hudok, Jacobs, and Guenthner. (Motion carried 4:0) 10. CONSENT AGENDA MOTION made by Thomas, seconded by Hudok approving Resolution 2008 -37 — Comprehensive Land Use Plan Update Subcommittee. Voting Aye: Thomas, Hudok, Jacobs, and Guenthner. (Motion carried 4:0) 10a. City Council Minutes Change under page 3 of the Sue Vergin grievance that the vote was 3 to 2 in favor with Guenthner and Thomas voting against. On page 2 please remove the measurement table out. On the audit area of the minutes talk about the accumulated charges of infrastructure i.e., coop agreement should be explained. On the Maple Hill Park Inspection on the top of page 6, it was suggested we take out sentence number 3 about the training. On the bottom of page 6, a Motion was made to approve the August 14th City Council minutes not the 281 so amend accordingly MOTION made by Thomas, seconded by Jacobs to approve August 28, 2008 Council Minutes with the modification. Voting Aye: Thomas, Hudok, Jacobs, and Guenthner. (Motion carried 4:0) 11. COUNCIL AND STAFF REPORTS 11a. Mayor Guenthner was the Liaison the September 4th Planning Commission and there was some discussion about the Sub Committees that they govern the meeting with staff support when called upon. The Mayor said they have excellent representation and understand the ropes so they will handle the meetings. There was some discussion about the history and moving forward of trail mapping of trail easements. It was determined that the Planning Commission and Parks and Trails Commission shall create an understood procedure. The Commission considered a conditional use permit for a riding stable on Strehler Road. Some discussion about Ag buildings and accessory buildings and use standards. There was some discussion about Mary Bechtold's application. There was some additional discussion about the 60 day rule and at what point can a city control the application completeness. Part of the problem is that we rely on 3`d party's to get the information in on time. Consent Agenda Council and Staff Reports Page -7- CITY OF CORCORAN CITY COUNCIL MEETING September 11, 2008 11 b. MEMO —1000 Friends Selection of Planner Process Update Interim City Administrator provided a memo about process by which 1000 Friends selected the 3 planners to work on the behalf of the city's receiving the grants. 12. UNSCHEDULED ITEMS No unscheduled items 13. ADJOURNMENT MOTION made by Hudok, seconded by Thomas to adjourn. Voting Aye: Guenthner, Jacobs, Hudok, and Thomas (Motion carried 4:0) I Kim Bachmeier, City Clerk Treasurer Unscheduled Items Adjournment Page -8-