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2011-07-19 City Council minutesMendota Heights City Council CITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Regular Meeting Held Tuesday, July 19, 2011 July 19, 2011 Page 1 Pursuant to due call and notice thereof, the regular meeting of the City Council, City of Mendota Heights, Minnesota was held at 7:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Krebsbach called the meeting to order at 7:00 p.m. The following members were present: Councilmembers Duggan, Povolny, Petschel and Vitelli. PLEDGE OF ALLEGIANCE Council, the audience, and staff recited the Pledge of Allegiance. AGENDA ADOPTION Mayor Krebsbach presented the agenda for adoption noting the addition of Item O to the Consent Agenda. Councilmember Duggan moved adoption of the agenda as revised. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 APPROVAL OF MINUTES Mayor Krebsbach suggested one correction to the minutes. Councilmember Duggan moved approval of the minutes of the regular meeting held on July 5, 2011. Councilmember Povolny seconded the motion. Ayes: 5 Nays: 0 CONSENT CALENDAR Mayor Krebsbach presented the consent calendar and explained the procedure for discussion and approval. Councilmember Duggan moved approval of the consent calendar as presented and authorization for execution of any necessary documents contained therein; pulling items C Adopt a "RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF GIFTS FOR THE ANNUAL 5K RUN /WALK" and G Approve a Sign Permit for 750 Main Street #113 (Mainstream Boutique) a. Acknowledgement of June 2011 Fire Department Report b. Acknowledgement of the June Treasurers Report c. Adopt a "RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF GIFTS FOR THE ANNUAL 5K RUN /WALK" Mendota Heights City Council July 19, 2011 Page 2 d. Adopt a "RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF THE GIFT OF WEIGHT ROOM EQUIPMENT FROM JOSEPH SPAR" e. Adopt a "RESOLUTION ACCEPTING WORK AND APPROVING FINAL PAYMENT FOR 2010 STREET RECONSTRUCTION AND REHABILITATION PROJECT (JOB 200910)" f. Approve the Sale of the Police Reserve Vehicle to Cheyka Motors g. Approve a Sign Permit for 750 Main Street #113 (Mainstream Boutique) h. Approve a Sign Permit for 1345 Mendota Heights Road (Brown College) i. Approve Front Office Upgrades in the Police Department j. Approve a Temporary On -Sale Liquor License for the Church of St. Peter on October 2, 2011 k. Approve the Hiring of a Seasonal Staff Replacement 1. Accept the Resignation of City Administrator David McKnight effective Wednesday, August 17, 2011 m. Approve the Contractors List n. Approve the Claims List o. Approve Hiring of Tamara Schutta effective Thursday, July 21, 2011 Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 ADOPT A "RESOLUTION FORMALLY ACKNOWLEDGING THE RECEIPT OF GIFTS FOR THE ANNUAL 5K RUN /WALK Councilmember Duggan requested the names of donors supporting city events such as the annual 5K run/walk acknowledged by being displayed at City Hall. Staff indicated they would follow up on Councilmember Duggan's request. Councilmember Duggan moved Adoption of a "Resolution Formally Acknowledging the Receipt of Gifts for the 5k Run/Walk" Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 'APPROVE A SIGN PERMIT FOR 750 MAIN STREET #113 (MAINSTREAM BOUTIQUE) Mr. Ross Fefercorn of The Village shared some background on their new tenant, Mainstream Boutique. He also shared a photo showing the typical size and placement of their store sign and their logo, which meets all of the sign criteria of The Village. Councilmember Petschel asked if the boutique would be open every day. Mr. Fefercorn replied that it would be open at least six days a week. There were many positive comments made in regards to The Village and their tenants. It was agreed it is a place where a person could spend a very enjoyable day. Councilmember Duggan moved to approve the Sign Permit for 750 Main Street #113 (Mainstream Boutique). Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 PUBLIC COMMENTS A) FARMERS MARKET Ms. Ann Ulrich, co -owner of Mendoberri Cafe & Wine Bar in The Village, gave an update on the progress of the plans for a farmers market. A number of volunteers were identified for the steering Mendota Heights City Council July 19, 2011 Page 3 committee, which was formed specifically to determine the needs to get it off of the ground. The committee members have been very proactive and engaged. Ms. Ulrich confirmed no firm decisions have been made but preliminary conclusions have been reached on what might work and what some of the needs are: 1) Best day to hold the farmers market — Thursday or Friday in the late afternoon or early evening for three to three and a half hours 2) When to start — the earliest possible date would be after Labor Day 3) Working closely with the Highland Park Business Association, who have a very successful farmers market, to assist in navigating through the process and identifying lessons they have learned 4) Conducted a preliminary site assessment at The Village to ascertain the best location 5) Garnering commitments from other tenants of The Village 6) Insurance requirements 7) Number of vendors allowable Ms.Ulrich explained the committee is seeking advice and guidance from the council. For the next steps to occur which is lining up vendors and lining up requirements for vendors, they need to pinpoint a location to determine the size requirements. Mayor Krebsbach commended the committee on all of the work they have accomplished. She asked City Attorney Tami Diehm what the process would be going forward. City Attorney Diehm replied that the next step would be to have the committee come in and meet with staff and initiate a formal conditional use permit application and process so that it would come before the planning commission and the council. Mayor Krebsbach commented that this would need to come before the council in August if they are to have the farmers market open in September, and they would certainly want input from the police in terms of closing off a street. Councilmember Duggan commented that he liked the Market Square area for location for the placement of the tents, emphasizing on the parking spots, not on the grass. However, he would not support closing off the main street or any part of it, particularly with the students in school. He suggested a sheltered closed area; giving a patio or plaza feel to the area. Councilmember Povolny commented that the area looks good but asked if most farmers market vendors set up a tent and a table, but also sell out of the back of their trucks. He suggested the committee consider the fact that, if set up as suggested, the vendors may not want to carry their items in and out of there. Ms. Ulrich replied that the parking spots are 20 feet in length and the tents are 10 feet so, theoretically, the vendors could park the truck in first and set the tent up behind. This would still allow plenty of room for pedestrians if the street were blocked off. Mayor Krebsbach commented that if the trucks were parked the way mentioned, then the views of the stores in The Village would be blocked. This is something that should be closely reviewed. She did agree with Councilmember Duggan and would not want anything to trample the park -like area or damage the plantings. Mayor Krebsbach asked if there was a councilmember who wanted to work on this or should they leave it to staff. Councilmember Duggan replied that he would be happy to work with them. Mendota Heights City Council July 19, 2011 Page 4 - Councilmember Vitelli expressed his appreciation of the effort Ms. Ulrich has put into this. He fully supports the idea and will support it completely if she comes forward with agreements from the retailers, The Village owner, the fire chief, and the police chief. PRESENTATIONS A) DAKOTA COMMUNICATIONS CENTER UPDATE Ms. Diane Lind, Executive Director gave a brief update on the Dakota Communications Center. The DCC is the 911 center dispatching police, fire, and emergency medical services. They also do some after -hours emergency notifications for public works. In 2010 the DCC received approximately 330,000 telephone calls, 55 percent via 911 and 45 percent via the 10 -digit alternate number. This information is important because there have been several discussions about whether or not the 911 or the 10 -digit alternative numbers are being advertised enough. They do continue to encourage all of their citizens to call 911 because they can use the technology associated to process their calls more effectively and efficiently. A 911 call from a landline comes in with three pieces of information: name, address, and telephone number. This information then does not need to be re -keyed into the computerized dispatch system. If a call comes in on the 10 -digit line or cell phone, then the operator has to ask for and key in that information manually. In 2010, 62 percent of the 911 calls received were via cellular phone or Voice Over the Internet Protocol (VoIP). In the first six months of 2011 alone, that percentage rate has increased to 65 percent. Street 1 addresses are not provided when a cell phone is used. The latitude and longitude is received and mapped via a master street address guide. It is plotted on a map that gives a street and the two nearest cross streets. The other thing a cell phones does not give is an altitude so if a caller is in a multi - storied building, the floor level will be unknown. The operator then has to ask for the address and then verify that information. If the caller cannot answer or does not know the address, responders are sent to the nearest location and then are guided by landmarks. It was pointed out by Councilmember Petschel that with the lack of a specific street address and a 911 caller who cannot respond, emergency services are almost forced to go door -to -door looking for the specific area where they are needed. It is important for families with young children and the elderly to have a landline in their home. Ms. Lind stated that, when they do public education, especially with parents, it is requested that they put a card with their address and other important information on the inside of their front door, near the phone, and on the refrigerators; and to remind their babysitters and their caregivers of where this information is. The information itself can be forgotten when in a high stress situation. The DCC also looks at their pick -up time. The acceptable standard is 90 percent of 911 calls be picked up in 10 seconds and 95 percent of calls be picked up in 20 seconds. DCC not only met those standards but also put a challenge out to the dispatchers to pick up 80 percent of the calls in seven seconds or less. Seven seconds in the landline world equates to one telephone ring. The DCC dispatchers have remained between 86 percent and 90 percent for over the past two years. There were over 306,000 computer aided dispatch calls, of which 2.6 percent or 7,883 calls were generated in Mendota Heights, Lilydale, Mendota Heights City Council July 19, 2011 Page 5 and Mendota combined, police and fire. The percentage in January through June of this year has remained constant. Mayor Krebsbach requested the individual figures for police and fire for Mendota Heights, Lilydale, and Mendota and just fire for Sunfish Lake. Ms. Lind said she would send that information. Ms. Lind continued, by giving the breakdown on a regular basis of law enforcement versus fire calls. 93.8 percent of all calls received at the DCC result in a law enforcement response, with 6.2 percent resulting in a fire /EMS response. The Mendota Heights police department had 2.7 percent of law enforcement calls and 1.1 percent of the fire department calls. That trend is holding in 2011. 2010 processing times for law enforcement Priority Zero and Priority One calls averaged 99 seconds; structure fires averaged 70 seconds (the standard is 75 seconds), and echo medicals (most serious) averaged 89 seconds. Ms. Lind shared 911 success stories and various awards received by the DCC dispatchers for going above and beyond their regular duties. In 2010, the Mendota Heights fire department had two inquiries or one percent of the calls. Inquiries are any time a citizen, a fire fighter, or police officer calls and questions or comments on a service. The two instances were used as training moments for the dispatchers. For the law enforcement, there were ten inquiries, four of which were compliments. There have been three inquiries year -to -date out of 7,883 calls. All inquiry calls are reviewed individually and the officer called back who made the concern. They also send all of the inquiries back to the police and fire departments so they can look at them. Those that are of significant concern or they see a trend starting, are brought to the operations committees for review and input into the training programs. Ms. Lind listed the projects coming up in 2011 and 2012. The first is a new computer -aided dispatch system. Another project, in partnership with Dakota County Radio Services, is narrow banding for the outdoor warning sirens and for fire paging, which the FCC is requiring to be completed by January 1, 2013. Also in partnership with Dakota County Radio Services is an eleventh pager site, which is on hold at the moment until the narrow banding is finished. Dollars have been set aside for that just in case it is needed as a result of the narrow banding. Mayor Krebsbach asked if the valleys in the Mendota Heights area affect the dispatchers when people call from their cell phones. Ms. Lind replied that if an area has spotty cell phone coverage then it is possible that a caller will not get a signal when trying to call 911. If the DCC becomes aware of a low spot they can work with the Metropolitan Emergency Services Board to let the cell phone companies know where some of those low spots are. Mayor Krebsbach requested that this topic be put on an agenda for conversation int6mally because there are known gaps. Councilmember Duggan asked Ms. Lind to explain Code Red. Ms. Lind replied that code red is a community notification. The DCC can take a 911 database, people can self register, and they are able to send out messages to the community based on either a specific group of individuals, or a geographic area. They can ping or send a message to all those phones that are in the database in that area to announce an emergency situation or information that they need to get to citizens. It has been used in Dakota County for things like lost children, in Hampton to evacuate the city during the anhydrous spill, Mendota Heights City Council July 19, 2011 Page 6 and it was used in one city to notify a neighborhood that a fleeing suspect discarded a loaded handgun in a school area and asked all of the neighbors to go out and check their property. These notifications are done at the request *of either the firefighters or police departments. A citizen can also register if they have children in the area, elderly parents, or an address that they are concerned about. B) 2010 CITY AUDIT PRESENTATION Finance Director Kristen Schabacker explained the 2010 audit was completed in mid -June and introduced Mr. Matt Mayer of Kern DeWenter Viere. KDV is the city's auditing firm. Mr. Mayer explained that the councilmembers have already received the audited financial statements of the city and the management letter, which provides charts and graphs on the audit findings. Mr. Mayer gave a brief explanation of KDVs role as an auditor. It is the responsibility of the city to prepare financial statements to ensure that the dollars coming in and the dollars going out are appropriately tracked and that the city has an understanding of their financial position at year end. The office of the state auditor requires all cities to have an annual audit done either through them or through a private firm. KDV comes in at year end and test, examine, and give an opinion on the financial statements the city has prepared. Mr. Mayer explained this year, as in years past, KDV provided an unqualified or clean opinion on the city's financial statements. This is the best rating they can give. The financial statements are materially accurate, they are a :true picture of the city's financial position, they are a true record of the financial transactions for the year, and the city can use them as a true basis to make financial and operating decisions going forward. KDV is also required by the state auditor to do a compliance audit. That is testing the city on seven different areas of state statute as it applies to local government. KDV had no issues with the compliance during the year and offered a clean or unqualified opinion. 2010 general fund budget Revenue: $6.1 million Expenditures: $6.3 million Transfers from other funds: $160,000 Decline in the fund balance of $22,000 — a relatively minor one with a $6 million budget Actual results Revenue: $6.3 million Property taxes collections came in higher than the budgeted amount and miscellaneous revenue came in better than anticipated, as a result there was an overage on the revenue side. Expenditures: $350,000 under budget Savings in the public works, parks, and code enforcement departments, and general administration and finance Total fund balance increased, the city improved its financial position in the general fund by approximately $450,000 and ended the year with a fund balance of approximately $6 million. Mendota Heights City Council July 19, 2011 Page 7 Revenue stream Revenue in 2010 was three percent higher than in 2009 Increase was related to the tax and assessment collections, which were approximately $200,000 higher. All other categories were relatively flat. Revenue sources 80 percent taxes and assessments versus 78 percent in 2009 20 percent related to :licenses and permits, intergovernmental revenue, charges for services, versus 22 percent in 2009 It was noted here that when malting budgeting decisions, most of that burden is going to be absorbed through the property tax levy — so as the levy goes, so goes the budget. Expenditures for 2010 actually went down approximately $200,000 or 4 percent from 2009. There were savings across the board. Public safety was the only category that went up in expenditures and part of that was a reclassification of contributions to the fire relief association. Expenditures 53 percent public safety 20 percent general government 27 percent public works The last couple of years, the general fund represented about 90 percent of the year's worth of spending, in 2010 that is up to 101 percent, which is a combination of an increase in fund balance and lowering of expenditures to $5.9 million in 2010, which are below even the 2008 spending levels in the general fund. Again, indicating that the city is keeping an eye on the spending side of the budget. When looking at the property tax dollars, there have been some relatively steady increases but relatively flat in relation to some of the other numbers. The property tax rate has gone down for several years in a row, but now a combination of the increases in the levy and the declining market values has created an up tick in the property tax rate and it is up to the same rate as 2006 of just over 28 percent. The statewide average for property tax rates for cities across the state are in the mid to high 30 percent. So Mendota Heights is still well below the state average. Mr. Mayer also reviewed the enterprise funds, which are not funded by property tax dollars. User fees are the main source of revenue and remain a way to fund operations in these funds. Par 3: trending down the last several years to $176,000 in 2010, which proved a tough year weather wise. Expenses have been increasing each of the years that the fund has been in operation, to $188,000 in 2010. This is the first year they have had an operating loss but in that loss there were depreciation of approximately $13,000 to $14,000, which is a non cash expense. So it is covering and paying the bills but not covering the future new or replacement costs of the equipment. This fund does have $40,000 to $45,000 in working capital and is able to sustain this loss in 2010, but obviously the trend is not going in the direction anyone would like to see. Mendota Heights City Council July 19, 2011 Page 8 Sewer Fund: there was a rate increase at the end of 2009. Portions of that were picked up during 2009 but the full affect of that was shown in 2010. In prior years there were operating losses of $200,000 to $300,000 but now with that rate increase the fund broke even during the year. There was an operating loss but only about $4,000. If depreciation is factored out, there was actually operating income of $140,000. Stormwater Fund: performing very well. Revenue has been relatively steady and expenses have remained flat, resulting in operating income increases during the last three years. Mr. Mayer also made the council aware of a new accounting standard called GASB Statement No. 54, Fund: Balance Reporting and Governmental Fund Type Definitions. This will call for a change in the city's fund balance policy. KDV will be working with the finance team on that in the weeks and months to come and council should look for a fund balance adjustment or amendment to the fund balance policy prior to year end. Councilmember Vitelli stated that this is the best presentation he has seen in the ten years he has been on the council. It was very lucid and he thought the audit report itself was excellent, easy to read and understand. Councilmember Duggan asked for an example in regards to a comment in the letter relative to the elimination of the reserved component of fund balance in favor of restricted classification. Mr. Mayer replied that he is not sure that the city is using any reserved fund balance in any way right now. There are currently two reserves, a Fund Balance in the general fund of $60,000 reserved for inventories and 1 $131,000 reserved for pre pay items. So when you look at that $6 million fund balance that does not mean that you have spendable cash of $6 million because about $200,000 has already been tied up in dollars that are in inventory, supplies that are on hand, or prepaid expenses. Under this new policy, this will be called non - spendable, so it is clearer as to what is available for spending. There is also going to be a restricted fund balance, which is where a third party has given the city dollars and then said it needs to be spent on a particular purpose and if it is not spent, then it needs to be set aside at year end. Committed is a fund balance that the council can decide whether or not they want to set it aside. Assigned is a fund balance that the council can delegate to administration for maybe more every day type set asides that you might run across. Councilmember Petschel stated that in the management letter there was a comment that the taxes collected were greater than expected and one of the reasons for that was for the collection of a fair amount of unpaid back taxes and asked what they attribute those payments to. Mr. Mayer replied 2009 was a very difficult year when it came to tax collections across the board. There was some turnaround in 2010 where people were catching up on their bills and since property taxes are not counted as revenue until they are in hand and spendable the city saw a bit of a windfall in 2010. Mayor Krebsbach asked if the increase in percent of expenditures for public safety occurred because the other costs went down in terms of percentage of expenditures. Mr. Mayer replied that this was certainly a factor. Expenditures for public safety in 2009 totaled $1.968 million and it went up about $200,000 to $2.162 million, public works actually declined about $130,000 from $1.698 million to $1.568 million and general government and administration went down about $150,000 as well. So a combination of Mendota Heights City Council July 19, 2011 Page 9 those other areas declining and public safety expenditure dollars increasing during the year is what is driving that increase in percentage. Mayor Krebsbach asked if fire moved into public safety. Mr. Mayer replied that this is correct. It was discussed last year and the decision was made on it this year. Each year the city makes a contribution into the fire relief association and for some reason has been coded as a general government expense in years past. General 'government is really the administrative function of the city and the fire relief contribution is really' a public safety expense. So this was reclassified and as a result that contribution is part of the reason for the public safety expenditure increase. Councilmember Povolny stated that KDV did a very good job and that, this being his first time reading it, the report was very easy to follow. Mayor Krebsbach also commended the staff, Kristen Schabacker, Finance Director; David McKnight, City Administrator; all of the staff; and police and fire. The city continues to be fiscally very solid and the council appreciates KDV's audit. The presentation by Mr. Mayer and a copy of the management letter will be made available for the public to review. C) FIRE DEPARTMENT UPDATE Mayor Krebsbach requested an update from Fire Chief John Maczko on the state of the fire department. She explained the community had raised some concerns because the sign in front of the station had been advertising for volunteer firefighters for so long. Chief Maczko stated that since the community actually noticed the sign they did not have to use any other advertising media and received 14 firefighter applications. He added the sign was left up in the hopes of bringing additional firefighters on all at one time, usually in August or September. Due to the fact they were not advertising by any other means it was left on the sign longer than usual. Mr. Maczko continued the fire department is authorized to have 36 firefighters and they currently have 34. They have an additional firefighter that has announced that he will be retiring at the end of the year so they would have three open positions as of the end of the year. An article that just came out stated that 72 percent of the country is protected by volunteer or paid on -call firefighters. That is how important of a role they play. He went on to say the article stated some departments are having increasing concerns about getting firefighters. Fortunately, we have been able to get applicants but sees the biggest concern is retention. A lot of energy is spent on retention because turnover creates a lot of costs, not just in having to buy equipment that fits but also in productivity. When a person finally gets to the point to be put on a rig and actually go in and fight the fire, there is a great deal of investment in that person, and that person has had a great deal of time invested. If it hasn't been productive, they haven't enjoyed their time, they burn out, and we have no retention program, then it all has to be done over again. Mr. Maczko explained that it may be a result of the economy but two firefighters have left the department in the past year that had less than three years of service, which is very uncommon. Chief Maczko's theory is that if someone stays for five years then they will stay for ten, if they stay for ten then they will stay for twenty. He feels this is due in part to the department's pension program. Mr.Maczko added the first two years on the fire department are very intense. It includes firefighter one training, firefighter two training, hazardous materials, operations, emergency medical training, all Mendota Heights City Council July 19, 2011 Page 10 completed in the first two years. In that first two years there is not a lot of truck time. No one is put on the first out rig until it is known that they can be safe on the scene both for the safety of the firefighters operating on the scene and for their own safety. In efforts to counter burn out the department is very clear up front during the orientation meeting. The spouses or significant others are invited in to be a part of this orientation, where everything is laid out clearly. Orientations scheduled for August 3, 2011 at 9:00 a.m. and at 7:OO;p.m. for anyone that still may be interested. Mr. Maczko stated the requirements to be considered are that a person has to live or work within a six minute response time of the fire station, legal driving time. If a work residence is used as a place to fulfill that requirement, a letter from the employer is needed stating that the person can be released from their employment duties for all calls anytime the pager goes off. There are two criteria for consideration in regards to physical agility; one is being able to climb a 65 -foot area ladder in the middle of nowhere (no fear of heights) and the other being able to navigate an obstacle course in the turnout gear and the breathing apparatus, which is blacked out (no fear of confined spaces). These two areas cannot be trained away. Everything else can be trained. Mr. Maczko continued in early 2010, when they last went through this process, they had 20 applicants and four were hired. Currently they have 14 applicants and will be inviting some of the 20 back from last year till fill out the ranks for three positions. He stated from a health of the department viewpoint, they try to bring new. people on every couple of years. In the fall of the year they will bring on groups of two to four at a time, because going through it with a partner develops tight relationships and it encourages them to ask questions. The department membership today consists of twelve years of service the average and the median is eight. It is a little bit heavy on the twenty -five year plus side, but again that is due to the retention program. That is where the experience and real balance comes from. Mr. Maczko stated there is a significant commitment on our paid on -call firefighters today. An emergency does not. know if someone is doing this as a career or doing this as a service to the community. Fire is going to burn you as bad either way and a person needs to be trained to deal with it. Training and safety are important and there are no shortcuts on the training. A lot of places gauge their firefighters by the number of calls that they go to; the more they go to the more they are needed. Chief Maczko has a different philosophy and that is working smarter. They take a true public safety partnership by working together with the other public safety agencies. Emergency calls that come in are classified and the proper safety personnel are dispatched. Having the fire department not respond to emergency calls that are better handled by an ambulance or by the police helps to prevent burn out in the fire department and the public is being assisted by the right agency quicker. Mr.Maczko continued the department also works with the city administrators on items like the Chapter 136 adoption, which is the sprinkler system requirement for commercial buildings. Chief Maczko would like to see this for residences as well as it is the instant firefighter. Homes are the number one place that people die. The installation of an underground sprinkler system to water the grass is more expensive than installing a sprinkler system in a new home. Taking advantage of this type of true public safety partnership has the community involved, the private sector involved, and helps keep the fire costs down. To retain the firefighters they need to be provided with good equipment and a good pension plan. Chief Maczko stated: he believes the department is doing well. They continue to have the right spread between daytime and nighttime response. The fire prevention budget proposed this year is Mendota Heights City Council July 19, 2011 Page 11 approximately $400,000, which includes all operating expenses. They cover four cities and they do it well. The insurance service organization is currently re- rating the department. They feel confident that their rating will stay at least where it is now, which is an ISO rating of four. To a typical homeowner, anything below an eight makes no difference in their fire insurance, although it does make some difference in the business category. Councilmember Duggan asked if there is a requirement for senior housing complexes to have installed fire suppressant systems. Chief Maczko replied in the affirmative. Mayor Krebsbach commented that one of the key points Chief Maczko was making is that the financial return for the firefighters is really the pension and because there are fewer calls to go to, there is compensation on things like a per call basis. The rate is the same but they may not be called as often. Chief Maczko replied that this is correct. The firefighters do get a paid on call hourly basis when they get called. But frankly, no one does this for the pay. The pension is a different thing. It is a long term item that becomes the bonus, the pot of gold that is the reward for sticking it out. The pension is funded by contributions from the city and from state aid. BID AWARD A) ADOPT A "RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR THE KNOLLWOOD LANE NEIGHBORHOOD REHABILITATION" Public Works Director John Mazzitello explained this is a bid award for the construction of the Knollwood Lane Neighborhood Rehabilitation project. He stated throughout 2011 council has heard about this project and it is identified in the city street improvement plan as part of the 2011 rehabilitation project. Staff completed a feasibility report that was presented to council and approved, plans and specifications were completed, which council accepted and authorized advertisement for bid. Those bids were received and opened on July 13, 2011. Five bids were received and those bids are tabulated in the resolution. Staff is recommending that council approve the resolution awarding the Knollwood Lane Neighborhood Rehabilitation project to McNamara Contracting for the amount specified in the resolution. Mayor Krebsbach asked if other bids had been awarded to McNamara Contracting. Mr. Mazzitello replied in the affirmative stating that McNamara has done work for the city for a number of years and they are the general contractor for Wagon Wheel Reconstruction as well. Mayor Krebsbach asked if he was satisfied with their work. Mr. Mazzitello replied that he is very satisfied. Councilmember Duggan moved to adopt a "Resolution Accepting Bids and Awarding Contract for the Knollwood Lane Neighborhood Rehabilitation" Councilmember Petschel seconded the motion. Ayes: 5 Nays: 0 UNFINISHED AND NEW BUSINESS A) CASE 2011 -16: MICHAEL WALDMAN "RESOLUTION APPROVING A WETLANDS PERMIT FOR A FENCE AT 580 WATERSEDGE TERRACE" Assistant to the City Administrator Jake Sedlacek stated that this case is a wetlands permit by Michael Waldman to put up 'a privacy fence in his backyard. The fence happens to be within 100 feet of a Mendota Heights City Council July 19, 2011 Page 12 wetland area so our requirement then is to look at this and see if it has any negative impact upon the wetland. Staff's recommendation from our prior hearing on this matter has not changed. The only thing changed on the resolution is the date and the only thing changed on the memo from Mr. Sedlacek is he provided the criteria by which we determine a wetland permit. Councilmember Duggan stated that he had met with Mr. Wes Cummins about this since he raised the issue the last time. Mr. Cummins explained that he, or his wife, had visited with Mr. Waldman and there is some discussion about maybe a fence across at another property. Mr. Waldman was asked to approach the council. Councilmember Duggan stated that there were two issues the last time. One being the privacy issue and what exactly was the concern there and it turns out the issue is small children and dogs. Mr. Waldman confirmed. The other issue raised was the size and shape of the fence. A six -foot fence is considered somewhat high and obtrusive from a setting viewpoint. However, Mr. Waldman is entitled to a six -foot fence. Mayor Krebsbach asked Mr. Waldman if he has had the opportunity to talk with Mr. Cummins or his family because part of the notification is that there is this discussion that takes place. Mr. Waldman replied that he spoke with the Cummins before and after the permit request was submitted. Mr. Waldman's request for the fence stands as previously presented. Councilmember Duggan asked if Mr. Waldman chooses to build a fence different from the six -foot fence proposed with the board -on- board, which gives it 30 percent opacity, more than the fence that his neighbor across the street has, does he need the council's permission to do that. Mr. Sedlacek replied that in this instance they are requesting the maximum amount of fence available. If they were to scale that back when they provide their fence permit, staff would be just fine with that and would not have further review. Councilmember Vitelli moved Approval of a "Resolution Approving a Wetlands Permit for a Fence at 580 Watersedge Terrace" Councilmember Duggan seconded the motion. Ayes: 5 Nays: 0 B) AUTHORIZATION TO ADVERTISE BIDS FOR FUEL SYSTEM Public Works Director John Mazzitello explained staff is requesting council authorization to advertise and collect bids to replace the fuel pumps that are at a public works garage. The pumps currently at the garage are quite old and in a variety of different states of disrepair, depending on the pieces of equipment within the pumps. In the staff memo Mr. Mazzitello outlined the four main reasons this request is being made at this time. 1) All of the fuel usage is tracked by computer and the modem that talks to the computer is failing, has failed, has been resurrected from failing and is in need of replacement. The computer the modem talks to is also over five;years old and is outdated. 2) The software is sot-61d that the anti -virus software had flagged it as invasive because it was unrecognized and actually deleted it off of the server. The information technology manager had to reinstall it. 3) The pumps themselves are quite old. The hoses, handles, and analog dials are original equipment and as long as they are replacing the modem and the software system, the pumps need to be replaced as well. Mendota Heights City Council July 19, 2011 Page 13 4) A leak detection system needs to be installed to replace the failing detection system that is in place now. All of the tanks that hold the fuel are dual -lined and there are sensors between the two tanks that are buried in the ground. The system that reads those sensors has failed. Mayor Krebsbach asked if there are leaks presently. Mr. Mazzitello replied they have been dipping the tanks, measuring how much fuel is in the tanks and comparing that with the consumption, and have determined there is fuel leaving the tanks other than through the pumps. Councilmember Petschel asked if the sensors themselves are going to be replaced or the part the sensors are reading into. Mr. Mazzitello replied that the apparatus that the sensors plug into is what needs to be replaced; the sensors themselves cannot be removed. . Mr. Mazzitello continued by stating that the total costs for the pump replacement; with the computer, the software, and the leak detection system; is being estimated at $50,000. Staff is proposing three different funding options for that $50,000 expenditure. 1) General fund balance expenditure in fiscal year 2011 with the work completed in 2011 2) General fund balance expenditure in 2011 to be reimbursed as a capital expenditure in fiscal year 2012 with the work still be completed in 2011 3) General fund balance expenditure in 2012 with the work completed in 2012 Staff is recommending either of the two options that get the work done before winter, completed in 2011, and is recommending that council authorize staff to advertise for bids and gather quotes for replacement of the pumps. Mayor Krebsbach asked if Mr. Mazzitello was aware that this is not a budgeted item. Mr. Mazzitello replied that he is aware that this is not a 2011 budgeted item. Councilmember Petschel asked if the expenditure is in the 2012 budget. Mr. Mazzitello replied that public works is requesting this as a 2011 capital expenditure. Councilmember Petschel clarified her question by asking when the 2012 budget was being put together was it going to be in that budget. Mr. Mazzitello replied that council would be seeing this in the budget packet. Mayor Krebsbach asked if the council were to authorize this tonight, what City Administrator McKnight's opinion would be on where the funds should come from. Mr. McKnight replied that he would recommend option on which would be paying for it out of the general fund balance, the funds that are available in 2011. Councilmember Duggan moved to approve Authorization to Advertise Bids for Fuel System using option one as described to fin the expenditure. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 C) KENSINGTON PARK PLAYGROUND EQUIPMENT PURCHASE Assistant to City Administrator Jake Sedlacek, reporting on behalf of the parks commission, explained that the playground structure at Kensington Park, is not up to par from a safety perspective, even though Mendota Heights City Council July 19, 2011 Page 14 the poles and bases are structurally sound. There are also a number of aesthetic items that need to be replaced. The cost for updating the system is just about the same as replacing the system. The Parks Commission has spent considerable time on this matter and received public input. There was $52,000 budgeted in the special parks fund for 2011 for playground upgrades. The parks commission is recommending that the $52,000 be spent on a RFP to replace the playground equipment at Kensington Park. They procured proposals, refused the first round of proposals, made revisions to their request, and then received four more proposals. These proposals were from Flanagan Sales, Flagship Recreation, Clearwater Recreation, and Accent Park and Recreation, who all provided great examples. After some discussion, the parks, and recreation commission is recommending a Little Tykes Commercial System sold by Flanagan Sales for installation in the park. The project includes removing all of the old play structure, putting poured in place surfacing over the existing concrete, adding a three to five year old structure, a five to 12 year old structure, keeping the existing swings, keeping some existing single play events, and then adding a climbing net. This also includes replacing the surfacing materials, as pea rock does not meet safety standards any more. Councilmember Petschel commented that when reading the data on the project, it was identified that before actual replacement of the equipment takes place a drainage problem needs to be corrected. She asked to see the location of the drainage problem. Mr. Sedlacek replied that water pools inside of the play area itself so the drainage needs to be corrected so that the water can escape. Mayor Krebsbach commended the parks commission for all of the time and effort they put into this project. Councilmember Duggan moved to approve the Kensington Park Playground Equipment Purchase. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 D) CITY ADMINISTRATOR SEARCH PROCESS Mayor Krebsbach explained that earlier this evening the resignation of City Administrator David McKnight was accepted. At the workshop today as the first order of business it was determined that an interim would be appointed as the search for the new city administrator takes place. The results of that discussion were that the city would make an appointment from an existing staff person and not go outside for an interim administrator. Mayor Krebsbach asked if anyone on the council wished to make a motion or make any comments as a result of the workshop. Councilmember Vitelli moved to appoint John Mazzitello, the ' current public Public Works Director and City Engineer as the interim city administrator. Councilmember Povolny seconded the motion. Ayes: 5 Nays: 0 Mayor Krebsbach commented that Mr. Mazzitello has been working with the city engineer and public works and with his back up team in place this would be a good appointment. She stated council has confidence in his ability to move into that interim position without a lot of disruption within the staff. Mayor Krebsbach explained the next order of business is the search for a new city administrator and the process will include the following steps: Mendota Heights City Council 1) Job description review and update 2) Position profile review, suggestions and update 3) If approved, the timeline would consist of 4) July 25, 2011'— posting the city administrator position 5) August 18, 20.11— interim city administrator starts 6) August 25, 2011— last date to accept applications 7) October 201 t- interview process with a decision being made by late October 2011 8) December 2011 — new city administrator begins July 19, 2011 Page 15 Councilmember Duggan moved to accept the City Administrator Search Packet with the changes discussed at the workshop. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 COUNCIL COMMENTS Councilmember Povolny commented that it is hot, sticky, and he hopes everyone's air conditioners work and will not go out like his did the other day. Councilmember Duggan commented that he has received requests that more bike racks be installed at The Village and at The Plaza and he suggested that staff send a letter to them to ask if they would be interested in adding additional bike racks. Councilmember Duggan then asked if Mr. Sedlacek had the National Night Out list of places in Mendota Heights that people can gather. Sergeant Convery replied if a resident would like to plan a Night to Unite party they may go to the city web site on the police section and click on Night to: Unite to register the party. Councilmember Petschel commented that when they met with the Airport Relations Commission it was noted that there were an extraordinary amount of departures off of 12 Left over Mendota Heights in June. This was quite a departure from the normal number of operations and since she and Councilmember Duggan live under that flight path, they did note that. Since then a communication has been received that indicated that 12 Right was down for service for at least two days where the runway could not be used at all. Councilmember Duggan commented that The Village music series is on tomorrow night between 6:30 p.m. and 8:30 p.m. but will be indoors at Mendoberri Caf6 & Wine Bar. Councilmember Duggan also stated that he has received comments about how nice it would be to have a public arts department or some way of encouraging public art and recognizing local artists. CLOSED SESSION TO DISCUSS LABOR NEGOTIATIONS Councilmember Petschel moved that council adjourn to closed session to discuss labor negotiations at 9:10 p.m. Councilmember Vitelli seconded the motion. Ayes: 5 Nays: 0 �` Present in the closed session were all five city councilmembers and the city administrator. Mendota Heights City Council Mayor Krebsbach adjourned the meeting at 9:35 p.m. Mayor �A City Clerk bach July 19, 2011 Page 16