2018-08-13 Council Work Session MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the City Council Work Session
Held August 13, 2018
Pursuant to due call and notice thereof, a work session of the City Council, City of Mendota Heights,
Minnesota was held at the City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Garlock called the meeting to order at 1:32 pm. Councilmembers Duggan, Miller, Petschel were
present.
Also present were: Mark McNeill, City Administrator; Cheryl Jacobson, Assistant City Administrator;
Kristen Schabacker, Finance Director; Ryan Ruzek, Public Works Director; Tim Benetti, Community
Development Director; Terry Blum, Public Works Supervisor; Kelly McCarthy, Police Chief; Meredith
Lawrence, Recreation Program Coordinator, and Resident John Bennett (arrived at 3:00 pm)
DISCUSSION OF FY2019 PROPOSED BUDGET
1. Overview
City Administrator McNeill provided an overview of the budget estimates. The current proposed budget
includes $591,932 for the first year's repayment of the 15 year bonds for fire station improvements,
increasing the levy by 6.05 percent. The preliminary increase to the general fund levy is proposed at 3.46
percent, and assumes the use of general fund reserves for several "one-time" expenditures. McNeill noted
that City Council may choose to spend down a portion of city fund reserves, which is at approximately 90
percent, but not drop below 75 percent in order to maintain the City's AAA bond rating. Council could
choose to spend down about $1 million and still be ok. McNeill noted that staff is recommending
expenditures of about $318,000 to be taken from reserves.
McNeill stated that the overall budget increase, which includes both the fire bonds and the proposed
operating budget, is a little over 9.5 percent. One item that is not built into the budget is the use of athletic
fields and charging fees. McNeill noted that charging for fields will help users narrow down reservations
to what they really need. Councilor Duggan questioned whether there had been any push back from users.
McNeill noted that this shouldn't come as a surprise. Unresolved is the structure for charging users.
Councilors commented that having a policy in place prior to January is preferred.
Councilor Petschel expressed her desire to have Councilor Paper present to discuss the replacement of
mowing equipment. Petschel stated that he had been helpful in terms of what is realistic and not realistic
and that it is more his area of expertise.
Fire Bonds, Series 1984 -McNeill stated that the partner cities are still paying off the 1984 bonds. The
payment on the new bonds has not been determined and the proposed budget does not include any increase
for what those cities' costs will be. Council will need to consider that the new bond payments are going
to be amortized over 15 years. The City could provide the partner cities with a 10 percent increase for FY
2019, and then use the actual number for 2020.
Police Services - McNeill noted that the Council should consider switching to a percentage based
formula for police services fees.
2. Department Review
City Council — McNeill noted that the budget included $14,000 for fireworks. Councilors stated that there
was a period in time when that expense would not have been supported. Public events are important for
the community and this is now viewed as an amenity.
Administration —McNeill reviewed the Administration budget and included $1,500 to replace city hall
furniture, such as chairs in conference room and breakroom. The contingency line item was reduced to
$35,000, due to the completion of the pay study in 2018.
Discussion was made regarding the last payment of the West St. Paul Ice Arena contribution. McNeill
noted that the FY 19 amount is higher than in previous years, due to 2019 being the last payment.
Councilor Duggan asked if the City had received a report of the arena's condition and inquired if the City
of West St. Paul is asking for additional money. Councilor Duggan suggested that the City tour the arena.
Councilor Miller noted that a large portion of the recently approved school referendum is going to sports
facilities.
Councilors asked questions about the miscellaneous category include in the Administration budget.
Discussion regarding the City's auto insurance provider was had. Councilor Petschel inquired whether or
not insurance through the League is the best price. Petschel noted that Hermantown went out for bid and
moved away from the League. It was noted that the City is not required to use the League, and Council
questioned if the City is being best served by the League. The group suggested that at some point, other
options should be looked at, and that an RFP should be conducted in the future.
Councilor Duggan asked about the codifier budget and whether or not expenses are closer to the $600 or
$1000. Public Works Director Ruzek noted that the city is looking at code revisions this year. Staff will
research further.
Administrative staffing was reviewed. Assistant City Administrator Jacobson confirmed that the
Communications Coordinator position had been filled. Councilor Petschel suggested more analysis be
done on the Volunteer Coordinator and what volunteers can be used for. Staff was asked to prepare an
inventory of the possible volunteer opportunities within the City. The Council was in agreement to keep
$10,500 in the budget for volunteer coordination.
IT — Councilor Duggan asked about additional Laserfiche licenses. Jacobson stated that funding is for
additional public licenses. Councilor Miller asked about how many public licenses a city should have for
our size. Staff agreed to return with an answer.
Police — McNeill reviewed the department budget and capital items.
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Councilor Petschel noted that it appears that Chief McCarthy wants two systems, body cameras and
vehicle cameras on the same platform. It was noted that squad cameras are requested to be replaced.
Councilor Petschel suggested looking at the City of Inver Grove Heights camera policy once it is written.
Councilor Petschel asked about the fleet increase and the overlap in staffing during the day and with
adding a vehicle would it allow for special details. Chief McCarthy was not present answer the question.
Staff will return with an answer.
Fire — McNeill explained that the overall fire budget is up by less than a half of a percent. Discussion was
had regarding the replacement of the rescue truck totaling $350,000 and the ladder truck totaling $650,000.
Members supported consolidating the two trucks into one truck based on need, and with a total expenditure
of about $750,000 to $800,000.
Councilor Duggan inquired about setting aside funds to pay for the equipment. McNeill advised that if
there were six or seven years to save and pay cash it might make sense, but given the timing, either bonds
will need to be sold, or more cash put aside.
McNeill noted that the department's budget request includes the replacement of a fire utility vehicle used
by Chief 2. Councilors asked whether or not the $41,000 included any trade-in allowance. Mayor Garlock
asked whether or not the lack of use contributed to the problems with the vehicle. Staff stated that the
issues with the vehicle make it unsafe to drive. The purchase would come out of reserves.
McNeill stated that again this year is a request for Fire Relief Association increase of $500 per member,
for a total of $18,000. Councilor Duggan inquired about where the City is in comparison to others?
Councilor Miller stated that the City is in the center of the bell curve as far as benefits. Over the last five
or six years steady increases have been made. Miller noted that the Department is not trying to get to
number one but wants to be somewhere above the middle, which provides more incentive for hiring. The
item was supported by the Council.
Councilor Duggan suggested that a list of all of the equipment and when it was acquired and its expiration
date be compiled.
Building Official — McNeill stated that this budget is up about four percent. The group had no comment.
Streets — McNeill noted that the budget is up less than two percent overall. Included capital items are
fence replacement at the Public Works building and pick up replacement. Public Works Supervisor Blum
stated that the truck is used for blacktopping and snowplowing. Blum felt it was an important piece of
equipment to replace.
Councilor Duggan stated that a neighbor planted six boulevard trees and inquired about whether or not
the City is paying for them. Staff is aware of the trees, but said that the City is not paying for them.
Parks — McNeill reviewed the parks budget and noted a $10,000 increase in seasonal salaries. The budget
for the eradication of invasive plants doubled.
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Councilor Miller agreed that additional staff time is needed with how much additional work is being
assigned to Parks staff. Miller inquired if the City would have the funds to add a position permanently.
Council members asked questions about the additional position and job duties. McNeill stated that funding
for the position could come from the proposed field use fees. Staff agreed to look at the additional position
and return with a recommendation.
McNeill and Blum reviewed the parks capital items including mower replacements. Councilor Miller
inquired about leasing instead of purchasing machines. Blum stated that leasing has been considered and
costs end up being about the same. Councilor Duggan asked about maintenance when leasing equipment.
Blum stated that the City would continue to maintain the equipment as if it was owned.
Recreation — McNeill noted that proposed budget did not include funding for the summer concerts.
Councilor Duggan suggested that poor marketing from a council standpoint contributed to the decline in
attendance. Duggan suggested additional marketing such as signs and boards advertising the concerts be
used. Additionally, finding a new location, potentially on The Reserve Apartments/Plaza open space area
as a suggestion.
The Council discussed tying the summer concert to another event, such as the Parks Celebration. Also
discussed as an alternative was the Fire Department dance. Council Petschel supported leaving the $3,000
in the budget but develop a game plan for the concert series, talk to the Fire Department and At Home
Apartments for potential joint efforts.
McNeill noted that the Village annual tree lighting event not being planned for this year, but the Menorah
has already been requested.
McNeill highlighted new registration software is the one recreation capital item. Recreation Coordinator
Lawrence noted the advantages of setup and invoicing with new software. Councilors agreed that new
software is needed.
Planning — McNeill noted that much of the cost of the Comp Plan update was included in this year's
budget, which resulted in a significant reduction in Planning's consulting line item. Community
Development Director Benetti stated that the City has an extension to submit the Comp Plan until
March/April 2019. Councilor Duggan requested that a copy of the current draft of the Comp Plan be
provided to council members for review and comment.
Recycling - Ruzek explained that the $32,800 of funding is 100 percent County funded; this is not coming
from the City's levy.
Animal Control — McNeill noted that a new contract may come in which could reduce costs by about 50
percent.
Engineering — McNeill highlighted that the proposed budget includes fully funding the Natural Resources
Technician position. Discussed was the increase in the clothing and equipment line item which was
increased to cover additional staff needs such as boots and vests.
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Utilities — McNeil reviewed the budget which is down around one percent. McNeill highlighted the trunk
sewer main reconstruction capital project totaling $315,000. Ruzek stated that staff has not been able to
get a camera through the pipe in question, which would be subject to the reconstruction project.
Councilor Petschel asked about how satisfied that City staff has been with the performance of contractors,
and asked that council be updated at the end of the year with how contractors compared.
Storm Water Utility - Ruzek reviewed the raingarden increase and stated that staff is trying to do more in
addition to providing more tools for the Natural Resources Technician.
Ruzek reviewed the capital projects. Councilor Petschel asked if there had been any success with finding
grants for bank stabilization? Ruzek stated that two grants have been awarded for Augusta and Valley
Creek erosion studies.
Par 3 — McNeill reviewed the proposed capital item. Lawrence explained that the new rough mower is
working very well, but that other pieces of equipment are in need of repair and replacement.
The Council discussed the original intent of the golf course referendum and the City's issuance of bonds.
At the time major capital expenditures were not considered. The budget is now being be done to reflect
the actual costs and the spending necessary. Consideration to whether or not the Par 3's operation should
be treated as a park, and not run as an enterprise fund was stated. McNeill stated that staff may be looking
to Council for general fund assistance.
Councilor Miller discussed leasing options on the mowing equipment.
City Hall - McNeill noted that the budget is up three percent. The Capital items which have been proposed
would come out of the City Hall Fund. He noted that the City Hall generator the original equipment. It
is staffs intent to bring a specific recommendation for replacement back to council this year. Councilor
Duggan inquired whether or not the generator is connected to the solar panels. He was told that it was
not. Lighting upgrades are includes as the current system is inefficient and the leveling and replacement
of the lower level sidewalk is included. The group concurred.
Special Parks Fund — McNeill noted a number of capital outlay items. The group questioned why there
were items that were given extremely low priority included on the list.
Police Department Capital Requests - Chief McCarthy arrived, and the group returned to the discussion
regarding Police Department capital requests.
Chief McCarthy explain that the body and squad camera costs includes the installation, hardware, software
and storage of the data. She noted that data storage is extremely important.
McCarthy noted that the body cameras will be worn on the officer's chest. Other options were considered
but not preferred.
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Councilor Petschel asked about the special areas to target and the addition of a squad car and shift overlap.
McCarthy explained that the officers are responsible for special areas. When a new shift structure is
implemented, officers will be able to better focus on special areas.
Chief McCarthy reviewed the replacement of squad rifles. McCarthy stated that the department has tried
to mount optics on current rifles, and found that that does not work. Optics on the weapons are important
given different work situations.
Councilor Duggan asked about changing to the proposed and the impact on training would be. McCarthy
stated that training is consistent across a variety of weapons, and that officers have to meet qualifications
which might mean shooting more. New weapons would not change the training being done now.
OTHER DISCUSSION ITEMS
Encroachments of City Properties - McNeill provided a summary of the discussion item relating to two
properties on Upper Colonial Drive. The City Attorney has opined that various options are to allow the
encroachment to remain indefinitely; remove the items by a date certain; or allow the encroachments to
stay in place until a set time under a sunset agreement.
Councilor Petschel inquired as to who had initially issued the fence permit. Community Development
Director Benetti stated that the City had issued a pool permit, and that a fence permit was issued later.
Councilor Duggan suggested that upon selling the property to a new owner, the fence should be removed.
Duggan restated that the owner was selling the property now, and the new owner should know that the
fence is not on their property, and the new owner should take the fence down at the time of the next sale.
Councilor Petschel stated concern about precedent setting.
Resident John Bennett was present at the meeting and provide historical background on the purchase. He
reported that they were not aware that the fence was on city property when originally purchased.
The Council continued discussion on the presented options. Consensus was reached and staff was directed
to submit to the City Attorney a request to draft a sunset agreement for the Bennett property to allow the
fence to remain until the new owner sold the property, or when the fence was in need of replacement, The
agreement should contain other considerations such as insurance, property taxes, and conditions of the
fence. Staff would return with an agreement for council consideration at a future meeting. The agreement
would be recorded on property records.
Council discussed removal of the shed on the neighboring property, and agreed that it must be removed
by November 1.
Discussion of Problem Tree — Public Works Director Ruzek summarized the issue of a cottonwood tree
in Victoria Highlands Park. The tree is at the furthest corner of the park property, and is not in a maintained
area of the park. Ruzek noted that the City has previously removed four trees near the 916 property
because they were not high quality.
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Council discussed the removal of the tree at the owner's expense. The members agreed that the tree was
an otherwise healthy tree and that there is no reason to remove it. If the tree is to be removed is should be
done at the owner's expense.
Council concluded that the tree could be removed by the owner using a licensed and insured tree service
contractor, but should be replaced with a 2.5" caliper balled and burlapped tree. Councilor Duggan
suggested that the neighbors be polled about the removal.
McNeill provided Councilor Paper's opinion that the tree removal would be at the expense and that it
should be replaced with a new tree.
ADJOURNMENT
There being no further business, Mayor Garlock adjourned the meeting at 4:21 p.m.
! L�y(,(-)L-13
Neil Garlock 7
Mayor
ATTEST:
Lorri Smith, City Clerk
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