2019-08-13 Council Work Session MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the City Council Work Session
Held August 13, 2019
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 1:00 pm. Councilmembers Duggan, Miller, and Petschel
were present. Councilor Paper was absent.
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; John Boland, Public Works Supervisor; Kelly McCarthy, Police Chief, David
Dreelan, Fire Chief, Tom Mattaini, Fire Relief Association Chair; Lorri Smith, City Clerk.
DISCUSSION OF FY2020 PROPOSED BUDGET
Overview
City Administrator McNeill provided an overview of the budget estimate. The current proposed budget
includes a $475,000 increase in the general fund budget which is proposed to be a 5.28% increase. The
majority of this increase is for increases to wages, health insurance, and workers compensation insurance.
Other reasons for the increase include a proposed new position for Office Assistant, and funding a full
year for the Parks Maintenance position, which is still being held as an open position.
Mr. McNeill noted that on an average priced home of $408,000, city taxes would increase 4.62% or
approximately $71.13 per year.
Councilor Petschel questioned if this proposed budget includes bond payments for the Fire Station.
McNeill stated that those are included. Petschel noted that the Council had previously agreed to dedicate
the money budgeted for the West St. Paul Ice Arena payments (which are now paid in full) and the
proceeds from the sale of the vacant lots at The Village towards the costs of the Fire Station
addition/remodel, to offset the increase.
McNeill noted that staff is recommending some equipment expenditures come from the surplus reserve
funds realized at the end of 2018.
Fire Relief Association— City Administrator McNeill stated that again this year is a request for the Fire
Relief Association increase of $500 per member, for a total increase of $18,000. McNeill explained that
this is the fifth year of a five year program to increase the city's contribution for the firefighters by $500.
Next year, the department will complete another analysis of area fire departments to see if they are being
paid within the range.
Fire Department— Cost increases have been included in the budget for electric and gas, and other items
that are known to be increasing. It was noted that soon, benefits from the solar panels will be realized.
Otherwise the budget is similar to previous years.
Chief Dreelan noted a request to replace the All -Terrain Vehicle at an estimated cost of $40,000. The Fire
Relief Association has accepted a $10,000 donation which would be put towards this purchase. It was
noted that additional equipment purchases are being planned for 2021. These will be grouped together and
equipment bonds will be used to finance the purchases.
Police — It was noted that there are no major changes to the Police Department's budget.
Chief McCarthy noted a request to complete a comprehensive, City Hall space needs assessment. It is
estimated this will cost $15,000.
Chief McCarthy noted a request for a pole camera to monitor areas where criminal activity has increased.
This is estimated to cost $10,000, half of which may come from a donation from the Mendota Heights
Criminal Apprehension Fund.
The possible purchase of a Ford F-150 to replace the 2013 Ford Explorer was discussed. It is estimated
this would cost $45,500, including all emergency equipment, topper, graphics, etc. This would allow the
Community Service Officer and other department duties to be done safer and more efficiently.
Public Works — Public Works Director Ryan Ruzek discussed a request to replace the current brush chipper
at a cost of $49,500 after a $13,000 trade-in of the current 2001 model. It is recommended to replace the
grinding drums at $5,000.
The possible purchase of a new plow truck was discussed. This would cost $187,682, after a $35,000
trade-in of the current 2007 model. There is concern about the current 2007 plow truck making it through
the 2019-20 winter.
A request was made for a 3/4 ton pickup truck, to replace the current pickup. The estimated cost is $36,300.
The current truck would be transferred to the Natural Resources staff member.
Mr. Ruzek discussed the need for an Asphalt Hot Box Trailer. The current hot box is mounted on a large
plow truck which has resulted in the need for repairs. The hot box trailer would allow for earlier and later
patching operations during the year.
Discussion was held on the construction of a salt storage bin. The current storage location is deteriorating
due to corrosion of the metal surfaces. This is estimated to cost $150,000.
August 13, 2019 Council ff ork Session- Budget Page 2
Recycling — Ruzek explained that the funding for recycling is 100 percent County funded. It was noted
Dakota County is changing how they will allocate the funding in 2020, which may mean a decrease in
revenue for Mendota Heights. This could result in changes to what can be accepted at Clean Up Day, or
an increase in the prices for the disposal of certain items at the event.
City Hall — Capital outlay items of pumps, boilers, LED can light conversion, and parking lot
improvements were discussed.
Engineering — Mr. Ruzek explained the job duties that the Natural Resources staff have taken on. There
are no changes proposed for the Engineering budget.
Utilities — McNeil noted there are no major changes in this budget.
Storm Water Utility - There were no major increases proposed. It was noted that staff will be proposing a
rate increase for storm water utility charges. For residential properties, it is currently set at $12.00 per
quarter. It is proposed to raise to $16 per quarter in 2020. There was no increase in 2019.
Sanitary Sewer Utility — It is proposed to purchase a Jet Truck, to replace the current 1991 JCT jetter truck.
The cost, after trade-in, is estimated to be $234,000. It was noted that this lessens sewer backups in the
city. Funding would be from the sanitary sewer fund.
City Council — McNeill noted that the budget included $14,000 for fireworks.
Administration —McNeill reviewed the Administration budget. He is proposing an additional staff person
to work with Recreation, Community Development, and Finance. The net cost of this position would be
$65,000.
Elections — McNeill reviewed the Elections budget, and stated that the additional costs for the Presidential
Primary will be reimbursed by the State of MN. Discussion centered on lowering costs by not providing
in-person absentee voting at the Mendota Heights City Hall. It was noted that voters would still be able to
vote in-person absentee at the Northern Service Center in West St. Paul, the Western Service Center in
Apple -Valley, or at Dakota County Administration in Hastings. The Council was in favor of this change.
IT — Assistant City Administrator Jacobson stated that the budget is proposed to increase due to the
purchase of Microsoft licensing and the addition of a new telephone system. Servers are also now hosted
at LOGIS.
Community Development — Community Development Director Benetti noted that much of the proposed
increase is due to the possible need for a Consultant Planner to work on changes that could be needed on
the Comprehensive Plan.
Contractor licensing was discussed and staff is recommending that the City no longer issue these licenses
due to there being no need for them and the excessive staff time needed to issue and maintain them. This
would result in a revenue decrease of approximately $15,000. The Council was in agreement to stop
issuing these licenses in 2020.
August 13, 2019 Council Work Session- Budget Page 3
Code Enforcement — Discussion centered on the need for additional staff help for Code Enforcement. Mr.
McNeill stated that the Community Service Officer could work on this a few hours per week, along with
the possible new Office Assistant position.
It was noted that the Parks and the Recreation budgets, along with the CIP will be discussed on August
20th, at 5:00 pm.
ADJOURNMENT
There being no further business, Mayor Garlock adjourned the meeting at 2:55 p.m.
-`l ,
Neil Garlock '
Mayor
ATTEST:
Lorri Smith, City Clerk
August 13, 2019 Council Yfl'ork Session- Budget Page 4