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HomeMy WebLinkAbout09-29-2014 WS Minutes Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: September 29, 2014 Time of Meeting: 7:00 PM Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: WORK SESSION CALL TO ORDER/ROLL CALL- The meeting was called to order at 7:00 PM Present: Mayor Peterson, Council Member Nawrocki, Council Member Diehm, Council Member Schmitt, Council Member Williams, City Manager Walt Fehst, Finance Director Joseph Kloiber, Recreation Director Keith Windschitl, Public Works Director Kevin Hansen, HR Director/Assistant to the City Manager Kelli Bourgeois, Library Director Renee Dougherty, Community Development Director Joe Hogeboom, Assistant Community Development Director Loren Wickham, and City Clerk/Council Secretary Katie Bruno Recreation Recreation Director Keith Windschitl gave an overview of the Recreation Budget, reporting that the budget increased $15,073; 1.86% overall. The majority of the increase is due to a loss in grant funding for youth enrichment programs. Other increases include traveling athletics. The senior programs budget has decreased, because seniors are opting for more affordable trips. Other significant changes are in the JPM budget for a commercial coffee pot, and parking lot improvements to the Mill St parking lot. Director Windschitl explained that he would like to hire additional staff (part time) for the Hylander Center; currently there is one staff member to manage up to 100 youth. Councilmember Schmitt suggested looking for grants through insurance agencies for exercise programs. Director Windschitl explained that while the adult exercise programs are self- supporting, he will look onto possible grants. Councilmember Diehm requested a report on general participation. Director Windschitl reported participation varies from year to year, noting teams are comprised based on skill level. Councilmember Diehm stated she was happy that the City continues to offer a variety of programs to the youth. Councilmember Nawrocki asked if the proposed budget includes salary adjustments. Director Kloiber noted that the 2015 budget was missing the contingency line item. Director Windschitl stated he will look into the issue. Councilmember Nawrocki asked for clarification regarding the fiscal disparity amount. Director Kloiber stated that the resolution is for gross levy amount; the county subtracts the fiscal disparity amount, and then extends the remainder to local tax payers. Councilmember Nawrocki stated that he thinks it is misleading to tell residents taxes increase 3.25, when it’s actually 6%. Director Kloiber commented regarding loss of the grant in recreation. There is a sizable fund balance, restricted to the continuation of the programs established. There is about $200,000 in fund balance; council will need to determine how to manage the funds. Kloiber stated that there will likely be added to fund 261 in the budget process. Councilmember Nawrocki asked Director Windschitl how he could reduce his department budget by 3 ½% if necessary. Director Windschitl would do so through several departments, noting funds are not always spent as anticipated, some are unpredictable. The following would be omitted; additional staff member at Hylander, parking lot project, Murzyn Hall part time staff, morning cleaning staff, staff for traveling athletics, supplies at Murzyn Hall. Public Works Public Works Director Kevin Hansen gave an overview of the following projects planned for 2015. • Labelle Park Improvements Water Quality Improvements and Master Plan, estimated costs of $415,000 • Jackson Pond Improvements, plan to seek bids again, estimated costs $1,200,000 • Huset Park splash pad, estimated costs of $400,000. The council discussed federal and state requirements related to the current three wading pools. Councilmember Nawrocki stated that he would prefer to have pools in all areas of the City. Director Hansen commented that splash pads are safer, and more cost effective. • Concrete alley reconstruction, the City is looking to rebid over the winter, estimated costs of $550,000 • Silver Lake Pond Improvements, reconstruct to current standards, to reduce phosphorus. Because this is a TMDL (total maximum discharge limit) project, grant funding is a good possibility, likely city funds will not be used, the estimated cost is $320,000 • Inflow infiltration measures, estimated costs of $60.000 • Zone 1 street rehabilitation • Watermain cleaning and lining, estimated costs of $345,000 • Sanitary sewer aid overlays • State aid overlays • Water tower rehabilitation; including painting and coating. Director Hansen explained that the city bases their analysis on inspection reports, rather than visual appearance. The last time the water tower was painted was in 1995, typical lifespan is 15-20 years. The cost is estimated at $600,000 • City Hall maintenance estimated costs of $160,000. There are window failures in two parts of the building. Two of nine rooftop units have leaks; the City has gone through process to determine repair verses new. Seven of the nine rooftop units are 13 years old; the expected lifespan of the RTUs is 15 years. Director Hansen emphasized that the city’s infrastructure aging. It was reported that the Public Safety building, the Library and Murzyn Hall have all seen significant lower energy consumption. Director Hansen reported a proposed increase of 7.6% in the engineering budget, due to re- establishing the Engineering Tech position. The Engineering goals focus primarily on projects. Director Hansen reported that the department has decreased their salt usage by 37%. Street lighting costs are driven by energy costs, the city has a few city owned street lights, Xcel is not interested in taking these over. The city pays for a portion of all traffic signs and signals; the city also pays for re-lamping. Director Hansen reported that all regulatory signs will be replaced. The proposed Parks budget shows a 3.1% increase. The main reason is in personnel; Steps and insurance costs. The proposed Urban Forestry budget shows a 2.3% increase, primarily in labor and EAB management. It was reported that in 2014 the city spent $11,500 to treat ash trees, proposing $12,000 for 2015. Councilmember Schmitt stated she is anticipating concerns from neighbors regarding EAB on nearby trees. Director Hansen stated that the forester will investigate the complaint, and direct the homeowner to areas for assistance. Director Hansen reported the only personnel request, is the reinstatement of the Engineering Tech position, 2/3 of their salary would be charged to projects. An increase of 2.3% increase is proposed for the water operation budget, the primary factors include personnel, contingencies, and an increase in state fees. Director Hansen gave an overview of the sewer operations fund, noting there is no change from 2014. Councilmember Schmitt commented that this fund is consistently under budget, questioning if we are anticipating more repairs? Hansen reported that the budget is adopted based on utilization of staff, noting the department has been understaffed for a while. Director Hansen reported that disposal costs, to MCS for sewage disposal has increased consistently, and will continue to do so. Hansen explained the I & I surcharge. City Manager Fehst stated this is a charge that approximately 2/3 of the metro cities pay. Director Hansen reported the contact for waste disposal has been extended for three years, the contract includes a 3% increase for each year. The tipping fees at Energy Resource Recovery are expected to increase significantly. Hansen reported that more money from Anoka County helps to keep recycle costs down, as well as minimizing garbage costs. Hansen reported the Storm water utility budget increases are related to insurance and contingencies. The Central Garage budget has a 1.6% decrease, a significant reduction in capital outlay. Director Hansen reported that the Building Maintenance Department is a new budget line item, there are no comparisons. Finance Director Kloiber commented that the new department covers custodial and building supervisor costs that were previously included in various department budgets. Councilmember Nawrocki asked Director Hansen where he would reduce his budget by 3.5%. Director Hansen responded he would probably reduce personnel, noting the outcome would be a utility worker or an Engineering Tech, commenting that staff is currently stretched. Councilmember Nawrocki stated he is not in favor of a 10% property tax increase. Manager Fehst explained that the proposed net increase is 3.25% of the levy. Finance Finance Director Joseph Kloiber reported the Finance division of the budget has an overall increase of 2.4%, comprised of Step & Insurance increases. There are no anticipated changes in staffing in 2015. Director Kloiber reported the finance department will start leasing some equipment rather than purchasing. Additionally the utility department is implementing an online bill pay option. Kloiber reported that telephone payments are not efficient, and hopes the online payment will become more standard. The Information Services budget has a proposed increase of 2%. The IS department has no significant changes in their activities, their increase is due to software maintenance agreements. Councilmember Nawrocki questioned the amount of support IS staff provides to the library. Director Kloiber reported that one of the IS technicians spends a majority of his time supporting the public computers at the library. Manager Fehst reported that the City chose to support the public computer system at the library in house rather than pay for the county to provide the service. Director Kloiber stated he will provide a detailed list of the support provided. Director Kloiber reported the Finance Department will be acquiring new software/accounting system in the near future, as the current system is antiquated. Kloiber suggested a new financial management system would prompt an organizational change in the City, noting finance department employees would do less data entry, and more call center type support. Director Kloiber reported that some cities in the area have made the change, and there are a handful of vendors. Kloiber clarified that while this is the 2015 budget, it is a multi-year phasing process. A new system would be able to run on the city’s current network, rather than a separate main frame. Mayor Peterson questioned the funding source. Director Kloiber noted that the designated fund has a balance of $435,000; noting not all is available for the financial system. Liquor Store Finance Director Joseph Kloiber reoorted that there are not significant changes in the proposed budget, projecting a modest increase in sales due to inflation. Kloiber reported that Store 1 is the main headquarters, thus incurs additional expenses. The operational budget increased about 2%, including contingencies for the next three years including labor agreements. Director Kloiber informed the Council that store #2, has seen a decline in activity. about 8% gross profit, may be the new normal. The City is making attempts to get more traffic through the smaller stores. Councilmember Williams expressed concern with the bottom line, noting payroll & fringe benefits are high. Manager Fehst commented that the salaries are based on union contracts. Director Kloiber commented that the gross profit of 25% is about the state average, noting we will need to stay competitive, as we are in an urban area. Councilmember Williams commented that expenses will increase as the buildings age. Kloiber commented that it is likely the interest expenses will decrease as the operating cost increase. Director Kloiber stated he will provide an analysis of labor costs. Manager Fehst commented that rents were scheduled to triple in costs, so it makes sense to own the buildings, and build equity. Director Kloiber commented that the likelihood of maintaining the liquor stores while renting was slim. Director Kloiber stated that labor costs are higher than many others, even higher than other cashiering jobs. It was reported these salaries are covered under labor contracts. City Manager Fehst reported the council will discuss the General Government Budget at the October 6 meeting. Meeting adjourned at 10:06 PM.