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11-25-03 WSNovember 25, 2003 Page 1 MINUTES CITY COUNCIL WORK SESSION -November 25, 2003 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:30 p.m. on November 25, 2003, at the City Hall. Council members Brausen, Jensen, Johnson and Rowan were present. City personnel present were: City Manager Steve Mielke; Ciry Attorneys Jeremy Steiner and Wynn Curtiss; and Finance Director Lori Yager. Also present were HCA, Inc. boazd members Jim Shirley, Marge Matthison-Hance, Susan Hanna-Bibus and Mary Jo Banos. Review of City Attorney Proposal Mr. Mielke said City Attorney Miller is retiring from doing city work so it was felt to be a good time to review the azrangement with Miller, Steiner, and Curtiss (MSC), who have sent a proposal to the city. The rates are competitive, and probably lower, than other firms doing city law. The new proposal asks for one major change, [hat third parry work be charged at their normal hourly rate, rather than their city rate, which is about half their normal rate. He recommends that there be an annual review of the relationship between MSC and Hopkins. Mr. Steiner said he has been doing most of the regular city work other than attending meetings so there will be very little transition caused by Attorney Miller's retirement. Answering Council questions, he said they carry insurance and would be willing to provide proof to the city; attendance at Zoning and Planning is on call and they would be willing to do so for Council meetings. Mr. Curtiss, who handles most of the city prosecutions, said prosecutions are revenue-producing but the County's enforcement of fines is very poor so now the policy is to make no deals unless the fine is paid beforehand. Western suburb city prosecutors are forming a group to see if enforcement can be strengthened. General consensus was the Council is very happy with the work of MSC and that a formal agreement to continue the relationship is not needed. Mayor Maxwell asked the time spent at Council meetings be tracked this year and that proof of insurance be shown to the city. HCA Inc Donation Discussion Ms. Banos said the way the cooperative agreement is worded, HCA, Inc. would owe Hopkins $8500 this yeaz, due to grant money for next year's programs being included in the income figure. HCA, Inc., is asking that amount be forgiven; HCA, Inc. does intend to make its loan payment. Ms. Jensen said she never thought grant money would be included in that income figure, that the income was to be box office profits. Mr. Brausen agreed, adding that considering such monies could jeopazdize future grants. Ms. Banos said without the grant monies, there would be a negative cash flow. Mr. Shirley noted each concert is a new enterprise, a new risk. Mr. Mielke said he agrees with the HCA, Inc., premise, and feels sponsorships and grants should be separated. He added the reason for the agreement was that Hopkins would share in profits to repay it for what it has paid out for HCA; he does not want to take away HCA, Inc.'s incentive for profit. He feels the agreement needs to be revisited. Mr. Brausen added the "ticket tax" needs to be considered with this. General Consensus was a resolution to forgive the $8500 should be presented on December 16. Someone from the Board should be present at that meeting to answer questions, etc. The November 25, 2003 Page 2 agreement should be discussed at a future meeting. 2004 Budget Status and Summary Mr. Mielke briefly went over the summary sheet, noting the 2004 adjustments resulted in a $1,530,300 net savings. Ms. Johnson asked how to explain the tax statements. Ms. Yager said market value increased more than she figured; she included the HRA levy, the county did not. Mr. Mielke noted the fact that Council worked the average levy from $143 to $112 since September needs to be pointed out. Ms. Yager added that is 14 % rather than 18 %. Mr. Brausen asked about franchise fee uses. Ms. Yager said if the rate were $3.50 per meter it could be sufficient to retire the facility debt, which would result in $20 per year less for homeowners in levy. Ms. Johnson noted that the franchise fee would not be tax deductible; Ms. Yager agreed it would basically be "a wash." Mr. Rowan said he would like the actual language in the agreements on differentiation between utility rates and how it can be interpreted, adding he thinks electricity should be higher as it hits more homes and the apartments. Public Works Reorganization Mr. Mielke said he feels Option 3 was the one preferred by the Council. Mr. Stadler is looking at job descriptions and feels he can have superintendents grade out at level 7. Mr. Stadler estimates two to three years for a full changeover; Mr. Mielke thinks it will be shorter, but at least one yeaz. Transition costs are estimated from $50-110,000 per year, partly because in-house and outside hiring for open positions would change those figures and no assumptions are built-in as to who would fill the positions. The Water Fund is an option for covering up to 85 % of those costs. He added if current superintendents take the lower rated positions, their salazies would be frozen until salary rates "catch ~up." Mayor Maxwell said he still does not like the idea of the Operations Manager position. He asked what costs would be if no changes are made in the present organizational format. Ms. Yager said she did not have those figures but could get them. Mr. Brausen said he is not sure the issue of the rank-and-file workers has been addressed; Mr. Mielke said the net reduction there is 3. Ms. Jensen said she feels there are too many divisions in Public Works; that is why she likes the Operations Manager. Mr. Rowan said if one person does the administrative work, then superintendents should be able to spend more time on the actual work processes. Mr. Brausen said he thinks the Operations Manager should start lower than a 9 and work to that level as he trains in; Mr. Rowan agreed. Ms. Yager said Mr. Stadler was asked to eliminate a superintendent; he did not want to, but has tried to find a plan that will do that and still work for his division. Mr. Brausen commented if the furlough is increased, Public Works could be left as is while along-term solution is figured out. He added Mr. Stadler had said Supervisors "would not work shoulder to shoulder with work crews." He would like clazification of that and the job descriptions. Consensus was this needs further discussion, including clarification of job descriptions. Ms. Yager should come up with "no change to Public Works" figures. Furloughs Mr. Mielke said he and Ms. Yager had come up with 9 possible furlough Fridays next to holidays. While furloughs would be feasible in the Police Department for the officer rank if the 4- November 25, 2003 Page 3 hour overlaps were used, he feels the likelihood of needing to cover with overtime is not worth the risk. Ms. Yager said 6 days of furlough would equal a 2'/s% pay cut. Answering Mayor Maxwell, Mr. Mielke said if Public Works had to work during those times in winter it would be a "call-in event" ; he needs to look at their contract for costs. His concern is the effect on morale if they have unpaid days and cannot use vacation time to offset them. Ms. Jensen felt they should be able to use vacation days so their paychecks would not be smaller. Mayor Maxwell felt 4 days, one per quarter, would be good. Mr. Mielke asked for the rationale to present to staff. Mr. Rowan said "saving someone's job." Mayor Maxwell suggested staff be given a questionnaire if they would rather have 4 furlough days with no pay or 7 furlough days with the ability to use vacation days. General consensus was to do the questionnaire Mayor Maxwell suggested. Mr. Mielke reminded Council members the budget hearing was December 8 at 6:30 p.m. Other Ms. Jensen said she had received a call about Ms. Sanders' issue. Mr. Rowan said he had received calls about Interlachen Park. Some residents would be willing to put up the boards for hockey. Mr. Mielke said Mr. Stadler feels he no longer has staff to maintain the boards and flooding. Ms. Johnson noted the ice is there. Mayor Maxwell suggested Ray call the resident to discuss how many men would be available and how long they could work. Mr. Mielke noted a release of liability might also be needed. Mr. Maxwell moved adjournment. Ms. Johnson seconded. Meeting adjourned at 10:55 p. m. Kasey Kester, Secretary ATTEST: ~~~~~2~ Eugen J. axwell, Mayor COUNCIL MEMBERS: