11-25-03 WSNovember 25, 2003
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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
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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-
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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:
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Eugen J. axwell, Mayor
COUNCIL MEMBERS: