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07-08-03 WSJuly 8, 2003 Page 1 MINUTES CITY COUNCIL WORK SESSION -July 8, 2003 Mayor Gene Maxwell called a work session of the Hopkins City Council to order at 6:30 p.m. on July 8, 2003, at the City Hall. Council members Brausen, Jensen, Johnson and Rowan were present. City personnel present were: City Manager Steve Mielke, Police Chief Craig Reid, Public Works Director Steve Stadler, and Finance Director Lori Yager. ERP Review Ms. Yager said department heads had worked very hard at modifying the Equipment Replacement Plan. Their changes will reduce expenses by approximately $1,500,000 in the next 20 years. She is planning a 2 % increase in the transfers from the General Fund each year. With the changes made by department heads, it will be possible to fund the improvements to the Pavilion, with the school district payback to be put into the ERP fund over the next 5 years to replace those funds. She went through each equipment replacement item by department. Ms. Jensen suggested that an education piece as to why fire equipment has to be replaced when the public sees it used so little would be appropriate. Other Council members agreed that maintenance runs, OSHA issues and code requirements need to be explained. Mr. Mielke cautioned that the cause of the failure of the fire ladder at the last fire is being explored; if it was the equipment wearing out that caused the failure, that could mean immediate refurbishment of that component. He also suggested that year models be added to the vehicle descriptions, noting the Luverne Pumper is a 1982 model. Mr. Mielke will find out why the Heavy Rescue cost has been estimated at $100,000 more. Chief Reid noted Last year his department refurbished light bars on the squad cars rather than replacing them. This causes more drain on the alternator, and has caused some problems; but he feels he and his department can manage, as new bars cost $1600 apiece. He noted state bids save the city money on squad cars. Ms. Yager noted the PT cruiser and SWAT van have never been in the ERP as Walser has donated the lease cost for the first and the SWAT van is an old Public Works vehicle. Chief Reid said he is not asking that either be replaced and put in the ERP. Ms. Yager said she is very comfortable with the revised plan and fund balance. She noted that Hopkins has never had to issue capital notes because they have maintained the ERP fund. General Consensus: Council was comfortable with the revised plan. They feel each department should take 3 minutes each at the August 6 Council meeting to explain their part of the ERP when it comes to the Council for approval. Model-years will be added to equipment descriptions. Other Enterprise Funds Audit Ms. Johnson asked about the state audit of enterprise funds. Mr. Mielke said the only potential issue for Hopkins is the refuse service . Ms. Yager said she could show the city saves residents money over commercial vendors. Mr. Mielke noted that Ron Abrams' issue is that if a city enterprise is so profitable it underwrites other costs, it should be figured in the "fairness" issue. Steve Kelley has proposed in the past, that cities should get into communication enterprises. Moratorium Mr. Mielke said Mr. Frethum has asked for a waiver. City Attorney Curtis thinks this may lead to a lawsuit as a possible buyer of the property made a phone ca112 days before the moratoriums' publication date. Pertinent issues include when a house is on two lots, can they be split for two houses; setback issues; minimum width of houses. Mayor Maxwell said the core issue is does the Council want to look at 35' lots or get rid of the moratorium. Mr. Mielke said the city couldn't keep him from building; the question is regulating the building. Mayor Maxwell said neighbors are concerned. Mr. Brausen said the effect on neighboring properties is a concern of his. Mr. Mielke, answering his question, said there are lots July 8, 2003 Page 2 only 33.5 feet wide. Mr. Rowan said creating un-buildable lots are a problem. General consensus was to keep the moratorium in place, but the city should study the issue in a timely fashion. Mr. Mielke noted he and City Planner Anderson are meeting to discuss issues. Taurus Properties Mr. Mielke noted letters have been sent to all parties. The Westwood engineer replied with a denial. He feels this will be a long process. Tobacco & Gifts Mr. Mielke said a sign on the door says they will re-open the 16"'. There have been 2 tobacco license applications recently for this site, but the original owner has not withdrawn. City staff is researching options. Mayor Maxwell said Abe says he is buying the business. Ugorets Law Suit Mx. Mielke said the judge has put the case on hold until October, as he wants Court/County employees to review and report. Hopkins lost the non-binding arbitration, but the findings are not part of the Court case. Court-ordered mediation is required this summer. Budget Cuts Mr. Mielke asked for feedback on his speech at Rotary. Mr. Rowan said he did well on "here's what we are doing" but felt he should put more blame on the state. He added a case couldn't be made with the public if they don't hurt. Mr. Brausen feels the city has to become more aggressive, as was done for the public facilities project. Mr. Rowan asked if the full 60% isn't levied back, could it affect future levies. Mr. Mielke said by current law, it couldn't; but cities that did not levy to the limit the past 2 years have now lost that. General Consensus was that Mr. Mielke should present his 2004 plan at a July 24 special work session or at the August 12 session. A taped presentation should be shown on cable and articles put in the Sun-Sailor. National Night Out It was agreed all would travel together, meeting at City Hall at 5:30 p.m. Mr. Brausen asked that his area party be visited early in the evening. Passing out budget information and comment sheets was discussed. Other Issues. Mr. Brausen asked that the Depot be added to the August 12 work session. Ms. Jensen asked about liability issues if rental groups move Teen Center equipment. Mr. Brausen mentioned the award received by the Activities Center Director. Both Mr. Brausen and Mayor Maxwell commented how good the band shell looks. Ms. Johnson moved adjournment. Ms. Jensen seconded. Meeting adjourned at 9:10 p.m. Kasey Kester, Secretary A'1"1'5'1': ~~ Eugene J. xwell, Mayor COUNCIL MEMBERS: