10-25-05 WSOctober 25, 2005
Page 1
MINUTES
CITY COUNCIL WORK SESSIQN -October 25, 2005
A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell
at 6:30 p.m. on October 25, 2005, at the City Hall. Council members Brausen, Rowan and
Thompson were present. City personnel present were City Manager Rick Getschow; Finance
Director Christine Harkess and Public Works Director Steve Stadler.
Facilities Financial Update
Finance Director Harkess said the facilities project is almost totally finished. There is a
remaining bond fund of $336,385. This amount will be used to pay down the outstanding debt
once the bond is callable. It could be timed so that we would be able to use the paydown as a
means to avoid raising the debt levy. She commented that it is highly unusual for a project this
big to come under the estimate. She noted that part of the "over budget" amount for the police
facility is that all the radios and security expenses were put under their budget even though the
equipment was spread over all three facilities.
2006 Budget - Enterprise/LTtility Funds
Ms. Harkess said these are the final four budgets to look at and asked for specific
questions. Mr. Rowan asked why there was so much overtime in line 501 under Refuse. Mr.
Stadler said one reason is the bulk drop-off.
Water Fund
Ms. Harkess said that if one looks only at the cash income and expenses, this fund makes
money. When depreciation is taken into account, it does not. She projects that by 2009 the
working capital will be at a loss. She feels the rate should not stay the same for 5 years as
expenses go up every year. If one waits, it takes a bigger increase to catch up and citizens are
unhappy. Mr. Getschow suggested a rate change every two years. He added all budget figures
were based on present plans. Mayor Maxwell asked about progress with the new water meters.
Mr. Stadler said Pat will get the information together, but it is proceeding quite well.
Sewer Fund
Ms. Harkess said that since the late 1990's this fund has not had a good net income and
has had net losses since 2002. Working capital is also at a loss. She will be monitoring this fund
closely. She noted sprinkling gallons were taken off the water usage for figuring sewer charges.
Mr. Getschow noted this is a common practice for municipalities as residents should not pay to
treat water that does not go through the sewer system. Ms. Harkess noted that one problem is
that the Met Council sets the rate schedule. Mr. Brausen noted that it must be emphasized to the
public that the new rate increase in 2006 will bring charges back to the 1993 rate. Mr. Brausen
asked if sprinkling gallons are taken off business charges; Ms. Harkess will check. Mr. Stadler
noted that the 2007 capital improvements amount of $275,000 is for lift station 1, which he
would like to eliminate from the system.
Storm Sewer Fund
Ms. Harkess said this fund is doing okay. As a result of the outstanding debt in this fund,
the scheduled 50¢ increase in 2006 should occur. The city may need to sell bonds in 2008 due to
the $642,000 project in 2007.
October 25, 2005
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Refuse Fund
® Ms. Harkess said that disposal income pays for the other services. Mr. Stadler noted that
in 2006 and 2007 the downtown containers will be replaced. In 2Q07 there will be a recycling
fee increase. Brush and yard waste curb pick-up will be $2 per bag, which compares favorably
to the $2.50 to $4.00 charged by private companies. Ms. Harkess suggested the city do a city
comparison for Hopkins residents. Mr. Brausen asked about recycling fee increases. Mr. Stadler
says the contract has periodic increases. He had hoped that the city would save on disposal fees
through the recycling program, and this has happened. Mayor Maxwell asked about servicing
the downtown containers. Mr. Stadler said St. Paul has had them for some time and really likes
them; he thinks they will pose no problem for pick-up. The old 21 aggregate containers will be
used at Shady Oak Beach and other locations. Ms. Harkess said if the water and sewer funds
continue to not maintain themselves, the Council might want to have a rate analysis done.
City Manager Getschow said that as part of the pre-budget discussion, the topic of
increasing hours for apart-time public works employee was brought up. Mr. Stadler said he
thinks this position could assist engineering with GIS needs, such as creating an electronic data
base for information on streets and utilities. This employee already receives full benefits so the
only increased cost would be ten hours of wages per week. Mr. Getschow felt this could be fit
within the2006 Budget assuming other revisions that have been previously discussed are made.
Mr. Rowan said he thought as long as benefits were already being paid, it was a good idea.
Mayor Maxwell said he was willing to consider it.
Mr. Thompson asked what depreciation was figured on. Ms. Harkess said it is basically
figured on everything -equipment, buildings, and infrastructure. She will check the schedules
and get that information to Council.
Future Agenda Topics
City Manager Getschow said the work session calendar for this year is basically filled,
but he would like suggestions for the 2006 calendar that he is beginning to create. So far he has
listed meeting with faith group representatives, an Alliant Tech tour, joint meeting with
Minnetonka on issues other than Shady Oak Road (such as boundary, zoning, etc.), a joint
meeting with St. Louis Park (to discuss Knollwood, Blake Road, etc.), and technology issues.
He asked for further input on what is meant by technology-is it web site, "paperless" records,
etc. Mayor Maxwell mentioned laptops.
Suggestions included more frequent reports at Council meetings from the Family
Resource Center and the Activity Center; in fact, presentations should be given at each Council
meeting by some department, etc. This could include the Citizens' Academy next spring. The
Vision and Mission statement would be a good topic.
Mr. Thompson asked if there could be a presentation on how the facilities came under
budget. Mayor Maxwell suggested it include slides of "before and after" photos. Mr. Getschow
agreed now would be a good time to do that.
Other
Mr. Getschow asked for more names for invitees to Diane Johnson's events. Mayor
Maxwell suggested there be a Hopkins historical book for people to sign.
Mr. Thompson discusses the letter received from the church group that rents the HCA.
He expressed appreciation for the way Ms. Harkess gets back with information when a
question is raised by the Council.
October 25, 2005
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He wondered if we have had other insurance-related expenses that meet the deductible
because we could still consider a full fix of the clocktower.
He would like the city to inform the citizens about how Hopkins has kept care of its
infrastructure -the streets, etc. -- when so many surrounding communities are now getting in
financial trouble because they did not.
He asked about the armed robbery on Blake Road, understanding that there will be a
possible meeting with St. Louis Park. Mr. Getschow reminded the Council of the upcoming
work session that will discuss crime issues such as this.
He asked that the city send a letter of congratulation to the Hopkins special education
teacher who got a national award.
Mr. Rowan asked that the citizen letter on noise on Mainstreet be addressed. Mr.
Getschow said a neighborhood meeting may help. Mr. Brausen feels it is important to get "all
the players" in the same room.
Mr. Brausen stated that the work being done with the performance evaluation system and
the customer service training that he read about in the Friday update was good. He is pleased to
see progress on these issues.
Mr. Brausen commented that he appreciates the immediate answers to Council questions
that he has received right away, sometimes directly from department heads (in this case finance).
On motion by Mr. Brausen and second by Mr. Thompson, the meeting adjourned at 8:45
p.m. on a vote of 4-0.
Kasey Kester, Secretary
<,
ATT$ST:
Eugen J. 1Vlaxwell, Mayor