05-10-05 WSMay 10, 2005
Page 1
MINUTES
CITY COUNCIL WORK SESSION -May 10, 2005
A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell
at 6:30 p.m. on May 10, 2005, at the City Hall. Council members Johnson and Rowan were
present. City personnel present were City Manager Rick Getschow, Public Works Director Steve
Stadler, and Finance Director Chris Harkess.
Sewer Backup Insurance
Finance Duector Hazkess cautioned that even if the Council decides to apply for the
sewer backup insurance, the policy could be denied. However, she thinks Hopkins would have
no trouble meeting the criteria. Premiums would be 8.5% of the city's municipal liability
premium, about $6700 additional cost; if the main policy premium goes up, so would this. She
sn*nmarized the conditions that must be met for an owner to get relief. She noted that the
deductibles of the city's regulaz insurance apply also to this insurance. There is a limit of
$10,000 per single sewer connection. She recommends putting the cost with the operational
budget of the sewer fund instead of a separate line item on the billings.
Council members' questions resulted in the following information: staff does not know
how long people would wait for payment. A major catastrophe, which is not covered by the
insurance, is defined as a lift station stoppage of 72 hours, a 100-year rain, or an event that
results in FEMA assistance being available. The insurance covers commercial buildings. Mr.
Stadler commented that residents view the sewer system as part of the city, unlike other utilities.
Mr. Rowan commented the city should encourage residents to immediately contact their
insurance agents and inform the city if their insurance does not cover all damages; he feazs some
residents may cancel their sewer coverage when they heaz of the city policy. He added later this
is a nice thing to do for residents that does not cost the city very much. Mayor Maxwell asked if
there is a way to have Roto-Rooter and other companies notify the city when they do work so the
city could jet vac the main; Mr. Stadler said he has tried to do that and did not succeed. Mayor
Maxwell said the city needs to encourage residents to call the city any time they use Roto-
Rooter, etc., so the city can vac the city lines; the approach should be "Help your neighbors."
Mr. Getschow noted there is sewer information in the `welcome packet" for new residents, and it
was in the Highlights again. He added any advertising should stress the sewer backup insurance
is supplemental. Mayor Maxwell said he still has doubts the city can get so much insurance for
the premium; Ms. Hazkess will double check the per building/ per occurrence language.
Publicity was discussed. Ms. Johnson mentioned the web site and newsletter. Mayor
Maxwell suggested the Sun Sailor. Mr. Getschow added the welcome packet. Mayor Maxwell
asked how much the refrigerator magnets used previously cost; Mr. Stadler said he will check.
Ms. Johnson suggested also checking the cost for the paper type the waste management used.
Mayor Maxwell said it would be good to cover this at a council meeting to start public
awazeness.
Regazding the two recent occurrences, Mr. Rowan said he would talk to the man who
contacted him. General Consensus was staff should get more information, especially in the azeas
of getting the word out, making sure it is not "too good to be true," and if there aze conditions
under which the city could be dropped.
Marustreet Refuse Container Changeont
Public Works Director Stadler said staff would like to replace downtown garbage
receptacles with those made by Toter, Inc., which aze used successfully by St. Paul. Half would
be replaced in 2006, the rest in 2007. Advantages would include: ability to empty containers with
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the automated refuse truck; reducing possibility of worker back injury; less upkeep; lazger size.
Presently there aze 54 refuse containers in the downtown azea. Cost for the new containers is
_ $420 each, including shipping; this is $301ess than the current containers cost, however, there is
an additional cost for the City Logo. There is a two-yeaz warranty but he thinks they should last
10 years. They would have to be positioned where the truck could reach them and would be
emptied eazly Friday mornings. Delivery time is 6-8 weeks after ordering. He showed a container
to the Council, demonstrating the gravity lock. There is an item in the refuse fund to buy a reaz
loader truck in 2011; this could be moved back 5 yeazs.
Ms. Johnson asked if the old ones would have resale value. Mr. Stadler thought not.
Mayor Maxwell suggested using the concrete containers in the pazks as the present bagels aze
constantly tipped over, etc. Answering Mayor Maxwell, Mr. Stadler said the logo costs $40.
Mayor Maxwell said he wondered if they would show too much positioned by the curb. Mr.
Rowan noted some type of identification would need to be put on them someplace. Ms. Johnson
asked about recycling receptacles; Mr. Stadler said they don't work in the pazks.
General Consensus was Mr. Stadler should look into the receptacles fiuther, getting
answers on placement on Mainstreet, use of the truck, if the brackets aze replaceable, where the
present ones could be used in the pazks. All agreed the logo is not needed.
2004 Budget Adjustments
Finance Director Hazkess noted that the 2004 fiscal year ended with revenues of
$155,409 over the budget and expenditures of $109,703 under the budget. This takes into
account the moving of $65,665; $11,820 for the uncompleted digital imaging project and
$53,845 for additional 2005 contingency. In addition Public Works requests moving $30,000
from the 2004 pazking fund to 2005 to allow for uncompleted structural ramp work. It was noted
the franchise fee income was under budget, but was for only a partial yeaz; there is a $166,250
pass through for Hopkins Mainstreet Economic Development; and there is a $75,000 loan write
off for Tax Increment 1-2 per the development agreement. She added the latter will be in the
2006 budget as the developer now has a history of meeting his obligations. Mayor Maxwell
asked about the delinquent tax income. Mr. Getschow said this is money from taxes that were not
paid when due; Ms. Hazkess added it is so uncertain that delinquent taxes are not a budgeted
item, as then payment is uncertain.
General Consensus was Ms. Hazkess should put together a council report on budget
adjustments to be put on the consent agenda. Ms. Hazkess should check if the big decrease in
telephone expense is due to the new system; this can be put in the update.
Discussion of 2006 Budget
There was discussion of the 2006 budget goals. General Consensus was "Recognize
employees that help the City save money" and "Pursue legislation for Food and Beverage tax or
local option sales tax and pursue street utility fee" should be dropped. The portion of the latter
goal that mentions "review utility franchise fee" should remain.
There was discussion of the franchise fee. Mr. Getschow recommended the fee continue.
Council would pass a resolution to continue it. Does Council want a sunset clause? Ms.Johnson
noted the city could have financial problems if a deadline passed unnoticed. General Consensus
was to renew the fee without a sunset clause.
Mr. Getschow noted pre-budget sessions by department will start in June, with the fire
department first. Every work session from then on will have budget items. Issues may be
affected by levy limits or property tax freezes by the legislature. Mayor Maxwell asked why the
fire department was well over budget; Ms. Hazkess will check on it and report back. Ms.
Johnson asked about the reverse referendum before the legislature; Ms. Hazkess said the city
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may have to design two budgets -one for if it passes, one for if it does not. Ms. Johnson noted a
referendum would be an additional city expense.
Ms. Hazkess noted the budget calendaz is the general deadlines, not pre-budget
department deadlines. She added a budget calendar is necessary to get a budget awazd. Ms.
Harkess said one constant problem is that the state money comes in just before the state auditor
checks reserves, thus getting a misleading high figure. Mr. Getschow noted that if the fire
department does get a grant for a new truck, the city would need to spend its money eazlier to
complete the purchase.
Other
Ms. Johnson asked if any Zoning and Planning members had signed up for the land use
class. Mr. Getschow said he will keep pushing it; he does not know of any yet.
Ms. Johnson said the City Manager 6-month review should be added to the July agenda.
Mr. Getschow will talk to Jim; he suggested the 2nd meeting in July or in August. He will ask Jim
if the review can be a model for future use. He added he is working on updating performance
reviews for the whole staff. He encouraged Council members to give him feedback before the 6-
month review.
Mayor Maxwell asked if a May 31 work session was needed. General Consensus was it
was not.
Mr. Getschow said he could not attend the LRT open house as he is leaving Wednesday
for a city managers meeting. Mr. Rowan said he planned to attend.
Mr. Getschow noted there has been a second complaint from New Marketplace Lofts
about motorcycle noise when the bars close.
Ms. Johnson commented on the letter in the Sun Sailor about the dog issue. Mr.
Getschow said he saw it as a letter to the neighbors, and has passed it on to the police.
Ms. Johnson moved adjournment. Mr. Rowan seconded. On a 3-0 vote the meeting
adjourned at 8:40 p.m.
Kasey Kester, Secretary
ATTEST:
G~'~"r
Eugene J. ell, Mayor