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Agenda• • VI. HOPKINS CITY COUNCIL FINAL AGENDA November 5, 2003 7:30 pm THIS FINAL AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF THE CITY COUNCIL MEETING Schedule: I. CALL TO ORDER 6:00 pm — City Council Work Session 7:15 pm — Certify Canvassing Board 7:20 pm — HRA Meeting 7:30 pm — City Council Meeting Work Session at conclusion of City Council meeting U. OPEN AGENDA - PUBLIC COMMENTS /CONCERNS (Public must fill out a Speaker Request Form. Three minute limit for each person) III. REPORTS — COMMITTEES /COMMISSIONS 1. Zoning and Planning Commission 2. Chemical Health Commission IV. CONSENT AGENDA 1. Minutes of October 21, 2003 City Council Meeting 2. Minutes of October 14, 2003 City Council Work Session 3. Minutes of October 21, 2003 City Council Work Session 4. Minutes of October 28, 2003 City Council Work Session 5. Ratify prior month's disbursements Vote: Brausen Jensen Rowan Johnson Maxwell V. NEW BUSINESS 1. Approve feasibility report and order public hearing, 2004 street improvem nts; (CR 2003 -163) — J. Anderson Vote: Brausen Jensen Rowan Johnson Maxwell 2. Minnesota Metro Public Safety radio project budget; (CR2003 - 161) - Kurtz Vote: Brausen Jensen Rowan Johnson Maxwell 3. Professional services agreement, radio systems upgrade; (CR2003 - 162) — Kurtz Vote: Brausen Jensen Rowan Johnson Maxwell 4. Facilities project update; Stadler Vote: Brausen Jensen Rowan Johnson Maxwell ADJOURNMENT QUESTIONS OR COMMENTS? CALL THE RAZZLE LINE — 939 -1421 (The Razzle Line is the City of Hopkins voice message system) • • I. Call to Order II. Canvass of Elections III. Adjornment 2003 CANVASSING BOARD AGENDA November 5, 2003 • A regular meeting of the Hopkins City Council was held on October 21, 2002, in the Council Chambers of the Hopkins City Hall. Present were Mayor Maxwell and Council Members Brausen, Jensen, Johnson, and Rowan. Also, present were staff members Mielke, Genellie, Stadler, N. Anderson, Yager, Strachota, Elverum, Stahmer and City Attorney Jerre Miller. I. CALL TO ORDER Mayor Maxwell called the meeting to order at 7:30 p.m. II. OPEN AGENDA - PUBLIC COMMENTS AND CONCERNS William Bleecher, 1301 Highway 7, stated that he lives in the Brentwood --.. Townhouses. He cleaned out his garage and took the items to the drop off site and was refused. Steve Stadler, Director of Public Works, stated that the drop off site is for our refuse customers. Mr. Bleecher lives in a town home and we do not collect garbage there. III. PRESENTATION 1. Community Image Awards Community Image Awards are given annually to individuals and businesses that have made a visual Improvement to their property or have demonstrated continued superior maintenance of their property. Mayor Maxwell presented the awards. The following homes /owners received the Community Image Awards, a plaque and a gift certificate to Belissimo at the Market Lofts: Single - Family Residential Mark and Lisa Curtis, 43 — 18t Ave N Sandra Shingler and Bob Affeldt, 18 Jackson Ave S Multi - Family Residential Citygables, 32 — 11 Ave S 2. Hopkins Area Family Resource Center Tenth Anniversary Kersten Elverum, president of the Hopkins Area Family Resource Center, introduced the board of directors and Nora Davis, the administrator. The Resource Center serves the community and is a resource for City staff. Nora Davis thanked the City for the partnership over the last ten years and for the support that the City has given the Center. October 21, 2003, City Council Meeting Minutes Page 1 Steve Mielke, City Manager gave a brief history of the conception of the Family Resource Center. Mr. Mielke explained that the Family Resource Center provides services to the community that the City cannot and complimented Ms. Davis on her leadership qualities. 3. Presentation of Budget Award The Government Finance Officers Association's Distinguished Budget Presentation Award represents a significant achievement by the recipient. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the City had to satisfy nationally recognized guidelines for effective budget presentation and be rated "proficient" in all four categories. Lori Yager, Finance Director, presented the award. This is the second consecutive year that Hopkins has received the award. IV. REPORTS - COMMITTEES /COMMISSIONS There were none. V. CONSENT AGENDA 1. Minutes of October 7, 2003 City Council Meeting 2. Miscellaneous License Applications 3. Accept Streetscape Plan, Blake Road (CR2003 -155) 4. Lawful Gambling Premises Permit for Raspberry Festival (CR2003 -156) Council Member Johnson moved and Council Member Jensen seconded a motion to approve the Consent Agenda. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. VI. PUBLIC HEARING 1. Application for Renewal of Currency Exchange License for Pawn America (CR2003 -154) Pawn America has applied for a renewal of their Currency Exchange License. The Department of Commerce issues the license and regulates the license. The City is required to hold a public hearing and approve or deny the license. Mayor Maxwell opened the public hearing. No one came forward. October 21, 2003, City Council Meeting Minutes Page 2 • • Council Member Brausen moved and Council Member Jensen seconded a motion to close the public hearing. The public hearing was closed by unanimous consent. Council Member Rowan moved and Council Member Brausen seconded a motion to adopt Resolution 2003 -93, Resolution Approving the Renewal of a Currency Exchange License for Pawn America. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. Mayor Maxwell stepped down at 7:54 p.m. Mayor Pro Tempore, Diane Johnson, presided over the meeting. VII. OLD BUSINESS 1. CUP - For Gas_Station at 1702 Mainstreet (CR2003- 1.59)- At the September 2, 2003 City Council meeting, the City Council denied a rear yard variance to construct a gas station at 1702 Mainstreet. The conditional use permit application was continued. The site is currently empty, but at one time was the site of a gas station. A gas station is allowed as a conditional use in the B -3 Zoning District. The applicant is proposing a 1763- square -foot building in the southwest corner of the site with three gas pumps. The use would be in compliance with the Zoning Ordinance and Comprehensive Plan. The Zoning and Planning Commission voted five to one to recommend approval. John Kosmos, architect for the project, and Barry Goldstein, co -owner of the site, came forward. Mr. Kosmos reviewed the site plan and the changes that had been made since the September 2n meeting. In answer to questions raised about the site lines of the pumps, Ms. Anderson stated that the site lines would be worked out between the Fire Marshall and Mr. Kosmos before any building would begin. A plan to contain any fuel spills and prevent the spill from entering the storm sewer system needs to be submitted before construction begins. Council members discussed stacking and parking. Mr. Goldstein assured the Council that deliveries would be done outside of business hours. Council Members discussed the overflow parking from Affordable Auto. In answer to questions from the Council, Ms. Anderson stated that condition seven of the resolution means that as long as the improvements are on the site, the owner of the site has declared that the separate lots, property, will remain in common ownership. October 21, 2003, City Council Meeting Minutes Page 3 Council Member Brausen expressed a concern that employee parking from Affordable Auto would move to residential streets. The Council directed staff to send a letter to Affordable Auto asking them to instruct their customers and employees to not park on the residential streets. Council Member Rowan moved and Council Member Brausen seconded a motion to adopt Resolution 2003 -95, approving a conditional use permit to construct a gas station at 1702 Mainstreet. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. VIII. NEW BUSINESS ..•,1. Resolutions Authorizing Submission of EGA to Met Council, DEED, and Hennepin County for Luther Development (CR2003 -160) As a part of the proposed redevelopment of the Knox property site by Luther Company, the city has been asked to support and submit grant applications for environmental remediation to the Department of Employment and Economic Development, Metropolitan Council and Hennepin County. Only Cities can apply for the funds. The City is the sponsor of the applicant. Various forms of soil contamination exist on the property which must be addressed before any development can occur. Grant funds from these agencies would be used for soil remediation and other necessary cleanup. Council Member Johnson asked if the calculated amount of $912,000 would be sufficient for the clean -up. Kyle Allison, General Manager of Hopkins Honda, stated that Phase I and II environmental studies were done and that the result of those studies determined the amount to request. Staff answered that more could be applied for if the amount was not sufficient. Council Member Jensen moved and Council Member Brausen seconded a motion to adopt Resolution 2003 -97, Resolution 2003 -98, and Resolution 2003 -99, authorizing staff submittal of environmental cleanup grant applications to Minnesota Department of Employment and Economic Development, Metropolitan Council and Hennepin County in conjunction with the proposed Knox Property /Luther redevelopment. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. 2. Approve Lease - School District 270 Pavilion Mezzanine (CR2003 -158) In May, 2003, the Hopkins School Board and the Hopkins City Council approved a joint development of the mezzanine level of the Pavilion. The School District will use the space for the "Off Campus" Hopkins Alternative Program. The finished space in October 21, 2003, City Council Meeting Minutes Page 4 • the Pavilion, with the addition of an elevator and expanded restroom area will benefit both the District and the City. The lease will give the District exclusive use of the leased area from 7:00 a. m. to 2:30 p. m. The balance of the space and time will be allocated through a meet and confer process. The intent of the management plan is to ensure community needs are met while at the same time meeting the educational needs of the school district. Mr. Strachota, Facilities Manager, stated that the City Attorney has suggested language changes that will be made to the contract. These changes have not been incorporated into the contract that the City Council has seen. The Council discussed rental rates and the possibility of a policy on rentals. The Council also discussed insurance. Both the City and School District carry insurance on the area and the School District's policy names the City as Additional Insured.- Council Member Brausen moved and Council Member Rowan seconded a motion to approve the lease agreement between Hopkins School District 270 and the City of Hopkins for the leasing of the Hopkins Pavilion Mezzanine area with the minor changes that will be made in the language as approved by the City Attorney. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. 3. Third Quarter Financial Report (Memo) Lori Yager, Finance Director, reviewed the third quarter financial report. Overall revenues are up, mostly because of bond sales. Overall expenditures are down from last year. General fund revenues are also up due to the issuance of a greater number of permits. General fund expenditures are also down from last year because of cuts made by staff. Ms. Yager stated that the current financial position of the City is very positive considering the economic conditions. There was no action. 4. Prevailing Wage Study (CR2003 -161 When approving construction projects, the City is required to award bids to the lowest responsible bidder. The City does not have requirements for prevailing wages within its bidding documents. Both union and non -union contractors can bid on projects at whatever wage rates they pay their employees. Other levels of government have prevailing wage laws in place that require minimum wages by all contract bidders. It has been requested that the City of Hopkins consider adopting a prevailing wage ordinance. October 21, 2003, City Council Meeting Minutes Page 5 Bob Heise, President of the Builders and Contractors Association, stated that they are not in favor of a prevailing wage ordinance. Mr. Heise stated that several of their members are currently working on Hopkins projects. An ordinance requiring prevailing wage will hurt those contractors. Mayor Maxwell explained that tonight is for deciding if they want to look at studying the issue, not for testimony for or against the issue. Council Member Brausen moved and Council Member Johnson seconded a motion to instruct staff to prepare background materials for a discussion of a potential prevailing wage ordinance, and to place the discussion on a future Council Work Session. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. The City Manager announced that the next scheduled meeting will be on Wednesday, November 5 because November 4t is Election Day. Also the next scheduled work session will be on Wednesday, November 12, because the 11t is Veteran's Day. IX. ADJOURNMENT There being no further business, Council Member Brausen moved and Council Member Johnson seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at 9:20 p.m. Respectfully Submitted, Terry Obermaier, City Clerk ATTEST: Eugene J. Maxwell, Mayor COUNCIL MEMBERS October 21, 2003, City Council Meeting Minutes Page 6 • October 14, 2003 Page 1 MINUTES CITY COUNCIL WORK SESSION - October 14, 2003 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:30 p.m. on October 14, 2003, at the City Hall. Council members Brausen, Jensen and Johnson were present. City personnel present were: City Manager Steve Mielke; Assistant City Manager Jim Genellie; Activity Center Coordinator Susan Newville; Facilities Manager Jay Strachota; Finance Director Lori Yager; and Public Works Director Steve Stadler. 2004 Budget Review Ms. Yager said on November 12 Council needs to confirm the levy and budget so she can do the required publishing. Community Services Mr. Genellie said assessing services would now be handled by Hennepin County. Kate's salary will be a wash with the County, as they want her to complete this year and finish residential assessments. They will officially take over residential assessments in May, but are already doing the commercial ones. Inspection fees have been $150,000 more than anticipated this year; he hopes this will not trigger State problems as within a few years the picture will be much different. Ms. Johnson asked for discussion on health insurance as she meets with Fred Mulvaney Wednesday. She would like to see a discussion on the City's policies on cafeteria style benefits. Mr. Mielke said for at least 15 years each employee has had a uniform benefit amount, from which they can choose benefit options. Some contracts have already negotiated changes in the way this is handled. Ms. Yager said those who opt out of the medical insurance get a $50 cash payment each month. This saves the City money. Ms. Jensen felt the benefit was health insurance, not health insurance or a cash kickback. Mayor Maxwell asked that staff see how other cities are handling this situation. Mr. Genellie commented he would need to see how options would work with the HRA health reimbursement plan. Activity Center Mr. Mielke said the last figures given turned out to be too high on savings, as the cutbacks on nights and weekend hours would also cut revenues. The new proposal would result in $20,000 savings, with the possibility of more savings if rental income increases. The Center is to be open Monday- Thursday, which would keep most senior activities in place. Otherwise the center would be open only for rentals. Ms. Newville said the regular part- timers (herself, Debby and Sharon) would cover Monday, Tuesday and Thursday evening rentals so only other rentals would require other part- time help. Staff would do all maintenance. Friday youth programs are being dropped unless some organization comes with a grant to cover the $17,000 costs. Ms. Jensen said the $213,000 cost is still too much. Mr. Mielke said the only way to cut costs more is to cut back the hours more and reduce staff. Ms. Newville said the membership fee is the highest in the area at $24 a year; some users pay $2 a month as they cannot pay the full fee at once. Mr. Strachota says the facilities are working together on rentals; he feels the closing three days may help the Center get weekend show rentals. Ms. Newville said the Center's location really hurts their rental possibilities. Ms. Johnson asked why the city manager cost number and Ms. Newville's differed; Ms. Yager said the manager's took revenues into account, which lowered the cost figure. General consensus was the new plan is going in the right direction but no details should be released until a final budget is adopted. October 14, 2003 Page 2 Public Works Mr. Mielke said Council requested new organizational plans in August. Mr. Stadler went over two new proposals in detail, showing the pros and cons for each. He prefers the first plan; Mr. Mielke likes the second plan better as the Operations Manager would do more paperwork and the 3 field supervisors would be on the job sites more. Fewer people reporting to Mr. Stadler would give him more time to work on high priority items. Mr. Mielke stressed that supervisory employees cannot be in the same bargaining unit as non - supervisory employees. He noted the original plan in August resulted in savings of $200,000. Mr. Mielke said reserves could be used to cover the transition period costs, which would be about $11,000 per employee. Mayor Maxwell said he felt there were still too many supervisors. Mr. Stadler said he feels he cannot cut more supervisors and have a well -run department. General discussion showed Council members felt they needed more definition on what the supervisors would do and how much time they would be out "on the job." Mr. Brausen said he did not see why job titles were so important. Mr. Stadler said lowering the wages to a Range 7 would, he felt, cause "real problems" on top of all the _other changes that are going on. Answering Ms. Jensen he said fewer supervisors would be "very un- standard," that these plans work best for public works departments. Mr. Brausen said his concern was to get more manpower on the street and saving money. Ms. Jensen said she didn't like adding an operations manager, but liked the money that the plan saved. Mr. Stadler asked if the Council was telling him to cut even more money from his budget. Consensus was that his cuts had been successful. Concern was the "chief to indian ratio" and manpower on the streets. Mayor Maxwell asked that other cities be contacted to see how they are handling their budget cuts in public works departments. Council Mr. Mielke summarized the cuts already agreed on. Administration Mr. Mielke said Mr. Stahmer is basically taking over Mr. Hartshorn's job. Communications salary has been moved to the Cable Fund. Finance Ms. Yager said she is in the process of getting payments moved to the Internet to save banking charges. She will check charges at other banks. Legal Services Mr. Mielke said increases in Court fines and having the attorney at Planning & Zoning only when needed will help. He has discussed with Attorney Steiner the idea of having most calls referred by staff before spending hours on resident questions. Issues to Resolve Mr. Mielke felt the following issues still need to be resolved: Public Works: Reorganization; yard waste program Police: lead dispatch position Fire: fire marshal to 30 hours; commercial fire inspections, fire alarm permits; long -range planning Recreation: warming house plan General: health /dental benefits, cafeteria plan; furloughs; revenue issues - taxes, franchise fees, use of reserves; administrative citations (rather than criminal tickets); cable fund (communications, HCA, cable casting from council chambers) Activity Center: finalize changes Skate Park: no longer an enterprise fund, should it be a regular (unattended) park? Mayor Maxwell added ticket tax ( "building facility charge ") for HCA. Mr. Brausen asked • October 14, 2003 Page 3 about furlough savings; Ms. Yager said it would be $17,000 per day, about half of that would be general fund savings. Mr. Brausen suggested setting an extra meeting. Consensus was Mondays or Thursdays would work. Other Mr. Brausen said the drain at Mainstreet and 5 was backed up Saturday. His old address is still being given on some city literature. Mr. Mielke reminded members of the Cornerstone grand opening October 29 and said a legal update on the Ugorets lawsuit would be given at 7:00 before the Council meeting. Mayor Maxwell said he received a complaint that someone in inspections had not provided good customer service to someone from Hobby Acres, although the complainant added Elizabeth had taken over and been great. Ms. Jensen moved adjournment. Ms. Johnson seconded. Meeting adjourned at 10:05 p.m. Kasey Kester, Secretary ATTEST: Eugene J. Maxwell, Mayor COUNCIL MEMBERS: • • October 21, 2003 Page 1 Mayor Maxwell called the meeting to order at 9:25 pm at the conclusion of the regular City Council meeting at City Hall. Council members present were Mayor Maxwell and Council members Brausen, Johnson, Jensen, and Rowan. City personnel present were City Manager Steve Mielke. Mayor Maxwell asked each Council member if they had any items for discussion. On hearing none, a motion was made by Council member Rowan, seconded by Council member Jensen to adjourn the meeting. The motion passed unanimously. The meeting was adjourned at 9:27 pm. Steve Mielke, Secretary ATTEST: Eugene J. Maxwell, Mayor MINUTES OF THE CITY COUNCIL WORK SESSION AT CONCLUSION OF THE REGULAR CITY COUNCIL MEETING October 21, 2003 CITY COUNCIL October 28, 2003 Page 1 UNAPPROVED MINUTES CITY COUNCIL WORK SESSION — October 28, 2003 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:30 p.m. on October 28, 2003, at the City Hall. Council members Brausen, Jensen, Johnson and Rowan were present. City personnel present were: City Manager Steve Mielke; Facilities Manager Jay Strachota; Depot Manager Kathleen Tabor; Pavilion Manager Don Olson; and Finance Director Lori Yager. 2004 Budget Review Depot Mr. Strachota felt progress had been made this year financially largely due to the Juvenile Justice grant, the School District lease and the cover charge for events. Ms. Taber has done much counter work herself to save costs. The new team coordinator is doing a good job with the board. Next year's goals include increasing concession revenue, continuing the school business program, developing the board, and getting grants. Ms. Taber thinks Excelsior Blvd. construction hurt revenues. Starting next month hours will be shortened. She feels the government grant will be renewed; she should hear November 7. It was a showpiece site for federal government inspection this year, and McKnight is having the Depot Board come talk to them this year. They are working to cover the cost of the police presence on Friday nights. She feels they won't use as much levy for lease from the school this year so more money will be available next year. The grant writer works on commission, which is very unusual and helps expenses. Ms. Yager said the Depot is doing much better than was thought in 2002. Ms. Jensen said the dollar figures don't show how much the programs are accomplishing. Answering questions, Ms. Taber said she would be meeting with Three Rivers on funding soon. Holiday hours did not work 2 years ago; this year she tried short hours a couple of holidays and will try again the coming year. Skate Park Mr. Mielke said the skate park made money only the first year. It no longer makes sense to have it as an enterprise fund and should go into the general fund or a special fund if Council wants to keep it open. Ms. Taber said the volunteer program to save costs cut labor 40% and the grant writer is willing to try for grants. She is working with Kathy Magdal to see if it helps cut street accidents, etc. If made into a Tier 1 park, it could be free but supervision would still be needed. Mr. Strachota said it is an outstanding park. He tried to contact True Ride and feels they would say not to cut it back. The Minnesota League puts an extra insurance charge on for Tier 2; he will see if other cities can band together to get that removed as injuries have not materialized. He plans to talk to the Jaycees about support. Answering Council questions, Ms. Taber said they tried partnering with CalSurf, and not enough signed up to put on a class. Ms. Yager said the annual subsidy is $17- 20,000. It could be put in the general fund with park and recreation, then if grants don't materialize to cover costs could choose to not open it. Mr. Strachota said Burnsville is going to an unattended Tier 1 to keep theirs open but the location here would make no supervision a poor choice. Sponsors are difficult to get due to low attendance; perhaps next year it could be free to see if attendance picks up to make that possible. Mr. Mielke said park dedication funds are not a source as they can be used only for capital uses, not operations. Ms. Jensen wondered if Community Ed. might help as it would get skaters off school property. October 28, 2003 Page 2 General Consensus was to put it in the general fund for the present with the idea that if grants do not materialize to cover the costs the Council can then decide if it should open. Mayor Maxwell asked Council get a list of possible grants /donations to go with the budget. Hopkins Center for the Arts Mr. Strachota said 2003 has seen steady progress. Rentals were up 23 %. The rental coordinator volunteered to cut back to 4 days. HCA, Inc. has partnered with Xcel and Cornerstone. The city web site is a good showcase for it now. There is a possibility of a Stages /school district partnership, using HCA as performance space, not to house the program itself. He quoted regular rates to them. Regular staff has adapted their hours to cut part-time staff costs. Mr. Rowan asked about salaries going up when one person was cut back; Ms. Yager checked and found that the numbers reflected the 2003 budget adjustments.. Ms. Johnson asked about an HCA, Inc. update; Mr. Strachota said it should be out soon. There was general discussion of a building facility charge per ticket. Mayor Maxwell.said a 50C average per ticket would solve a lot of the city's financial difficulty with HCA. Mr. Mielke noted the city pays all of the HCA Inc. programming staff costs, when originally they were only to pay the facility manager and maintenance. How to handle free admissions, school groups etc. is an issue. Ms. Johnson suggested a flat fee for a free event. Mr. Brausen suggested the charge -back with HCA, Inc. could be replaced by a $2 /ticket fee. Mr. Strachota said the Lions kiosk is in the gallery. Ms. Jensen complimented Ellen on the banners she made. Ms. Johnson suggested the Council go and thank the Lions as they meet on Tuesdays. General Consensus. Ms. Jensen asked that the complete lease be given to Council for study next time. The Council favors a building facility charge on tickets. Users need to be told there will be such a charge, they are to be consulted as how to implement it. Council should discuss this again before going to tenants. Pavilion Mr. Strachota complimented the staff on how they coped during construction. They will have 5,000 sq. ft. new space to maintain. Mr. Olson said turf rent was higher than anticipated. Soccer will be using it more. Rentals bring more income than if they ran the programs themselves. Mezzanine rental will be a major focus next year. Ms. Yager said her concern is that replacement costs for big -money items like the roof and ice system have no funds set aside. Ms. Jensen asked if a ticket surcharge would work; Mr. Olson said no as they rent, not sell tickets, and raising rent would be counterproductive. He added this summer the workmen said the roof was okay. A small leak in the Freon system for ice was fixed, it could last another 10 years. He noted the Pavilion was able to pay for its resurfacer. Mr. Mielke said that there are 2 philosophies about paying for long -term maintenance items. One is to sink money into a fund so the money is there when needed, the other is to wait and charge future users for those costs. Past Councils felt if something happened, then they would look at it. Mayor Maxwell suggested any income over a certain figure could be set aside; a facility replacement fund would be a good idea, even if it started with small amounts. Ms. Yager said the CIP fund started that way. Mr. Olson said the school starts with a temporary occupancy permit November 6. The elevator shaft floor was poured today. Mr. Mielke said Don is still talking to groups on acoustics. The school is interested in adding locker space. Last Thursday the school board approved the mezzanine lease; they like the idea as it saves the school district money. Cable Fund Mr. Mielke said more is being spent than taken into the fund so the Council needs to make October 28, 2003 Page 3 decisions or in a couple years there will be no fund balance left to support what is in there. Now $87,000 is transferred out for HCA; special projects, $35,500; communications /liaison $36,000; newsletters, $20,700, Web and Razzle $52,300. Questions to answer are: Should the Art Center be funded from this source? Should communications stay here, go to the general fund, or be eliminated? How important is the web site? Ms. Yager said there is enough to keep going for one year, the Council does have some time to work a final solution out. Mr. Mielke noted choosing only one cut will make headway, but not solve the problem. General discussion followed: Mayor Maxwell felt backing off the web site would cost more in the end. Ms. Jensen thought if the ticket charge works, HCA could be backed out next year; Mr. Mielke added perhaps HCA, Inc. could also take up more staffing. Ms. Jensen added they are to be on a 5 -year program to be self - supporting; Mr. Brausen said they are working toward that. Ms. Jensen felt communications could be done without. Ms. Johnson suggested stuffing utility bills with a one -page highlights instead of having a newsletter, apartment managers could post it in their buildings to cover apartment dwellers. Answering Mayor Maxwell, Mr. Mielke said staff would have to route their own web content to the web staff member.. Ms. Johnson noted nothing about elections was put out by the city; Mr. Mielke says he is now asking for an outline of topics. Ms. Johnson asked that be shared with Council. Mr. Rowan said earlier this year he was told the Council chambers would require no more "big money." Ms. Jensen noted lots of people watch the telecast. General consensus was that the facility ticket charge would help. The newsletter should be eliminated and a utility bill sniffer started. The Communications Coordinator position would be eliminated, and the part-time position for the web site would be maintained. Budget and Tax Levy Summary; Budget issues Mr. Mielke went over the budget and tax levy summary with the Council. He noted the 2003 budget will result in $150,000 "excess funds." Mr. Mielke noted that the franchise fee ordinance is on the agenda for November's second meeting. He said "big picture issues" include: furloughs ; using reserves; lowering the tax levy (if so, use reserves, the $150,000 excess or furlough savings ?); franchise fees (what level ?); and expenses (should some go up or down ?) Ms. Jensen asked if reserves are left intact could it be a future problem with the state. Ms. Yager said reserves are at the state - recommended levels. Mr. Mielke said enterprise funds seem to be the next target, such as the refuse fund. He feels the state will try to force consolidation with services, such as dispatch. To the degree the Council can designate funds, they should. Mr. Rowan said he felt any extra money should be used to start a facility replacement fund as discussed with the Pavilion programming. Ms. Jensen asked what the $150,000 surplus would mean if used to lower the levy. Ms. Yager said it would go down 2% and save an average homeowner $8 /month. She added that the state could freeze the levy at the present rate into the coming year, which would have a real impact then. Mayor Maxwell surveyed members about the issues. Mr. Mielke expressed concern that the furlough discussion exempts the police and dispatch and wants to explore ways to include them, so all employees are treated equally. Mayor Maxwell suggested checking with the County to see if the sheriff's staff could cover more if police are furloughed. General feeling was not to use reserves other than the $150,000 left this year. Ms. Jensen said she felt strongly any unallocated funds should go into a designated fund. All but Mayor Maxwell are ready to move on a franchise fee. Council members agreed to discuss these issues by meeting at 6:00 before the next Council meeting, and staying late if necessary. If needed, they will meet again Thursday (November 6) evening. Ms. Jensen asked they get an updated list of budget issues. October 28, 2003 Page 4 Other Mr. Rowan asked when the fence along Excelsior Boulevard would be up. Mr. Mielke said it should go up this week. Mayor Maxwell asked what the conditions will be on Excelsior Blvd. this winter. Mr. Mielke said the intersection on Monroe should be completed, as well as the Blake intersection. Part of the roadway will stay only two lanes through winter. Ms. Johnson asked why patrol cars are sitting on Highway 169. She asked when 2 °a St. NE would not be torn up. She found direct deposit couldn't be mandated. She talked to a city in Illinois and found a vehicle fee sounds like "a nightmare." Mr. Mielke commented it might not be legal here. Mr. Mielke said he has received a call from Brad Johnson asking about the intent of the gambling policy. A short discussion followed and it was agreed that the policy needs to be revisited.. Mr. Mielke said the 10% gambling fund issue is coming up, it could be done then. At this point Mr. Rowan excused himself. Mr. Mielke explained the issues involved about right of way and the Presidential Neighborhood alleys. Mr. Stadler's intention had been the green spaces would be vacated with utility easements for the sewer. Some area residents don't want it vacated, but if it is not, who will do the mowing? Consensus was to let Mr. Stadler work on it the next couple of months. The RV owner should move it off the right -of -way until the issue is decided. Vacating will be addressed later. Kasey Kester, Secretary ATTEST: Mr. Brausen moved adjournment. Ms. Jensen seconded. Meeting adjourned at 10:50 p.m. Eugene J. Maxwell, Mayor COUNCIL MEMBERS: • •