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HomeMy WebLinkAbout08-25-2009 Council Work Session Packet Ll�rt.J Council Work Session 6:15 p.m., Tuesday, August 25, 2009 Orono City Council Chambers AGENDA 1. Striping Watertown Road 2. Police Service Contracts—Ron (30 minutes) 3. Budget—Ron (30 minutes) a) Current Information b) Decision Package 4. Police Labor Negotiations—Ron (10 minutes) Previous Work Session Topics August 11, 2009—Minutes Attached o Transition Process o Trail Crossings Update o Discussion Regarding Consideration to Become LGU for Wetland Conservation Act and other MCWD Jurisdictional Areas o Casco Point Reconstruction Project Update - Schedule for Mill and Overlay - Insurance Claims Discussion - Other o Narrows Dock Lots Update—Position Statement o Budget Julv 28, 2009 o Council discussion with Bill Joynes, Consultant : Orono City Council Committee of the Whole August li,2009, Following Council Meeting Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan and 1im Murphy; Police Chief Correy Farniok, Finance Director Ron Olson,Assistant City Administrator for Long-Term Strategy Mike Gaffron, City Clerk Lin Vee,Zoning and Planning Coordinator Melanie Curtis, Building Official Lyle Oman, Public Works Supervisors Don DeBaere and Scott Oberaigner and City Engineer Tom Kellogg 1. Trail Crossings Update • Hennepin County is in the process of removing crosswalk stripes in next 3 weeks. • Correy spoke with Boe Carlson and Three Rivers Park District is still reviewing Orono Orchard Road crossing. • Three Rivers Park District has been doing educational stops with warnings given on the Dakota Rail Trail. Warnings have been given regarding speed and rudeness of bikers. The Park District will transition to enforcement/citations rather than warnings per request from Minnetonka Beach and Mound. • Orono would need to adopt the Three Rivers Park District park rules for the City to also enforce. • All the stripings in crosswalks for the Dakota Rail Trail will be removed in Orono. This is consistent at crosswalks from Wayzata through Mound. • Miscellaneous trail information o Staff is reviewing the County Rd 6/Old Crystal Bay Rd crossing. The striping may also be removed at this intersection as it can be confusing to vehicles as to whether the vehicle is stopped to make a turn or to allow pedestrian crossings. o Mike has been working on scheduling a meeting to present plans for the County Rd 19 trail with the cities of Shorewood,Tonka Bay and Orono,Three Rivers Park District and Hennepin County. The meeting could include up to 40 people. Since there may be some scheduling issues at the Freshwater Center, Council suggested holding an early morning meeting in the Orono Council Chambers. o Correy and Don attended a Hennepin County meeting regarding an electronic sign that will be installed in the next few weeks at the transition point for a speed change near Orono Orchard Road and County Rd 15. They requested that the sign be moved back about 100 feet from the proposed location. The sign is part of a grant. If additional funding is available, similar signage could be placed on County Road 6 when highway work is done in Maple Plain. 2. Discussion Regarding Consideration to Become LGU for Wetland Conservation Act and Other MCWD Jurisdictional Areas � In 2002, Council approved a stormwater management plan. According to the MCWD, once an erosion control ordinance is in place,the city is eligible to take over 4 different permitting functions as described in the memo provided by Bob Barth, Bonestroo. • Pros for the City assuming permitting functions: o Better control over Orono projects; examples would be the Stonebay wetlands and frustration with Casco Point project. o Permitting process would take less time and be less expensive. o Decisions would be more timely as the Watershed staff sends most issues to the Board for final approvaL Page 1 of 4 : • Cons for the City assuming permitting functions: o Additional workload for current staff. Staff would administer some of the program and rely on others with expertise. o Staff would need some training. Bonestroo staff is an additional resource. • Council questioned if concerns have been communicated to the MCWD. Staff has attempted to discuss issues with the MCDW. • Council directed staff to prepare a list of issues to provide to the MCWD with an opportunity for the MCWD to discuss and respond. McMillan and Murphy would be willing to meet with Eric of the MCWD and Orono staff. The MCWD receives tax money, and it would be preferable that they are involved in local watershed issues and the permitting process. 3. Casco Point Reconstruction Project Update • Casco Point Proiect Schedule. Plans are to start the toughtest piece on Casco Point next week. Because CenterPoint Energy got in late to do their work, it affected the contractor's work schedule. The City probably owes the contractor some additional time. Provided the weather holds,the substantial completion date is August 28. The goal is to have the project done before school starts. The road should be rocked and ready to drive on by September 8; if not, provisions will need to be made to be able to get buses in and out. Weekly updates are posted on Mondays on the City website with a review of the previous week's work and plan for work of current week. Staff has considered having the contractor bring in an additional crew, but this would create more inconveniences for the neighborhood and may generate more complaints. The neighborhood may see two crews to maintain the completion schedule as be acceptable and worth the inconvenience. Further discussion may be needed. It is important to keep people informed. The bag of information that is distributed from door-to-door has been very helpful. Add a reminder to go to the website for additional information. The last portion of soil remediation will be completed next week. Council noted that residents have received knowledgeable, polite and efficient responses to their questions. • Schedule for Mill and Overlav. The project includes mill and overlay this year for a portion of the road from Casco Avenue to Casco Circle. The mill and overly work is non-intrusive and would take 2—3 days. Staff has discussed delaying this work until next year to allow one freeze/thaw cycle. The price for bituminous was included with this year's bid. Waiting until next year adds the risk for prices to be higher and the neighborhood may object to another disruption. Staff noted that waiting until next year will provide a better job overall, and that the contractor would come back next year to fix settlements and do the final course. Council directed staff to delay the mill and overlay for this project until next year. • Insurance Claims Discussion. In the past, staff has been directed to be proactive and get a cleaning crew out right away when a home has damage from a sewer backup. In the recent insurance claims,the City's insurance adjuster recommended the property owner contact their own insurance company first. The League's insurance will not pay if the damage is not the City's fault. Staff noted that the City may need to be more proactive with sewer issues. It is important to be consistent in handling these situations. Fundamentally it is not the City's responsibility to call a cleaning crew unless we know it's the City's fault. The homeowner's insurance company may use specific companies and there is some liability to the City when entering a home without proper releases. It was determined that the policy will be to have the homeowner call their own insurance company first unless City staff believes the City has any liability in the damage. • Myrtlewood Utilitv Proiect Update. All pipes are in the ground and are being tested. Site restoration is in process. The contractor is ahead of schedule. Fire hydrants are installed in the Myrtlewood neighborhood and at the Comforts of Home property. An additional valve that was not in the original plans has been added. Staff commented that the contractor's crew was very good at cleaning up the site as work progressed. Page 2 of 4 l • Abakahdra Subdivision. A portion of Fox Street will be closed for about a week beginning Wednesday to lower the gas line and road. As part of the subdivision approval, the road needs to be lower for people leaving the subdivision to make a safe turn. 4. Narrows Dock Lots Update • The City Attorney provided a Position Statement for Council review. Copies of the Conditional Use Permits granted to the 4 dock lots were included.The CUPs were very controversial in 1985 when approved. • All 4 properties are being utilized consistent with provisions of the CUPs. • Per the City Attorney,there is no simple method to remove the CUPs. • The same issues were reviewed 10 years ago and the City's position hasn't changed. • There are approximately 1000 lakeshore properties in Orono. Very few similar situations exist and no more lots of this type are being created. • While it may appear the City is protecting renters, owners also have rights, including the right to rent their property. • The Position Statement was accepted by Council. The Position Statement will be filed in the street files for review when there are questions about a specific property. It does not need to be distributed to neighbors. • In response to a complaint about the delivery of fuel to the dock lots,a citation will be issued for transporting fuel. To transport fuel,a specialized vehicle and fire marshal approval is required. Neither Long Lake nor Mound Fire Chiefs have approved such a request. 5. Transition process • The same process will be followed as was used previously. The person who signs checks is the point person. Discuss problems and issues among staff and then take to Ron to bring to Council. • Further discussion will take place regarding the need for an interim city administrator. • Plan: o Management Team will discuss positive aspects of previous administrators and what works for staff; bring back summary of discussion to work session. o Bremer will contact Mike (visioning process). o White will provide copies of recent administrator's job description and staff comments from 2007 discussions with AB Reynolds. o Franchot will bring back search process ideas. 6. Budget • Expenditures o Budget is based on 1�0 or less increase on expenditures. o City is anticipating a 16% insurance increase. o Each 1% increase or decrease in salary equates to$30,000. o Each $10 increase in insurance contribution equates to $5500. o Previous Administrator wanted to be sure employees didn't go backwards in salary because of increased insurance costs. o $50 has been the standard insurance increase over last few years. • Revenues o Construction—related revenues are down considerably. o Police service from contract cities would go down on current negotiations. o Projected revenues compared to a rather small expenditure increase still generate a shortfall of$220,000. • Most of expenditures are in salaries. Page 3 of 4 w • 2009 expenditures are as projected except for engineering expenses. Per Tom Kellogg, engineering rates will not increase for 2010. • 2009 revenues are down from expectations. • Resenres—53�0 last year;target is 45%. State auditor's office doesn't like it when reserves are too high. The City could use a small portion for expenses but shouldn't use a large amount in one year. • Budget must be balanced. The City could use a portion of the fund balance to offset a negative budget, but this will impact funding of capital projects in the future. • Discussed ways to increase revenue. • Important to understand discretionary numbers and be tough-minded about revenue projections. Tough budget decisions will need to be made. 6. Miscellaneous • At the last Council meeting, a resident requested striping on Watertown Road with either fog lines along the sides or a centerline. Obstacles include the cost, length to be striped, designation of passing zones and additional signage. Speeds tend to increase with striping. Tom Kellogg and Don DeBaere will put together a letter outlining the discussion and decision not to stripe Watertown Road and bring back to the next work session. • Correy attended the Spring Park work session on Monday evening to discuss the area concept for police services. Former Mayor Rockvam and a Laker/Pioneer reporter were also at the work session. Spring Park Council Member Scanlon noted it was Orono's idea for police areas. Correy clarified that Police Commission meetings had generated the idea and discussion of police service areas. Negotiations with both Spring Park and Long Lake are nearing completion. Working through the serious incidents over last few months has improved the working relationship between Orono and Long Lake. • Karen Feyo letter outlining the Council's direction from the Council meeting was distributed. • Storm damage reimbursement was discussed. If costs meet$25,000,the City could declare an emergency and apply for disaster funds. Reimbursement would be up to 50%. The City has 30 days to declare an emergency and 90 days to apply for funding. • Public Works has a policy against clearing private driveways of storm damage unless there are extenuating circumstances such as elderly occupants. Page 4 of 4 • 4 City of Orono Expenditure Summary with Comparison to Budget For The 7 Months Ending July 31, 2009 (58%) Yearto Department Date Budget Balance Percent Mayor&Council 46,596.73 90,930.00 44,333.27 51.24% Administration 223,595.00 330,850.00 107,255.00 67.58% Elections 666.00 1,530.00 864.00 43.53% Finance Department 162,806.00 288,470.00 125,664.00 56.44% Assessing 65,428.00 134,000.00 68,572.00 48.83% Law/LegalSerices 60,425.00 101,000.00 40,575.00 59.83� Human Seevices 24,700.00 21,200.00 -3,500.00 116.51% Central Services 135,669.00 271,620.00 135,951.00 49.95% Police Department 1,414,160.00 2,628,880.00 1,214,720.00 53.79% Fire Protection 283,703.00 392,650.00 108,947.00 72.25% Building&Zoning 329,247.06 632,060.00 302,812.94 52.09�Yo Public Works 289,379.00 572,910.00 283,531.00 50.51% Engineering 45,457.00 58,300.00 12,843.00 77.97�0 Recycling 57,759.00 102,000.00 44,241.00 56.63% Special Services 52,716.00 147,230.00 94,514.00 35.81% Special Projects 137,960.00 342,500.00 204,540.00 40.28% Parks 42,972.00 47,720.00 4,748.00 90.05% 3,373,238.79 6,163,850.00 2,790,611.21 54.73% N r � r . City of Orono 2010 General Fund Budget Departmental Budgets 2010 2010 2010 DOLLAR % 2008 2009 DEPT MGR ADOPTED INCREASE INCREASE ACTUAL BUDGET REQUEST RECOMMD BUDGET �DECREASE) (DECREASE) CITY COUNCIL 87,420 90,930 91,840 0 0 910 1.00% ADMINISTRATION 370,259 330,850 336,851 0 0 6,001 1.81% ELECTIONS 15,481 1,530 17,770 0 0 16,240 1061.44% ASSESSING 127,709 134,000 137,700 0 0 3,700 2.76% FINANCE 240,520 288,470 293,372 0 0 4,902 1.70% LEGAL 104,280 101,000 97,000 0 0 (4,000) -3.96% CENTRAL SERVICES 317,553 271,620 270,150 0 0 (1,470) -0.54% HUMAN SERVICES 20,540 21,200 19,570 0 0 (1,630) -7.69% POLICE 2,504,539 2,628,880 2,664,343 0 0 35,463 1.35% FIRE 361,508 392,650 378,000 0 0 (14,650) -3.73% PLANNING &ZONING 609,823 632,060 620,112 0 0 (11,948) -1.89% ENGINEERING 89,553 58,300 85,000 0 0 26,700 45.80% STREET MAINTENANCE 539,371 572,910 560,644 0 0 (12,266) -2.14% PARKS 54,730 47,720 59,790 0 0 12,070 25.29% RECYCLING 100,869 102,000 106,500 0 0 4,500 4.41% SPECIAL SERVICES 199,297 147,230 144,700 0 0 (2,530) -1.72% SPECIAL PROJECTS &CONTINGENCIES 95,409 82,500 40,000 0 0 (42,500) -51.52% TRANSFERS TO OTHER FUNDS 240,000 260,000 260,000 0 0 0 0.00% TOTAL GENERAL FUND EXPENDITURES 6,078,863 6,163,850 6,183,341 0 0 19,491 0.32°/a [V r ''�. N 2010 General Fund Budget Major Expenditure Categories 2007 2008 2009 2010 2010 Increase % Dept Mgmt (Decrease) Increase % Actual Actual Budqet Request Recommend 2009 to 2010 (Decrease) of Budqet Personal Services 3,304,052 3,583,904 3,711,750 3,799,641 0 87,891 2.37% 61.45% Supplies& Maintenance 539,530 550,102 507,530 479,525 0 (28,005) -5.52% 7.76% Professional Services (including Assessing) 1,131,072 1,065,793 1,029,640 1,020,760 0 (8,880) -0.86% 16.51% Insurances 80,480 71,950 71,950 71,950 0 0 0.00% 1.16% Other Expenses 391,879 413,782 442,210 410,695 0 (31,515) -7.13% 6.64% CapitalOutlay 100,155 153,332 140,770 140,770 0 0 0.00% 2.28°/a Transfers to Other Funds 109,966 240,000 260,000 260,000 0 0 0.00% 4.20% Total 5,657,134 6,078,863 6,163,850 6,183,341 0 19,491 0.32% 100.00% N r � � City of Orono General Fund Revenues For 2009 Dollar Percentage 200'�'j YTD 200� 20�� Increase Increase Revenue Source Actual thru 6/30/ Bu� Bud�et (Decrease) (Decrease) Taxes 3,335,892 1,838,903 3,857,430 3,887,430 30,000 0.8% Business Licenses 14,513 11,898 13,750 16,000 2,250 16.4% Permits 361,860 127,349 329,750 263,800 -65,950 -20.0% Intergovernmaental Revenue 300,355 36,520 229,820 224,820 -5,000 -2.2°/o General Govt Service Charges 777,826 243,560 563,900 473,950 -89,950 -16.0% Public Safety Charges 987,880 404,072 974,800 906,800 -68,000 -7.0% Fines and Foreits 127,742 56,005 102,000 102,000 0 0.0% Investment Revenue 144,183 380 71,000 71,000 0 0 Miscellaneous Revenue 221,139 25,343 21,400 25,400 4,000 18.7°/o Total Revenues and Transfers In 6,271,390 2,744,030 6,163,850 5,971,200 -192,650 -3.1% Preliminary Expenditures 6,158,341 Projected Deficit -187,141 � r ''ti. � , 2009 Orono Operating Budget Decision Package Summary City of Orono 2010 Decision Package Summary ,,. � � Proposal Budget Affect Service Level Change AccepUDeny Additional Comments �'��-�����`i Leave PW Position Open Exp Decrease of$60,000 Lower staffing levels Reduce Police Officers Exp Decrease of$70,000 Lower staffing levels Reduce Transfer to IEO Fund Save up to $240,000 Reduce Long Term Funding ��'� ;�j Use of Certificates of Indebtedness Increase Tax Levy None Wage Freeze Save $30,000 None Additional Pay Increase Each 1% = 30,000 None ' Increase Insurance Contribution Each $10 = $5,500 None Funding of Task Force Up to $95,000 None Gillespie Center contribution Asking for 3% Increase ($600) None [V r � IL7 ���� � 2010 Orono Operatinq Budqet Decision Packaqe Proposal: Leave PW Position Open Annual (Cost)/Savings: 60,000 Service Level Change: Discussion: A full complement of 8 PW maintenance workers allows the supervisors to dispatch two full crews of 4 (or 4 two person teams) to handle multiple jobs. ���� . 2010 Orono Operatinq Budqet Decision Packaqe Proposal: Reduce Police Officers Annual (Cost)/Savings: 70,000 Service Level Change: Discussion: It is likely that at least one police officer will retire in 2010. Assuming a 4/1/09 retirement the saving would be $70,000. If the City offered an early retirement incentive, the savings may be greater. The PD would like the position to be listed as "open" as opposed to eliminating it. $��� 2010 Orono Operatinq Budqet Decision Packaqe Proposal: Reduce Transfer to Equipment Fund Annual (Cost)/Savings: Up to 240,000 Service Level Change: Funding for future capital needs will be reduced. Discussion: The estimated balance in the IEO fund at year end will be $750,000. $100,000 of the balance is set aside for fire equipment. The CIP draft recently completed by staff will not be adequately funded at the current funding levels. Decreasing the annual transfer will increase the shortage. The City could issue debt to purchase equipment. ���� 2010 Orono Operatinq Budqet Decision Packaqe Proposal: Wage Freeze Annual (Cost)/Savings: 30,000 Service Level Change: None Discussion: The preliminary budget is based on a 1% cost of living increase. Each 1% of wages represents approximately $30,000 to the General Fund. There is no guarantee that the police labor contracts can be settled with a wage freeze. ����� �� ������ 2010 Orono Operatinq Budqet Decision Packaqe Proposal: Insurance Contribution Annual (Cost)/Savings: Service Level Change: None Discussion: The preliminary budget is based on a $50 per month increase in insurance contributions. Each $10 represents $5,500 per month in expense to the General Fund. Insurance rates are increasing by 15.43% in 2010. A table indicating how the increase affects employees is attached. The City can change the plans that it currently offers to eliminate the more expensive plans in favor of the high deductibte plans. The LOGIS group is exploring that option for 2011. We could do this now. � ���� � City of Orono Health Plans by Type 2009 2010 Monthly Annual Premium Premium Increase Increase � Open "�� S 14 576.61 665.58 88.97 1,067.65 3 for Free S 1 515.72 595.30 79.58 954.91 E +C 1 1039.61 1,200.02 160.41 1,924.94 Ded w/HRA S 7 408.19 471.17 62.98 755.80 F 3 1074.02 1,239.74 165.72 1,988.66 Ded w/H SA S 3 378.85 437.31 58.46 701.48 E+S 1 807.87 932.52 124.65 1,495.85 E+C 1 763.24 881.01 117.77 1,413.22 F 5 996.69 1,150.48 153.79 1,845.47 Waive 11 Tota I 47 ����� � 2010 Orono Operatinq Budqet Decision Packaqe Proposal: Funding of Drug Task Force Officer Annual (Cost)/Savings: 95,000 Service Level Change: None Discussion: The Drug Task Force Officer is currently paid out of the General Fund. Some or all of the position could be funded by the Drug Forfeiture Fund. The fund is currently used to buy equipment used for drug enforcement activities. The fund balance at the end of 2008 was $96,000. It is possible that this position will be partially funded by a grant. The City also receives annual disbursements from the task force. These funds are currently credited to the PIR fund for the purchase of police equipment.