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Home My WebLink About2013-11-06 PACKET 03.A.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 11 /6/2013 � / PREPARED BY: City Clerk Caron Stransky ORIGINATING DEPARTMENT DEPARTMENT HEAD ***************************************�*�****** COUNCIL ACTION REQUEST: City Council Meeting Minutes Approval: August 7, 2013 Special Meeting. STAFF RECOMMENDATION Approve draft minutes. SUPPORTING DOCUMENTS: ❑ MEMO/LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Draft Minutes. ADMINISTRATORS COMMENTS ity Administrator � �- Date ************************************�*********** � ��i� ��t �� Q`��p � �r�d� �� COTTAGE GROVE CITY COUNCIL City of Cottage Grove, Minnesota Special Meeting August 7, 2013 CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a special meeting on August 7, 2013 at the Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove. Mayor Bailey called the meeting to order at 6:00 p.m. ROLL CALL The following were present: Mayor Bailey, Council Member Jen Peterson, Council Member Derrick Lehrke, Council Member Justin Olsen, and Counci) Member Dave Thiede. The following were absent: None. Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Robin Roland, Finance Director; Brenda Malinowski, Assistant Finance Director; Zac Dockter, Parks and Recreation Director; Craig Woolery, Public Safety Director, and Danette Parr, Economic Development Director. Mayor Bailey presided over the meeting. 2014 BUDGET Finance Director Roland pointed out items ��On the Board" from the ]uly 31, 2013 meeting: • Request for Engineering Intern • Suggestion that we should consider hiring the Street PSW earlier with corresponding reduction in wage expense for Public Works Intern • Review opportunities to reduce EAB Program Expense • 2014 Lift for Ice; 2015 Lift for Public Works - Discuss Sharing • Needs analysis for storm water rate increases; need to reduce expenditures in the interim • Every other year rental licenses or inspections • Analysis of sealcoat fund deficit • Council Member Thiede request for more analysis of equipment purchase versus equipment rental or contracting Pavement Management Bonds Finance Director Roland distributed a copy of a pre-sale report for the Pavement Management $7,600,000 General Obligation Improvement Bonds, Series 2013A. There was Council consensus to authorize the Finance Director Roland place this on the August 14 agenda for consideration. CIIY OF COTfAGE GROVE • 12800 Ravine Parkway • Cottage Grove, Minnesota 55016 www.cottage-grove.org • 651-458-2800 • Fax 651-458-2897 • Equal Opportunity Employer Cottage Grove City Council ( 2 August 7, 2013 Regular Meeting There was discussion on the pavement management general obligation bonds issued over the years and the Council consensus was to discuss this further later in the meeting. Equipment Replacement Fund Finance Director Roland then reviewed the Equipment Replacement Fund noting that there are items proposed for 2014 and 2015 in the Parks Maintenance Division. They include large tandem axle trailers ($12,000), a four-wheel drive tractor with a snowplow and blower ($150,000), and an 11-foot rotary mower ($65,000). PARKS & RECREATION Forestrv Parks & Recreation Director pockter reviewed the Forestry budget noting that the personal services budget funds the City Forester position plus one intern and one seasonal worker. The contractual services budget includes $162,000 each year for Emerald Ash Borer (EAB) project expenses. The Council then discussed the EAB program project expenses which include the treating of trees plus the removal of trees and stumps. Council consensus was to add this topic to the list of items "On the Board". Park Maintenance Parks & Recreation Director pockter noted that there were no significant changes in Parks Maintenance. 2014 commodities include $10,000 to mulch 80 Street, 85 Street, and the roundabout planter beds. The 2014 capital outlay budget includes water filtration at Lamar Park and 2015 capital outlay includes the Hamlet Park Skateboard Park ($30,000), demolition of the pool park property markers ($20,000), Arbor Meadows irrigation ($20,000), and demolition of the Granada Park tennis courts ($45,000). The Council briefly discussed the increase in personal services and Parks & Recreation Director pockter stated that the increase was for step increases, cost of living increases, and health insurance. Recreation Programming Parks and Recreation Director pockter stated that there are no operational changes and noted that the budget does not include a$5,600 contribution to the Cottage Grove Athletic Association (CGAA) for their general liability insurance. The Council discussed whether the City should continue to (1) pay the insurance; (2) pay a portion of the insurance; or (3) not pay the insurance at all. The Council also discussed whether the City should approach the CGAA about requiring the East Ridge Athletic Association to share their insurance costs. City Administrator Schroeder stated that an equity approach would be to pay both or none. There seemed to be consensus to pay the insurance premium to the CGAA for 2013 but to add the topic to the list of items "On the Board" for 2014. Cottage Grove City Council I� August 7, 2013 Regular Meeting Park Development Parks and Recreation Director pockter stated that in 2013, Hearthside Park, Lamar Park, and Hamlet Park buildings were remodeled. We are taking a year off in 2014 to replenish the fund. In 2015, playground equipment will be replaced at Old Cottage Grove and Pine Glen Parks. The designated fund balance as of December 31, 2012 for Park Shelter/Equipment Replacement was $217,091. Ice Arena The Ice Arena's capital outlay budget for 2014 includes $18,000 of replacement of a man lift, air-conditioning, and a water softener. $102,000 is set aside for future replacement of a chiller. Capital outlay for 2015 includes $30,000 for a furnace replacement and $90,000 for the chiller. There was discussion on whether the City should re-negotiate the contracts with the School Districts, whether there was a revenue stream for lacrosse, indoor soccer, or other types of events, operating income, bond debt, and how we compare to other Arena's. The Council took a five-minute break. GOLF COURSE AND EDA Golf Course The Counci) reviewed the Golf Course Budget. Finance Director Roland noted that the Golf Course changed from an Enterprise Fund in 2012 to a Special Revenue Fund in 2013 and the necessity for the Golf Course to receive a subsidy for operations and/or debt reduction. The budget scenario assumes forgiveness of a $900,000 loan from the EDA and restructuring the $1.2 million loan from the EDA Trust Fund to 10 years at 0% interest beginning in 2014. Golf Pro Anderson highlighted the capital outlay needs for 2014 thru 2018. In 2014, $36,000 is budgeted for a new roof for the clubhouse and pro shop; $5,000 for a sod cutter; $72,000 for carpet, furniture, and blinds; $6,500 for chairs; and $20,000 for storage. In 2015, $60,000 is budgeted for the purchase of two greens mowers; $15,000 for mill/overlay work; $59,000 to sealcoat, pave, and replace paths; $10,000 for trees; and $4,000 for a fertilizer spreader. Golf Pro Anderson then reviewed the purchases budgeted in capital outlay for 2015 thru 2018. Mayor Bailey stated that the Council should be invited to take a tour of the maintenance facility at the Golf Course. There was discussion on the installation of an irrigation system, the percentage of green fees for residents versus non-residents, growth in Golf tournaments, banquets, and incentive programs for employees to bring in tournaments or banquets; whether banquet business is better or worse; the possibility of reconfiguring the banquet venue so that we can get a larger dance floor to accommodate more people, and whether it would make sense putting in a larger kitchen. Cottage Grove City Council ( 4 August 7, 2013 Regular Meeting Economic Development Finance Director Roland reviewed the EDA and BEC revenues and expenditures report and Economic Development Director Parr highlighted the various companies who are locating in the BEC facility and the improvements needed. Cash Balances City Administrator Schroeder reviewed a power point presentation showing the revenues, expenditures, cash balance target, and year-end cash balance covering the years 2008 through proposed 2015. He commented that what we need to think about is how much cash balance we want to have in each cost center. Following discussion on the fund balances and there was Council consensus to meet again on August 14, 2013 to continue discussion on the budget. There was discussion about melding the closed debt and completed construction funds because they are so similar and to place the revenue collected from utility companies for cell phone tower revenue. It was suggested that it be placed in the utility fund, the BEC lattice tower fund, or in a future capital projects fund for park improvements. Mayor Bailey noted that there are cities, such as Eagan and West St. Paul who collect revenues from billboard operators and that this may be something we should consider for the billboard located along T.H. 61. � � t�1�17►1u1�►�1 MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER PETERSON, TO ADJOURN THE AUGUST 7, 2013 SPECIAL MEETING AT 11:21 P.M. MOTION CARRIED. 4-1 WITH COUNCIL MEMBER LEHRKE VOTING NAY. Prepared by, Caron M. Stransky City Clerk